Transcript Highlights:

• We're working with CARB on several products.
• My next question is— SBX1-2 required CEC and CARB to submit this report that you refer to in response
• Has CEC or CARB studied the idea of allowing departures from CARBOB or pursuing a regional fuel blend
• And if I may, I did want to also add that there is also a CARB rulemaking that is ongoing right now.
• And so we will be working collaboratively with CARB and the utilities to ensure this other significant

Summary: The Senate Budget Subcommittee No. 2 on Resources, Environmental Protection and Energy heard presentations on six budget-related issues and took no votes; all items were held open for a future hearing. The first item concerned funding for the California Transmission Accelerator Revolving Fund under SB 254 and Proposition 4. GoBiz and IBank requested nearly $26 million over five years and 10 limited-term positions to evaluate and finance eligible transmission projects. The LAO said the proposal was broadly consistent with Prop. 4 but noted many implementation details remain unresolved. Senators questioned how the program would lower ratepayer costs, how funds would be protected, and whether the full requested amount was necessary; the administration said the financing strategy is still being developed and that consultants are needed. The committee then discussed trailer bill language to redirect $22 million in General Fund money from the DEPA program to DSGS for summer 2026, and to use roughly $70 million in CalSHAPE interest for ratepayer relief through ELRP or an equivalent program in 2027-28. CEC and CPUC staff said DSGS and ELRP are reliability tools, not PSPS programs, and explained that DSGS had enrolled over 1,000 MW and was expected to have about $52 million available for 2026. Senators and the LAO raised concerns about ending a successful DSGS program, the complexity of transitioning customers to ELRP, and whether CalSHAPE funds should instead continue school HVAC and plumbing projects. Public commenters largely supported extending CalSHAPE and continuing or expanding DSGS rather than shifting funds to ELRP. The subcommittee also heard on petroleum market oversight under SBX1-2 and ABX2-1. The CEC and its Division of Petroleum Market Oversight requested about $1.67 million and a small permanent staffing increase to implement new inventory, resupply, and market analysis duties. Senators pressed the agencies on gasoline price spikes, refinery maintenance, price gouging, and the status of the transportation fuels transition plan, which staff said would be released in draft form soon. Public testimony supported DPMO’s work and called for continued oversight of gasoline pricing. Finally, the CPUC presented three additional budget proposals: resources to implement AB 1207’s changes to the California climate credit, funding for a study of large electrical loads such as data centers under SB 57, and staffing for AB 825’s regional market participation requirements. The LAO said the AB 1207 request may go beyond the statute and urged the Legislature to decide whether it wants a simpler or more complex climate credit redesign. Senators questioned the cost of the work, the need for ongoing staffing, and how ratepayer interests would be protected. The CPUC said the work is needed to adapt to changing load patterns, electrification, data center growth, and potential regional market participation. Public commenters also supported DPMO funding, CalSHAPE, and DSGS, and some urged the Legislature to keep DSGS at the CEC rather than shift funds to ELRP.

Transcript Highlights:

• California at CARB.
• But is this trend something that you all are paying attention to, in terms of especially at CARB...
• Is this something that CARB is sort of paying attention to in the medium-term outlook, maybe not...
• And again, for CARB, your scoping plan projects about a 47% drop by 2030.
• **Vice Chair:** So I guess for both CARB and...

Committee: Senate Environmental Quality

Summary: The Senate Environmental Quality Committee held an informational hearing on the environmental impacts and planning considerations associated with refinery closures. In opening remarks, the chair framed refinery shutdowns as a complex part of California’s decarbonization transition and said the committee would focus on environmental and land-use issues, while Vice Chair Gunda argued closures reflect years of policy-driven disinvestment and warned that supply disruptions and higher prices could harm working families. State agency witnesses from the Energy Commission, CARB, and the Water Boards described the state as being in a “mid-transition,” with declining gasoline demand, growing zero-emission vehicle adoption, and increasing conversion of some refinery assets to renewable fuels, but also with abrupt capacity losses that can force greater reliance on imports and storage. They emphasized the need for proactive planning, transparency, and coordination across agencies, and noted that refinery closures can stress pipelines, terminals, and other linked infrastructure, with potential liabilities falling to the state if those assets are not financially supported. The Water Boards explained their cleanup authorities and tools for refinery decommissioning, including investigation, monitoring, remediation, and enforcement under the Water Code, and said site-specific cleanup plans depend on contamination, groundwater conditions, and future land use. They noted that decommissioning can reveal previously inaccessible areas and require additional sampling or wells, and that cleanup costs can range from tens to hundreds of millions of dollars. Committee members pressed the witnesses on whether the state has enough information to plan for land transitions, whether current tools are adequate, and whether more standardized procedures or financial assurances are needed. The witnesses generally said existing tools are useful but that more transparency and better data sharing would help communities and policymakers understand liabilities and long-term redevelopment opportunities. Members also questioned the relationship between California policy, refinery closures, imports, and global emissions. CARB said its programs apply to transportation fuel suppliers whether fuel is refined in-state or imported, and that its climate and air-quality rules are designed to reduce emissions and avoid leakage. Some senators argued that California’s policies have accelerated closures and that demand has not fallen fast enough to offset lost refining capacity, while agency witnesses responded that closures are also driven by global market forces, aging infrastructure, crude quality, and changing fuel demand. The committee then heard from outside experts, including a Notre Dame professor who said closure costs are often underestimated and that stronger financial assurance requirements can shift company behavior, a Stanford/SLAC researcher who outlined five drivers of refinery closures, and an environmental attorney who discussed community impacts and lessons from the Phillips 66 Los Angeles refinery closure. No votes or formal actions were taken; the hearing was informational and focused on testimony and questions.

Transcript Highlights:

• Well, the program that I mentioned, HVIP—was that the... so CARB runs a program called HVIP.
• CARB additionally has done quite a bit.
• The air districts and CARB are implementing the AB 617 program in many communities across the state.
• The air districts in CARB are implementing the AB617 program in many communities across the state.
• Also, CARB has been a great partner over the course of time.

Summary: The Senate Select Committee on Hydrogen Energy held an informational hearing on California’s hydrogen leadership, with the chair framing hydrogen as a complementary clean-energy pathway for hard-to-electrify sectors such as heavy-duty trucking, transit, rail, ports, industrial uses, and backup power. The first panel of private-sector witnesses from the California Hydrogen Business Council, Bosch, Hyundai, and Sierra Northern Railway described existing deployments in California, including hydrogen buses, trucks, fueling infrastructure, and the nation’s first hydrogen fuel cell switcher locomotive. They emphasized that the technology is commercially ready but scaling is constrained by permitting delays, high fuel and equipment costs, infrastructure gaps, and uncertainty around federal support and incentives. Witnesses urged stable state policy, targeted investment, and concentrated deployment in high-impact corridors such as ports and freight hubs. Committee members also asked about labor standards, community engagement, and the current size of the hydrogen vehicle fleet in California and abroad. The second panel focused on air quality, climate, safety, and public health. Testimony from CAPCOA, the Coalition for Clean Air, the California State Building and Construction Trades Council, and a UC Berkeley researcher argued that hydrogen fuel cells can reduce diesel-related pollution and health harms when used in the right applications, especially in ports, rail yards, warehouse corridors, transit depots, and backup power for facilities like data centers. Witnesses cautioned that hydrogen should be used selectively, produced as cleanly as possible, and paired with early community engagement, safety planning, and environmental justice protections. The researcher cited projected reductions in NOx, particulate exposure, premature deaths, and health costs under broader hydrogen adoption. Committee members discussed workforce training, apprenticeship programs, and how to balance near-term costs with long-term infrastructure value. The final panel provided public-sector updates from SamTrans, the Governor’s Office of Business and Economic Development, the Port of Long Beach, and First Public Hydrogen Authority. SamTrans described its transition to a large hydrogen bus fleet and said the loss of expected ARCHES funding created a major infrastructure gap; it asked the state to protect transit funding, restore a sales tax exemption for zero-emission buses, and address axle-weight rules. GoBiz said the state should focus on creating demand, reducing costs, and streamlining permitting, while acknowledging the disruption caused by the federal cancellation of ARCHES funding. The Port of Long Beach reported hydrogen truck deployments, port incentives, and a planned public fueling station, but said high costs, fuel shortages, and uncertainty have slowed momentum. First Public Hydrogen Authority described efforts to aggregate municipal demand and support new green hydrogen production projects, stressing the need for long-term market signals and financing. Committee members repeatedly emphasized the need for state support, infrastructure investment, and a diversified fuel strategy to keep hydrogen deployment moving forward.

Transcript Highlights:

• address some of the challenges of execution, implementation, and the conflicts between the regions and CARB
• CTC does not have the same technical expertise that CARB has and isn't bound by the scoping plan to the
• already has many regulations and funding programs that encourage the transition to zero-emission, and CARB
• already tracks how those ...and funding programs that encourage the transition to zero-emission, and CARB
• So in the context here, COGs are given a target by CARB to reduce their GHG.

Summary: The Senate Transportation Committee heard several bills focused on transportation planning, freight, emissions, and vehicle regulations. SB 1087 by Senator Cabaldon would modernize SB 375 by extending regional plan cycles from four to eight years, improving coordination with CARB and other state agencies, and aligning funding and guidelines more closely with climate and mobility goals. Supporters, including SCAG, MTC/ABAG, other MPOs, cities, and environmental groups, said the current process is costly and inefficient; opponents from clean air and housing groups warned it could weaken accountability for climate targets and shift focus away from vehicle miles traveled reductions. The committee also heard SB 1315, which would require manufacturers to report software updates for semi-autonomous vehicle features to the Insurance Commissioner so the state can better track safety and policy impacts; there was no opposition testimony. The committee also considered SB 1275 by Senator McNerney, a tax proposal to replace the state sales tax on motor vehicles with a deductible vehicle license fee to reduce Californians’ federal tax burden. A Legislative Analyst’s Office witness explained the tax-policy mechanics and estimated savings, and the bill drew support from the author and no formal opposition. SB 1287 by Senator Hurtado would create a targeted tax credit for short-line railroad infrastructure investment; supporters said it would improve freight efficiency, reduce truck traffic and emissions, and help rural and agricultural economies, with no opposition testimony. SB 1064 by Senator Daly would reduce the frequency of clean truck checks for very low-mileage heavy-duty and off-road vehicles; supporters called it a practical affordability measure, while clean air advocates said they wanted to see the amended text and CARB analysis before taking a final position. The committee also heard SB 1375 by Senator Cortese, which would limit duplicative environmental review for certain transit and rail projects that have already undergone extensive prior review; supporters said it would save time and money while preserving other environmental protections, and there was no opposition. SB 1392, also by Senator Cortese, would expand the smog-check exemption for certain older collector vehicles used mainly for shows, parades, and historic display; classic-car and lowrider supporters said the bill protects automotive heritage and reflects limited actual use, while air-quality groups argued it would increase emissions and weaken smog-check accountability. After testimony and committee discussion, the committee took roll-call votes and advanced all measures, including consent item SB 1213, to the Senate Appropriations Committee, with SB 1392 receiving the most divided vote.

