20250SB__034897AMD INTRODUCED 2025-02-12 AMENDED_SENATE 2025-03-20 AMENDED_SENATE 2025-05-05 2025 SB AMD Introduced by Senator Hurtado LEAD_AUTHOR SENATE Hurtado

An act to add

Section to the Health and Safety Code, relating to greenhouse gases. greenhouse gases State Air Resources Board: Low Carbon Fuel Standard. Existing law imposes various limitations on emissions of air contaminants for the control of air pollution from vehicular and nonvehicular sources. Existing law generally designates the State Air Resources Board as the state agency with the primary responsibility for the control of vehicular air pollution.

Existing law requires the state board to adopt standards, rules, and regulations necessary for the proper execution of the powers and duties granted to, and imposed upon, the state board.

This bill would require the state board, when it revises, adopts, or establishes any policy, standard, rule, or regulation that would have a direct financial impact to drivers in the state, to consider the financial burden on drivers and to prepare a thorough analysis and evaluation of the financial impact of the proposed action to drivers to ensure full transparency.</xhtml:p>"?> The California Global Warming Solutions Act of establishes the state board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases.

The act requires the state board to adopt rules and regulations, as provided, to achieve the maximum technologically feasible and cost-effective greenhouse gas emissions reductions to ensure that the statewide greenhouse gas emissions are reduced to at least 40% below the statewide greenhouse gas emissions limit, as defined, no later than December 31, 2030. Pursuant to its authority, the state board has adopted the Low Carbon Fuel Standard regulations to reduce the carbon intensity of transportation fuels used in California, as specified.

This bill would require the state board, beginning no later than January 31, 2026, to reconsider and revise the Low Carbon Fuel Standard to reduce the program’s financial burden on drivers in the state, including by taking specified actions. MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares the following: (

a) The State of California is a global leader in reducing greenhouse gas emissions and addressing climate change through innovative programs such as the Low Carbon Fuel Standard or LCFS. (

b) The LCFS is a critical tool to achieve the state’s goals of reducing carbon intensity in the transportation sector, encouraging innovation in low-carbon fuels, and improving public health. (

c) Transparency and accountability in the implementation of LCFS metrics are vital to ensuring equitable and effective progress toward the state’s climate goals. (

d) Technological advancements, market shifts, and emerging data necessitate periodic updates to the metrics and modeling assumptions underpinning the LCFS to ensure alignment with current science, economic realities, and equity principles. (

e) California consumers are overly burdened with the high cost of living, and the state should consider the financial impacts to consumers as future legislation, regulations, and policies are made to reach the state’s ambitious climate goals.

SEC. 2.

Section is added to the Health and Safety Code , to read: 38567. (

a) For purposes of this section, “Low Carbon Fuel Standard” means the Low Carbon Fuel Standard regulations (Subarticle 7 (commencing with

Section 95480) of

Article of Subchapter of

Chapter of Division of Title of the California Code of Regulations). (

b) Beginning no later than January 31, 2026, the state board shall reconsider and revise the Low Carbon Fuel Standard program to reduce the program’s financial burden on drivers in the state, including by doing all of the following:

(1) Providing a complete analysis and evaluation of the passed-through cost of carbon credits to drivers in the state, including a comparison to methodologies used in evaluating the cost impacts of previous amendments to the Low Carbon Fuel Standard and an explanation of why those methodologies were insufficient or inaccurate.

(2) Prioritizing policy changes that directly benefit individual drivers, including by revising carbon credit structures, such as through multiplying credit generation for certain classes of pathways that are aligned with state policy priorities. (3)<xhtml:span class="EnSpace"/>Ensuring the revised Low Carbon Fuel Standard framework aligns with the state’s environmental goals while balancing economic equity for its residents.</xhtml:p>"?>

(3) Evaluating the extent to which changes to the Low Carbon Fuel Standard can be made to prioritize in-state projects and benefits, and describing any limitations for doing so under existing state and federal law.

(4) Providing an analysis of the impacts that adjusting the credit price cap set for the Credit Clearance Market would have on program cost and investment capabilities. <caml:Num>SEC. 3.</caml:Num><caml:ActionLine action="IS_ADDED" xlink:href="urn:caml:codes:HSC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'39601.3'%5D)" xlink:label="fractionType: LAW_SECTION" xlink:type="locator">Section 39601.3 is added to the <caml:DocName>Health and Safety Code</caml:DocName>, to read:</caml:ActionLine><caml:Fragment><caml:LawSection id="id_597058F7-02DB-489D-8ADA-72E3A0E3B998"><caml:Num>39601.3.</caml:Num><caml:LawSectionVersion id="id_0CDBBE50-852C-4E6A-9233-0A0E6E3EB97E"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>When the state board revises, adopts, or establishes any policy, standard, rule, or regulation that would have a direct financial impact to drivers in the state, including, but not limited to, the Low Carbon Fuel Standard program, the state board shall consider the financial burden on drivers and shall prepare a thorough analysis and evaluation of the financial impact of the proposed action to drivers to ensure full transparency.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>For purposes of this section, “Low Carbon Fuel Standard” means the Low Carbon Fuel Standard regulations (Subarticle 7 (commencing with

Section 95480) of

Article of Subchapter of

Chapter of Division of Title of the California Code of Regulations).</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:Fragment></caml:BillSection>"?>