AB 35: Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024: Administrative Procedure Act: exemption: program guidelines and selection criteria.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-07-16
Current Status:
Passed
(2026-07-16: Chaptered by Secretary of State - Chapter 89, Statutes of 2026.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
Existing law, the Administrative Procedure Act, sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies.
The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (act), approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, authorized the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs.
Existing law authorizes certain regulations needed to effectuate or implement programs of the act to be adopted as emergency regulations in accordance with the Administrative Procedure Act, as provided. Existing law requires the emergency regulations to be filed with the Office of Administrative Law and requires the emergency regulations to remain in effect until repealed or amended by the adopting state agency.
This bill, notwithstanding the above, would exempt the adoption of regulations for purposes of developing and adopting program guidelines and selection criteria needed to effectuate or implement programs of the act from the requirements of the Administrative Procedure Act, as provided. The bill would require a state entity that receives funding to administer a competitive grant program established using the Administrative Procedure Act exemption to do certain things, including, among other things, to develop draft project solicitation and evaluation guidelines, to transmit copies of the draft guidelines to the fiscal committees and to the appropriate policy committees of the Legislature, to hold a noticed public meeting on the draft guidelines, and to submit the final guidelines to the Secretary of the Natural Resources Agency, except as provided. The bill would require the Secretary of the Natural Resources Agency to post an electronic form of the guidelines submitted by a state entity and the subsequent verifications on the Natural Resources Agencys internet website. The bill would authorize the use of certain previously developed program guidelines and selection criteria for these purposes, as provided.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law, the Administrative Procedure Act, sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies.
The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (act), approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, authorized the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs.
Existing law authorizes certain regulations needed to effectuate or implement programs of the act to be adopted as emergency regulations in accordance with the Administrative Procedure Act, as provided. Existing law requires the emergency regulations to be filed with the Office of Administrative Law and requires the emergency regulations to remain in effect until repealed or amended by the adopting state agency.
This bill, notwithstanding the above, would exempt the adoption of regulations for purposes of developing and adopting program guidelines and selection criteria needed to effectuate or implement programs of the act from the requirements of the Administrative Procedure Act, as provided. The bill would require a state entity that receives funding to administer a competitive grant program established using the Administrative Procedure Act exemption to do certain things, including, among other things, to develop draft project solicitation and evaluation guidelines, to transmit copies of the draft guidelines to the fiscal committees and to the appropriate policy committees of the Legislature, to hold a noticed public meeting on the draft guidelines, and to submit the final guidelines to the Secretary of the Natural Resources Agency, except as provided. The bill would require the Secretary of the Natural Resources Agency to post an electronic form of the guidelines submitted by a state entity and the subsequent verifications on the Natural Resources Agencys internet website. The bill would authorize the use of certain previously developed program guidelines and selection criteria for these purposes, as provided.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law, the Administrative Procedure Act, sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies.
The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (act), approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, authorized the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs.
Existing law authorizes certain regulations needed to effectuate or implement programs of the act to be adopted as emergency regulations in accordance with the Administrative Procedure Act, as provided. Existing law requires the emergency regulations to be filed with the Office of Administrative Law and requires the emergency regulations to remain in effect until repealed or amended by the adopting state agency.
This bill, notwithstanding the above, would exempt the adoption of regulations needed to effectuate or implement programs of the act from the requirements of the Administrative Procedure Act, as provided. The bill would require a state entity that receives funding to administer a competitive grant program established using the Administrative Procedure Act exemption to do certain things, including including, among other things, to develop draft project solicitation and evaluation guidelines guidelines, to transmit copies of those guidelines to the fiscal committees and to the appropriate policy committees of the Legislature, to hold a noticed public meeting on those guidelines, and to submit those guidelines to the Secretary of the Natural Resources Agency, except as provided. The bill would require the Secretary of the Natural Resources Agency to post an electronic form of the guidelines submitted by a state entity and the subsequent verifications on the Natural Resources Agencys internet website. The bill would authorize the use of certain previously developed program guidelines and selection criteria for these purposes, as provided.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law, the Administrative Procedure Act, sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies.
The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (act), approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, authorized the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs.
Existing law authorizes certain regulations needed to effectuate or implement programs of the act to be adopted as emergency regulations in accordance with the Administrative Procedure Act, as provided. Existing law requires the emergency regulations to be filed with the Office of Administrative Law and requires the emergency regulations to remain in effect until repealed or amended by the adopting state agency.
This bill would delete the above provisions relating to the adoption of regulations to implement the act as emergency regulations and would instead exempt the adoption of those regulations from the Administrative Procedure Act.This bill, notwithstanding the above, would exempt the adoption of regulations needed to effectuate or implement programs of the act from the requirements of the Administrative Procedure Act, as provided. The bill would require a state entity that receives funding to administer a competitive grant program established using the Administrative Procedure Act exemption to do certain things, including develop draft project solicitation and evaluation guidelines and to submit those guidelines to the Secretary of the Natural Resources Agency, except as provided. The bill would require the Secretary of the Natural Resources Agency to post an electronic form of the guidelines submitted by a state entity and the subsequent verifications on the Natural Resources Agencys internet website. The bill would authorize the use of certain previously developed program guidelines and selection criteria for these purposes, as provided.
This bill would declare that it is to take effect immediately as an urgency statute.
Existing law, the Administrative Procedure Act, sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies.
The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (act), approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, authorized the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs.
Existing law authorizes certain regulations needed to effectuate or implement programs of the act to be adopted as emergency regulations in accordance with the Administrative Procedure Act, as provided. Existing law requires the emergency regulations to be filed with the Office of Administrative Law and requires the emergency regulations to remain in effect until repealed or amended by the adopting state agency.
This bill would delete the above provisions relating to the adoption of regulations to implement the act as emergency regulations and would instead exempt the adoption of those regulations from the Administrative Procedure Act.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.This bill would provide for limited CEQA review of an application for a discretionary permit or authorization for a clean hydrogen transportation project, as defined, by requiring the application to be reviewed through a clean hydrogen environmental assessment, unless otherwise requested by the applicant, as prescribed. The bill would, except as provided, require the lead agency to determine whether to approve the clean hydrogen environmental assessment and issue a discretionary permit or authorization for the project no later than 270 days after the application for the project is deemed complete. By imposing new duties on a lead agency, this bill would create a state-mandated local program. The bill would repeal these provisions on January 1, 2036.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
This bill would provide for limited CEQA review of an application for a discretionary permit or authorization for a clean hydrogen transportation project, as defined, by requiring the application to be reviewed through a clean hydrogen environmental assessment, unless otherwise requested by the applicant, as prescribed. The bill would, except as provided, require the lead agency to determine whether to approve the clean hydrogen environmental assessment and issue a discretionary permit or authorization for the project no later than 270 days after the application for the project is deemed complete. The bill would require an action or proceeding brought to attack, review, set aside, void, or annul the approval of a clean hydrogen environmental assessment or the issuance of a discretionary permit or authorization for a clean hydrogen transportation project, including any potential appeals to the court of appeal or the Supreme Court, to be resolved, to the extent feasible, within 270 days of the filing of the certified record of proceedings with the court. By imposing new duties on a lead agency, this bill would create a state-mandated local program. The bill would repeal these provisions on January 1, 2036.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
This bill would provide for limited CEQA review of an application for a discretionary permit or authorization for a clean hydrogen transportation project, as defined, by requiring the application to be reviewed through a clean hydrogen environmental assessment, unless otherwise requested by the applicant, as prescribed. The bill would, except as provided, require the lead agency to determine whether to approve the clean hydrogen environmental assessment and issue a discretionary permit or authorization for the project no later than 270 days after the application for the project is deemed complete. The bill would require an action or proceeding brought to attack, review, set aside, void, or annul the approval of a clean hydrogen environmental assessment or the issuance of a discretionary permit or authorization for a clean hydrogen transportation project, including any potential appeals to the court of appeal or the Supreme Court, to be resolved, to the extent feasible, within 270 days of the filing of the certified record of proceedings with the court. By imposing new duties on a lead agency, this bill would create a state-mandated local program. The bill would repeal these provisions on January 1, 2036.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(a)The Secretary of the Natural Resources Agency shall publish a list of all program and project expenditures pursuant to this division not less than annually, in written form, and shall post an electronic form of the list on the agencys internet website in a downloadable spreadsheet format. The spreadsheet shall include all of the following information:
(1)Information about the location and footprint of each funded project.
(2)The projects objectives.
(3)The status of the project.
(4)Anticipated outcomes.
(5)The public benefits to be derived from the project, including whether the project has meaningful and direct benefits to vulnerable populations, disadvantaged communities, or severely disadvantaged communities.
(6)The total cost of the project, if known.
(7)The amount of bond funding provided.
(8)Any matching moneys provided for the project by the grant recipient or other partners.
(9)The applicable chapter of this division pursuant to which the recipient received moneys.
(b)The Department of Finance shall provide for an independent audit of expenditures pursuant to this division. If an audit, required by law, of any entity that receives funding authorized by this division is conducted pursuant to state law and reveals any impropriety, the California State Auditor or the Controller may conduct or arrange for a full audit of any or all of the activities funded pursuant to this division. Any audit of a federal Department of Energy or National Aeronautics and Space Administration research and development center pursuant to this section shall be conducted in accordance with the Federal Laboratory Contracting Act (Chapter 7 (commencing with Section 12500) of Part 2 of Division 2 of the Public Contract Code).
(c)A state agency issuing any grant with funding authorized by this division shall require adequate reporting of the expenditures of the funding from the grant.
(d)The costs associated with the publications, audits, statewide bond tracking, cash management, and related oversight activities provided for in this section shall be funded from the proceeds of bonds authorized by this division. These costs shall be shared proportionally by each program funded by this division. Actual costs incurred to administer nongrant programs authorized by this division shall be paid from the proceeds of bonds authorized by this division.
(e)(1)A regulation for the purposes of developing and adopting program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division may be adopted as an emergency regulation in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare. A state agency shall be exempt from the requirement that it describe facts showing the need for immediate action.
(2)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, an emergency regulation adopted pursuant to this subdivision shall be filed with, but not be repealed by, the Office of Administrative Law, and shall remain in effect until repealed or amended by the adopting state agency.
(f)(1)Notwithstanding subdivision (e), a regulation for the purpose of developing and adopting program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division, may be adopted pursuant to this subdivision.
(2)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the development and adoption of program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division.
(3)Before disbursing grants pursuant to this division, a state entity that receives funding to administer a competitive grant program, established using the exemption pursuant to paragraph (2) of this subdivision, shall do all of the following:
(A)Develop draft project solicitation and evaluation guidelines.
(B)Transmit copies of the draft solicitation and evaluation guidelines to the fiscal committees and to the appropriate policy committees of the Legislature, publish the draft solicitation and evaluation guidelines on its internet website for a public comment period of at least 30 days, and hold a noticed public meeting on the draft solicitation and evaluation guidelines. All written public comments received shall be posted on the state entitys internet website, unless indicated otherwise by the person who provided the written public comment. The state entity shall respond in writing to each public comment.
(C)Offer opportunity for tribal consultation to impacted tribes.
(D)After completing the requirements contained in subparagraphs (A) to (C), inclusive, finalize project solicitation and evaluation guidelines.
(E)(i)Submit the final guidelines to the Secretary of the Natural Resources Agency. The Secretary of the Natural Resources Agency shall verify that the guidelines are consistent with applicable statutes and for all the purposes enumerated in this division. The Secretary of the Natural Resources Agency shall post an electronic form of the guidelines submitted by a state entity and the subsequent verifications on the Natural Resources Agencys internet website.
(ii)The requirement to submit final guidelines to the Secretary of the Natural Resources shall not apply to the State Water Resources Control Board.
(F)Upon adoption, transmit copies of the guidelines to the fiscal committees and the appropriate policy committees of the Legislature.
(4)Notwithstanding paragraph (3), if a state entity, before the effective date of the act adding this paragraph, developed and adopted project solicitation and evaluation guidelines that comply with the requirements of this division for a program described in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division, the use of those guidelines shall constitute compliance with the requirements of this subdivision.
(5)The requirements contained in this subdivision do not apply to the development and adoption of program guidelines and selection criteria needed to effectuate or implement any program that is funded by any appropriation made in the Budget Act of 2025, or in any bill identified in Section 39.00 of the Budget Act of 2025, from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund established pursuant to Section 90500.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
Climate change has intensified wildfire risk, drought conditions, and threats to safe and reliable drinking water, including impacts to farmland and agricultural communities. Immediate effect is necessary to prevent increased risks to public health and safety, and to allow state agencies to promptly administer and distribute funds appropriated pursuant to the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, consistent with voter intent, to support wildfire resilience, climate adaptation, protection of agricultural water resources, and access to safe drinking water.
(a)The Secretary of the Natural Resources Agency shall publish a list of all program and project expenditures pursuant to this division not less than annually, in written form, and shall post an electronic form of the list on the agencys internet website in a downloadable spreadsheet format. The spreadsheet shall include all of the following information:
(1)Information about the location and footprint of each funded project.
(2)The projects objectives.
(3)The status of the project.
(4)Anticipated outcomes.
(5)The public benefits to be derived from the project, including whether the project has meaningful and direct benefits to vulnerable populations, disadvantaged communities, or severely disadvantaged communities.
(6)The total cost of the project, if known.
(7)The amount of bond funding provided.
(8)Any matching moneys provided for the project by the grant recipient or other partners.
(9)The applicable chapter of this division pursuant to which the recipient received moneys.
(b)The Department of Finance shall provide for an independent audit of expenditures pursuant to this division. If an audit, required by law, of any entity that receives funding authorized by this division is conducted pursuant to state law and reveals any impropriety, the California State Auditor or the Controller may conduct or arrange for a full audit of any or all of the activities funded pursuant to this division. Any audit of a federal Department of Energy or National Aeronautics and Space Administration research and development center pursuant to this section shall be conducted in accordance with the Federal Laboratory Contracting Act (Chapter 7 (commencing with Section 12500) of Part 2 of Division 2 of the Public Contract Code).
(c)A state agency issuing any grant with funding authorized by this division shall require adequate reporting of the expenditures of the funding from the grant.
(d)The costs associated with the publications, audits, statewide bond tracking, cash management, and related oversight activities provided for in this section shall be funded from the proceeds of bonds authorized by this division. These costs shall be shared proportionally by each program funded by this division. Actual costs incurred to administer nongrant programs authorized by this division shall be paid from the proceeds of bonds authorized by this division.
(e)(1)A regulation for the purposes of developing and adopting program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division may be adopted as an emergency regulation in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare. A state agency shall be exempt from the requirement that it describe facts showing the need for immediate action.
(2)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, an emergency regulation adopted pursuant to this subdivision shall be filed with, but not be repealed by, the Office of Administrative Law, and shall remain in effect until repealed or amended by the adopting state agency.
(f)(1)Notwithstanding subdivision (e), a regulation for the purpose of developing and adopting program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division, may be adopted pursuant to this subdivision.
(2)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the development and adoption of program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division.
(3)Before disbursing grants pursuant to this division, a state entity that receives funding to administer a competitive grant program, established using the exemption pursuant to paragraph (2) of this subdivision, shall do all of the following:
(A)Develop draft project solicitation and evaluation guidelines.
(B)Transmit copies of the draft solicitation and evaluation guidelines to the fiscal committees and to the appropriate policy committees of the Legislature, publish the draft solicitation and evaluation guidelines on its internet website for a public comment period of at least 30 days, and hold a noticed public meeting on the draft solicitation and evaluation guidelines. All written public comments received shall be posted on the state entitys internet website, unless indicated otherwise by the person who provided the written public comment. The state entity shall respond in writing to each public comment.
