State Energy Resources Conservation and Development Commission: air districts and local governments: transportation fuels refining facilities: memoranda of understanding.

The entire Interagency Working Group on Transportation Fuels Transition Strategy (former Section 25372.5) was deleted. This group would have been led by the California Energy Commission and included CalEPA, the Natural Resources Agency, the Transportation Agency, the State Air Resources Board, the State Water Resources Control Board, the Department of Industrial Relations, the State Lands Commission, air districts, local governments, airports, and ports. It was tasked with developing priority policies, strengthening intergovernmental coordination, and holding at least one public meeting per year.

Added language 'as identified by the commission' after the reference to air districts and local governments with refining facilities, giving the commission discretion over which specific entities it will approach for MOUs rather than being obligated to engage all of them.

Legislative findings referencing specific regulatory programs were removed, including references to the 2020 At Berth Regulation, the California Cap-and-Invest Program, crude oil extraction and delivery issues, and the statement that 'market adjustments must also align with California's trailblazing climate policies.'

The MOU obligation was weakened from 'the commission shall enter into memoranda of understanding' to 'the commission shall seek to enter into memoranda of understanding.' This changes the requirement from a mandatory outcome to an effort-based standard, meaning the commission is no longer required to actually sign the agreements.

The purpose clause was expanded from 'to enable the coordination that is needed to ensure the transportation fuels sector is successfully managed' to 'to enable the further coordination that is needed to support management of the transportation fuels sector and to ensure the transportation fuels sector is successfully managed,' adding a separate goal of supporting sector management.

The new section was renumbered from Section 25372.5 to Section 25370.5 in the Public Resources Code, changing its placement within the code.

New Section 25370.5 requires the commission to enter into memoranda of understanding with relevant air districts and local governments that have transportation fuels refining facilities within their jurisdictions by January 31, 2029, to enable coordination for managing the transportation fuels sector while maintaining environmental, public health, labor, economic, and consumer protections.

Removed the working group's standalone duty to 'develop and execute a holistic transportation fuels strategy,' which had been listed as a separate item alongside developing priority policies and strengthening coordination.

Removed the specific reference to the June 27, 2025 letter from the State Energy Resources Conservation and Development Commission to the Governor, which had been cited as context for the partnership proposal duty.

Simplified language in the working group's coordination duty from 'strengthen coordination and establish clear lines of communication to prioritize critical energy regarding policies and regulations' to 'strengthen coordination and communication regarding policies and regulations.'

The workgroup is now formally named 'The Interagency Working Group on Transportation Fuels Transition Strategy' rather than being described generically as 'an interagency workgroup.'

Membership expanded from 5 entity types (State Lands Commission, air districts, local governments, airports, ports) to 11, adding the California Environmental Protection Agency, Natural Resources Agency, Transportation Agency, State Air Resources Board, State Water Resources Control Board, and Department of Industrial Relations.

New provision allows local agencies to participate in the working group beyond those already listed as members.

The workgroup must now develop priority policies and programs informed by the Transportation Fuels Transition Plan prepared under Section 25371.3 and the assessment described in Section 25371.4, tying its output to existing statutory planning requirements.

The workgroup's duties were restructured from four separate items into two main categories: (1) develop priority policies informed by the plan and assessment, and (2) strengthen coordination, which includes developing recommendations for managed transition policies and proposing partnership opportunities. The Independent Consumer Fuels Advisory Committee (Section 25373) was added as a potential partner entity.

The commission is required to annually convene at least one public meeting of the working group to provide information to and receive comments from the public, must request representatives from all listed entities to attend, and may combine this meeting with a meeting of the Independent Consumer Fuels Advisory Committee.