AB 1849 California Assembly · 2025-2026 Regular Session

Decarbonized gaseous fuels.

Summary

Existing law regulates the emission of air contaminants, including the oxides of nitrogen, into the atmosphere. Existing law generally vests regulatory jurisdiction over stationary sources of air pollution to the air pollution control districts and air quality management districts and regulatory jurisdiction over mobile sources of air pollution to the State Air Resources Board. This bill would require, on or before December 31, 2029, the state board to conduct an assessment of the amount of decarbonized gaseous fuels that will be needed to decarbonize hard-to-electrify end uses and maintain reliability in the electricity sector and to post the assessment on its internet website. The bill would require the assessment to include an assessment of the need for decarbonized gaseous fuels for each hard-to-electrify end use, as defined. The bill would require the state board, in assessing the policies and incentives, to consider, among other things, how to incentivize the increased production and use of decarbonized gas in California and how to maximize the benefits of decarbonized gas production and use in California, as provided.

Issues: ✓ Energy ✓ Environment

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 11, 2026 Last action May 14, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

04/06/26 - Amended Assembly → 04/15/26 - Amended Assembly · 7 edits · Apr 15, 2026

MODERATE

The April 15 amendment to AB 1849 extends the assessment deadline from December 31, 2027 to December 31, 2029, shifts terminology from 'hard-to-electrify sectors' to 'hard-to-electrify end uses' (excluding onroad transportation), and significantly weakens mandatory requirements by replacing 'ensure' language with 'consider' language. Most notably, it removes the requirement that policies be performance-based and technology-neutral, and removes the mandate that Cap-and-Invest regulated entities receive reduced compliance obligations for purchasing decarbonized gas.

Scope change

The bill's scope narrowed in two ways: onroad transportation is explicitly excluded from the definition of hard-to-electrify end uses, and the binding mandates on policy design (performance-based, technology-neutral, reduced Cap-and-Invest obligations) were converted to non-binding considerations. The geographic scope was clarified as California-specific.

TIMELINE

The deadline for the state board to conduct its assessment of decarbonized gaseous fuel needs was extended from December 31, 2027 to December 31, 2029, giving regulators two additional years.

DEFINITION

The defined term changed from 'hard-to-electrify sectors' to 'hard-to-electrify end uses,' with an explicit exclusion of onroad transportation. The board is now also required to identify which end uses have the highest potential for emissions reductions using decarbonized gaseous fuels.

REQUIREMENT

Removed the requirement that the state board ensure policies and incentives are performance-based and technology-neutral, and that the performance metric be based on life-cycle carbon intensity consistent with electricity and transportation fuel sector carbon reduction requirements.

Removed the mandate that entities regulated under the Cap-and-Invest Program shall have a lesser compliance obligation commensurate with purchases of decarbonized gas. This is now merely a factor to consider rather than a binding requirement.

The assessment now includes an evaluation of 'current and potential policies and incentives' rather than only 'recommended policies and incentives,' broadening the scope of what must be analyzed.

SCOPE

The overall regulatory posture shifted from prescriptive mandates (the board must 'ensure' specific policy characteristics) to advisory considerations (the board shall 'consider' various factors when assessing policies and incentives).

Multiple references to 'in California' were added throughout the bill, making the geographic applicability of decarbonized gas production, use, and benefits more explicit.

02/11/26 - Introduced → 04/06/26 - Amended Assembly · 8 edits · Apr 6, 2026

MODERATE

The amended version extends the deadline for the state board's decarbonized gaseous fuels assessment from 2027 to 2029, weakens several mandatory requirements to advisory ones, adds economic viability and cost considerations throughout, requires the assessment to be posted online, and introduces a formal definition of 'hard-to-electrify sectors' that explicitly excludes sectors already covered by the Low-Carbon Fuel Standard. These changes make the bill less prescriptive and more focused on economic analysis before policy recommendations are made.

TIMELINE

The deadline for the state board to conduct its assessment of decarbonized gaseous fuels needs was extended from December 31, 2027 to December 31, 2029, giving regulators two additional years.

REQUIREMENT

The state board is now required to post the completed assessment on its internet website, adding a public transparency obligation not present in the introduced version.

Subdivision (b) was changed from 'shall ensure' to 'shall consider,' downgrading the requirement that policies be performance-based and technology neutral from a mandatory standard to an advisory consideration.

The assessment must now include economic viability of decarbonized gaseous fuels in each sector and cost implications for both impacted businesses and end-use consumers, shifting focus toward affordability analysis.

New considerations were added requiring the state board to evaluate whether recommended policies align with carbon reduction targets in both the 2022 and 2027 scoping plans, and to recognize existing Cap-and-Invest compliance obligations.

DEFINITION

A new definition of 'hard-to-electrify sectors' was added, covering sectors that cannot technically, economically, or practically convert to electricity due to high heat, high energy density, or other operational factors (including cement, glass, steel, aviation, maritime fuel, and food processing). Sectors regulated under the Low-Carbon Fuel Standard are explicitly excluded.

SCOPE

The electricity reliability assessment was expanded to also cover 'resilience,' broadening the scope beyond just keeping the grid running to include resilience against disruptions.

The bill removed specific reference to 'delivery requirements' as a policy tool for ensuring decarbonized gases displace fossil fuel use in-state, replacing it with the broader term 'policies.'

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 14, 2026

Lower · Passed

In committee: Held under submission.

lower

May 6, 2026

Committee

In committee: Set, first hearing. Referred to APPR. suspense file.

lower

Apr 23, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (April 22). Re-referred to Com. on APPR.

lower

Apr 16, 2026

Committee

Re-referred to Com. on U. & E.

lower

Apr 15, 2026

Lower · Passed

Read second time and amended.

lower

Apr 14, 2026

Introduced

From committee: Amend, and do pass as amended and re-refer to Com. on U. & E. (Ayes 10. Noes 0.) (April 13).

lower

Apr 7, 2026

Committee

Re-referred to Com. on NAT. RES.

lower

Apr 6, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended.

lower

Apr 3, 2026

Lower · Passed

In committee: Hearing postponed by committee.

lower

Mar 16, 2026

Committee

Referred to Coms. on NAT. RES. and U. & E.

lower

Feb 12, 2026

Lower · Passed

From printer. May be heard in committee March 14.

lower

1 primary · 1 co-sponsor