CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 534Introduced by Senator PadillaFebruary 20, 2025 An act to add and repeal Chapter 34.5 (commencing with Section 7599.105) of Division 7 of Title 1 of the Government Code, relating to local government. LEGISLATIVE COUNSEL'S DIGESTSB 534, as introduced, Padilla. Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys. Existing law establishes procedures for the formation of infrastructure financing districts, enhanced infrastructure financing districts, infrastructure and revitalization financing districts, community revitalization and investment authorities, and public-private partnerships, as specified, to undertake various economic development projects, including financing public facilities and infrastructure, affordable housing, and economic revitalization. Existing law, until January 1, 2028, authorizes the establishment of a Green Empowerment Zone for the Northern Waterfront area of the County of Contra Costa for the purpose of building upon the comparative advantage provided by the regional concentration of highly skilled energy industry workers by prioritizing access to tax incentives, grants, and loan programs, among other incentives.This bill, until January 1, 2035, would authorize establishment of a Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys (empowerment zone). The bill would authorize the empowerment zone to be composed of specified land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys, upon adoption of a resolution by the Imperial County Board of Supervisors, and would provide for the empowerment zone to be governed by a board of directors, as specified. The bill would task the empowerment zone with various duties, including, among other things, identification of projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of Californias southeastern desert valleys, as specified, in a coordinated effort to support the development and equitable transition to a clean energy economy. The bill would require the board of directors, beginning on January 1, 2027, to submit an annual progress report to the Legislature and the Governors Office of Business and Economic Development, as specified. The bill would require the empowerment zone, commencing on January 1, 2027, as specified, to post the above-described report on its internet website and to submit a letter to the Legislature informing the Legislature that the report has been posted.This bill would make legislative findings and declarations as to the necessity of a special statute for the Southeastern Desert Valleys.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) A sustained effort is underway to support the states equitable transition to a net-zero-emissions economy. This includes developing reliable and ongoing renewable energy sources and the equipment, facilities, and raw materials necessary to support that production. Full deployment of these renewable power resources could provide a once-in-a-generation opportunity to support catalytic economic growth within the Salton Sea region and its historically disinvested communities.(2) The regions access to economic incentives must be improved to drive an inclusive high-road economic vision. If not proactively addressed, resource extraction can result in the region being less economically, environmentally, and socially well-off when its critical minerals and renewable energy are exported to benefit other areas of the state and nation. 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.(3) One impediment to an inclusive transition to a net-zero-emissions economy and realizing 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 valley regions have been legally assigned to regional planning and state program delivery areas that lie beyond significant geographic barriers. Most commonly, the County of Imperial has been linked with the 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.(4) 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 State Energy Resources Conservation and Development Commission, which recommended the designation of 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 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.(5) The Blue Ribbon Commission on Lithium Extraction in California 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 the County of 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.(6) To capture the full benefits of the Lithium Valley renewable energy development hub, the southeastern desert valleys need a definitive economic development designation and structure that supports efficient resource attraction and fosters economic relationships between business, labor, and community. The goal for such a designation and structure is to support this historically disinvested area to build local career pathways to high-quality jobs, a dynamic small business ecosystem, 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.(b) Therefore, it is the intent of the Legislature to authorize the establishment of the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys. These actions will increase the areas competitiveness in seeking funds and deploying resources by facilitating collaboration with state, federal, tribal, 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. Chapter 34.5 (commencing with Section 7599.105) is added to Division 7 of Title 1 of the Government Code, to read: CHAPTER 34.5. Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys 7599.105. This chapter shall be known, and may be cited, as the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys Act.7599.106. For purposes of this chapter, the following definitions apply:(a) Board means the board of directors set forth in Section 7599.108.(b) Entrepreneurial ecosystem means policies, structures, and approaches to investment that support economic activity and business enterprise throughout the business life cycle. Place-based entrepreneurial ecosystems refer to the strategic alignment of various public and private efforts, including, but not limited to, education and training, funding and finance, human capital, community culture, and regulatory frameworks.(c) Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys or empowerment zone means a zone authorized and established pursuant to this chapter.7599.107. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys may be established pursuant to subdivision (d).(2) The geographic boundaries of the zone may extend to the territories of the jurisdictions listed in subdivision (c), subject to the jurisdictions approval, as provided in subdivision (d).(b) (1) (A) The purpose of the empowerment zone is to cultivate and stimulate targeted investments by the public and private sectors in Californias southeastern desert region, which has historically been overlooked and left behind by the states existing economic planning and funding activities. (B) The empowerment zone will accomplish the goal described in this subdivision by facilitating the region to work collaboratively on strategically leveraging state, federal, and local government-provided tax incentives with grant, loan, and workforce training programs and services offered through public and private sector entities.(2) (A) Success of the empowerment zone shall be measured by the increased flow of public and private capital into the region, the participation of local residents and businesses in the benefits of those investments, and the expansion and innovation of a green energy industrial center.(B) The measurement of success of the empowerment zone described in this subdivision includes, but is not limited to, the development of the regions lithium extraction and processing capabilities, the development of related manufacturing, and an increased quality of life for the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm.(c) (1) Subject to the limitations and requirements of this chapter, the empowerment zone may include the land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys.(2) The maximum boundaries of the empowerment zone include each of the following jurisdictions and designated places:(A) All unincorporated areas of the County of Imperial, including the following census-designated places:(i) Bombay Beach.(ii) Desert Shores.(iii) Heber.(iv) Naval Air Facility El Centro.(v) Niland.(vi) Ocotillo.(vii) Palo Verde.(viii) Salton City.(ix) Salton Sea Beach.(x) Seeley.(xi) Winterhaven.(B) Unincorporated areas of the County of Riverside, which lie south of 33.90 degrees north and east of 116.25 degrees west. This includes the following census-designated places within the County of Riverside:(i) Desert Center.(ii) Indio Hills.(iii) Mecca.(iv) Mesa Verde.(v) North Shore.(vi) Oasis.(vii) Ripley.(viii) Thermal.(ix) Vista Santa Rosa.(C) The following incorporated jurisdictions in the County of Imperial:(i) The City of Blythe. (ii) The City of Brawley.(iii) The City of Calexico.(iv) The City of Calipatria.(v) The City of El Centro.(vi) The City of Holtville.(vii) The City of Imperial.(viii) The City of Westmorland. (D) The following incorporated jurisdictions in the County of Riverside:(i) Coachella.(ii) Indio.(d) (1) (A) (i) The Imperial County Board of Supervisors may adopt a resolution to initiate the establishment of the empowerment zone.(ii) The resolution shall state the countys support for the creation of the empowerment zone and commit to appointing two representatives to the board of directors within 10 business days.(iii) Following the adoption of the County of Imperials resolution, the legislative body for jurisdictions listed in subparagraph (C) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commit to appointing one representative to the board of directors within 10 business days.(B) (i) Following the adoption of the County of Imperials resolution pursuant to subparagraph (A), the Riverside County Board of Supervisors may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appoint two representatives to the board of directors within 10 business days.(ii) If the County of Riverside adopts a resolution, the legislative body for jurisdictions listed in subparagraph (D) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appointing one representative to the board of directors.(2) (A) To ensure the timely establishment of the empowerment zone, cities listed in subparagraphs (C) and (D) of paragraph (2) of subdivision (c) shall adopt the resolution within 45 business days of their respective county adopting their resolution.(B) Following the 45 days described in subparagraph (A), a jurisdiction shall not join the empowerment zone until the first anniversary of the full establishment of the empowerment zone, as prescribed in subdivision (e).(3) (A) The legislative body of a city or county listed in subdivision (c) may remove the land within its jurisdiction from the empowerment zone by adopting a resolution stating that it no longer wishes to participate. (B) The resolution ending participation in the empowerment zone shall identify a final date for inclusion in the empowerment zone, which shall be no later than 60 days from the adoption of the resolution.(C) Any benefits or incentives awarded before the adoption of a resolution removing the jurisdiction from the empowerment zone shall continue under the same terms and conditions as would have been applied if the jurisdiction were still in the empowerment zone for not fewer than two years. (e) The empowerment zone shall become a state-designated zone with full powers and authorities provided in this chapter when both of the following conditions are met:(1) The County of Imperial has adopted the initiating resolution pursuant to subparagraph (A) of paragraph (1) of subdivision (d).(2) The board of directors has been formed and a public meeting has been held.7599.108. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall be governed by a board of directors composed of representatives of stakeholder groups identified in subdivision (d).(2) The board shall exercise all of the powers of the empowerment zone, except as otherwise provided in this chapter.(b) (1) All stakeholder group representatives on the board of directors shall serve a three-year term and may be reappointed by their appointing body for up to two additional terms.(2) (A) In the initial round of appointing directors, the board shall use a lottery system to decide which directors will serve two-year and four-year terms.(B) The appointment approach described in this subdivision shall aim to stagger the turnover of board members so that no more than one-third of the directors leave at the same time.(3) (A) No representative for a public stakeholder entity shall retain their seat on the empowerment zone board of directors after ceasing to hold the position that qualifies them as an eligible representative for the board. That persons membership on the board shall thereafter be considered vacant.(B) (i) The board members eligibility from a private entity shall be determined by the board in consultation with the appointing entity if there is one. (ii) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(4) A vacancy on the board shall be filled for the unexpired term by the selection and appointment process used to appoint the director whose position has become vacant.(5) (A) A director who fails to attend at least 50 percent of the board meetings in any 12-month period is subject to removal from the board.(B) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(c) (1) (A) All directors shall be voting members of the board, except those directors appointed from stakeholder groups listed in paragraph (11) of subdivision (d) that represent a state or federal agency and paragraph (12) of subdivision (d) representing state and federal elected officials.(B) Individuals representing state and federal governmental entities on the board shall be nonvoting members.(2) (A) A majority of the voting directors shall constitute a quorum for the transaction of business and may act for the board.(B) Ex officio nonvoting members shall not be counted in establishing a quorum.(C) Vacancies shall not change the number of voting directors required to be in attendance to constitute a quorum.(D) Notwithstanding subparagraph (C), during the first 12 months following the establishment of the empowerment zone, a quorum shall consist of a majority of voting directors sitting on the board.(d) The membership of the board of directors shall comprise all of the following representatives who shall participate in meetings and serve as a liaison with their appointing entities and related organizations:(1) Two local government directors selected by each of the counties listed in subdivision (c) of Section 7599.107 and that have adopted a resolution expressing their support for participating in the empowerment zone.(2) One local government director selected by each incorporated city listed in subdivision (c) of Section 7599.107 that adopted a resolution expressing their support for participating in the empowerment zone.(3) Three directors selected by the Southern California Tribal Chairmens Association to represent tribal governments with lands in the empowerment zone. (4) (A) Three directors representing large private sector employers with facilities in the empowerment zone.(B) Each of the three largest employers shall select a representative to the board based on the number of employees and whether the business is in the energy, health, or manufacturing sector.(C) Employer size shall be based on data from the local workforce board and the boundaries of the empowerment zone at the time the director is selected.(5) Three directors from universities and laboratories with specialized expertise and knowledge of clean energy who shall, upon agreement by the Regents of the University of California, be nominated by the office of the President of the University of California and confirmed by the board.(6) (A) Four directors representing the five largest private sector organized labor organizations whose membership works in the empowerment zone.(B) The directors shall be selected by their organizations.(7) (A) Eight directors representing workforce development and public and private educational entities that serve residents and businesses in the empowerment zone. (B) The directors shall be selected as follows:(i) The Imperial County Workforce Development Board and the Riverside County Workforce Development Board shall each designate one director responsible for participating in meetings and serving as a liaison between the boards and their respective appointing bodies.(ii) The California State University system and the office of the Chancellor of the California Community Colleges shall each select two directors.(iii) Two additional directors shall be nominated by the Southern California Association of Governments and confirmed by the board.(8) (A) Three directors representing foundations with specialized expertise and knowledge of green energy, public health, or economic development.(B) The foundation representatives shall be nominated by the Southern California Association of Governments and confirmed by the board. (9) (A) Three directors representing community-based nonprofit organizations with a mission to serve disinvested lower income communities within the empowerment zone.(B) The Governor shall appoint the directors.(10) (A) Two directors representing the public interest.(B) The Governor shall appoint the directors from individuals whose residence and employment are within the empowerment zone. (11) (A) Six directors representing state government, from the following state governmental agencies:(i) The Governors Office of Business and Economic Development.(ii) The Governors Office of Land Use and Climate Innovation.(iii) The Natural Resources Agency. (iv) The Transportation Agency. (v) The California Workforce Development Board.(vi) The State Energy Resources Conservation and Development Commission.(B) Each state government director may designate a representative to serve on the board.(12) Every Member of the California Legislature and of the United States Congress representing geographic areas within the empowerment zone shall be ex officio members of the board of directors.(e) (1) The empowerment zone shall have an executive committee composed of the chair and two deputy chairs selected pursuant to paragraph (2) and up to eight additional members of the board of directors, which shall be selected by a majority vote of the board of directors.(2) (A) The executive committee may carry on the administrative and executive functions of the board between full meetings.(B) (i) Each executive committee member serves a two-year term.(ii) Although individuals may serve on the executive committee more than once, they may not serve consecutive terms.(C) The chair and deputy chairs shall be chosen from among the following:(i) One member shall be a Member of the Legislature who represents one or more of the cities or a county listed in subdivision (c) of Section 7599.107.(ii) One member shall be a representative from a local agency in a city or county listed in subdivision (c) of Section 7599.107 that serves an area within the empowerment zone.(iii) One member shall be a representative whose residence and place of employment is within the empowerment zone.(3) The board may elect other officers as it deems necessary from among its members.(4) The provisions for the executive committee set forth in this chapter shall not be construed to limit the board or the executive committee from setting up any other committees or groups that it may see fit.(f) (1) The board shall meet at least six times per year.(2) Additional meetings may be called at the discretion of the chair or of a majority of the executive committee.(g) (1) The board of directors members shall serve without compensation.(2) With the chairs prior approval, each board member shall receive the actual and necessary travel-related expenses incurred in attending board meetings and other events.(h) Each member of the board of directors shall, upon identifying a conflict of interest, or a potential conflict of interest, regarding a matter before the board of directors of the empowerment zone, immediately and before consideration of the matter, do all of the following: (1) (A) Provide written notice to the chair regarding the interest that gives rise to the conflict of interest or potential conflict of interest. (B) In the case of the chair, written notice shall be given to one of the deputy chairs.(2) Recuse themselves from discussing or voting on the matter.(3) Leave the meeting room until after discussion, vote, and any other consideration of disposition of the matter is concluded. (i) A board of directors member shall not use the name of the empowerment zone on any letterhead, business code, or identification badge unless the person has been authorized to do so by the board of directors. 7599.109. (a) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall have all of the following powers:(1) To establish and maintain such offices as are judged best to facilitate the accomplishment of the empowerment zones purposes.(2) To contract with any person, firm, association, or corporation, or to contract for any other types of services judged by the board to be necessary or convenient for carrying out the purposes of the empowerment zone.(3) Receive and accept from any source, including, but not limited to, the federal government, the state, or any agency thereof, loans, contributions, or grants, in money, property, labor, or other things of value in aid of the operations and activities of the empowerment zone.(b) (1) The executive director shall manage and conduct the empowerment zones business and affairs, subject to the boards direction.(2) The board may assign to the executive director, by resolution, those duties generally necessary or convenient to carry out its powers and purposes under this chapter.7599.109.1. The empowerment zone may do all of the following:(a) Identify projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of Californias southeastern desert valleys, especially those acts that leverage federal, state, local, and private sector resources in a coordinated effort to support the development and equitable transition to a clean energy economy.(b) (1) Prepare, maintain, and regularly review and revise a regional economic plan that stimulates targeted public and private investments that support transformative economic growth that brings family-sustaining jobs and real economic opportunities to Californias most underserved residents. (2) The plan shall be a blueprint that reflects, integrates, leverages, amplifies, and fills program and service gaps in economic and workforce development activities within the empowerment zone.(3) The purpose of the plan is to facilitate and supplement regional activities, not supplant or override the work of other governmental entities.(c) Prepare, publish, or assist in making or publishing studies or investigations of the regions resources, and of existing or emerging problems related to the inclusive economic growth and development or prosperity of the region, or any part thereof.(d) Work with Members of the state Legislature, state departments, and officials to gain state support for projects identified by the zone as critical to the regions development and equitable transition to a clean energy economy.(e) Enhance the entrepreneurial ecosystem to support the regions development and equitable transition to a clean energy economy. This may include facilitating the establishment of one or more business service centers to facilitate access to business development incentive programs to benefit residents of disadvantaged communities, tribal members, small businesses, and other entrepreneurs.(f) Partner with the University of California, the California State University, community colleges, and the states other research and educational institutions, as well as private foundations, to provide guidance, advice, and encouragement in support of studies of particular interest and importance to the energy and manufacturing industries and the quality of life in the southeastern desert valleys.(g) Work with members of the states congressional delegation and federal officials, including the Border Governors Association, to gain federal support for projects identified by the empowerment zone as critical to the region. (h) Review state and federal policies and regulations to ensure they are fair and appropriate for the businesses, workers, and residents of the economic region.(i) Make recommendations to the Governor to improve the regions economic well-being and residents quality of life.(j) Create and maintain an internet website to facilitate the goals and projects of the empowerment zone.(k) Take other actions that support the regions development into a more diverse economy, including a clean power industrial center that benefits the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm.7599.109.2. (a) (1) Beginning on January 1, 2027, the board shall submit an annual progress report to the Legislature and the Governors Office of Business and Economic Development. (2) The annual progress report shall cover empowerment zone activities and their progress meeting reporting metrics during the prior fiscal year. (3) The scope of the first report shall include empowerment zone activities from January 1, 2026, through June 30, 2026.(4) The report shall be submitted in compliance with Section 9795.(b) (1) The board shall appoint an advisory committee to develop proposed annual reporting metrics. (2) The advisory committee shall include board members and stakeholders who live and work in the empowerment zone. (3) The board shall review the proposed metrics and adopt final reporting metrics on or before January 1, 2027. (4) The reporting metrics shall include, but not be limited to, all of the following:(A) Progress on developing and implementing the regional roadmap for economic recovery and inclusive transition.(B) (i) The number, size, and industry sector of businesses assisted through empowerment zone activities, including the type of services provided.(ii) The report shall include information voluntarily provided by the businesses that received the assistance.(iii) Providing the information shall not be a requirement for obtaining the assistance.(C) (i) The number, type of services, and demographic profile of individuals served by empowerment zone activities.(ii) The report shall include information voluntarily provided by the individuals who received the services.(iii) Providing the information shall not be a requirement for obtaining the services.(D) The number of jobs gained and lost in key industry sectors of the regional economy in the empowerment zone.(E) The average wage of the jobs gained in each economic sector.(F) The number and types of grants, other funding, and incentives brought to the region through empowerment zone activities.(G) The type and amount of apprenticeship and preapprenticeship positions facilitated by empowerment zone activities.(H) The type and amount of workforce training conducted in the zone, by whom it was provided, and the amount of capital investment associated with providing that training.(c) Commencing on January 1, 2027, and on or before January 1 of each year thereafter, the empowerment zone shall post the report described in subdivision (a) on its internet website and submit a letter to the Legislature informing the Legislature that the report has been posted.7599.109.3. This chapter 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 economic development in the Southeastern Desert Valleys, and the state and national interests in fast tracking renewable energy generation and extraction of critical minerals within the region. CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 534Introduced by Senator PadillaFebruary 20, 2025 An act to add and repeal Chapter 34.5 (commencing with Section 7599.105) of Division 7 of Title 1 of the Government Code, relating to local government. LEGISLATIVE COUNSEL'S DIGESTSB 534, as introduced, Padilla. Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys. Existing law establishes procedures for the formation of infrastructure financing districts, enhanced infrastructure financing districts, infrastructure and revitalization financing districts, community revitalization and investment authorities, and public-private partnerships, as specified, to undertake various economic development projects, including financing public facilities and infrastructure, affordable housing, and economic revitalization. Existing law, until January 1, 2028, authorizes the establishment of a Green Empowerment Zone for the Northern Waterfront area of the County of Contra Costa for the purpose of building upon the comparative advantage provided by the regional concentration of highly skilled energy industry workers by prioritizing access to tax incentives, grants, and loan programs, among other incentives.This bill, until January 1, 2035, would authorize establishment of a Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys (empowerment zone). The bill would authorize the empowerment zone to be composed of specified land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys, upon adoption of a resolution by the Imperial County Board of Supervisors, and would provide for the empowerment zone to be governed by a board of directors, as specified. The bill would task the empowerment zone with various duties, including, among other things, identification of projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of Californias southeastern desert valleys, as specified, in a coordinated effort to support the development and equitable transition to a clean energy economy. The bill would require the board of directors, beginning on January 1, 2027, to submit an annual progress report to the Legislature and the Governors Office of Business and Economic Development, as specified. The bill would require the empowerment zone, commencing on January 1, 2027, as specified, to post the above-described report on its internet website and to submit a letter to the Legislature informing the Legislature that the report has been posted.This bill would make legislative findings and declarations as to the necessity of a special statute for the Southeastern Desert Valleys.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 534 Introduced by Senator PadillaFebruary 20, 2025 Introduced by Senator Padilla February 20, 2025 An act to add and repeal Chapter 34.5 (commencing with Section 7599.105) of Division 7 of Title 1 of the Government Code, relating to local government. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST SB 534, as introduced, Padilla. Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys. Existing law establishes procedures for the formation of infrastructure financing districts, enhanced infrastructure financing districts, infrastructure and revitalization financing districts, community revitalization and investment authorities, and public-private partnerships, as specified, to undertake various economic development projects, including financing public facilities and infrastructure, affordable housing, and economic revitalization. Existing law, until January 1, 2028, authorizes the establishment of a Green Empowerment Zone for the Northern Waterfront area of the County of Contra Costa for the purpose of building upon the comparative advantage provided by the regional concentration of highly skilled energy industry workers by prioritizing access to tax incentives, grants, and loan programs, among other incentives.This bill, until January 1, 2035, would authorize establishment of a Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys (empowerment zone). The bill would authorize the empowerment zone to be composed of specified land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys, upon adoption of a resolution by the Imperial County Board of Supervisors, and would provide for the empowerment zone to be governed by a board of directors, as specified. The bill would task the empowerment zone with various duties, including, among other things, identification of projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of Californias southeastern desert valleys, as specified, in a coordinated effort to support the development and equitable transition to a clean energy economy. The bill would require the board of directors, beginning on January 1, 2027, to submit an annual progress report to the Legislature and the Governors Office of Business and Economic Development, as specified. The bill would require the empowerment zone, commencing on January 1, 2027, as specified, to post the above-described report on its internet website and to submit a letter to the Legislature informing the Legislature that the report has been posted.This bill would make legislative findings and declarations as to the necessity of a special statute for the Southeastern Desert Valleys. Existing law establishes procedures for the formation of infrastructure financing districts, enhanced infrastructure financing districts, infrastructure and revitalization financing districts, community revitalization and investment authorities, and public-private partnerships, as specified, to undertake various economic development projects, including financing public facilities and infrastructure, affordable housing, and economic revitalization. Existing law, until January 1, 2028, authorizes the establishment of a Green Empowerment Zone for the Northern Waterfront area of the County of Contra Costa for the purpose of building upon the comparative advantage provided by the regional concentration of highly skilled energy industry workers by prioritizing access to tax incentives, grants, and loan programs, among other incentives. This bill, until January 1, 2035, would authorize establishment of a Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys (empowerment zone). The bill would authorize the empowerment zone to be composed of specified land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys, upon adoption of a resolution by the Imperial County Board of Supervisors, and would provide for the empowerment zone to be governed by a board of directors, as specified. The bill would task the empowerment zone with various duties, including, among other things, identification of projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of Californias southeastern desert valleys, as specified, in a coordinated effort to support the development and equitable transition to a clean energy economy. The bill would require the board of directors, beginning on January 1, 2027, to submit an annual progress report to the Legislature and the Governors Office of Business and Economic Development, as specified. The bill would require the empowerment zone, commencing on January 1, 2027, as specified, to post the above-described report on its internet website and to submit a letter to the Legislature informing the Legislature that the report has been posted. This bill would make legislative findings and declarations as to the necessity of a special statute for the Southeastern Desert Valleys. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) A sustained effort is underway to support the states equitable transition to a net-zero-emissions economy. This includes developing reliable and ongoing renewable energy sources and the equipment, facilities, and raw materials necessary to support that production. Full deployment of these renewable power resources could provide a once-in-a-generation opportunity to support catalytic economic growth within the Salton Sea region and its historically disinvested communities.(2) The regions access to economic incentives must be improved to drive an inclusive high-road economic vision. If not proactively addressed, resource extraction can result in the region being less economically, environmentally, and socially well-off when its critical minerals and renewable energy are exported to benefit other areas of the state and nation. 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.(3) One impediment to an inclusive transition to a net-zero-emissions economy and realizing 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 valley regions have been legally assigned to regional planning and state program delivery areas that lie beyond significant geographic barriers. Most commonly, the County of Imperial has been linked with the 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.(4) 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 State Energy Resources Conservation and Development Commission, which recommended the designation of 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 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.(5) The Blue Ribbon Commission on Lithium Extraction in California 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 the County of 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.(6) To capture the full benefits of the Lithium Valley renewable energy development hub, the southeastern desert valleys need a definitive economic development designation and structure that supports efficient resource attraction and fosters economic relationships between business, labor, and community. The goal for such a designation and structure is to support this historically disinvested area to build local career pathways to high-quality jobs, a dynamic small business ecosystem, 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.(b) Therefore, it is the intent of the Legislature to authorize the establishment of the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys. These actions will increase the areas competitiveness in seeking funds and deploying resources by facilitating collaboration with state, federal, tribal, 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. Chapter 34.5 (commencing with Section 7599.105) is added to Division 7 of Title 1 of the Government Code, to read: CHAPTER 34.5. Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys 7599.105. This chapter shall be known, and may be cited, as the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys Act.7599.106. For purposes of this chapter, the following definitions apply:(a) Board means the board of directors set forth in Section 7599.108.(b) Entrepreneurial ecosystem means policies, structures, and approaches to investment that support economic activity and business enterprise throughout the business life cycle. Place-based entrepreneurial ecosystems refer to the strategic alignment of various public and private efforts, including, but not limited to, education and training, funding and finance, human capital, community culture, and regulatory frameworks.(c) Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys or empowerment zone means a zone authorized and established pursuant to this chapter.7599.107. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys may be established pursuant to subdivision (d).(2) The geographic boundaries of the zone may extend to the territories of the jurisdictions listed in subdivision (c), subject to the jurisdictions approval, as provided in subdivision (d).(b) (1) (A) The purpose of the empowerment zone is to cultivate and stimulate targeted investments by the public and private sectors in Californias southeastern desert region, which has historically been overlooked and left behind by the states existing economic planning and funding activities. (B) The empowerment zone will accomplish the goal described in this subdivision by facilitating the region to work collaboratively on strategically leveraging state, federal, and local government-provided tax incentives with grant, loan, and workforce training programs and services offered through public and private sector entities.(2) (A) Success of the empowerment zone shall be measured by the increased flow of public and private capital into the region, the participation of local residents and businesses in the benefits of those investments, and the expansion and innovation of a green energy industrial center.(B) The measurement of success of the empowerment zone described in this subdivision includes, but is not limited to, the development of the regions lithium extraction and processing capabilities, the development of related manufacturing, and an increased quality of life for the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm.(c) (1) Subject to the limitations and requirements of this chapter, the empowerment zone may include the land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys.(2) The maximum boundaries of the empowerment zone include each of the following jurisdictions and designated places:(A) All unincorporated areas of the County of Imperial, including the following census-designated places:(i) Bombay Beach.(ii) Desert Shores.(iii) Heber.(iv) Naval Air Facility El Centro.(v) Niland.(vi) Ocotillo.(vii) Palo Verde.(viii) Salton City.(ix) Salton Sea Beach.(x) Seeley.(xi) Winterhaven.(B) Unincorporated areas of the County of Riverside, which lie south of 33.90 degrees north and east of 116.25 degrees west. This includes the following census-designated places within the County of Riverside:(i) Desert Center.(ii) Indio Hills.(iii) Mecca.(iv) Mesa Verde.(v) North Shore.(vi) Oasis.(vii) Ripley.(viii) Thermal.(ix) Vista Santa Rosa.(C) The following incorporated jurisdictions in the County of Imperial:(i) The City of Blythe. (ii) The City of Brawley.(iii) The City of Calexico.(iv) The City of Calipatria.(v) The City of El Centro.(vi) The City of Holtville.(vii) The City of Imperial.(viii) The City of Westmorland. (D) The following incorporated jurisdictions in the County of Riverside:(i) Coachella.(ii) Indio.(d) (1) (A) (i) The Imperial County Board of Supervisors may adopt a resolution to initiate the establishment of the empowerment zone.(ii) The resolution shall state the countys support for the creation of the empowerment zone and commit to appointing two representatives to the board of directors within 10 business days.(iii) Following the adoption of the County of Imperials resolution, the legislative body for jurisdictions listed in subparagraph (C) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commit to appointing one representative to the board of directors within 10 business days.(B) (i) Following the adoption of the County of Imperials resolution pursuant to subparagraph (A), the Riverside County Board of Supervisors may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appoint two representatives to the board of directors within 10 business days.(ii) If the County of Riverside adopts a resolution, the legislative body for jurisdictions listed in subparagraph (D) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appointing one representative to the board of directors.(2) (A) To ensure the timely establishment of the empowerment zone, cities listed in subparagraphs (C) and (D) of paragraph (2) of subdivision (c) shall adopt the resolution within 45 business days of their respective county adopting their resolution.(B) Following the 45 days described in subparagraph (A), a jurisdiction shall not join the empowerment zone until the first anniversary of the full establishment of the empowerment zone, as prescribed in subdivision (e).(3) (A) The legislative body of a city or county listed in subdivision (c) may remove the land within its jurisdiction from the empowerment zone by adopting a resolution stating that it no longer wishes to participate. (B) The resolution ending participation in the empowerment zone shall identify a final date for inclusion in the empowerment zone, which shall be no later than 60 days from the adoption of the resolution.(C) Any benefits or incentives awarded before the adoption of a resolution removing the jurisdiction from the empowerment zone shall continue under the same terms and conditions as would have been applied if the jurisdiction were still in the empowerment zone for not fewer than two years. (e) The empowerment zone shall become a state-designated zone with full powers and authorities provided in this chapter when both of the following conditions are met:(1) The County of Imperial has adopted the initiating resolution pursuant to subparagraph (A) of paragraph (1) of subdivision (d).(2) The board of directors has been formed and a public meeting has been held.7599.108. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall be governed by a board of directors composed of representatives of stakeholder groups identified in subdivision (d).(2) The board shall exercise all of the powers of the empowerment zone, except as otherwise provided in this chapter.(b) (1) All stakeholder group representatives on the board of directors shall serve a three-year term and may be reappointed by their appointing body for up to two additional terms.(2) (A) In the initial round of appointing directors, the board shall use a lottery system to decide which directors will serve two-year and four-year terms.(B) The appointment approach described in this subdivision shall aim to stagger the turnover of board members so that no more than one-third of the directors leave at the same time.