Bill Text: CA AB2757 | 2023-2024 | Regular Session | Amended


Bill Title: Southeast California Economic Region.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2024-07-01 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (July 1). Re-referred to Com. on APPR. [AB2757 Detail]

Download: California-2023-AB2757-Amended.html

Amended  IN  Senate  June 13, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2757


Introduced by Assembly Member Garcia
(Coauthor: Senator Padilla)

February 15, 2024


An act to add and repeal Section 12097.6 of the Government Code, relating to economic development.


LEGISLATIVE COUNSEL'S DIGEST


AB 2757, as amended, Garcia. Southeast California Economic Region.
Existing law establishes the Governor’s Office of Business and Economic Development, also known as “GO-Biz,” to, among other duties, 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. In this regard, existing law authorizes GO-Biz to develop content on its internet website or through other mediums to be used for public dissemination, through outreach activities, in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including California Promise Zones and California Opportunity Zones. Existing law requires the office to convene, at least annually, representatives from various programs and agencies across the state and from various federal programs and agencies for the purpose of discussing how California can leverage promise zones and opportunity zones to meet state and local community and economic development needs.
Existing law establishes the Community Economic Resilience Fund Program, within the Workforce Services Branch of the Employment Development Department, to build an equitable and sustainable economic recovery from the impacts of COVID-19 on California’s industries, workers, and communities, and to provide for the durability of that recovery by fostering long-term economic resilience in the overall transition to a carbon-neutral economy. Existing law requires the Community Economic Resilience Fund Program to be administered by Labor and Workforce Development Agency, the Office of Planning and Research, and GO-Biz. Existing law refers to these 3 agencies as the Inter-Agency Leadership Team.
This bill would, until January 1, 2035, designate the Southeast California Economic Region, as specified, and would state that its purpose is to, among other things, better align state and federal programs, services, and funding within those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and additional clean energy development in the surrounding areas within the region. The bill would require the Inter-Agency Leadership Team, on or before June 1, 2025, to prepare a list of state programs that use the Southeast California Economic Region designation for planning and funding purposes, as specified. The bill would authorize the Southeast California Economic Region to facilitate regional collaboration on developing a strategy-driven plan for regional economic development, as described.
The bill would make legislative findings and declarations as to the necessity of a special statute for the County of Imperial.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) A sustained effort is underway to establish a high road high-road economy centered on inclusive, sustainable, and equitable use of lithium and other minerals and renewable energy resources in the Salton Sea region. Full deployment of these renewable power resources could provide a once-in-a-generation opportunity to support transformative economic growth within this historically disinvested area, bringing family-sustaining jobs and real economic opportunities to California’s most underserved residents.
(b) The region’s current access to economic incentives must be improved to drive an inclusive high road high-road economic vision. If not proactively addressed, resource extraction can result in the region being less economically, environmentally, and socially well-off when these highly prized renewable energy resources are exported for processing. A more comprehensive and balanced approach recognizes the environmental and public health costs already borne by the people in the region and commits that the buildout of Lithium Valley and its related economic activities include processing, manufacturing, research facilities, workforce development, public health improvements, infrastructure enhancements, and other community benefits.
(c) One impediment to an inclusive transition to a net-zero emission economy and realization of the economic and national security benefits is government-imposed administrative challenges to collaboratively applying for and deploying funds within the region. Due to their historically small populations, these desert regions have been attached to regional planning and program areas that lie beyond significant geographic barriers. For example, the County of Imperial has been grouped with primarily urban County of San Diego and the Coachella Valley with the Inland Empire. However, these southeastern communities have vastly different needs, resources, and demographic profiles from other areas within their foster homes. This shortsighted government administrative practice dilutes the interests, voices, and opportunities of the people and businesses that comprise the Imperial and Coachella Valleys.
(d) This misassignment of southeastern desert communities was documented in the December 2022 report by the Blue Ribbon Commission on Lithium Extraction in California, published by the Energy Commission, which recommended the designation a “Salton Sea Region,” consisting of the Eastern Coachella and Imperial Valleys. More specifically, the report called for the recognition of a Salton Sea Region that includes all of the County of Imperial and the Eastern Coachella Valley and Palo Verde Valleys of the County of Riverside, extending from the City of Coachella to the unincorporated communities near the Salton Sea and then farther east to the California-Arizona border.
(e) The Blue Ribbon Commission report states that this large area is economically distinct from other state regions, with approximately 150,000 people living and working in its communities. Major employment sectors across the region are described as agriculture and tourism, making these communities more similar to each other than they are to the economies of the Inland Empire and San Diego. The demographic makeup of the population in the Salton Sea Region designated in the Commission report is also distinct from its neighboring regions due to the substantially higher percentage of households where Spanish, rather than English, is the primary language.
(f) To capture the full benefits of the Lithium Valley renewable energy development hub, the southeastern desert valleys need a definitive economic development designation that supports efficient resource attraction and fosters economic relationships between business, labor, and community. The goal for such a designation is to enable a “regional roadmap for economic recovery” that prioritizes the creation of accessible, high-quality jobs, improved quality of life, and critical extraction, processing, manufacturing, and supply chain opportunities consistent with the needs and assets of the southeastern desert valley communities.
(g) It is the intent of the Legislature to establish the Southeast California Economic Region, which will facilitate collaboration with state, federal, regional, and local organizations, entities, and governments on issues of mutual interest that advance the economy and quality of life of residents and businesses. A special focus of this work shall be those communities and groups of individuals who have historically been excluded from decisionmaking and the benefits of economic development projects.

