California Air Resources Board

Would have required all State agencies, departments, boards, offices, commissions, and conservancies to consider the 30x30 goal of conserving 30% of California’s lands and coastal waters by 2030 as established by Executive Order No. N-82-20 when adopting, revising, or establishing plans, policies, and regulations. Held on suspense in the Assembly Appropriations 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 

Would have allowed the California Natural Resources Agency to authorize teal carbon demonstration projects and develop, with consultation from CARB and other parties, a teal carbon demonstration project program starting January 1, 2028. The bill would have also allowed the California Coastal Commission (Commission) to authorize blue carbon demonstration projects and develop, with CARB and other parties, a blue carbon demonstration project program. The bill would have allowed the Commission to require an applicant with a nonresidential project that impacts coastal wetland, subtidal, intertidal, or marine habitats or ecosystems to build or contribute to a blue carbon demonstration project. The bill would have required these provisions (both teal and blue carbon demonstration projects programs) to be implemented only upon an appropriation by the Legislature for its purposes.

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Governor’s Veto Message

To the Members of the California State Assembly:

I am returning Assembly Bill 1992 without my signature.

This bill would authorize the California Coastal Commission and the California Natural Resources Agency to facilitate the development of blue and teal carbon demonstration projects in certain coastal areas and inland wetlands.

California is a global leader in advancing nature-based carbon capture and sequestration solutions, having built and expanded our portfolio of actions over decades. In fact, between 2020 and 2023 alone, the State invested approximately $9.6 billion in nature-based solutions. Additionally, I signed Assembly Bill 1757 (C. Garcia) in 2022, which required the State to develop achievable carbon removal targets for natural and working lands. This same year, the Natural and Working Land Climate Smart Strategy cataloged over 350 efforts across State agencies to deliver meaningful nature-based solution climate action.

While I share the author's desire to accelerate novel nature-based climate solutions, this bill creates a new, unfunded program. In partnership with the Legislature this year, my Administration has enacted a balanced budget that avoids deep program cuts to vital services and protected investments in education, health care, climate, public safety, housing, and social service programs that millions of Californians rely on. It is important to remain disciplined when considering bills with significant fiscal implications that are not included in the budget, such as this measure.

For these reasons, I cannot sign this bill.

Sincerely,

Gavin Newsom

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Summary 

An earlier version of this bill would have required CARB, on or before August 1, 2026, in consultation with the California Department of Food and Agriculture, to create a feed additive program, including voluntary incentives, to reduce emissions from dairy cattle, and would have required CARB to convene a workgroup to complete a comprehensive assessment of the potential impacts of feed additives on dairy cattle. Amended to deal with elections.

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Summary 

Updates AB 1757 (C. Garcia, Chapter 341, Statutes of 2022) by removing language that made natural and working lands emissions reduction projects and actions that receive state funding ineligible to generate credits under a market-based compliance mechanism and instead requires CARB to ensure that all greenhouse gas emissions reductions and removals used for any market-based compliance mechanism are in addition to any reductions and removals that would otherwise occur.

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Summary 

Requires any commercial feed, feed additive, or drug approved by the United States Food and Drug Administration that is fed to livestock to be under the oversight of the California Department of Agriculture as the primary State regulatory agency, including, but not limited to, products that make environmental and health claims. This provision explicitly does not limit the CARB’s authority in Section 39730.7 of the Health and Safety Code.

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Summary 

Would have required CARB by December 31, 2025, to include in the SB 901 (Dodd, 2018) report, a methodology to quantify GHG and short-lived climate pollutant emissions, including black carbon from wildfire, pile burning, and forest management activities and a list of the data needed to use the methodology. This bill also would have established a Forest Waste Biomass Utilization Program to be administered by the State Board of Forestry and Fire Protection’s Joint Institute for Wood Products Innovation, required the California Natural Resources Agency to facilitate the inclusion of recommendations for forest biomass waste utilization in relevant State climate adaptation plans, and required the California Energy Commission to report on innovative bioenergy technologies that utilize forest biomass waste. This bill was similar to AB 2878 (Aguiar-Curry, 2022).  Held on suspense in the Assembly Appropriations Committee. 

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Summary 

Would have authorized the California Coastal Commission to require an applicant with a project that impacts coastal wetland, subtidal, intertidal, or marine habitats or ecosystems to build or contribute to a blue carbon demonstration project, as defined, and would have required the California Coastal Commission to consult with CARB and other specified entities in developing a blue carbon demonstration project program. Each blue carbon demonstration project would have to be designed, monitored, and have sufficient data collected to demonstrate the carbon uptake and sequestration achieved and results would have to be presented to the California Coastal Commission in a public hearing. This bill was similar to AB 2593 (Boerner, 2022). Held on suspense in the Senate Appropriations Committee.

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