(3) (A) No representative for a public stakeholder entity shall retain their seat on the empowerment zone board of directors after ceasing to hold the position that qualifies them as an eligible representative for the board. That persons membership on the board shall thereafter be considered vacant.(B) (i) The board members eligibility from a private entity shall be determined by the board in consultation with the appointing entity if there is one. (ii) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(4) A vacancy on the board shall be filled for the unexpired term by the selection and appointment process used to appoint the director whose position has become vacant.(5) (A) A director who fails to attend at least 50 percent of the board meetings in any 12-month period is subject to removal from the board.(B) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(c) (1) (A) All directors shall be voting members of the board, except those directors appointed from stakeholder groups listed in paragraph (11) of subdivision (d) that represent a state or federal agency and paragraph (12) of subdivision (d) representing state and federal elected officials.(B) Individuals representing state and federal governmental entities on the board shall be nonvoting members.(2) (A) A majority of the voting directors shall constitute a quorum for the transaction of business and may act for the board.(B) Ex officio nonvoting members shall not be counted in establishing a quorum.(C) Vacancies shall not change the number of voting directors required to be in attendance to constitute a quorum.(D) Notwithstanding subparagraph (C), during the first 12 months following the establishment of the empowerment zone, a quorum shall consist of a majority of voting directors sitting on the board.(d) The membership of the board of directors shall comprise all of the following representatives who shall participate in meetings and serve as a liaison with their appointing entities and related organizations:(1) Two local government directors selected by each of the counties listed in subdivision (c) of Section 7599.107 and that have adopted a resolution expressing their support for participating in the empowerment zone.(2) One local government director selected by each incorporated city listed in subdivision (c) of Section 7599.107 that adopted a resolution expressing their support for participating in the empowerment zone.(3) Three directors selected by the Southern California Tribal Chairmens Association to represent tribal governments with lands in the empowerment zone. (4) (A) Three directors representing large private sector employers with facilities in the empowerment zone.(B) Each of the three largest employers shall select a representative to the board based on the number of employees and whether the business is in the energy, health, or manufacturing sector.(C) Employer size shall be based on data from the local workforce board and the boundaries of the empowerment zone at the time the director is selected.(5) Three directors from universities and laboratories with specialized expertise and knowledge of clean energy who shall, upon agreement by the Regents of the University of California, be nominated by the office of the President of the University of California and confirmed by the board.(6) (A) Four directors representing the five largest private sector organized labor organizations whose membership works in the empowerment zone.(B) The directors shall be selected by their organizations.(7) (A) Eight directors representing workforce development and public and private educational entities that serve residents and businesses in the empowerment zone. (B) The directors shall be selected as follows:(i) The Imperial County Workforce Development Board and the Riverside County Workforce Development Board shall each designate one director responsible for participating in meetings and serving as a liaison between the boards and their respective appointing bodies.(ii) The California State University system and the office of the Chancellor of the California Community Colleges shall each select two directors.(iii) Two additional directors shall be nominated by the Southern California Association of Governments and confirmed by the board.(8) (A) Three directors representing foundations with specialized expertise and knowledge of green energy, public health, or economic development.(B) The foundation representatives shall be nominated by the Southern California Association of Governments and confirmed by the board. (9) (A) Three directors representing community-based nonprofit organizations with a mission to serve disinvested lower income communities within the empowerment zone.(B) The Governor shall appoint the directors.(10) (A) Two directors representing the public interest.(B) The Governor shall appoint the directors from individuals whose residence and employment are within the empowerment zone. (11) (A) Six directors representing state government, from the following state governmental agencies:(i) The Governors Office of Business and Economic Development.(ii) The Governors Office of Land Use and Climate Innovation.(iii) The Natural Resources Agency. (iv) The Transportation Agency. (v) The California Workforce Development Board.(vi) The State Energy Resources Conservation and Development Commission.(B) Each state government director may designate a representative to serve on the board.(12) Every Member of the California Legislature and of the United States Congress representing geographic areas within the empowerment zone shall be ex officio members of the board of directors.(e) (1) The empowerment zone shall have an executive committee composed of the chair and two deputy chairs selected pursuant to paragraph (2) and up to eight additional members of the board of directors, which shall be selected by a majority vote of the board of directors.(2) (A) The executive committee may carry on the administrative and executive functions of the board between full meetings.(B) (i) Each executive committee member serves a two-year term.(ii) Although individuals may serve on the executive committee more than once, they may not serve consecutive terms.(C) The chair and deputy chairs shall be chosen from among the following:(i) One member shall be a Member of the Legislature who represents one or more of the cities or a county listed in subdivision (c) of Section 7599.107.(ii) One member shall be a representative from a local agency in a city or county listed in subdivision (c) of Section 7599.107 that serves an area within the empowerment zone.(iii) One member shall be a representative whose residence and place of employment is within the empowerment zone.(3) The board may elect other officers as it deems necessary from among its members.(4) The provisions for the executive committee set forth in this chapter shall not be construed to limit the board or the executive committee from setting up any other committees or groups that it may see fit.(f) (1) The board shall meet at least six times per year.(2) Additional meetings may be called at the discretion of the chair or of a majority of the executive committee.(g) (1) The board of directors members shall serve without compensation.(2) With the chairs prior approval, each board member shall receive the actual and necessary travel-related expenses incurred in attending board meetings and other events.(h) Each member of the board of directors shall, upon identifying a conflict of interest, or a potential conflict of interest, regarding a matter before the board of directors of the empowerment zone, immediately and before consideration of the matter, do all of the following: (1) (A) Provide written notice to the chair regarding the interest that gives rise to the conflict of interest or potential conflict of interest. (B) In the case of the chair, written notice shall be given to one of the deputy chairs.(2) Recuse themselves from discussing or voting on the matter.(3) Leave the meeting room until after discussion, vote, and any other consideration of disposition of the matter is concluded. (i) A board of directors member shall not use the name of the empowerment zone on any letterhead, business code, or identification badge unless the person has been authorized to do so by the board of directors. 7599.109. (a) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall have all of the following powers:(1) To establish and maintain such offices as are judged best to facilitate the accomplishment of the empowerment zones purposes.(2) To contract with any person, firm, association, or corporation, or to contract for any other types of services judged by the board to be necessary or convenient for carrying out the purposes of the empowerment zone.(3) Receive and accept from any source, including, but not limited to, the federal government, the state, or any agency thereof, loans, contributions, or grants, in money, property, labor, or other things of value in aid of the operations and activities of the empowerment zone.(b) (1) The executive director shall manage and conduct the empowerment zones business and affairs, subject to the boards direction.(2) The board may assign to the executive director, by resolution, those duties generally necessary or convenient to carry out its powers and purposes under this chapter.7599.109.1. The empowerment zone may do all of the following:(a) Identify projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of Californias southeastern desert valleys, especially those acts that leverage federal, state, local, and private sector resources in a coordinated effort to support the development and equitable transition to a clean energy economy.(b) (1) Prepare, maintain, and regularly review and revise a regional economic plan that stimulates targeted public and private investments that support transformative economic growth that brings family-sustaining jobs and real economic opportunities to Californias most underserved residents. (2) The plan shall be a blueprint that reflects, integrates, leverages, amplifies, and fills program and service gaps in economic and workforce development activities within the empowerment zone.(3) The purpose of the plan is to facilitate and supplement regional activities, not supplant or override the work of other governmental entities.(c) Prepare, publish, or assist in making or publishing studies or investigations of the regions resources, and of existing or emerging problems related to the inclusive economic growth and development or prosperity of the region, or any part thereof.(d) Work with Members of the state Legislature, state departments, and officials to gain state support for projects identified by the zone as critical to the regions development and equitable transition to a clean energy economy.(e) Enhance the entrepreneurial ecosystem to support the regions development and equitable transition to a clean energy economy. This may include facilitating the establishment of one or more business service centers to facilitate access to business development incentive programs to benefit residents of disadvantaged communities, tribal members, small businesses, and other entrepreneurs.(f) Partner with the University of California, the California State University, community colleges, and the states other research and educational institutions, as well as private foundations, to provide guidance, advice, and encouragement in support of studies of particular interest and importance to the energy and manufacturing industries and the quality of life in the southeastern desert valleys.(g) Work with members of the states congressional delegation and federal officials, including the Border Governors Association, to gain federal support for projects identified by the empowerment zone as critical to the region. (h) Review state and federal policies and regulations to ensure they are fair and appropriate for the businesses, workers, and residents of the economic region.(i) Make recommendations to the Governor to improve the regions economic well-being and residents quality of life.(j) Create and maintain an internet website to facilitate the goals and projects of the empowerment zone.(k) Take other actions that support the regions development into a more diverse economy, including a clean power industrial center that benefits the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm.7599.109.2. (a) (1) Beginning on January 1, 2027, the board shall submit an annual progress report to the Legislature and the Governors Office of Business and Economic Development. (2) The annual progress report shall cover empowerment zone activities and their progress meeting reporting metrics during the prior fiscal year. (3) The scope of the first report shall include empowerment zone activities from January 1, 2026, through June 30, 2026.(4) The report shall be submitted in compliance with Section 9795.(b) (1) The board shall appoint an advisory committee to develop proposed annual reporting metrics. (2) The advisory committee shall include board members and stakeholders who live and work in the empowerment zone. (3) The board shall review the proposed metrics and adopt final reporting metrics on or before January 1, 2027. (4) The reporting metrics shall include, but not be limited to, all of the following:(A) Progress on developing and implementing the regional roadmap for economic recovery and inclusive transition.(B) (i) The number, size, and industry sector of businesses assisted through empowerment zone activities, including the type of services provided.(ii) The report shall include information voluntarily provided by the businesses that received the assistance.(iii) Providing the information shall not be a requirement for obtaining the assistance.(C) (i) The number, type of services, and demographic profile of individuals served by empowerment zone activities.(ii) The report shall include information voluntarily provided by the individuals who received the services.(iii) Providing the information shall not be a requirement for obtaining the services.(D) The number of jobs gained and lost in key industry sectors of the regional economy in the empowerment zone.(E) The average wage of the jobs gained in each economic sector.(F) The number and types of grants, other funding, and incentives brought to the region through empowerment zone activities.(G) The type and amount of apprenticeship and preapprenticeship positions facilitated by empowerment zone activities.(H) The type and amount of workforce training conducted in the zone, by whom it was provided, and the amount of capital investment associated with providing that training.(c) Commencing on January 1, 2027, and on or before January 1 of each year thereafter, the empowerment zone shall post the report described in subdivision (a) on its internet website and submit a letter to the Legislature informing the Legislature that the report has been posted.7599.109.3. This chapter 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 economic development in the Southeastern Desert Valleys, and the state and national interests in fast tracking renewable energy generation and extraction of critical minerals within the region. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. (a) The Legislature finds and declares all of the following:(1) A sustained effort is underway to support the states equitable transition to a net-zero-emissions economy. This includes developing reliable and ongoing renewable energy sources and the equipment, facilities, and raw materials necessary to support that production. Full deployment of these renewable power resources could provide a once-in-a-generation opportunity to support catalytic economic growth within the Salton Sea region and its historically disinvested communities.(2) The regions access to economic incentives must be improved to drive an inclusive high-road economic vision. If not proactively addressed, resource extraction can result in the region being less economically, environmentally, and socially well-off when its critical minerals and renewable energy are exported to benefit other areas of the state and nation. 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.(3) One impediment to an inclusive transition to a net-zero-emissions economy and realizing 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 valley regions have been legally assigned to regional planning and state program delivery areas that lie beyond significant geographic barriers. Most commonly, the County of Imperial has been linked with the 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.(4) 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 State Energy Resources Conservation and Development Commission, which recommended the designation of 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 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.(5) The Blue Ribbon Commission on Lithium Extraction in California 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 the County of 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.(6) To capture the full benefits of the Lithium Valley renewable energy development hub, the southeastern desert valleys need a definitive economic development designation and structure that supports efficient resource attraction and fosters economic relationships between business, labor, and community. The goal for such a designation and structure is to support this historically disinvested area to build local career pathways to high-quality jobs, a dynamic small business ecosystem, 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.(b) Therefore, it is the intent of the Legislature to authorize the establishment of the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys. These actions will increase the areas competitiveness in seeking funds and deploying resources by facilitating collaboration with state, federal, tribal, 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. SECTION 1. (a) The Legislature finds and declares all of the following:(1) A sustained effort is underway to support the states equitable transition to a net-zero-emissions economy. This includes developing reliable and ongoing renewable energy sources and the equipment, facilities, and raw materials necessary to support that production. Full deployment of these renewable power resources could provide a once-in-a-generation opportunity to support catalytic economic growth within the Salton Sea region and its historically disinvested communities.(2) The regions access to economic incentives must be improved to drive an inclusive high-road economic vision. If not proactively addressed, resource extraction can result in the region being less economically, environmentally, and socially well-off when its critical minerals and renewable energy are exported to benefit other areas of the state and nation. 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.(3) One impediment to an inclusive transition to a net-zero-emissions economy and realizing 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 valley regions have been legally assigned to regional planning and state program delivery areas that lie beyond significant geographic barriers. Most commonly, the County of Imperial has been linked with the 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.(4) 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 State Energy Resources Conservation and Development Commission, which recommended the designation of 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 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.(5) The Blue Ribbon Commission on Lithium Extraction in California 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 the County of 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.(6) To capture the full benefits of the Lithium Valley renewable energy development hub, the southeastern desert valleys need a definitive economic development designation and structure that supports efficient resource attraction and fosters economic relationships between business, labor, and community. The goal for such a designation and structure is to support this historically disinvested area to build local career pathways to high-quality jobs, a dynamic small business ecosystem, 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.(b) Therefore, it is the intent of the Legislature to authorize the establishment of the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys. These actions will increase the areas competitiveness in seeking funds and deploying resources by facilitating collaboration with state, federal, tribal, 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. SECTION 1. (a) The Legislature finds and declares all of the following: ### SECTION 1. (1) A sustained effort is underway to support the states equitable transition to a net-zero-emissions economy. This includes developing reliable and ongoing renewable energy sources and the equipment, facilities, and raw materials necessary to support that production. Full deployment of these renewable power resources could provide a once-in-a-generation opportunity to support catalytic economic growth within the Salton Sea region and its historically disinvested communities. (2) The regions access to economic incentives must be improved to drive an inclusive high-road economic vision. If not proactively addressed, resource extraction can result in the region being less economically, environmentally, and socially well-off when its critical minerals and renewable energy are exported to benefit other areas of the state and nation. 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. (3) One impediment to an inclusive transition to a net-zero-emissions economy and realizing 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 valley regions have been legally assigned to regional planning and state program delivery areas that lie beyond significant geographic barriers. Most commonly, the County of Imperial has been linked with the 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. (4) 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 State Energy Resources Conservation and Development Commission, which recommended the designation of 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 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. (5) The Blue Ribbon Commission on Lithium Extraction in California 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 the County of 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. (6) To capture the full benefits of the Lithium Valley renewable energy development hub, the southeastern desert valleys need a definitive economic development designation and structure that supports efficient resource attraction and fosters economic relationships between business, labor, and community. The goal for such a designation and structure is to support this historically disinvested area to build local career pathways to high-quality jobs, a dynamic small business ecosystem, 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. (b) Therefore, it is the intent of the Legislature to authorize the establishment of the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys. These actions will increase the areas competitiveness in seeking funds and deploying resources by facilitating collaboration with state, federal, tribal, 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. Chapter 34.5 (commencing with Section 7599.105) is added to Division 7 of Title 1 of the Government Code, to read: CHAPTER 34.5. Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys 7599.105. This chapter shall be known, and may be cited, as the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys Act.7599.106. For purposes of this chapter, the following definitions apply:(a) Board means the board of directors set forth in Section 7599.108.(b) Entrepreneurial ecosystem means policies, structures, and approaches to investment that support economic activity and business enterprise throughout the business life cycle. Place-based entrepreneurial ecosystems refer to the strategic alignment of various public and private efforts, including, but not limited to, education and training, funding and finance, human capital, community culture, and regulatory frameworks.(c) Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys or empowerment zone means a zone authorized and established pursuant to this chapter.7599.107. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys may be established pursuant to subdivision (d).(2) The geographic boundaries of the zone may extend to the territories of the jurisdictions listed in subdivision (c), subject to the jurisdictions approval, as provided in subdivision (d).(b) (1) (A) The purpose of the empowerment zone is to cultivate and stimulate targeted investments by the public and private sectors in Californias southeastern desert region, which has historically been overlooked and left behind by the states existing economic planning and funding activities. (B) The empowerment zone will accomplish the goal described in this subdivision by facilitating the region to work collaboratively on strategically leveraging state, federal, and local government-provided tax incentives with grant, loan, and workforce training programs and services offered through public and private sector entities.(2) (A) Success of the empowerment zone shall be measured by the increased flow of public and private capital into the region, the participation of local residents and businesses in the benefits of those investments, and the expansion and innovation of a green energy industrial center.(B) The measurement of success of the empowerment zone described in this subdivision includes, but is not limited to, the development of the regions lithium extraction and processing capabilities, the development of related manufacturing, and an increased quality of life for the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm.(c) (1) Subject to the limitations and requirements of this chapter, the empowerment zone may include the land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys.(2) The maximum boundaries of the empowerment zone include each of the following jurisdictions and designated places:(A) All unincorporated areas of the County of Imperial, including the following census-designated places:(i) Bombay Beach.(ii) Desert Shores.(iii) Heber.(iv) Naval Air Facility El Centro.(v) Niland.(vi) Ocotillo.(vii) Palo Verde.(viii) Salton City.(ix) Salton Sea Beach.(x) Seeley.(xi) Winterhaven.(B) Unincorporated areas of the County of Riverside, which lie south of 33.90 degrees north and east of 116.25 degrees west. This includes the following census-designated places within the County of Riverside:(i) Desert Center.(ii) Indio Hills.(iii) Mecca.(iv) Mesa Verde.(v) North Shore.(vi) Oasis.(vii) Ripley.(viii) Thermal.(ix) Vista Santa Rosa.(C) The following incorporated jurisdictions in the County of Imperial:(i) The City of Blythe. (ii) The City of Brawley.(iii) The City of Calexico.(iv) The City of Calipatria.(v) The City of El Centro.(vi) The City of Holtville.(vii) The City of Imperial.(viii) The City of Westmorland. (D) The following incorporated jurisdictions in the County of Riverside:(i) Coachella.(ii) Indio.(d) (1) (A) (i) The Imperial County Board of Supervisors may adopt a resolution to initiate the establishment of the empowerment zone.(ii) The resolution shall state the countys support for the creation of the empowerment zone and commit to appointing two representatives to the board of directors within 10 business days.(iii) Following the adoption of the County of Imperials resolution, the legislative body for jurisdictions listed in subparagraph (C) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commit to appointing one representative to the board of directors within 10 business days.(B) (i) Following the adoption of the County of Imperials resolution pursuant to subparagraph (A), the Riverside County Board of Supervisors may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appoint two representatives to the board of directors within 10 business days.(ii) If the County of Riverside adopts a resolution, the legislative body for jurisdictions listed in subparagraph (D) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appointing one representative to the board of directors.(2) (A) To ensure the timely establishment of the empowerment zone, cities listed in subparagraphs (C) and (D) of paragraph (2) of subdivision (c) shall adopt the resolution within 45 business days of their respective county adopting their resolution.(B) Following the 45 days described in subparagraph (A), a jurisdiction shall not join the empowerment zone until the first anniversary of the full establishment of the empowerment zone, as prescribed in subdivision (e).(3) (A) The legislative body of a city or county listed in subdivision (c) may remove the land within its jurisdiction from the empowerment zone by adopting a resolution stating that it no longer wishes to participate. (B) The resolution ending participation in the empowerment zone shall identify a final date for inclusion in the empowerment zone, which shall be no later than 60 days from the adoption of the resolution.(C) Any benefits or incentives awarded before the adoption of a resolution removing the jurisdiction from the empowerment zone shall continue under the same terms and conditions as would have been applied if the jurisdiction were still in the empowerment zone for not fewer than two years. (e) The empowerment zone shall become a state-designated zone with full powers and authorities provided in this chapter when both of the following conditions are met:(1) The County of Imperial has adopted the initiating resolution pursuant to subparagraph (A) of paragraph (1) of subdivision (d).(2) The board of directors has been formed and a public meeting has been held.7599.108. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall be governed by a board of directors composed of representatives of stakeholder groups identified in subdivision (d).(2) The board shall exercise all of the powers of the empowerment zone, except as otherwise provided in this chapter.(b) (1) All stakeholder group representatives on the board of directors shall serve a three-year term and may be reappointed by their appointing body for up to two additional terms.(2) (A) In the initial round of appointing directors, the board shall use a lottery system to decide which directors will serve two-year and four-year terms.(B) The appointment approach described in this subdivision shall aim to stagger the turnover of board members so that no more than one-third of the directors leave at the same time.(3) (A) No representative for a public stakeholder entity shall retain their seat on the empowerment zone board of directors after ceasing to hold the position that qualifies them as an eligible representative for the board. That persons membership on the board shall thereafter be considered vacant.(B) (i) The board members eligibility from a private entity shall be determined by the board in consultation with the appointing entity if there is one. (ii) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(4) A vacancy on the board shall be filled for the unexpired term by the selection and appointment process used to appoint the director whose position has become vacant.(5) (A) A director who fails to attend at least 50 percent of the board meetings in any 12-month period is subject to removal from the board.(B) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(c) (1) (A) All directors shall be voting members of the board, except those directors appointed from stakeholder groups listed in paragraph (11) of subdivision (d) that represent a state or federal agency and paragraph (12) of subdivision (d) representing state and federal elected officials.(B) Individuals representing state and federal governmental entities on the board shall be nonvoting members.(2) (A) A majority of the voting directors shall constitute a quorum for the transaction of business and may act for the board.(B) Ex officio nonvoting members shall not be counted in establishing a quorum.(C) Vacancies shall not change the number of voting directors required to be in attendance to constitute a quorum.(D) Notwithstanding subparagraph (C), during the first 12 months following the establishment of the empowerment zone, a quorum shall consist of a majority of voting directors sitting on the board.(d) The membership of the board of directors shall comprise all of the following representatives who shall participate in meetings and serve as a liaison with their appointing entities and related organizations:(1) Two local government directors selected by each of the counties listed in subdivision (c) of Section 7599.107 and that have adopted a resolution expressing their support for participating in the empowerment zone.(2) One local government director selected by each incorporated city listed in subdivision (c) of Section 7599.107 that adopted a resolution expressing their support for participating in the empowerment zone.(3) Three directors selected by the Southern California Tribal Chairmens Association to represent tribal governments with lands in the empowerment zone. (4) (A) Three directors representing large private sector employers with facilities in the empowerment zone.(B) Each of the three largest employers shall select a representative to the board based on the number of employees and whether the business is in the energy, health, or manufacturing sector.(C) Employer size shall be based on data from the local workforce board and the boundaries of the empowerment zone at the time the director is selected.(5) Three directors from universities and laboratories with specialized expertise and knowledge of clean energy who shall, upon agreement by the Regents of the University of California, be nominated by the office of the President of the University of California and confirmed by the board.(6) (A) Four directors representing the five largest private sector organized labor organizations whose membership works in the empowerment zone.(B) The directors shall be selected by their organizations.(7) (A) Eight directors representing workforce development and public and private educational entities that serve residents and businesses in the empowerment zone. (B) The directors shall be selected as follows:(i) The Imperial County Workforce Development Board and the Riverside County Workforce Development Board shall each designate one director responsible for participating in meetings and serving as a liaison between the boards and their respective appointing bodies.(ii) The California State University system and the office of the Chancellor of the California Community Colleges shall each select two directors.(iii) Two additional directors shall be nominated by the Southern California Association of Governments and confirmed by the board.(8) (A) Three directors representing foundations with specialized expertise and knowledge of green energy, public health, or economic development.(B) The foundation representatives shall be nominated by the Southern California Association of Governments and confirmed by the board. (9) (A) Three directors representing community-based nonprofit organizations with a mission to serve disinvested lower income communities within the empowerment zone.(B) The Governor shall appoint the directors.(10) (A) Two directors representing the public interest.(B) The Governor shall appoint the directors from individuals whose residence and employment are within the empowerment zone. (11) (A) Six directors representing state government, from the following state governmental agencies:(i) The Governors Office of Business and Economic Development.(ii) The Governors Office of Land Use and Climate Innovation.(iii) The Natural Resources Agency. (iv) The Transportation Agency. (v) The California Workforce Development Board.(vi) The State Energy Resources Conservation and Development Commission.(B) Each state government director may designate a representative to serve on the board.(12) Every Member of the California Legislature and of the United States Congress representing geographic areas within the empowerment zone shall be ex officio members of the board of directors.(e) (1) The empowerment zone shall have an executive committee composed of the chair and two deputy chairs selected pursuant to paragraph (2) and up to eight additional members of the board of directors, which shall be selected by a majority vote of the board of directors.(2) (A) The executive committee may carry on the administrative and executive functions of the board between full meetings.(B) (i) Each executive committee member serves a two-year term.(ii) Although individuals may serve on the executive committee more than once, they may not serve consecutive terms.(C) The chair and deputy chairs shall be chosen from among the following:(i) One member shall be a Member of the Legislature who represents one or more of the cities or a county listed in subdivision (c) of Section 7599.107.(ii) One member shall be a representative from a local agency in a city or county listed in subdivision (c) of Section 7599.107 that serves an area within the empowerment zone.(iii) One member shall be a representative whose residence and place of employment is within the empowerment zone.(3) The board may elect other officers as it deems necessary from among its members.(4) The provisions for the executive committee set forth in this chapter shall not be construed to limit the board or the executive committee from setting up any other committees or groups that it may see fit.(f) (1) The board shall meet at least six times per year.(2) Additional meetings may be called at the discretion of the chair or of a majority of the executive committee.(g) (1) The board of directors members shall serve without compensation.(2) With the chairs prior approval, each board member shall receive the actual and necessary travel-related expenses incurred in attending board meetings and other events.(h) Each member of the board of directors shall, upon identifying a conflict of interest, or a potential conflict of interest, regarding a matter before the board of directors of the empowerment zone, immediately and before consideration of the matter, do all of the following: (1) (A) Provide written notice to the chair regarding the interest that gives rise to the conflict of interest or potential conflict of interest. (B) In the case of the chair, written notice shall be given to one of the deputy chairs.(2) Recuse themselves from discussing or voting on the matter.(3) Leave the meeting room until after discussion, vote, and any other consideration of disposition of the matter is concluded. (i) A board of directors member shall not use the name of the empowerment zone on any letterhead, business code, or identification badge unless the person has been authorized to do so by the board of directors. 7599.109. (a) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall have all of the following powers:(1) To establish and maintain such offices as are judged best to facilitate the accomplishment of the empowerment zones purposes.(2) To contract with any person, firm, association, or corporation, or to contract for any other types of services judged by the board to be necessary or convenient for carrying out the purposes of the empowerment zone.(3) Receive and accept from any source, including, but not limited to, the federal government, the state, or any agency thereof, loans, contributions, or grants, in money, property, labor, or other things of value in aid of the operations and activities of the empowerment zone.(b) (1) The executive director shall manage and conduct the empowerment zones business and affairs, subject to the boards direction.(2) The board may assign to the executive director, by resolution, those duties generally necessary or convenient to carry out its powers and purposes under this chapter.7599.109.1. The empowerment zone may do all of the following:(a) Identify projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of Californias southeastern desert valleys, especially those acts that leverage federal, state, local, and private sector resources in a coordinated effort to support the development and equitable transition to a clean energy economy.(b) (1) Prepare, maintain, and regularly review and revise a regional economic plan that stimulates targeted public and private investments that support transformative economic growth that brings family-sustaining jobs and real economic opportunities to Californias most underserved residents. (2) The plan shall be a blueprint that reflects, integrates, leverages, amplifies, and fills program and service gaps in economic and workforce development activities within the empowerment zone.(3) The purpose of the plan is to facilitate and supplement regional activities, not supplant or override the work of other governmental entities.(c) Prepare, publish, or assist in making or publishing studies or investigations of the regions resources, and of existing or emerging problems related to the inclusive economic growth and development or prosperity of the region, or any part thereof.(d) Work with Members of the state Legislature, state departments, and officials to gain state support for projects identified by the zone as critical to the regions development and equitable transition to a clean energy economy.(e) Enhance the entrepreneurial ecosystem to support the regions development and equitable transition to a clean energy economy. This may include facilitating the establishment of one or more business service centers to facilitate access to business development incentive programs to benefit residents of disadvantaged communities, tribal members, small businesses, and other entrepreneurs.(f) Partner with the University of California, the California State University, community colleges, and the states other research and educational institutions, as well as private foundations, to provide guidance, advice, and encouragement in support of studies of particular interest and importance to the energy and manufacturing industries and the quality of life in the southeastern desert valleys.(g) Work with members of the states congressional delegation and federal officials, including the Border Governors Association, to gain federal support for projects identified by the empowerment zone as critical to the region. (h) Review state and federal policies and regulations to ensure they are fair and appropriate for the businesses, workers, and residents of the economic region.(i) Make recommendations to the Governor to improve the regions economic well-being and residents quality of life.(j) Create and maintain an internet website to facilitate the goals and projects of the empowerment zone.(k) Take other actions that support the regions development into a more diverse economy, including a clean power industrial center that benefits the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm.7599.109.2. (a) (1) Beginning on January 1, 2027, the board shall submit an annual progress report to the Legislature and the Governors Office of Business and Economic Development. (2) The annual progress report shall cover empowerment zone activities and their progress meeting reporting metrics during the prior fiscal year. (3) The scope of the first report shall include empowerment zone activities from January 1, 2026, through June 30, 2026.(4) The report shall be submitted in compliance with Section 9795.(b) (1) The board shall appoint an advisory committee to develop proposed annual reporting metrics. (2) The advisory committee shall include board members and stakeholders who live and work in the empowerment zone. (3) The board shall review the proposed metrics and adopt final reporting metrics on or before January 1, 2027. (4) The reporting metrics shall include, but not be limited to, all of the following:(A) Progress on developing and implementing the regional roadmap for economic recovery and inclusive transition.(B) (i) The number, size, and industry sector of businesses assisted through empowerment zone activities, including the type of services provided.(ii) The report shall include information voluntarily provided by the businesses that received the assistance.(iii) Providing the information shall not be a requirement for obtaining the assistance.(C) (i) The number, type of services, and demographic profile of individuals served by empowerment zone activities.(ii) The report shall include information voluntarily provided by the individuals who received the services.(iii) Providing the information shall not be a requirement for obtaining the services.(D) The number of jobs gained and lost in key industry sectors of the regional economy in the empowerment zone.(E) The average wage of the jobs gained in each economic sector.(F) The number and types of grants, other funding, and incentives brought to the region through empowerment zone activities.(G) The type and amount of apprenticeship and preapprenticeship positions facilitated by empowerment zone activities.(H) The type and amount of workforce training conducted in the zone, by whom it was provided, and the amount of capital investment associated with providing that training.