Existing law requires the State Energy Resources Conservation and Development Commission, on or before January 1, 2024, and every 3 years thereafter, to submit an assessment to the Legislature that, among other things, identifies methods to ensure a reliable supply of affordable and safe transportation fuels in California and evaluates the price of transportation fuels, including branded and unbranded retail prices, alternate formulations of gasoline with lower carbon impact, and other products suitable for production from refineries in California, as provided. Existing law establishes the Division of Petroleum Market Oversight within the commission to, among other things, provide independent oversight and analysis of the transportation fuels market for the protection of consumers by identifying market design flaws, market power abuses, and any other manner by which market participants act to harm competition or act contrary to the best interests of the consumers in the state. Existing law requires the director of the division, when requested, to appear before the appropriate policy committees of the Legislature to provide an update on the division's performance as compared to its objectives, the status of competition in the transportation fuels markets, and other information the committees request. This bill would require the commission, on or before January 31, 2029, to seek to enter into memoranda of understanding with relevant air districts and local governments with transportation fuels refining facilities within their jurisdictions, as identified by the commission, to enable the further coordination that is needed to support management of the transportation fuels sector and to ensure the transportation fuels sector is successfully managed and maintains environmental, public health, labor, economic, and consumer protections.
(1) Existing law authorizes the State Oil and Gas Supervisor to authorize the conversion of not more than 250 wells for use as gravity-based energy storage wells to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely store and generate energy. Existing law repeals this authorization on January 1, 2035, and would specify that authorizations issued by the supervisor terminate on that date. This bill would correct an erroneous cross reference for that authorization. (2) Existing law defines "task force" as the Wildfire and Forest Resilience Task Force established by the Governor to oversee the implementation of Executive Order No. B-52-18, and required the task force to, among other things, on January 1, 2022, develop a comprehensive implementation strategy to track and ensure the achievement of the goals and key actions identified in "California's Wildfire and Forest Resilience Action Plan" issued by the task force in January 2021, as provided. This bill would make nonsubstantive changes to the definition of "task force." (3) Existing law requires the State Lands Commission to adopt regulations relating to ballast water, as provided. Existing law requires the commission to adopt a regulation that requires an owner or operator of a vessel carrying, or capable of carrying, ballast water that operates on the waters of the state to comply with specified federal laws, as provided. Existing law requires the commission to consult with the United States Coast Guard to attempt to identify an alternative, environmentally sound method of ballast water management under specified circumstances in accordance with specified federal laws, as provided. This bill would require the commission to adopt a regulation that requires an owner or operator of a vessel carrying, or capable of carrying, ballast water that operates on the waters of the state to instead comply with different specified federal law. The bill would also require the commission to consult with the United States Coast Guard on an alternative, environmentally sound method of ballast water management under specified circumstances in accordance with additional federal law. (4) Existing law lifts, until February 1, 2066, the use restrictions imposed by the granting statutes and the public trust doctrine with respect to after-acquired lands, property that is not original tidelands or submerged lands, title to which was not derived from the granting statutes, that were acquired with public trust funds derived from port operations as specified, in Jack London Square and authorizes the Port of Oakland to lease these lands for any purpose subject to specified conditions. Existing law authorizes the port to lease after-acquired lands for a nontrust use only if the port finds specified conditions are met, including, among other conditions, that the nontrust uses will not impair or harm existing public access or public trust uses and are intended to attract the statewide public to Jack London Square and the waterfront to promote increased use and enjoyment of the area. Existing law requires the port to make the findings that these specified conditions are met for each proposed nontrust lease at a public meeting. This bill would correct an erroneous cross-reference relating to that requirement.
