California Air Resources Board

Would have stated the intent of the Legislature to enact legislation that would require the State to consider any potential cost burden to Californians as it works on achieving its climate goals, including its greenhouse gas emissions goals and standards under AB 32. The bill was amended to deal with farm workers.

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Would have required CARB, by January 31, 2026, to reconsider and revise the Low Carbon Fuel Standard to reduce the program's financial burden on drivers in the State. Would have required CARB, in doing so, to do all of the following: provide a complete analysis of the passed-through costs of carbon credits to drivers, including a comparison to prior methodologies; prioritize changes that directly benefit individual drivers, including revising carbon credit structures to multiply credit generation for certain pathways aligned with State priorities; evaluate the extent to which changes can be made to prioritize in-State projects and benefits; and analyze impacts that adjusting the credit price cap for the Credit Clearance Market would have on program cost and investment capabilities. Held on suspense in the Senate Appropriations Committee.

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Has a variety of provisions regarding California’s gasoline specification, including allowing the Governor to suspend specification requirements in certain conditions and requiring the California Energy Commission (CEC)to assess alternative specifications, evaluate the possibility of a western region gasoline specification, and recommend strategies to support the state’s fuel transition. The bill also has provisions to improve oil and gas facility safety, including requiring more public input for the Department of Fish and Wildlife’s Office of Spill Prevention and Response to solicit and incorporate public input on worst case oil spill volumes and financial responsibility requirements and requiring testing for idle oil pipelines and use of best technology for onshore transport of offshore oil. Additionally, the bill allows increased oil extraction in Kern County but prohibits new production in health protection zones.

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Voids specified amendments to the Low Carbon Fuel Standard that were adopted in November 2024. The bill includes an urgency, citing incorrect potential price increases as the facts constituting the necessity. Failed passage in the Senate Environmental Quality Committee and was granted reconsideration.

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Adds sustainable aviation fuel projects to the list of infrastructure projects eligible for CEQA judicial review streamlining by the Governor. The bill specifies that the Governor shall ensure that for these projects, the applicant agrees to pay specified trial and administrative costs and is undertaking specified administrative procedures. Was not heard in the Senate Environmental Quality Committee.

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Would have required CARB, on a quarterly basis, to submit a report to the Legislature providing data and describing the impact of its regulations on the prices of transportation fuels, including but not limited to, the Low Carbon Fuel Standard. Held on suspense in the Assembly Appropriations Committee.

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Would have required CARB, the California Geologic Energy Management Division (CalGEM), and other relevant State agencies to collaborate with the California Energy Commission (CEC) in preparing the transportation fuel assessment and provide any information CEC deems necessary to complete the assessment. The bill was amended to deal with unemployment discrimination.

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Requires CARB, in consultation with the California Energy Commission (CEC), before adopting or amending a regulation that imposes costs on gasoline refiners, distributors, or retailers, to make public, including on its website an estimate of the impact on retail gasoline prices. The bill requires this estimate to include a maximum estimated impact on retail gasoline prices that assumes the maximum possible cost to refiners, distributors, or retailers, and that all costs are passed on to consumers. Was not heard in the Assembly Natural Resources Committee.

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Prohibits CARB from adopting any standard, regulation, or rule, that affects the Low Carbon Fuel Standard or the Cap-and-Trade program, until the Legislative Analyst has analyzed the cost to the consumer from the impact on the price per gallon of fuel or price per kilowatt house of electricity of the proposed standard, regulation, or rule and submitted its analysis to the Legislature. Was not heard in the Assembly Natural Resources Committee.

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Requires California Energy Commission CEC and the California Public Utilities Commission CPUC to post, and update monthly, dashboards on their websites that includes the difference in average gasoline prices and the average total price of electricity or natural gas prices in California compared to national averages, and any California-specific taxes, fees, regulations, and policies that directly or indirectly contribute to those prices. If the average price of gasoline, electricity, or natural gas exceeds 10% of the natural average, the bill requires for 6 months: taxes and fees on gasoline to be suspended; fees on electricity and natural gas to be suspended; and require CARB to suspend the requirements of the Cap-and-Trade program for an oil refinery, electrical corporation, or gas corporation. The bill requires the CEC to develop a rebate methodology to compensate Californians for the higher cost of gasoline, electricity, and natural gas and for the Controller to provide rebates, funded by the Greenhouse Gas Reduction Fund. Was not heard in the Assembly Utilities and Energy Committee.

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