According to the Franchise Tax Board, For California purposes, forgiven PPP loans, SVO grants, and RRF grants are excluded from gross income. On September 29, 2022, AB 158 was enacted to add an operative date of January 1, 2019 for the PPPEA to ensure taxpayers that had loans made during PPPEA would be eligible for the income exclusion and other applicable tax treatment.
See here for further details.
If the loan forgiveness was excluded on the Federal return, it doesn't need to be adjusted on the California return.