(C)Offer opportunity for tribal consultation to impacted tribes.
(D)After completing the requirements contained in subparagraphs (A) to (C), inclusive, finalize project solicitation and evaluation guidelines.
(E)(i)Submit the final guidelines to the Secretary of the Natural Resources Agency. The Secretary of the Natural Resources Agency shall verify that the guidelines are consistent with applicable statutes and for all the purposes enumerated in this division. The Secretary of the Natural Resources Agency shall post an electronic form of the guidelines submitted by a state entity and the subsequent verifications on the Natural Resources Agencys internet website.
(ii)The requirement to submit final guidelines to the Secretary of the Natural Resources shall not apply to the State Water Resources Control Board.
(F)Upon adoption, transmit copies of the guidelines to the fiscal committees and the appropriate policy committees of the Legislature.
(4)Notwithstanding paragraph (3), if a state entity, before the effective date of the act adding this paragraph, developed and adopted project solicitation and evaluation guidelines that comply with the requirements of this division for a program described in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division, the use of those guidelines shall constitute compliance with the requirements of this subdivision.
(5)The requirements contained in this subdivision do not apply to the development and adoption of program guidelines and selection criteria needed to effectuate or implement any program that is funded by any appropriation made in the Budget Act of 2025, or in any bill identified in Section 39.00 of the Budget Act of 2025, from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund established pursuant to Section 90500.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
Climate change has intensified wildfire risk, drought conditions, and threats to safe and reliable drinking water, including impacts to farmland and agricultural communities. Immediate effect is necessary to prevent increased risks to public health and safety, and to allow state agencies to promptly administer and distribute funds appropriated pursuant to the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, consistent with voter intent, to support wildfire resilience, climate adaptation, protection of agricultural water resources, and access to safe drinking water.
(a)The Secretary of the Natural Resources Agency shall publish a list of all program and project expenditures pursuant to this division not less than annually, in written form, and shall post an electronic form of the list on the agencys internet website in a downloadable spreadsheet format. The spreadsheet shall include all of the following information:
(1)Information about the location and footprint of each funded project.
(2)The projects objectives.
(3)The status of the project.
(4)Anticipated outcomes.
(5)The public benefits to be derived from the project, including whether the project has meaningful and direct benefits to vulnerable populations, disadvantaged communities, or severely disadvantaged communities.
(6)The total cost of the project, if known.
(7)The amount of bond funding provided.
(8)Any matching moneys provided for the project by the grant recipient or other partners.
(9)The applicable chapter of this division pursuant to which the recipient received moneys.
(b)The Department of Finance shall provide for an independent audit of expenditures pursuant to this division. If an audit, required by law, of any entity that receives funding authorized by this division is conducted pursuant to state law and reveals any impropriety, the California State Auditor or the Controller may conduct or arrange for a full audit of any or all of the activities funded pursuant to this division. Any audit of a federal Department of Energy or National Aeronautics and Space Administration research and development center pursuant to this section shall be conducted in accordance with the Federal Laboratory Contracting Act (Chapter 7 (commencing with Section 12500) of Part 2 of Division 2 of the Public Contract Code).
(c)A state agency issuing any grant with funding authorized by this division shall require adequate reporting of the expenditures of the funding from the grant.
(d)The costs associated with the publications, audits, statewide bond tracking, cash management, and related oversight activities provided for in this section shall be funded from the proceeds of bonds authorized by this division. These costs shall be shared proportionally by each program funded by this division. Actual costs incurred to administer nongrant programs authorized by this division shall be paid from the proceeds of bonds authorized by this division.
(e)(1)A regulation for the purposes of developing and adopting program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division may be adopted as an emergency regulation in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare. A state agency shall be exempt from the requirement that it describe facts showing the need for immediate action.
(2)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, an emergency regulation adopted pursuant to this subdivision shall be filed with, but not be repealed by, the Office of Administrative Law, and shall remain in effect until repealed or amended by the adopting state agency.
(f)(1)Notwithstanding subdivision (e), a regulation for the purpose of developing and adopting program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division, may be adopted pursuant to this subdivision.
(2)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the development and adoption of program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division.
(3)Before disbursing grants pursuant to this division, a state entity that receives funding to administer a competitive grant program, established using the exemption pursuant to paragraph (2) of this subdivision, shall do all of the following:
(A)Develop draft project solicitation and evaluation guidelines.
(B)Publish Transmit copies of the draft solicitation and evaluation guidelines to the fiscal committees and to the appropriate policy committees of the Legislature, publish the draft solicitation and evaluation guidelines on its internet website for a public comment period of at least 30 days. days, and hold a noticed public meeting on the draft solicitation and evaluation guidelines. All written public comments received shall be posted on the state entitys internet website, unless indicated otherwise by the person who provided the written public comment. The state entity shall respond in writing to each public comment.
(C)Offer opportunity for tribal consultation to impacted tribes.
(D)After completing the requirements contained in subparagraphs (A) to (C), inclusive, finalize project solicitation and evaluation guidelines.
(E)(i)Submit the final guidelines to the Secretary of the Natural Resources Agency. The Secretary of the Natural Resources Agency shall verify that the guidelines are consistent with applicable statutes and for all the purposes enumerated in this division. The Secretary of the Natural Resources Agency shall post an electronic form of the guidelines submitted by a state entity and the subsequent verifications on the Natural Resources Agencys internet website.
(ii)The requirement to submit final guidelines to the Secretary of the Natural Resources shall not apply to the State Water Resources Control Board.
(F)Upon adoption, transmit copies of the guidelines to the fiscal committees and the appropriate policy committees of the Legislature.
(4)Notwithstanding paragraph (3), if a state entity, before the effective date of the act adding this paragraph, developed and adopted project solicitation and evaluation guidelines that comply with the requirements of this division for a program described in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division, the use of those guidelines shall constitute compliance with the requirements of this subdivision.
(5)The requirements contained in this subdivision do not apply to the development and adoption of program guidelines and selection criteria needed to effectuate or implement any program that is funded by any appropriation made in the Budget Act of 2025, or in any bill identified in Section 39.00 of the Budget Act of 2025, from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund established pursuant to Section 90500.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
Climate change has intensified wildfire risk, drought conditions, and threats to safe and reliable drinking water, including impacts to farmland and agricultural communities. Immediate effect is necessary to prevent increased risks to public health and safety, and to allow state agencies to promptly administer and distribute funds appropriated pursuant to the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, consistent with voter intent, to support wildfire resilience, climate adaptation, protection of agricultural water resources, and access to safe drinking water.
(a)The Secretary of the Natural Resources Agency shall publish a list of all program and project expenditures pursuant to this division not less than annually, in written form, and shall post an electronic form of the list on the agencys internet website in a downloadable spreadsheet format. The spreadsheet shall include all of the following information:
(1)Information about the location and footprint of each funded project.
(2)The projects objectives.
(3)The status of the project.
(4)Anticipated outcomes.
(5)The public benefits to be derived from the project, including whether the project has meaningful and direct benefits to vulnerable populations, disadvantaged communities, or severely disadvantaged communities.
(6)The total cost of the project, if known.
(7)The amount of bond funding provided.
(8)Any matching moneys provided for the project by the grant recipient or other partners.
(9)The applicable chapter of this division pursuant to which the recipient received moneys.
(b)The Department of Finance shall provide for an independent audit of expenditures pursuant to this division. If an audit, required by law, of any entity that receives funding authorized by this division is conducted pursuant to state law and reveals any impropriety, the California State Auditor or the Controller may conduct or arrange for a full audit of any or all of the activities funded pursuant to this division. Any audit of a federal Department of Energy or National Aeronautics and Space Administration research and development center pursuant to this section shall be conducted in accordance with the Federal Laboratory Contracting Act (Chapter 7 (commencing with Section 12500) of Part 2 of Division 2 of the Public Contract Code).
(c)A state agency issuing any grant with funding authorized by this division shall require adequate reporting of the expenditures of the funding from the grant.
(d)The costs associated with the publications, audits, statewide bond tracking, cash management, and related oversight activities provided for in this section shall be funded from the proceeds of bonds authorized by this division. These costs shall be shared proportionally by each program funded by this division. Actual costs incurred to administer nongrant programs authorized by this division shall be paid from the proceeds of bonds authorized by this division.
(e)(1)A regulation for the purposes of developing and adopting program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division may be adopted as an emergency regulation in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare. A state agency shall be exempt from the requirement that it describe facts showing the need for immediate action.
(2)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, an emergency regulation adopted pursuant to this subdivision shall be filed with, but not be repealed by, the Office of Administrative Law, and shall remain in effect until repealed or amended by the adopting state agency.
(f)(1)Notwithstanding subdivision (e), a regulation for the purpose of developing and adopting program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division, may be adopted pursuant to this subdivision.
(e)(2)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the development and adoption of program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9, 9 (commencing with Section 94500), inclusive, of this division.
(3)Before disbursing grants pursuant to this division, a state entity that receives funding to administer a competitive grant program, established using the exemption pursuant to this subdivision, shall do all of the following:
(A)Develop draft project solicitation and evaluation guidelines.
(B)Publish the draft solicitation and evaluation guidelines on its internet website for a public comment period of at least 30 days. All written public comments received shall be posted on the state entitys internet website, unless indicated otherwise by the person who provided the written public comment. The state entity shall respond to each public comment.
(C)Offer opportunity for tribal consultation to impacted tribes.
(D)After completing the requirements contained in subparagraphs (A) to (C), inclusive, finalize project solicitation and evaluation guidelines.
(E)(i)Submit the final guidelines to the Secretary of the Natural Resources Agency. The Secretary of the Natural Resources Agency shall verify that the guidelines are consistent with applicable statutes and for all the purposes enumerated in this division. The Secretary of the Natural Resources Agency shall post an electronic form of the guidelines submitted by a state entity and the subsequent verifications on the Natural Resources Agencys internet website.
(ii)The requirement to submit final guidelines to the Secretary of the Natural Resources shall not apply to the State Water Resources Control Board.
(4)Notwithstanding paragraph (3), if a state entity, before the effective date of the act adding this paragraph, developed and adopted project solicitation and evaluation guidelines that comply with the requirements of this division for a program described in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division, the use of those guidelines shall constitute compliance with the requirements of this subdivision.
SEC. 2.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
Climate change has intensified wildfire risk, drought conditions, and threats to safe and reliable drinking water, including impacts to farmland and agricultural communities. Immediate effect is necessary to prevent increased risks to public health and safety, and to allow state agencies to promptly administer and distribute funds appropriated pursuant to the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, consistent with voter intent, to support wildfire resilience, climate adaptation, protection of agricultural water resources, and access to safe drinking water.
(a)The Secretary of the Natural Resources Agency shall publish a list of all program and project expenditures pursuant to this division not less than annually, in written form, and shall post an electronic form of the list on the agencys internet website in a downloadable spreadsheet format. The spreadsheet shall include all of the following information:
(1)Information about the location and footprint of each funded project.
(2)The projects objectives.
(3)The status of the project.
(4)Anticipated outcomes.
(5)The public benefits to be derived from the project, including whether the project has meaningful and direct benefits to vulnerable populations, disadvantaged communities, or severely disadvantaged communities.
(6)The total cost of the project, if known.
(7)The amount of bond funding provided.
(8)Any matching moneys provided for the project by the grant recipient or other partners.
(9)The applicable chapter of this division pursuant to which the recipient received moneys.
(b)The Department of Finance shall provide for an independent audit of expenditures pursuant to this division. If an audit, required by law, of any entity that receives funding authorized by this division is conducted pursuant to state law and reveals any impropriety, the California State Auditor or the Controller may conduct or arrange for a full audit of any or all of the activities funded pursuant to this division. Any audit of a federal Department of Energy or National Aeronautics and Space Administration research and development center pursuant to this section shall be conducted in accordance with the Federal Laboratory Contracting Act (Chapter 7 (commencing with Section 12500) of Part 2 of Division 2 of the Public Contract Code).
(c)A state agency issuing any grant with funding authorized by this division shall require adequate reporting of the expenditures of the funding from the grant.
(d)The costs associated with the publications, audits, statewide bond tracking, cash management, and related oversight activities provided for in this section shall be funded from the proceeds of bonds authorized by this division. These costs shall be shared proportionally by each program funded by this division. Actual costs incurred to administer nongrant programs authorized by this division shall be paid from the proceeds of bonds authorized by this division.
(e)(1)A regulation for the purpose of developing and adopting program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 (commencing with Section 91000) to Chapter 9 (commencing with Section 94500), inclusive, of this division may be adopted as an emergency regulation in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare, and a state agency is hereby exempted from the requirement that it describe facts showing the need for immediate action.(2)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, an emergency regulation adopted pursuant to this subdivision shall be filed with, but not be repealed by, the Office of Administrative Law, and shall remain in effect until repealed or amended by the adopting state agency.(e)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the development and adoption of program guidelines and selection criteria needed to effectuate or implement the programs included in Chapter 2 to Chapter 9, inclusive, of this division.
