Methane emissions: petroleum and natural gas producing low methane emissions.

Senator Stern, with Assembly Member Zbur as a coauthor, frames methane emissions from imported natural gas as a state priority and embeds a measurement-driven framework to govern how agencies address those emissions. The core change would require state agencies to prioritize strategies to reduce methane, including from imported petroleum and natural gas, and to pursue procurement of certified low-methane natural gas where feasible and cost-effective, with verification through a systematic measurement, monitoring, reporting, and verification (MMRV) framework. The authoring language also clarifies that the bill does not compel new or additional petroleum and natural gas procurement or expand fossil-fuel use, and it preserves conformity with existing laws.

The bill would redefine MMRV and extend agency responsibilities accordingly. It defines MMRV as a framework for systematically measuring emissions and verifying the accuracy of reported data, and it requires state agencies to consider and implement strategies to reduce greenhouse gas emissions, with a specific emphasis on prioritizing methane reductions, including those associated with imported gas. It authorizes the state Air Resources Board, the Public Utilities Commission, and other relevant agencies to apply approved MMRV protocols to existing programs aimed at reducing methane emissions, including emissions from imported gas procured by utilities and other large gas users, drawing on emissions data, models, or protocols from current or new regulations. It directs the state board to encourage procurement of certified low-methane natural gas, verified by MMRV, where feasible, cost-effective, and in ratepayer interests as determined by the PUC, and it states that the measure is not a mandate to expand fossil-fuel use and does not relieve other laws.

Implementation would rely on regulatory action rather than a defined timetable or new appropriation. The amendments authorize agencies to apply MMRV protocols to existing programs, and to rely on a broad set of sources and standards, including those from current or new regulations, to measure and verify methane emissions. The procurement provision ties to ratepayer considerations overseen by the PUC and referenced Public Utilities Code provisions, indicating a governance framework rather than a stand-alone procurement mandate. The text contemplates ongoing agency actions, with oversight and compliance pursued through established regulatory processes rather than new penalties.

The bill’s findings attach climate context and policy rationale to its provisions. Authors cite the substantial global warming potential of methane relative to carbon dioxide, the California SLCP Reduction Strategy, and the notable share of California’s natural gas that is imported, which affects methane emissions profiles. They reference EPA regulatory developments and frame the proposal within a loading-order approach that prioritizes energy efficiency, renewables, and then clean fossil resources verified by MMRV, all aligned with California’s broader climate and energy transition goals. Stakeholders facing the change include state agencies (ARB and PUC), utilities and large gas users, natural gas suppliers (including out-of-state producers), ratepayers, and environmental and public health interests, all of whom could encounter new data reporting, verification requirements, and potential shifts in procurement decisions tied to the feasibility and cost-effectiveness of certified low-methane gas. Ambiguities noted in the bill concern governance of the certification process, the precise standards for “best interests of ratepayers,” enforcement mechanisms, and any timelines for implementation.