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SB 840

Greenhouse gases: Greenhouse Gas Reduction Fund: studies.

2025-2026 Regular Session Introduced by Ben Allen and 9 co-sponsors

SB 840 allocates funds from California's Greenhouse Gas Reduction Fund to key environmental projects, ensuring effective climate action and regular evaluations for ongoing improvement.

Chaptered by Secretary of State. Chapter 121, Statutes of 2025.
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Bill Summary · SB 840

Summary of SB 840: Greenhouse Gases: Greenhouse Gas Reduction Fund: Studies

Bill Number: SB 840
Introduced: February 21, 2025
Status: Chaptered by Secretary of State. Chapter 121, Statutes of 2025.
Authors: Limón, McGuire
Classification: Bill, Appropriation
Subject: Greenhouse Gas Reduction Fund, Greenhouse Gases, Studies

Purpose and Intent

SB 840 aims to enhance California's efforts in reducing greenhouse gas emissions by refining the management and allocation of funds from the Greenhouse Gas Reduction Fund. The bill establishes a framework for evaluating and improving compliance offset protocols and directs specific percentages of fund revenues to targeted environmental initiatives.

Key Provisions

  • Allocation of Funds: The bill expresses the Legislature's intent to allocate specific percentages of revenues from the Greenhouse Gas Reduction Fund to various dedicated funds, including:

    • Clean transportation
    • Housing and community investment
    • Clean air and water
    • Wildfire prevention and resilience
    • Agriculture
    • Clean energy
    • Climate-focused innovation

  • Inoperative Appropriations: Continuous appropriations from the Greenhouse Gas Reduction Fund will become inoperative on July 1, 2026. Starting in the 2026-27 fiscal year, funds will be allocated based on specified priorities.

  • Studies and Reports:

    • The California State Air Resources Board (CARB) is required to conduct a study by December 31, 2026, evaluating the effectiveness of offset projects in achieving climate goals and making recommendations for improvements.
    • By January 1, 2029, CARB must update all existing compliance offset protocols to align with the best available science.
    • A five-year evaluation cycle will be established, starting January 1, 2034, to ensure compliance offset protocols remain current and effective.

Impact

  • Environmental Benefits: The bill is expected to enhance California's climate initiatives by ensuring that funds are effectively allocated to projects that contribute to greenhouse gas reduction and environmental sustainability.
  • Stakeholder Engagement: The study and recommendations from CARB will involve assessing the attractiveness of in-state offset projects, potentially leading to increased investment and participation in California's carbon market.
  • Long-term Strategy: By mandating regular evaluations of compliance protocols, the bill aims to ensure that California's climate policies remain responsive to new scientific findings and best practices.

Procedural Aspects

  • The bill was approved by the Governor on September 19, 2025, and became effective immediately as an urgency statute.
  • It passed through various legislative committees and was subject to multiple readings and amendments before final approval.

Conclusion

SB 840 represents a significant step in California's ongoing efforts to combat climate change by refining the management of greenhouse gas reduction funds and ensuring that environmental initiatives are backed by sound scientific practices. The bill's focus on targeted funding and regular evaluations positions California to adapt and respond effectively to the challenges of climate change.

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

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