Public Resources Code § 25662.2

(a)The commission may establish project and industrial facility eligibility guidelines for purposes of this article.

(b)The eligibility guidelines established pursuant to subdivision (a) shall be consistent with all of the following requirements:

(1)“Eligible industrial facility” shall include, but not be limited to, a facility involved with manufacturing, production, and processing of materials, such as chemicals, metals, food and beverages, and nonmetallic minerals, including cement, glass, electronics, and pharmaceuticals, and related support facilities.

(2)(A) “Eligible project” shall include, but not be limited to, the purchase and deployment of advanced technologies and equipment that is capable of doing at least one of the following:

(i)Enhance electrical grid reliability and enable industrial facility participation in utility load reduction programs, such as an emergency load reduction program.

(ii) Electrify processes that use gas or other fossil fuels to produce heat for industrial processes.

(iii) Incorporate energy storage, including thermal energy storage, or renewable energy resources.

(iv) Increase energy efficiency.

(v)Develop and deploy novel decarbonization technologies and strategies, including carbon capture of process emissions for use in products, such as carbonate mineralization and carbon curing of concrete that reduces or eliminates the emissions of greenhouse gases, except geologic storage.

(B) “Eligible project” shall not include a project to benefit an oil production, processing, or refining facility, to benefit a fossil gas production, processing, or refining facility, or to use captured carbon for enhanced oil and gas recovery.

2027, a project that involves the performance of work by contractors in the construction industry shall be eligible for a financial incentive pursuant to this article only if the work is performed pursuant to a project labor agreement that, at a minimum, meets the requirements of Section 2500 of the Public Contract Code.

(D) A project shall only be eligible for a financial incentive pursuant to this article if the project will use technologies that exceed the best available control technology, as defined in Section 40405 of the Health and Safety Code, if applicable.

(E) For applications received after January 1,

2027, an eligible project for a facility that has a record of air permit violations shall separately develop a plan for pollution remediation, including for ecological and public health harms.