California Air Resources Board

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 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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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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Summary

Authorizes the California Natural Resources Agency (CNRA), the California Environmental Protection Agency (CalEPA), or an entity within CNRA or CalEPA to enter into a direct agreement with the California Ocean Science Trust for the delivery of peer reviews, technical guidance, or scientific reports and analyses.

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Summary 

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. This included when the person knows or should know that: the greenhouse gas reductions or removal enhancements are unlikely to be quantifiable, real, and additional. This also included when the person knows or should know that the durability of the offset's reductions is less durable than the atmospheric lifetime of carbon dioxide emissions or the atmospheric lifetime of the greenhouse gases associated with the project's reductions are less than the lifetime of carbon dioxide, unless the person explicitly markets the offsets with that information. 

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Governor’s Veto Message

To the Members of the California State Senate:

I am returning Senate Bill 390 without my signature.

This bill makes certain actions related to voluntary carbon offsets subject to the False Advertising Law, including with respect to offsets that a person knows, or should have known, do not durably reduce greenhouse gases in an amount equal to the "atmospheric lifetime" of carbon dioxide emissions.

I support the author's intent to bring greater transparency to the verification, issuance, and sale of voluntary carbon offsets, and to address the problem of so-called "junk offsets." However, by imposing civil liability for even unintentional mistakes about offset quality, this bill could inadvertently capture well intentioned sellers and verifiers of voluntary offsets, and risks creating significant turmoil in the market for carbon offsets, potentially even beyond California. I encourage the author to consider an alternative approach to ensuring voluntary carbon offset quality that avoids these unintended consequences.

For these reasons, I cannot sign this bill.

Sincerely,

Gavin Newsom

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Summary

Requires CARB to create, contingent upon appropriation by the Legislature, a single unified education and application portal that would enable an applicant to apply with a single application, to at least all of the following programs: Clean Vehicle Rebate Project; the Clean Cars 4 All Program (CC4A); and the Clean Vehicle Assistance Project. The bill also requires CARB to adopt revisions to the aforementioned programs to ensure an opportunity to become prequalified for an incentive before the applicant purchases a vehicle, mobility option, or other item or service for which the incentive is provided. The bill allows CARB to post a report on its webpage if it deems any of these provisions infeasible to implement, with justification. The bill also requires the removal of conventional hybrids from the CC4A program beginning in 2025.

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Summary

Would have provided an exemption from the State General Fund portion of the Sales and Use Tax (3.9375 percent) for qualified motor vehicles, which are defined as meeting the following requirements: (1) a vehicle eligible for an incentive under CARB’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP); (2) a zero-emission vehicle over 8,500 Gross Vehicle Weight Rating (GVWR); (3) the purchase of the vehicle was not made using a voucher through HVIP; and (4) is a new vehicle. This bill also would have required CARB to maintain an updated website listing vehicle eligibility. This bill would have required the California Department of Tax and Fee Administration to provide a report to the Assembly Committee on Revenue and Taxation and the Senate Committee on Governance and Finance on the use of the exemption. This bill would also have specified that for sales made on or after January 1, 2025, the exemption does not apply to transactions where the purchaser has received an HVIP voucher. Finally, this bill provisions would have sunset and been repealed on January 1, 2027. Held on suspense in the Assembly Appropriations Committee.

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Summary

Would have required a State agency that significantly regulates or impacts nonprofit corporations to designate a person to serve as a nonprofit liaison if the use of existing personnel and resources allows for performance of the duties of the nonprofit liaison. The bill would have established the nonprofit liaison’s duties, including responding to complaints by nonprofit corporations about the State agency and assisting nonprofit corporations with complying with the State agency’s regulations and relevant statutes. Was amended to focus on Department of General Services.

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Category:  Administrative Procedures

Summary 

Prohibits the injection of a concentrated carbon dioxide fluid produced by a carbon dioxide capture project or carbon dioxide capture and sequestration project into a Class II well for the purposes of enhanced oil recovery.

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Summary

Would provide an exemption from taxes with respect to the sale in this state of, and the storage, use, or other consumption in this state of, a qualified motor vehicle. The bill defines “qualified motor vehicle” as a specified zero-emission truck. The bill would disallow the exemption for sales or uses made on or after January 1, 2025, if the purchaser also received other specified benefits. The bill would provide that this exemption does not apply to specified state sales and use taxes from which the proceeds are deposited into the Local Revenue Fund, the Local Revenue Fund 2011, or the Local Public Safety Fund. Moved to the Senate Inactive File.

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