SECTION 1.Chapter 5.2 (commencing with Section 21162) is added to Division 13 of the Public Resources Code, to read:5.2.Clean Hydrogen Transportation Projects21162.For purposes of this chapter, clean hydrogen transportation project means a pipeline project composed of a system that transports hydrogen, and any associated facilities necessary for the systems operation, that meets all of the following criteria:(a)The project or a component of the project has been included in an Alliance for Renewable Clean Hydrogen Energy Systems hydrogen hub application to the United States Department of Energy.(b)The transported hydrogen does not use fossil fuel as the feedstock or energy source for its production.(c)The project meets the labor and workforce requirements described in Sections 25545.3.3 and 25545.3.5.(d)The project will result in the minimum investment required of an environmental leadership development project pursuant to subdivision (a) of Section 21183.(e)The project will meet the greenhouse gas reduction requirements applicable to an environmental leadership development project described in subdivision (c) of Section 21183. For purposes of this section, reductions in emissions of greenhouse gases by users of the clean hydrogen transported by the project shall be accounted for in calculating whether the project will lead to reductions in emissions of greenhouse gases.(f)The project will lead to operational reductions in the emissions of oxides of nitrogen, including reductions caused by the replacement of fuels used by end users with clean hydrogen transported by the project.(g)For linear projects, 25 percent or more of the linear infrastructure will be constructed within a previously disturbed corridor.(h)The project applicant has entered into the agreement required of an environmental leadership development project pursuant to subdivision (e) of Section 21183.21162.1.(a)Within 30 days of the submission of the application for a discretionary permit or authorization for a clean hydrogen transportation project, the lead agency shall review the application and make a determination of completeness.(b)The lead agency may require the applicant to submit additional information, documents, or data deemed reasonably necessary to prepare the clean hydrogen environmental assessment for the application and to make a decision on the application. The lead agency shall also require the applicant to submit additional information requested by trustee agencies for the purposes of supporting a decision on the application and the clean hydrogen environmental assessment. The lead agency shall transmit the request for additional information within 30 days of the submission of the application.(c)An application is deemed to be complete when either of the following occurs:(1)Thirty days after the submission of the application, if the lead agency does not require the submission of additional information pursuant to subdivision (b).(2)Immediately upon acceptance of the additional information requested by the lead agency pursuant to subdivision (b), if the lead agency requires the submission of additional information pursuant to subdivision (b).(d)The lead agency may request additional information from the applicant to address comments by public agencies on the scope and content of the information required to be included in a clean hydrogen environmental assessment for a discretionary permit or authorization. The applicant shall provide the requested information to the lead agency within 30 days of receiving the request.(e)(1)Except as provided in paragraph (2), no later than 270 days after the application is deemed complete, or as soon as practicable thereafter, the lead agency shall determine whether to approve the clean hydrogen environmental assessment pursuant to Section 21162.2 and to issue a discretionary permit or authorization for the clean hydrogen transportation project.(2)Paragraph (1) does not apply, and the time to approve the clean hydrogen environmental assessment pursuant to Section 21162.2 or issue a discretionary permit or authorization for the clean hydrogen transportation project may be extended if one or more of the following occurs:(A)Substantial changes are proposed in the project that may involve new significant environmental effects or a substantial increase in the severity of previously identified significant effects.(B)Substantial changes occur with respect to the circumstances under which the clean hydrogen transportation project is undertaken that may involve new significant environmental effects or a substantial increase in the severity of previously identified significant effects.(C)New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence before the lead agency publishes the draft of the clean hydrogen environmental assessment pursuant to Section 21162.2, is submitted that may require additional analysis and consideration.(D)The lead agency, in consultation with the Department of Fish and Wildlife or the State Water Resources Control Board, if applicable, determines that additional time is necessary to obtain information and conduct surveys, including due to seasonal constraints.(f)Responsible agencies shall take final action on the clean hydrogen transportation project within 90 days after the approval by the lead agency of the clean hydrogen environmental assessment for the clean hydrogen transportation project if the applicant has filed a complete, final application for a permit or authorization, as applicable, with those agencies before the approval of the clean hydrogen environmental assessment.21162.2.Notwithstanding any other provision of this division, an application for a discretionary permit or authorization for a clean hydrogen transportation project shall be reviewed through a clean hydrogen environmental assessment, unless otherwise requested by the applicant, as follows:(a)An initial study shall be prepared to identify all significant or potentially significant impacts of the clean hydrogen transportation project. A clean hydrogen transportation projects potential cumulative effects shall not be treated as cumulatively considerable for purposes of this subdivision and do not need to be analyzed.(b)The clean hydrogen environmental assessment is not required to analyze alternatives.(c)The clean hydrogen environmental assessment shall contain measures that, to the extent feasible, either avoid or mitigate to a level of insignificance potentially significant or significant effects of the project required to be identified in the initial study.(d)The clean hydrogen environmental assessment shall include an environmental justice assessment that identifies where potential significant or disproportionate impacts exist and suggests strategies, designs, or actions to mitigate those impacts.(e)A draft of the clean hydrogen environmental assessment shall be circulated for public comment for a period of not less than 30 days. Notice shall be provided in the same manner as required for an environmental impact report pursuant to Section 21092.(f)Before acting on the clean hydrogen environmental assessment, the lead agency shall consider all comments received.(g)A clean hydrogen environmental assessment may be approved by the lead agency after conducting a public hearing, reviewing the comments received, and finding both of the following:(1)All potentially significant or significant effects required to be identified in the initial study have been identified and analyzed.(2)With respect to each significant effect on the environment required to be identified in the initial study, any of the following apply:(A)Changes or alterations have been required in or incorporated into the project that avoid or mitigate the significant effects to a level of insignificance.(B)Those changes or alterations are within the responsibility and jurisdiction of another public agency and have been, or can and should be, adopted by that other agency.(C)Specific economic, legal, social, technological, or other considerations, including provision of employment opportunities for highly trained workers, make infeasible the mitigation measures identified in the clean hydrogen environmental assessment.(h)The lead agencys decision to approve a clean hydrogen environmental assessment and issue a discretionary permit or authorization to a clean hydrogen transportation project shall be reviewed under the substantial evidence standard.21162.3.This chapter shall remain in effect only until January 1, 2036, and as of that date is repealed.SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.For purposes of this chapter, clean hydrogen transportation project means a pipeline project composed of a system that transports hydrogen, and any associated facilities necessary for the systems operation, that meets all of the following criteria:
(a)The project has received funding from the state or federal government on or before January 1, 2032, or or a component of the project has been included in an Alliance for Renewable Clean Hydrogen Energy Systems hydrogen hub application to the United States Department of Energy.
(b)The transported hydrogen does not use fossil fuel as the feedstock or energy source for its production.
(c)The project meets the labor and workforce requirements described in Sections 25545.3.3 and 25545.3.5.
(d)The project will result in the minimum investment required of an environmental leadership development project pursuant to subdivision (a) of Section 21183.
(e)The project will meet the greenhouse gas reduction requirements applicable to an environmental leadership development project described in subdivision (c) of Section 21183. For purposes of this section, reductions in emissions of greenhouse gases by users of the clean hydrogen transported by the project shall be accounted for in calculating whether the project will lead to reductions in emissions of greenhouse gases.
(f)The project will lead to operational reductions in the emissions of criteria pollutants, oxides of nitrogen, including reductions generated by users of the caused by the replacement of fuels used by end users with clean hydrogen transported by the project.
(g)For linear projects, 25 percent or more of the linear infrastructure will be constructed within a previously disturbed corridor.
(h)The project applicant has entered into the agreement required of an environmental leadership development project pursuant to subdivision (e) of Section 21183.
21162.1.(a)Within 30 days of the submission of the application for a discretionary permit or authorization for a clean hydrogen transportation project, the lead agency shall review the application and make a determination of completeness.
(b)The lead agency may require the applicant to submit additional information, documents, or data deemed reasonably necessary to prepare the clean hydrogen environmental assessment for the application and to make a decision on the application. The lead agency shall also require the applicant to submit additional information requested by trustee agencies for the purposes of supporting a decision on the application and the clean hydrogen environmental assessment. The lead agency shall transmit the request for additional information within 30 days of the submission of the application.
(c)An application is deemed to be complete when either of the following occurs:
(1)Thirty days after the submission of the application, if the lead agency does not require the submission of additional information pursuant to subdivision (b).
(2)Immediately upon acceptance of the additional information requested by the lead agency pursuant to subdivision (b), if the lead agency requires the submission of additional information pursuant to subdivision (b).
(d)The lead agency may request additional information from the applicant to address comments by public agencies on the scope and content of the information required to be included in a clean hydrogen environmental assessment for a discretionary permit or authorization. The applicant shall provide the requested information to the lead agency within 30 days of receiving the request.
(e)(1)Except as provided in paragraph (2), no later than 270 days after the application is deemed complete, or as soon as practicable thereafter, the lead agency shall determine whether to approve the clean hydrogen environmental assessment pursuant to Section 21162.2 and to issue a discretionary permit or authorization for the clean hydrogen transportation project.
(2)Paragraph (1) does not apply, and the time to approve the clean hydrogen environmental assessment pursuant to Section 21162.2 or issue a discretionary permit or authorization for the clean hydrogen transportation project may be extended if one or more of the following occurs:
(A)Substantial changes are proposed in the project that may involve new significant environmental effects or a substantial increase in the severity of previously identified significant effects.
(B)Substantial changes occur with respect to the circumstances under which the clean hydrogen transportation project is undertaken that may involve new significant environmental effects or a substantial increase in the severity of previously identified significant effects.
(C)New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence before the lead agency publishes the draft of the clean hydrogen environmental assessment pursuant to Section 21162.2, is submitted that may require additional analysis and consideration.
(D)The lead agency, in consultation with the Department of Fish and Wildlife or the State Water Resources Control Board, if applicable, determines that additional time is necessary to obtain information and conduct surveys, including due to seasonal constraints.
(f)Responsible agencies shall take final action on the clean hydrogen transportation project within 90 days after the approval by the lead agency of the clean hydrogen environmental assessment for the clean hydrogen transportation project if the applicant has filed a complete, final application for a permit or authorization, as applicable, with those agencies before the approval of the clean hydrogen environmental assessment.
21162.2.Notwithstanding any other provision of this division, an application for a discretionary permit or authorization for a clean hydrogen transportation project shall be reviewed through a clean hydrogen environmental assessment, unless otherwise requested by the applicant, as follows:
(a)An initial study shall be prepared to identify all significant or potentially significant impacts of the clean hydrogen transportation project. A clean hydrogen transportation projects potential cumulative effects shall not be treated as cumulatively considerable for purposes of this subdivision and do not need to be analyzed.
(b)The clean hydrogen environmental assessment is not required to analyze alternatives.
(c)The clean hydrogen environmental assessment shall contain measures that, to the extent feasible, either avoid or mitigate to a level of insignificance potentially significant or significant effects of the project required to be identified in the initial study.
(d)The clean hydrogen environmental assessment shall include an environmental justice assessment that identifies where potential significant or disproportionate impacts exist and suggests strategies, designs, or actions to mitigate those impacts.
(e)A draft of the clean hydrogen environmental assessment shall be circulated for public comment for a period of not less than 30 days. Notice shall be provided in the same manner as required for an environmental impact report pursuant to Section 21092.
(f)Before acting on the clean hydrogen environmental assessment, the lead agency shall consider all comments received.
(g)A clean hydrogen environmental assessment may be approved by the lead agency after conducting a public hearing, reviewing the comments received, and finding both of the following:
(1)All potentially significant or significant effects required to be identified in the initial study have been identified and analyzed.
(2)With respect to each significant effect on the environment required to be identified in the initial study, either any of the following apply:
(A)Changes or alterations have been required in or incorporated into the project that avoid or mitigate the significant effects to a level of insignificance.
(B)Those changes or alterations are within the responsibility and jurisdiction of another public agency and have been, or can and should be, adopted by that other agency.
(C)Specific economic, legal, social, technological, or other considerations, including provision of employment opportunities for highly trained workers, make infeasible the mitigation measures identified in the clean hydrogen environmental assessment.
(h)The lead agencys decision to approve a clean hydrogen environmental assessment and issue a discretionary permit or authorization to a clean hydrogen transportation project shall be reviewed under the substantial evidence standard.
21162.3.If a lead agency fails to comply with the timeframes provided in Section 21162.1, the lead agency shall be deemed to have fulfilled the requirements of this division with respect to the approval of the clean hydrogen environmental assessment.21162.4.(a)An action or proceeding brought to attack, review, set aside, void, or annul the approval of a clean hydrogen environmental assessment or the issuance of a discretionary permit or authorization for a clean hydrogen transportation project, including any potential appeals to the court of appeal or the Supreme Court, shall be resolved, to the extent feasible, within 270 days of the filing of the certified record of proceedings with the court.(b)On or before December 31, 2026, the Judicial Council shall adopt a rule of court to implement this section.21162.5.21162.3.This chapter shall remain in effect only until January 1, 2036, and as of that date is repealed.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
For purposes of this chapter, clean hydrogen transportation project means a pipeline project composed of a system that transports hydrogen, and any associated facilities necessary for the systems operation, that meets all of the following criteria:
(a)The project has received funding from the state or federal government on or before January 1, 2032, or has been included in an Alliance for Renewable Clean Hydrogen Energy Systems hydrogen hub application to the United States Department of Energy.
(b)The transported hydrogen does not use fossil fuel as the feedstock or energy source for its production.
(c)The project meets the labor and workforce requirements described in Sections 25545.3.3 and 25545.3.5.
(d)The project will result in the minimum investment required of an environmental leadership development project pursuant to subdivision (a) of Section 21183.
(e)The project will meet the greenhouse gas reduction requirements applicable to an environmental leadership development project described in subdivision (c) of Section 21183. For purposes of this section, reductions in emissions of greenhouse gases by users of the clean hydrogen transported by the project shall be accounted for in calculating whether the project will lead to reductions in emissions of greenhouse gases.
(f)The project will lead to operational reductions in the emissions of criteria pollutants, including reductions generated by users of the clean hydrogen transported by the project.
(g)For linear projects, 25 percent or more of the linear infrastructure will be constructed within a previously disturbed corridor.
(h)The project applicant has entered into the agreement required of an environmental leadership development project pursuant to subdivision (e) of Section 21183.
21162.1.(a)Within 30 days of the submission of the application for a discretionary permit or authorization for a clean hydrogen transportation project, the lead agency shall review the application and make a determination of completeness.
(b)The lead agency may require the applicant to submit additional information, documents, or data deemed reasonably necessary to prepare the clean hydrogen environmental assessment for the application and to make a decision on the application. The lead agency shall also require the applicant to submit additional information requested by trustee agencies for the purposes of supporting a decision on the application and the clean hydrogen environmental assessment. The lead agency shall transmit the request for additional information within 30 days of the submission of the application.
(c)An application is deemed to be complete when either of the following occurs:
(1)Thirty days after the submission of the application, if the lead agency does not require the submission of additional information pursuant to subdivision (b).
(2)Immediately upon acceptance of the additional information requested by the lead agency pursuant to subdivision (b), if the lead agency requires the submission of additional information pursuant to subdivision (b).
(d)The lead agency may request additional information from the applicant to address comments by public agencies on the scope and content of the information required to be included in a clean hydrogen environmental assessment for a discretionary permit or authorization. The applicant shall provide the requested information to the lead agency within 30 days of receiving the request.
(e)(1)Except as provided in paragraph (2), no later than 270 days after the application is deemed complete, or as soon as practicable thereafter, the lead agency shall determine whether to approve the clean hydrogen environmental assessment pursuant to Section 21162.2 and to issue a discretionary permit or authorization for the clean hydrogen transportation project.
(2)Paragraph (1) does not apply, and the time to approve the clean hydrogen environmental assessment pursuant to Section 21162.2 or issue a discretionary permit or authorization for the clean hydrogen transportation project may be extended if one or more of the following occurs:
(A)Substantial changes are proposed in the project that may involve new significant environmental effects or a substantial increase in the severity of previously identified significant effects.
(B)Substantial changes occur with respect to the circumstances under which the clean hydrogen transportation project is undertaken that may involve new significant environmental effects or a substantial increase in the severity of previously identified significant effects.
(C)New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence before the lead agency publishes the draft of the clean hydrogen environmental assessment pursuant to Section 21162.2, is submitted that may require additional analysis and consideration.
(D)The lead agency, in consultation with the Department of Fish and Wildlife or the State Water Resources Control Board, if applicable, determines that additional time is necessary to obtain information and conduct surveys, including due to seasonal constraints.
(f)Responsible agencies shall take final action on the clean hydrogen transportation project within 90 days after the approval by the lead agency of the clean hydrogen environmental assessment for the clean hydrogen transportation project if the applicant has filed a complete, final application for a permit or authorization, as applicable, with those agencies before the approval of the clean hydrogen environmental assessment.
21162.2.Notwithstanding any other provision of this division, an application for a discretionary permit or authorization for a clean hydrogen transportation project shall be reviewed through a clean hydrogen environmental assessment, unless otherwise requested by the applicant, as follows:
(a)An initial study shall be prepared to identify all significant or potentially significant impacts of the clean hydrogen transportation project. A clean hydrogen transportation projects potential cumulative effects shall not be treated as cumulatively considerable for purposes of this subdivision and do not need to be analyzed.
(b)The clean hydrogen environmental assessment is not required to analyze alternatives.
(c)The clean hydrogen environmental assessment shall contain measures that, to the extent feasible, either avoid or mitigate to a level of insignificance potentially significant or significant effects of the project required to be identified in the initial study.
(d)The clean hydrogen environmental assessment shall include an environmental justice assessment that identifies where potential significant or disproportionate impacts exist and suggests strategies, designs, or actions to mitigate those impacts.
