California Air Resources Board

Would have suspended the Low Carbon Fuel Standard, the application of the Cap-and-Invest program to transportation fuels, and the imposition of the tax on motor vehicle fuels for one year from the effective date of the bill. Would have required all savings from the suspensions to be passed on to an end consumer, with specified enforcement mechanisms. Would have required the Controller to transfer funding from the General Fund to the Greenhouse Gas Reduction Fund equivalent to the sale of allowances to the suppliers of transportation fuels in the 2024-2025 fiscal year. Would have also required the Controller to transfer funds from the General Fund to the Motor Vehicle Fuel Account in the Transportation Tax Fund equivalent to the loss in revenue from the suspension of the tax on motor vehicle fuels.  Was not heard in Senate Environmental Quality Committee. 

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Would have changed the process State agencies use to adopt major regulations. After submitting a standardized regulatory impact assessment (SRIA) to the Department of Finance, a proposal must then go to the Legislature, which would recommend legislation to authorize the adoption of the major regulation. A major regulation cannot be adopted unless a law passes that specifically allows the state agency to adopt that major regulation. State agencies are allowed to adopt major emergency regulations if the regulation is necessary to address an emergency; the regulation is adopted in accordance with subdivisions (a) to (d), inclusive, of California Government Code Section 11346.1; and the regulation is in effect for no more than 180 days. The emergency regulation can be readopted for no more than two 90-day periods, if a SRIA is prepared and submitted to the Department of Finance and a proposal recommending legislation to allow the adoption of the major regulation is submitted to the Legislature. Failed passage in the Senate Committee on Governmental Operations and was granted reconsideration.

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Eliminates the continuous appropriation of 25% of the annual proceeds of the Greenhouse Gas Reduction Fund (GGRF) to the High-Speed Rail Authority on June 30, 2026, and beginning with the 2026–27 fiscal year, and until December 31, 2030, requires 25% of the annual proceeds of the GGRF to be transferred to the Motor Vehicle Fuel Account (MVFA). Beginning July 1, 2026, and before January 1, 2031, the bill reduces the rate of the tax imposed upon each gallon of fuel by a specified percentage based annually on the amount transferred to the MVFA from the GGRF. Failed passage in the Senate Environmental Quality Committee and was granted reconsideration.

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