SB-840 • 2026

Greenhouse gases: Greenhouse Gas Reduction Fund: studies.

Agriculture Budget Energy Housing

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Limón (S) , Irwin (A) , McGuire (S) , Rivas
Last action: 2025-09-19
Official status: Chaptered by Secretary of State. Chapter 121, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

The official source does not provide details on exact allocations of funds or percentages directed towards individual funds.

Greenhouse Gas Reduction Fund: Studies and Funding Priorities

The bill requires the California Air Resources Board to conduct studies on greenhouse gas emissions, update protocols for offset credits, and allocate funds from the Greenhouse Gas Reduction Fund according to specified priorities.

What This Bill Does

Requires the State Air Resources Board to study and report on the use of offsets by December 31, 2026.
Updates existing compliance offset protocols based on the best available science by January 1, 2029.
Evaluates all compliance offset protocols every five years starting from January 1, 2034 to ensure they reflect current scientific understanding.

Who It Names or Affects

The State Air Resources Board
Entities covered by greenhouse gas emissions regulations

Terms To Know

Greenhouse Gas Reduction Fund: A fund that collects money from the sale of allowances and uses it for environmental projects.
Offsets: Credits earned by reducing or avoiding greenhouse gas emissions, which can be used to meet compliance obligations under regulations.

Limits and Unknowns

The bill does not specify exact percentages of funds allocated to each area.
It is unclear how the updates and evaluations will impact current offset protocols.

Bill History

2025-09-19 California Legislative Information
Chaptered by Secretary of State. Chapter 121, Statutes of 2025.
2025-09-19 California Legislative Information
Approved by the Governor.
2025-09-15 California Legislative Information
Enrolled and presented to the Governor at 2 p.m.
2025-09-13 California Legislative Information
Assembly amendments concurred in. (Ayes 28. Noes 6. Page 3054.) Ordered to engrossing and enrolling.
2025-09-13 California Legislative Information
Urgency clause adopted.
2025-09-13 California Legislative Information
In Senate. Concurrence in Assembly amendments pending.
2025-09-13 California Legislative Information
Read third time. Urgency clause adopted. Passed. (Ayes 59. Noes 15. Page 3486.) Ordered to the Senate.
2025-09-12 California Legislative Information
Assembly Rule 63 suspended. (Ayes 57. Noes 20. Page 3441.)
2025-09-12 California Legislative Information
From committee: Do pass. (Ayes 10. Noes 2.) (September 12).
2025-09-10 California Legislative Information
Joint Rule 61 and 62(a) suspended. (Ayes 31. Noes 9. Page 2801.)
2025-09-10 California Legislative Information
Joint Rule 62(a) suspended.
2025-09-10 California Legislative Information
Re-referred to Com. on NAT. RES. pursuant to Assembly Rule 77.2.
2025-09-10 California Legislative Information
Ordered to third reading.
2025-09-10 California Legislative Information
Read third time and amended.
2025-09-09 California Legislative Information
Joint Rule 61(a)(13) suspended. (Ayes 60. Noes 20. Page 3128.)
2025-09-02 California Legislative Information
Read second time. Ordered to third reading.
2025-08-29 California Legislative Information
From committee: Do pass. (Ayes 15. Noes 0.) (August 29).
2025-08-20 California Legislative Information
August 20 set for first hearing. Placed on APPR. suspense file.
2025-07-15 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (July 14). Re-referred to Com. on APPR.
2025-06-09 California Legislative Information
Referred to Com. on NAT. RES.
2025-06-03 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-06-02 California Legislative Information
Read third time. Passed. (Ayes 38. Noes 0. Page 1406.) Ordered to the Assembly.
2025-05-23 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
From committee: Do pass. (Ayes 6. Noes 0. Page 1215.) (May 23).
2025-05-16 California Legislative Information
Set for hearing May 23.
2025-05-12 California Legislative Information
May 12 hearing: Placed on APPR. suspense file.
2025-05-02 California Legislative Information
Set for hearing May 12.
2025-05-01 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0. Page 964.) (April 30). Re-referred to Com. on APPR.
2025-04-17 California Legislative Information
Set for hearing April 30.
2025-04-16 California Legislative Information
April 23 set for first hearing canceled at the request of author.
2025-04-04 California Legislative Information
Set for hearing April 23.
2025-04-02 California Legislative Information
Re-referred to Com. on E.Q.
2025-03-26 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
2025-03-12 California Legislative Information
Referred to Com. on RLS.
2025-02-24 California Legislative Information
Read first time.
2025-02-24 California Legislative Information
From printer. May be acted upon on or after March 24.
2025-02-21 California Legislative Information
Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 840, Limón.
Greenhouse gases: Greenhouse Gas Reduction Fund: studies.
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 in furtherance of achieving the statewide greenhouse gas emissions limit, as defined. The act authorizes the state board to revise regulations or adopt additional regulations to further the act. 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 the state board, in regulations implementing the market-based compliance mechanism to, among other things, establish limits on the use of offset credits as a
means for a covered entity to meet its compliance obligations. 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 and continuously appropriates a portion of the moneys in the fund for various purposes.
This bill would state the intent of the Legislature to direct specific percentages of the revenues deposited into the Greenhouse Gas Reduction Fund to individual funds dedicated to funding clean transportation, housing and community investment, clean air and water, wildfire prevention and resilience, agriculture, clean energy, and climate-focused innovation. The bill would make the continuous appropriations from the fund inoperative on July 1, 2026. The bill would, beginning with the 2026–27
fiscal year, allocate moneys in the fund in a specified priority and would continuously appropriate a certain amount of moneys in the fund for certain purposes.
This bill would require the state board, no later than December 31, 2026, to conduct a study and report to the Legislature evaluating and making recommendations on the use of offsets. The bill would require the state board, no later than January 1, 2029, to update all existing compliance offset protocols to reflect the best available science. The bill would require the state board, no later than January 1, 2034, and every 5 years thereafter, to evaluate all compliance offset protocols and to consider whether updates are necessary to ensure the protocols reflect the best available science.
This bill would declare that it is to take effect
immediately as an urgency statute.

Current Bill Text

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