Existing law establishes the Geologic Energy Management Division in the Department of Conservation under the direction of the State Oil and Gas Supervisor, who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells in the state and the operation, maintenance, and removal or abandonment of tanks and facilities related to oil and gas production within an oil and gas field so as to prevent damage to life, health, property, and natural resources. Existing law establishes the California State University under the administration of the Trustees of the California State University as one of the segments of public postsecondary education in the state. This bill would require the department, consistent with its statutory authority and in coordination with other state or federal regulatory agencies, to prioritize granting approvals for specified types of low-carbon or carbon-reducing technologies and applications. The bill would authorize the department to establish the Subsurface Low-Carbon Demonstration Project Program to facilitate partnerships among the state, the California State University system, private industry, and public entities to study and demonstrate innovative subsurface technologies using existing and idle wells. The bill would authorize the department to establish various programs in partnership with the California State University and California State University, Bakersfield, including (1) the Regional Subsurface Energy Transition and Applied Research Program and (2) a subsurface energy research field station for applied research, field testing, monitoring, and demonstration of subsurface technologies. The bill would also authorize the department to (3) collaborate with the California Energy Research Center at California State University, Bakersfield, and recognize the center as a state-affiliated applied research, technical assistance, and policy support partner, as provided, and (4) designate and support the California Core Repository at California State University, Bakersfield, as an official state-affiliated repository, as provided. This bill would authorize the department to establish and administer an official department office at California State University, Bakersfield, and would authorize the California State University to support and collaborate on activities across the full scope of the department's statutory responsibilities, as provided. This bill would explicitly authorize university-based researchers associated with any of the above-described programs to serve on advisory panels, technical working groups, and research committees in an advisory capacity, and provide scientific expertise to inform regulatory development, interagency coordination, and public communication. This bill would make legislative findings and declarations as to the necessity of a special statute for California State University, Bakersfield.
Under existing law, the Geologic Energy Management Division in the Department of Conservation regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. The State Oil and Gas Supervisor supervises the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities related to oil and gas production, as provided. Existing law divides the state into districts and requires the supervisor to appoint one chief deputy and at least one district deputy for each of the districts. Existing law requires a person who acquires the right to operate a well or production facility, as soon as it is reasonably possible, but no later than the date when the acquisition of the well or production facility becomes final, to notify the supervisor or the district deputy, in writing, of the person's operation, as provided. Existing law further requires a person who acquires the right to operate a well or production facility to file with the supervisor an individual indemnity bond or a blanket indemnity bond in an amount determined by the supervisor to be sufficient to cover, in full, all costs of plugging and abandonment, decommissioning the facility, and site restoration, as provided. Existing law requires a person who intends to acquire the right to operate a well or production facility, by purchase, transfer, assignment, conveyance, exchange, or other disposition, to submit a request to the supervisor for a determination of the amount of the bond required before completing the acquisition and prohibits that person from completing the acquisition until the determination is received and the bond has been filed with the supervisor. A person who violates, fails, neglects, or refuses to comply with requirements of the oil and gas laws, including the bonding requirements described above, is guilty of a misdemeanor, as provided. This bill would make the above-described requirements applicable to a person who acquires, or intends to acquire, as applicable, the right to control a well or production facility and would make conforming changes, as provided. The bill would provide that, for purposes of filing an indemnity bond, a person who "acquires a right to operate or control a well or production facility" includes, but is not limited to, the rights a person acquires through the direct or indirect sale or exchange in a single or series of related transactions resulting in the acquisition of more than 50% of the voting stock of the operator or through a liquidation or dissolution of the operator, among other transactions. By expanding the scope of a crime, the bill would impose a state-mandated local program. Existing law exempts from the above-described requirements relating to filing an indemnity bond a well that has an average daily production level that exceeds 15 barrels of oil or 60,000 cubic feet of natural gas during the 12 months preceding the date of acquisition or a natural gas storage well, as provided. This bill would delete that exemption. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would make the operation of its provisions contingent upon the enactment of AB 2716 of the 2025–26 Regular Session.
Existing law authorizes the Geologic Energy Management Division in the Department of Conservation to require an operator of an oil and gas well to provide, in addition to specified types of required indemnity bonds, an additional amount of security acceptable to the division based on the division's evaluation of the risk that the operator will desert its well or wells and the potential threats the operator's well or wells pose to life, health, property, and natural resources, as provided. Existing law requires the division to consider specified factors in evaluating the risks that the operator will desert its well or wells and the potential threats the operator's well or wells pose to life, health, property, and natural resources. Existing law prohibits this additional security from exceeding the lesser of the division's estimation of the reasonable costs of properly plugging and abandoning all of the operator's wells and decommissioning any attendant production facilities, or $30,000,000. A person who violates or fails to comply with this provision, or any related law concerning oil and gas, is guilty of a crime. This bill would instead prohibit this additional security from exceeding the lesser of the division's estimation of the reasonable costs of properly plugging and abandoning all of the operator's wells and decommissioning any attendant production facilities, or a maximum amount of additional security based on the total number of active and idle wells under the control of the operator pursuant to a specified schedule, as provided. The bill would prohibit the division from increasing the amount of additional security required of an operator that had an additional security agreement approved by the division as of January 1, 2027, until 3 years after the effective date of the agreement, as provided. The bill would explicitly extend these additional security requirements to a person who acquires the right to operate or control a well or production facility, as provided. The bill would establish that compliance with these additional security requirements by either the operator of record or the person who acquires the right to operate or control a well or production facility constitutes compliance for both parties, and would prohibit the division from requiring duplicative security, as provided. Existing law authorizes the above-described additional amount of security to be an indemnity bond, specified forms of deposit, or any other means of equally effective financial assurance approved by the division, including a demonstration of self-insurance pursuant to a specified process. This bill would, as a condition of obtaining division approval of self-insurance or a corporate guarantee, require an additional security agreement between the operator and the division that includes, among other things, an enforceable schedule for the plugging and abandonment of wells and decommissioning of production facilities consistent with an operator's idle well management plan, as provided. The bill would also require the operator, as part of that additional security agreement, to immediately notify the division if the operator is unable to satisfy the financial criteria, and would make a failure to make this notification a violation subject to civil and criminal penalties, as provided. By expanding the scope of a crime, the bill would impose a state-mandated local program. The bill would also require the division to reevaluate whether self-insurance or a corporate guarantee continues to constitute an equally effective means of financial assurance at least once every 3 years, or upon a material change in the financial condition of the operator or guarantor entity, whichever occurs first. The bill would require an operator approved for self-insurance or a corporate guarantee who the supervisor subsequently determines to be out of compliance with an approved idle well management plan, or specified operators out of compliance with idle well fee requirements, to provide other financial assurance within 90 days of that determination, as provided. Existing law also requires a person who acquires the right to operate a well or production facility to file with the State Oil and Gas Supervisor an individual indemnity bond or a blanket indemnity bond in an amount determined by the supervisor to be sufficient to cover, in full, all costs of plugging and abandonment, decommissioning the facility, and site restoration, as provided. Under existing law, an operator may, in lieu of this bonding requirement and with the written approval of the supervisor, provide the required security through an equally effective means of financial assurance, including specified types of deposits, an irrevocable letter of credit, or a fully funded trust fund, and excluding self-insurance or corporate guarantees, as provided. This bill would repeal the exclusion of self-insurance or corporate guarantee, as described above. The bill would additionally authorize an operator to, in lieu of the bonding requirement and with the written approval of the supervisor, provide the required security through specified means of financial assurance, including pursuant to the above-described process for obtaining division approval for self-insurance or a corporate guarantee applicable to existing operators, as provided. Existing law authorizes the supervisor or a district deputy to order the plugging and abandonment of a well or the decommissioning of a production facility that has been deserted. If the supervisor determines that the current operator, as determined by the records of the supervisor, does not have the financial resources to fully cover that cost of plugging and abandonment of the well or the decommissioning of a production facility that has been deserted, existing law makes immediately preceding operators responsible for that cost. Existing law authorizes the supervisor to continue to look seriatim to previous operators until an operator is found with sufficient financial resources to cover the cost, except as provided. This bill would exempt from the above-described requirement to file with the supervisor, upon acquiring the right to operate a well or production facility, an individual indemnity bond or a blanket indemnity bond sufficient to cover all costs of plugging and abandonment, decommissioning the facility, and site restoration, (1) an operator, or a person who acquires the right to operate or control a well or production facility, who has complied with an idle well management plan or fee schedule, and specified reporting requirements, as provided, if the operator of record has obtained and maintained additional security approved by the division, as provided, and (2) a person who has acquired the rights to a well or production facility for