AB 1280: Energy

This bill: 
- creates new project categories eligible for financing under the California Infrastructure and Economic Development Bank's Climate Catalyst Revolving Fund.
- establishes an Industrial Facilities Thermal Energy Storage Program within the Long-Duration Energy Storage Program to provide financial incentives for eligible projects to decarbonize industrial facilities’ use of heat and power, such as industrial heat pumps and thermal energy storage
- adds project labor and community benefits agreement preferences to projects under the INDIGO program

The INDIGO program is established by Assembly Bill 209 (Chapter 251, Statutes of 2021).  Eligible projects:

- Enhance electrical grid 
- Electrify processes that use fossil 
- Incorporate energy storage or renewable 
- Increase energy 
- Develop and deploy novel decarbonization technologies and strategies, including carbon capture.

Projects that benefit an oil or gas production, processing, or refining facility are not eligible.

The purpose of this solicitation is to deploy advanced decarbonization and/or grid support technologies at California industrial facilities to promote electrification and reduce GHG emissions produced from the industrial sector. This solicitation will target technologies that have the potential to demonstrate cost-effectiveness and scalable to multiple industrial facilities with potential to increase confidence for adoption.

Amended through AB 1280 (2025) to add project labor, community benefits, and equity components.

Industrial Decarbonization and Improvement of Grid Operations (INDIGO)

Action History

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