Bill > AB1207

This bill extends California's Cap-and-Invest Program (a market-based mechanism to reduce greenhouse gas emissions) from January 1, 2031 to January 1, 2046, with several key modifications. The bill requires the California Air Resources Board to design regulations that transition support from gas corporations to electrical distribution utilities, minimize ratepayer impacts, and achieve greenhouse gas emissions reduction goals. It establishes a price ceiling for carbon allowances and creates a new California Climate Mitigation Fund to receive revenues from additional allowance sales, with funds intended to provide direct rebates and investments to reduce household energy costs. The bill adjusts offset credit limits, requiring that from 2026 to 2045, no more than 6% of a covered entity's compliance obligation can be met through offset credits, with no more than half coming from projects outside California. Additionally, it mandates that electrical corporations provide climate credits to residential customers in no more than four high-billing months per year and requires the Air Resources Board to report periodically on the program's progress, economic impacts, and effectiveness in reducing greenhouse gas emissions. The bill is designed to continue California's leadership in climate change mitigation while attempting to minimize economic disruption and protect ratepayers.

Agriculture and Natural Resources, Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1207