AB 1243: Polluters Pay Climate Superfund Act of 2025.
The bill establishes a program to require fossil fuel polluters to pay their fair share of the damage caused by greenhouse gases released into the atmosphere. The program, called the Polluters Pay Climate Superfund, will be administered by the California Environmental Protection Agency. The agency will identify responsible parties, which are entities with a majority ownership interest in fossil fuel businesses that have emitted over 1 billion metric tons of greenhouse gases globally. The agency will conduct a climate cost study to quantify the total damage amount from 1990 to 2045, and then determine a cost recovery demand for each responsible party based on their proportionate share of the total damage amount. Responsible parties will be required to pay their cost recovery demands, with collected funds deposited into the Superfund. The funds will be used to mitigate, adapt, or respond…
| Feb. 02, 2026 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
| Jan. 31, 2026 | Died pursuant to Art. IV, Sec. 10(c) of the Constitution. |
| Apr. 29, 2025 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Apr. 22, 2025 | Coauthors revised. |
| Apr. 22, 2025 | From committee: Do pass and re-refer to Com. on JUD. (Ayes 9. Noes 4.) (April 21). Re-referred to Com. on JUD. |
| Amended IN Assembly April 10, 2025 |
| Amended IN Assembly April 07, 2025 |
| Introduced by Assembly Member Addis (Coauthors: Assembly Members Connolly, Garcia, Haney, Kalra, Rogers, and Ward) (Coauthors: Senators Allen, Gonzalez, Menjivar, Stern, and Wiener) |
February 21, 2025 |
LEGISLATIVE COUNSEL'S DIGEST
The people of the State of California do enact as follows:
SECTION 1.
This act shall be known, and may be cited, as the Polluters Pay Climate Superfund Act of 2025.SEC. 2.
(a) The Legislature finds and declares all of the following:(7)
SEC. 3.
Part 4.8 (commencing with Section 71370) is added to Division 34 of the Public Resources Code, to read:PART 4.8. Polluters Pay Climate Superfund Act of 2025
CHAPTER 1. Definitions
71370.
For purposes of this part, the following definitions apply:CHAPTER 2. Polluters Pay Climate Superfund Program
71371.
(a) There is hereby established the Polluters Pay Climate Superfund Program to be administered by the agency.71371.1.
(a) A responsible party, as determined by the agency pursuant to Section 71371.2, shall be strictly liable for a cost recovery demand.71371.2.
Within 90 days of the effective date of this part, the agency shall determine and publish on its internet website a list of responsible parties subject to this part. The agency may update the list from time to time, as appropriate.71371.3.
(a) The agency shall conduct or commission a climate cost study and the study shall be completed within one year of the effective date of this part.71371.4.
(a) Within 60 days of the completion of the climate cost study, the agency shall determine and assess a cost recovery demand upon each responsible party by doing all of the following:71371.5.
(a) The agency shall establish procedures for an entity to challenge its designation as a responsible party under Section 71371.2 or its cost recovery demand established pursuant to Section 71371.4.71371.6.
The agency shall establish funding criteria and guidelines in accordance with the climate cost study for programs and projects that are eligible as qualifying expenditures funded from moneys collected pursuant to this chapter.71371.7.
Until December 31, 2045, every five years after the effective date of this part, the Legislative Analyst’s Office shall conduct an independent evaluation of the Polluters Pay Climate Superfund Program to be provided to the Governor, the President pro Tempore of the Senate, and the Speaker of the Assembly. The purpose of this evaluation shall be to determine the effectiveness of the program in achieving its purposes as described in this chapter and to provide recommendations for improving program administration.CHAPTER 3. Polluters Pay Climate Superfund
71372.
(a) There is hereby established the Polluters Pay Climate Superfund in the State Treasury. Moneys in the fund shall, upon appropriation by the Legislature, be used to implement the program pursuant to Chapter 2 (commencing with Section 71371), including qualifying expenditures, and to reimburse any outstanding loan made from other funds used to finance the initial costs of the agency’s activities in implementing this part. Moneys in the fund shall not be expended for any purposes not specified in this part.71372.1.
Moneys in the fund shall be expended on qualifying expenditures in accordance with the findings of the climate cost study and updates to the study and guidelines and criteria established pursuant to Section 71371.6 so that both of the following occur:71372.2.
If any expenditure of moneys from the fund for any project or program is determined by a court to be inconsistent with law, the funding for the remaining projects or programs shall be severable and shall not be affected by the determination.CHAPTER 4. Miscellaneous Provisions
71373.
Within 45 days of the effective date of this part, the Director of Finance shall perform an initial assessment of the reasonable and appropriate initial implementation costs as described in Section 71373.3.71373.1.
In implementing this part, the agency shall conduct regular consultations with the Integrated Climate Adaptation and Resiliency Program, the State Air Resources Board and the Environmental Justice Advisory Committee of that state board, the State Water Resources Control Board, the Natural Resources Agency, the State Energy Resources Conservation and Development Commission, the Office of Emergency Services, the Strategic Growth Council, the State Department of Public Health, the Office of Environmental Health Hazard Assessment, the California Coastal Commission, the Public Utilities Commission, the Attorney General, and other appropriate public agencies and nongovernmental entities.71373.2.
(a) Within 180 days of the effective date of this part, the agency shall adopt all regulations, including those establishing requirements for projects and programs eligible for funding from the fund, necessary to carry out this part.71373.3.
(a) Within 120 days of the effective date of this part, the agency shall determine the initial implementation costs, including the costs of the initial climate cost study, the development and adoption of regulations to implement this part, and other appropriate initial program implementation costs.71373.4.
The agency and the Attorney General shall have the authority to enforce the requirements of this part and to assess fees for late payments of cost recovery demands pursuant to Chapter 2 (commencing with Section 71371) or the charge assessed under Section 71373.3. The late fees shall accrue daily, assessed at the rate of 10 percent per annum, on amounts remaining due.71373.5.
The Secretary of State shall have the authority to revoke or suspend the business license of a responsible party that fails to comply with this part.71373.6.
(a) This part does not do either of the following:71373.7.
The remedies provided in this part are in addition to other remedies provided by law. This part does not limit a party’s right, including the agency, other governmental bodies, or private individuals, from pursuing civil action or other remedies provided by law, or to capture additional costs not recovered by this part.71374.
The provisions of this part are severable. If any provision of this part or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.SEC. 4.
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: