Revises provisions relating to certain crimes. (BDR 15-443)

2025 Regular Session

AB 34 requires the Legislative Analyst to analyze consumer price impacts (fuel per gallon, electricity per kWh) before CARB may adopt rules affecting LCFS or cap‑and‑trade.

(No further action taken.)

Purpose / Intent

AB 34 requires an independent fiscal review of consumer cost impacts before the State Air Resources Board (CARB) may adopt certain regulations that would affect California’s Low Carbon Fuel Standard (LCFS) or the California Greenhouse Gas Cap‑and‑Trade Program. The bill aims to ensure the Legislative Analyst’s Office (LAO) evaluates how proposed CARB standards would change retail fuel and electricity prices for consumers prior to adoption.

Key provisions

Amends Health and Safety Code §39602.5.

Adds a prohibition: CARB shall not adopt any standard, regulation, or rule under §39602.5 or §43013 that “affects” either:

the Low Carbon Fuel Standard (LCFS, Cal. Code Regs. Title 17, §95480 et seq.), or
the California Greenhouse Gas Cap‑and‑Trade Program (Title 17, §95801 et seq.), until the Legislative Analyst has:
analyzed the cost to consumers from the impact on the price per gallon of fuel or price per kilowatt‑hour of electricity of the proposed rule, and
submitted that analysis to the Legislature.

Who is affected

California Air Resources Board (CARB): additional procedural requirement before adopting certain regulations.

Consumers: particularly drivers and electricity users, since the LAO analysis must estimate price impacts per gallon and per kWh.

Regulated entities and markets: fuel producers, refiners, distributors, utilities, and businesses subject to LCFS or cap‑and‑trade compliance obligations.

Legislature and LAO: LAO tasked with producing and submitting the cost analysis.

Procedural/timeline implications

The bill conditions CARB rule adoption on completion and submission of an LAO analysis. AB 34 does not specify a deadline for the LAO’s review, which could lead to delays or uncertainty in CARB’s regulatory schedule.

Applies to any proposed CARB standard/regulation/rule that “affects” LCFS or cap‑and‑trade — the scope of “affects” could be broad and subject to interpretation.

Potential impacts and considerations

Could slow or constrain CARB action on measures linked to LCFS and cap‑and‑trade by inserting an external review step.

May increase legislative oversight of climate‑related regulatory changes and create additional administrative workload for the LAO.

Could influence the timing of emissions reduction measures tied to fuel carbon intensity or market‑based mechanisms; the bill does not require LAO to assess environmental benefits or emission reductions, only consumer price impacts.

Fiscal note: bill summary indicates majority vote, no appropriation required, but fiscal committee review is flagged.

Legislative history (selected)

12/02/2024: Introduced and read first time.

02/03/2025: Referred to Committee on Natural Resources.

03/13/2025: Amended and re‑referred to Committee on Natural Resources.

03/17/2025: Re‑referred to Committee on Natural Resources.

This summary focuses on the substantive change: creating a pre‑adoption LAO cost‑to‑consumer analysis requirement for CARB rules that would affect the LCFS or cap‑and‑trade program.

Bill