Transcript Highlights:

• And just following up on that a little bit, do you think that CARB has gone too far in the sense that
• I'll give you just a classic example: the question about ZEVs is really a CARB question, but it also,
• We had CARB and we did a lot of things about all of the ZEV program and stuff last year.
• before answering that the Air Resources Board, of course, is a board within our agency family, so CARB
• So this is a very unique situation because CalRecycle, CARB, DTSC, they're all different authorities

Transcript Highlights:

• of air quality incident response centers in collaboration with the California Air Resources Board, CARB
• ...well-equipped and coordinated air quality incident response centers through collaboration with CARB
• The Legislative Analyst's Office this year urged the Legislature to reject a similar CARB regulatory
• But most importantly, we oppose this bill because it ignores the fact that CARB has other options to
• But most importantly, we oppose this bill because it ignores the fact that CARB has other options to

Summary: The committee heard several climate, environmental, and housing bills. AB 1425, dealing with pit dewatering near the San Joaquin River Parkway, drew extensive testimony. The author and supporters argued the bill was needed to protect the river, groundwater, floodplain conditions, tribal and cultural resources, and public access from a proposed mining project near the river. Opponents, including Cemex, labor representatives, and industry groups, said the bill would bypass the CEQA process before it was complete, threaten jobs, and create uncertainty for an existing operation. Members questioned both sides about hydrology, blasting, dewatering, and the adequacy of the ongoing environmental review. The bill was moved, but several members expressed concern about preempting CEQA and some did not vote or voted no. AB 881, which would allow California to move forward with carbon capture and sequestration pipelines, was presented as a way to advance state climate goals and capture federal funding. Supporters, including SMUD, labor, and industry groups, said the bill would help deploy carbon capture safely and preserve jobs. Environmental justice opponents supported stronger safety direction and warned that CO2 pipelines pose serious risks and that the state should not move ahead without clearer standards. The bill received a due-pass recommendation to Appropriations. AB 1207, on the cap-and-trade allowance price ceiling and the social cost of carbon, was presented as a science-based update to California’s climate policy. The author and EDF said the bill would keep the program aligned with current economic and climate data and protect it from federal political interference. It received broad support and a due-pass recommendation. AB 1106, creating a coordinated network of air quality incident response centers, was also approved after testimony about wildfire smoke, toxic emissions, and the need for better real-time monitoring during disasters. AB 28, the Landfill Fire Safety Act, focused on the Chiquita Canyon landfill fire and related health impacts in Castaic and Val Verde; residents described serious illnesses and contamination concerns, while landfill and county representatives warned about costs and asked for more study. The committee nonetheless advanced the bill with a due-pass recommendation. The committee also heard AB 357, which would speed Coastal Commission review of student and faculty housing projects, with supporters citing student homelessness and opponents urging caution but acknowledging the need for more housing; the bill was presented and discussed, with the committee emphasizing the need to balance housing production and coastal oversight.

Transcript Highlights:

• We're working with CARB on several products.
• My next question is— SBX1-2 required CEC and CARB to submit this report that you refer to in response
• CARB is in the process of collecting feedback on the overall mid- and long-term transition strategies
• Has CEC or CARB studied the idea of allowing departures from CARBOB or pursuing a regional fuel blend
• And if I may, I did want to also add that there is a CARB rulemaking that is ongoing right now.

Summary: The Senate Budget Subcommittee on Resources, Environmental Protection and Energy heard six budget-related items and took no votes, holding all items open for a future hearing. The first item concerned a climate bond expenditure plan for the California Transmission Accelerator Revolving Fund under SB 254. GoBiz, IBank, and the Department of Finance described a request for nearly $26 million and 10 limited-term positions to develop financing strategies and evaluate transmission projects, while the LAO said the proposal was broadly consistent with Prop. 4 but noted that the Legislature may want to provide more direction on program design. Senators questioned how the proposal would lower ratepayer costs, protect state funds, and ensure accountability for billion-dollar transmission projects. The second item covered trailer bill language to redirect funding among demand-side reliability programs. Finance proposed moving $22 million from the DEPA program to DSGS for summer 2026 and using CalSHAPE interest funds for ELRP or an equivalent CPUC program in 2027-28, with CEC and CPUC coordinating the transition. Senators and LAO questioned why CalSHAPE funds should not continue supporting schools, and several members argued DSGS has been more successful and should continue rather than be shifted to ELRP. CEC and CPUC explained that DSGS and ELRP serve different reliability functions and do not address public safety power shutoffs. Public commenters, including school groups and clean energy advocates, split between extending CalSHAPE for school HVAC/plumbing projects and preserving or expanding DSGS. The committee also heard on petroleum market oversight implementation under SBX1-2 and ABX2-1, with the CEC and its Division of Petroleum Market Oversight requesting additional staffing to support inventory monitoring, refinery resupply analysis, and market oversight. Senators pressed for details on investigations, refinery margins, gasoline price spikes, and the transportation fuels transition plan, while staff said the draft plan would be released soon and that DPMO’s work on branded versus unbranded gasoline remains ongoing. Finally, the CPUC presented three additional proposals: implementing AB 1207’s climate credit reforms, studying large-load/data center cost impacts under SB 57, and preparing for regional market participation under AB 825. The LAO repeatedly cautioned that some of these requests may go beyond statutory minimums and urged the Legislature to decide how much policy direction and staffing it wants to provide. Public commenters supported DPMO funding, opposed ending CalSHAPE, and strongly favored continued DSGS funding over a new ELRP structure.

Transcript Highlights:

• CARB needs to provide a rationale for setting $118 million allowances as the pool of allowances available
• , and CARB must consider whether the MDI objective could be achieved with a much smaller allocation amount
• CARB needs to provide a rationale for setting $118 million allowances as the pool of allowances available
• CARB needs to provide a rationale for setting $118 million allowances as the pool of allowances available
• was a hard-fought compromise, and we'll note that this would have been a lot easier for you all if CARB

Summary: The Assembly Budget Committee held a weekend informational hearing on the final 2026-27 budget package, with no votes taken. The Department of Finance presented 16 bills, including two budget bill juniors and 14 trailer bills, covering climate bond and greenhouse gas reduction fund appropriations, health care, education, housing, labor, transportation, wildfire mitigation, and technical cleanup items. Major items included funding for Proposition 4 climate programs, a state-only dialysis program for restricted-scope Medi-Cal enrollees, 988 crisis center governance and interoperability with 911, CalFood, child nutrition, workforce and housing programs, and a package of film tax credit changes. Trailer bills also addressed TK-12 and higher education technical changes, developmental services, early education, the 2028 Olympics, transmission projects, wildfire mitigation tax exclusions, and other implementation fixes. Members highlighted several provisions, including the extension of CalSHAPE deadlines for school HVAC projects, funding for geothermal and wildfire prevention, restoration of goat herder wage parity to support prescribed grazing, and support for state scientists’ labor contracts. There was also discussion of trauma recovery and training funding for women’s prisons, 988 and LGBTQ+ youth crisis services, and the need to address county indigent care and AB 85 technical issues in the future. Public commenters largely praised funding for transit, housing, food assistance, air quality programs, and film tax credit fixes, while some expressed disappointment over the lack of funding for part-time faculty office hours, county indigent care technical corrections, expanded immigrant food assistance, and additional support for certain health and energy programs. A major point of contention in public testimony was SB/AB 194, with one group opposing it as a threat to a Los Angeles street safety project near Forest Lawn Avenue, while supporters argued it was needed to ensure a transparent public process for roadway changes affecting cemetery access and traffic. Other commenters supported or criticized specific budget items such as GGRF allocations, CalSHAPE, the Demand Side Grid Support Program, the FARMER program, and funding for regional housing and transit agencies. The chair closed by thanking members, staff, and the public, noting the committee’s work over two years and indicating the package would move to floor action the following week.

Transcript Highlights:

• SB 88 promotes the use of biomass for bioenergy by asking CARB to include a strategy in the next scoping
• We see that this is going to help CARB include this issue of biochar and look at the value of biochar
• , which incorrectly assume that woody biomass energy and products are beneficial and which mandate CARB
• We support requiring CARB to develop methods to quantify life-cycle emissions from biomass products,
• We support requiring CARB to develop methods to quantify life-cycle emissions from biomass products,

Committee: House Natural Resources

Summary: The Assembly Natural Resources Committee met with an initial quorum delay, then approved a consent calendar including SB 234, SB 484, and SB 839. The committee then heard SB 88, which would direct state agencies to support biomass utilization and biochar/low-carbon energy strategies; supporters argued it would reduce wildfire and agricultural burning emissions and create rural economic opportunities, while opponents said woody biomass energy is dirty, costly, and harmful to forests and public health. The bill was amended and passed to Appropriations on a due-pass vote. The committee next considered SB 653, defining “environmentally sensitive vegetation management” to support wildfire fuel reduction projects that also protect biodiversity. Mid-Peninsula Regional Open Space District and the California Invasive Plant Council supported the measure as a voluntary framework with no new mandates, and a committee member requested to be added as a coauthor. The bill passed to the floor. SCR 50, urging the state to define maladaptation and better evaluate climate resilience policies and investments, was also adopted with no opposition. Later, the committee heard SB 567, a pilot program to convert idle oil and gas wells into gravity-based energy storage wells. Supporters said it could help meet energy storage needs and accelerate well plugging, while the Water Replenishment District opposed unless amended, seeking protections for groundwater basins and stronger leak-notification requirements. Despite those concerns, the bill passed to Appropriations. Finally, SB 831 clarified the Geological Survey’s role in mapping geologic hazards, including those tied to climate change such as post-fire debris flows, subsidence, and coastal erosion; it received support from CalCIMA and passed to Appropriations. The committee concluded by recording votes on absent members and closing the hearing.

