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.

This bill would require, on or before December 31, 2027, 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. The bill would require the assessment to include an assessment of the need for decarbonized gaseous fuels in each hard-to-electrify sector. The bill would require the state board to ensure, among other things, that policies and incentives to decarbonize hard-to-electrify sectors are performance-based and technology neutral, and that entities that are regulated under the Cap-and-Invest Program shall have a lesser compliance obligation commensurate with purchases of decarbonized gas. The bill would also require the state board, in recommending 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.