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

Senator Stern's methane emissions reduction proposal would require California state agencies to prioritize strategies targeting methane from imported petroleum and natural gas sources, while establishing new certification standards for low-emission producers. The California Air Resources Board would need to create certification criteria by December 2026 for petroleum and natural gas operations demonstrating methane emissions intensity below 0.2% across their supply chains. State procurement would then be encouraged to shift toward these certified low-emission sources where feasible and cost-effective.

The bill expands existing emissions tracking requirements by directing the Air Resources Board to annually collect and publish data from utilities and major gas users about their use of certified low-methane fuels and emissions reduction practices. Starting in 2026, the board would also need to estimate potential greenhouse gas reductions achievable through wider adoption of certified low-methane fuels and best practices. The legislation specifies that these provisions do not mandate new fossil fuel procurement or override current environmental regulations.

The measure builds on findings that methane from out-of-state natural gas production represents California's second-largest source of methane emissions, exceeding in-state oil and gas operations. While California has implemented methane controls on in-state sources, approximately 90% of its natural gas supply comes from other states. The bill aims to address this gap by creating incentives for producers serving California to minimize methane releases, similar to existing policies for imported electricity and transportation fuels.