The GHG Loan Program supports Assembly Bill 32 (Statutes of 2006) that requires the Air Resources Board to adopt a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions levels in 1990 to be achieved by 2020. The program also assists local jurisdictions in achieving or assuring continued compliance with several mandates:

The GHG Loan Program was established under Senate Bill 862 (Statutes of 2014) and statutes are located in Public Resources Code sections 42995-42999. The GHG loan criteria for fiscal year (FY) 2015–16 were approved on October 15, 2015.