CA SB126

Renames the Lithium Subaccount to the Salton Sea Lithium Fund in the State Treasury and dedicates 20% of lithium extraction excise tax revenues to fund restoration projects and community benefits around the Salton Sea.

Establishes the Climate Innovation Program to provide financial incentives to California-headquartered companies developing climate technologies, with requirement to repay 120% of incentive amount if a liquidity event occurs within 10 years.

Creates multiple clean energy programs including Industrial Grid Support and Decarbonization Program, Food Production Investment Program, Hydrogen Program, Equitable Building Decarbonization Program, offshore wind infrastructure support, and Carbon Removal Innovation Program.

Expands the sales and use tax exclusion for advanced manufacturing projects to include an additional $15 million annually for 2022-2024 specifically for lithium manufacturing, refining, extraction, processing, or recovery projects.

Requires electrical corporations participating in the Independent System Operator to maintain that participation and prohibits withdrawal of facilities from ISO operational control without Public Utilities Commission approval.