Health and Safety Code section 38590.1
(a)
It is the intent of the Legislature that moneys collected from the auction or sale of allowances pursuant to a market-based compliance mechanism established pursuant to this division shall be appropriated to include, but need not be limited to, the following priorities at the time an expenditure plan is adopted:(1)
Air toxic and criteria air pollutants from stationary and mobile sources.(2)
Low- and zero-carbon transportation alternatives.(3)
Sustainable agricultural practices that promote the transitions to clean technology, water efficiency, and improved air quality.(4)
Healthy forests and urban greening.(5)
Nature-based climate solutions, as defined in Section 38561.5.(6)
Short-lived climate pollutants.(7)
Climate adaptation and resiliency.(8)
Climate and clean energy research.(b)
Upon request of the chair of the Joint Legislative Committee on Climate Change Policies or the chair of the relevant budget subcommittees, the state board and any other agencies that have implemented programs funded using moneys collected from the auction or sale of allowances pursuant to a market-based compliance mechanism established pursuant to this division shall annually appear before the Joint Legislative Committee on Climate Change Policies and the relevant budget subcommittees of the Legislature to give a presentation on the expenditures of those moneys.(c)
This section shall remain in effect only until January 1, 2046, and as of that date is repealed.
Source:
Section 38590.1, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=HSC§ionNum=38590.1. (updated Sep. 19, 2025; accessed Nov. 3, 2025).