Transcript Highlights:

• Question on the clean fuel standards and stuff.
• at reducing greenhouse gas emissions.
• And so although we can account for those emissions, we only have limited ability to regulate emissions
• to our clean drinking water standards.
• our clean drinking water standards.

Bills: HB2436, HB2322, HB2343, HB1420, HB2426, HB2271, HB2215, HB2421, HB2301, HB2296

Keywords: oil tanker, tank vessel, restricted waters, Puget Sound, San Juan Islands, Rosario Strait, Admiralty Inlet, Discovery Island, New Dungeness, tug escort, pilotage, marine safety, spill prevention, oil transport, petroleum shipment, coast guard authorization, Board of Pilotage Commissioners, articulated tug barge, bunker vessel, refueling vessel

Transcript Highlights:

• Fortunately, the ...legal standards and no clearly defined administrative process.
• , and just 14 percent have available toxicity standards to establish risk assessment.
• Texas will be prepared to decide how to address emissions. Mr.
• Without inspections, there is no guarantee that these vehicles meet basic emissions standards, considering
• standards, so it still allows for that.

Bills: SB3074, HB49, HB2440, HB3556, HB3619, HB3866, HB4042, HB4112, HB4271, HB4413, HB4426, HB5033

Keywords: SB 3074, TCEQ, Texas Commission on Environmental Quality, Water Code, permit applications, environmental permitting, administrative record, ex parte communications, legislative communications, governor, lieutenant governor, state legislators, district projects, public records, recusal, conflict of interest, substantial interest, agency transparency, environmental regulation, permit renewal

Summary: The committee heard and laid out several natural resources and environmental bills, with testimony focused on balancing development, public health, wildlife protection, and regulatory authority. SB 3074 would allow the governor, lieutenant governor, and legislators to communicate in writing with TCEQ about matters before the commission, with safeguards requiring the communication to be part of the record and allowing other parties to respond; a committee substitute narrowed it to written communications about permits only, limited legislator communications to facilities in their districts, and adjusted conflict-of-interest rules. HB 3556, as substituted, would require notice to Texas Parks and Wildlife for certain very tall structures in specified coastal counties and give TPWD a limited right to seek injunctive relief if mitigation is insufficient to prevent material harm to migratory birds; supporters said it would address ignored wildlife recommendations and protect key flyways, while opponents argued the bill was too broad, singled out wind energy, and gave one agency unusually strong enforcement power. HB 49 would expand liability protections for produced-water recycling and beneficial use; supporters said it would encourage reuse of a large wastewater stream and reduce disposal pressures, while opponents warned it could shield operators from responsibility before the science and standards are mature. HB 4413 would authorize mass-balance accounting for renewable biomass feedstocks, and HB 3866 would regulate intermediate bulk container recycling facilities near homes, with a committee substitute adding a grandfather clause and making implementation contingent on funding. The committee also heard bills affecting air and energy regulation. HB 5033 would create a trigger to end vehicle emissions inspections if federal law changes to allow it; the substitute removed a Supreme Court-related trigger, and the lone public witness opposed the bill, warning it would worsen air quality and harm nonattainment areas. HB 4112 would clarify that on-site storage of high-level radioactive waste is allowed at current and future nuclear reactors and university research reactors only for waste generated at that site; the substitute clarified the language and removed an inoperative permit condition, and witnesses from environmental and nuclear groups said the clarification was needed to prevent unintended restrictions while avoiding off-site storage. HB 2440 would prohibit state agencies from using air-quality rules to ban or restrict vehicles based on energy source, including internal combustion vehicles, and no public testimony was offered. HB 4271 would require TCEQ to hold public meetings on request for composting facility authorizations; the substitute limited the requirement to future applications and was presented as a transparency measure after a denied local request and extensive public comments. Additional bills addressed landowner protections and Railroad Commission oversight. HB 3619 would require the Railroad Commission to restore surface land after plugging or replugging operations and indemnify landowners from damages tied to authorized entry; a witness supported the bill but urged fixing a separate statutory loophole that he said allowed operators to enter unrelated tracts without notice. HB 4042 would extend Railroad Commission pipeline safety and fee provisions to propane distribution systems by removing the word “natural” from the relevant definitions. HB 4426 would set a 10-year permit term for commercial surface disposal facilities, allow renewal based on compliance history, and require renewal applications 120 days before expiration. The committee took no votes because a quorum was not initially present, and each bill was left pending after testimony and discussion.

