AB 168 California Assembly · 2025-2026 Regular Session

Public Resources.

AB 168 expresses the California Legislature's intent to enact statutory changes to the Budget Act of 2025. This procedural bill does not make immediate changes to the state budget or laws but formally sets the stage for future legislative action on budget-related statutes. It directly affects the legislative process by directing the Legislature to consider specific statutory updates for the 2025 budget cycle. The bill serves as a preparatory step, not a policy change itself.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Jun 2026

Assembly Passage

Mar 2025

Senate Passage

Governor

Introduced Jan 8, 2025 Last action Aug 6, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

06/26/26 - Amended Senate → AB168 · 2 edits

MINOR

This diff reflects a change in document presentation format rather than substantive policy changes. The bill text was reformatted from a traditional legislative document layout (with line numbers, page headers, and footers) into a web page format with navigation elements such as quick search, bill information links, and accessibility options. All statutory provisions remain identical between the two versions.

TECHNICAL

The document was reformatted from a traditional legislative print layout (with line numbers, page headers like '98' and 'AB 168', and page footers) into a web-based presentation format with navigation menus, quick search fields, and hyperlinked sections.

Website navigation elements were added including skip to content, home, accessibility, FAQ, feedback, sitemap, login, quick search by bill number or keyword, and links to bill information, text, votes, history, analysis, comments, and tracking features.

01/08/25 - Introduced → 06/26/26 - Amended Senate · 8 edits · Jun 26, 2026

MODERATE

AB 168 was transformed from a placeholder bill expressing only legislative intent into a full budget-related omnibus containing multiple substantive policy provisions. The amended version adds a new zero-emission vehicle incentive program for first-time buyers, modifies wildfire fund contribution rules, extends energy program funding deadlines, adjusts an Energy Commission vice chair salary, and exempts the Western Climate Initiative from state contract act requirements.

Scope change

The bill expanded from a single-section placeholder expressing legislative intent to a 12-section omnibus covering energy policy, transportation incentives, wildfire funding, and public utilities regulation. It now takes effect immediately as a budget-related appropriation bill and imposes a state-mandated local program (with no reimbursement required).

FISCAL

Establishes a new zero-emission electric vehicle incentive program for first-time ZEV buyers, funded by 2026 Budget Act items. Incentives are provided at point of sale for new and used light-duty passenger EVs registered to California residents, matched by participating manufacturers. Price caps: $50,000 for new vehicles, $25,000 for used vehicles. Curb weight limit of 8,500 pounds. Inoperative September 1, 2031; repealed January 1, 2032.

Makes moneys appropriated in the Budget Act of 2021 for the Distributed Electricity Backup Assets Program also available for the Demand Side Grid Support Program, and extends the availability period for encumbrance or expenditure from June 30, 2026 to June 30, 2027.

Modifies the allocation metric used to determine each large electrical corporation's share of the first $6 billion in fire risk mitigation capital expenditures excluded from equity rate base, now referencing the Wildfire Fund allocation metric in Section 3299.3. Expenditures after December 31, 2035 are not covered.

ELIGIBILITY

Creates an exception to the vehicle price caps for California-headquartered zero-emission vehicle companies (corporations with US headquarters in California whose entire fleet is zero-emission). A severability clause preserves the rest of the section if this provision is held invalid by a court.

REQUIREMENT

Requires participating manufacturers to disclose to consumers the portion of the incentive coming from the state, and prohibits reselling or releasing vehicles purchased with the incentive in another state for at least 4 years after purchase or lease.

Changes the Wildfire Fund Continuation Account rules so that the administrator determines whether existing annual contributions (rather than additional annual contributions) are needed, with a deadline of December 31, 2028. Adds requirements for annual plans of operations and reports to the Legislature.

Provides that the vice chair of the Energy Commission shall receive an annual salary at the midpoint between regular commission members and the chairperson, operative July 1, 2027.

TECHNICAL

Exempts contracts with the Western Climate Initiative, Incorporated from the State Contract Act provisions relating to acquisition of information technology goods and services, and classifies such contracts as membership agreements.

Floor votes · Assembly Mar 20, 2025

How they voted

52–17

Passed · 10 other

Total votes 79

Mar 20, 2025

D Democratic59

52 Yea 7

88% Yea

R Republican20

17 Nay 3

85% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 29, 2026

Upper · Passed

From committee: Do pass. (Ayes 13. Noes 5.) (June 29).

upper

Jun 26, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.

upper

Apr 2, 2025

Committee

Referred to Com. on B. & F. R.

upper

Mar 20, 2025

Lower · Passed

Read third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 747.)

lower

Feb 3, 2025

Committee

Referred to Com. on BUDGET.

lower

Jan 9, 2025

Lower · Passed

From printer. May be heard in committee February 8.

lower

0 primary · 0 co-sponsors

What changed between versions

How they voted

Actions timeline

Sponsors