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    AB-1207
    Energy & Environment

    Climate change: market-based compliance mechanism: price ceiling.

    Engrossed
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Updates California's carbon pricing system to use EPA's 2023 social cost of carbon calculations.
    • Maintains emission allowance price controls through 2030 to protect businesses and consumers.
    • Requires detailed progress reports to the Legislature on meeting greenhouse gas reduction targets.
    • Allows up to 6% of emissions obligations to be met through carbon offset credits by 2026.

    Summary

    Assembly Member Irwin's climate change legislation modifies California's greenhouse gas emissions pricing framework by requiring the State Air Resources Board to incorporate the U.S. Environmental Protection Agency's November 2023 social cost metrics when setting allowance price ceilings.

    The bill amends the California Global Warming Solutions Act's market-based compliance mechanisms, which currently authorize the board to establish price ceilings for emission allowances through 2030. Under existing law, the board must consider various factors in setting these ceilings, including potential economic impacts, auction reserve prices, and the general social cost of greenhouse gas emissions. The new requirement specifies that the board must use the EPA's November 2023 determination of these social costs rather than developing its own metrics.

    This change affects the broader emissions trading system that requires covered entities to obtain allowances for their greenhouse gas emissions. The system includes price containment points below the ceiling and allows entities to meet a portion of their obligations through offset credits - up to 4% through 2025 and 6% from 2026-2030. When allowance reserves are depleted, the board can offer additional allowances at the ceiling price, with proceeds funding verified emissions reductions elsewhere. The amended provisions remain in effect until January 1, 2031.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Environmental Quality
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Environmental Quality
    Hearing has not been scheduled yet
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1207 Irwin Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass
    Assembly Natural Resources Hearing
    Assembly Committee
    Assembly Natural Resources Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Introduced
    Assembly Floor
    Introduced
    Introduced. To print.

    Contacts

    Profile
    Jacqui IrwinD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Melissa HurtadoD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Lena GonzalezD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Megan DahleR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 8 row(s) selected.
    Page 1 of 2
    Select All Legislators
    Profile
    Jacqui IrwinD
    Assemblymember
    Bill Author
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Profile
    Melissa HurtadoD
    Senator
    Committee Member
    Profile
    Lena GonzalezD
    Senator
    Committee Member
    Profile
    Megan DahleR
    Senator
    Committee Member
    Profile
    Catherine BlakespearD
    Senator
    Committee Member
    Profile
    Caroline MenjivarD
    Senator
    Committee Member
    Profile
    Sasha Renee PerezD
    Senator
    Committee Member

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    AB-513
    California Global Warming Solutions Act of 2006: scoping plan.
    February 2025
    Introduced
    View Bill
    AB-491
    California Global Warming Solutions Act of 2006: climate goals: natural and working lands.
    February 2025
    Introduced
    View Bill
    ABX-113
    California Global Warming Solutions Act of 2006: scoping plan.
    January 2025
    Failed
    View Bill
    AB-1159
    California Global Warming Solutions Act of 2006: natural and working lands: market-based compliance mechanisms.
    February 2023
    Passed
    View Bill
    AB-397
    California Global Warming Solutions Act of 2006: scoping plan.
    February 2023
    Failed
    View Bill
    AB-9
    Greenhouse gases: market-based compliance mechanism.
    December 2022
    Failed
    View Bill
    SB-12
    California Global Warming Solutions Act of 2006: emissions limit.
    December 2022
    Failed
    View Bill
    Greenhouse gases: market-based compliance mechanism.
    February 2022
    Failed
    View Bill
    greenhouse gases: market-based compliance mechanism.
    February 2022
    Failed
    View Bill
    Scoping plan: state agency, board, and department compliance and implementation: reports.
    February 2022
    Failed
    View Bill
    Showing 10 of 55 items
    Page 1 of 6

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Jacqui Irwin
    Jacqui IrwinD
    California State Assembly Member
    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (5/27/2025)