(e)A draft of the clean hydrogen environmental assessment shall be circulated for public comment for a period of not less than 30 days. Notice shall be provided in the same manner as required for an environmental impact report pursuant to Section 21092.
(f)Before acting on the clean hydrogen environmental assessment, the lead agency shall consider all comments received.
(g)A clean hydrogen environmental assessment may be approved by the lead agency after conducting a public hearing, reviewing the comments received, and finding both of the following:
(1)All potentially significant or significant effects required to be identified in the initial study have been identified and analyzed.
(2)With respect to each significant effect on the environment required to be identified in the initial study, either of the following apply:
(A)Changes or alterations have been required in or incorporated into the project that avoid or mitigate the significant effects to a level of insignificance.
(B)Those changes or alterations are within the responsibility and jurisdiction of another public agency and have been, or can and should be, adopted by that other agency.
(h)The lead agencys decision to approve a clean hydrogen environmental assessment and issue a discretionary permit or authorization to a clean hydrogen transportation project shall be reviewed under the substantial evidence standard.
21162.3.If a lead agency fails to comply with the timeframes provided in Section 21162.1, the lead agency shall be deemed to have fulfilled the requirements of this division with respect to the approval of the clean hydrogen environmental assessment.
21162.4.(a)An action or proceeding brought to attack, review, set aside, void, or annul the approval of a clean hydrogen environmental assessment or the issuance of a discretionary permit or authorization for a clean hydrogen transportation project, including any potential appeals to the court of appeal or the Supreme Court, shall be resolved, to the extent feasible, within 270 days of the filing of the certified record of proceedings with the court.
(b)On or before December 31, 2026, the Judicial Council shall adopt a rule of court to implement this section.
21162.5.This chapter shall remain in effect only until January 1, 2036, and as of that date is repealed.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
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Date
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Status
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|---|---|
| Jul 16, 2026 | Chaptered by Secretary of State - Chapter 89, Statutes of 2026. |
| Jul 16, 2026 | Approved by the Governor. |
| Jul 15, 2026 | Enrolled and presented to the Governor at 11:15 a.m. |
| Jul 2, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 68. Noes 0.). |
| Jul 2, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 68. Noes 0. Page 5983.). |
| Jun 25, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Jun 25, 2026 | Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 36. Noes 0.). |
| Jun 25, 2026 | Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 36. Noes 0. Page 5014.). |
| Jun 23, 2026 | Read second time. Ordered to Consent Calendar. |
| Jun 22, 2026 | From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar. |
| Jun 11, 2026 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 10, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (June 9). |
| May 6, 2026 | Referred to Com. on N.R. & W. |
| Jan 27, 2026 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jan 26, 2026 | Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 3826.). |
| Jan 22, 2026 | Read second time. Ordered to third reading. |
| Jan 22, 2026 | From committee: Do pass. (Ayes 15. Noes 0.) (January 22). |
| Jan 22, 2026 | Assembly Rule 63 suspended. (Page 3806.) |
| Jan 15, 2026 | Re-referred to Com. on APPR. |
| Jan 14, 2026 | Read second time and amended. |
| Jan 13, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (January 12). |
| Jan 6, 2026 | Re-referred to Com. on NAT. RES. |
| Jan 5, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
| Apr 22, 2025 | Re-referred to Com. on NAT. RES. |
| Apr 21, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
| Feb 18, 2025 | Referred to Coms. on NAT. RES. and JUD. |
| Dec 3, 2024 | From printer. May be heard in committee January 2. |
| Dec 2, 2024 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jul 2, 2026 | AB 35 Alvarez Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Jun 25, 2026 | Consent Calendar 2nd AB35 Alvarez et al. Urgency Clause | Senate Floor |
Passed |
|
| Jun 9, 2026 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Natural Resources and Water |
Passed |
|
| Jan 26, 2026 | AB 35 Alvarez Third Reading Urgency | Assembly Floor |
Passed |
|
| Jan 22, 2026 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jan 12, 2026 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Natural Resources |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Agricultural Institute of Marin | ** Support | |
| Alliance of Regional Collaboratives for Climate Adaptation | ** Support | |
| American Canyon Community & Parks Foundation | ** Support | |
| Associated General Contractors Of California | ** Support | |
| Association Of California Water Agencies | ** Support | |
| Audubon California | ** Support | |
| Bay Area Climate Adaptation Network | ** Support | |
| Bay Area Council | ** Support | |
| Bay Area Ridge Trail Council | ** Support | |
| Bay Planning Coalition | ** Support | |
| Bellflower Somerset Mutual Water Company | ** Support | |
| Big Sur Land Trust | ** Support | |
| Blue Forest | ** Support | |
| Bolsa Chica Land Trust | ** Support | |
| CalDesal | ** Support | |
| California Association Of Local Conservation Corps | ** Support | |
| California Association of Recreation and Parks Districts | ** Support | |
| California Association Of Resource Conservation Districts | ** Support | |
| California Association Of Sanitation Agencies | ** Support | |
| California Central Valley Flood Control Association | ** Support | |
| California Climate and Agriculture Network | ** Support | |
| California Council Of Land Trusts | ** Support | |
| California Fire Chiefs Association | ** Support | |
| California Fire Safe Councils | ** Support | |
| California Forestry Association | ** Support | |
| California Groundwater Coalition | ** Support | |
| California Habitat Conservation Planning Coalition | ** Support | |
| California Invasive Plant Council | ** Support | |
| California Local Conservation Corps Foundation | ** Support | |
| California Mountain Biking Coalition | ** Support | |
| California Municipal Utilities Association | ** Support | |
| California Outdoor Recreation Partnership | ** Support | |
| California State Association Of Counties | ** Support | |
| California State Parks Foundation | ** Support | |
| California Stormwater Quality Association | ** Support | |
| California Tahoe Alliance | ** Support | |
| California Water Association | ** Support | |
| California Water Efficiency Partnership | ** Support | |
| Calleguas Municipal Water District | ** Support | |
| Carbon Cycle Institute | ** Support | |
| Central Basin Water Association | ** Support | |
| Central California Environmental Justice Network | ** Support | |
| Central Coast Climate Collaborative | ** Support | |
| Cesar Chavez Environmental Corps | ** Support | |
| city of carlsbad | ** Support | |
| City Of Los Angeles | ** Support | |
| City of Moorpark | ** Support | |
| City of Rancho Cucamonga | ** Support | |
| City of Redwood City | ** Support | |
| City of Roseville | ** Support | |
| City Of Sacramento | ** Support | |
| City Of San Diego | ** Support | |
| City Of South Lake Tahoe | ** Support | |
| City of Thousand Oaks | ** Support | |
| Civicorps | ** Support | |
| Clean Water Action | ** Support | |
| Climate Resolve | ** Support | |
| Coachella Valley Association of Governments | ** Support | |
| Coachella Valley Conservation Commission | ** Support | |
| Coastal Corridor Alliance | ** Support | |
| Collaborate Action Program | ** Support | |
| Collaborative Action Program | ** Support | |
| Community Nature Connection | ** Support | |
| Community Water Center | ** Support | |
| Conservation Corps North Bay | ** Support | |
| Conservation Corps of Long Beach | ** Support | |
| County of El Dorado | ** Support | |
| County of Marin | ** Support | |
| County of Monterey | ** Support | |
| County of Nevada | ** Support | |
| County of Orange | ** Support | |
| County Of Placer | ** Support | |
| County of Riverside | ** Support | |
| County of San Bernardino | ** Support | |
| County Of San Diego | ** Support | |
| County of Sonoma | ** Support | |
| County of Ventura | ** Support | |
| Crescenta Valley Water District | ** Support | |
| Cucamonga Valley Water District | ** Support | |
| Desert Water Agency | ** Support | |
| Ducks Unlimited | ** Support | |
| East Bay Regional Park District | ** Support | |
| East Contra Costa County Habitat Conservancy | ** Support | |
| Eastern Municipal Water District | ** Support | |
| Eastern Sierra Land Trust | ** Support | |
| El Dorado Irrigation District | ** Support | |
| El Dorado Water Agency | ** Support | |
| Elsinore Valley Municipal Water District | ** Support | |
| Endangered Habitats League | ** Support | |
| Feather River Land Trust | ** Support | |
| Fire District Association of California | ** Support | |
| Fresno Eoc Local Conservation Corps | ** Support | |
| Friends of Harbors, Beaches and Parks | ** Support | |
| Greater Valley Conservation Corps | ** Support | |
| Hi-Desert Water District | ** Support | |
| Inland Empire Community Foundation | ** Support | |
| Inland Empire Utilities Agency | ** Support | |
| Irvine Ranch Conservancy | ** Support | |
| Irvine Ranch Water District | ** Support | |
| Jurupa Community Services District | ** Support | |
| Kern County Water Agency | ** Support | |
| Kings River Conservation District | ** Support | |
| Kings River Water Association | ** Support | |
| Lake Tahoe Community College | ** Support | |
| Land Trust Of Santa Cruz County | ** Support | |
| Latino Outdoors | ** Support | |
| League Of California Cities | ** Support | |
| League To Save Lake Tahoe | ** Support | |
| Living Classroom | ** Support | |
| Los Angeles Conservation Corps | ** Support | |
| Los Angeles Neighborhood Land Trust | ** Support | |
| Los Angeles Regional Collaborative for Climate Action & Sustainability | ** Support | |
| Marin Community Foundation | ** Support | |
| Megafire Action | ** Support | |
| Mesa Water District | ** Support | |
| Metropolitan Water District Of Southern California | ** Support | |
| Midpeninsula Regional Open Space District | ** Support | |
| Mission Springs Water District | ** Support | |
| Mojave Water Agency | ** Support | |
| Monterey One Water | ** Support | |
| Monterey Regional Stormwater Management Program | ** Support | |
| Mountain Counties Water Resources Association | ** Support | |
| Napa County Regional Park and Open Space District | ** Support | |
| National Audubon Society | ** Support | |
| North Tahoe Public Utility District | ** Support | |
| Northern California Water Association | ** Support | |
| Northern Sierra Partnership | ** Support | |
| Olivenhain Municipal Water District | ** Support | |
| One individual | ** Support | |
| Orange County Conservation Corps | ** Support | |
| Otay Water District | ** Support | |
| Outdoor Outreach | ** Support | |
| Outward Bound Adventures | ** Support | |
| Pacific Forest Trust | ** Support | |
| Padre Dam Municipal Water District | ** Support | |
| Palmdale Water District | ** Support | |
| Pathways for Wildlife | ** Support | |
| Peninsula Open Space Trust | ** Support | |
| Petaluma River Park | ** Support | |
| Pico Water District | ** Support | |
| Placer County Water Agency | ** Support | |
| Placer Land Trust | ** Support | |
| Port of San Diego | ** Support | |
| Puente Basin Water Agency | ** Support | |
| Rails to Trails Conservancy | ** Support | |
| Rancho California Water District | ** Support | |
| RCD of Greater San Diego County | ** Support | |
| Regenerative Forest Solutions | ** Support | |
| Resource Conservation District of Greater San Diego County | ** Support | |
| Rowland Water District | ** Support | |
| Rural County Representatives of California | ** Support | |
| Sacramento Area Sewer District | ** Support | |
| Sacramento Regional Conservation Corps | ** Support | |
| Salted Roots | ** Support | |
| San Diego County Air Pollution Control District | ** Support | |
| San Diego County Water Authority | ** Support | |
| San Diego Natural History Museum | ** Support | |
| San Diego Regional Chamber Of Commerce | ** Support | |
| San Diego Regional Climate Collaborative | ** Support | |
| San Diego Zoo Wildlife Alliance | ** Support | |
| San Gabriel Basin Water Quality Authority | ** Support | |
| San Gorgonio Pass Water Agency | ** Support | |
| San Joaquin Valley Water Collaborative Action Program | ** Support | |
| San Jose Conservation Corps | ** Support | |
| San Juan Water District | ** Support | |
| San Luis and Delta Mendota Water Authority | ** Support | |
| San Luis Delta-Mendota Water Authority | ** Support | |
| SanDiego350 | ** Support | |
| Santa Clara County Firesafe Council | ** Support | |
| Santa Clara Valley Open Space Authority | ** Support | |
| Santa Clara Valley Water District | ** Support | |
| Santa Margarita Water District | ** Support | |
| Save Mount Diablo | ** Support | |
| Save the Redwoods League | ** Support | |
| Sempervirens Fund | ** Support | |
| Sequoia Community Corps | ** Support | |
| Shafter-Wasco Irrigation District | ** Support | |
| Sierra Business Council | ** Support | |
| Sierra Climate Adaptation and Mitigation Partnership | ** Support | |
| Sierra Club California | ** Support | |
| Sierra Commons | ** Support | |
| Sierra Consortium | ** Support | |
| Sierra County Land Trust | ** Support | |
| Sierra Foothill Conservancy | ** Support | |
| Sierra Nevada Alliance | ** Support | |
| Sierra Service Project | ** Support | |
| Sloughhouse Resource Conservation District | ** Support | |
| Solano Beach Eco Rotary Club | ** Support | |
| Sonoma County Ag + Open Space | ** Support | |
| Sonoma County Agriculture and Open Space | ** Support | |
| Sonoma Land Trust | ** Support | |
| Sonoma Water | ** Support | |
| Soquel Creek Water District | ** Support | |
| South Lake Tahoe Public Utility District | ** Support | |
| Southern California Mountains Foundation | ** Support | |
| Southern California Water Coalition | ** Support | |
| Stockton East Water District | ** Support | |
| Surfrider Foundation | ** Support | |
| Surfrider Foundation, San Diego County Chapter | ** Support | |
| Sustainable Conservation | ** Support | |
| Sweetwater Authority | ** Support | |
| Tahoe City Public Utility District | ** Support | |
| Tahoe Fund | ** Support | |
| Tahoe Regional Planning Agency | ** Support | |
| Tahoe Resource Conservation District | ** Support | |
| Tahoe Transportation District | ** Support | |
| TEAMRCD | ** Support | |
| Temecula-Elsinore-Anza-Murrieta Resource Conservation District | ** Support | |
| The Conservation Fund | ** Support | |
| The Freshwater Trust | ** Support | |
| The Nature Conservancy | ** Support | |
| The San Diego Natural History Museum | ** Support | |
| The Wilderness Society | ** Support | |
| The Wildlands Conservancy | ** Support | |
| Tijuana River Coalition | ** Support | |
| TOGETHER Bay Area | ** Support | |
| Town of Windsor | ** Support | |
| Treepeople | ** Support | |
| Truckee Donner Land Trust | ** Support | |
| Un Mar De Colores | ** Support | |
| United Water Conservation District | ** Support | |
| Upper San Gabriel Valley Municipal Water District | ** Support | |
| Upper San Luis Rey Resource Conservation District | ** Support | |
| Urban Corps of San Diego County | ** Support | |
| Urban Counties of California | ** Support | |
| Valley Ag Water Coalition | ** Support | |
| Valley Water | ** Support | |
| Walnut Valley Water District | ** Support | |
| Washoe Tribe of California and Nevada | ** Support | |
| Water Blueprint for the San Joaquin Valley Advocacy Fund | ** Support | |
| Water Replenishment District | ** Support | |
| WateReuse California | ** Support | |
| WaterReuse California | ** Support | |
| West Valley Water District | ** Support | |
| Western Municipal Water District | ** Support | |
| Wildcoast | ** Support | |
| Wildfire Solutions Coalition | ** Support | |
| Wildlife Conservation Network | ** Support | |
| YMCA of San Diego County | ** Support | |
| Yosemite Rivers Alliance | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 35
Author:(Alvarez)
As Amended Ver:June 11, 2026
2/3 vote. Urgency
SUMMARY
Exempts the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4, from the Administrative Procedures Act (APA) with specified conditions.
