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View Fact Sheet - AB 1243

Rules & Legislation Committee
October 16, 2025

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View Fact Sheet - AB 1243
Meeting
October 16, 2025
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Rules & Legislation Committee
Original file
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Text extracted from the city's file for reading and search. Open the original on oakland.legistar1.com. That file is the official record.

Updated May 22, 2025

SUMMARY
AB 1243, the Polluters Pay Climate Superfund
Act of 2025, establishes a program in California’s
Environmental Protection Agency (CalEPA) to
assess fees on the largest fossil fuel polluters for
their fair share of the damage their products have
inflicted on California. The fees will initially pay
for a cost study to quantify climate impacts to the
state and later fund projects and programs to
mitigate, remedy, and prevent climate change
costs and harms.

Without this bill, California taxpayers will continue
to pay for the costs of climate damage, while the
polluters responsible—who have raked in
massive profits exploiting the environment—
avoid paying their fair share.

BACKGROUND
The climate crisis is a fossil fuel crisis. Fossil
fuels account for nearly 90% of all CO2 emissions
and more than 75% of global greenhouse gas
emissions. Published, peer-reviewed research
using polluters' own self-reported data shows
that about two-thirds of human-caused CO2 and
methane emissions come from just 90 of the
world's largest fossil fuel companies. These
polluters have profited by producing and selling
fossil fuels while shifting the burden of their
pollution costs onto California families, forcing
taxpayers to pay the price for the damage their
products have caused.

The idea of a “Climate Superfund” is not a new
concept. There is precedent for government
entities to seek compensation from companies
whose products caused harm to their citizens.

Dating back to the 1990s, California has
implemented a law assessing compensatory fees
against lead paint and leaded gas producers to
fund programs to screen and treat lead poisoning
in children. In addition, the federal Superfund
law, the Comprehensive Environmental
Response, Compensation, & Liability Act of 1980
(CERCLA), imposes retroactive liability on
multiple parties, including the generators of
waste, for the cleanup of contaminated sites.

PROBLEM
The climate crisis is costing Californians billions
every year. The recent Los Angeles wildfires are
just the latest example of the escalating harms
Californians face from climate-fueled disasters.

The fires killed at least 29 people, destroyed
thousands of homes, displaced nearly 200,000
people, and caused more than $250 billion in
damages and losses.

The climate crisis will only continue to exacerbate
these disasters and worsen our affordability
crisis. California’s Fourth Climate Assessment
estimated that by 2050, the direct economic
impacts of climate change will be at least $113
billion every year. That projection does not
include loss of human life or property due to
wildfires or ecological impacts due to wildfire,
floods, or drought.

Polluters must take responsibility for their share
of the burden and pay for the damages their
pollution caused. It is imperative that we act now
to ensure the health, safety and economic
security of our communities. Unless something
changes, the state, tribes, local governments,
and taxpayers will be stuck paying these
multibillion-dollar bills for climate damage.

SOLUTION
AB 1243 takes an important step to address our
climate crisis and help working families by
requiring the world’s largest fossil fuel polluters to
compensate Californians for the damage caused
AB 1243: Polluters Pay Climate Superfund Act of 2025

Updated May 22, 2025
by their products. Specifically, it will require
CalEPA to:
 Complete a comprehensive statewide
study to establish the cost of climate
damages to the state of California through
2045
 Identify responsible parties, fossil fuel
producers that did business in California
and emitted more than one billion metric
tons CO2-equivalent from the extraction,
refining, and combustion of their products
during the covered time period of 1990
through 2024
 Assess and collect fair and proportionate
fees from responsible parties to be paid
into the Polluters Pay Climate Superfund
 Allocate expenditures from the fund, per
Legislative guidance, to projects
supporting climate resilience, mitigation,
and infrastructure that support
communities, businesses, and workers.

AB 1243 will save Californians money. The bill
ensures that the fees collected will fund projects
and programs to remedy or prevent climate-
related costs and harms. It also prioritizes labor
and job standards and dedicates at least 40% of
the funds to benefit disadvantaged communities.

Californians have paid enough; it’s time for
polluters to pay so taxpayers don’t have to.

SUPPORT
 California Environmental Voters (co-
sponsor)
 Campaign for a Safe and Healthy
California (co-sponsor)
 Center for Biological Diversity (co-
sponsor)
 1000 Grandmothers
 198 Methods
 350 Bay Area Action
 350 Conejo / San Fernando Valley
 350 Contra Costa Action
 350 Humboldt
 350 Sacramento
 350 Santa Barbara
 350 Southland Legislative Alliance
 350 Ventura County Climate Hub
 350.org
 350 Marin
 Alliance of Californians for Community
Empowerment (ACCE)
 Action for the Climate Emergency
 Active San Gabriel Valley
 American Academy of Pediatrics,
California
 American Federation of State, County,
and Municipal Employees (AFSCME),

