California Air Resources Board

Would have required California Environmental Protection Agency to conduct a study on the costs of climate change to the State and requires responsible parties with greenhouse gas emissions greater than 1 billion metric tons globally from 2000 to 2020 to pay a cost recovery demand proportionate to their share of emissions compared to total anthropogenic greenhouse gas emissions. Would have authorized responsible parties to pay the cost recovery demand in 20 annual installments, with the first installment equaling 10% of the cost recovery demand. Would have created the Polluters Pay Climate Fund and continuously appropriated the funding generated by the cost recovery demands to the Fund for projects that avoid, mitigate, repair, or adapt to negative climate change impacts, with a minimum of 40% of funded projects benefitting environmental justice populations. Moved to the Inactive File.

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Would have created the Gravity-Based Energy Storage Well Pilot Program and authorized the Supervisor of the California Geologic Energy Management Division (CalGEM) to authorize the conversion of 1,000 wells for use as gravity-based energy storage wells, as defined. Would have required the California Environmental Protection Agency, in consultation with entities operating these wells, CalGEM, CARB, and other specified entities, to evaluate the pilot program and make recommendations to the Legislature for a framework to implement a permanent program, as specified. Would have required a well operator to notify CalGEM, CARB, the appropriate regional water quality board, and any schools or community members within 3,200 feet of the well in the event of a loss of mechanical integrity or a fluid leak and required CalGEM to consult with CARB and the State Water Resources Control board on criteria for fluid leak monitoring and reporting. Held on suspense in the Assembly Appropriations Committee.

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Would have required CARB to annually produce an assessment of the greenhouse gas (GHG) emissions associated with the transportation of oil in California, as specified, and to include the assessment on CARB's internet website. Requires the California Energy Commission to provide specified data to CARB consistent with existing law on confidentiality of business records. Held on suspense in the Senate Appropriations Committee.

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Would have made it unlawful for a person to certify or issue a voluntary carbon offset, to maintain a voluntary carbon offset on a registry, or to market or sell a voluntary carbon offset under specified circumstances. Would have included when the person knows or should know that: the greenhouse gas reductions or removal enhancements are unlikely to be quantifiable, real, additional, meet the durability commitment made by the project operator, or last less than 1,000 years. Would have created an exception if the person explicitly markets the offsets with that information and specifies the provisions of the bill do not apply to compliance credits or registry offset credits. Was not heard in the Assembly Natural Resources Committee.

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Would have eliminated the requirement for CARB to credit dairy methane projects for a minimum of 10 years and prohibited CARB from guaranteeing those credits if they would not otherwise generate credits in the program. The bill also would have required CARB to include new specific emissions when calculating a carbon intensity value for dairy methane projects, limited credit generation to historical herd size, and required public disclosure of specified information in fuel pathway applications from dairy methane projects. Held on suspense in the Senate Appropriations Committee.

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Would have clarified that incidental and unintentional expulsion of residual oil from injection of carbon dioxide fluid as part of a carbon capture and sequestration project shall not be considered enhanced oil recovery and would have prohibited the sale or trade of that residual oil. Did not receive a vote in the Assembly Natural Resources Committee.

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Would have required CARB to adopt regulations or utilize existing programs and regulations to ensure the State achieves carbon dioxide removals equivalent to at least 100% of GHG emissions by 2045. The bill would have required CARB to only certify carbon dioxide removal processes that meet specified requirements, including that they be consistent with statutory requirements for geologic storage projects. Would have required CARB to conduct a community engagement process, as specified, before adopting a regulation pursuant to the bill. Held on suspense in the Assembly Appropriations Committee.

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Would have suspended the Low Carbon Fuel Standard regulation for one year and exempted suppliers of transportation fuels from the Cap-and-Trade program for one year. The bill also would have suspended motor vehicle fuel taxes and required the State Controller to transfer an amount equal to State motor vehicle fuel tax revenue from the General Fund to the Motor Vehicle Fuel Account. Finally, the bill would have required the State Controller to transfer an amount equal to the sale of allowances to the suppliers of transportation fuels under the Cap-and-Trade program in the 2021-2022 fiscal year to the General Fund. Failed passage and was granted reconsideration in the Senate Environmental Quality Committee.

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Requires CARB to ensure that the multimedia evaluation of gasoline containing up to 15% ethanol by volume is completed by July 1, 2025. Requires CEC to submit report to the Legislature on or before July 1, 2025, regarding potential solutions to increase the supply of gasoline through the production enhancement strategies identified by the commission in its 2024 assessment submitted to the Legislature and the Governor, as specified. Remains in the Senate Rules Committee.

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Would have required California Energy Commission to post and regularly update a dashboard on its website that includes the identification of all California-specific taxes, fees, regulations, and policies that contribute to gasoline prices within the State; the relative contribution of each of those to higher costs; and the extent to which these higher costs are passed on to consumers. Would have required the dashboard to also include the difference in average California gasoline prices compared to national prices, and any substantiated evidence of price gouging or other anticompetitive behavior within the petroleum industry, including the relative contribution of this behavior to the price difference. Remains in the Assembly Rules Committee.

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