California Air Resources Board

Would have established the Public Utilities Public Purpose Programs Fund (PUPPPF) and stated that the Legislature may use funds from the Greenhouse Gas Reduction Fund for the PUPPPF. The State Energy Resources Conservation and Development Commission must decide on and publish the amount of money necessary to fund the public purpose programs and programs run by electrical regional energy networks each year. The Commission may consider this amount when deciding how much money to set aside for these programs. The purpose of the PUPPPF is to provide money to energy providers for electrical efficiency, conservation, and renewable energy programs. The PUPPPF also must pay for energy rate assistance programs instead of the programs being paid for by gas and electric customers. Current law requires electrical and gas companies to createa single website that provides up-to-date information about gas and electric customer-funded energy efficiency assistance programs. This bill would have updated these requirements to include changes made to how energy rate assistance programs are paid for. Additionally, this bill would have paid back electrical corporations for their help with home insulation assistance. Held on suspense in the Assembly Appropriations Committee.

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Would have added a requirement that a dwelling unit must be able to stay at or below 82°F using a safe, nonmechanical cooling method to be tenantable. If an air conditioning unit is replaced, the bill requires landlords to dispose of unused refrigerants pursuant to CARB regulations. Was not heard in the Assembly Judiciary Committee.

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Would have established the Biomass Innovation Park Grants and Financing Program, to be administered by the California Natural Resources Agency (CNRA). Would have required CNRA to facilitate the process of identifying eligible parks, develop guidelines for soliciting proposals, and specify requirements for each park.

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Governor’s Veto Message

To the Members of the California State Assembly:

I am returning Assembly Bill 1666 without my signature.

This bill would establish the Biomass Innovation Park Grants and Financing Program, to be administered by the Natural Resources Agency, to identify biomass innovation parks.

I thank the author for his commitment to advancing the use of wood biomass to improve forest health and build wildfire resilience. In partnership with the Legislature, my administration allocated $50 million from the Climate Bond to the Department of Conservation to develop a program to fund the development of large-scale biomass facilities and identify opportunities to accelerate the utilization of wood waste biomass.

The program proposed in this measure would require additional resources not included in this year's budget. With significant fiscal pressures and the federal government's hostile economic policies, it is vital that we remain disciplined when considering bills with significant fiscal implications that are not included in the budget.

For these reasons, I cannot sign this bill.

Sincerely,

Gavin Newsom

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Declares it is the established policy of the State that all dwelling units be able to attain and maintain a safe maximum indoor temperature and directs specified State agencies, including CARB, to consider this policy when carrying out its activities. The bill provides that it does not expand any obligation of the State to provide a safe maximum indoor temperature or require the expenditure of additional resources to develop infrastructure beyond the obligations that exist under current program requirements.

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Allows California gas corporations to include renewable natural gas interconnection in their rate base investments. Adds a provision regarding the displacement of conventional natural gas reducing greenhouse gas emissions as a potential eligibility element for California biomethane. Was not heard in the Senate Energy, Utilities, and Communications Committee.

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Would have, among other things, called for a comparative analysis of the benefits and challenges of transitioning California’s electrical corporations to a successor entity. Held on suspense in the Assembly Appropriations Committee.

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Would have for the installation of residential heat pump HVAC systems and heat pump water heaters, required the California Energy Commission to develop standardized permitting checklists, establish limits and requirements for local agency permitting, and cap permit fees, among other things. The bill was sponsored by the Bay Area Air Quality Management District. Held on suspense in the Senate Appropriations Committee.

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Urgency bill enacting various policies related to electrical corporations, including authorizing public financing and ownership of electric transmission infrastructure; addressing wildfire mitigation spending and financing; liability of wildfire property claims; permitting of clean energy projects; transparency of electrical corporations’ return on equity; enforcement of timeliness of energization projects; prohibitions on large electrical corporations from including in their equity rate base an additional $6 billion of wildfire mitigation capital expenditures.

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Extends the current January 1, 2026, sunset date for the California Alternative Energy and Advanced Transportation Financing Authority’s sales and use tax exclusion program to January 1, 2028, adds fusion energy as an eligible alternative source, and modifies the stated purpose of the program to promote high-quality jobs and ensure that California communities and workers benefit from projects receiving financial assistance under the program.

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Specifies thermal energy storage for multiple existing financial incentive programs administered by the California Energy Commission and the California Infrastructure and Economic Development Bank relating to industrial decarbonization. CARB is in a consultation role. The bill places additional requirements on program participants such as mandating project labor agreements and establishing a community benefits fund or agreement.

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