Transcript Highlights:

• I was appointed last fall, approached and asked to make application for the CARB, but was completely
• unfamiliar with what the CARB was.
• I've been appointed by the governor to serve on the CARB board.
• The Senate Natural Resources Committee has scheduled a confirmation hearing for the CARB board on Tuesday
• My hope is to be confirmed by the Senate Natural Resources Committee to serve on the CARB board.

Committee: Senate Senate Natural Resources Committee of Reference

Summary: The Senate Natural Resources Committee met to consider several board nominations, beginning with four nominees to the Arizona Game and Fish Commission Appointment Recommendation Board. Michael Cravens, Jared Lyman, Nathan Reese (who submitted a written statement and did not attend), and Richard Williams each described their backgrounds in wildlife management, ranching, public lands, or conservation, and emphasized balance, pragmatism, and public service in selecting commission candidates. Members asked about their experience, perspectives on candidate evaluation, and the role of the board. Each nominee was advanced to the full Senate by separate motions, all approved on 7-0 votes with one member not voting. The committee then heard Darren Rasmussen’s nomination to the Arizona State Land Department Board of Appeals. Rasmussen discussed his long career in property appraisal at the private, county, and state levels, including work with county assessors and valuation training. Senators focused on his ability to bring transparency, statutory compliance, and consistency to state land appraisals and appeals. His nomination was also forwarded to the full Senate on a 7-0 vote with one not voting. Next, the committee considered the Arizona Livestock Loss Board nominees, Stephen Clark and Randy Dahl. Clark, who chairs the board, explained the board’s process for compensating ranchers for wolf depredation and described the distinction between confirmed losses and “probables.” Senators asked about reimbursement procedures, the range of Mexican gray wolves, and whether wolves had attacked humans in Arizona; Clark said there had been no human attacks in the state and that livestock losses had been compensated. Dahl was unable to attend but submitted a statement citing his farming background and business and engineering experience. Both nominees were confirmed by 7-0 votes with one member not voting. Finally, the committee heard from Carolyn Radajack and Stephanie Teske for the Arizona State Veterinary Medical Examining Board. Radajack highlighted her prior service on the board’s investigative committee and her experience with disciplinary rules, while Teske emphasized her background as a sixth-generation rancher, veterinary assistant, and agriculture regulator, with a focus on rural livestock care and access to veterinarians. Senators discussed rural veterinary shortages, telemedicine, and the changing structure of veterinary practice. Both nominees were advanced to the full Senate on 7-0 votes with one member not voting.

Transcript Highlights:

• I was appointed last fall, approached and asked to make application for the CARB, but completely unfamiliar
• with what the CARB was.
• I've been appointed by the governor to serve on the CARB board.
• The Senate Natural Resources Committee is scheduled to hold a confirmation hearing for the CARB board
• My hope is to be confirmed by the Senate Natural Resources Committee to serve on the CARB board.

Committees: Senate Natural Resources , Senate Senate Natural Resources Committee of Reference

Transcript Highlights:

• Although I have never doubted the intention of the program or the dedicated staff at CARB, as well as
• By requiring the chair of CARB and the executive directors or air pollution control officers of relevant
• The bill also makes updates to the monitoring plans and, most importantly, requires CARB and air districts
• districts, candidly, from having more flexibility. ...locking up limited resources and preventing CARB
• And when we talked about ZEVs and clean vehicles, not funding one of the most successful programs CARB

Summary: The Assembly Natural Resources Committee heard three major bills. SB 237, by Senator Grayson, proposed a package of fuel-supply and permitting changes aimed at stabilizing gasoline prices during California’s energy transition. Supporters, including state officials, Kern County representatives, labor groups, and industry groups, said it would help retain in-state refining and drilling capacity, reduce price spikes, and protect jobs. Opponents, including environmental justice and conservation groups, argued it would expand oil drilling without enough community protections and would not meaningfully address climate goals. After extensive testimony and questions about emissions, sunsets, and long-term strategy, the committee passed SB 237 on a due pass vote, with some members voting no or not voting. SB 352, by Senator Reyes, sought to strengthen implementation of AB 617, the community air protection program, by codifying the Environmental Justice Bureau in the Department of Justice, extending monitoring requirements, and requiring annual legislative reporting. Supporters said the bill would improve accountability and ensure that funding for impacted communities actually produces emissions reductions. Some environmental justice advocates were neutral or not fully supportive because they wanted stronger language, while business and industry groups opposed the bill, arguing it was added late and duplicated existing processes. The committee approved SB 352 on a due pass vote. SB 840, by Senator Limon, was the cap-and-invest reauthorization package. It would update offset protocols, adjust how revenues are spent, and continue funding for key climate, housing, transit, and community programs, including AB 617. Support came from environmental groups, labor, local governments, housing advocates, and clean transportation organizations, while some agricultural interests objected that the package did not sufficiently prioritize climate-smart agriculture and methane reduction programs. The committee passed SB 840 on a due pass vote as well. All three measures were later confirmed out of committee after calls were lifted.