the sole purpose of plugging and abandoning that well or decommissioning the production facility for purposes of redevelopment, as defined, or to satisfy the above-described obligations of previous operators, as provided. The bill would explicitly state that a person who has acquired the rights to a well or production facility for the sole purpose of plugging and abandoning that well or decommissioning the production facility for the purposes of redevelopment or to satisfy the obligations of previous operators is subject to the state oil and gas laws as an operator, until a determination by the supervisor that the well has been properly plugged and abandoned or the production facilities have been decommissioned, or that additional work related to abandoning the well is not practical or would pose greater environmental or safety risk, as provided. Upon this determination by the supervisor, the bill would require the supervisor to release the bond, and would release the acquiring person from any further obligation or liability for the well or facility. The bill would require a person who, before an acquisition for the sole purpose of plugging and abandoning the well or decommissioning the production facility, was responsible as an owner or operator of the well or production facility and subject to orders related to remediation issued by the supervisor to remain responsible for the well or production facility and any unfunded costs associated with plugging and abandonment of the well or decommissioning of the facility, as provided. The bill would prohibit the use of a well or production facility acquired for the sole purpose of plugging and abandoning the well or decommissioning the production facility from being used for oil or gas production, injection, gas storage, or any associated operation. By creating a new crime, the bill would impose a state-mandated local program. This bill would require a person acquiring the rights to a well or production facility for the sole purpose of plugging and abandoning that well or decommissioning the production facility for the purpose of redevelopment, before completing the acquisition, to submit to the supervisor a declaration, under penalty of perjury, that the acquisition is for the sole purpose of plugging and abandoning the well or decommissioning the production facility for the purpose of redevelopment, a description of the redevelopment plan, and a plugging and abandoning work plan, as provided. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would require an acquiring person who submits the declaration to commence plugging and abandonment or decommissioning operations within 24 months of the date of acquisition, and would authorize the supervisor to grant a 12-month extension, as provided. The bill would require the supervisor to require an acquiring person who fails to commence operations within this time period to file financial assurance, as provided. The bill would require a person acquiring the rights to a well or production facility pursuant to these provisions to provide annual updates on the plugging and abandonment work plan. If the supervisor determines that the acquiring person is not capable of plugging the wells within these timeframes, the bill would require the acquiring person to post specified financial assurance and would require the supervisor to notify the previous operator who is responsible for the plugging and abandonment. The bill would establish that no more than 100 wells or associated production facilities may be included, on an annual basis, in this alternative financial security program, as provided. This bill would, on and after January 1, 2028, and quarterly thereafter, require the division to post on its internet website specified information related to well transfers, wells and production facilities acquired for the sole purpose of plugging and abandoning or decommissioning, and a description of wells located in or within one mile of a disadvantaged community. The bill would require the supervisor and Director of Conservation to annually attend specified legislative hearings to report on well transfer activity, implementation and status of financial assurance for indemnification, and the above-described provisions related to redevelopment of oil and gas wells, and would require the division, on or before January 1, 2032, to prepare and submit a related report to the relevant legislative policy and budget committees in both houses of the Legislature, as provided. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would make the operation of its provisions contingent upon the enactment of AB 2461 of the 2025–26 Regular Session.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including gas corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law requires, until at least December 31, 2029, each gas corporation to submit to the commission a map that includes, among other things, the location of all potential gas distribution line replacement projects identified in its distribution integrity management plan and any foreseeable gas distribution pipeline replacements, as provided. This bill would require each gas corporation to submit an annual report to the commission that describes its expenditures associated with gas distribution infrastructure replacement and upgrade projects, as provided. The bill would require the commission, as part of its long-term gas planning rulemaking or a successor proceeding, to consider a framework for the depreciation of gas distribution infrastructure that reflects reasonably foreseeable changes in gas demand and is designed to minimize future ratepayer exposure to stranded asset costs, and would authorize the commission to apply the framework in evaluating the depreciation of, and cost recovery for, gas distribution infrastructure replacements and upgrades. Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the above provisions would be part of the Public Utilities Act and a violation of a commission action implementing this bill's requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms in regulating those emissions. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations and gas corporations pursuant to a market-based compliance mechanism. Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including gas corporations. Existing law requires the commission to consider options to promote the in-state production and distribution of biomethane, and that facilitate the development of a variety of sources of in-state biomethane. The commission has adopted 2 decisions implementing these requirements, the 2nd of which adopted a 5-year monetary incentive program effective June 11, 2015, for biomethane projects. Existing law requires the commission to modify the biomethane monetary incentive program in specified respects and to extend the program, as modified, until December 31, 2026, or until all available program funds are expended, whichever occurs first. This bill would require the commission to extend the biomethane monetary incentive program until December 31, 2030. The bill would authorize the commission to authorize additional funding of $50,000,000 for the program, of which no more than $10,000,000 would be authorized for dairy biomethane projects, using the revenues, including any accrued interest, received by a gas corporation as a result of the direct allocation of greenhouse gas allowances provided to gas corporations as part of the above-described market-based compliance mechanism. Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the provisions of this bill would be part of the act and because a violation of a commission action implementing its requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law vests the State Oil and Gas Supervisor with regulatory authority over wells for the discovery of geothermal resources or wells on land producing geothermal resources. Existing law establishes the Geologic Energy Management Division in the Department of Conservation, under the direction of the supervisor, who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells in the state and the operation, maintenance, and removal or abandonment of tanks and facilities related to oil and gas production within an oil and gas field, so as to prevent damage to life, health, property, and natural resources. Under existing law, a person who fails to comply with requirements relating to the regulation of oil or gas operations is guilty of a misdemeanor. Existing law imposes, among other things, an annual charge upon each person operating or owning an interest in an oil or gas well, with respect to the production of the well, which charge is payable to the Treasurer for deposit into the Oil, Gas, and Geothermal Administrative Fund. Existing law requires funds from those charges to be used exclusively for the support and maintenance of the Department of Conservation, which is charged with the supervision of oil and gas operations, for the State Water Resources Control Board and the regional water quality control boards for their activities related to oil and gas operations that may affect water resources, and for the support of the State Air Resources Board and the Office of Environmental Health Hazard Assessment for their activities related to oil and gas operations that may affect air quality, public health, or public safety. Existing law imposes annual limits on expenditures by the division from the Oil, Gas, and Geothermal Administrative Fund, as provided. This bill would establish the New Technology Program within the division to facilitate the evaluation of repurposing oil and gas wells or geothermal wells for renewable energy storage or generation purposes. The bill would require the supervisor to approve or deny project proposals from operators to repurpose oil and gas wells or geothermal wells for energy storage or renewable energy generation, including synthetic geothermal resources, as provided. The bill would require, upon approval of a project by the supervisor, the oil and gas wells or geothermal wells that are part of the project to be designated as experimental wells, as defined, for the duration of the project. The bill would impose an annual charge on operators of experimental wells to defray the regulatory costs incurred by the state, as provided. The bill would require the proceeds of the annual charge to be deposited into the Oil, Gas, and Geothermal Administrative Fund. The bill would require the division to, on or before an unspecified date, and annually thereafter, provide a report to the applicable legislative policy and budget committees on program activities for the preceding calendar year, highlighting accomplishments and including recommendations for statutory and regulatory changes to more readily achieve program goals.
The California Global Warming Solutions Act of 2006 requires the State Air Resources Board to adopt regulations for greenhouse gas emissions limits and emissions reduction measures to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit, as defined. The act authorizes the state board to revise regulations or adopt additional regulations to further the act. The act authorizes that state board to include in those regulations the use of a market-based compliance mechanism to comply with those regulations. This bill would require the state board to adopt regulations for greenhouse gas emissions limits and emissions reduction measures to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions to instead achieve certain emissions reductions goals and the purposes of the act. The bill would require the state board, in adopting regulations, to design the regulations in a manner that transitions support from gas corporations to electrical distribution utilities to minimize ratepayer impacts and meet the emissions reduction goals of the act. The bill would require the state board to consider the effects of the regulations on affordability, cost-effectiveness, minimization of leakage in California, and achieving the emissions reduction goals of the act. The bill would state the intent of the Legislature that the market-based compliance mechanism be known as the California Cap-and-Invest Program. The act, until January 1, 2031, authorizes the state board to adopt a regulation establishing a market-based compliance mechanism that is a system of market-based declining aggregate emissions limits for sources or categories of sources that emit greenhouse gases meeting certain requirements, including the establishment of a price ceiling, as provide, the allowance price containment reserve, and a requirement for state board, if the allowance from the allowance price containment reserve is exhausted, to offer covered entities additional allowances at the price ceiling if need for compliance. The act requires that moneys generated by the sale of those additional allowances be expended by the state board to achieve emissions reductions, as provided. The act, until January 1, 2031, establishes the Compliance Offsets Protocol Task Force to provide guidance to the state board in approving new offset protocols for the market-based compliance mechanism for purposes of increasing offset projects, as provided. The act, until January 1, 2031, establishes the Independent Emissions Market Advisory Committee within the California Environmental Protection Agency and requires the committee to annually report to the state board and the Joint Legislative Committee on Climate Change Policies on the environmental and economic performance of the regulation establishing the