Energy: Strategic Clean Energy and Critical Mineral Development Zones.

Entire Section 2 amending Public Utilities Code Section 454.53 was deleted. This had required the PUC, Energy Commission, State Air Resources Board, and all other state agencies to consider the development potential of regions capable of supporting large-scale clean energy production, critical mineral supply chains, and advanced manufacturing when implementing the state's renewable electricity policy (90% by 2035, 95% by 2040, 100% by 2045).

The bill title changed from 'relating to electricity. energy.' to 'relating to energy,' reflecting the removal of all PUC-related provisions.

Section 25216.7(g)(1) removed 'energy infrastructure' from the list of program areas covered by the priority consideration requirement, now limited to 'economic development, advanced manufacturing, workforce development, or critical mineral supply chains.'

New Section 25216.7(c)(2) allows multiple counties to jointly submit a request for zone designation when a proposed zone crosses jurisdictional boundaries, provided state or federal agencies have identified each county as containing significant deposits or production potential of critical minerals used in battery, clean energy, or advanced manufacturing supply chains.

New Section 25216.7(g)(4) requires state agencies and the Governor's Office of Business and Economic Development to give priority to projects that provide for payment of prevailing wages, employment of apprentices from state-approved programs, and use of a skilled and trained workforce.

The state-mandated local program finding changed from 'yes' to 'no,' and the reimbursement provision (former Section 3) was deleted entirely, because the PUC-related provisions that triggered the mandate were removed.

Removed the specific requirement in Section 454.53(b)(6) that state agencies consider 'the energy potential and high energy capacity of the County of Imperial and Lithium Valley, including all future energy development and output in those regions.' This targeted provision was replaced by the existing general provision about considering development potential of regions statewide.

The bill title and legislative digest were changed from 'Electricity: County of Imperial and Lithium Valley. Strategic Clean Energy and Critical Mineral Development Zones' to 'Electricity: Energy: Strategic Clean Energy and Critical Mineral Development Zones,' removing the geographic specificity and adding 'Energy' as a subject category.

The zone designation name in Section 25216.7 was changed from 'Strategic Energy and Critical Mineral Development Zones' to 'Strategic Clean Energy and Critical Mineral Development Zones' (adding the word 'Clean') in subsections (a)(1), (a)(2), and (c).

The state-mandated local program determination was changed from 'yes' to 'no,' meaning the bill no longer imposes a state-mandated local program that would trigger potential state reimbursement obligations to local agencies under Article XIII B of the California Constitution.

Adds new Section 25216.7 to the Public Resources Code creating a Strategic Clean Energy and Critical Mineral Development Zone designation process, expanding the bill beyond just electricity policy to include critical minerals and industrial development planning.

Amends Section 454.53 of the Public Utilities Code to add a new requirement that state agencies consider the development potential of regions capable of supporting large-scale clean energy production, critical mineral supply chains, advanced manufacturing, and other energy-intensive industries, including designated zones under the new section.

Requires the Energy Commission, in consultation with the Governor's Office of Business and Economic Development, to identify and designate zones. Counties may submit requests; the Energy Commission must approve or deny within 180 days of a complete submission.

Requires state agencies administering programs related to energy infrastructure, economic development, advanced manufacturing, workforce development, or critical mineral supply chains to give priority consideration to projects located within designated zones that support large-scale clean energy production or energy-intensive industrial development.

Establishes criteria for zone designation: the county must be identified by state or federal agencies as containing significant critical mineral deposits, AND must meet at least two of four additional criteria including baseload renewable generation of at least 250 megawatts, geothermal resource potential exceeding 1,000 megawatts, proximity to high-voltage transmission of 230 kilovolts or greater, or an adopted regional planning effort evaluating energy production or critical mineral extraction.

Requires the Energy Commission to review designated zones at least every five years and authorizes updates based on changes in energy resources, infrastructure, or economic development planning.

Authorizes the Governor's Office of Business and Economic Development to coordinate with the Energy Commission and other state agencies to support site readiness, infrastructure development, and attracting investment within designated zones.