Transcript Highlights:

• And we've been working hard in CARB to deploy the strategies in a cost-effective way that address these
• Is this something that CARB is sort of paying attention to in the medium-term outlook, maybe not...
• Is this something that CARB is sort of paying attention to in the medium-term outlook, maybe not right
• So when California reduces in-state production but imports more foreign crude, does CARB account for
• And again, for CARB, your scoping plan projects about a 47% drop by 2030.

Committee: Senate Environmental Quality

Transcript Highlights:

• By the way, CARB is really good at estimating what the health care savings is going to be for society
• By the way, CARB is really good at estimating what the health care savings is going to be for society
• We also increase transparency and accountability for CARB by requiring CARB to appear before the Legislature
• It requires CARB to prioritize affordability and consumer protection.
• It requires CARB to prioritize affordability and consumer protections in designing the program.

Summary: The meeting began with procedural announcements, a vote change on SB 414, and adoption of the consent calendar, including ACR 107 on the Diablo Range. Members also agreed to take several Senate messages up without reference to file. A point of order was raised urging members to respect staff by arriving on time after a late-night session. The main floor debate centered on SB 237, a major oil and gas measure. Supporters said it would help stabilize fuel supply and prices, address refinery closures, strengthen offshore pipeline safety, clarify Kern County oil permitting, and allow possible suspension of the summer gasoline blend. Opponents argued it was a giveaway to big oil and a setback for climate goals. The bill passed 59-0. The Assembly then passed SB 254, an energy affordability and wildfire package that would reduce ratepayer costs, strengthen the wildfire fund, and speed utility infrastructure and clean energy permitting; it passed 58-0. SB 840, the cap-and-invest reauthorization and spending framework, drew the most divided debate, with supporters emphasizing climate policy, transit, housing, and community investments, and opponents calling it a tax increase and slush fund; it passed 54-15 on the urgency and 54-15 on the measure. AB 1207, the Assembly’s cap-and-invest reauthorization bill, also passed, 55-10 on both urgency and the measure. Members also approved SB 352 to make the Bureau of Environmental Justice permanent and require more reporting on air quality and AB 825 to create a Westwide electricity market, which supporters said would lower costs, improve reliability, and reduce emissions; AB 825 passed 67-2. AB 8, a cannabinoids bill with Senate amendments, was concurred in 66-0, and AB 383, a firearms cleanup bill, was concurred in 66-0. The session ended with immediate transmittals of the major measures to the Senate or Governor as applicable.

Transcript Highlights:

• I know you oversee CARB to some extent.
• And just following up on that a little bit, do you think that CARB has gone too far in the sense that
• The question about ZEVs is really a CARB question, but it also, you know, the Environmental Protection
• We had CARB and we did a lot of things about all of the ZEV program and stuff last year.
• You know, the Air Resources Board, of course, is a board within our agency family, so CARB questions

Summary: The Assembly Budget Subcommittee on Climate Crisis, Resources, Energy, and Transportation heard an informational hearing with Secretary Garcia and CalEPA-related departments on the administration’s budget proposals and related environmental programs. Secretary Garcia highlighted CalEPA’s work on methane reduction, community air protection, water infrastructure, Exide cleanup, safer pesticide alternatives, Prop 4 implementation, and Bay-Delta water quality, while emphasizing the impact of federal rollbacks and the need for flexible state response. Members raised broader policy concerns about the polluter-pays principle, special fund vacancies, and whether the state is maintaining sufficient staffing and enforcement capacity, especially after recent fee increases. A major portion of the hearing focused on landfill support, response, and enforcement, particularly subsurface elevated temperature events at Chiquita Canyon and El Sobrante. CalEPA requested $5.1 million and 12 positions to improve monitoring, technical response, coordination, and enforcement across CalRecycle, CARB, DTSC, the Water Board, and OEHHA. Assembly Member Schiavo described severe community impacts from Chiquita Canyon and pressed for stronger state action, more transparency, and accountability from landfill operators; Assembly Member Rogers emphasized that accountability must mean forcing operators to take preventive measures and bear the costs. Agency staff said the proposal would help augment current response efforts, support local enforcement agencies, and improve early detection, while acknowledging that the causes of set events are not fully understood and may involve factors such as lithium-ion batteries, oxygen intrusion, and gas extraction practices. The committee then heard an update on the Safe and Affordable Drinking Water program and the effects of the new cap-and-invest structure. State Water Board Chair Joaquin Esquivel reported that the program has reduced the number of Californians without safe drinking water from 1.6 million to about 600,000 since 2019, while also bringing 320 systems back into compliance and distributing $1.8 billion in drinking water grants. The Legislative Analyst’s Office explained that under SB 840, SAFER is now in a lower funding tier, which could reduce annual proceeds from the prior $130 million level to a projected $92 million in 2026-27 and delay funding until later in the year. Members expressed concern that this deprioritizes rural drinking water needs, while the board said it would continue using SAFER’s flexible funds for emergency water, technical assistance, and construction, and would keep pushing consolidations and other long-term solutions for the remaining failing systems.