Senate Amendments
- Require a state entity that receives funding to additionally administer a competitive grant program established using the APA exemption to transmit copies of those guidelines to the fiscal committees and to the appropriate policy committees of the Legislature and to hold a noticed public meeting on those guidelines.
- Require, upon adoption of the guidelines, the state entity to transmit copies of the guidelines to the fiscal committees and the appropriate policy committees of the Legislature.
- Provide that specified requirements do not apply to the development and adoption of program guidelines and selection criteria needed to effectuate or implement any program that is funded by any appropriation made in the Budget Act of 2025, or in any bill identified in Section 39.00 of the Budget Act of 2025, from Proposition 4.
COMMENTS
Proposition 4 was approved by the voters on the November 5, 2024, statewide general election, authorizing $10 billion in general obligation bonds to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs.
The APA establishes rulemaking procedures and standards for state agencies in California. The average timeline for APA rulemaking varies but generally requires about 12-18 months to complete a rulemaking, depending on complexity, public input, and Office of Administrative Law efficiency.
This bill adds an APA exemption to Proposition 4 to mirror the APA exemption provided in the past natural resource general obligation bonds for the development and adoption of program guidelines and selection criteria needed to effectuate or implement the programs included in the bond.
According to the Author
Proposition 4 reflects a clear mandate from California voters to accelerate investments in climate resilience, water quality, natural resources, and community protection. Voters approved these funds with the expectation that they would be deployed efficiently to address urgent environmental and public health challenges, including drinking water safety, flood protection, ecosystem restoration, and climate adaptation.
However, without an exemption from the APA, implementation of Proposition 4 funding faces unnecessary delays. Many administering agencies already operate established, transparent, and well-vetted guidelines, such as Intended Use Plans, competitive grant criteria, and public oversight processes that are routinely used to deploy similar bond funds. Requiring a duplicative APA rulemaking process would force agencies to create entirely new programs, divert staff resources, and delay funding for projects that are ready to move forward.
The Legislature has a long-standing precedent of authorizing APA exemptions for voter-approved bond measures, such as for all three recent climate bonds, and for complex infrastructure programs when timely deployment is essential. These exemptions do not eliminate accountability or public input; instead, they rely on existing statutory safeguards, board oversight, and reporting requirements to ensure transparency and responsible use of public funds.
[This bill] simply ensures Proposition 4 implementation as voters intended: swiftly, responsibly, and based on sound science and established practices. This APA exemption will allow state agencies to deliver critical investments to communities without delay, maximize the impact of bond funds, and respond effectively to California's pressing wildfire, climate infrastructure and clean water challenges.
Arguments in Support
A sign-on letter with more than 90 organizations writes that a full APA exemption would enable funds to be deployed more quickly and efficiently, ensuring that protracted administrative processes do not hold up vital community projects, and explains, "Importantly, an exemption from the APA does not eliminate transparency, consultation, or public engagement. Agencies will continue to follow robust fiscal, reporting, and oversight requirements. Many agencies have already gone through extensive public processes for these existing programs. Instead, the exemption will streamline implementation, maintain consistency across programs, and avoid creating barriers to delivering critical funding where it is most needed."
Arguments in Opposition
None on file
FISCAL COMMENTS
The Senate Appropriations Committee approved this measure pursuant to Senate Rule 28.8 in recognition that the bill has negligible state costs.
VOTES:
ASM NATURAL RESOURCES: 13-0-1
YES: Bryan, Alanis, Connolly, Ellis, Garcia, Haney, Hoover, Kalra, Macedo, Muratsuchi, Pellerin, Schultz, Zbur
ABS, ABST OR NV: Wicks
ASM APPROPRIATIONS: 15-0-0
YES: Wicks, Hoover, Stefani, Calderon, Caloza, Dixon, Fong, Mark González, Krell, Bauer-Kahan, Pacheco, Pellerin, Solache, Ta, Tangipa
ASSEMBLY FLOOR: 76-0-4
YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
ABS, ABST OR NV: Arambula, Papan, Celeste Rodriguez, Ta
SENATE FLOOR: 36-0-4
YES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Durazo, Gonzalez, Grayson, Grove, Hurtado, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
ABS, ABST OR NV: Alvarado-Gil, Dahle, Jones, Reyes
UPDATED
VERSION: June 11, 2026
CONSULTANT: Paige Brokaw / NAT. RES. / (916) 319-2092 FN: 0003217
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 35 |
CONSENT
Bill No: AB 35
Author: Alvarez (D), et al.
Amended: 6/11/26 in Senate
Vote: 27 - Urgency
SENATE NATURAL RES. & WATER COMMITTEE: 7-0, 6/9/26
AYES: Becker, Seyarto, Allen, Cabaldon, Grove, Laird, Reyes
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 76-0, 1/26/26 - See last page for vote
SUBJECT: Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024: Administrative Procedure Act: exemption: program guidelines and selection criteria
SOURCE: Author
DIGEST:
This bill exempts the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4, from the Administrative Procedures Act, as provided.
ANALYSIS:
Existing law:
- Establishes Proposition 4, which authorizes the sale of $10 billion in general obligation bonds, if approved by voters, for various purposes including safe drinking water, drought, flood, and water resilience programs, among others. (Public Resources Code (PRC) §§ 90000 et seq.)
- Authorizes the Legislature to enact legislation necessary to implement programs funded by Proposition 4. (PRC § 90115)
- Authorizes an emergency regulation for purposes of developing and adopting program guidelines and criteria to effectuate or implement Proposition 4 programs, and requires the emergency regulation to remain in effect until repealed or amended by the adopting state agency. (PRC § 90135(e))
- Pursuant to the Administrative Procedures Act (APA)(Government Code §§11340 et seq.)
- Establishes the Office of Administrative Law (OAL), and charges them with the orderly review of adopted regulations.
- Prohibits any state agency from issuing, utilizing, enforcing, or attempting to enforce any guideline, criterion, bulletin, manual, instruction, order, standard of general application, or other rule, which is a regulation as defined, unless the guideline, criterion, bulletin, manual, instruction, order, standard of general application, or other rule has been adopted as a regulation and filed with the Secretary of State pursuant to the APA.
- Authorizes any interested person to petition a state agency requesting the adoption, amendment, or repeal of a regulation, as provided.
- Requires OAL to review all regulations adopted, amended, or repealed and submitted to it for publication in the California Code of Regulations Supplement, transmittal to the Secretary of State, and to make determinations using specified standards. Establishes timeframes by which OAL must approve or disapprove a regulation after it has been submitted to OAL for review.
- Pursuant to Proposition 68, exempts the development and adoption of program guidelines and selection criteria adopted pursuant to Proposition 68 from the APA, and provides a non-APA public process for the adoption of program guidelines and selection criteria, as specified. (PRC §80010)
This bill:
- Authorizes the adoption of a regulation for the purpose of developing and adopting program guidelines and selection criteria needed to effectuate or implement Proposition 4 programs, as provided.
- Exempts the development and adoption of program guidelines and selection criteria needed to effectuate or implement Proposition 4 programs from the APA, as provided.
- Requires a state entity using the APA exemption before disbursing Proposition 4 grants to do the following:
- Develop draft project solicitation and evaluation guidelines.
- Transmit copies of the draft solicitation and evaluation guidelines to relevant legislative committees. Publish the draft solicitation and evaluation guidelines on its internet website for a public comment period of at least 30 days. Hold a noticed public meeting on the draft solicitation and evaluations guidelines. Require all written public comments to be posted on its internet website, as provided. Require the state entity to respond to each public comment in writing.
- Offer opportunity for tribal consultation to impacted tribes.
- Require the state entity to finalize project solicitation and evaluation guidelines after completing i), ii) and iii) above.
- Require the state entity, with the exception of the State Water Resources Control Board, to submit the final guidelines to the Secretary of the Natural Resources Agency. Require the Secretary to verify that the guidelines are consistent with applicable statutes and the purposes of Proposition 4. Require the Secretary to post an electronic form of the guidelines and subsequent verification on the Natural Resources Agency’s internet website. Upon adoption, transmit the final guidelines to relevant legislative committees, as provided..
- Requires a state entity using the APA exemption before disbursing Proposition 4 grants to do the following:
- Provides that the use of existing project solicitation and evaluation guidelines that comply with the requirements of 1) and 2) above and that were developed and adopted prior to the effective date of this act comply with this act.
- States this bill is an urgency statute necessary for the immediate preservation of the public peace, health, or safety for specified reasons.
- Makes minor and technical changes to statute.
[For additional background and information about this bill, see the Senate Natural Resources and Water Committee bill analysis.]
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 6/22/26)
Agricultural Institute of Marin
Alliance of Regional Collaboratives for Climate Adaptation
American Canyon Community & Parks Foundation
Associated General Contractors of California
Association of California Water Agencies
Audubon California
Bay Area Climate Adaptation Network
Bay Area Council
Bay Area Ridge Trail Council
Bay Planning Coalition
Bellflower Somerset Mutual Water Company
Big Sur Land Trust
Blue Forest
Bolsa Chica Land Trust
CalDesal
California Local Conservation Corps Foundation
California Association of Local Conservation Corps
California Association of Recreation and Parks Districts
California Association of Resource Conservation Districts
California Association of Sanitation Agencies
California Central Valley Flood Control Association
California Climate and Agriculture Network
California Council of Land Trusts
California Fire Chiefs Association
California Fire Safe Councils
California Forestry Association
California Groundwater Coalition
California Habitat Conservation Planning Coalition
California Invasive Plant Council
California Mountain Biking Coalition
California Municipal Utilities Association
California Outdoor Recreation Partnership
California State Association of Counties
California State Parks Foundation
California Stormwater Quality Association
California Tahoe Alliance
California Water Association
California Water Efficiency Partnership
Calleguas Municipal Water District
Carbon Cycle Institute
Central Basin Water Association
Central California Environmental Justice Network
Central Coast Climate Collaborative
Cesar Chavez Environmental Corps
City of Carlsbad
City of Los Angeles
City of Moorpark
City of Rancho Cucamonga
City of Redwood City
City of Roseville
City of Sacramento
City of San Diego
City of South Lake Tahoe
City of Thousand Oaks
Civicorps
Clean Water Action
Climate Resolve
Coachella Valley Association of Governments
Coachella Valley Conservation Commission
Coastal Corridor Alliance
Collaborate Action Program
Community Nature Connection
Community Water Center
Conservation Corps North Bay
Conservation Corps of Long Beach
County of El Dorado
County of Marin
County of Monterey
County of Nevada
County of Orange
County of Placer
County of Riverside
County of San Bernardino
County of San Diego
County of Sonoma
County of Ventura
Crescenta Valley Water District
Cucamonga Valley Water District
Desert Water Agency
Ducks Unlimited
East Bay Regional Park District
East Contra Costa County Habitat Conservancy
Eastern Municipal Water District
Eastern Sierra Land Trust
El Dorado Irrigation District
El Dorado Water Agency
Elsinore Valley Municipal Water District
Endangered Habitats League
Feather River Land Trust
Fire District Association of California
Fresno EOC Local Conservation Corps
Friends of Harbors, Beaches and Parks
Greater Valley Conservation Corps
Hi-Desert Water District
Inland Empire Community Foundation
Inland Empire Utilities Agency
Irvine Ranch Conservancy
Irvine Ranch Water District
Jurupa Community Services District
Kern County Water Agency
Kings River Conservation District
Kings River Water Association
Land Trust of Santa Cruz County
Lake Tahoe Community College
Latino Outdoors
League of California Cities
League to Save Lake Tahoe
Living Classroom
Los Angeles Conservation Corps
Los Angeles Neighborhood Land Trust
Los Angeles Regional Collaborative for Climate Action & Sustainability
Marin Community Foundation
Megafire Action
Mesa Water District
Metropolitan Water District of Southern California
Midpeninsula Regional Open Space District
Mission Springs Water District
Mojave Water Agency
Monterey One Water
Monterey Regional Stormwater Management Program
Mountain Counties Water Resources Association
Napa County Regional Park and Open Space District
North Tahoe Public Utility District
Northern California Water Association
Northern Sierra Partnership
Olivenhain Municipal Water District
Orange County Conservation Corps
Otay Water District
Outdoor Outreach
Outward Bound Adventures
Pacific Forest Trust
Padre Dam Municipal Water District
Palmdale Water District
Pathways for Wildlife
Peninsula Open Space Trust
Petaluma River Park
Pico Water District
Placer County Water Agency
Placer Land Trust
Port of San Diego
Puente Basin Water Agency
Rails to Trails Conservancy
Rancho California Water District
RCD of Greater San Diego County
Regenerative Forest Solutions
Rowland Water District
Rural County Representatives of California
Sacramento Area Sewer District
Sacramento Regional Conservation Corps
Salted Roots
San Diego County Air Pollution Control District
San Diego County Water Authority
San Diego Regional Chamber of Commerce
San Diego Regional Climate Collaborative
San Diego Zoo Wildlife Alliance
San Gabriel Basin Water Quality Authority
San Gorgonio Pass Water Agency
San Joaquin Valley Water Collaborative Action Program
San Jose Conservation Corps
San Juan Water District
San Luis and Delta Mendota Water Authority
SanDiego350
Santa Clara County FireSafe Council
Santa Clara Valley Open Space Authority
Santa Clara Valley Water District
Santa Margarita Water District
Save Mount Diablo
Save the Redwoods League
Sempervirens Fund
Sequoia Community Corps
Shafter-Wasco Irrigation District
Sierra Business Council
Sierra Climate Adaptation and Mitigation Partnership
Sierra Club California
Sierra Commons
Sierra County Land Trust
Sierra Foothill Conservancy
Sierra Nevada Alliance
Sierra Service Project
Sloughhouse Resource Conservation District
Solano Beach Eco Rotary Club
Sonoma County Ag + Open Space
Sonoma Land Trust
Sonoma Water
Soquel Creek Water District
South Lake Tahoe Public Utility District
Southern California Mountains Foundation
Southern California Water Coalition
Stockton East Water District
Surfrider Foundation
Surfrider Foundation, San Diego County Chapter
Sustainable Conservation
Sweetwater Authority
Tahoe City Public Utility District
Tahoe Fund
Tahoe Regional Planning Agency
Tahoe Resource Conservation District
Tahoe Transportation District
TEAMRCD
The Conservation Fund
The Freshwater Trust
The Nature Conservancy
The San Diego Natural History Museum
The Wilderness Society
The Wildlands Conservancy
Tijuana River Coalition
TOGETHER Bay Area
Town of Windsor
TreePeople
Truckee Donner Land Trust
Un Mar de Colores
United Water Conservation District
Upper San Gabriel Valley Municipal Water District
Upper San Luis Rey Resource Conservation District
Urban Corps of San Diego County
Urban Counties of California
Valley Ag Water Coalition
Walnut Valley Water District
Washoe Tribe of California and Nevada
Water Blueprint for the San Joaquin Valley Advocacy Fund
Water Replenishment District
WaterReuse California
West Valley Water District
Western Municipal Water District
WILDCOAST
Wildlife Conservation Network
YMCA of San Diego County
Yosemite Rivers Alliance
OPPOSITION: (Verified 6/22/26)
None received
ARGUMENTS IN SUPPORT: According to the author, “Proposition 4 reflects a clear mandate from California voters to accelerate investments in climate resilience, water quality, natural resources, and community protection. Voters approved these funds with the expectation that they would be deployed efficiently to address urgent environmental and public health challenges, including drinking water safety, flood protection, ecosystem restoration, and climate adaptation.”
