California Air Resources Board

Voids specified amendments to the Low Carbon Fuel Standard that were adopted in November 2024. Was not heard in the Assembly Natural Resources Committee.

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Would have required the California Energy Commission (CEC), in coordination with the State Lands Commission, California State Transportation Agency (CalSTA) and CARB, to develop a plan by December 31, 2030, for the alternative fuel needs of oceangoing vessels at seaports that will enable the ports to meet their emission reduction goals. CARB would have been required to provide the CEC with information regarding OGV fuel types that comply with CARB's regulations. The bill also would have required the CEC to convene a working group, including CARB, to assist with the development of the information required by the plan, as specified.

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Governor’s Veto Message

To the Members of the California State Senate:

 I am returning Senate Bill 298 without my signature.

 This bill would require the California Energy Commission (CEC), in coordination with the State Lands Commission, California State Transportation Agency, and the California Air Resources Board (CARB), to develop a plan by December 31, 2030, for the alternative fuel needs of Ocean-Going Vessels (OGVs) at ports that will meet ports' emission reduction goals.

 As the nation's premier gateway for international trade, California's ports are an essential component of the nation's economy. I strongly support efforts to plan and deploy zero-emission infrastructure and technologies at our ports. This is why CARB has already begun the informal rulemaking phase for an OGV In-Transit Regulation to reduce harmful air pollution from OGVs while transiting, maneuvering, and anchoring in waters off the California coastline.

 Though well-intentioned, the plan required by this bill could complicate CARB 's active OGV In-Transit rulemaking and result in costs to the CEC's primary operating fund, which is currently facing an ongoing structural deficit, thus exacerbating the fund's structural imbalance. I encourage the supporters of this measure to work with CARB through its rulemaking process to collaboratively identify solutions for deploying alternative fuels at our ports.

 For these reasons, I cannot sign this bill.

 Sincerely,

Gavin Newsom

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Would have expanded the fuels allowed by the Ocean-Going Vessel Fuel Regulation to include any fuel that has a lower carbon intensity than marine diesel oil or marine gas oil for the auxiliary engines, main engines and auxiliary boilers. Amended to deal with paratransit recertification eligibility.

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Establishes the Lower Emissions Cargo Handling Equipment Pilot program and prohibits CARB from adopting a future regulation that requires the replacement of cargo handling equipment before the end of its useful life (from date of delivery) if it is purchased before December 31, 2027, meets the EU zero-emission standard, and meets specified certification and labeling requirements. The useful life of the equipment cannot be longer than what is outlined in CARB's 2005 Mobile Cargo Handling Equipment regulation. This bill states that it is self-executing and does not require any implementing or interpretive rulemaking by CARB or any other agency to become operative. Was not heard in the Senate Environmental Quality Committee.

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Would have required CARB to publish a yearly assessment of the greenhouse gas (GHG) emissions associated with the transportation of oil in California from the point of origin to its point of destination in California, for oil produced out of state and in state. Would have also required the state board to post on its internet website a report on the air quality impact of potentially importing 5% to 10% of the State’s gasoline supply using tanker ships. Held on suspense in the Senate Appropriations Committee.

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Authorizes transportation fuel blends of up to 15% ethanol (E15) until the California Environmental Policy Council completes its review of those blends and CARB either adopts a regulation establishing a specification for those blends or posts an assessment on its website demonstrating that it is not possible for a regulation for those blends to meet specified requirements. The bill contains an urgency clause.

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This bill 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 would have also 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. Remains in the Senate Rules Committee.

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Prohibits the sale of leaded aviation gasoline beginning January 1, 2031, in compliance with Section 47107 of Title 49 of United States Code.

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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 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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