SB 348 California Senate · 2025-2026 Regular Session

State Air Resources Board: Low Carbon Fuel Standard.

Summary

Existing law imposes various limitations on emissions of air contaminants for the control of air pollution from vehicular and nonvehicular sources. Existing law generally designates the State Air Resources Board as the state agency with the primary responsibility for the control of vehicular air pollution. Existing law requires the state board to adopt standards, rules, and regulations necessary for the proper execution of the powers and duties granted to, and imposed upon, the state board. The California Global Warming Solutions Act of 2006 establishes the state board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to adopt rules and regulations, as provided, to achieve the maximum technologically feasible and cost-effective greenhouse gas emissions reductions to ensure that the statewide greenhouse gas emissions are reduced to at least 40% below the statewide greenhouse gas emissions limit, as defined, no later than December 31, 2030. Pursuant to its authority, the state board has adopted the Low Carbon Fuel Standard regulations to reduce the carbon intensity of transportation fuels used in California, as specified. This bill would require the state board, beginning no later than January 31, 2026, to reconsider and revise the Low Carbon Fuel Standard to reduce the program's financial burden on drivers in the state, including by taking specified actions.

Issues: ✓ Energy ✓ Environment

Bill status failed 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 12, 2025 Last action Feb 2, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

05/05/25 - Amended Senate → SB348 · 2 edits

MINOR

The bill was reformatted from a plain-text legislative document into a web page layout, with one substantive policy change: Section 38567(b)(1) no longer requires the cost analysis to include a comparison to methodologies used in evaluating previous LCFS amendments or an explanation of why those prior methodologies were insufficient or inaccurate. This narrows the analytical obligations on the State Air Resources Board when revising the Low Carbon Fuel Standard.

REQUIREMENT

Section 38567(b)(1) previously required the board's cost analysis to include a comparison to methodologies used in evaluating cost impacts of previous LCFS amendments and an explanation of why those methodologies were insufficient or inaccurate. That comparative-methodology requirement was removed, leaving only the general requirement to provide a complete analysis and evaluation of the passed-through cost of carbon credits to drivers.

TECHNICAL

The entire document was reformatted from a plain-text legislative bill layout (with line numbers, page headers, and column formatting) into a web page structure with navigation elements, search tools, and standard HTML-style presentation. No other policy content was changed.

03/20/25 - Amended Senate → 05/05/25 - Amended Senate · 7 edits · May 5, 2025

MODERATE

The May 5 amendment transforms SB 348 from a non-binding statement of legislative intent into an operative bill that directly mandates the State Air Resources Board to revise the Low Carbon Fuel Standard by January 31, 2026. It also adds two new analytical requirements (evaluating in-state project prioritization and analyzing credit price cap impacts) and specifies one existing requirement with more detail (comparing cost methodologies to prior amendments). The fiscal committee designation changed from 'no' to 'yes,' reflecting the bill's new direct regulatory impact.

SCOPE

Section 2 was changed from a non-binding statement of legislative intent ('It is the intent of the Legislature to enact future legislation') into directly operative law requiring the state board to act. The bill no longer defers action to future legislation.

REQUIREMENT

New subsection (3) in Section 38567 requires the board to evaluate how much the LCFS can be changed to prioritize in-state projects and benefits, and to describe any legal limitations on doing so under state and federal law.

New subsection (4) in Section 38567 requires the board to provide an analysis of how adjusting the credit price cap in the Credit Clearance Market would affect program cost and investment capabilities.

Subsection (1) of Section 38567 now requires the cost analysis to include a comparison to methodologies used in evaluating cost impacts of previous LCFS amendments, plus an explanation of why those prior methodologies were insufficient or inaccurate.

Subsection (2) of Section 38567 now specifies that revising carbon credit structures includes 'multiplying credit generation for certain classes of pathways that are aligned with state policy priorities.'

FISCAL

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now carries direct fiscal implications requiring fiscal committee review.

TECHNICAL

Throughout the bill, 'Low-Carbon Fuel Standard' (hyphenated) was changed to 'Low Carbon Fuel Standard' (no hyphen) to match the official regulatory name.

02/12/25 - Introduced → 03/20/25 - Amended Senate · 5 edits · Mar 20, 2025

MODERATE

SB 348 was transformed from a non-binding declaration of legislative intent into an operative bill that imposes binding requirements on the State Air Resources Board. The amended version adds two new code sections: one requiring the board to revise the Low Carbon Fuel Standard by January 31, 2026 to reduce drivers' financial burden, and another requiring the board to conduct a financial impact analysis on drivers before adopting any policy with direct financial consequences. This shifts the bill from aspirational language to enforceable obligations with a specific deadline.

REQUIREMENT

New Section 38567 requires the State Air Resources Board, no later than January 31, 2026, to reconsider and revise the Low Carbon Fuel Standard program to reduce financial burden on drivers, including providing a complete analysis of passed-through carbon credit costs, prioritizing changes that directly benefit individual drivers, and balancing environmental goals with economic equity.

New Section 39601.3 imposes a broader ongoing requirement: whenever the state board revises, adopts, or establishes any policy, standard, rule, or regulation with a direct financial impact on drivers (not limited to LCFS), it must consider the financial burden and prepare a thorough analysis of the financial impact to ensure full transparency.

SCOPE

A new legislative finding (subsection e) was added stating that California consumers are overly burdened by the high cost of living and that the state should consider financial impacts on consumers as future climate legislation and regulations are made.

FISCAL

The fiscal committee designation changed from 'no' to 'yes,' indicating the amended bill now has identifiable fiscal implications due to the new binding requirements.

TECHNICAL

The term 'Low-Carbon Fuel Standard' was changed to 'Low Carbon Fuel Standard' (hyphen removed) throughout the bill, and the bill title was updated to reference the specific code sections being added.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 23, 2025

Upper · Passed

May 23 hearing: Held in committee and under submission.

upper

May 5, 2025

Upper · Passed

Read second time and amended. Re-referred to Com. on APPR.

upper

May 1, 2025

Upper · Passed

From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 963.) (April 30).

upper

Apr 2, 2025

Committee

Re-referred to Com. on E.Q.

upper

Mar 20, 2025

Upper · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

upper

Feb 19, 2025

Committee

Referred to Com. on RLS.

upper

Feb 12, 2025

Introduced

Introduced. Read first time. To Com. on RLS. for assignment. To print.

upper

1 primary · 0 co-sponsors