Transcript Highlights:

• But they still wouldn't be zero-emission. They would be Tier 4. It's not zero-emission, right?
• and the ability to also adopt additional safety standards.
• Lou, you know, if we're going to do it, shouldn't we have safety standards rather than no standards?”
• That increases carbon emissions.
• A single reduction in carbon emissions.

Summary: The committee first established a quorum, adopted the consent calendar for SB 423 and SB 581, and then heard a series of bills, most of which were presented as streamlining or safety measures tied to transportation, climate, public lands, health care, and higher education. SB 71 by Senator Wiener would extend and expand a CEQA exemption for sustainable transportation projects, adding modes such as microtransit, paratransit, shuttles, and ferries, while also accepting committee amendments that narrowed a Tier 4 diesel rail provision, restored existing right-of-way language with utility protections, and set a new sunset date. Support came from transit agencies, local governments, and advocacy groups; some members raised concerns about the diesel rail language and possible interactions with housing-related legislation, but the bill advanced on a due pass vote as amended. The committee then heard SB 614 by Senator Stern on carbon dioxide pipeline safety. The bill would direct the State Fire Marshal to adopt safety standards for intrastate CO2 pipelines, building from federal draft rules and adding state discretion and possible enhanced protections such as planning zones and more detailed exposure modeling. Supporters argued California needs to fill a federal regulatory gap to advance carbon capture and climate goals, while environmental justice and conservation groups opposed unless amended, citing risks from CO2 leaks and asking for stronger siting restrictions and more specificity. The bill passed on a due pass vote to Appropriations, with members noting the need for continued work on the safety provisions. Senator Arreguín also presented SB 304, which would temporarily lift public trust use restrictions on specific land at Jack London Square to allow the Port of Oakland more leasing flexibility under conditions and annual reporting. The measure was described as a limited, time-bound effort to address high vacancy and revitalize the waterfront, and it drew support from Oakland city and county representatives with no opposition in the room. The committee then approved SB 304 on a due pass vote. Arreguín’s SB 830 followed, creating CEQA streamlining for Sutter Health’s new Emeryville hospital campus and designating the City of Emeryville as lead agency; supporters said it would preserve East Bay hospital access before seismic deadlines, and the bill passed with broad support and no opposition. Finally, Senator Caballero presented SB 486, a higher education planning bill intended to align UC and CSU enrollment growth with regional sustainable communities plans and to remove the need to analyze a no-project alternative in certain long-range development plans. Supporters said the bill would better integrate university enrollment forecasting into regional planning, while opponents warned that eliminating the no-project analysis could weaken accountability for housing and infrastructure impacts around campuses. Committee members expressed mixed views and asked for further clarification, but the bill was moved out on a due pass as amended vote to Appropriations. The transcript then shifted to SB 629, a fire response and rebuilding bill, with the author describing amendments to apply fire safety requirements in wildfire-burned areas, update fire mapping, and require annual defensible space inspections, though the discussion was cut off before any final action was shown.

Transcript Highlights:

• Smarter locally tailored emissions reduction policies in the future.
• Falsified vehicle emissions. A little off, pardon me.
• Clean Air Act health standards for ozone, having programs to look at vehicle emissions and make sure
• So we can't just unilaterally singling out emissions testing because...
• While modern vehicles are manufactured with better emissions and have cleaner emissions, of controls,

Bills: HB5057, HB4519, HB5033, HB3997, HB 1237, HB1904, HB4400, HB 1227

Keywords: solid waste management, exclusive contracts, public agency, contract amendment, notification requirements, Texas Health and Safety Code, Texas Emissions Reduction Plan, TERP, air quality, emissions reduction, clean fleet, alternative fuel, natural gas vehicles, hydrogen fuel, hydrogen infrastructure, diesel replacement, fleet grants, TCEQ, Texas Commission on Environmental Quality, clean school buses

Transcript Highlights:

• SB 1329 creates statewide standards for solar property assessments so the developers will know how they
• Senate Bill 1424 will allow zero-emission vehicle Senate Bill 1424 will allow zero-emission vehicle fueling
• This targeted sales and use tax for zero-emission vehicle fueling equipment.
• the tune of over a billion dollars have disappeared, our vehicle emissions standards have been rolled
• back, and our CAFE standards have been rolled back.

Keywords: 988, house, all

Transcript Highlights:

• </c> of the standards expected? of the standards expected?
• </c> standards, our soil screening standards standards, our soil screening standards and<01:19:46.719
• </c> and the emissions. and the emissions.
• </c> that standard. that standard.
• </c> the IA standard, right? the IA standard, right?

Keywords: 1189, house, all

Transcript Highlights:

• Just based on its AADT multiplied ultimately times the emissions, there's going to be more emissions
• So we know that vehicles create emissions.
• Capacity expansions, we know, will increase emissions, but reducing emissions by capital investments
• They changed some of the emission standards for new vehicles.
• down to minimize emissions and reduce traffic transport is the major source of costs and emissions associated

Bills: HF4807

Keywords: overweight vehicles, aggregate mining, local ordinance restrictions, legislative audit, transportation, resource inventory, 1183, house

Transcript Highlights:

• Particulate emissions down 50%, sulfur down 100%. These are quantifiable emissions.
• and fuel standards.
• Great jobs in California's clean fuel future while maintaining low-carbon emissions and fuel standards
• SAF is critical for reducing emissions and works well with the Low Carbon Fuel Standard.
• SAF is critical for reducing emissions and works well with the Low Carbon Fuel Standard.

Keywords: 987, senate, all

Transcript Highlights:

• It is now an integral part of our plan to reduce emissions.
• They do not account for the significant value of avoided greenhouse gas emissions.
• But I get to talk to you about emissions. So this is where we are and where we're going.
• We're not having to go out and pay for those emissions savings in terms of net benefits.
• While building to passive house standards makes abundant sense for...

Keywords: 995, all

Summary: The committee held a hearing on the value of Mass Save, with opening remarks emphasizing that despite past criticisms the program has delivered major energy, cost, climate, and equity benefits. The chair cited large avoided system costs, strong benefit-cost ratios, and recent legislative changes that set emissions goals, restricted fossil-fuel equipment incentives, and increased focus on low- and moderate-income households. Department of Energy Resources Commissioner Elizabeth Mahoney testified that Mass Save has weatherized hundreds of thousands of homes, reduced bills, avoided emissions, and that the current plan includes budget controls after the DPU ordered $500 million removed from the approved budget. She said the governor’s proposal to have only electric utilities administer the program was intended to reduce administrative costs and align with current implementation trends. Members questioned Mahoney about what counts as marketing and administration, and she said the category includes traditional advertising as well as community-based outreach, customer resource centers, and other customer engagement work, much of it in low- and moderate-income communities. She said administrative and marketing costs are under 5% of the budget, while more than 80% goes to incentives and direct program delivery. Several witnesses then focused on workforce and contractor impacts. Dave Betcher of Abode Energy Management and Rick Taglienti of Rogers Insulation said Mass Save sustains small businesses, creates careers, and supports thousands of jobs; both warned that budget cuts would reduce hiring, training, and work in homes and businesses. They also described a broad ecosystem of suppliers, trainers, and service providers that depends on stable program funding. Other witnesses addressed cost-effectiveness, affordability, and emissions. Anna Johnson of ACEEE said Massachusetts remains a national leader, with Mass Save returning about $2.80 per dollar invested, reducing peak demand, and lowering bills for participants, especially through weatherization and heat pumps. Kyle Murray of Acadia Center said the program is statutorily required to be cost-effective and has avoided billions in supply and infrastructure costs for all ratepayers, including nonparticipants, by lowering overall demand and peak prices. Amy Boyd-Rabin of the Environmental League of Massachusetts argued that efficiency is the cheapest way to meet climate targets and that cutting the budget would force more expensive power generation. The hearing also featured testimony on equity and housing: Mary Wampo described historic under-service to renter-heavy and lower-income communities and said recent reforms, including designated equity communities and performance incentives tied to equity, are helping correct that imbalance; Brian Biot and James Collins of LEAN/ABCD described low-income delivery systems and wraparound services; Barney Heath and John Nannari said Mass Save incentives are essential to affordable housing, passive house construction, and keeping projects on time and on budget. The final witnesses highlighted Connected Solutions and electrification: Sunrun’s Bronte Payne said the virtual power plant program saved more than it cost and helps avoid peaker plants and grid upgrades, and Highland Electric Fleets’ Ben Sondaga said electric school buses can provide similar grid benefits while lowering transportation costs for districts.