(c) Commencing on January 1, 2027, and on or before January 1 of each year thereafter, the empowerment zone shall post the report described in subdivision (a) on its internet website and submit a letter to the Legislature informing the Legislature that the report has been posted.7599.109.3. This chapter shall remain in effect only until January 1, 2035, and as of that date is repealed. SEC. 2. Chapter 34.5 (commencing with Section 7599.105) is added to Division 7 of Title 1 of the Government Code, to read: ### SEC. 2. CHAPTER 34.5. Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys 7599.105. This chapter shall be known, and may be cited, as the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys Act.7599.106. For purposes of this chapter, the following definitions apply:(a) Board means the board of directors set forth in Section 7599.108.(b) Entrepreneurial ecosystem means policies, structures, and approaches to investment that support economic activity and business enterprise throughout the business life cycle. Place-based entrepreneurial ecosystems refer to the strategic alignment of various public and private efforts, including, but not limited to, education and training, funding and finance, human capital, community culture, and regulatory frameworks.(c) Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys or empowerment zone means a zone authorized and established pursuant to this chapter.7599.107. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys may be established pursuant to subdivision (d).(2) The geographic boundaries of the zone may extend to the territories of the jurisdictions listed in subdivision (c), subject to the jurisdictions approval, as provided in subdivision (d).(b) (1) (A) The purpose of the empowerment zone is to cultivate and stimulate targeted investments by the public and private sectors in Californias southeastern desert region, which has historically been overlooked and left behind by the states existing economic planning and funding activities. (B) The empowerment zone will accomplish the goal described in this subdivision by facilitating the region to work collaboratively on strategically leveraging state, federal, and local government-provided tax incentives with grant, loan, and workforce training programs and services offered through public and private sector entities.(2) (A) Success of the empowerment zone shall be measured by the increased flow of public and private capital into the region, the participation of local residents and businesses in the benefits of those investments, and the expansion and innovation of a green energy industrial center.(B) The measurement of success of the empowerment zone described in this subdivision includes, but is not limited to, the development of the regions lithium extraction and processing capabilities, the development of related manufacturing, and an increased quality of life for the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm.(c) (1) Subject to the limitations and requirements of this chapter, the empowerment zone may include the land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys.(2) The maximum boundaries of the empowerment zone include each of the following jurisdictions and designated places:(A) All unincorporated areas of the County of Imperial, including the following census-designated places:(i) Bombay Beach.(ii) Desert Shores.(iii) Heber.(iv) Naval Air Facility El Centro.(v) Niland.(vi) Ocotillo.(vii) Palo Verde.(viii) Salton City.(ix) Salton Sea Beach.(x) Seeley.(xi) Winterhaven.(B) Unincorporated areas of the County of Riverside, which lie south of 33.90 degrees north and east of 116.25 degrees west. This includes the following census-designated places within the County of Riverside:(i) Desert Center.(ii) Indio Hills.(iii) Mecca.(iv) Mesa Verde.(v) North Shore.(vi) Oasis.(vii) Ripley.(viii) Thermal.(ix) Vista Santa Rosa.(C) The following incorporated jurisdictions in the County of Imperial:(i) The City of Blythe. (ii) The City of Brawley.(iii) The City of Calexico.(iv) The City of Calipatria.(v) The City of El Centro.(vi) The City of Holtville.(vii) The City of Imperial.(viii) The City of Westmorland. (D) The following incorporated jurisdictions in the County of Riverside:(i) Coachella.(ii) Indio.(d) (1) (A) (i) The Imperial County Board of Supervisors may adopt a resolution to initiate the establishment of the empowerment zone.(ii) The resolution shall state the countys support for the creation of the empowerment zone and commit to appointing two representatives to the board of directors within 10 business days.(iii) Following the adoption of the County of Imperials resolution, the legislative body for jurisdictions listed in subparagraph (C) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commit to appointing one representative to the board of directors within 10 business days.(B) (i) Following the adoption of the County of Imperials resolution pursuant to subparagraph (A), the Riverside County Board of Supervisors may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appoint two representatives to the board of directors within 10 business days.(ii) If the County of Riverside adopts a resolution, the legislative body for jurisdictions listed in subparagraph (D) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appointing one representative to the board of directors.(2) (A) To ensure the timely establishment of the empowerment zone, cities listed in subparagraphs (C) and (D) of paragraph (2) of subdivision (c) shall adopt the resolution within 45 business days of their respective county adopting their resolution.(B) Following the 45 days described in subparagraph (A), a jurisdiction shall not join the empowerment zone until the first anniversary of the full establishment of the empowerment zone, as prescribed in subdivision (e).(3) (A) The legislative body of a city or county listed in subdivision (c) may remove the land within its jurisdiction from the empowerment zone by adopting a resolution stating that it no longer wishes to participate. (B) The resolution ending participation in the empowerment zone shall identify a final date for inclusion in the empowerment zone, which shall be no later than 60 days from the adoption of the resolution.(C) Any benefits or incentives awarded before the adoption of a resolution removing the jurisdiction from the empowerment zone shall continue under the same terms and conditions as would have been applied if the jurisdiction were still in the empowerment zone for not fewer than two years. (e) The empowerment zone shall become a state-designated zone with full powers and authorities provided in this chapter when both of the following conditions are met:(1) The County of Imperial has adopted the initiating resolution pursuant to subparagraph (A) of paragraph (1) of subdivision (d).(2) The board of directors has been formed and a public meeting has been held.7599.108. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall be governed by a board of directors composed of representatives of stakeholder groups identified in subdivision (d).(2) The board shall exercise all of the powers of the empowerment zone, except as otherwise provided in this chapter.(b) (1) All stakeholder group representatives on the board of directors shall serve a three-year term and may be reappointed by their appointing body for up to two additional terms.(2) (A) In the initial round of appointing directors, the board shall use a lottery system to decide which directors will serve two-year and four-year terms.(B) The appointment approach described in this subdivision shall aim to stagger the turnover of board members so that no more than one-third of the directors leave at the same time.(3) (A) No representative for a public stakeholder entity shall retain their seat on the empowerment zone board of directors after ceasing to hold the position that qualifies them as an eligible representative for the board. That persons membership on the board shall thereafter be considered vacant.(B) (i) The board members eligibility from a private entity shall be determined by the board in consultation with the appointing entity if there is one. (ii) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(4) A vacancy on the board shall be filled for the unexpired term by the selection and appointment process used to appoint the director whose position has become vacant.(5) (A) A director who fails to attend at least 50 percent of the board meetings in any 12-month period is subject to removal from the board.(B) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(c) (1) (A) All directors shall be voting members of the board, except those directors appointed from stakeholder groups listed in paragraph (11) of subdivision (d) that represent a state or federal agency and paragraph (12) of subdivision (d) representing state and federal elected officials.(B) Individuals representing state and federal governmental entities on the board shall be nonvoting members.(2) (A) A majority of the voting directors shall constitute a quorum for the transaction of business and may act for the board.(B) Ex officio nonvoting members shall not be counted in establishing a quorum.(C) Vacancies shall not change the number of voting directors required to be in attendance to constitute a quorum.(D) Notwithstanding subparagraph (C), during the first 12 months following the establishment of the empowerment zone, a quorum shall consist of a majority of voting directors sitting on the board.(d) The membership of the board of directors shall comprise all of the following representatives who shall participate in meetings and serve as a liaison with their appointing entities and related organizations:(1) Two local government directors selected by each of the counties listed in subdivision (c) of Section 7599.107 and that have adopted a resolution expressing their support for participating in the empowerment zone.(2) One local government director selected by each incorporated city listed in subdivision (c) of Section 7599.107 that adopted a resolution expressing their support for participating in the empowerment zone.(3) Three directors selected by the Southern California Tribal Chairmens Association to represent tribal governments with lands in the empowerment zone. (4) (A) Three directors representing large private sector employers with facilities in the empowerment zone.(B) Each of the three largest employers shall select a representative to the board based on the number of employees and whether the business is in the energy, health, or manufacturing sector.(C) Employer size shall be based on data from the local workforce board and the boundaries of the empowerment zone at the time the director is selected.(5) Three directors from universities and laboratories with specialized expertise and knowledge of clean energy who shall, upon agreement by the Regents of the University of California, be nominated by the office of the President of the University of California and confirmed by the board.(6) (A) Four directors representing the five largest private sector organized labor organizations whose membership works in the empowerment zone.(B) The directors shall be selected by their organizations.(7) (A) Eight directors representing workforce development and public and private educational entities that serve residents and businesses in the empowerment zone. (B) The directors shall be selected as follows:(i) The Imperial County Workforce Development Board and the Riverside County Workforce Development Board shall each designate one director responsible for participating in meetings and serving as a liaison between the boards and their respective appointing bodies.(ii) The California State University system and the office of the Chancellor of the California Community Colleges shall each select two directors.(iii) Two additional directors shall be nominated by the Southern California Association of Governments and confirmed by the board.(8) (A) Three directors representing foundations with specialized expertise and knowledge of green energy, public health, or economic development.(B) The foundation representatives shall be nominated by the Southern California Association of Governments and confirmed by the board. (9) (A) Three directors representing community-based nonprofit organizations with a mission to serve disinvested lower income communities within the empowerment zone.(B) The Governor shall appoint the directors.(10) (A) Two directors representing the public interest.(B) The Governor shall appoint the directors from individuals whose residence and employment are within the empowerment zone. (11) (A) Six directors representing state government, from the following state governmental agencies:(i) The Governors Office of Business and Economic Development.(ii) The Governors Office of Land Use and Climate Innovation.(iii) The Natural Resources Agency. (iv) The Transportation Agency. (v) The California Workforce Development Board.(vi) The State Energy Resources Conservation and Development Commission.(B) Each state government director may designate a representative to serve on the board.(12) Every Member of the California Legislature and of the United States Congress representing geographic areas within the empowerment zone shall be ex officio members of the board of directors.(e) (1) The empowerment zone shall have an executive committee composed of the chair and two deputy chairs selected pursuant to paragraph (2) and up to eight additional members of the board of directors, which shall be selected by a majority vote of the board of directors.(2) (A) The executive committee may carry on the administrative and executive functions of the board between full meetings.(B) (i) Each executive committee member serves a two-year term.(ii) Although individuals may serve on the executive committee more than once, they may not serve consecutive terms.(C) The chair and deputy chairs shall be chosen from among the following:(i) One member shall be a Member of the Legislature who represents one or more of the cities or a county listed in subdivision (c) of Section 7599.107.(ii) One member shall be a representative from a local agency in a city or county listed in subdivision (c) of Section 7599.107 that serves an area within the empowerment zone.(iii) One member shall be a representative whose residence and place of employment is within the empowerment zone.(3) The board may elect other officers as it deems necessary from among its members.(4) The provisions for the executive committee set forth in this chapter shall not be construed to limit the board or the executive committee from setting up any other committees or groups that it may see fit.(f) (1) The board shall meet at least six times per year.(2) Additional meetings may be called at the discretion of the chair or of a majority of the executive committee.(g) (1) The board of directors members shall serve without compensation.(2) With the chairs prior approval, each board member shall receive the actual and necessary travel-related expenses incurred in attending board meetings and other events.(h) Each member of the board of directors shall, upon identifying a conflict of interest, or a potential conflict of interest, regarding a matter before the board of directors of the empowerment zone, immediately and before consideration of the matter, do all of the following: (1) (A) Provide written notice to the chair regarding the interest that gives rise to the conflict of interest or potential conflict of interest. (B) In the case of the chair, written notice shall be given to one of the deputy chairs.(2) Recuse themselves from discussing or voting on the matter.(3) Leave the meeting room until after discussion, vote, and any other consideration of disposition of the matter is concluded. (i) A board of directors member shall not use the name of the empowerment zone on any letterhead, business code, or identification badge unless the person has been authorized to do so by the board of directors. 7599.109. (a) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall have all of the following powers:(1) To establish and maintain such offices as are judged best to facilitate the accomplishment of the empowerment zones purposes.(2) To contract with any person, firm, association, or corporation, or to contract for any other types of services judged by the board to be necessary or convenient for carrying out the purposes of the empowerment zone.(3) Receive and accept from any source, including, but not limited to, the federal government, the state, or any agency thereof, loans, contributions, or grants, in money, property, labor, or other things of value in aid of the operations and activities of the empowerment zone.(b) (1) The executive director shall manage and conduct the empowerment zones business and affairs, subject to the boards direction.(2) The board may assign to the executive director, by resolution, those duties generally necessary or convenient to carry out its powers and purposes under this chapter.7599.109.1. The empowerment zone may do all of the following:(a) Identify projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of Californias southeastern desert valleys, especially those acts that leverage federal, state, local, and private sector resources in a coordinated effort to support the development and equitable transition to a clean energy economy.(b) (1) Prepare, maintain, and regularly review and revise a regional economic plan that stimulates targeted public and private investments that support transformative economic growth that brings family-sustaining jobs and real economic opportunities to Californias most underserved residents. (2) The plan shall be a blueprint that reflects, integrates, leverages, amplifies, and fills program and service gaps in economic and workforce development activities within the empowerment zone.(3) The purpose of the plan is to facilitate and supplement regional activities, not supplant or override the work of other governmental entities.(c) Prepare, publish, or assist in making or publishing studies or investigations of the regions resources, and of existing or emerging problems related to the inclusive economic growth and development or prosperity of the region, or any part thereof.(d) Work with Members of the state Legislature, state departments, and officials to gain state support for projects identified by the zone as critical to the regions development and equitable transition to a clean energy economy.(e) Enhance the entrepreneurial ecosystem to support the regions development and equitable transition to a clean energy economy. This may include facilitating the establishment of one or more business service centers to facilitate access to business development incentive programs to benefit residents of disadvantaged communities, tribal members, small businesses, and other entrepreneurs.(f) Partner with the University of California, the California State University, community colleges, and the states other research and educational institutions, as well as private foundations, to provide guidance, advice, and encouragement in support of studies of particular interest and importance to the energy and manufacturing industries and the quality of life in the southeastern desert valleys.(g) Work with members of the states congressional delegation and federal officials, including the Border Governors Association, to gain federal support for projects identified by the empowerment zone as critical to the region. (h) Review state and federal policies and regulations to ensure they are fair and appropriate for the businesses, workers, and residents of the economic region.(i) Make recommendations to the Governor to improve the regions economic well-being and residents quality of life.(j) Create and maintain an internet website to facilitate the goals and projects of the empowerment zone.(k) Take other actions that support the regions development into a more diverse economy, including a clean power industrial center that benefits the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm.7599.109.2. (a) (1) Beginning on January 1, 2027, the board shall submit an annual progress report to the Legislature and the Governors Office of Business and Economic Development. (2) The annual progress report shall cover empowerment zone activities and their progress meeting reporting metrics during the prior fiscal year. (3) The scope of the first report shall include empowerment zone activities from January 1, 2026, through June 30, 2026.(4) The report shall be submitted in compliance with Section 9795.(b) (1) The board shall appoint an advisory committee to develop proposed annual reporting metrics. (2) The advisory committee shall include board members and stakeholders who live and work in the empowerment zone. (3) The board shall review the proposed metrics and adopt final reporting metrics on or before January 1, 2027. (4) The reporting metrics shall include, but not be limited to, all of the following:(A) Progress on developing and implementing the regional roadmap for economic recovery and inclusive transition.(B) (i) The number, size, and industry sector of businesses assisted through empowerment zone activities, including the type of services provided.(ii) The report shall include information voluntarily provided by the businesses that received the assistance.(iii) Providing the information shall not be a requirement for obtaining the assistance.(C) (i) The number, type of services, and demographic profile of individuals served by empowerment zone activities.(ii) The report shall include information voluntarily provided by the individuals who received the services.(iii) Providing the information shall not be a requirement for obtaining the services.(D) The number of jobs gained and lost in key industry sectors of the regional economy in the empowerment zone.(E) The average wage of the jobs gained in each economic sector.(F) The number and types of grants, other funding, and incentives brought to the region through empowerment zone activities.(G) The type and amount of apprenticeship and preapprenticeship positions facilitated by empowerment zone activities.(H) The type and amount of workforce training conducted in the zone, by whom it was provided, and the amount of capital investment associated with providing that training.(c) Commencing on January 1, 2027, and on or before January 1 of each year thereafter, the empowerment zone shall post the report described in subdivision (a) on its internet website and submit a letter to the Legislature informing the Legislature that the report has been posted.7599.109.3. This chapter shall remain in effect only until January 1, 2035, and as of that date is repealed. CHAPTER 34.5. Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys 7599.105. This chapter shall be known, and may be cited, as the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys Act.7599.106. For purposes of this chapter, the following definitions apply:(a) Board means the board of directors set forth in Section 7599.108.(b) Entrepreneurial ecosystem means policies, structures, and approaches to investment that support economic activity and business enterprise throughout the business life cycle. Place-based entrepreneurial ecosystems refer to the strategic alignment of various public and private efforts, including, but not limited to, education and training, funding and finance, human capital, community culture, and regulatory frameworks.(c) Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys or empowerment zone means a zone authorized and established pursuant to this chapter.7599.107. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys may be established pursuant to subdivision (d).(2) The geographic boundaries of the zone may extend to the territories of the jurisdictions listed in subdivision (c), subject to the jurisdictions approval, as provided in subdivision (d).(b) (1) (A) The purpose of the empowerment zone is to cultivate and stimulate targeted investments by the public and private sectors in Californias southeastern desert region, which has historically been overlooked and left behind by the states existing economic planning and funding activities. (B) The empowerment zone will accomplish the goal described in this subdivision by facilitating the region to work collaboratively on strategically leveraging state, federal, and local government-provided tax incentives with grant, loan, and workforce training programs and services offered through public and private sector entities.(2) (A) Success of the empowerment zone shall be measured by the increased flow of public and private capital into the region, the participation of local residents and businesses in the benefits of those investments, and the expansion and innovation of a green energy industrial center.(B) The measurement of success of the empowerment zone described in this subdivision includes, but is not limited to, the development of the regions lithium extraction and processing capabilities, the development of related manufacturing, and an increased quality of life for the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm.(c) (1) Subject to the limitations and requirements of this chapter, the empowerment zone may include the land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys.(2) The maximum boundaries of the empowerment zone include each of the following jurisdictions and designated places:(A) All unincorporated areas of the County of Imperial, including the following census-designated places:(i) Bombay Beach.(ii) Desert Shores.(iii) Heber.(iv) Naval Air Facility El Centro.(v) Niland.(vi) Ocotillo.(vii) Palo Verde.(viii) Salton City.(ix) Salton Sea Beach.(x) Seeley.(xi) Winterhaven.(B) Unincorporated areas of the County of Riverside, which lie south of 33.90 degrees north and east of 116.25 degrees west. This includes the following census-designated places within the County of Riverside:(i) Desert Center.(ii) Indio Hills.(iii) Mecca.(iv) Mesa Verde.(v) North Shore.(vi) Oasis.(vii) Ripley.(viii) Thermal.(ix) Vista Santa Rosa.(C) The following incorporated jurisdictions in the County of Imperial:(i) The City of Blythe. (ii) The City of Brawley.(iii) The City of Calexico.(iv) The City of Calipatria.(v) The City of El Centro.(vi) The City of Holtville.(vii) The City of Imperial.(viii) The City of Westmorland. (D) The following incorporated jurisdictions in the County of Riverside:(i) Coachella.(ii) Indio.(d) (1) (A) (i) The Imperial County Board of Supervisors may adopt a resolution to initiate the establishment of the empowerment zone.(ii) The resolution shall state the countys support for the creation of the empowerment zone and commit to appointing two representatives to the board of directors within 10 business days.(iii) Following the adoption of the County of Imperials resolution, the legislative body for jurisdictions listed in subparagraph (C) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commit to appointing one representative to the board of directors within 10 business days.(B) (i) Following the adoption of the County of Imperials resolution pursuant to subparagraph (A), the Riverside County Board of Supervisors may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appoint two representatives to the board of directors within 10 business days.(ii) If the County of Riverside adopts a resolution, the legislative body for jurisdictions listed in subparagraph (D) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appointing one representative to the board of directors.(2) (A) To ensure the timely establishment of the empowerment zone, cities listed in subparagraphs (C) and (D) of paragraph (2) of subdivision (c) shall adopt the resolution within 45 business days of their respective county adopting their resolution.(B) Following the 45 days described in subparagraph (A), a jurisdiction shall not join the empowerment zone until the first anniversary of the full establishment of the empowerment zone, as prescribed in subdivision (e).(3) (A) The legislative body of a city or county listed in subdivision (c) may remove the land within its jurisdiction from the empowerment zone by adopting a resolution stating that it no longer wishes to participate. (B) The resolution ending participation in the empowerment zone shall identify a final date for inclusion in the empowerment zone, which shall be no later than 60 days from the adoption of the resolution.(C) Any benefits or incentives awarded before the adoption of a resolution removing the jurisdiction from the empowerment zone shall continue under the same terms and conditions as would have been applied if the jurisdiction were still in the empowerment zone for not fewer than two years. (e) The empowerment zone shall become a state-designated zone with full powers and authorities provided in this chapter when both of the following conditions are met:(1) The County of Imperial has adopted the initiating resolution pursuant to subparagraph (A) of paragraph (1) of subdivision (d).(2) The board of directors has been formed and a public meeting has been held.7599.108. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall be governed by a board of directors composed of representatives of stakeholder groups identified in subdivision (d).(2) The board shall exercise all of the powers of the empowerment zone, except as otherwise provided in this chapter.(b) (1) All stakeholder group representatives on the board of directors shall serve a three-year term and may be reappointed by their appointing body for up to two additional terms.(2) (A) In the initial round of appointing directors, the board shall use a lottery system to decide which directors will serve two-year and four-year terms.(B) The appointment approach described in this subdivision shall aim to stagger the turnover of board members so that no more than one-third of the directors leave at the same time.(3) (A) No representative for a public stakeholder entity shall retain their seat on the empowerment zone board of directors after ceasing to hold the position that qualifies them as an eligible representative for the board. That persons membership on the board shall thereafter be considered vacant.(B) (i) The board members eligibility from a private entity shall be determined by the board in consultation with the appointing entity if there is one. (ii) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(4) A vacancy on the board shall be filled for the unexpired term by the selection and appointment process used to appoint the director whose position has become vacant.(5) (A) A director who fails to attend at least 50 percent of the board meetings in any 12-month period is subject to removal from the board.(B) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(c) (1) (A) All directors shall be voting members of the board, except those directors appointed from stakeholder groups listed in paragraph (11) of subdivision (d) that represent a state or federal agency and paragraph (12) of subdivision (d) representing state and federal elected officials.(B) Individuals representing state and federal governmental entities on the board shall be nonvoting members.(2) (A) A majority of the voting directors shall constitute a quorum for the transaction of business and may act for the board.(B) Ex officio nonvoting members shall not be counted in establishing a quorum.(C) Vacancies shall not change the number of voting directors required to be in attendance to constitute a quorum.(D) Notwithstanding subparagraph (C), during the first 12 months following the establishment of the empowerment zone, a quorum shall consist of a majority of voting directors sitting on the board.(d) The membership of the board of directors shall comprise all of the following representatives who shall participate in meetings and serve as a liaison with their appointing entities and related organizations:(1) Two local government directors selected by each of the counties listed in subdivision (c) of Section 7599.107 and that have adopted a resolution expressing their support for participating in the empowerment zone.(2) One local government director selected by each incorporated city listed in subdivision (c) of Section 7599.107 that adopted a resolution expressing their support for participating in the empowerment zone.(3) Three directors selected by the Southern California Tribal Chairmens Association to represent tribal governments with lands in the empowerment zone. (4) (A) Three directors representing large private sector employers with facilities in the empowerment zone.(B) Each of the three largest employers shall select a representative to the board based on the number of employees and whether the business is in the energy, health, or manufacturing sector.(C) Employer size shall be based on data from the local workforce board and the boundaries of the empowerment zone at the time the director is selected.(5) Three directors from universities and laboratories with specialized expertise and knowledge of clean energy who shall, upon agreement by the Regents of the University of California, be nominated by the office of the President of the University of California and confirmed by the board.(6) (A) Four directors representing the five largest private sector organized labor organizations whose membership works in the empowerment zone.(B) The directors shall be selected by their organizations.(7) (A) Eight directors representing workforce development and public and private educational entities that serve residents and businesses in the empowerment zone. (B) The directors shall be selected as follows:(i) The Imperial County Workforce Development Board and the Riverside County Workforce Development Board shall each designate one director responsible for participating in meetings and serving as a liaison between the boards and their respective appointing bodies.(ii) The California State University system and the office of the Chancellor of the California Community Colleges shall each select two directors.(iii) Two additional directors shall be nominated by the Southern California Association of Governments and confirmed by the board.(8) (A) Three directors representing foundations with specialized expertise and knowledge of green energy, public health, or economic development.(B) The foundation representatives shall be nominated by the Southern California Association of Governments and confirmed by the board. (9) (A) Three directors representing community-based nonprofit organizations with a mission to serve disinvested lower income communities within the empowerment zone.(B) The Governor shall appoint the directors.(10) (A) Two directors representing the public interest.(B) The Governor shall appoint the directors from individuals whose residence and employment are within the empowerment zone. (11) (A) Six directors representing state government, from the following state governmental agencies:(i) The Governors Office of Business and Economic Development.(ii) The Governors Office of Land Use and Climate Innovation.(iii) The Natural Resources Agency. (iv) The Transportation Agency. (v) The California Workforce Development Board.(vi) The State Energy Resources Conservation and Development Commission.(B) Each state government director may designate a representative to serve on the board.(12) Every Member of the California Legislature and of the United States Congress representing geographic areas within the empowerment zone shall be ex officio members of the board of directors.(e) (1) The empowerment zone shall have an executive committee composed of the chair and two deputy chairs selected pursuant to paragraph (2) and up to eight additional members of the board of directors, which shall be selected by a majority vote of the board of directors.(2) (A) The executive committee may carry on the administrative and executive functions of the board between full meetings.(B) (i) Each executive committee member serves a two-year term.(ii) Although individuals may serve on the executive committee more than once, they may not serve consecutive terms.(C) The chair and deputy chairs shall be chosen from among the following:(i) One member shall be a Member of the Legislature who represents one or more of the cities or a county listed in subdivision (c) of Section 7599.107.(ii) One member shall be a representative from a local agency in a city or county listed in subdivision (c) of Section 7599.107 that serves an area within the empowerment zone.(iii) One member shall be a representative whose residence and place of employment is within the empowerment zone.(3) The board may elect other officers as it deems necessary from among its members.(4) The provisions for the executive committee set forth in this chapter shall not be construed to limit the board or the executive committee from setting up any other committees or groups that it may see fit.(f) (1) The board shall meet at least six times per year.(2) Additional meetings may be called at the discretion of the chair or of a majority of the executive committee.(g) (1) The board of directors members shall serve without compensation.(2) With the chairs prior approval, each board member shall receive the actual and necessary travel-related expenses incurred in attending board meetings and other events.(h) Each member of the board of directors shall, upon identifying a conflict of interest, or a potential conflict of interest, regarding a matter before the board of directors of the empowerment zone, immediately and before consideration of the matter, do all of the following: (1) (A) Provide written notice to the chair regarding the interest that gives rise to the conflict of interest or potential conflict of interest. (B) In the case of the chair, written notice shall be given to one of the deputy chairs.(2) Recuse themselves from discussing or voting on the matter.(3) Leave the meeting room until after discussion, vote, and any other consideration of disposition of the matter is concluded. (i) A board of directors member shall not use the name of the empowerment zone on any letterhead, business code, or identification badge unless the person has been authorized to do so by the board of directors. 7599.109. (a) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall have all of the following powers:(1) To establish and maintain such offices as are judged best to facilitate the accomplishment of the empowerment zones purposes.(2) To contract with any person, firm, association, or corporation, or to contract for any other types of services judged by the board to be necessary or convenient for carrying out the purposes of the empowerment zone.(3) Receive and accept from any source, including, but not limited to, the federal government, the state, or any agency thereof, loans, contributions, or grants, in money, property, labor, or other things of value in aid of the operations and activities of the empowerment zone.(b) (1) The executive director shall manage and conduct the empowerment zones business and affairs, subject to the boards direction.(2) The board may assign to the executive director, by resolution, those duties generally necessary or convenient to carry out its powers and purposes under this chapter.7599.109.1. The empowerment zone may do all of the following:(a) Identify projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of Californias southeastern desert valleys, especially those acts that leverage federal, state, local, and private sector resources in a coordinated effort to support the development and equitable transition to a clean energy economy.(b) (1) Prepare, maintain, and regularly review and revise a regional economic plan that stimulates targeted public and private investments that support transformative economic growth that brings family-sustaining jobs and real economic opportunities to Californias most underserved residents. (2) The plan shall be a blueprint that reflects, integrates, leverages, amplifies, and fills program and service gaps in economic and workforce development activities within the empowerment zone.(3) The purpose of the plan is to facilitate and supplement regional activities, not supplant or override the work of other governmental entities.(c) Prepare, publish, or assist in making or publishing studies or investigations of the regions resources, and of existing or emerging problems related to the inclusive economic growth and development or prosperity of the region, or any part thereof.(d) Work with Members of the state Legislature, state departments, and officials to gain state support for projects identified by the zone as critical to the regions development and equitable transition to a clean energy economy.(e) Enhance the entrepreneurial ecosystem to support the regions development and equitable transition to a clean energy economy. This may include facilitating the establishment of one or more business service centers to facilitate access to business development incentive programs to benefit residents of disadvantaged communities, tribal members, small businesses, and other entrepreneurs.(f) Partner with the University of California, the California State University, community colleges, and the states other research and educational institutions, as well as private foundations, to provide guidance, advice, and encouragement in support of studies of particular interest and importance to the energy and manufacturing industries and the quality of life in the southeastern desert valleys.(g) Work with members of the states congressional delegation and federal officials, including the Border Governors Association, to gain federal support for projects identified by the empowerment zone as critical to the region. (h) Review state and federal policies and regulations to ensure they are fair and appropriate for the businesses, workers, and residents of the economic region.(i) Make recommendations to the Governor to improve the regions economic well-being and residents quality of life.(j) Create and maintain an internet website to facilitate the goals and projects of the empowerment zone.(k) Take other actions that support the regions development into a more diverse economy, including a clean power industrial center that benefits the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm.7599.109.2. (a) (1) Beginning on January 1, 2027, the board shall submit an annual progress report to the Legislature and the Governors Office of Business and Economic Development. (2) The annual progress report shall cover empowerment zone activities and their progress meeting reporting metrics during the prior fiscal year. (3) The scope of the first report shall include empowerment zone activities from January 1, 2026, through June 30, 2026.(4) The report shall be submitted in compliance with Section 9795.(b) (1) The board shall appoint an advisory committee to develop proposed annual reporting metrics. (2) The advisory committee shall include board members and stakeholders who live and work in the empowerment zone. (3) The board shall review the proposed metrics and adopt final reporting metrics on or before January 1, 2027. (4) The reporting metrics shall include, but not be limited to, all of the following:(A) Progress on developing and implementing the regional roadmap for economic recovery and inclusive transition.(B) (i) The number, size, and industry sector of businesses assisted through empowerment zone activities, including the type of services provided.(ii) The report shall include information voluntarily provided by the businesses that received the assistance.(iii) Providing the information shall not be a requirement for obtaining the assistance.(C) (i) The number, type of services, and demographic profile of individuals served by empowerment zone activities.(ii) The report shall include information voluntarily provided by the individuals who received the services.(iii) Providing the information shall not be a requirement for obtaining the services.(D) The number of jobs gained and lost in key industry sectors of the regional economy in the empowerment zone.(E) The average wage of the jobs gained in each economic sector.(F) The number and types of grants, other funding, and incentives brought to the region through empowerment zone activities.(G) The type and amount of apprenticeship and preapprenticeship positions facilitated by empowerment zone activities.(H) The type and amount of workforce training conducted in the zone, by whom it was provided, and the amount of capital investment associated with providing that training.(c) Commencing on January 1, 2027, and on or before January 1 of each year thereafter, the empowerment zone shall post the report described in subdivision (a) on its internet website and submit a letter to the Legislature informing the Legislature that the report has been posted.7599.109.3. This chapter shall remain in effect only until January 1, 2035, and as of that date is repealed. CHAPTER 34.5. Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys CHAPTER 34.5. Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys 7599.105. This chapter shall be known, and may be cited, as the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys Act. 7599.105. This chapter shall be known, and may be cited, as the Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys Act. 7599.106. For purposes of this chapter, the following definitions apply:(a) Board means the board of directors set forth in Section 7599.108.