Transcript Highlights:

• Those ships are required to burn a cleaner fuel as a result of the requirement from EPA and from CARB
• and directs CARB to provide up to $50 million in competitive grants. ...and directs CARB to provide
• It also gives CARB the tools to prioritize projects that deliver broader community benefits.
• It also gives CARB the tools to prioritize projects that deliver broader community benefits.
• The CARB is to do the research necessary to determine which is the most effective, which is the most

Summary: The committee first heard SB 14, which would direct state agencies to reduce single-use plastics and improve waste diversion at state facilities by updating integrated waste management plans, increasing reusable foodware use, reducing paper purchasing, and requiring better employee education and recycling/composting practices. Supporters from the California Compost Coalition, Republic Services, Waste Management, and others said the bill would help build composting and recycling markets and let the state lead by example. Several groups that had opposed earlier versions said they were now neutral after amendments, including the removal of a 90% requirement. The bill was moved out on a due pass as amended recommendation. The committee then took up SB 326 on wildfire mitigation. The bill would create a framework for Cal Fire to evaluate the risk-reduction benefits of fuels management and landscape resilience investments, and it would accelerate implementation of Zone Zero defensible-space standards, including grants for local enforcement and broader application to rental and sale properties and post-fire reconstruction. Support came from Stanford climate researcher Michael Mastrandrea and several local government, insurance, and climate groups. With no opposition, the bill passed as amended to Appropriations. Next, SB 34 on port emissions and the South Coast Air Quality Management District drew extensive testimony. The author said the bill was narrowed by committee amendments to preserve the ports’ ability to reduce emissions while preventing cargo throughput caps and addressing concerns about automation, local control, and the timeline for port clean-air planning. Supporters included ILWU, business groups, and port-related stakeholders, while the South Coast AQMD and many environmental and community organizations opposed it, arguing it would weaken public-health protections and set a bad precedent. After lengthy debate, the committee approved the bill on a due pass as amended vote to Transportation, with some members voting no and others abstaining. The committee also heard SB 279, which would expand composting options for farmers and small community composters by allowing limited on-farm composting after large biomass events and increasing the amount small operations may process and sell. Supporters said the bill would help address agricultural waste, expand composting capacity, and reduce landfill disposal. Commercial composting representatives opposed it, warning that the bill could create regulatory inequities, strand recent investments in permitted facilities, and allow too much unregulated food waste. Despite those concerns, the bill passed to Appropriations on a due pass vote. The transcript also briefly referenced SB 613 on upstream methane emissions data, described as having no opposition and intended to improve tracking of imported oil and gas emissions.

Transcript Highlights:

• some of the challenges of the execution, the implementation, the conflicts between the regions and CARB
• CTC does not have the same technical expertise that CARB has and isn't bound by the scoping plan to the
• CTC does not have the same technical expertise that CARB has and isn't bound by the scoping plan to the
• already has many regulations and funding programs that encourage the transition to zero-emission, and CARB
• So in the context here, COGs are given a target by CARB to reduce their GHG.

Committee: Senate Transportation

Summary: The Senate Transportation Committee heard several transportation, climate, and vehicle-related bills. SB 1087 by Senator Cabaldon proposed modernizing SB 375 regional planning by moving plans from a four-year to an eight-year cycle, clarifying agency roles, aligning funding programs with regional climate plans, and reducing duplicative process costs. Supporters from MPOs and environmental groups said it would improve efficiency and implementation; opponents warned it could weaken climate accountability, expand vehicle miles traveled concerns, and reduce public participation. SB 1315, also by Senator Cabaldon, would require manufacturers to report software updates for semi-autonomous vehicle features to the Insurance Commissioner to build data for future policy; it drew no opposition. SB 1275 by Senator McNerney would replace the state sales tax on motor vehicles with a higher vehicle license fee to preserve a federal tax deduction and reduce money sent to Washington, with LAO providing technical testimony on the tax structure. The committee also heard SB 1287 by Senator Hurtado, which would create a tax credit to spur private investment in short-line railroad infrastructure. Supporters said it would improve freight efficiency, safety, emissions, and rural economic development; there was no opposition. SB 1064 by Senator Daly would reduce the frequency of clean truck checks for very low-mileage heavy-duty and off-road diesel vehicles, with supporters saying it would save time and costs and opponents asking for CARB analysis before taking a position. SB 1375 by Senator Cortese would streamline environmental review for certain transit and rail projects that have already undergone extensive prior review, while preserving other environmental laws; it received broad support and no opposition. SB 1392, also by Senator Cortese, would expand the smog exemption for certain collector vehicles used mainly for shows, parades, and historic display; classic car and lowrider supporters backed it, while air quality groups opposed it as likely to increase emissions and weaken smog-check accountability. After testimony, the committee took up motions and later completed roll calls once a quorum was established. SB 1213 was placed on the consent calendar and approved. SB 1087, SB 1315, SB 1275, SB 1287, SB 1423, SB 1064, SB 1375, and SB 1392 were all reported out of committee, generally to the Senate Appropriations Committee, with SB 1392 receiving the closest vote and some opposition from members. The committee also briefly discussed another bill on active transportation funding tied to SB 79 areas, and that measure was approved after amendments and a roll call vote.