Transcript Highlights:

• </c> ways meet the standard early. ways meet the standard early.
• </c> carbon-free standard. carbon-free standard.
• emissions.
• emissions.
• Um and I uh have emission emissions.

Bills: HF4560, HF4559, HF2317, HF3179, HF4880, HF2862, HF4374

Keywords: Public Utilities Commission, PUC, energy regulation, utility regulation, electric utility, public utility, rate case, multiyear rate plan, decoupling, rate decoupling, greenhouse gas, social cost of carbon, environmental cost, resource planning, certificate of need, distributed renewable energy, interconnection, budget billing, electronic filing, contested case

Transcript Highlights:

• California has set ambitious zero-emission goals for our public transit systems, which...
• Our zero-emission goals.
• I'll note to the author, standardizing stop data will help improve the transit experience for so many
• Both federal and state statutes have standards for the safe operation of an OHV.
• However, there is no requirement that operators know these existing or other safety standards.

Keywords: 988, house, all

Transcript Highlights:

• The 2021 climate law directed EEA to set an emissions reduction goal for each three-year Mass Save plan
• They do not account for the significant value of avoided greenhouse gas emissions.
• But I get to talk to you about emissions. So this is where we are and where we're going.
• We're not having to go out and pay for those emissions savings in terms of net benefits.
• While building to passive-house standards makes abundant sense for ability.

Keywords: 1212, all

Bills: SB 8, SB 1, SB 2, SB 5, SB 10, HB27, HB7, HB17, HB1, SB 9, SB 7, SB 17, SB 4, HB20, HB18, HB7, HB17, HB1, HB20, HB18, SB9, SB7, SB17, SB4, SB1, SR85, SR87, SB8, SB5, SB2, SB10, HB27

Keywords: sex designation, restroom access, civil penalties, private civil right of action, women's privacy, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, disaster relief, flood preparedness, emergency funding, local government support, meteorological forecasting, abortion, healthcare, jurisdiction, civil action, qui tam

Bills: SB 8, SB 1, SB 2, SB 5, SB 10, HB27, HB7, HB17, HB1, SB 9, SB 7, SB 17, SB 4, HB20, HB18, HB7, HB17, HB1, HB20, HB18, SB9, SB7, SB17, SB4, SB1, SR85, SR87, SB8, SB5, SB2, SB10, HB27

Keywords: sex designation, restroom access, civil penalties, private civil right of action, women's privacy, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, disaster relief, flood preparedness, emergency funding, local government support, meteorological forecasting, abortion, healthcare, jurisdiction, civil action, qui tam

Transcript Highlights:

• And the emissions part is real.
• And the emissions part is real.
• </c> like the standard is not the standard like the standard is not the standard for<01:11:44.480><c>
• </c> certainly for the emissions part. certainly for the emissions part.
• </c><01:34:29.840><c> And</c> emissions? There's a cap behind it. And emissions?

