AB 209 Summary

• Renames the Lithium Subaccount as the Salton Sea Lithium Fund to receive 20% of lithium extraction excise tax revenues for restoration projects and community benefits around the Salton Sea, with 80% distributed to Imperial County and affected communities.

• Establishes the Climate Innovation Program to provide financial incentives to California-headquartered companies for developing climate and resilience technologies, with repayment requirements of 120% of funds upon liquidity events.

• Creates multiple clean energy programs including the Industrial Grid Support and Decarbonization Program, Food Production Investment Program, Hydrogen Program, Equitable Building Decarbonization Program, and offshore wind infrastructure support program to fund eligible projects and facilities.

• Requires electrical corporations participating in the Independent System Operator to remain mandatory participants and prohibits withdrawal of facilities from ISO operational control without Public Utilities Commission approval.

• Expands the self-generation incentive program to make solar and energy storage systems eligible for funding for low-income residential customers and authorizes additional $15 million in sales and use tax exclusions for lithium processing and manufacturing projects through 2024.