California Air Resources Board

Amends existing law related to allocating moneys deposited into the Greenhouse Gas Reduction Fund including requiring interest income to be deposited into the fund.

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Amends the Budget Act of 2026 to make additional appropriations for CARB, including funding for land use grants and the FARMER program.

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Makes appropriations for the support of State government for the 2026-27 fiscal year.

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Authorizes CARB to impose a fee under the Transport Refrigeration Unit Regulation.

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Appropriates $132 million from the Hino Motors Ltd. Settlement to the Heavy-Duty Vehicle Incentive Program and authorizes CARB to adopt fees to cover reasonable costs for deficiencies of off-road or nonvehicular engines and equipment, aftermarket parts, and emissions control components sold in the State.

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Makes appropriations for regional Clean Cars 4 All programs and Community Air Protection Programs.

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Makes appropriations for the support of the State government for the 2025-26 fiscal year.

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Makes appropriations for the support of the State government for the 2025-26 fiscal year including Includes an appropriation for $19.8M to regional Clean Cars 4 All programs.

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Summary

Would have created the Climate Cashback Program to be administered by the Franchise Tax Board for the public purpose of mitigating the costs of transitioning to a low-carbon economy. The bill would have required the Franchise Tax Board to develop and implement the program by December 31, 2024, to deliver quarterly per capita cashback payments to all California residents and set other requirements for the operation of the program. Was not heard in the Assembly Natural Resources Committee.

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Summary

Would have created the California Compost Tax Credit Fund providing refundable tax credits for California farmers, ranchers, and landowners who employ farming practices that maximize carbon sequestration through the utilization of compost on natural and working lands. Would have transferred one percent of annual Greenhouse Gas Reduction Fund proceeds, not exceeding $120 million per fiscal year through FY 2035-36 to the California Compost Tax Credit Fund. Held on suspense in the Senate Appropriations Committee.

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