AB 40: California Environmental Quality Act: environmental impact reports: coal handling, storage, and export.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA provides that when an EIR has been prepared for a project, no subsequent or supplemental EIR shall be required by a lead agency or responsible agency, unless specified events occur.

This bill would require a lead agency, before issuing the initial discretionary approval for a large-volume bulk coal facility, defined as a facility with a design capacity exceeding 5,000,000 short tons per year of coal handling, storage, or export to prepare or cause to be prepared an EIR. The bill would prohibit a lead agency, air pollution control district, or air quality management district from relying on an existing EIR to issue a discretionary approval for, or to, a large-volume bulk coal facility, and would require a subsequent or new EIR to be prepared, if any of a list of specified conditions are met, including that there is an increase in design capacity of a project that did not previously meet the definition of a large-volume bulk coal facility, as provided; there is a change in the type of coal handled, stored, or exported, or the EIR did not explicitly address the type of coal handled, stored, or exported; or there is a significant increase in the quantity of coal handled, stored, or exported, or the EIR did not explicitly disclose the quantity of coal to be handled, stored, or exported. The bill would require an EIR or subsequent EIR prepared pursuant to these provisions to, among other things, evaluate the large-volume bulk coal facility’s potential to generate PM2.5 and PM10 fugitive dust emissions during construction and operations, and to require mitigation measures, as provided. The bill would apply these provisions to a discretionary approval that is pending or made after June 4, 2026, as specified.

Because the bill would create new duties for a lead agency, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Sponsors

Sponsors by party (alphabetical): Democratic 6

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 30, 2026Chaptered by Secretary of State - Chapter 864, Statutes of 2026.
2. September 30, 2026Approved by the Governor.
3. September 8, 2026Enrolled and presented to the Governor at 3:30 p.m.
4. August 28, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 50. Noes 17. Page 6784.).
5. August 27, 2026From committee: That the Senate amendments be concurred in. (Ayes 10. Noes 4.) (August 27).
6. August 26, 2026Joint Rule 62(a), file notice suspended. (Page 6606.)
7. August 26, 2026Re-referred to Com. on NAT. RES. pursuant to Assembly Rule 77.2.
8. August 25, 2026In Assembly. Concurrence in Senate amendments pending.
9. August 25, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 30. Noes 9.).
10. August 24, 2026Read second time. Ordered to third reading.
11. August 21, 2026Read third time and amended. Ordered to second reading.
12. August 18, 2026Read second time. Ordered to third reading.