AB 193 — Public resources: Greenhouse Gas Reduction Fund: programs.

Summary

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, as provided. The act authorizes that state board to include in those regulations the use of a market-based compliance mechanism to comply with those regulations. 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. Existing law allocates moneys in the fund in a specified priority and continuously appropriates a certain amount of moneys in the fund for certain purposes. This bill would require interest income earned on those moneys to be deposited into the fund. By depositing additional moneys into a continuously appropriated fund, the bill would make an appropriation. Existing law requires that moneys in the Greenhouse Gas Reduction Fund be allocated based on 4 priority levels with the first priority level being certain amounts, including amounts to replace revenues generated by the State Responsibility Area fire prevention fee, the 2nd priority level being certain amounts, including $1,000,000,000 that is continuously appropriated to the High-Speed Rail Authority for certain purposes, the 3rd priority level being certain amounts, including $800,000,000 that is continuously appropriated to the Strategic Growth Council for the Affordable Housing and Sustainable Communities Program and $200,000,000 that is continuously appropriated to the Department of Forestry and Fire Protection with 82.5% of that amount for health forest and fire prevention programs and projects and 17.5% of that amount for the completion of prescribed fire and other fuel reduction projects, as provided, and the 4th priority level being any amount not needed to fully fund the first 3 priority levels being available for appropriation by the Legislature. This bill would include in the first priority level for allocation from the fund any state operation costs, as proposed by the Department of Finance, appropriated in the annual Budget Act or other statute and certain administrative costs. The bill would authorize the use of moneys continuously appropriated to the High-Speed Rail Authority under the 2nd priority level for state operations costs for the High-Speed Rail Authority. The bill would instead specify the allocations of $800,000,000 continuously appropriated for the Affordable Housing and Sustainable Communities Program, with $560,000,000 continuously appropriated to the Housing Development and Finance Committee for affordable rental or owner-occupied housing projects, thereby making an appropriation, and $240,000,000 continuously appropriated to the Strategic Growth Council for, among other things, projects or programs designed to reduce greenhouse gas emissions and other criteria air pollutants by reducing automobile trips and vehicle miles traveled, as specified. The bill would repeal the 82.5% and 17.5% allocation requirements for the amount continuously appropriated to the Department of Forestry and Fire Protection for the healthy forest and fire prevention programs and projects and the completion of the prescribed fire and other fuel reduction programs, respectively. Existing law establishes the Transit and Intercity Rail Capital Program to fund transformative capital improvements that will modernize California's intercity, commuter, and urban rail systems and bus and ferry transit systems to achieve certain policy objectives. Existing law creates the Low Carbon Transit Operations Program to provide operating and capital assistance for transit agencies to reduce emissions of greenhouse gases and improve mobility. This bill would authorize the Department of Transportation to provide administrative support for those 2 programs. This bill would make various cross-reference and other nonsubstantive changes. Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires the PUC to require those electrical corporations with 250,000 or more customer accounts in the state, and those gas corporations with 400,000 or more customer accounts in the state, to fund as part of their energy efficiency portfolios the joint School Energy Efficiency Stimulus Program, which consists of the School Reopening Ventilation and Energy Efficiency Verification and Repair Program (SRVEVR Program) and the School Noncompliant Plumbing Fixture and Appliance Program (SNPFA Program) . Existing law requires that the School Energy Efficiency Stimulus Program be a joint program among all the participating utilities, be consistent across the utility territories, and be designed, administered, and implemented by the State Energy Resources Conservation and Development Commission (Energy Commission) as the program administrator. The Energy Commission administratively established the School Energy Efficiency Stimulus Program Fund and existing law continuously appropriates moneys in the fund to the Energy Commission for purposes of the program. Existing law requires all allocated funds to be spent or returned to each electrical corporation or gas corporation by December 1, 2026. This bill would extend the operation of the School Energy Efficiency Stimulus Program to January 1, 2031. The bill would instead require all non-committed funds to be spent or returned to each utility by December 1, 2026. The bill would require any funds committed as of August 31, 2026, to be encumbered by December 1, 2028, liquidated by December 1, 2029, and returned to each utility by January 30, 2030. By extending the term of a continuous appropriation, the bill would make an appropriation. This bill would incorporate additional changes to Section 39719.3 of the Health and Safety Code proposed by AB 1608 to be operative only if this bill and AB 1608 are enacted and this bill is enacted last. This bill would incorporate additional changes to Section 75230 of the Public Resources Code proposed by SB 741 to be operative only if this bill and SB 741 are enacted and this bill is enacted last. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Bill Text

Action History

1. August 31, 2026

   Read second time. Ordered to third reading.

2. August 31, 2026

   From committee: Do pass. (Ayes 13. Noes 5.) (August 31).

3. August 28, 2026

   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.

4. April 02, 2025

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

5. March 20, 2025

   In Senate. Read first time. To Com. on RLS. for assignment.

6. March 20, 2025

   Read third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 759.)

7. March 18, 2025

   Read second time. Ordered to third reading.

8. March 17, 2025

   (Ayes 53. Noes 17. Page 643.)

9. March 17, 2025

   Ordered to second reading.

10. March 17, 2025

    Withdrawn from committee.

11. February 03, 2025

    Referred to Com. on BUDGET.

12. January 09, 2025

    From printer. May be heard in committee February 8.

13. January 08, 2025

    Read first time. To print.

Sponsors

• Jesse Gabriel · Primary

Votes

Subjects