AB193 - Public resources: Greenhouse Gas Reduction Fund: programs.

Amended IN Senate August 28, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 193 Introduced by Assembly Member Gabriel Committee on Budget (Assembly Members Gabriel (Chair), Addis, Ahrens, Alvarez, Bennett, Bonta, Caloza, Connolly, Fong, Haney, Hart, Jackson, Lee, Ortega, Patel, Petrie-Norris, Quirk-Silva, Ramos, Rogers, Schiavo, Schultz, Sharp-Collins, Solache, Stefani, Ward, and Wilson) January 08, 2025 An act relating to the Budget Act of 2025. An act to amend Section 16428.8 of the Government Code, to amend Section 39719.3 of, and to amend, repeal, and add Sections 39710 and 39719.4 of, the Health and Safety Code, to amend Sections 75200.1, 75220, 75230, and 75231 of the Public Resources Code, and to amend Sections 1615 and 1640 of the Public Utilities Code, relating to public resources, and making an appropriation therefor, to take effect immediately, bill related to the budget. LEGISLATIVE COUNSEL'S DIGEST AB 193, as amended, Committee on Budget. Budget Act of 2025. Public resources: Greenhouse Gas Reduction Fund: programs. 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, as provided. 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 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. Existing law allocates moneys in the fund in a specified priority and continuously appropriates a certain amount of moneys in the fund for certain purposes. This bill would require interest income earned on those moneys to be deposited into the fund. By depositing additional moneys into a continuously appropriated fund, the bill would make an appropriation. Existing law requires that moneys in the Greenhouse Gas Reduction Fund be allocated based on 4 priority levels with the first priority level being certain amounts, including amounts to replace revenues generated by the State Responsibility Area fire prevention fee, the 2nd priority level being certain amounts, including $1,000,000,000 that is continuously appropriated to the High-Speed Rail Authority for certain purposes, the 3rd priority level being certain amounts, including $800,000,000 that is continuously appropriated to the Strategic Growth Council for the Affordable Housing and Sustainable Communities Program and $200,000,000 that is continuously appropriated to the Department of Forestry and Fire Protection with 82.5% of that amount for health forest and fire prevention programs and projects and 17.5% of that amount for the completion of prescribed fire and other fuel reduction projects, as provided, and the 4th priority level being any amount not needed to fully fund the first 3 priority levels being available for appropriation by the Legislature. This bill would include in the first priority level for allocation from the fund any state operation costs, as proposed by the Department of Finance, appropriated in the annual Budget Act or other statute and certain administrative costs. The bill would authorize the use of moneys continuously appropriated to the High-Speed Rail Authority under the 2nd priority level for state operations costs for the High-Speed Rail Authority. The bill would instead specify the allocations of $800,000,000 continuously appropriated for the Affordable Housing and Sustainable Communities Program, with $560,000,000 continuously appropriated to the Housing Development and Finance Committee for affordable rental or owner-occupied housing projects, thereby making an appropriation, and $240,000,000 continuously appropriated to the Strategic Growth Council for, among other things, projects or programs designed to reduce greenhouse gas emissions and other criteria air pollutants by reducing automobile trips and vehicle miles traveled, as specified. The bill would repeal the 82.5% and 17.5% allocation requirements for the amount continuously appropriated to the Department of Forestry and Fire Protection for the healthy forest and fire prevention programs and projects and the completion of the prescribed fire and other fuel reduction programs, respectively. Existing law establishes the Transit and Intercity Rail Capital Program to fund transformative capital improvements that will modernize California’s intercity, commuter, and urban rail systems and bus and ferry transit systems to achieve certain policy objectives. Existing law creates the Low Carbon Transit Operations Program to provide operating and capital assistance for transit agencies to reduce emissions of greenhouse gases and improve mobility. This bill would authorize the Department of Transportation to provide administrative support for those 2 programs. This bill would make various cross-reference and other nonsubstantive changes. Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires the PUC to require those electrical corporations with 250,000 or more customer accounts in the state, and those gas corporations with 400,000 or more customer accounts in the state, to fund as part of their energy efficiency portfolios the joint School Energy Efficiency Stimulus Program, which consists of the School Reopening Ventilation and Energy Efficiency Verification and Repair Program (SRVEVR Program) and the School Noncompliant Plumbing Fixture and Appliance Program (SNPFA Program). Existing law requires that the School Energy Efficiency Stimulus Program be a joint program among all the participating utilities, be consistent across the utility territories, and be designed, administered, and implemented by the State Energy Resources Conservation and Development Commission (Energy Commission) as the program administrator. The Energy Commission administratively established the School Energy Efficiency Stimulus Program Fund and existing law continuously appropriates moneys in the fund to the Energy Commission for purposes of the program. Existing law requires all allocated funds to be spent or returned to each electrical corporation or gas corporation by December 1, 2026. This bill would extend the operation of the School Energy Efficiency Stimulus Program to January 1, 2031. The bill would instead require all non-committed funds to be spent or returned to each utility by December 1, 2026. The bill would require any funds committed as of August 31, 2026, to be encumbered by December 1, 2028, liquidated by December 1, 2029, and returned to each utility by January 30, 2030. By extending the term of a continuous appropriation, the bill would make an appropriation. This bill would incorporate additional changes to Section 39719.3 of the Health and Safety Code proposed by AB 1608 to be operative only if this bill and AB 1608 are enacted and this bill is enacted last. This bill would incorporate additional changes to Section 75230 of the Public Resources Code proposed by SB 741 to be operative only if this bill and SB 741 are enacted and this bill is enacted last. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill. This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025. Digest Key Vote: MAJORITY Appropriation: NO YES Fiscal Committee: NO YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 16428.8 of the Government Code is amended to read: 16428.8. (a) The Greenhouse Gas Reduction Fund, hereafter referred to in this article as the fund, is hereby created as a special fund in the State Treasury. (b) Except for fines and penalties, all moneys collected by the State Air Resources Board from the auction or sale of allowances, pursuant to a market-based compliance mechanism established pursuant to Division 25.5 (commencing with Section 38500) of the Health and Safety Code and specified in Sections 95800 to 96022, inclusive, of Title 17 of the California Code of Regulations, and any interest income earned from those moneys shall be deposited in the fund and available for appropriation by the Legislature. (c) All moneys deposited in the fund shall be appropriated and shall be separately identified in the annual Budget Act. No moneys from the General Fund or any other fund shall be deposited in the fund. (d) Notwithstanding any other law, the Controller may use the moneys in the fund for cash flow loans to the General Fund as provided in Sections 16310 and 16381. (e) Any technical amendments made by the State Air Resources Board to the regulations established under Sections 95800 to 96022, inclusive, of Title 17 of the California Code of Regulations to conform that regulation to this article shall be exempt from the provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3) and from the review and approval of the Office of Administrative Law. SEC. 2. Section 39710 of the Health and Safety Code is amended to read: 39710. (a) For purposes of this chapter, “fund” means the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code. (b) This section shall become inoperative on July 1, 2027, and, as of January 1, 2028, is repealed. SEC. 3. Section 39710 is added to the Health and Safety Code, to read: 39710. (a) For purposes of this chapter, the following definitions apply: (1) “Fund” means the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code. (2) “Moneys in the fund” include all auction proceeds, interest income, and any other moneys deposited into the fund. It also includes any entering fund balance for the fund. (b) This section shall become operative on July 1, 2027. SEC. 4. Section 39719.3 of the Health and Safety Code is amended to read: 39719.3. (a) For purposes of this section, the following definitions apply: (1) “Fully funded” means the High-Speed Rail Authority has secured funding to complete the Merced to Bakersfield segment within the timelines identified in the most recent business plan prepared pursuant to Section 185033 of the Public Utilities Code or project update report prepared pursuant to Section 185033.5 of the Public Utilities Code and the High-Speed Rail Authority Office of the Inspector General has confirmed that the High-Speed Rail Authority has secured that funding. (2) “Merced to Bakersfield segment” means a 171-mile electrified dual-track segment that is usable for high-speed rail service in the central valley from Merced to Bakersfield, with a new combined station in downtown Merced, and connections to the Amtrak San Joaquins and the Altamont Corridor Express. (b) Notwithstanding paragraph (2) of subdivision (b) of Section 39719, 39719 or paragraph (1) of subdivision (b) of Section 39719.4, beginning with the 2022–23 fiscal year, it is the intent of the Legislature that the High-Speed Rail Authority prioritize use of the funds provided pursuant to Section 39719 or Section 39719.4 to complete the Merced to Bakersfield segment. (c) Beginning with the 2022–23 fiscal year, the High-Speed Rail Authority shall not enter into new funding commitments with funds provided pursuant to paragraph (2) of subdivision (b) of Section 39719 or paragraph (1) of subdivision (b) of Section 39719.4 for activities outside the Merced to Bakersfield segment, except for the following purposes: (1) Completion of environmental clearance activities and planning activities required by federal grant agreements or other existing agreements. (2) State operations activities related to construction management and project development and enterprisewide capital expenditures. (3) (A) Additional activities, not to cumulatively exceed five hundred million dollars ($500,000,000), that maximize the efficiency of delivering the project, excluding paragraphs (1) and (2). (B) The High-Speed Rail Authority shall provide advance notification of work described in subparagraph (A) to the High-Speed Rail Authority Office of the Inspector General (OIG) and the chairs of the relevant committees of both houses of the Legislature. The OIG shall conduct a cost-benefit analysis of the proposed work outside the Merced to Bakersfield segment within 60 days of notification and make a finding as to whether or not expenditure of funds for the proposed work will result in a delay in the completion of the Merced to Bakersfield segment. After that time, the OIG shall provide its analysis to chairpersons of the committees of both houses of the Legislature that consider appropriations and the chairpersons of the committees and the appropriate subcommittees of both houses of the Legislature that consider the State Budget before contracts for projects outside of the Merced to Bakersfield segment are considered by the High-Speed Rail Authority for approval. (C) Before expenditure of funds pursuant to this paragraph, the High-Speed Rail Authority shall provide notification of grant applications to the chairpersons of the committees of both houses of the Legislature that consider appropriations and the chairpersons of the committees and the appropriate subcommittees of both houses of the Legislature that consider the State Budget. Approval of the grant application by the Department of Finance may be authorized no sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations and the chairpersons of the committees and the appropriate subcommittees in each house of the Legislature that consider the State Budget. (d) (1) This section shall become inoperative on June 30, 2030, or when the Merced to Bakersfield segment is fully funded, whichever is sooner, and shall be repealed on January 1 of the following year. (2) The High-Speed Rail Authority shall inform the Legislature when the Merced to Bakersfield segment is fully funded in compliance with Section 9795 of the Government Code. SEC. 4.5. Section 39719.3 of the Health and Safety Code is amended to read: 39719.3. (a) For purposes of this section, the following definitions apply: (1) “Fully funded” means the High-Speed Rail Authority has secured funding to complete the Merced to Bakersfield segment within the timelines identified in the most recent business plan prepared pursuant to Section 185033 of the Public Utilities Code or project update report prepared pursuant to Section 185033.5 of the Public Utilities Code and the High-Speed Rail Authority Office of the Inspector General G [Text truncated for display. Full text available on Congress.gov.]