Bill
AB 1849
CARB must assess and promote in-state decarbonized gaseous fuels (like hydrogen) to reduce hard-to-electrify emissions while supporting reliability and economic benefits.
Jurisdiction: California | Session: 2025-2026 | Sponsor: Assembly Member Papan (co-sponsor Diane Papan)
AB 1849 adds a new Article 7 to the Health and Safety Code to advance decarbonized gaseous fuels as a tool for meeting California’s climate targets. The bill acknowledges that hard-to-electrify sectors and the electricity reliability backbone collectively drive a substantial share of greenhouse gas emissions and that accelerating production and use of decarbonized gases (including hydrogen and other low-carbon gaseous fuels) is needed alongside electrification and other decarbonization strategies.
Key stated goals:
- Assess and expand the role of decarbonized gaseous fuels in hard-to-electrify end uses.
- Support electricity reliability while reducing emissions.
- Identify policies and incentives to grow in-state production and use of decarbonized gases.
- Explore opportunities to utilize agricultural/forest residues, reduce wildfire risk, and support economic development.
1) State Board Assessment and Disclosure (by Dec 31, 2029)
- California Air Resources Board (CARB) must conduct and post on its website an assessment of:
- The need for decarbonized gaseous fuels in each hard-to-electrify sector and end use.
- The economic viability and cost of decarbonized gaseous fuels for electricity reliability and resilience.
- Current and potential policies and incentives to accelerate production and use of decarbonized gaseous fuels.
- Opportunities and economic viability of using agricultural and forest residues to decarbonize hard-to-electrify end uses.
2) Scope of Hard-to-Electrify (Definition and Sector Coverage)
- Defines “hard-to-electrify sectors” as end uses (excluding on-road transportation) that cannot realistically switch to electricity due to high heat, high energy density, or other operational constraints. Examples cited include cement, glass and steel manufacturing, aviation and maritime fuels, and certain food processing industries.
- Clarifies that these sectors are distinct from areas already regulated under the Low-Carbon Fuel Standard (LCFS).
3) Policy and Incentive Considerations
- In evaluating policies and incentives, the board must consider:
- Consistency with carbon reductions identified in the 2022 and 2027 scoping plans.
- Compliance obligations of entities under the Cap-and-Invest Program.
- How to incentivize increased in-state production and use of decarbonized gas.
- How to maximize benefits to California (e.g., wildfire mitigation, reduced waste, renewable energy optimization, job creation).
- Policies ensuring decarbonized gases displace fossil fuel use.
- Economic impacts and the cost of alternatives to fossil gas for affected businesses and end users.
4) In-State Production and Use
- Emphasizes evaluating and promoting in-state production and use of decarbonized gaseous fuels, aligning with broader climate goals and public health benefits.
Overall, AB 1849 seeks to formalize an evaluation framework for decarbonized gaseous fuels and to guide future policies that would accelerate production, adoption, and in-state utilization of low-carbon gas as part of California’s broader climate strategy.
Compiled from official sources — confirm details with the bill’s official record.
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