(b) Entrepreneurial ecosystem means policies, structures, and approaches to investment that support economic activity and business enterprise throughout the business life cycle. Place-based entrepreneurial ecosystems refer to the strategic alignment of various public and private efforts, including, but not limited to, education and training, funding and finance, human capital, community culture, and regulatory frameworks.(c) Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys or empowerment zone means a zone authorized and established pursuant to this chapter. 7599.106. For purposes of this chapter, the following definitions apply: (a) Board means the board of directors set forth in Section 7599.108. (b) Entrepreneurial ecosystem means policies, structures, and approaches to investment that support economic activity and business enterprise throughout the business life cycle. Place-based entrepreneurial ecosystems refer to the strategic alignment of various public and private efforts, including, but not limited to, education and training, funding and finance, human capital, community culture, and regulatory frameworks. (c) Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys or empowerment zone means a zone authorized and established pursuant to this chapter. 7599.107. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys may be established pursuant to subdivision (d).(2) The geographic boundaries of the zone may extend to the territories of the jurisdictions listed in subdivision (c), subject to the jurisdictions approval, as provided in subdivision (d).(b) (1) (A) The purpose of the empowerment zone is to cultivate and stimulate targeted investments by the public and private sectors in Californias southeastern desert region, which has historically been overlooked and left behind by the states existing economic planning and funding activities. (B) The empowerment zone will accomplish the goal described in this subdivision by facilitating the region to work collaboratively on strategically leveraging state, federal, and local government-provided tax incentives with grant, loan, and workforce training programs and services offered through public and private sector entities.(2) (A) Success of the empowerment zone shall be measured by the increased flow of public and private capital into the region, the participation of local residents and businesses in the benefits of those investments, and the expansion and innovation of a green energy industrial center.(B) The measurement of success of the empowerment zone described in this subdivision includes, but is not limited to, the development of the regions lithium extraction and processing capabilities, the development of related manufacturing, and an increased quality of life for the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm.(c) (1) Subject to the limitations and requirements of this chapter, the empowerment zone may include the land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys.(2) The maximum boundaries of the empowerment zone include each of the following jurisdictions and designated places:(A) All unincorporated areas of the County of Imperial, including the following census-designated places:(i) Bombay Beach.(ii) Desert Shores.(iii) Heber.(iv) Naval Air Facility El Centro.(v) Niland.(vi) Ocotillo.(vii) Palo Verde.(viii) Salton City.(ix) Salton Sea Beach.(x) Seeley.(xi) Winterhaven.(B) Unincorporated areas of the County of Riverside, which lie south of 33.90 degrees north and east of 116.25 degrees west. This includes the following census-designated places within the County of Riverside:(i) Desert Center.(ii) Indio Hills.(iii) Mecca.(iv) Mesa Verde.(v) North Shore.(vi) Oasis.(vii) Ripley.(viii) Thermal.(ix) Vista Santa Rosa.(C) The following incorporated jurisdictions in the County of Imperial:(i) The City of Blythe. (ii) The City of Brawley.(iii) The City of Calexico.(iv) The City of Calipatria.(v) The City of El Centro.(vi) The City of Holtville.(vii) The City of Imperial.(viii) The City of Westmorland. (D) The following incorporated jurisdictions in the County of Riverside:(i) Coachella.(ii) Indio.(d) (1) (A) (i) The Imperial County Board of Supervisors may adopt a resolution to initiate the establishment of the empowerment zone.(ii) The resolution shall state the countys support for the creation of the empowerment zone and commit to appointing two representatives to the board of directors within 10 business days.(iii) Following the adoption of the County of Imperials resolution, the legislative body for jurisdictions listed in subparagraph (C) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commit to appointing one representative to the board of directors within 10 business days.(B) (i) Following the adoption of the County of Imperials resolution pursuant to subparagraph (A), the Riverside County Board of Supervisors may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appoint two representatives to the board of directors within 10 business days.(ii) If the County of Riverside adopts a resolution, the legislative body for jurisdictions listed in subparagraph (D) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appointing one representative to the board of directors.(2) (A) To ensure the timely establishment of the empowerment zone, cities listed in subparagraphs (C) and (D) of paragraph (2) of subdivision (c) shall adopt the resolution within 45 business days of their respective county adopting their resolution.(B) Following the 45 days described in subparagraph (A), a jurisdiction shall not join the empowerment zone until the first anniversary of the full establishment of the empowerment zone, as prescribed in subdivision (e).(3) (A) The legislative body of a city or county listed in subdivision (c) may remove the land within its jurisdiction from the empowerment zone by adopting a resolution stating that it no longer wishes to participate. (B) The resolution ending participation in the empowerment zone shall identify a final date for inclusion in the empowerment zone, which shall be no later than 60 days from the adoption of the resolution.(C) Any benefits or incentives awarded before the adoption of a resolution removing the jurisdiction from the empowerment zone shall continue under the same terms and conditions as would have been applied if the jurisdiction were still in the empowerment zone for not fewer than two years. (e) The empowerment zone shall become a state-designated zone with full powers and authorities provided in this chapter when both of the following conditions are met:(1) The County of Imperial has adopted the initiating resolution pursuant to subparagraph (A) of paragraph (1) of subdivision (d).(2) The board of directors has been formed and a public meeting has been held. 7599.107. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys may be established pursuant to subdivision (d). (2) The geographic boundaries of the zone may extend to the territories of the jurisdictions listed in subdivision (c), subject to the jurisdictions approval, as provided in subdivision (d). (b) (1) (A) The purpose of the empowerment zone is to cultivate and stimulate targeted investments by the public and private sectors in Californias southeastern desert region, which has historically been overlooked and left behind by the states existing economic planning and funding activities. (B) The empowerment zone will accomplish the goal described in this subdivision by facilitating the region to work collaboratively on strategically leveraging state, federal, and local government-provided tax incentives with grant, loan, and workforce training programs and services offered through public and private sector entities. (2) (A) Success of the empowerment zone shall be measured by the increased flow of public and private capital into the region, the participation of local residents and businesses in the benefits of those investments, and the expansion and innovation of a green energy industrial center. (B) The measurement of success of the empowerment zone described in this subdivision includes, but is not limited to, the development of the regions lithium extraction and processing capabilities, the development of related manufacturing, and an increased quality of life for the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm. (c) (1) Subject to the limitations and requirements of this chapter, the empowerment zone may include the land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys. (2) The maximum boundaries of the empowerment zone include each of the following jurisdictions and designated places: (A) All unincorporated areas of the County of Imperial, including the following census-designated places: (i) Bombay Beach. (ii) Desert Shores. (iii) Heber. (iv) Naval Air Facility El Centro. (v) Niland. (vi) Ocotillo. (vii) Palo Verde. (viii) Salton City. (ix) Salton Sea Beach. (x) Seeley. (xi) Winterhaven. (B) Unincorporated areas of the County of Riverside, which lie south of 33.90 degrees north and east of 116.25 degrees west. This includes the following census-designated places within the County of Riverside: (i) Desert Center. (ii) Indio Hills. (iii) Mecca. (iv) Mesa Verde. (v) North Shore. (vi) Oasis. (vii) Ripley. (viii) Thermal. (ix) Vista Santa Rosa. (C) The following incorporated jurisdictions in the County of Imperial: (i) The City of Blythe. (ii) The City of Brawley. (iii) The City of Calexico. (iv) The City of Calipatria. (v) The City of El Centro. (vi) The City of Holtville. (vii) The City of Imperial. (viii) The City of Westmorland. (D) The following incorporated jurisdictions in the County of Riverside: (i) Coachella. (ii) Indio. (d) (1) (A) (i) The Imperial County Board of Supervisors may adopt a resolution to initiate the establishment of the empowerment zone. (ii) The resolution shall state the countys support for the creation of the empowerment zone and commit to appointing two representatives to the board of directors within 10 business days. (iii) Following the adoption of the County of Imperials resolution, the legislative body for jurisdictions listed in subparagraph (C) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commit to appointing one representative to the board of directors within 10 business days. (B) (i) Following the adoption of the County of Imperials resolution pursuant to subparagraph (A), the Riverside County Board of Supervisors may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appoint two representatives to the board of directors within 10 business days. (ii) If the County of Riverside adopts a resolution, the legislative body for jurisdictions listed in subparagraph (D) of paragraph (2) of subdivision (c) may adopt a resolution supporting their jurisdictions inclusion in the empowerment zone and commitment to appointing one representative to the board of directors. (2) (A) To ensure the timely establishment of the empowerment zone, cities listed in subparagraphs (C) and (D) of paragraph (2) of subdivision (c) shall adopt the resolution within 45 business days of their respective county adopting their resolution. (B) Following the 45 days described in subparagraph (A), a jurisdiction shall not join the empowerment zone until the first anniversary of the full establishment of the empowerment zone, as prescribed in subdivision (e). (3) (A) The legislative body of a city or county listed in subdivision (c) may remove the land within its jurisdiction from the empowerment zone by adopting a resolution stating that it no longer wishes to participate. (B) The resolution ending participation in the empowerment zone shall identify a final date for inclusion in the empowerment zone, which shall be no later than 60 days from the adoption of the resolution. (C) Any benefits or incentives awarded before the adoption of a resolution removing the jurisdiction from the empowerment zone shall continue under the same terms and conditions as would have been applied if the jurisdiction were still in the empowerment zone for not fewer than two years. (e) The empowerment zone shall become a state-designated zone with full powers and authorities provided in this chapter when both of the following conditions are met: (1) The County of Imperial has adopted the initiating resolution pursuant to subparagraph (A) of paragraph (1) of subdivision (d). (2) The board of directors has been formed and a public meeting has been held. 7599.108. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall be governed by a board of directors composed of representatives of stakeholder groups identified in subdivision (d).(2) The board shall exercise all of the powers of the empowerment zone, except as otherwise provided in this chapter.(b) (1) All stakeholder group representatives on the board of directors shall serve a three-year term and may be reappointed by their appointing body for up to two additional terms.(2) (A) In the initial round of appointing directors, the board shall use a lottery system to decide which directors will serve two-year and four-year terms.(B) The appointment approach described in this subdivision shall aim to stagger the turnover of board members so that no more than one-third of the directors leave at the same time.(3) (A) No representative for a public stakeholder entity shall retain their seat on the empowerment zone board of directors after ceasing to hold the position that qualifies them as an eligible representative for the board. That persons membership on the board shall thereafter be considered vacant.(B) (i) The board members eligibility from a private entity shall be determined by the board in consultation with the appointing entity if there is one. (ii) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(4) A vacancy on the board shall be filled for the unexpired term by the selection and appointment process used to appoint the director whose position has become vacant.(5) (A) A director who fails to attend at least 50 percent of the board meetings in any 12-month period is subject to removal from the board.(B) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph.(c) (1) (A) All directors shall be voting members of the board, except those directors appointed from stakeholder groups listed in paragraph (11) of subdivision (d) that represent a state or federal agency and paragraph (12) of subdivision (d) representing state and federal elected officials.(B) Individuals representing state and federal governmental entities on the board shall be nonvoting members.(2) (A) A majority of the voting directors shall constitute a quorum for the transaction of business and may act for the board.(B) Ex officio nonvoting members shall not be counted in establishing a quorum.(C) Vacancies shall not change the number of voting directors required to be in attendance to constitute a quorum.(D) Notwithstanding subparagraph (C), during the first 12 months following the establishment of the empowerment zone, a quorum shall consist of a majority of voting directors sitting on the board.(d) The membership of the board of directors shall comprise all of the following representatives who shall participate in meetings and serve as a liaison with their appointing entities and related organizations:(1) Two local government directors selected by each of the counties listed in subdivision (c) of Section 7599.107 and that have adopted a resolution expressing their support for participating in the empowerment zone.(2) One local government director selected by each incorporated city listed in subdivision (c) of Section 7599.107 that adopted a resolution expressing their support for participating in the empowerment zone.(3) Three directors selected by the Southern California Tribal Chairmens Association to represent tribal governments with lands in the empowerment zone. (4) (A) Three directors representing large private sector employers with facilities in the empowerment zone.(B) Each of the three largest employers shall select a representative to the board based on the number of employees and whether the business is in the energy, health, or manufacturing sector.(C) Employer size shall be based on data from the local workforce board and the boundaries of the empowerment zone at the time the director is selected.(5) Three directors from universities and laboratories with specialized expertise and knowledge of clean energy who shall, upon agreement by the Regents of the University of California, be nominated by the office of the President of the University of California and confirmed by the board.(6) (A) Four directors representing the five largest private sector organized labor organizations whose membership works in the empowerment zone.(B) The directors shall be selected by their organizations.(7) (A) Eight directors representing workforce development and public and private educational entities that serve residents and businesses in the empowerment zone. (B) The directors shall be selected as follows:(i) The Imperial County Workforce Development Board and the Riverside County Workforce Development Board shall each designate one director responsible for participating in meetings and serving as a liaison between the boards and their respective appointing bodies.(ii) The California State University system and the office of the Chancellor of the California Community Colleges shall each select two directors.(iii) Two additional directors shall be nominated by the Southern California Association of Governments and confirmed by the board.(8) (A) Three directors representing foundations with specialized expertise and knowledge of green energy, public health, or economic development.(B) The foundation representatives shall be nominated by the Southern California Association of Governments and confirmed by the board. (9) (A) Three directors representing community-based nonprofit organizations with a mission to serve disinvested lower income communities within the empowerment zone.(B) The Governor shall appoint the directors.(10) (A) Two directors representing the public interest.(B) The Governor shall appoint the directors from individuals whose residence and employment are within the empowerment zone. (11) (A) Six directors representing state government, from the following state governmental agencies:(i) The Governors Office of Business and Economic Development.(ii) The Governors Office of Land Use and Climate Innovation.(iii) The Natural Resources Agency. (iv) The Transportation Agency. (v) The California Workforce Development Board.(vi) The State Energy Resources Conservation and Development Commission.(B) Each state government director may designate a representative to serve on the board.(12) Every Member of the California Legislature and of the United States Congress representing geographic areas within the empowerment zone shall be ex officio members of the board of directors.(e) (1) The empowerment zone shall have an executive committee composed of the chair and two deputy chairs selected pursuant to paragraph (2) and up to eight additional members of the board of directors, which shall be selected by a majority vote of the board of directors.(2) (A) The executive committee may carry on the administrative and executive functions of the board between full meetings.(B) (i) Each executive committee member serves a two-year term.(ii) Although individuals may serve on the executive committee more than once, they may not serve consecutive terms.(C) The chair and deputy chairs shall be chosen from among the following:(i) One member shall be a Member of the Legislature who represents one or more of the cities or a county listed in subdivision (c) of Section 7599.107.(ii) One member shall be a representative from a local agency in a city or county listed in subdivision (c) of Section 7599.107 that serves an area within the empowerment zone.(iii) One member shall be a representative whose residence and place of employment is within the empowerment zone.(3) The board may elect other officers as it deems necessary from among its members.(4) The provisions for the executive committee set forth in this chapter shall not be construed to limit the board or the executive committee from setting up any other committees or groups that it may see fit.(f) (1) The board shall meet at least six times per year.(2) Additional meetings may be called at the discretion of the chair or of a majority of the executive committee.(g) (1) The board of directors members shall serve without compensation.(2) With the chairs prior approval, each board member shall receive the actual and necessary travel-related expenses incurred in attending board meetings and other events.(h) Each member of the board of directors shall, upon identifying a conflict of interest, or a potential conflict of interest, regarding a matter before the board of directors of the empowerment zone, immediately and before consideration of the matter, do all of the following: (1) (A) Provide written notice to the chair regarding the interest that gives rise to the conflict of interest or potential conflict of interest. (B) In the case of the chair, written notice shall be given to one of the deputy chairs.(2) Recuse themselves from discussing or voting on the matter.(3) Leave the meeting room until after discussion, vote, and any other consideration of disposition of the matter is concluded. (i) A board of directors member shall not use the name of the empowerment zone on any letterhead, business code, or identification badge unless the person has been authorized to do so by the board of directors. 