“However, without an exemption from the Administrative Procedure Act (APA), implementation of Proposition 4 funding faces unnecessary delays. Many administering agencies already operate established, transparent, and well-vetted guidelines, such as Intended Use Plans, competitive grant criteria, and public oversight processes that are routinely used to deploy similar bond funds. Requiring a duplicative APA rulemaking process would force agencies to create entirely new programs, divert staff resources, and delay funding for projects that are ready to move forward.”
“The Legislature has a long-standing precedent of authorizing APA exemptions for voter-approved bond measures, such as for all three recent climate bonds, and for complex infrastructure programs when timely deployment is essential. These exemptions do not eliminate accountability or public input; instead, they rely on existing statutory safeguards, board oversight, and reporting requirements to ensure transparency and responsible use of public funds.”
“AB 35 simply ensures Proposition 4 implementation as voters intended: swiftly, responsibly, and based on sound science and established practices. This APA exemption will allow state agencies to deliver critical investments to communities without delay, maximize the impact of bond funds, and respond effectively to California’s pressing wildfire, climate infrastructure and clean water challenges.”
ASSEMBLY FLOOR: 76-0, 1/26/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NO VOTE RECORDED: Arambula, Papan, Celeste Rodriguez, Ta
Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116
6/24/26 16:28:29
**** END ****
SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
Senator Josh Becker, Chair
2025 - 2026 Regular
Bill No: AB Hearing Date: June 9, 2026
Author: | |||
Version: | Amended | ||
Urgency: | Fiscal: | ||
Consultant: | |||
Subject: Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024: Administrative Procedure Act: exemption: program guidelines and selection criteria
SUMMARY
Exempts the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4, from the Administrative Procedures Act
BACKGROUND AND EXISTING LAW
Proposition 4 (2024)
In the November 2024 statewide election, the state’s voters approved Proposition 4 – the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 – by a vote of approximately 60% to 40% (9,055,116 to 6,086,414). Proposition 4 authorizes the sale of $10 billion in general obligation bonds to finance various natural resources-related and energy programs and projects, and was placed on the ballot by the Legislature (SB 867 (Allen et al., Chapter 83, Statutes of 2024)(Public Resources Code (PRC) §§90000 et seq.).
Proposition 4 requires state agencies disburse certain funds through competitive grants, and generally requires that projects funded should be consistent with the policies and guidelines of various existing programs, as applicable.[1] Additionally, Proposition 4 explicitly authorizes the Legislature to enact legislation to implement programs funded by Proposition 4 (PRC §90115).
The Fiscal Year (FY) 2025 – 2026 budget appropriated $3.29 billion from Proposition 4 across all eight chapters of the bond. The Governor’s proposed FY 2026 – 2027 budget appropriates an additional $2.104 billion leaving $4.606 billion of the bond for later years.[2]
The Administrative Procedures Act (APA)
The APA (Government Code §§11340 et seq.) establishes rulemaking procedures and standards for state agencies in California and is implemented by the Office of Administrative Law (OAL). APA requirements are designed to provide the public with a meaningful opportunity to participate in the adoption of state regulations and to ensure that regulations are clear, necessary, and legally valid. Once a proposed notice of rulemaking is posted, an agency has one year to complete the rulemaking process. State agencies may also choose to engage in pre-rulemaking efforts generating “discussion drafts” of regulations prior to submittal to OAL for controversial and complicated potential rulemakings in order to meet the one year timeline once the formal rulemaking process has started. The APA has certain specified time periods for proposal review that includes a minimum 45-day public comment period after notice of publication, and a mandatory 30 working day review by the OAL before filing. State agency response to comments received during the process can take multiple months. Regulations, once approved, are valid indefinitely.
In addition to the regular rulemaking process, there is an emergency one as well. The emergency rulemaking process has shorter time periods for public comment (5 days after posting), OAL review (10 days), and, once issued, emergency regulations remain in effect for 180 days with the possibility of two subsequent re-adoptions of 90 days each.
In numerous instances, existing law waives or modifies the provisions of the APA, including for the development of certain state agency competitive grant project solicitation and selection criteria guidelines.
Implementation of grant programs funded through natural resources bonds
The California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002 (Proposition 40) (2002) does not require adherence to the APA for grant-making, but delegates the authority in some instances to the director of the relevant stage agency to develop criteria (see, for example, PRC §5096.624). The Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002[3] (Proposition 50) (2002) also provides in relevant chapters that the Legislature could subsequently enact implementing legislation (see, for example, Water Code §79531).
Later legislative natural resources-related bonds, such as the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1) (2014) and the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018 (Proposition 68) (2018), include language specifying how state agencies develop competitive grant program guidelines. In Proposition 68, for example, state agencies are directed to develop project solicitation and evaluation guidelines through a public process. This public process includes posting draft guidelines online, holding public meetings to consider public comments to draft guidelines at least 30 days after posting, requiring the Natural Resources Agency to verify compliance of the guidelines with requirements, and transmitting the guidelines to applicable legislative committees after finalization. Importantly, state agencies with existing project solicitation and evaluation guidelines are allowed to continue to use them, and the APA process is waived for those who did not.[4]
Implementation of grant programs funded through Proposition 4
Proposition 4, as passed by the voters, did not include explicit direction on how state agency competitive grant programs were to develop guidelines for disbursal of funds. Last year, one of the public resources budget trailer bills, AB 149 (Committee on Budget, Chapter 106, Statutes of 2025), addressed this issue. AB 149 modified Proposition 4 to authorize the adoption of emergency regulations for the purpose of developing and adopting program guidelines and selection criteria by a state entity in order to implement or effectuate Proposition 4 programs, and provided that any emergency regulations would remain in effect until repealed or amended by the adopting agency.
Eight state agencies, including the Department of Forestry and Fire Protection’s Forest Resilience Grant Program, have received OAL approval of emergency regulations to implement their Proposition 4 grant programs.[5] However, six state agencies have withdrawn their proposed Proposition 4 emergency regulations. At least some of those agencies, such as the Wildlife Conservation Board and the State Coastal Conservancy, were unable to obtain emergency regulations for long-standing and well-regarded grant programs due to differences between their implementation and the APA’s strict requirements. This failure posed a risk to timely grant-making, and put the implementation of certain projects at risk.
To alleviate this potential bottleneck, in February 2026 the Legislature passed, and the Governor signed into law, AB 107 (Gabriel, Chapter 5, Statutes of 2026) which provides an APA exemption for the development and adoption of program guidelines and selection criteria needed to effectuate or implement any Proposition 4 funding in the Budget Act of 2025.
Existing law:
- Establishes Proposition 4, which authorizes the sale of $10 billion in general obligation bonds, if approved by voters, for various purposes including safe drinking water, drought, flood, and water resilience programs, among others. (PRC §§90000 et seq.)
- Authorizes the Legislature to enact legislation necessary to implement programs funded by Proposition 4. (PRC §90115)
- Authorizes an emergency regulation for purposes of developing and adopting program guidelines and criteria to effectuate or implement Proposition 4 programs, and requires the emergency regulation to remain in effect until repealed or amended by the adopting state agency. (PRC § 90135(e))
- Pursuant to the APA (Government Code 11340 et seq.)
- Establishes OAL, and charges them with the orderly review of adopted regulations.
- Prohibits any state agency from issuing, utilizing, enforcing, or attempting to enforce any guideline, criterion, bulletin, manual, instruction, order, standard of general application, or other rule, which is a regulation as defined, unless the guideline, criterion, bulletin, manual, instruction, order, standard of general application, or other rule has been adopted as a regulation and filed with the Secretary of State pursuant to the APA.
- Authorizes any interested person to petition a state agency requesting the adoption, amendment, or repeal of a regulation, as provided.
- Requires OAL to review all regulations adopted, amended, or repealed and submitted to it for publication in the California Code of Regulations Supplement, transmittal to the Secretary of State, and to make determinations using specified standards. Establishes timeframes by which OAL must approve or disapprove a regulation after it has been submitted to OAL for review.
- Pursuant to Proposition 68, exempts the development and adoption of program guidelines and selection criteria adopted pursuant to Proposition 68 from the APA, and provides a non-APA public process for the adoption of program guidelines and selection criteria, as specified. (PRC §80010)
PROPOSED LAW
This bill would:
- Authorize the adoption of a regulation for the purpose of developing and adopting program guidelines and selection criteria needed to effectuate or implement Proposition 4 programs, as provided.
- Exempt the development and adoption of program guidelines and selection criteria needed to effectuate or implement Proposition 4 programs from the APA, as provided.
- Require a state entity using the APA exemption before disbursing Proposition 4 grants to do the following:
- Develop draft project solicitation and evaluation guidelines.
- Publish the draft solicitation and evaluation guidelines on its internet website for a public comment period of at least 30 days. Require all written public comments to be posted on its internet website, as provided. Require the state entity to respond to each public comment.
- Offer opportunity for tribal consultation to impacted tribes.
- Require the state entity to finalize project solicitation and evaluation guidelines after completing i), ii) and iii) above.
- Require the state entity, with the exception of the State Water Resources Control Board, to submit the final guidelines to the Secretary of the Natural Resources Agency. Require the Secretary to verify that the guidelines are consistent with applicable statutes and the purposes of Proposition 4. Require the Secretary to post an electronic form of the guidelines and subsequent verification on the Natural Resources Agency’s internet website.
- Require a state entity using the APA exemption before disbursing Proposition 4 grants to do the following:
- Provide that the use of existing project solicitation and evaluation guidelines that comply with the requirements of 1) and 2) above and that were developed and adopted prior to the effective date of this act comply with this act.
- State this bill is an urgency statute necessary for the immediate preservation of the public peace, health, or safety for specified reasons.
- Make minor and technical changes to statute.
ARGUMENTS IN SUPPORT
According to the author, “Proposition 4 reflects a clear mandate from California voters to accelerate investments in climate resilience, water quality, natural resources, and community protection. Voters approved these funds with the expectation that they would be deployed efficiently to address urgent environmental and public health challenges, including drinking water safety, flood protection, ecosystem restoration, and climate adaptation.”
“However, without an exemption from the Administrative Procedure Act (APA), implementation of Proposition 4 funding faces unnecessary delays. Many administering agencies already operate established, transparent, and well-vetted guidelines, such as Intended Use Plans, competitive grant criteria, and public oversight processes that are routinely used to deploy similar bond funds. Requiring a duplicative APA rulemaking process would force agencies to create entirely new programs, divert staff resources, and delay funding for projects that are ready to move forward.”
“The Legislature has a long-standing precedent of authorizing APA exemptions for voter-approved bond measures, such as for all three recent climate bonds, and for complex infrastructure programs when timely deployment is essential. These exemptions do not eliminate accountability or public input; instead, they rely on existing statutory safeguards, board oversight, and reporting requirements to ensure transparency and responsible use of public funds.”
“AB 35 simply ensures Proposition 4 implementation as voters intended: swiftly, responsibly, and based on sound science and established practices. This APA exemption will allow state agencies to deliver critical investments to communities without delay, maximize the impact of bond funds, and respond effectively to California’s pressing wildfire, climate infrastructure and clean water challenges.”
ARGUMENTS IN OPPOSITION
None received
COMMENTS
Addresses delays/potential delays in Proposition 4 grant-making. By providing a non-APA pathway for guideline development for Proposition 4-funded competitive grant programs, this bill will help to facilitate state grants to fund much-needed natural resources-related projects. As noted above, some highly regarded long-established grant programs that fund a broad spectrum of projects statewide do not readily conform to the APA process. Forcing the state agencies that operate those grant programs to narrow them or create new narrow programs tailored to conform to the APA process is both potentially time-consuming and inconsistent with voter-approved language in Proposition 4 requiring consistency with existing programs. Authorizing a non-APA process is also consistent with previous natural resources bonds.
Further, this bill leaves in place existing provisions for a state agency that has successfully obtained emergency regulations for a Proposition 4-funded program to continue to use them.
Since this bill was transmitted to the Senate in January, the Legislature passed AB 107 authorizing an APA exemption applicable to competitive grant programs with Proposition 4 appropriations in the Budget Act of 2025. Additionally, this bill does not include in the proposed non-APA process the public meeting or transmittal of the guidelines to the Legislature requirements found in Proposition 68, among other bonds.
In view of this, the Committee may wish to amend the bill to:
- Address the passage of AB 107 earlier this year [Amendment #1]
- Add to the non-APA process, a public meeting requirement and transmittal of the draft and final guidelines to the relevant legislative committees [Amendment #2]
- Make two minor technical changes [Amendment #3]
No need to return to the voters. According to the Assembly Natural Resources Committee, California’s general obligation bond law and the state constitution provide specific guidance on whether the Legislature can amend general obligation bonds after they have been approved by voters.
The California Constitution (Article XVI, § 1 and 2) generally states that once voters approve bond authorization, that law cannot be repealed or materially altered while debt remains outstanding. The General Obligation Bond Law reaffirms the constitutional provisions. A modification, such as an APA exemption, is permissible as it is not a material change to the bond language approved by the voters. Additionally, Proposition 4’s language approved by the voters specifically authorized the Legislature to enact legislation necessary to implement the bond.
Recent related legislation
AB 107 (Gabriel, Chapter 5, Statutes of 2026) amended the Budget Acts of 2023, 2024, and 2025, and provided that the APA does not apply to the development and adoption of program guidelines and selection criteria to effectuate or implement any program funded by any Proposition 4 appropriation in the Budget Act of 2025, as provided.
AB 149 (Committee on Budget, Chapter 106, Statutes of 2025) is a public resources budget trailer bill that provides that a regulation for the purpose of developing and adopting program guidelines and selection criteria for appropriated Proposition 4 monies be required for all programs, authorizes the adoption of the guidelines and criteria via emergency regulation, and requires that any emergency regulation stays in effect until repealed or amended by the adopting state agency.
SB 867 (Allen et al., Chapter 83, Statutes of 2024), subject to voter approval, establishes Proposition 4 which authorizes $10 billion in general obligation bonds to finance state and local parks, environmental protection projects, water infrastructure projects, energy projects, and flood protection projects. (Proposition 4 was approved by the state’s voters in the November 2024 statewide election by a vote of approximately 60% to 40%).
SB 5 (de León et al., Chapter 852, Statutes of 2017), subject to voter approval, establishes Proposition 68 which authorizes $4 billion in general obligation bonds to finance drought, water, parks, climate, coastal protection, and outdoor access for all projects, as provided. (Proposition 68 was approved by the state’s voters in the June 2018 statewide election by a vote of approximately 58% to 42%.)
AB 1471 (Rendon et al., Chapter 188, Statutes of 2014),subject to voter approval, establishes Proposition 1, which, among other provisions, authorizes $7.12 billion in general obligation bonds to finance water supply infrastructure projects, as provided. (Proposition 1 was approved by the state’s voters in the November 2014 statewide election by a vote of approximately 67% to 33%.)
AB 140 (Nunez and Perata, Chapter 33, Statutes of 2006), subject to voter approval, establishes the Disaster Preparedness and Flood Prevention Bond Act of 2006 (Proposition 1E) which authorizes $4.09 billion in general obligation bonds to finance flood control structures and water supply systems, as provided. (Proposition 1E was approved by the state’s voters in the November 2006 statewide election by a vote of approximately 64% to 36%.)