SEC. 2.

 Section 12097.6 is added to the Government Code, to read:

12097.6.
 (a) The Southeast California Economic Region is hereby designated, subject to the provisions of this section.
(b) The boundaries of the Southeast California Economic Region align with the Southeast California Economic Zone recommended in the Governor’s Blue Ribbon Commission on Lithium Extraction in California report and shall include all of the following:
(1) All unincorporated areas of the County of Imperial, including, but not limited to, one or more of the following census-designated places:
(A) Bombay Beach.
(B) Desert Shores.
(C) El Centro Naval Air Facility CDP, California.
(D) Heber.
(E) Niland.
(F) Ocotillo.
(G) Palo Verde.
(H) Salton City.
(I) Salton Sea Beach.
(J) Seeley.
(K) Winterhaven.
(2) All unincorporated areas of the County of Riverside, including census-designated places, that lie south of the 33rd parallel north and west of the 116th meridian west. 33.90 degrees north and east of 116.25 degrees west.
(3) All of the following census-designated places within the County of Riverside:
(A) Desert Center.
(B) Indio Hills.
(C) Mecca.
(D) Mesa Verde.
(E) North Shore.
(F) Oasis.
(G) Ripley.
(H) Thermal.
(I) Vista Santa Rosa.

(3)

(4) All of the following incorporated jurisdictions:
(A) The City of Blythe.

(A)

(B) The City of Brawley.

(B)

(C) The City of Calexico.

(C)

(D) The City of Calipatria.
(E) The City of Coachella.

(D)

(F) The City of El Centro.

(E)

(G) The City of Holtville.

(F)

(H) The City of Imperial.

(G)The City of Coachella.

(H)

(I) The City of Indio.

(I)

(J) The City of Westmorland.
(c) The purpose of the Southeast California Economic Region is to accomplish both of the following:
(1) To better align state and federal programs, services, and funding within those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and additional clean energy development in the surrounding areas within the region.
(2) To contribute to the nation’s defense and security by stimulating local and equitable economic development activities that benefit residents, workers, and businesses, using participatory decisionmaking and taking a multijurisdictional approach, which leverages the competencies of public, private, and nonprofit sectors for the region’s transformational future.
(d) (1) On or before June 1, 2025, the Inter-Agency Leadership Team, as specified in Section 14531 of the Unemployment Insurance Code, shall prepare a list of state programs that shall use the Southeast California Economic Region designation for planning and funding purposes.
(2) The list shall, to the extent necessary, provide guidance to state agencies on how to acknowledge and utilize the Southeast California Economic Region designation and boundaries in program and service delivery, planning activities, and making funding awards.
(3) The list may include information on statutory impediments to using the Southeast California Economic Region designation in applying for other state and federal funding or services.
(e) (1) The Southeast California Economic Region may facilitate regional collaboration on developing a strategy-driven plan for regional economic development that builds upon and aligns with the inclusive planning efforts of previously approved plans and strategies.
(2) The inclusive planning efforts of the Southeast California Economic Region may include, but are not limited to, the Community Economic Resilience Fund Program, authorized pursuant to Section 14531 of the Unemployment Insurance Code, and high road high-road training partnerships, as defined in subdivision (s) of Section 14005 of the Unemployment Insurance Code, relating to renewable energy that includes the County of Imperial.
(3) The strategy-driven plan shall, at a minimum, meet the requirements of a comprehensive economic development strategy and be used to apply for the federal designation of an economic development district by the United States Department of Commerce.
(f) This section does not require cities or counties in the Southeast California Economic Region to take any specific actions or to participate in activities or funding awarded to the Southeast California Economic Region, unless the jurisdiction has specifically indicated that it wishes to participate or if the locality’s participation is otherwise required by separate statute or agreement.
(g) This section shall remain in effect only until January 1, 2035, and as of that date is repealed.

SEC. 3.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances and challenges relating to the development of lithium extraction and processing in the County of Imperial.
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