Keywords: 1191, senate, all

Transcript Highlights:

• One of the most successful cost emissions reductions programs ever created.
• These account for 80% of California's climate emissions.
• Those emissions aren't currently accounted for at the rack.
• We want to reduce our greenhouse gas emissions.
• They're the gold standard on affordability.

Summary: The committee heard an overview and discussion of CARB’s proposed amendments to California’s Cap-and-Invest program, implemented under AB 1207 and SB 840. Chairs and members emphasized the program’s role in meeting climate targets while balancing affordability, and CARB described the proposal as intended to preserve market certainty, strengthen cost containment, address utility affordability, and support the state’s 2045 carbon-neutrality goal. CARB also noted the public comment period, the planned board hearing, and the goal of an effective date of September 1, 2026. Members questioned CARB on several implementation issues, including whether the rulemaking would be completed on time, the treatment of carbon capture and sequestration, the timing of the transfer of allowances from natural gas utilities to electric utilities, and the impact on ratepayers. CARB said it was on track to meet the May deadline, that CCUS/CDR could be further refined in the proposal and would also be addressed in a separate SB 905 rulemaking later in the year, and that it was seeking to protect ratepayers while inviting more utility data during the comment period. The committee also discussed refining-sector leakage risk, gasoline imports, and how imported fuel is accounted for under cap-and-invest versus the low-carbon fuel standard. A second panel of outside experts and stakeholders then testified. The Legislative Analyst’s Office and IEMAC representatives explained the major statutory changes, including putting offsets under the cap, shifting allowances from natural gas to electric utilities over time, and changing how allowance value is divided among utilities, industry, and the Greenhouse Gas Reduction Fund. They stressed that CARB has significant discretion in setting the allowance “pie,” and that more free allocations to utilities or industry reduce GGRF revenues. EDF’s representative argued the proposal should be adopted this spring, said the utility transition should happen faster, and urged a tighter near-term emissions cap. SCAPA, representing publicly owned utilities, opposed the proposed utility allocation changes, saying they would reduce expected allowances, undermine long-term planning, and could force higher rates or reduced decarbonization investments.

Transcript Highlights:

• SB 1329 departs from that standard.
• It provides clarity and a uniform standard for taxpayers to follow.
• These are practical and proven standards.
• So this zero-emission vehicle initiative is a priority.
• So this zero-emission vehicle initiative is a priority.

Summary: The committee heard and advanced several tax and revenue measures, beginning with SB 1329 on solar property tax assessment. The author and solar industry witnesses argued the bill would create a uniform statewide method, provide certainty for developers, and exclude tax credits and other intangibles from valuation; county assessors and several counties opposed it, saying it would reduce assessed value and depart from market-based appraisal. The bill was moved to Appropriations on a 2-0 vote and placed on call. The committee also heard SB 1406 to close the “Montana tax loophole” used to avoid California vehicle taxes, with support from the California Teachers Association and no registered opposition; it passed 2-0 and was placed on call. SB 984, conforming California law to the federal tipped-income deduction, drew support from the restaurant industry, Howard Jarvis Taxpayers Association, and enrolled agents, and passed 3-0 to Appropriations, on call. Later, the committee considered wildfire- and energy-related tax credits. SB 1084 would create a fire-safe home tax credit for home hardening and defensible space improvements; supporters said it would reduce wildfire losses and insurance costs, and it passed 3-0 on call. SB 1118 would provide credits for backup generators and solar battery systems in high fire-threat areas; the author framed it as a resilience measure for households and small businesses, but members raised concerns about cost, diesel use, and whether the credit would reach lower-income households. The bill was moved 1-0 and placed on call, with the chair and other members noting unresolved budget and policy concerns. SB 1424, expanding a partial sales tax exemption to zero-emission vehicle refueling equipment, received support from hydrogen and electric transportation groups and passed 4-0 on call. The committee also advanced SB 1249, a senior tax deduction for taxpayers ages 86 to 90, with support from LeadingAge California and senior advocates; members noted it was narrowly targeted and passed 4-0 on call. SB 1113, conforming California tax law to the federal tonnage tax regime for U.S.-flag international shipping companies, drew support from maritime industry groups and opposition from ILWU over the fiscal impact; it passed 4-0 on call. SB 1137, the Medical Expense Deduction Act, would allow a targeted deduction for medical expenses for lower-income taxpayers; supporters said it would help families facing high out-of-pocket costs, and it passed 4-0 on call. Finally, SB 1415 would extend a partial welfare property tax exemption to mixed-income housing that includes moderate-income units; supporters said it would help finance “missing middle” housing, while assessors and housing stakeholders requested amendments and guardrails. The bill was also moved forward on a committee vote and placed on call.