    Latest Voting History

    View History
    May 27, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    6021779PASS

    Key Takeaways

    • Updates California's carbon pricing system to use EPA's 2023 social cost of carbon calculations.
    • Maintains emission allowance price controls through 2030 to protect businesses and consumers.
    • Requires detailed progress reports to the Legislature on meeting greenhouse gas reduction targets.
    • Allows up to 6% of emissions obligations to be met through carbon offset credits by 2026.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Jacqui Irwin
    Jacqui IrwinD
    California State Assembly Member

    Summary

    Assembly Member Irwin's climate change legislation modifies California's greenhouse gas emissions pricing framework by requiring the State Air Resources Board to incorporate the U.S. Environmental Protection Agency's November 2023 social cost metrics when setting allowance price ceilings.

    The bill amends the California Global Warming Solutions Act's market-based compliance mechanisms, which currently authorize the board to establish price ceilings for emission allowances through 2030. Under existing law, the board must consider various factors in setting these ceilings, including potential economic impacts, auction reserve prices, and the general social cost of greenhouse gas emissions. The new requirement specifies that the board must use the EPA's November 2023 determination of these social costs rather than developing its own metrics.

    This change affects the broader emissions trading system that requires covered entities to obtain allowances for their greenhouse gas emissions. The system includes price containment points below the ceiling and allows entities to meet a portion of their obligations through offset credits - up to 4% through 2025 and 6% from 2026-2030. When allowance reserves are depleted, the board can offer additional allowances at the ceiling price, with proceeds funding verified emissions reductions elsewhere. The amended provisions remain in effect until January 1, 2031.

    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (5/27/2025)

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Environmental Quality
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Environmental Quality
    Hearing has not been scheduled yet
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1207 Irwin Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass
    Assembly Natural Resources Hearing
    Assembly Committee
    Assembly Natural Resources Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Introduced
    Assembly Floor
    Introduced
    Introduced. To print.

    Latest Voting History

    View History
    May 27, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    6021779PASS

    Contacts

    Profile
    Jacqui IrwinD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Melissa HurtadoD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Lena GonzalezD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Megan DahleR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 8 row(s) selected.
    Page 1 of 2
    Select All Legislators
    Profile
    Jacqui IrwinD
    Assemblymember
    Bill Author
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Profile
    Melissa HurtadoD
    Senator
    Committee Member
    Profile
    Lena GonzalezD
    Senator
    Committee Member
    Profile
    Megan DahleR
    Senator
    Committee Member
    Profile
    Catherine BlakespearD
    Senator
    Committee Member
    Profile
    Caroline MenjivarD
    Senator
    Committee Member
    Profile
    Sasha Renee PerezD
    Senator
    Committee Member

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    AB-513
    California Global Warming Solutions Act of 2006: scoping plan.
    February 2025
    Introduced
    View Bill
    AB-491
    California Global Warming Solutions Act of 2006: climate goals: natural and working lands.
    February 2025
    Introduced
    View Bill
    ABX-113
    California Global Warming Solutions Act of 2006: scoping plan.
    January 2025
    Failed
    View Bill
    AB-1159
    California Global Warming Solutions Act of 2006: natural and working lands: market-based compliance mechanisms.
    February 2023
    Passed
    View Bill
    AB-397
    California Global Warming Solutions Act of 2006: scoping plan.
    February 2023
    Failed
    View Bill
    AB-9
    Greenhouse gases: market-based compliance mechanism.
    December 2022
    Failed
    View Bill
    SB-12
    California Global Warming Solutions Act of 2006: emissions limit.
    December 2022
    Failed
    View Bill
    Greenhouse gases: market-based compliance mechanism.
    February 2022
    Failed
    View Bill
    greenhouse gases: market-based compliance mechanism.
    February 2022
    Failed
    View Bill
    Scoping plan: state agency, board, and department compliance and implementation: reports.
    February 2022
    Failed
    View Bill
    Showing 10 of 55 items
    Page 1 of 6