AB 1602 (Keeley et al., Chapter 875, Statutes of 2001), subject to voter approval, establishes Proposition 40 which authorizes $2.6 billion to finance the acquisition and development of state parks, the acquisition and development of neighborhood, community, and regional parks and recreation areas, for land, air, and water conservation programs, and the acquisition, restoration, preservation and interpretation of California’s historical and cultural resources, as provided. (Proposition 40 was approved by the state’s voters in the March 2002 statewide election by a vote of approximately 57% to 43%.)
AB 18 (Villaraigosa et al., Chapter 461, Statutes of 1999) and SB 1147 (Leslie, Chapter 638, Statutes of 1999), subject to voter approval, establishes the Safe Neighborhood Parks, Clean Water, Clean Air and Coastal Protection Bond Act of 2000 (Proposition 12) which authorizes $2.1 billion in general obligation bonds to finance clean water, recreational projects and to preserve open space and farmland, as provided. (Proposition 12 was approved by the state’s voters in the March 2000 statewide election by a vote of approximately 63% to 37%.)
SUGGESTED AMENDMENTS
AMENDMENT 1
On page 5, between lines 38 and 39: add “(5) The requirements contained in this subdivision do not apply to the development and adoption of program guidelines and selection criteria needed to effectuate or implement any program that is funded by any appropriation made in the Budget Act of 2025, or in any bill identified in Section 39.00 of the Budget Act of 2025, from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund established pursuant to Section 90500.”
AMENDMENT 2
On page 5, line 11: after “30 days” insert “, and hold a noticed public hearing on the draft solicitation and evaluation guidelines”
On page 5, line 10: after “(B)”, delete “Publish” and insert “Transmit copies of the draft guidelines to the fiscal committees and the appropriate policy committees of the Legislature and publish.”
On page 5, between lines 30 and 31: insert: “(F) Upon adoption, transmit copies of the guidelines to the fiscal committees and the appropriate policy committees of the Legislature.”
AMENDMENT 2
On page 5, line 7: insert “paragraph (2) of” between “to” and “this”
On page 5, line 15: insert “in writing” between “respond” and “to”
SUPPORT
Agricultural Institute of Marin
Alliance of Regional Collaboratives for Climate Adaptation
American Canyon Community & Parks Foundation
Associated General Contractors of California
Association of California Water Agencies
Audubon California
Bay Area Climate Adaptation Network
Bay Area Council
Bay Area Ridge Trail Council
Bay Planning Coalition
Bellflower Somerset Mutual Water Company
Big Sur Land Trust
Blue Forest
Bolsa Chica Land Trust
CalDesal
California Local Conservation Corps Foundation
California Association of Local Conservation Corps
California Association of Recreation and Parks Districts
California Association of Resource Conservation Districts
California Association of Sanitation Agencies
California Central Valley Flood Control Association
California Climate and Agriculture Network
California Council of Land Trusts
California Fire Chiefs Association
California Fire Safe Councils
California Forestry Association
California Groundwater Coalition
California Habitat Conservation Planning Coalition
California Invasive Plant Council
California Mountain Biking Coalition
California Municipal Utilities Association
California Outdoor Recreation Partnership
California State Association of Counties
California State Parks Foundation
California Stormwater Quality Association
California Tahoe Alliance
California Water Association
California Water Efficiency Partnership
Calleguas Municipal Water District
Carbon Cycle Institute
Central Basin Water Association
Central California Environmental Justice Network
Central Coast Climate Collaborative
Cesar Chavez Environmental Corps
City of Carlsbad
City of Los Angeles
City of Moorpark
City of Rancho Cucamonga
City of Redwood City
City of Roseville
City of Sacramento
City of San Diego
City of South Lake Tahoe
City of Thousand Oaks
Civicorps
Clean Water Action
Climate Resolve
Coachella Valley Association of Governments
Coachella Valley Conservation Commission
Coastal Corridor Alliance
Collaborate Action Program
Community Nature Connection
Community Water Center
Conservation Corps North Bay
Conservation Corps of Long Beach
County of El Dorado
County of Marin
County of Monterey
County of Nevada
County of Orange
County of Placer
County of Riverside
County of San Bernardino
County of San Diego
County of Sonoma
County of Ventura
Crescenta Valley Water District
Cucamonga Valley Water District
Desert Water Agency
Ducks Unlimited
East Bay Regional Park District
East Contra Costa County Habitat Conservancy
Eastern Municipal Water District
Eastern Sierra Land Trust
El Dorado Irrigation District
El Dorado Water Agency
Elsinore Valley Municipal Water District
Endangered Habitats League
Feather River Land Trust
Fire District Association of California
Fresno EOC Local Conservation Corps
Friends of Harbors, Beaches and Parks
Greater Valley Conservation Corps
Hi-Desert Water District
Inland Empire Community Foundation
Inland Empire Utilities Agency
Irvine Ranch Conservancy
Irvine Ranch Water District
Jurupa Community Services District
Kern County Water Agency
Kings River Conservation District
Kings River Water Association
Land Trust of Santa Cruz County
Lake Tahoe Community College
Latino Outdoors
League of California Cities
League to Save Lake Tahoe
Living Classroom
Los Angeles Conservation Corps
Los Angeles Neighborhood Land Trust
Los Angeles Regional Collaborative for Climate Action & Sustainability
Marin Community Foundation
Megafire Action
Mesa Water District
Metropolitan Water District of Southern California
Midpeninsula Regional Open Space District
Mission Springs Water District
Mojave Water Agency
Monterey One Water
Monterey Regional Stormwater Management Program
Mountain Counties Water Resources Association
Napa County Regional Park and Open Space District
North Tahoe Public Utility District
Northern California Water Association
Northern Sierra Partnership
Olivenhain Municipal Water District
Orange County Conservation Corps
Otay Water District
Outdoor Outreach
Outward Bound Adventures
Pacific Forest Trust
Padre Dam Municipal Water District
Palmdale Water District
Pathways for Wildlife
Peninsula Open Space Trust
Petaluma River Park
Pico Water District
Placer County Water Agency
Placer Land Trust
Port of San Diego
Puente Basin Water Agency
Rails to Trails Conservancy
Rancho California Water District
RCD of Greater San Diego County
Regenerative Forest Solutions
Rowland Water District
Rural County Representatives of California
Sacramento Area Sewer District
Sacramento Regional Conservation Corps
Salted Roots
San Diego County Air Pollution Control District
San Diego County Water Authority
San Diego Regional Chamber of Commerce
San Diego Regional Climate Collaborative
San Diego Zoo Wildlife Alliance
San Gabriel Basin Water Quality Authority
San Gorgonio Pass Water Agency
San Joaquin Valley Water Collaborative Action Program
San Jose Conservation Corps
San Juan Water District
San Luis and Delta Mendota Water Authority
SanDiego350
Santa Clara County FireSafe Council
Santa Clara Valley Open Space Authority
Santa Clara Valley Water District
Santa Margarita Water District
Save Mount Diablo
Save the Redwoods League
Sempervirens Fund
Sequoia Community Corps
Shafter-Wasco Irrigation District
Sierra Business Council
Sierra Climate Adaptation and Mitigation Partnership
Sierra Club California
Sierra Commons
Sierra County Land Trust
Sierra Foothill Conservancy
Sierra Nevada Alliance
Sierra Service Project
Sloughhouse Resource Conservation District
Solano Beach Eco Rotary Club
Sonoma County Ag + Open Space
Sonoma Land Trust
Sonoma Water
Soquel Creek Water District
South Lake Tahoe Public Utility District
Southern California Mountains Foundation
Southern California Water Coalition
Stockton East Water District
Surfrider Foundation
Surfrider Foundation, San Diego County Chapter
Sustainable Conservation
Sweetwater Authority
Tahoe City Public Utility District
Tahoe Fund
Tahoe Regional Planning Agency
Tahoe Resource Conservation District
Tahoe Transportation District
TEAMRCD
The Conservation Fund
The Freshwater Trust
The Nature Conservancy
The San Diego Natural History Museum
The Wilderness Society
The Wildlands Conservancy
Tijuana River Coalition
TOGETHER Bay Area
Town of Windsor
TreePeople
Truckee Donner Land Trust
Un Mar de Colores
United Water Conservation District
Upper San Gabriel Valley Municipal Water District
Upper San Luis Rey Resource Conservation District
Urban Corps of San Diego County
Urban Counties of California
Valley Ag Water Coalition
Walnut Valley Water District
Washoe Tribe of California and Nevada
Water Blueprint for the San Joaquin Valley Advocacy Fund
Water Replenishment District
WaterReuse California
West Valley Water District
Western Municipal Water District
WILDCOAST
Wildlife Conservation Network
YMCA of San Diego County
Yosemite Rivers Alliance
One individual
OPPOSITION
None received
-- END --
See, for example, PRC §93060 which states “Projects funded pursuant to this chapter shall be consistent with the policies and guidelines established by the Wildlife Conservation Board, the Pathways to 30x30 strategy, the Natural and Working Lands Climate Smart Strategy, California’s 2022 Scoping Plan for Achieving Carbon Neutrality, and the California Climate Adaptation Strategy, if applicable.” ↑
Final legislative action on the FY 2026 – 2027 Proposition 4 appropriation has not occurred as of June 1, 2026. ↑
Proposition 50 was a voter initiative. ↑
PRC §80010 (Proposition 68), and Proposition 1 contains an earlier version of this language (PRC §§ 79705, 79706). ↑
As of June 1, 2026. ↑
ASSEMBLY THIRD READING
ATR Bill Id:AB 35
Author:(Alvarez)
As Amended Ver:January 14, 2026
2/3 vote. Urgency
SUMMARY
Exempts the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4, from the Administrative Procedures Act (APA).
Major Provisions
- Amend Proposition 4 to allow a state entity an exemption from the APA process if the state entity:
- Develops draft project solicitation and evaluation guidelines;
- Publishes the draft solicitation and evaluation guidelines on its internet website for a public comment period of at least 30 days; publishes public comments permitted by the commenter; and, responds to each public comment;
- Offers opportunity for tribal consultation to impacted tribes;
- Finalizes project solicitation and evaluation guidelines; and,
- Submits the final guidelines to the Secretary of the Natural Resources Agency (NRA) to verify the guidelines are consistent with applicable statutes and Proposition 4.
- Establish the bill as an urgency statute.
COMMENTS
Proposition 4 was approved by the voters on the November 5, 2024, statewide general election, authorizing $10 billion in general obligation bonds to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs.
The APA establishes rulemaking procedures and standards for state agencies in California. The average timeline for APA rulemaking varies, but generally requires about 12-18 months to complete a rulemaking, depending on complexity, public input, and Office of Administrative Law efficiency.
This bill adds an APA exemption to Proposition 4 to mirror the APA exemption provided in the past natural resource general obligation bonds for the development and adoption of program guidelines and selection criteria needed to effectuate or implement the programs included in the bond.
According to the Author
Proposition 4 reflects a clear mandate from California voters to accelerate investments in climate resilience, water quality, natural resources, and community protection. Voters approved these funds with the expectation that they would be deployed efficiently to address urgent environmental and public health challenges, including drinking water safety, flood protection, ecosystem restoration, and climate adaptation.
However, without an exemption from the APA, implementation of Proposition 4 funding faces unnecessary delays. Many administering agencies already operate established, transparent, and well-vetted guidelines, such as Intended Use Plans, competitive grant criteria, and public oversight processes that are routinely used to deploy similar bond funds. Requiring a duplicative APA rulemaking process would force agencies to create entirely new programs, divert staff resources, and delay funding for projects that are ready to move forward.
The Legislature has a long-standing precedent of authorizing APA exemptions for voter-approved bond measures, such as for all three recent climate bonds, and for complex infrastructure programs when timely deployment is essential. These exemptions do not eliminate accountability or public input; instead, they rely on existing statutory safeguards, board oversight, and reporting requirements to ensure transparency and responsible use of public funds.
AB 35 simply ensures Proposition 4 implementation as voters intended: swiftly, responsibly, and based on sound science and established practices. This APA exemption will allow state agencies to deliver critical investments to communities without delay, maximize the impact of bond funds, and respond effectively to California's pressing wildfire, climate infrastructure and clean water challenges.
Arguments in Support
A sign-on letter with more than 90 organizations writes that a full APA exemption would enable funds to be deployed more quickly and efficiently, ensuring that protracted administrative processes do not hold up vital community projects, and explains, "Importantly, an exemption from the APA does not eliminate transparency, consultation, or public engagement. Agencies will continue to follow robust fiscal, reporting, and oversight requirements. Many agencies have already gone through extensive public processes for these existing programs. Instead, the exemption will streamline implementation, maintain consistency across programs, and avoid creating barriers to delivering critical funding where it is most needed."
Arguments in Opposition
None on file
FISCAL COMMENTS
According to the Assembly Appropriations Committee, NRA, the Department of Water Resources, the Department of Parks and Recreation, the Department of Fish and Wildlife, the Department of Conservation, and the Department of Forestry and Fire Protection anticipate any costs associated with the bill to be absorbable within existing resources.
While the bill requires granting agencies to offer opportunities for public participation and tribal consultation and respond to public comments, according to NRA, it is already standard practice for grant programs to include opportunities for public input and tribal consultation on grant guidelines and selection criteria.
Exempting Proposition 4 programs from the full APA and emergency rulemaking processes may result in staff workload and cost savings to granting agencies.
VOTES
ASM NATURAL RESOURCES: 13-0-1
YES: Bryan, Alanis, Connolly, Ellis, Garcia, Haney, Hoover, Kalra, Macedo, Muratsuchi, Pellerin, Schultz, Zbur
ABS, ABST OR NV: Wicks
ASM APPROPRIATIONS: 15-0-0
YES: Wicks, Hoover, Stefani, Calderon, Caloza, Dixon, Fong, Mark González, Krell, Bauer-Kahan, Pacheco, Pellerin, Solache, Ta, Tangipa
UPDATED
VERSION: January 14, 2026
CONSULTANT: Paige Brokaw / NAT. RES. / (916) 319-2092 FN: 0002223
Date of Hearing: January 22, 2026
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 35
Author:(Alvarez) – As Amended Ver:January 14, 2026
Policy Committee: | Natural Resources | Vote: | 13 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill (1) exempts the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4, from the Administrative Procedures Act (APA), and (2) requires a state entity that receives funding to administer a competitive grant program established using the APA exemption to comply with specified transparency and public participation requirements.
Specifically, this bill:
1) Provides that the APA does not apply to the development and adoption of program guidelines and selection criteria needed to effectuate or implement the programs included in Proposition 4.
2) Requires a state entity that receives funding to administer a competitive grant program, established using the APA exemption, to do the following:
a) Develop and publish draft project solicitation and evaluation guidelines on its website for a public comment period of at least 30 days and respond to each public comment and requires all written public comments received be posted on the state entity’s website, unless indicated otherwise by the person who provided the written public comment.
b) Offer opportunity for tribal consultation to impacted tribes.
c) Finalize project solicitation and evaluation guidelines after completing the aforementioned requirements and submit the final guidelines to the California Natural Resources Agency (CNRA). Requires CNRA to verify that the guidelines are consistent with applicable statutes and for all the purposes enumerated in Proposition 4. Requires CNRA to post an electronic form of the guidelines submitted by a state entity and the subsequent verifications on CNRA’s website.
d) Exempts the State Water Resources Control Board from the requirement to submit final guidelines to the Secretary of CNRA.
e) Provides that if a state entity, before the effective date of this bill, developed and adopted project solicitation and evaluation guidelines that comply with the requirements of Proposition 4, the use of those guidelines constitute compliance with the requirements of this bill.