Transcript Highlights:

• This underscores the need to lower the standard and strengthen enforcement.
• It seems to be creating a new health standard.
• The issue is not that it is unknown to the state where the sources of these emissions are.
• The issue is that we don't have a standard that reflects the current science.
• It seems to be creating a new health standard.

Summary: The Senate Committee on Environmental Quality heard four bills. SB 299 by Senator Cabaldon would extend a CEQA exemption for child care facilities to those located in residential zones, with committee amendments adding guardrails excluding sites on protected lands and within 3,200 feet of oil wells or refineries. Support came from child care, local government, planning, county, and rural county groups; one environmental opposition witness raised concerns about broader CEQA issues. Members generally praised the bill as a needed correction to last year’s CEQA changes and noted its importance for child care access and community-serving facilities. SB 58 by Senator Padilla would update the state’s approach to hydrogen sulfide by strengthening monitoring and response standards based on current science and public health impacts, especially in the Tijuana River Valley and Salton Sea areas. Testimony in support emphasized serious undercounting of exposures and health harms in low-income, Latino, Indigenous, and immigrant communities; air district representatives said they would review amendments, while business and industry witnesses expressed concern about late amendments and possible implications for geothermal operations. The committee discussed the bill as a statewide framework rather than a district-specific response, and the author accepted committee amendments. SB 811 by Senator Caballero would create a statutory framework for regulating metal shredding facilities, clarifying DTSC enforcement authority and incorporating prior negotiated environmental justice and fire-safety amendments. Supporters from the recycling industry and labor said the bill would reduce legal uncertainty, protect jobs, and preserve an important circular-economy sector; opponents from community, environmental, school, and local government groups argued it weakened hazardous waste protections and did not adequately address pollution and fire risks, especially in West Oakland. SB 501 by Senator Allen would expand California’s battery extended producer responsibility program to include medium-format batteries such as e-bike and outdoor equipment batteries; local governments and recycling groups supported it as a common-sense response to fire and disposal problems, while one battery recycler sought further discussion on implementation. All four bills were voted out of committee and sent to Appropriations, with SB 58, SB 299, and SB 811 passing unanimously and SB 501 passing on a 5-2 vote after additional members joined the committee.

Transcript Highlights:

• Including voluntary limits on emissions from mobile sources and non-road engines in the permit for a
• This voluntary program allows participants to generate ERCs by creating permanent emission reductions
• And when scope three emissions are included, nuclear energy outperforms renewables every time.
• The EPA standards for this clean-burning fuel have not been renewed.
• The EPA is a federal standard, so we can't necessarily do this all on our own as a state.

