Energy: renewable electrical generation facilities: definition.

A new Section 3 declares the bill an urgency statute taking effect immediately. The stated justification is to preserve over $675 million in tax credits, allow the Commission to begin implementation this year or by early 2027, and provide a market signal for utilities to contract for renewable hydrogen procurement before implementation.

The vote requirement changed from simple majority to two-thirds of each house, which is the constitutional requirement for urgency statutes.

Two previously separate air quality criteria were consolidated into one. The old text had a standalone criterion requiring 'a net decrease of air pollutants' and a separate one requiring the air district to confirm NOx would not increase compared to natural gas. The new combined criterion requires the air district to confirm that hydrogen combustion 'will result in a net decrease of air pollutants and of greenhouse gas emissions from the electrical sector and will not increase the oxides of nitrogen emissions rate from the turbine compared to natural gas.' This makes the net-decrease requirement explicit for both air pollutants and greenhouse gases within a single confirmation.

The hydrogen feedstock source requirement was narrowed. Previously it required hydrogen to be 'solely derived from a non-fossil-based an eligible renewable feedstock or through the electrolysis of water.' Now it requires hydrogen to be 'solely derived from an eligible renewable feedstock resource described in subparagraph (A)' - meaning the feedstock must come from one of the specific renewable technologies already listed in the definition (biomass, solar thermal, photovoltaic, wind, geothermal, fuel cells, small hydro, digester gas, municipal solid waste conversion, landfill gas, ocean wave, ocean thermal, or tidal current).

Assembly Member Dixon was added as a coauthor.

Website navigation elements, search tools, version history list, and metadata fields (Vote: 2/3, Appropriation: NO, Fiscal Committee: YES, Local Program: YES) were added as part of the web publication format.

The bill was assigned Chapter 35 and specific dates were filled in: Approved by Governor June 29, 2026, and Filed with Secretary of State June 29, 2026.

Formal enrolled document elements (Senate/Assembly passage stamps, signature lines for Secretary of the Senate, Chief Clerk of the Assembly, and Private Secretary of the Governor) were removed in favor of the web-published format.

Procedural header changed from enrolled bill format (blank chapter number, 'Passed the Senate/Assembly June 29, 2026', blank lines for Governor receipt) to chaptered law format ('CHAPTER 35', 'Approved by Governor June 29, 2026. Filed with Secretary of State June 29, 2026.', authentication stamp).

Page numbering and footer formatting adjusted from enrolled bill style (SB 1350 page headers) to chaptered law style (Ch. 35 page headers).

Changed the feedstock requirement from 'non-fossil-based feedstock' to 'an eligible renewable feedstock,' which is a narrower and more specific standard that may exclude some previously qualifying hydrogen sources.

Tightened the electrolysis requirement by adding the word 'exclusively' before 'uses electricity generated from another renewable electrical generation facility,' meaning no portion of the electricity can come from non-renewable sources.

Added a new exclusion: any fraction of hydrogen produced through the use of nonrenewable fuels or nonrenewable electricity is not eligible to satisfy the section's requirements. This prevents partial credit for mixed-source hydrogen.

Shifted the authority to determine resource shuffling from the State Air Resources Board (CARB) to the California Energy Commission, and changed the criteria from 'alignment with existing regulations' to specific regional impact analysis of zero-carbon generation, local air pollution, and fossil fuel generation.

Added new requirement (viii): the facility operator must provide the commission with confirmation from the local air quality management district or air pollution control district that hydrogen combustion will not increase the oxides of nitrogen (NOx) emissions rate from the turbine compared to natural gas.

Added new requirement (ix): the hydrogen must be physically delivered to the turbine, preventing virtual or accounting-based claims for hydrogen that is not actually delivered to the facility.

New requirement that operators of electrolytic hydrogen production facilities must demonstrate hourly matching of hydrogen production with renewable energy generation starting January 1, 2030. This prevents facilities from producing hydrogen using non-renewable electricity at times when renewable generation is low.

A new commission-based determination is added requiring assessment of regional impacts of hydrogen production on zero-carbon generation, local air pollution, and fossil fuel generation. This gives the California Energy Commission an additional gatekeeping role beyond the existing ARB resource shuffling check.

The resource shuffling determination by the State Air Resources Board is now described as 'independently determined' rather than simply 'determined,' suggesting a stronger separation from other regulatory processes.

Added a new category of renewable electrical generation facility: facilities that convert hydrogen gas to electricity in a turbine. Previously, only turbines using fuels already listed in the statute (biomass, landfill gas, etc.) qualified.

Hydrogen must be solely derived from a non-fossil-based feedstock or through electrolysis of water powered by another renewable electrical generation facility.

Anti-double-counting rule: the electricity used to produce the hydrogen cannot also be counted toward California's Renewables Portfolio Standard or claimed as renewable for any other state program.

Minimum hydrogen blend threshold: the turbine must be capable of using a fuel where hydrogen comprises at least 20 percent by volume (as determined by the commission), sufficient to achieve a measurable greenhouse gas emissions reduction.

Hydrogen manufacturing must not result in 'resource shuffling' as determined by the State Air Resources Board, in alignment with existing regulations.

Hydrogen manufacturing must not use unbundled renewable energy credits (RECs).

Use of the hydrogen must result in a net decrease of air pollutants (as regulated by local air districts) and greenhouse gases from the electrical sector.

Facility operators must submit information on the hydrogen production process as specified by the California Energy Commission.

Restructured subdivision (1) of the definition from a single list of technologies into two sub-criteria: (A) the original list of technologies and (B) the new hydrogen turbine category. Also fixed minor typos in the 'retail seller' definition and page numbering.