/>iAs we enter 2025 amid the devastating Los Angeles fires[1] and with a new presidential administration, we continue our series of yearly reviews of the most significant governmental actions taken by the state of California relevant to climate change in the previous year.[2]
Unless otherwise specified, the legislation discussed herein is effective as of January 1, 2025.
Climate Corporate Data Accountability Act
Senate Bill (SB) 219 amends the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261)[3] and consolidates both under the unified title of the Climate Corporate Data Accountability Act (CCDAA).
Specifically, SB 219 delays the deadline for the California Air Resources Board (CARB) to establish regulations implementing the CCDAA from January 1, 2025, to July 1, 2025. It further amends the previous legislation to authorize, instead of require, CARB to partner with third-party emissions or climate reporting organizations to collect and make relevant data publicly available. SB 219 also provides additional flexibility concerning the reporting of Scope 3 emissions – previously required to be reported within 180 days of Scope 1 and Scope 2 emissions – by allowing CARB to set a separate timeline for the reporting of Scope 3 emissions as part of its rulemaking process. Finally, SB 219 permits reporting entities to consolidate their emissions reports at the parent company level and allows payment of the statutory annual fee at any time, as opposed to at the time of filing.
Geothermal and Gas
Streamlining Geothermal Projects
Assembly Bill (AB) 1359 amends Section 3715.5 of the Public Resources Code to streamline the environmental review process for geothermal exploratory projects under the California Environmental Quality Act (CEQA). AB 1359 is classified as an urgency statute and, as such, took effect upon signature by Governor Gavin Newsom on September 27, 2024, to help accelerate the deployment of geothermal energy projects as part of California’s renewable energy generation goals.
This bill simplifies the process for applicants of “geothermal exploratory projects”[4] by allowing counties to take on lead agency roles, potentially expediting project approvals. The Geologic Energy Management Division (CalGEM) is designated as the lead agency for geothermal exploratory projects. However, upon request, the county where the project is located must assume lead agency responsibilities (as defined by CEQA), regardless of whether it has a geothermal element in its “General Plan.” If a county takes on the lead agency role, it must work with CalGEM to ensure all necessary information for environmental review is included, supporting CalGEM’s role as a responsible agency (as defined by CEQA). The previous requirement for counties to complete lead agency duties within 135 days has been removed, allowing more flexibility in managing project timelines.
Reforming Approach to Idle Oil and Gas Wells
AB 1866 amends sections of the Public Resources Code to address issues related to idle oil and gas wells in California. The bill increases fees for operators of idle wells, including those idle for less than 3 years, with fees escalating based on the duration a well has been inactive. Operators must file a management plan for all idle wells (not just long-term idle wells) by May 1st each year, focusing on prioritizing wells for plugging and abandonment based on specific criteria, such as proximity to sensitive receptors and potential threats. Wells that cannot be accessed or are subject to more stringent court-approved settlement agreements are exempt from these requirements.
Local Control Over Oil and Gas Operations
AB 3233 empowers local governments, such as cities and counties, to impose their own restrictions, including on method or location, or prohibitions on oil and gas operations within their jurisdictions through local ordinances. These local regulations can be more stringent than state laws, particularly in areas related to public health, climate, and environmental protection. If a local entity chooses to limit or prohibit these operations, responsible operators must adhere to existing regulations concerning the plugging and abandoning of wells and the decommissioning of production facilities.
Overall, AB 3233 represents a significant shift in California’s regulatory framework by decentralizing authority and enhancing local control over oil and gas operations.
Transportation
Ban of Gasoline Car Sales by 2035
On December 18, 2024, the United States Environmental Protection Agency (EPA) granted California the authority to move ahead with the state’s “Advanced Clean Cars II” program, which includes the much-publicized ban on the sale of new gasoline-powered cars after 2035.[5] As discussed in our 2023 in Review article, the EPA waiver allowing California to set its own vehicle emission standards at a more stringent level than federal standards had been granted as a matter of course until 2019, when the EPA (under the first Trump administration) revoked the waiver. Such revocation was subject to legal challenges before being reinstated by the Biden administration. The waiver was officially granted in April 2024, after the DC Court of Appeals affirmed the DC Circuit Court’s decision that the waiver did not present any constitutional issues.[6] The United States Supreme Court then denied certiorari on December 16, 2024.
