AB 2516: California Grid Manufacturing Initiative.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor’s office and requires GO-Biz to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law creates within GO-Biz the Energy Unit to accelerate the planning, financing, and execution of critical energy infrastructure projects, as specified.

This bill would require the Energy Unit, in coordination with other specified state entities, to establish the California Grid Manufacturing Initiative. The bill would require the Energy Unit to determine and provide appropriate forms of state assistance to address identified delays with critical electricity grid components, as defined, to incentivize new or existing in-state manufacturing of critical electricity grid components, and to provide support to joint procurement initiatives.

This bill would require the Public Utilities Commission, as soon as practicable, and in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to develop a process to identify critical electricity grid components and to assess the statewide need for critical electricity grid components for the next 10-year period. The bill would require the assessment to include identification of specific strategies to reduce delays and ratepayer costs associated with the procurement of critical electricity grid components. The bill would require the Public Utilities Commission to determine, for each critical electricity grid component, whether requiring electrical corporations to engage in the joint procurement of the critical electricity grid component would further the purposes of the bill, and if the commission makes that determination, and also determines that electrical corporations would benefit from the joint procurement, the bill would authorize the Public Utilities Commission to require electrical corporations to engage in a joint procurement to fulfill the projected purchasing needs of each participating electrical corporation for the critical electricity grid component, as provided.

This bill would require electrical corporations that are required to engaged in a joint procurement pursuant to the bill to, not more than 12 months following the imposition of the requirement, take certain actions, including engaging in a joint cooperative process for the sourcing and negotiation of joint purchase agreements for the purchase of critical electricity grid components.

This bill would authorize the Energy Unit to provide assistance to projects that establish or expand manufacturing capacity in California for critical electricity grid components, as specified. The bill would also authorize the Energy Unit to enter into production joint ventures with qualified private suppliers, as provided, and to provide bond financing and other assistance.

The bill would authorize the Public Utilities Commission to authorize the recovery of costs incurred under the initiative only to the extent it determines those costs are just and reasonable, cost-effective, and aligned with state energy policy, as provided. To the extent the joint procurement results in costs below prevailing market prices for critical electricity grid components, the bill would require the commission to ensure that the difference is credited to ratepayers, as provided.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 13, 2026In committee: Held under submission.
2. August 3, 2026In committee: Referred to APPR. suspense file.
3. June 29, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 2.) (June 29). Re-referred to Com. on APPR.
4. June 25, 2026From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. P. & E.D.
5. June 24, 2026From committee: Do pass and re-refer to Com. on B. P. & E.D. (Ayes 13. Noes 3.) (June 24). Re-referred to Com. on B. P. & E.D.
6. June 10, 2026Referred to Coms. on E., U & C. and B. P. & E.D.
7. May 27, 2026In Senate. Read first time. To Com. on RLS. for assignment.
8. May 26, 2026Read third time. Passed. Ordered to the Senate. (Ayes 60. Noes 13. Page 5329.)
9. May 18, 2026Read second time. Ordered to third reading.
10. May 14, 2026From committee: Do pass. (Ayes 12. Noes 2.) (May 14).
11. May 14, 2026Joint Rule 62(a), file notice suspended. (Page 5030.)
12. May 13, 2026In committee: Set, first hearing. Referred to APPR. suspense file.