Transcript Highlights:

• challenges of execution, implementation, and the conversation. ...the conflicts between the regions and CARB
• CTC does not have the same technical expertise that CARB has and isn't bound by the scoping plan to the
• already has many regulations and funding programs that encourage the transition to zero-emission, and CARB
• going from four-year to eight-year cycles and ensuring greater transparency with the methodology that CARB
• So in the context here, COGs are given a target by CARB to reduce their GHG.

Committee: Senate Transportation

Summary: The Senate Transportation Committee heard a series of bills focused on transportation planning, emissions, freight, and vehicle regulation. SB 1087 by Senator Cabaldon would modernize SB 375 regional climate and transportation planning by moving regional plan updates from every four years to every eight years, clarifying roles for CARB and the California Transportation Commission, and better aligning funding and guidelines. Supporters, including SCAG, MTC/ABAG, MPOs, local governments, and some environmental groups, said the bill would reduce duplicative planning costs and improve implementation. Opponents, including Coalition for Clean Air and the California Building Industry Association, warned it could weaken climate accountability, expand VMT-related burdens, and create housing and CEQA concerns. The bill passed 9-1 and was sent to Appropriations. The committee also heard SB 1315, which would require manufacturers to report software updates for semi-autonomous vehicle features to the Insurance Commissioner so the state can build data for future policy. There was no opposition testimony, and the bill passed 12-0. SB 1275 by Senator McNerney would replace the general fund portion of the state sales tax on motor vehicles with a one-time vehicle license fee so buyers could potentially claim a federal tax deduction; the LAO testified as a technical witness, and the bill passed 9-1. SB 1287 by Senator Hurtado would create a tax credit to spur private investment in short-line railroad infrastructure; supporters said it would improve safety, freight efficiency, and emissions, and it passed 12-0. The committee also approved SB 1423 by Senator Stern, which would streamline review for certain transit and rail projects that have already undergone extensive environmental review; it passed 8-1. SB 1064 by Senator Daly would reduce the frequency of clean truck checks for very low-mileage heavy-duty and off-road vehicles, and passed 12-0 after supporters said it would reduce unnecessary trips and costs while opponents awaited CARB analysis. SB 1375 by Senator Cortese would similarly reduce duplicative environmental review for qualifying major transit and rail projects, and passed 12-0. SB 1392, also by Senator Cortese, would expand the smog-check exemption for certain historic collector vehicles used mainly for shows, parades, and charitable events; classic car and lowrider advocates supported it, while air quality groups opposed it as increasing emissions. It passed 10-2. The committee also adopted the consent calendar, including SB 1213, by a 12-0 vote.

Transcript Highlights:

• some of the challenges of the execution, the implementation, the conflicts between the regions and CARB
• CTC does not have the same technical expertise that CARB has and isn't bound by the scoping plan to the
• already has many regulations and funding programs that encourage the transition to zero-emission, and CARB
• already tracks how those and funding programs that encourage the transition to zero-emission, and CARB
• So in the context here, COGs are given a target by CARB to reduce their GHG.

Committee: Senate Transportation

Transcript Highlights:

• Although I have never doubted the intention of the program or the dedicated staff at CARB, as well as
• By requiring the chair of CARB and the executive directors or air pollution control officers of relevant
• The bill also makes updates to the monitoring plans and, most importantly, requires CARB and air districts
• districts, candidly, from having more flexibility. ...locking up limited resources and preventing CARB
• And when we talked about ZEVs and clean vehicles, not funding one of the most successful programs CARB

Committee: House Natural Resources

Summary: The Assembly Natural Resources Committee heard three major bills focused on California’s energy transition, fuel supply, and climate investments. SB 237 by Sen. Grayson proposed short-term measures to stabilize gasoline supply and prices, including validating the Kern County EIR for new oil and gas permitting with setbacks, a well cap, offshore/pipeline provisions, possible suspension of summer fuel blend requirements, and a study of regional fuel blends. Supporters argued it would help keep refineries operating, protect jobs, and reduce price spikes during a “mid-transition” away from fossil fuels, while opponents said it was a fossil-fuel giveaway that would worsen pollution in Kern County and fail to address refinery-community protections or broader transition planning. The committee approved SB 237 on a due-pass vote, with some members voting no or not voting. The committee also heard SB 352 by Sen. Reyes, which would strengthen implementation of AB 617 by codifying the Environmental Justice Bureau in the Attorney General’s office, requiring at least five years of monitoring in AB 617 communities, and mandating annual reporting by CARB and air districts on program implementation. Supporters said the bill would add accountability and ensure the new continuous funding for AB 617 leads to real emissions reductions, while opponents criticized the process and argued the bill was an end run around separate negotiations and imposed rigid requirements on limited resources. The bill advanced on a due-pass vote after extensive testimony from environmental justice groups, business organizations, and local air districts. Finally, SB 840 by Sen. Limon was presented as the cap-and-invest package, maintaining California’s climate leadership while directing revenues to state and community priorities. Supporters highlighted stronger offset integrity, more frequent protocol updates, continued funding for programs such as AB 617, transit, housing, and other climate investments, and broad labor and local government support. Some witnesses and members noted the bill did not include dedicated funding for zero-emission vehicles or climate-smart agriculture and urged future work on those priorities. The committee passed SB 840 on a due-pass vote as well, and all three bills were later confirmed out of committee on the floor call.