FISCAL EFFECT:
CNRA, the Department of Water Resources, the Department of Parks and Recreation, the Department of Fish and Wildlife, the Department of Conservation, and the Department of Forestry and Fire Protection – which are all receiving funding under Proposition 4 – anticipate any costs associated with the bill to be absorbable within existing resources.
While the bill requires granting agencies to offer opportunities for public participation and tribal consultation and respond to public comments, according to CNRA, it is already standard practice for grant programs to include opportunities for public input and tribal consultation on grant guidelines and selection criteria. Typically, new programs, or existing programs with significant revisions, prepare draft program guidelines, which are made available for public comment for a period (usually from 30 to 90 days) by posting draft guidelines to a public website, holding public virtual and in-person workshops, holding tribal roundtables, and offering tribal consultation. Opportunities for public comment are noticed through various communication channels. For funding provided through a governing board, guidelines must be posted publicly at least 10 days before a board action, per Bagley-Keene rules. The State Water Board follows a similar public process for the development and adoption of guidelines. State law also requires grant program information be posted on the state’s grant clearinghouse website. Therefore, it seems unlikely that the public process requirements outlined in the bill will result in significant new costs to state agencies.
The existing requirement in Proposition 4 to engage in the emergency rulemaking process (see background for more information) adds an additional step to the implementation timeline for a program by requiring the state entity to create regulations from existing guidelines, which can take significant staff time and legal counsel to prepare. Exempting Proposition 4 programs from the full APA and emergency rulemaking processes may result in staff workload and cost savings to granting agencies.
COMMENTS:
1) Purpose. According to the author:
The Legislature has a long-standing precedent of authorizing APA exemptions for voter-approved bond measures, such as for all three recent climate bonds, and for complex infrastructure programs when timely deployment is essential…AB 35 simply ensures Proposition 4 implementation as voters intended: swiftly, responsibly, and based on sound science and established practices. This APA exemption will allow state agencies to deliver critical investments to communities without delay, maximize the impact of bond funds, and respond effectively to California’s pressing wildfire, climate infrastructure and clean water challenges.
2) Background. Climate Bond. Proposition 4, approved by voters in November 2024, authorizes $10 billion in general obligation to finance projects that increase the state’s resilience to the impacts of climate change. The 2025-26 budget appropriated approximately $3.3 billion from the climate bond. The Governor’s January budget proposal for 2026-27 proposes an additional $2.1 billion to continue funding projects and programs.
APA. The APA establishes rulemaking procedures and standards for state agencies in California. The requirements set forth in the APA are designed to provide the public with a meaningful opportunity to participate in the adoption of state regulations and to ensure that regulations are clear, necessary, and legally valid. The average timeline for APA rulemaking varies but generally requires from 12 to 18 months to complete a rulemaking, depending on complexity, public input, and OAL efficiency.
Writing in support, a diverse coalition of organizations contends there are pressing issues such as border rivers, groundwater recharge, water recycling, and wildfire prevention that require immediate funding. The organizations note, however, that programs most able to spend funds quickly will be forced to needlessly restructure them to meet existing regulatory requirements in Proposition 4. The coalition writes:
For example, the SWRCB’s drinking water funding program will be adversely impacted since under the current rules, all funding sources within the program are covered under the SWRCB’s Intended Use Plan (IUP), which allows flexibility in which sources of funding are used for different projects, and the IUP includes Proposition 4 funds. Without the exemption from the APA process, the Prop 4 funding would have to be backed out of the IUP and limit the ability to use a broad mix of funding to achieve the State’s goals of providing a safe and reliable drinking water supply.
This bill adds an APA exemption to Proposition 4 to mirror the APA exemption provided in past natural resources general obligation bonds. However, the bill requires guidelines be posted on state entities’ websites as well as opportunities for public comment and engagement. The bill also retains the language in AB 149 (Committee on Budget), Chapter 106, Statutes of 2025, which allows regulations adopted under Proposition 4 to be adopted as emergency regulations, and allows those emergency regulations to remain in effect until repealed or amended by the adopting state agency.
Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081
Date of Hearing: January 12, 2026
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Isaac G. Bryan, Chair
ABPCA Bill Id:AB 35 (
Author:Alvarez) – As Amended Ver:January 5, 2026
SUBJECT: Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024: Administrative Procedure Act: exemption: program guidelines and selection criteria
SUMMARY: Exempts the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, approved by the voters as Proposition 4, from the Administrative Procedures Act (APA).
EXISTING LAW:
- Pursuant to the APA (Government Code 11340 et seq.)
- Establishes the Office of Administrative Law (OAL), charged with the orderly review of adopted regulations.
- Prohibits any state agency from issuing, utilizing, enforcing, or attempting to enforce any guideline, criterion, bulletin, manual, instruction, order, standard of general application, or other rule, which is a regulation as defined, unless the guideline, criterion, bulletin, manual, instruction, order, standard of general application, or other rule has been adopted as a regulation and filed with the Secretary of State pursuant to the APA.
- Authorizes any interested person to petition a state agency requesting the adoption, amendment, or repeal of a regulation, as provided.
- Requires OAL to review all regulations adopted, amended, or repealed and submitted to it for publication in the California Code of Regulations Supplement, transmittal to the Secretary of State, and to make determinations using specified standards. Establishes timeframes by which OAL must approve or disapprove a regulation after it has been submitted to OAL for review.
- Pursuant to the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 (Proposition 84), exempts the development and adoption of program guidelines and selection criteria adopted pursuant to the bond from the APA. (Public Resources Code (PRC) 75076)
- Pursuant to the Natural Resources Bond or the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All Act of 2018 (Proposition 68), exempts the development and adoption of program guidelines and selection criteria adopted pursuant to the bond from the APA. (PRC 80010 (e))
- Pursuant to the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Proposition 1), exempts from the APA the development or implementation of programs or projects authorized or funded under the bond, other than Chapter 8. (Water Code 79705)
- Pursuant to Proposition 4:
- Authorizes a regulation for the purpose of developing and adopting program guidelines and selection criteria needed to effectuate or implement the programs included in Chapters 2 through Chapter 9 to be adopted as an emergency regulation and requires an emergency regulation adopted pursuant to this bond to be filed with, but not be repealed by, OAL, and remain in effect until repealed or amended by the adopting state agency. (PRC 90135 (e))
- Authorizes the Legislature to enact legislation necessary to implement programs funded by the bond. (PRC 90115)
FISCAL EFFECT: Unknown
COMMENTS:
- Author’s statement:
Proposition 4 reflects a clear mandate from California voters to accelerate investments in climate resilience, water quality, natural resources, and community protection. Voters approved these funds with the expectation that they would be deployed efficiently to address urgent environmental and public health challenges, including drinking water safety, flood protection, ecosystem restoration, and climate adaptation.
However, without an exemption from the APA, implementation of Proposition 4 funding faces unnecessary delays. Many administering agencies already operate established, transparent, and well-vetted guidelines, such as Intended Use Plans, competitive grant criteria, and public oversight processes that are routinely used to deploy similar bond funds. Requiring a duplicative APA rulemaking process would force agencies to create entirely new programs, divert staff resources, and delay funding for projects that are ready to move forward.
The Legislature has a long-standing precedent of authorizing APA exemptions for voter-approved bond measures, such as for all three recent climate bonds, and for complex infrastructure programs when timely deployment is essential. These exemptions do not eliminate accountability or public input; instead, they rely on existing statutory safeguards, board oversight, and reporting requirements to ensure transparency and responsible use of public funds.
AB 35 simply ensures Proposition 4 implementation as voters intended: swiftly, responsibly, and based on sound science and established practices. This APA exemption will allow state agencies to deliver critical investments to communities without delay, maximize the impact of bond funds, and respond effectively to California’s pressing wildfire, climate infrastructure and clean water challenges.
- Proposition 4. Proposition 4 was approved by the voters on the November 5, 2024, statewide general election, authorizing $10 billion in general obligation bonds to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs.
- Administrative Procedures Act. The APA establishes rulemaking procedures and standards for state agencies in California. The requirements set forth in the APA are designed to provide the public with a meaningful opportunity to participate in the adoption of state regulations and to ensure that regulations are clear, necessary, and legally valid.
The average timeline for APA rulemaking varies, but generally require about 12-18 months to complete a rulemaking, depending on complexity, public input, and OAL efficiency. OAL, according to its 2024-2027 Strategic Plan, has 26 employees responsible for reviewing administrative regulations proposed by more than 200 state agencies for compliance with the standards in the APA, transmitting these regulations to the Secretary of State, and publishing regulations in the California Code of Regulations.
The APA has specified timelines for review that includes a minimum 45-day public comment period after notice of publication, agency review/response to comments (which can take weeks to months), and a mandatory 30-day working day review by OAL before filing.
AB 149 (Committee on Budget), Chapter 106, Statutes of 2025, adopted language allowing regulations adopted under Proposition 4 to be adopted as emergency regulations, and allows those emergency regulations to remain in effect until repealed or amended by the adopting state agency. This APA exemption is limited in scope compared to prior natural resource bonds, including Propositions 84, 68, and 1, which provided broader exemptions from the APA for the development and adoption of program guidelines and selection criteria.
- Amending voter-approved bonds. California’s general obligation bond law and state constitution provide specific guidance on whether the Legislature can amend general obligation bonds after they’re approved by voters.
California Constitution (Article XVI, § 1 and 2) generally states that once voters approve bond authorization, that law cannot be repealed or materially altered while debt remains outstanding. The General Obligation Bond Law reaffirms the constitutional provisions.
A modification, such as an APA exemption, is permissible as it is not a material change to the bond language approved by the voters, as evidenced by AB 149.
- Challenges with the APA process. Multiple state agencies implementing Proposition 4 funding are currently dealing with issues relating to the emergency regulatory authority and the APA process.
For example, the Wildlife Conservation Board (WCB) planned to have regulations considered by OAL on December 4, but withdrew their proposal after OAL provided indications they were going to reject them.
The regulatory process requires program guidelines to be written in a strict, formulaic way. For many programs, such as WCB’s, describing these programs that span millions of acres, dozens of ecosystems, and countless project types, in formulaic regulatory language has proven difficult and inefficient. WCB staff is now planning to re-do the regulations and bring it back to the WCB in February. If WCB approves them, they will go back to OAL for review.
Granting Proposition 4 funds to fund environmental projects as expeditiously as possible is especially time-sensitive. It is estimated that under the Trump Administration federal funding cuts and rescinded funding for environmental and clean energy programs in California is significant and irreplaceable – upwards of $7.7 billion in environmental and clean energy funds tied to California projects have been rolled back. Further, the Legislative Analyst’s Office estimates California faces an approximately $18 billion budget deficit for the 2026-27 fiscal year, which is larger than previously expected, with structural deficits projected to grow to $35 billion annually by 2027-28.
- Expanding the APA exemption. AB 35 adds an APA exemption to Proposition 4 to mirror the APA exemption provided in the past natural resource general obligation bonds for the development and adoption of program guidelines and selection criteria needed to effectuate or implement the programs included in the bond.
- Keeping sunshine on this climate bond. There are 21 provisions in Proposition 4 that make $1.82 billion available for entirely novel programs. Absent the APA process, the state could develop guidelines and regulations for these programs without any stakeholder input or transparency into the decision making. While the need to expedite this funding is real, new programs should not be developed behind closed doors. To ensure light is shed on the development processes of these new programs, the bill could be amended to require draft and final regulations to be posted on the respective state entity’s website and allow opportunities for public engagement.
- Committee amendments. The committee may wish to consider amending the bill to maintain PRC 90135 (e)(1)-(2) to maintain the Legislature’s adoption of emergency regulatory authority pursuant to AB 149, and requiring specified transparency and public participation requirements are met if the full APA exemption is exercised.
REGISTERED SUPPORT / OPPOSITION:
Support
Agricultural Institute of Marin
American Canyon Community & Parks Foundation
Association of California Water Agencies
Audobon California
Bay Area Council
Bay Area Ridge Trail Council
Bay Planning Coalition
Big Sur Land Trust
Bolsa Chica Land Trust
CalDesal
California Association of Local Conservation Corps
California Association of Resource Conservation Districts
California Association of Sanitation Agencies
California Climate and Agriculture Network
California Council of Land Trusts
California Fire Chiefs Association
California Habitat Conservation Planning Coalition
California Invasive Plant Council
California Local Conservation Corps Foundation
California Municipal Utilities Association
California State Association of Counties
California State Parks Foundation
California Stormwater Quality Association
California Tahoe Alliance
Calleguas Municipal Water District
Carbon Cycle Institute
Central California Environmental Justice Network
Cesar Chavez Environmental Corps
City of Sacramento
Civicorps
Clean Water Action
Climate Resolve
Coachella Valley Conservation Commission
Coastal Corridor Alliance
Collaborate Action Program
Community Water Center
Conservation Corps North Bay
Conservation Corps of Long Beach
County of San Diego
County of Sonoma
East Bay Regional Park District
East Contra Costa County Habitat Conservancy
Eastern Municipal Water District
El Dorado Water Agency
Endangered Habitats League
Fire District Association of California
Fresno Eoc Local Conservation Corps
Friends of Harbors, Beaches and Parks
Greater Valley Conservation Corps
Hi-desert Water District
Irvine Ranch Water District
Land Trust of Santa Cruz County
League of California Cities
Los Angeles Conservation Corps
Los Angeles Neighborhood Land Trust
Midpeninsula Regional Open Space District
Mission Springs Water District
Monterey One Water
Napa County Regional Park and Open Space District
National Audubon Society
Orange County Conservation Corps
Outdoor Outreach
Outward Bound Adventures
Peninsula Open Space Trust
Placer County Water Agency
Rails to Trails Conservancy
Resource Conservation District of Greater San Diego County
Rural County Representatives of California
Sacramento Area Sewer District
Sacramento Regional Conservation Corps
San Diego County Water Authority
San Diego Natural History Museum
San Diego Zoo Wildlife Alliance
San Diego; County of
San Gorgonio PASS Water Agency
San Joaquin Valley Water Collaborative Action Program
San Jose Conservation Corps
San Luis Delta-Mendota Water Authority
Santa Clara Valley Open Space Authority
Santa Clara Valley Water District
Santa Margarita Water District
Save Mount Diablo
Save the Redwoods League
Sempervirens Fund
Sequoia Community Corps
Sierra Consortium
Sloughhouse Resource Conservation District
Sonoma County Agriculture and Open Space
Sonoma Land Trust
Southern California Mountains Foundation
Southern California Water Coalition
Sustainable Conservation
Sweetwater Authority
Temecula-Elsinore-Anza-Murrieta Resource Conservation District
The Conservation Fund
The Freshwater Trust
The Nature Conservancy
The Wilderness Society
The Wildlands Conservancy
Upper San Luis Rey Resource Conservation District
Urban Corps of San Diego County
Valley Water
Water Blueprint for the San Joaquin Valley Advocacy Fund
Watereuse California
Wildfire Solutions Coalition
Opposition
None on file
Analysis Prepared by: Paige Brokaw/ NAT. RES. /
Discussed in Hearing
3MIN
Assembly Floor
2MIN
Assembly Floor
4MIN
Assembly Standing Committee on Appropriations
18MIN
Assembly Standing Committee on Natural Resources
Bill Author
Bill Co-Author(s):