Summary: The committee took up several energy, transportation, and land-use bills. HB 2428, dealing with county and ADEQ authority to issue voluntary permits certifying emission reduction credits for mobile and non-road sources, received neutral testimony from ADEQ and support from Maricopa County; the committee adopted the Griffin amendment and passed the bill 10-0 with a due pass recommendation. HB 2145, which expands who may request certain gasoline fuel reformulation actions and is contingent on EPA approval, also passed on a 5-4 vote after brief staff explanation and no amendment. The committee then considered HB 2331, a strike-everything amendment requiring electric utilities to ensure 85% of generating capacity serving retail load comes from “reliable resources” by 2030. Supporters, including the sponsor and Arizona Free Enterprise Club, argued it would protect affordability and grid reliability by favoring dispatchable power; opponents, including the Sierra Club and Rural Arizona Action, said it would effectively favor fossil fuels, raise costs, and limit cleaner resources. The committee adopted the amendment and passed the bill 6-4. HB 2795, which would bar counties from using zoning to block small modular reactors once federal permitting conditions are met, drew strong support from the sponsor and industry advocates who framed it as pro-property-rights and pro-nuclear, and opposition from county, city, and environmental groups who raised preemption, local control, safety, waste, and siting concerns; it passed 6-4. The committee also passed HB 2340, which allows the Power Plant and Transmission Line Siting Committee to evaluate proposed generating facilities along with transmission lines, on a 5-4 vote. HB 2400, an emergency measure to suspend the motor vehicle fuel tax in Areas A and C during part of the year and replace the lost revenue through state highway funding, drew opposition from cities and counties over transportation funding impacts but support from the sponsor and some members focused on gas affordability; the Griffin amendment was adopted and the bill passed 6-4. Finally, HB 2401 was introduced as a requirement for ADEQ to conduct a biennial review of available fuel formulations and their air-quality impacts in Areas A and C, but the transcript ends before testimony or action on that bill is completed.

Transcript Highlights:

• These account for 80% of California's climate emissions.
• Those emissions aren't currently accounted for at the rack.
• We want to reduce our greenhouse gas emissions.
• on a direct path to decrease their greenhouse gas emissions.
• They're the gold standard on affordability.

Summary: The committee heard an overview of CARB’s proposed amendments to California’s Cap-and-Invest program, implemented under AB 1207 and SB 840 after last year’s reauthorization through 2045. CARB said the draft rule changes are intended to support affordability, market certainty, and the state’s 2030 and 2045 climate targets, while also addressing offsets, utility allowance transfers, leakage protections for industry, and post-2030 allowance budgets. Members emphasized the importance of completing the rulemaking on schedule this spring so the changes can take effect by September 1, 2026. A major focus was how allowances are allocated among electric utilities, natural gas utilities, industry, and the Greenhouse Gas Reduction Fund. CARB explained that the proposal transfers natural gas utility allowances to electric utilities over time to support electrification and ratepayer protection, while maintaining free allowances for industry to reduce leakage risk and preserve in-state manufacturing and refining. Several members and panelists questioned whether the proposed utility changes could raise rates, whether the transition from gas to electric credits should happen faster, and whether the industrial allocation changes reduce climate credit and GGRF revenues more than necessary. CARB and panelists said they were open to additional data and comments, and noted that the proposal is still in public comment. The committee also discussed carbon capture, carbon removal, and refining. Members asked CARB to ensure that CCUS and CDR are clearly recognized as viable compliance pathways and to keep SB 905 rulemaking on track. On refining, members raised concerns about imported gasoline, leakage, and the need for better data on the carbon intensity of imported fuels; CARB said cap-and-invest applies to fuel suppliers at the rack, while life-cycle accounting issues are handled more through the Low Carbon Fuel Standard and related modeling. CARB said it is continuing technical work on those data tools. In the second panel, the LAO, IEMAC, EDF, and SCAPA representatives generally agreed that the program faces real tradeoffs between affordability, ambition, and leakage protection. The LAO and IEMAC stressed that the Legislature should scrutinize how CARB divides the allowance “pie,” since more free allocations to utilities or industry mean less revenue for GGRF. EDF argued the program could be somewhat more ambitious in the near term without harming affordability, while SCAPA said the proposal would reduce allowances for publicly owned utilities and could undermine early decarbonization investments and ratepayer benefits. No votes were taken during the hearing.