7599.108. (a) (1) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall be governed by a board of directors composed of representatives of stakeholder groups identified in subdivision (d). (2) The board shall exercise all of the powers of the empowerment zone, except as otherwise provided in this chapter. (b) (1) All stakeholder group representatives on the board of directors shall serve a three-year term and may be reappointed by their appointing body for up to two additional terms. (2) (A) In the initial round of appointing directors, the board shall use a lottery system to decide which directors will serve two-year and four-year terms. (B) The appointment approach described in this subdivision shall aim to stagger the turnover of board members so that no more than one-third of the directors leave at the same time. (3) (A) No representative for a public stakeholder entity shall retain their seat on the empowerment zone board of directors after ceasing to hold the position that qualifies them as an eligible representative for the board. That persons membership on the board shall thereafter be considered vacant. (B) (i) The board members eligibility from a private entity shall be determined by the board in consultation with the appointing entity if there is one. (ii) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph. (4) A vacancy on the board shall be filled for the unexpired term by the selection and appointment process used to appoint the director whose position has become vacant. (5) (A) A director who fails to attend at least 50 percent of the board meetings in any 12-month period is subject to removal from the board. (B) The board shall have an approved policy for making the determination before taking any action to determine the eligibility of a board member pursuant to this subparagraph. (c) (1) (A) All directors shall be voting members of the board, except those directors appointed from stakeholder groups listed in paragraph (11) of subdivision (d) that represent a state or federal agency and paragraph (12) of subdivision (d) representing state and federal elected officials. (B) Individuals representing state and federal governmental entities on the board shall be nonvoting members. (2) (A) A majority of the voting directors shall constitute a quorum for the transaction of business and may act for the board. (B) Ex officio nonvoting members shall not be counted in establishing a quorum. (C) Vacancies shall not change the number of voting directors required to be in attendance to constitute a quorum. (D) Notwithstanding subparagraph (C), during the first 12 months following the establishment of the empowerment zone, a quorum shall consist of a majority of voting directors sitting on the board. (d) The membership of the board of directors shall comprise all of the following representatives who shall participate in meetings and serve as a liaison with their appointing entities and related organizations: (1) Two local government directors selected by each of the counties listed in subdivision (c) of Section 7599.107 and that have adopted a resolution expressing their support for participating in the empowerment zone. (2) One local government director selected by each incorporated city listed in subdivision (c) of Section 7599.107 that adopted a resolution expressing their support for participating in the empowerment zone. (3) Three directors selected by the Southern California Tribal Chairmens Association to represent tribal governments with lands in the empowerment zone. (4) (A) Three directors representing large private sector employers with facilities in the empowerment zone. (B) Each of the three largest employers shall select a representative to the board based on the number of employees and whether the business is in the energy, health, or manufacturing sector. (C) Employer size shall be based on data from the local workforce board and the boundaries of the empowerment zone at the time the director is selected. (5) Three directors from universities and laboratories with specialized expertise and knowledge of clean energy who shall, upon agreement by the Regents of the University of California, be nominated by the office of the President of the University of California and confirmed by the board. (6) (A) Four directors representing the five largest private sector organized labor organizations whose membership works in the empowerment zone. (B) The directors shall be selected by their organizations. (7) (A) Eight directors representing workforce development and public and private educational entities that serve residents and businesses in the empowerment zone. (B) The directors shall be selected as follows: (i) The Imperial County Workforce Development Board and the Riverside County Workforce Development Board shall each designate one director responsible for participating in meetings and serving as a liaison between the boards and their respective appointing bodies. (ii) The California State University system and the office of the Chancellor of the California Community Colleges shall each select two directors. (iii) Two additional directors shall be nominated by the Southern California Association of Governments and confirmed by the board. (8) (A) Three directors representing foundations with specialized expertise and knowledge of green energy, public health, or economic development. (B) The foundation representatives shall be nominated by the Southern California Association of Governments and confirmed by the board. (9) (A) Three directors representing community-based nonprofit organizations with a mission to serve disinvested lower income communities within the empowerment zone. (B) The Governor shall appoint the directors. (10) (A) Two directors representing the public interest. (B) The Governor shall appoint the directors from individuals whose residence and employment are within the empowerment zone. (11) (A) Six directors representing state government, from the following state governmental agencies: (i) The Governors Office of Business and Economic Development. (ii) The Governors Office of Land Use and Climate Innovation. (iii) The Natural Resources Agency. (iv) The Transportation Agency. (v) The California Workforce Development Board. (vi) The State Energy Resources Conservation and Development Commission. (B) Each state government director may designate a representative to serve on the board. (12) Every Member of the California Legislature and of the United States Congress representing geographic areas within the empowerment zone shall be ex officio members of the board of directors. (e) (1) The empowerment zone shall have an executive committee composed of the chair and two deputy chairs selected pursuant to paragraph (2) and up to eight additional members of the board of directors, which shall be selected by a majority vote of the board of directors. (2) (A) The executive committee may carry on the administrative and executive functions of the board between full meetings. (B) (i) Each executive committee member serves a two-year term. (ii) Although individuals may serve on the executive committee more than once, they may not serve consecutive terms. (C) The chair and deputy chairs shall be chosen from among the following: (i) One member shall be a Member of the Legislature who represents one or more of the cities or a county listed in subdivision (c) of Section 7599.107. (ii) One member shall be a representative from a local agency in a city or county listed in subdivision (c) of Section 7599.107 that serves an area within the empowerment zone. (iii) One member shall be a representative whose residence and place of employment is within the empowerment zone. (3) The board may elect other officers as it deems necessary from among its members. (4) The provisions for the executive committee set forth in this chapter shall not be construed to limit the board or the executive committee from setting up any other committees or groups that it may see fit. (f) (1) The board shall meet at least six times per year. (2) Additional meetings may be called at the discretion of the chair or of a majority of the executive committee. (g) (1) The board of directors members shall serve without compensation. (2) With the chairs prior approval, each board member shall receive the actual and necessary travel-related expenses incurred in attending board meetings and other events. (h) Each member of the board of directors shall, upon identifying a conflict of interest, or a potential conflict of interest, regarding a matter before the board of directors of the empowerment zone, immediately and before consideration of the matter, do all of the following: (1) (A) Provide written notice to the chair regarding the interest that gives rise to the conflict of interest or potential conflict of interest. (B) In the case of the chair, written notice shall be given to one of the deputy chairs. (2) Recuse themselves from discussing or voting on the matter. (3) Leave the meeting room until after discussion, vote, and any other consideration of disposition of the matter is concluded. (i) A board of directors member shall not use the name of the empowerment zone on any letterhead, business code, or identification badge unless the person has been authorized to do so by the board of directors. 7599.109. (a) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall have all of the following powers:(1) To establish and maintain such offices as are judged best to facilitate the accomplishment of the empowerment zones purposes.(2) To contract with any person, firm, association, or corporation, or to contract for any other types of services judged by the board to be necessary or convenient for carrying out the purposes of the empowerment zone.(3) Receive and accept from any source, including, but not limited to, the federal government, the state, or any agency thereof, loans, contributions, or grants, in money, property, labor, or other things of value in aid of the operations and activities of the empowerment zone.(b) (1) The executive director shall manage and conduct the empowerment zones business and affairs, subject to the boards direction.(2) The board may assign to the executive director, by resolution, those duties generally necessary or convenient to carry out its powers and purposes under this chapter. 7599.109. (a) The Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys shall have all of the following powers: (1) To establish and maintain such offices as are judged best to facilitate the accomplishment of the empowerment zones purposes. (2) To contract with any person, firm, association, or corporation, or to contract for any other types of services judged by the board to be necessary or convenient for carrying out the purposes of the empowerment zone. (3) Receive and accept from any source, including, but not limited to, the federal government, the state, or any agency thereof, loans, contributions, or grants, in money, property, labor, or other things of value in aid of the operations and activities of the empowerment zone. (b) (1) The executive director shall manage and conduct the empowerment zones business and affairs, subject to the boards direction. (2) The board may assign to the executive director, by resolution, those duties generally necessary or convenient to carry out its powers and purposes under this chapter. 7599.109.1. The empowerment zone may do all of the following:(a) Identify projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of Californias southeastern desert valleys, especially those acts that leverage federal, state, local, and private sector resources in a coordinated effort to support the development and equitable transition to a clean energy economy.(b) (1) Prepare, maintain, and regularly review and revise a regional economic plan that stimulates targeted public and private investments that support transformative economic growth that brings family-sustaining jobs and real economic opportunities to Californias most underserved residents. (2) The plan shall be a blueprint that reflects, integrates, leverages, amplifies, and fills program and service gaps in economic and workforce development activities within the empowerment zone.(3) The purpose of the plan is to facilitate and supplement regional activities, not supplant or override the work of other governmental entities.(c) Prepare, publish, or assist in making or publishing studies or investigations of the regions resources, and of existing or emerging problems related to the inclusive economic growth and development or prosperity of the region, or any part thereof.(d) Work with Members of the state Legislature, state departments, and officials to gain state support for projects identified by the zone as critical to the regions development and equitable transition to a clean energy economy.(e) Enhance the entrepreneurial ecosystem to support the regions development and equitable transition to a clean energy economy. This may include facilitating the establishment of one or more business service centers to facilitate access to business development incentive programs to benefit residents of disadvantaged communities, tribal members, small businesses, and other entrepreneurs.(f) Partner with the University of California, the California State University, community colleges, and the states other research and educational institutions, as well as private foundations, to provide guidance, advice, and encouragement in support of studies of particular interest and importance to the energy and manufacturing industries and the quality of life in the southeastern desert valleys.(g) Work with members of the states congressional delegation and federal officials, including the Border Governors Association, to gain federal support for projects identified by the empowerment zone as critical to the region. (h) Review state and federal policies and regulations to ensure they are fair and appropriate for the businesses, workers, and residents of the economic region.(i) Make recommendations to the Governor to improve the regions economic well-being and residents quality of life.(j) Create and maintain an internet website to facilitate the goals and projects of the empowerment zone.(k) Take other actions that support the regions development into a more diverse economy, including a clean power industrial center that benefits the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm. 7599.109.1. The empowerment zone may do all of the following: (a) Identify projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of Californias southeastern desert valleys, especially those acts that leverage federal, state, local, and private sector resources in a coordinated effort to support the development and equitable transition to a clean energy economy. (b) (1) Prepare, maintain, and regularly review and revise a regional economic plan that stimulates targeted public and private investments that support transformative economic growth that brings family-sustaining jobs and real economic opportunities to Californias most underserved residents. (2) The plan shall be a blueprint that reflects, integrates, leverages, amplifies, and fills program and service gaps in economic and workforce development activities within the empowerment zone. (3) The purpose of the plan is to facilitate and supplement regional activities, not supplant or override the work of other governmental entities. (c) Prepare, publish, or assist in making or publishing studies or investigations of the regions resources, and of existing or emerging problems related to the inclusive economic growth and development or prosperity of the region, or any part thereof. (d) Work with Members of the state Legislature, state departments, and officials to gain state support for projects identified by the zone as critical to the regions development and equitable transition to a clean energy economy. (e) Enhance the entrepreneurial ecosystem to support the regions development and equitable transition to a clean energy economy. This may include facilitating the establishment of one or more business service centers to facilitate access to business development incentive programs to benefit residents of disadvantaged communities, tribal members, small businesses, and other entrepreneurs. (f) Partner with the University of California, the California State University, community colleges, and the states other research and educational institutions, as well as private foundations, to provide guidance, advice, and encouragement in support of studies of particular interest and importance to the energy and manufacturing industries and the quality of life in the southeastern desert valleys. (g) Work with members of the states congressional delegation and federal officials, including the Border Governors Association, to gain federal support for projects identified by the empowerment zone as critical to the region. (h) Review state and federal policies and regulations to ensure they are fair and appropriate for the businesses, workers, and residents of the economic region. (i) Make recommendations to the Governor to improve the regions economic well-being and residents quality of life. (j) Create and maintain an internet website to facilitate the goals and projects of the empowerment zone. (k) Take other actions that support the regions development into a more diverse economy, including a clean power industrial center that benefits the residents and businesses located within the empowerment zone, especially those communities and groups of individuals who have historically experienced an unequal distribution of environmental benefits and harm. 7599.109.2. (a) (1) Beginning on January 1, 2027, the board shall submit an annual progress report to the Legislature and the Governors Office of Business and Economic Development. (2) The annual progress report shall cover empowerment zone activities and their progress meeting reporting metrics during the prior fiscal year. (3) The scope of the first report shall include empowerment zone activities from January 1, 2026, through June 30, 2026.(4) The report shall be submitted in compliance with Section 9795.(b) (1) The board shall appoint an advisory committee to develop proposed annual reporting metrics. (2) The advisory committee shall include board members and stakeholders who live and work in the empowerment zone. (3) The board shall review the proposed metrics and adopt final reporting metrics on or before January 1, 2027. (4) The reporting metrics shall include, but not be limited to, all of the following:(A) Progress on developing and implementing the regional roadmap for economic recovery and inclusive transition.(B) (i) The number, size, and industry sector of businesses assisted through empowerment zone activities, including the type of services provided.(ii) The report shall include information voluntarily provided by the businesses that received the assistance.(iii) Providing the information shall not be a requirement for obtaining the assistance.(C) (i) The number, type of services, and demographic profile of individuals served by empowerment zone activities.(ii) The report shall include information voluntarily provided by the individuals who received the services.(iii) Providing the information shall not be a requirement for obtaining the services.(D) The number of jobs gained and lost in key industry sectors of the regional economy in the empowerment zone.(E) The average wage of the jobs gained in each economic sector.(F) The number and types of grants, other funding, and incentives brought to the region through empowerment zone activities.(G) The type and amount of apprenticeship and preapprenticeship positions facilitated by empowerment zone activities.(H) The type and amount of workforce training conducted in the zone, by whom it was provided, and the amount of capital investment associated with providing that training.(c) Commencing on January 1, 2027, and on or before January 1 of each year thereafter, the empowerment zone shall post the report described in subdivision (a) on its internet website and submit a letter to the Legislature informing the Legislature that the report has been posted. 7599.109.2. (a) (1) Beginning on January 1, 2027, the board shall submit an annual progress report to the Legislature and the Governors Office of Business and Economic Development. (2) The annual progress report shall cover empowerment zone activities and their progress meeting reporting metrics during the prior fiscal year. (3) The scope of the first report shall include empowerment zone activities from January 1, 2026, through June 30, 2026. (4) The report shall be submitted in compliance with Section 9795. (b) (1) The board shall appoint an advisory committee to develop proposed annual reporting metrics. (2) The advisory committee shall include board members and stakeholders who live and work in the empowerment zone. (3) The board shall review the proposed metrics and adopt final reporting metrics on or before January 1, 2027. (4) The reporting metrics shall include, but not be limited to, all of the following: (A) Progress on developing and implementing the regional roadmap for economic recovery and inclusive transition. (B) (i) The number, size, and industry sector of businesses assisted through empowerment zone activities, including the type of services provided. (ii) The report shall include information voluntarily provided by the businesses that received the assistance. (iii) Providing the information shall not be a requirement for obtaining the assistance. (C) (i) The number, type of services, and demographic profile of individuals served by empowerment zone activities. (ii) The report shall include information voluntarily provided by the individuals who received the services. (iii) Providing the information shall not be a requirement for obtaining the services. (D) The number of jobs gained and lost in key industry sectors of the regional economy in the empowerment zone. (E) The average wage of the jobs gained in each economic sector. (F) The number and types of grants, other funding, and incentives brought to the region through empowerment zone activities. (G) The type and amount of apprenticeship and preapprenticeship positions facilitated by empowerment zone activities. (H) The type and amount of workforce training conducted in the zone, by whom it was provided, and the amount of capital investment associated with providing that training. (c) Commencing on January 1, 2027, and on or before January 1 of each year thereafter, the empowerment zone shall post the report described in subdivision (a) on its internet website and submit a letter to the Legislature informing the Legislature that the report has been posted. 7599.109.3. This chapter shall remain in effect only until January 1, 2035, and as of that date is repealed. 7599.109.3. This chapter 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 economic development in the Southeastern Desert Valleys, and the state and national interests in fast tracking renewable energy generation and extraction of critical minerals within the region. 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 economic development in the Southeastern Desert Valleys, and the state and national interests in fast tracking renewable energy generation and extraction of critical minerals within the region. 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 economic development in the Southeastern Desert Valleys, and the state and national interests in fast tracking renewable energy generation and extraction of critical minerals within the region. ### SEC. 3.