SB 254: Energy.

Official summary

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

(1)Existing law establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor’s office and requires the office 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, as provided. Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act (bank act), establishes the California Infrastructure and Economic Development Bank (I-Bank) within GO-Biz, under the direction of an executive director and governed by, and its corporate power exercised by, a board of directors (bank board). Existing law, among other things, authorizes the bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities, as provided. Existing law prohibits the financing of economic development facilities unless the bank determines that the financing or assistance meets specified public interest criteria.

Existing law, the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (bond act), approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, authorizes the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs. Existing law makes $850,000,000 of that amount available, upon appropriation of the Legislature, for clean energy projects, as provided.

This bill would deem the financing of projects related to the clean energy projects funded by the bond act, as described above, to be in the public interest and eligible for financing by the I-Bank or by a special purpose trust established pursuant to the bank act and would, except as specified, require that any such financing be treated as financing of an economic development facility for purposes of the bank act. The bill would authorize the I-Bank to provide any form of financial assistance, including issuing bonds, as provided.

The bill would authorize the I-Bank to provide financial assistance under the California Transmission Accelerator Revolving Fund Program to any eligible participating party, either directly or to a lending or financial institution, in connection with the financing or refinancing of an accelerator project, in accordance with an agreement or agreements between the I-Bank and the participating party, either as a sole lender or in participation or syndication with other lenders. The bill would define various terms for these purposes. The bill would require that eligible projects for financing under these provisions meet specified conditions. The bill would require the I-Bank to prepare, and the bank board to approve, guidelines for the provision of financial assistance under the Accelerator Revolving Fund Program, and would exempt the accelerator financing plan and guidelines to administer the program from the rulemaking provisions of the Administrative Procedure Act.

Existing law creates the California Infrastructure and Economic Development Bank Fund (bank fund) in the State Treasury for purposes of implementing the objectives and provisions of the bank act. Except as specified, existing law continuously appropriates all moneys in the bank fund for support of the I-Bank and for expenditure for the purposes stated in the bank act.

This bill would provide that moneys in the bank fund are available for expenditure for California Transmission Accelerator financing, as described above, only upon appropriation by the Legislature. The bill would create the Accelerator Revolving Fund within the State Treasury for the purpose of providing financial assistance under the Accelerator Revolving Fund Program. The bill would make the moneys in the fund, except as specified, continuously appropriated, without regard to fiscal year, for the support of eligible entities, as defined, and available for expenditure for the above-described purposes. By establishing a continuously appropriated fund, the bill would make an appropriation.

Sponsors

Sponsors by party (alphabetical): Democratic 3

“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. September 19, 2025Chaptered by Secretary of State. Chapter 119, Statutes of 2025.
2. September 19, 2025Approved by the Governor.
3. September 15, 2025Enrolled and presented to the Governor at 2 p.m.
4. September 13, 2025Assembly amendments concurred in. (Ayes 30. Noes 2. Page 3053.) Ordered to engrossing and enrolling.
5. September 13, 2025In Senate. Concurrence in Assembly amendments pending.
6. September 13, 2025Read third time. Urgency clause adopted. Passed. (Ayes 69. Noes 0. Page 3485.) Ordered to the Senate.
7. September 12, 2025Assembly Rule 63 suspended. (Ayes 57. Noes 20. Page 3441.)
8. September 12, 2025From committee: Do pass. (Ayes 16. Noes 0.) (September 12).
9. September 10, 2025(Corrected September 10).
10. September 10, 2025Joint Rule 61 and 62(a) suspended. (Ayes 30. Noes 9. Page 2801.)
11. September 10, 2025Joint Rule 62(a) suspended.
12. September 10, 2025Re-referred to Com. on U. & E. pursuant to Assembly Rule 77.2.