SB 840: Greenhouse gases: Greenhouse Gas Reduction Fund: studies.

Official summary

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

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 in furtherance of achieving the statewide greenhouse gas emissions limit, as defined. The act authorizes the state board to revise regulations or adopt additional regulations to further the act. 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 the state board, in regulations implementing the market-based compliance mechanism to, among other things, establish limits on the use of offset credits as a means for a covered entity to meet its compliance obligations. 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 and continuously appropriates a portion of the moneys in the fund for various purposes.

This bill would state the intent of the Legislature to direct specific percentages of the revenues deposited into the Greenhouse Gas Reduction Fund to individual funds dedicated to funding clean transportation, housing and community investment, clean air and water, wildfire prevention and resilience, agriculture, clean energy, and climate-focused innovation. The bill would make the continuous appropriations from the fund inoperative on July 1, 2026. The bill would, beginning with the 2026–27 fiscal year, allocate moneys in the fund in a specified priority and would continuously appropriate a certain amount of moneys in the fund for certain purposes.

This bill would require the state board, no later than December 31, 2026, to conduct a study and report to the Legislature evaluating and making recommendations on the use of offsets. The bill would require the state board, no later than January 1, 2029, to update all existing compliance offset protocols to reflect the best available science. The bill would require the state board, no later than January 1, 2034, and every 5 years thereafter, to evaluate all compliance offset protocols and to consider whether updates are necessary to ensure the protocols reflect the best available science.

This bill would declare that it is to take effect immediately as an urgency statute.

Sponsors

Sponsors by party (alphabetical): Democratic 11

“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 19, 2025Chaptered by Secretary of State. Chapter 121, Statutes of 2025.
2. September 19, 2025Approved by the Governor.
3. September 15, 2025Enrolled and presented to the Governor at 2 p.m.
4. September 13, 2025Assembly amendments concurred in. (Ayes 28. Noes 6. Page 3054.) Ordered to engrossing and enrolling.
5. September 13, 2025Urgency clause adopted.
6. September 13, 2025In Senate. Concurrence in Assembly amendments pending.
7. September 13, 2025Read third time. Urgency clause adopted. Passed. (Ayes 59. Noes 15. Page 3486.) Ordered to the Senate.
8. September 12, 2025Assembly Rule 63 suspended. (Ayes 57. Noes 20. Page 3441.)
9. September 12, 2025From committee: Do pass. (Ayes 10. Noes 2.) (September 12).
10. September 10, 2025Joint Rule 61 and 62(a) suspended. (Ayes 31. Noes 9. Page 2801.)
11. September 10, 2025Joint Rule 62(a) suspended.
12. September 10, 2025Re-referred to Com. on NAT. RES. pursuant to Assembly Rule 77.2.