CA AB1280

Authorizes the California Infrastructure and Economic Development Bank (I-Bank) to provide financial assistance for industrial decarbonization projects, including industrial heat pumps and thermal energy storage, contingent upon legislative appropriation

Establishes the Industrial Facilities Thermal Energy Storage Program within the Long-Duration Energy Storage Program to provide financial incentives for projects that decarbonize industrial facilities' use of heat and power

Renames the Industrial Grid Support and Decarbonization Program to the Industrial Decarbonization and Improvement of Grid Operations Program, expanding its purpose to include reducing health-harming pollutant emissions

Requires projects receiving financial incentives after January 1, 2027 to use project labor agreements meeting Public Contract Code Section 2500 requirements, including prevailing wage provisions and targeted hiring plans

Gives funding preference to projects in under-resourced communities, those that develop community benefit funds or agreements, and facilities that reduce air pollution in non-attainment areas; requires facilities with air permit violations to develop pollution remediation plans