market-based compliance mechanism and other relevant climate change policies. The act, until January 1, 2031, requires the state board to designate the market-based compliance mechanism as the rule for petroleum refineries and oil and gas production facilities to achieve their greenhouse gas emissions reductions. The act provides that a violation of any rule, regulation, order, emissions limitation, emissions reduction measure, or other measure adopted by the state board under the act is a crime. Existing law requires moneys collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and continuously appropriates a portion of the moneys in the fund for various purposes. This bill would extend the above-described provisions until January 1, 2046. The bill would require the state board, in adopting those regulations, to additionally do certain things, including establish offset credit limits from January 1, 2026, to December 31, 2045, inclusive, as provided. The bill would require that moneys generated from the sale of additional allowances at the price ceiling be deposited into the California Climate Mitigation Fund, which the bill would create in the State Treasury. The bill would require moneys in the California Climate Mitigation Fund be available, upon appropriation by the Legislature, for purposes of providing direct rebates and investments to reduce household energy costs. Because a violation of the market-based compliance mechanism whose operation would be extended by the bill would be a crime, the bill would impose a state-mandated local program. By extending the operation of the market-based compliance mechanism, thereby extending the deposit of moneys from that market-based compliance mechanism into the fund, the bill would make an appropriation. This bill would specify that the members of the Independent Emissions Market Advisory Committee are to be considered designated employees of the California Environmental Protection Agency for purposes of the Political Reform Act of 1974. This bill would, if the state board initiates a regulatory process to update those regulations that is expected to be a major regulation for purposes of the Administrative Procedure Act, require the chairperson of the state board, until January 1, 2046, to present to the Joint Legislative Committee on Climate Change Policies and other relevant policy committees of the Legislature on the current state of the market-based compliance mechanism and provide the rationale for updating the regulations, as provided, and to transmit certain information to the joint legislative committee and the relevant budget subcommittees, including the economic analysis required by the Administrative Procedure Act of the proposed amendments to the regulations. The bill would require the state board and other state agencies implementing programs that are funded by the Greenhouse Gas Reduction Fund, upon request, to appear annually before the Joint Legislative Committee on Climate Change Policies and the relevant budget subcommittees to give a presentation on the expenditures of those moneys. The act requires the state board, on or before January 1, 2009, to prepare and adopt a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years. This bill would require the state board, until January 1, 2046, to include in the updates to the scoping plan the progress towards meeting certain greenhouse gas emissions reduction targets and recommendations to the Legislature on necessary statutory changes to the market-based compliance mechanism to further cost-effectively reduce emissions of greenhouse gases. Existing law authorizes the Public Utilities Commission to allocate 15% of the revenues received by electrical corporations as a result of the direct allocation of greenhouse gas allowances to electric corporations for clean energy and energy efficiency projects that are administered by the electrical corporations or a qualified third-party administrator and that are not otherwise funded by other funding sources. Existing law requires the commission to require the balance of those revenues to be credited directly to the residential, small business, and emissions-intensive, trade-exposed retail customers of the electrical corporations. Existing law requires the commission to require the adoption and implementation of a customer outreach plan for each electrical corporation for purposes of obtaining the maximum feasible public awareness of the crediting of greenhouse gas allowance revenues. This bill would require the credits provided to residential customers to be provided on the bills of those customers in no more than 4 high-billed months of each year to maximize customer electric bill affordability or as otherwise directed by the commission to address extreme, unforeseen, and temporary circumstances. The bill would instead authorize the commission to require those revenues to be credited to small businesses and emission-intensive trade-exposed retail customers of the electrical corporations. The bill would require the commission, not later than January 1, 2027, to require each electrical corporation to update its customer outreach plan, as provided. This bill would make the 15% allocation for clean energy and energy efficiency projects inoperative on July 1, 2026. The bill would require, from July 1, 2026, to January 1, 2031, inclusive, 5% of those revenues be remitted to the State Treasury for deposit into the California Transmission Accelerator Revolving Fund and be available to California Infrastructure and Economic Development Bank for purposes of the California Transmission Accelerator Revolving Fund Program. Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime. Because certain provisions of the bill would be part of the Public Utilities Act and a violation of a commission action implementing the bill's requirements would be a crime, this bill would impose a state-mandated local program. This bill would require local publicly owned electric utilities receiving a direct allocation of greenhouse gas allowances in addition to the greenhouse gas allowance totals specified in the regulations implementing the market-based compliance mechanism to provide a credit, as provided. The bill would require local publicly owned electric utilities to report to the state board on the uses of all revenues received by those utilities as a result of the direct allocation of greenhouse gas allowances under those regulations and would require the state board to annually submit a report to the Legislature on the uses of those revenues. By imposing additional duties on local publicly owned electric utilities, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for specified reasons. This bill would declare that it is to take effect immediately as an urgency statute.
