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<ns0:ActionText>INTRODUCED</ns0:ActionText>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-06-30</ns0:ActionDate>
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<ns0:ActionText>PASSED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-09-12</ns0:ActionDate>
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<ns0:ActionText>PASSED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-09-13</ns0:ActionDate>
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<ns0:ActionText>ENROLLED</ns0:ActionText>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Stern</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthor: Assembly Member Zbur)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Stern</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Zbur</ns0:Name>
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<ns0:Title>An act to amend Section 38592 of the Health and Safety Code, relating to greenhouse gases. </ns0:Title>
<ns0:RelatingClause>greenhouse gases</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Methane emissions: petroleum and natural gas producing low methane emissions.</ns0:Subject>
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<html:p>The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency responsible for monitoring and regulating sources of emissions of greenhouse gases that cause global warming in order to reduce emissions of greenhouse gases. The act requires all state agencies to consider and implement strategies to reduce their greenhouse gas emissions.</html:p>
<html:p>This bill would additionally require state agencies to prioritize strategies to reduce methane emissions, including emissions from imported petroleum and natural gas, where feasible and cost effective. The bill would require the state board to encourage natural gas procurement on behalf of the state to shift to certified natural gas producing low methane emissions. The bill would also authorize the state board, the Public Utilities Commission, and other relevant
agencies to apply approved protocols that measure, monitor, report, and verify methane emissions to existing programs to reduce methane emissions, including emissions from imported petroleum and natural gas procured by utilities and other large gas users, as provided. The bill would also authorize the state board, the Public Utilities Commission, and other relevant agencies to use all relevant sources and standards, including, but not limited to, emissions data, models, or protocols from existing or new regulations.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
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<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:BudgetBill>NO</ns0:BudgetBill>
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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>
<ns0:Content>
<html:p>
(a)
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The Legislature finds and declares all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
According to the United States Environmental Protection Agency (EPA), methane is a potent short-lived climate pollutant with an estimated global warming impact of 27 to 30 times that of carbon dioxide over 100 years and 81 to 83 times that of carbon dioxide over 20 years.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The State Air Resources Board’s Short-Lived Climate Pollutant (SLCP) Reduction Strategy, developed pursuant to Section 39730 of the Health and Safety Code, states that “[the] science unequivocally underscores the need to immediately reduce emissions of Short-Lived Climate Pollutants” and highlights a broad array of
significant climate, health, and economic benefits associated with quick action to reduce SLCP emissions from all addressable sources.
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<html:p>
(3)
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The SLCP Reduction Strategy and subsequent state actions have implemented strategies to reduce methane from a wide array of sources in California, including the oil and gas sector. However, the strategy notes that about 90 percent of the state’s natural gas use is supplied by out-of-state sources, and notes that more may need to be done to address emissions from these sources.
</html:p>
<html:p>
(4)
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In “Out-of-State Greenhouse Gas Emissions from Loss, Release, and Flaring of Natural Gas Imported to California: 2018-22,” the State Air Resources Board estimates that fugitive methane emissions from out-of-state sources of natural gas supplying California in 2020 were the equivalent of 9,100,000 metric tons of carbon dioxide. The report recognizes that the methods
likely underestimate methane emissions associated with California’s gas supply, but even based on this estimate, methane from out-of-state natural gas production would represent the second largest source of methane emissions in California, and a greater source of methane than emissions from landfills or oil and gas production, processing, and distribution in California.
</html:p>
<html:p>
(5)
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Existing climate change policies in California incentivize greenhouse gas emissions reductions from imported electricity and transportation fuels; however, no similar policy exists for natural gas, which is almost entirely imported. Emissions from this source are readily addressable using best management practices and in line with California regulations for oil and gas production.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Incentivizing greenhouse gas emissions reductions from natural gas supplies to California will help to expand the use of best
practices and reduce methane emissions associated with not only California’s energy use, but other states, as well.
</html:p>
<html:p>
(7)
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California’s scoping plan and carbon neutrality goals set forth in Section 38562.2 of the Health and Safety Code require a rapid transition away from fossil fuels, including fossil-based natural gas, to clean energy. Near-term efforts to reduce methane emissions from natural gas supplies will support California’s climate change priorities and its transition away from fossil-based energy.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The EPA finalized regulations in 2024 to reduce emissions from the oil and gas sector through the creation of the Methane Emissions Reduction Program within the Clean Air Act, expanding emissions reporting requirements for petroleum and natural gas systems under Subpart W of the EPA’s Greenhouse Gas Reporting Program (40 CFR Sec. 98.230 et seq.).
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<html:p>
(b)
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It is the intent of the Legislature that California take steps to reduce methane emissions associated with natural gas imported and used in the state in a manner that supports efforts to reduce the use and reliance on fossil fuels and the state’s transition to clean energy.
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<html:p>
(c)
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It is the intent of the Legislature that state agencies follow a loading order for the use of natural gas in California that prioritizes efficiency and demand reduction measures pursuant to subdivision (b) of Section 454.56 of the Public Utilities Code, followed in priority by the use of renewable resources, including measures pursuant to Section 651 of the Public Utilities Code, followed in priority by the use of clean fossil resources certified to have low methane emissions via approved measuring, monitoring, reporting,
and verification protocols, referred to as the MMRV framework.
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</ns0:BillSection>
<ns0:BillSection id="id_1379EA00-9629-4E17-9145-A10D555C2B0D">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 38592 of the
<ns0:DocName>Health and Safety Code</ns0:DocName>
is amended to read:
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<ns0:Num>38592.</ns0:Num>
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<html:p>
(a)
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For purposes of this section, “measure, monitor, report, and verify” or “MMRV” means a framework used for the systematic measuring of emissions, including the documentation and verification of the accuracy of the reported data.
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<html:p>
(b)
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All state agencies shall consider
and implement strategies to reduce their greenhouse gas emissions.
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<html:p>
(c)
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State agencies shall prioritize strategies to reduce methane emissions, including emissions from imported petroleum and natural gas, where feasible and cost effective.
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<html:p>
(d)
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The state board, the Public Utilities Commission, and other
relevant agencies may apply approved MMRV protocols to existing programs to reduce methane emissions, including emissions from imported petroleum and natural gas procured by utilities and other large gas users, in accordance with Sections 38500 to 38599, inclusive. The state board, the Public Utilities Commission, and other relevant agencies may use all relevant sources and standards, including, but not limited to, emissions data, models, or protocols from existing or new regulations.
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<html:p>
(e)
<html:span class="EnSpace"/>
The state board shall encourage natural gas procurement on behalf of the state to shift to certified natural gas producing low methane emissions,
as verified by MMRV, where feasible, cost effective, and in the best interests of ratepayers as determined by the Public Utilities Commission pursuant to Section 740.8 of the Public Utilities Code and consistent with Section 451 of the Public Utilities Code.
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<html:p>
(f)
<html:span class="EnSpace"/>
This section shall not be construed to require any new or additional petroleum and natural gas utility procurement or to promote the expanded use of petroleum and natural gas from fossil resources and is not intended to interfere with state efforts to reduce the use of petroleum and natural gas or increase the production and use of renewable gas.
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<html:p>
(g)
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This section does not relieve any person, entity, or public agency of compliance with other applicable federal, state, or local laws or regulations, including state air and water quality requirements, and other requirements for protecting public health or the environment.
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