AFL-CIO
 American Lung Association
 Asian Pacific Environmental Network
 Avaaz
 Azul
 Ballona Institute
 Bay Area-System Change not Climate
Change
 Benioff Ocean Science Laboratory
 Better APC
 Better Future Project
 Beyond Extreme Energy
 Bicycling Monterey
 Biofuelwatch
 Black Women for Wellness Action Project
 CA Youth vs. Big Oil
 California Association of Professional
Employees
 California Businesses for Climate Justice
 California Calls
 California Climate Voters
 California Environmental Justice Alliance
Action
 CFT – A Union of Educators & Classified
Professionals
 California Green New Deal Coalition
 California Institute for Biodiversity
 California Interfaith Power & Light
 California Nurses Association
 California Nurses for Environmental
Health and Justice
 Californians Against Waste
 Carbon Cycle Institute
 CCAN Action Fund
 Center for Community Action and
Environmental Justice
 Center for Developing Leadership in
Science
 Center on Race, Poverty & the
Environment
 Central California Asthma Collaborative

Updated May 22, 2025
 Central California Environmental Justice
Network
 CERBAT
 Church and Society of First Presbyterian
Church of San Anselmo
 Clean Water Action California
 CleanEarth4Kids.org
 Climate Action California
 Climate Action Campaign
 Climate Defenders
 Climate Equity Policy Center
 Climate First: Replacing Oil & Gas
(CFROG)
 Climate Hawks Vote
 Climate Health Now
 Climate Reality Project – Orange County
 Climate Reality Project – San Francisco
Bay Area
 Climate Reality Project – California
Coalition
 Climate Reality Project - San Diego
 Climate Reality Project - San Fernando
Valley Chapter
 Coalition for Clean Air
 Coalition for Humane Immigrant Rights
(CHIRLA)
 Coastal Defenders
 Coastal Lands Action Network
 Communities for a Better Environment
 Conejo Climate Coalition
 Consumer Attorneys of California
 Consumer Watchdog
 Courage California
 Culver City Democratic Club
 Dayenu: A Jewish Call to Climate Action
 Defend Ballona Wetlands
 Democrats of Rossmoor
 Dr. Bronner's
 Earth Ethics
 Eco Office of ASUC Senator China Duff
 Ekō
 Elders Climate Action
 Elected Officials to Protect America
 Endangered Habitats League
 Environmental Center of San Diego
 Environmental Defense Center
 Evergreen Action
 Extinction Rebellion San Francisco Bay
Area
 FACTS – Families Advocating for
Chemical and Toxics Safety
 Food & Water Watch
 Fossil Free California
 Fossil Free Media
 FracTracker Alliance
 Fridays for Future Sacramento
 Friends Committee on Legislation of
California
 Friends of the Earth
 Friends of the River
 Glendale Environmental Coalition
 Good Neighbor Steering Committee of
Benicia
 GreenFaith
 Greenpeace USA
 GRID Alternatives
 Human Impact Partners
 IKAR
 ILWU Northern California District Council
 Immaculate Heart Community
Environmental Commission
 Indivisible Marin
 Indivisible California: StateStrong
 Little Manila Rising
 Long Beach Alliance for Clean Energy
 Los Angeles Climate Reality Project
 Los Angeles County Democratic Party
 Los Angeles Faith & Ecology Network
 Make Polluters Pay National Campaign
 Mill Valley Seniors for Peace
 Mothers Out Front Silicon Valley
 Move LA
 Natural Resources Defense Council
 NextGen California
 No Drilling Contra Costa
 NorCal Elder Climate Action
 Oil and Gas Action Network
 Oil Change International
 Our Revolution
 Our Time to Act
 Oxfam America
 Pacific Environment
 Physicians for Social Responsibility – Los
Angeles
 Physicians for Social Responsibility – San
Francisco Bay Area
 Physicians for Social Responsibility –
Pennsylvania
 Physicians for Social Responsibility –
Sacramento
 PODER

Updated May 22, 2025
 Presente.org
 Protect Monterey County
 Protect Playa Now
 Public Citizen
 Reclaim Our Power!
 Redeemer Community Partnership
 Resilient Palisades
 Rise Economy
 Rising Sun Center for Opportunity
 RootsAction.org
 San Diego Pediatricians for Clean Air
 San Francisco Baykeeper
 SanDiego350
 Santa Cruz Climate Action Network
 Santa Cruz County Democratic Central
 Committee
 SEE (Social Eco Education)
 Seventh Generation
 Sierra Club California
 SoCal 350 Climate Action
 Society of Native Nations
 Spottswoode Winery, Inc.
 Strategic Concepts in Organizing and
Policy Education (SCOPE)
 Sunflower Alliance
 Sunrise Bay Area
 Sunrise Movement
 Sunrise Movement LA
 Sustainable Mill Valley
 Sustainable Rossmoor
 Synergistic Solutions
 The Climate Center
 The Phoenix Group
 The Story of Stuff Project
 The Wendy and Eric Schmidt Center for
Data Science & Environment at UC
Berkeley
 Third Act
 Third Act Bay Area
 Third Act Sacramento
 Third Act SoCal
 Third Act Upstate New York
 TIAA-Divest!
 Transition Sebastopol
 UNIDOS Network Inc.
 Vote Solar
 Voters of Tomorrow
 Voting 4 Climate & Health
 West Berkeley Alliance for Clean Air and
Safe Jobs
 WildEarth Guardians
 Youth For Earth
 Youth v. Oil
 Youth Will
 Youth4Climate

CONTACT
Kylie Baranowski, Legislative Director
916-319-2030 | [email protected]

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