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SB 654

California Environmental Protection Agency: contract: registry: greenhouse gas emissions that result from the water-energy nexus.

2025-2026 Regular Session Introduced by Henry Stern

SB 654 requires California EPA to establish a greenhouse gas emissions registry for water systems to track and reduce emissions from water supply and energy consumption operations.

May 23 hearing: Held in committee and under submission.
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Bill Summary · SB 654

Legislative bill overview

SB 654 directs the California Environmental Protection Agency to establish a registry and contracting mechanism to track and account for greenhouse gas emissions generated by water supply and treatment systems—addressing the "water-energy nexus" where water operations consume significant electricity. The bill aims to create transparency around these often-overlooked emissions and potentially enable carbon credit or offset mechanisms tied to water system efficiency improvements.

Why is this important

California's water systems consume approximately 19% of the state's electricity, making them a major but frequently invisible source of greenhouse gas emissions. Creating a registry could identify efficiency opportunities, inform climate policy, and help water agencies reduce their carbon footprint while meeting both water security and climate goals.

Potential points of contention

  • Implementation costs: Establishing and maintaining a comprehensive registry requires funding and administrative capacity that may burden smaller water agencies or the state budget
  • Market mechanisms uncertainty: The bill's reference to "contract" and "registry" suggests potential carbon credit systems, which critics argue could create financial complexity without guaranteeing emissions reductions
  • Scope and feasibility: Accurately measuring and attributing greenhouse gas emissions across California's fragmented water systems presents technical and methodological challenges
  • Competing priorities: Water agencies may argue that mandatory emissions tracking diverts resources from immediate water availability and quality concerns

Compiled from official sources — confirm details with the bill’s official record.

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