CaliforniaSB 8402025-2026 Regular SessionSenateWALLET

Greenhouse gases: market-based compliance mechanism.

Sponsored By: Jacqui Irwin (Democratic), Monique Limón (Democratic), Mike McGuire (Democratic), Robert Rivas (Democratic)

Signed by Governor

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

12 provisions identified: 10 benefits, 0 costs, 2 mixed.

Cleaner air in local communities

The law continuously provides $250 million for community air protection. The Air Resources Board funds incentives to cut pollution from vehicles and equipment, and supports local air districts. Funding comes after higher‑priority allocations and targets disadvantaged and low‑income areas.

More funding for forest fire prevention

The state continuously provides $200 million to Cal Fire. 82.5% funds healthy forest and fire prevention programs. 17.5% funds prescribed fire, fuel reduction, and related research and monitoring. Spending must reduce greenhouse gases and aid disadvantaged or low‑income communities.

More help for safe drinking water

The state transfers $130 million to the Safe and Affordable Drinking Water Fund. The money pays for drinking‑water projects under the state program after higher‑priority allocations. It focuses on communities that lack safe water, often low‑income or rural areas.

More money for trains and transit

The state provides $1 billion to high‑speed rail for land, design, construction, and loan repayment. It also sets aside $400 million for transit and intercity rail projects and $200 million for low‑carbon transit operations, distributed under program formulas. Lawmakers state an intent to spend $125 million on transit passes in 2026–27. These funds follow program rules and flow after higher‑priority allocations.

More money for affordable housing

The law continuously sets aside $800 million for the Affordable Housing and Sustainable Communities Program. At least 10% must go to affordable housing. Money is used after higher‑priority allocations and under program rules.

New rules for climate fund spending

The law reserves $1 billion for the Legislature to allocate in the budget, with stated priorities for 2026–27. If annual proceeds are short after higher‑priority items and state operations, the Department of Finance reduces paragraph (1) appropriations proportionally. Any surplus beyond required allocations can be spent through the Budget Act or another law. Section 39719 becomes inoperative July 1, 2026, ending the current continuous appropriation structure.

State covers former SRA fire fees

Beginning in the 2026–27 fiscal year, state funds first replace revenue from the State Responsibility Area fire prevention fee. This shifts money to cover what the fee supported. The law does not set a per‑household amount.

Planned 2026–27 climate research and parks

For 2026–27, lawmakers intend to direct $85 million to a chosen entity for climate tech research and deployment. They also intend $25 million as seed funding for a UC Climate Research Center and $15 million to rebuild Topanga Park. These intentions draw from the $1 billion reserve and depend on later budget choices and allocation order.

Stronger rules for carbon offsets

The Air Resources Board must update all offset protocols by January 1, 2029 using the best available science. It must consider other carbon markets, Paris Agreement Article 6.4, research, and industry best practices. The Board must also review all protocols by January 1, 2034 and every five years after that.

Climate funds must cut emissions or help resilience

The law requires listed funds to reduce greenhouse gases or improve climate adaptation and resilience for disadvantaged or low‑income communities. Agencies may meet budget reporting rules by explaining how each expense improves resilience.

Top-priority backfill for tax program

Beginning in the 2026–27 fiscal year, funds are allocated to cover amounts identified in state tax law (Revenue and Taxation Code Section 6377.1(g)(3)(A)). This is a high‑priority use of the fund and does not create a household payment.

Start-up funds for climate policy office

Starting in 2026–27, the law sets aside $3 million to start the Legislative Counsel Climate Bureau. Agencies cannot spend this money until a law defines the bureau’s roles and duties.

Sponsors & Cosponsors

Sponsors

  • Jacqui Irwin

    Democratic • House

  • Monique Limón

    Democratic • Senate

  • Mike McGuire

    Democratic • Senate

  • Robert Rivas

    Democratic • House

Cosponsors

  • Benjamin Allen

    Democratic • Senate

  • Josh Becker

    Democratic • Senate

  • Catherine Blakespear

    Democratic • Senate

  • Anna Caballero

    Democratic • Senate

  • Mark Mark González

    Democratic • House

  • John Laird

    Democratic • Senate

  • Henry Stern

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 183 • No: 23

House vote 9/13/2025

Item 204 — Assembly AFLOOR

Yes: 59 • No: 15

Senate vote 9/13/2025

Item WORF — Senate SFLOOR

Yes: 28 • No: 6

legislature vote 9/12/2025

Vote in CX16

Yes: 10 • No: 2

legislature vote 8/29/2025

Vote in CX25

Yes: 15 • No: 0

legislature vote 7/14/2025

Vote in CX16

Yes: 12 • No: 0

Senate vote 6/2/2025

Item 143 — Senate SFLOOR

Yes: 38 • No: 0

legislature vote 5/23/2025

Vote in CS61

Yes: 6 • No: 0

legislature vote 5/12/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote 4/30/2025

Vote in CS64

Yes: 8 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 121, Statutes of 2025.

    9/19/2025Senate
  2. Approved by the Governor.

    9/19/2025legislature
  3. Enrolled and presented to the Governor at 2 p.m.

    9/15/2025legislature
  4. Assembly amendments concurred in. (Ayes 28. Noes 6. Page 3054.) Ordered to engrossing and enrolling.

    9/13/2025Senate
  5. Urgency clause adopted.

    9/13/2025Senate
  6. In Senate. Concurrence in Assembly amendments pending.

    9/13/2025Senate
  7. Read third time. Urgency clause adopted. Passed. (Ayes 59. Noes 15. Page 3486.) Ordered to the Senate.

    9/13/2025House
  8. Assembly Rule 63 suspended. (Ayes 57. Noes 20. Page 3441.)

    9/12/2025House
  9. From committee: Do pass. (Ayes 10. Noes 2.) (September 12).

    9/12/2025House
  10. Joint Rule 61 and 62(a) suspended. (Ayes 31. Noes 9. Page 2801.)

    9/10/2025House
  11. Joint Rule 62(a) suspended.

    9/10/2025House
  12. Re-referred to Com. on NAT. RES. pursuant to Assembly Rule 77.2.

    9/10/2025House
  13. Ordered to third reading.

    9/10/2025House
  14. Read third time and amended.

    9/10/2025House
  15. Joint Rule 61(a)(13) suspended. (Ayes 60. Noes 20. Page 3128.)

    9/9/2025House
  16. Read second time. Ordered to third reading.

    9/2/2025House
  17. From committee: Do pass. (Ayes 15. Noes 0.) (August 29).

    8/29/2025House
  18. August 20 set for first hearing. Placed on APPR. suspense file.

    8/20/2025House
  19. From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (July 14). Re-referred to Com. on APPR.

    7/15/2025House
  20. Referred to Com. on NAT. RES.

    6/9/2025House
  21. In Assembly. Read first time. Held at Desk.

    6/3/2025House
  22. Read third time. Passed. (Ayes 38. Noes 0. Page 1406.) Ordered to the Assembly.

    6/2/2025Senate
  23. From committee: Do pass. (Ayes 6. Noes 0. Page 1215.) (May 23).

    5/23/2025Senate
  24. Read second time. Ordered to third reading.

    5/23/2025Senate
  25. Set for hearing May 23.

    5/16/2025Senate

Bill Text

  • Chaptered

    9/19/2025

  • Enrolled

    9/15/2025

  • Amended Assembly

    9/10/2025

  • Amended Senate

    3/26/2025

  • Introduced

    2/21/2025

Related Bills

Back to State Legislation