(

a) In providing financial incentives pursuant to this article, the commission shall give preference to an eligible project that does one or more of the following:

(1) Provides significant benefits to the electrical grid, especially during net peak periods.

(2) Maximizes the reduction of the emissions of greenhouse gases.

(3) Reduces air pollution in under-resourced communities.

(4) Is located in an under-resourced community, as defined in

Section 71130, or in an area out of compliance with the applicable federal Clean Air Act (42 U.S.C.

Sec. 7401 et seq.) deadlines in nonattainment areas.

(5) Develops a community benefit fund or agrees to pursue a community benefits agreement with the surrounding community and other affected stakeholders. (

b) In providing financial incentives pursuant to this article, the commission shall prioritize an eligible project that reduces demand during net peak periods. (c)

(1) The commission shall consult with the State Air Resources Board to ensure that financial incentives provided pursuant to this

article reduce the emissions of greenhouse gases under the statewide greenhouse gas emission limits in furtherance of the state’s greenhouse gas reduction targets, to the extent feasible under the State Air Resources Board’s regulatory programs.

(2) To comply with the requirements of this subdivision, the commission may require a recipient of a financial incentive to surrender to the State Air Resources Board the number of annual allowances allocated at no cost to the eligible industrial facility pursuant to the market-based compliance mechanism developed pursuant to

Part 5 (commencing with

Section 38570) of Division 25.5 of the Health and Safety Code equivalent to the greenhouse gas emissions reduced by the eligible project. (

d) A recipient of a financial incentive pursuant to this

article shall not receive more than percent of the moneys allocated pursuant to this article.