The California Global Warming Solutions Act of 2006, until January 1, 2031, authorizes the State Air Resources Board to adopt a regulation establishing a system of market-based declining aggregate emissions limits for sources or categories of sources that emit greenhouse gases (market-based compliance mechanism) that meets certain requirements. Existing law establishes the Greenhouse Gas Reduction Fund and requires all moneys, except for fines and penalties, collected by the state board from the auction or sales of allowances as a part of a market-based compliance mechanism to be deposited into the fund and requires the Legislature to appropriate moneys in the fund for the purpose of reducing greenhouse gas emissions in the state, as provided. Existing law, the California Climate Crisis Act, declares that it is the policy of the state both to achieve net-zero greenhouse gas emissions as soon as possible, but no later than 2045, and achieve and maintain net-negative greenhouse gas emissions thereafter, and to ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85% below the 1990 levels. This bill would enact the Polluters Pay Climate Superfund Act of 2025 and would establish the Polluters Pay Climate Superfund Program to be administered by the California Environmental Protection Agency to require fossil fuel polluters to pay their fair share of the damage caused by greenhouse gases released into the atmosphere during the covered period, which the bill would define as the time period between the 1990 and 2024 calendar years, inclusive, resulting from the extraction, production, refining, sale, or combustion of fossil fuels or petroleum products, to relieve a portion of the burden to address cost borne by current and future California taxpayers. The bill would require the agency, within 90 days of the effective date of the act, to determine and publish a list of responsible parties, which the bill would define as an entity with a majority ownership interest in a business engaged in extracting or refining fossil fuels that, during the covered period, did business in the state or otherwise had sufficient contact with the state, and is determined by the agency to be responsible for more than 1,000,000,000 metric tons of covered fossil fuel emissions, as defined, in aggregate globally, during the covered period. This bill would require the agency, within one year of the effective date of the act, to conduct and complete a climate cost study to, among other things, quantify the total damage amount, which the bill would define as all past and future climate harms and damages to the state from January 1, 1990, through December 31, 2045, inclusive. The bill would require the agency to update the climate cost study, not less frequently than every 5 years, through January 1, 2045, as provided. The bill would require the agency, within 60 days of the completion of the climate cost study, to determine and assess, as provided, a cost recovery demand for each responsible party listed, which represents the responsible party's proportionate share of the total damage amount. The bill would require responsible parties to pay their cost recovery demand, as provided. The bill would require the collected cost recovery demands to be deposited in the Polluters Pay Climate Superfund, which the bill would create in the State Treasury. The bill would, upon appropriation by the Legislature, require moneys in the fund be expended for, among other things, qualifying expenditures, which the bill would define to include expenditures for projects and programs to mitigate, adapt, or respond to the damages and costs caused to the state from climate change. The bill would require all interest earned on moneys that have been deposited into the fund to be retained in the fund for use in implementing the program. The bill would require the agency to determine the initial implementation costs for the act, as provided, and would require the agency to assess an amount allocated equitably among responsible parties to cover those costs. This bill would require the Director of Finance, within 45 days of the effective date of the act, to perform an initial assessment of the reasonable and appropriate initial implementation costs that will be incurred by the agency. This bill would declare that it is to take effect immediately as an urgency statute.