It must be noted that the waiver was only approved for the Advance Clean Cars II program, not the state’s sister programs for medium and heavy-duty vehicles and locomotives. Anticipating rejection of the waivers by the incoming Trump administration, CARB withdrew its requests for these additional waivers on January 13, 2025.[7] It is also anticipated that the Trump administration will again attempt to revoke the waiver granted for the Advance Clean Cars II program, which will likely lead to additional litigation and a period of limbo for California and the 11 states (representing nearly 40% of the nation’s population) that choose to follow California’s emissions standards.[8]
Potential Mandate for Bidirectional Electric Vehicles
SB 59 grants the California Energy Commission (CEC) authority to require that battery electric vehicles of any weight class be bidirectional-capable (capable of both receiving and discharging electricity). This decision is contingent upon the CEC, in collaboration with CARB and the California Public Utilities Commission, identifying a vehicle weight class in which both the vehicle operator and the electrical grid would benefit from the mandate. In making this determination, the relevant agencies are required to assess vehicle readiness and the operational demands of vehicles used by essential service providers.
Interested parties should follow the agencies’ ongoing research and look for opportunities to contribute to any potential rulemaking on this topic.
CARB updates Low Carbon Fuel Standard
In November 2024, after several rounds of public hearings and comments, CARB approved significant updates to the Low Carbon Fuel Standard (LCFS), aiming to drive private investment in clean transportation fuels and zero-emission infrastructure. The amendments set targets of 30% reduction in the carbon intensity of transportation fuels by 2030 and 90% by 2045, while supporting the growth of electric vehicle (EV) charging stations, hydrogen refueling infrastructure, and clean fuels for medium- and heavy-duty vehicles.
These proposed updates were submitted to the California Office of Administrative Law (OAL) on January 3, 2025. OAL has until February 18, 2025, to make a final determination on the proposals.
Proposition 4 – Climate Preparedness Bond
Proposition 4 was passed through the State’s November 5, 2024 general election and authorizes California to sell a $10 billion bond to fund natural resources and climate-related initiatives. The bond will support projects in 8 key areas, including water supply and flood management ($3.8 billion). About half of this funding ($1.9 billion) would be dedicated to improving the availability and quality of water for public use, forest health and wildfire prevention ($1.5 billion), coastal restoration and sea-level rise mitigation ($1.2 billion), land conservation ($1.2 billion), energy infrastructure development ($850 million), park expansion and maintenance ($700 million), extreme heat mitigation ($450 million), and sustainable farming practices ($300 million). At least 40% of the funds must benefit low-income or climate-vulnerable communities, and there will be regular public reporting on the spending.
Statewide Mobile Monitoring Initiative
In November 2024, CARB announced the launch of the Statewide Mobile Monitoring Initiative (SMMI) in connection with the Community Air Protection Program (CAPP) originally established in 2017 by AB 617. The CAPP’s purpose is to identify communities most at risk of air pollution within California and develop strategies to mitigate and reduce such pollution. The SMMI is designed to address the challenges of detecting elusive pollutants that pose serious health risks, particularly to disadvantaged and frontline communities. The SMMI is funded by a $27 million appropriation from the California Climate Investment program.
The SMMI focuses on detecting greenhouse gases, toxic air contaminants, and criteria pollutants, with a strong emphasis on community involvement. The initiative aims to empower local entities by providing data that validates community-reported pollution concerns. Initially, the SMMI will target 64 communities identified under the CAPP.
Looking Forward
Following his inauguration as the 47th President of the United States, Donald Trump again withdrew the United States from the Paris Climate Accord and signaled his intent to follow through on his campaign promises to slash the Biden administration’s climate change policies and combat California’s state-level climate change policies. Governor Newsom, meanwhile, issued a brief statement following the inauguration indicating that California again plans to pursue its ambitious climate targets regardless of the level of support or opposition from the federal government.
The potential for uncertainty, instability, and conflict between federal law and the laws of the state representing the nation’s largest economy bears watching closely for all those who may be impacted.
FOOTNOTES
[1] See articles related to the State’s fire response here and here.
[2] See our previous articles covering 2022 and 2023, respectively.
[3] See prior articles on these bills here and here.
[4] Projects designed to evaluate the “presence and characteristics of geothermal resources” prior to development of a geothermal energy project.
[5] See EPA Grants Waiver for California’s Advanced Clean Cars II Regulations | US EPA.
[6] Ohio et al. v. U.S. Environmental Protection Agency et al., case number 22-1081, in the U.S. Court of Appeals for the District of Columbia Circuit.
[7] See withdrawal letters at this link: Vehicle Emissions California Waivers and Authorizations | US EPA.
[8] See California Vehicle Waivers ‘Legally Solid’ as Trump Eyes Repeal; Trump takes aim at clean energy, climate change and the environment on day one – Los Angeles Times.
