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California\u2019s INDIGO program, created in 2022, provides incentives for industrial projects that benefit the electrical grid, reduce emissions and improve air quality, according to its website. Earlier this year, Sierra Nevada Cheese received a $5.5 million loan<\/a> from the program to install an anaerobic digester, linear generator and other equipment to lower emissions from its cheese plant.\u00a0<\/p>\n The bill, which passed the Senate unanimously on Sept. 9, would make thermal energy storage technology eligible for three state programs: the Climate Catalyst Revolving Loan program run by the California Infrastructure and Economic Development Bank, as well as the CEC\u2019s Long Duration Energy Storage and INDIGO programs.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span>It is receiving strong political support after federal incentives targeting carbon emissions were cut or repealed earlier this year.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n In California, manufacturers recently lost more than $500 million <\/strong>in federal funding <\/strong>earmarked for decarbonization projects, said Teresa Cheng, California Director at Industrious Labs, a climate advocacy group.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cCalifornia really has an opportunity to invest in this sector,\u201d Cheng said. \u201cTo not only cut industrial pollution [and] lower energy costs, but to make sure we keep manufacturing jobs here in the state.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The bill also passed the Assembly floor 71-1 this week. The one dissenting vote came from Republican Assembly member Carl DeMaio. Cheng and other supporters, including Amy\u2019s Kitchen, the Natural Resources Defense Council and Sierra Nevada Brewing,\u00a0said the projects will slash greenhouse gas emissions and improve air quality, while keeping electricity costs affordable for businesses and residents.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cIt\u2019s an example of how we can use climate policy to not only cut health harming pollution that\u2019s resulting in expensive hospital bills and asthma attacks, early deaths, but also creating good jobs and helping to maintain and invest in our manufacturing base,\u201d Cheng said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n California has one of the largest manufacturing economies, <\/span><\/span><\/span><\/span><\/span><\/span>employing 1.3 million people<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>, or about 7% of the state\u2019s workforce in 2023, according to the Governor\u2019s Office of Business and Economic Development. While it\u2019s considered a climate bill, Cheng said it\u2019s also an economic investment bill meant to offset project costs and help retain companies so they can do business in a \u201csustainable, efficient and non-polluting way.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The Western Electrical Contractors Association opposed the bill, urging Garcia to remove the project labor Agreement provisions, arguing they are discriminatory and increase the cost of construction.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The state\u2019s business and economic development agency reported one-time, stand-up costs ranging from approximately $1.5 million to $3 million associated with the bill, as well as ongoing costs ranging from $429,000 to $1.03 million.<\/p>\n<\/p><\/div>\n