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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-11</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-04-06</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Papan</ns0:AuthorText>
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<ns0:Name>Papan</ns0:Name>
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<ns0:Title> An act to add Article 7 (commencing with Section 43875) to Chapter 4 of Part 5 of Division 26 of the Health and Safety Code, relating to air resources. </ns0:Title>
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<ns0:Subject>Decarbonized gaseous fuels.</ns0:Subject>
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<html:p>Existing law regulates the emission of air contaminants, including the oxides of nitrogen, into the atmosphere. Existing law generally vests regulatory jurisdiction over stationary sources of air pollution to the air pollution control districts and air quality management districts and regulatory jurisdiction over mobile sources of air pollution to the State Air Resources Board.</html:p>
<html:p>This bill would require, on or before December 31, 2029, the state board to conduct an assessment of the amount of decarbonized gaseous fuels that will be needed to decarbonize hard-to-electrify sectors and maintain reliability in the electricity
sector and to post the assessment on its internet website. The bill would require the assessment to include an assessment of the need for decarbonized gaseous fuels in each hard-to-electrify sector, as defined. The bill would require the state board, in assessing the policies and incentives, to consider, among other things, how to incentivize the increased production and use of decarbonized gas instate and how to maximize the benefits of decarbonized gas production and use, as provided.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Article 7 (commencing with Section 43875) is added to Chapter 4 of Part 5 of Division 26 of the
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, to read:
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<ns0:Num>7.</ns0:Num>
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<ns0:LawHeadingText>Decarbonized Gaseous Fuels</ns0:LawHeadingText>
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<ns0:Num>43875.</ns0:Num>
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<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
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To meet California’s climate targets, all sectors of the economy will need to decarbonize.
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<html:p>
(b)
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While California has made significant progress increasing the use of renewable electricity and low-carbon transportation fuels, little progress has been made to decarbonize hard-to-electrify sectors of the economy.
</html:p>
<html:p>
(c)
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California has increased the procurement of renewable electricity substantially since the first renewables portfolio standard was enacted, but has only reduced natural gas used for electricity generation
by 3 percent and has seen a rapid increase in diesel backup generators for electricity reliability.
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<html:p>
(d)
<html:span class="EnSpace"/>
In California, hard-to-electrify sectors and fossil fuels used for electricity reliability together contribute more than one-third of California’s total greenhouse gas emissions.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Decarbonizing hard-to-electrify sectors and the electricity sector itself will require quickly increasing the production and use of decarbonized gas, sustainable aviation and
shipping fuels, and other decarbonized fuels.
</html:p>
<html:p>
(f)
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The 2022 climate change scoping plan calls for significant increases in the production and use of decarbonized hydrogen and bioenergy to decarbonize hard-to-electrify end uses and provide carbon negative emissions needed to reach the state’s goal of carbon neutrality by midcentury.
</html:p>
<html:p>
(g)
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It is the intent of the Legislature to develop additional policies and incentives to accelerate the production and use of decarbonized gas.
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(h)
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Increasing the production and use of low-carbon gas will protect public health by reducing air and water pollution from fossil fuels, especially the
particulate matter and toxic air contaminant emissions from diesel.
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<html:p>
(i)
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Increasing the production of low-carbon fuels generated from organic waste may also help to mitigate wildfires, meet the landfill diversion requirements of Section 39730.6, and meet the methane and black carbon reduction requirements of Section 39730.5.
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<ns0:Num>43875.1.</ns0:Num>
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<html:p>
(a)
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On or before December 31, 2029, the state board shall conduct an assessment of the amount of decarbonized gaseous fuels that will be needed to decarbonize hard-to-electrify sectors and maintain reliability in the electricity sector, and shall post that assessment on its internet website. That assessment shall include all of the following:
</html:p>
<html:p>
(1)
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An assessment of the need for, and economic viability of, decarbonized gaseous fuels in each hard-to-electrify sector.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An assessment of the need for, and cost associated with, decarbonized gaseous fuels for electricity reliability and resilience.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An assessment of policies and incentives to accelerate the production and use of decarbonized gaseous fuels.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
An assessment of opportunities for, and economic viability of, using agricultural and forest residues to help decarbonize hard-to-electrify sectors.
</html:p>
<html:p>
(b)
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In
assessing the policies and incentives described in subdivision (a), the state board shall consider all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Whether the policies are consistent with the carbon reductions in the 2022 and 2027 scoping plans identified as necessary to decarbonize hard-to-electrify end uses and to maintain electrical reliability.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Recognize the compliance obligations of entities that are regulated pursuant to the Cap-and-Invest Program.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
How to incentivize the increased production and use of decarbonized gas instate.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
How to maximize the benefits of decarbonized gas production and use, including, but not limited to, opportunities to mitigate wildfire, reduce pile burning of forest and agricultural residues, reduce landfill waste, use renewable
energy that may otherwise be curtailed, and create jobs and economic development in the state.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Policies to ensure that decarbonized gases are displacing fossil fuel use.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Consider the cost implications and economic impacts of using alternatives to fossil gas for both impacted businesses and end-use consumers.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes of this section, “hard-to-electrify sectors” means those sectors that cannot technically, economically, or practically convert to electricity due to their need for high heat, high energy density, or other operational factors. Those sectors include, but are not limited to, cement, glass, and steel manufacturing, aviation and maritime fuel industries, and food processing industries.
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<html:p>
(2)
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“Hard-to-electrify sectors” does not include sectors that are regulated pursuant to the Low-Carbon Fuel Standard regulations (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the
California Code of Regulations).
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