California Air Resources Board

Summary 

Would have converted the current General Fund (GF) sales and use tax (SUT) partial exemption for the purchase of manufacturing equipment into a full exemption by exempting the local and district portions of the existing SUT to incentivize manufacturing within the State. The full exemption would have commenced on January 1, 2023, and end on January 1, 2028, at which time the partial exemption would have been re-instated through 2030. As related to CARB, this bill would have maintained the annual transfer of specified moneys dedicated to backfilling the manufacturing SUT exemption from the Greenhouse Gas Reduction Fund to the GF.

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Governor’s Veto Message

To the Members of the California State Assembly:

I am returning Assembly Bill 1951 without my signature.

This bill replaces the current partial manufacturing sales tax exemption with a full exemption until January 1, 2028. This change would result in substantial revenue loss to local governments, which impacts essential health, safety, welfare, and transportation services. Assuming there are no changes in taxpayer behavior, local agencies are estimated to lose over half a billion dollars each year.

As a strong supporter of California 's business climate and manufacturing industry, I agree with the intent of this bill to invest in California's economy, incentivize innovation, and spur a manufacturing marketplace that is competitive nation-wide. However, we cannot ask our local governments to bear this loss in revenue.

With our state facing lower-than-expected revenues over the first few months of this fiscal year, it is important to remain disciplined. The Legislature sent measures with potential costs of well over $20 billion in one-time spending commitments and more than $10 billion in ongoing commitments not accounted for in the state budget. Bills with significant cost pressures, such as this measure, should be considered as part of the annual budget process. For these reasons, I cannot sign this bill.

I look forward to working with the Legislature and stakeholders to propose something on this topic next year.

Sincerely,

Gavin Newsom

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Summary

Among other provisions, would have expanded the content of CARB’s SB 150 Progress Report on the SB 375 program; would have required metropolitan planning organizations to submit data for the report, as feasible; would have required additional collaboration on the Strategic Growth Council’s AB 285 Report on the California Transportation Plan and Sustainable Communities Strategies (SCS); would have required local governments to submit a progress report one year after an SCS is accepted; and would have required the Department of Transportation to submit a proposal for a bicycle highway pilot program. Vetoed by the Governor.

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Governor’s Veto Message

To the Members of the California State Assembly:

I am returning Assembly Bill 1147 without my signature.

This bill adds new and modified reporting at the local and regional levels on compatibility of land use and transportation planning with greenhouse gas reduction goals and a proposal for a pilot program to create a network of bicycle highways.

Although the bill seeks to improve transparency to the Sustainable Community Strategies process, it does not require or incentivize regional and local governments to make land use decisions that change development and transportation patterns.

While I share the author's goal to align policies and promote the use of active transportation modes such as walking and biking, the bill is not necessary because state agencies are already collaborating on these policies and updating local requirements.

I proposed $7.6 billion to make key investments in a wide variety of critically necessary projects including high speed rail, transit connectivity projects in advance of the 2028 Los Angeles Olympics, active transportation, and a variety of other rail system improvements. Not only will these projects improve safety and access for bicyclists and pedestrians, they will significantly reduce greenhouse gas emissions and are key to meeting our state's climate objectives. I look forward to re-engaging with the Legislature to finalize and pass a comprehensive transportation package early next year.

Sincerely,

Gavin Newsom

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Summary

Would have established the California Deforestation-Free Procurement Act. The bill would have required a contractor, and specified subcontractors, for any contract entered, extended, or renewed on or after January 1, 2024, contracting with a State agency for the procurement of products comprised wholly or in part of forest-risk commodities, to certify that the commodities were not grown, derived, harvested, reared, or produced on land where tropical deforestation occurred on or after January 1, 2022.

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Governor’s Veto Message

To the Members of the California State Assembly:

I am returning Assembly Bill 416 without my signature.

This bill would require the Department of General Services to issue a Deforestation-Free Code of Conduct covering contracts involving "forest-risk commodities," including wood, paper, rubber, palm oil, beef, and soy. It would require state contractors that provide products to the state that include forest-risk commodities to have a No Deforestation, No Peat, No Exploitation (NDPE) policy and to make detailed certifications to the origin of each product. These contractors would be required to publicly disclose their supply chains back to the farm or forest where the commodity was grown or harvested.

Deforestation is a major contributor to the climate crisis that California and the world is facing right now. I share the author's commitment to preventing tropical deforestation. Unfortunately, this bill's extensive requirements would create a significant burden on California businesses - particularly small businesses - that are looking to participate in state contracts.

For example, under this bill, every time the state purchases a product that contains soy, the vendor providing that product would need to disclose the exact location where the soybeans were grown, who the farmer was, and where the soybeans were processed. Most small business suppliers do not have access to that information, and with nearly all the U.S. soybean supply coming from domestic producers, this requirement would place a significant burden on businesses without impacting the stated goal of preventing tropical deforestation.

For these reasons I cannot sign this bill; however, I remain committed to working with the author to advance our shared environmental goals and will consider future legislation that better targets those supply chains that directly impact tropical deforestation.

Sincerely,
Gavin Newsom

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Summary

Would have made eligible under the Jobs and Economic Improvement through Environmental Leadership Act of 2011 (AB 900, Buchanan, Chapter 345, Statutes of 2011) a category of transit projects that meet specified vehicle miles traveled requirements.  Was contingent on the enactment of SB 995 (Atkins), which did not receive Senate Concurrence.

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Governor’s Veto Message

To the Members of the California State Senate:

I am returning Senate Bill 757 without my signature.

This bill expands the types of environmental leadership projects eligible for streamlined judicial review through the Jobs and Economic Improvement Through Environmental Leadership Act of 2011(AB 900, Buchanan, Chapter 354, Statutes of 2011) to include zero-emission, public transit projects, provided the lead agency applies for the Governor's certification no later than January 1, 2023 and the project is approved no later than January 1, 2024.  The provisions of this bill are contingent on the enactment of Senate Bill 995 by Senator Atkins, which did not successfully pass in the Legislature.

While I support efforts to accelerate transit projects that reduce greenhouse gas emissions and reduce miles traveled, enactment of this bill is contingent on the successful statutory extension of the AB 900 statute by SB 995, which unfortunately failed passage in the Legislature.

For this reason, I am returning SB 757 without my signature.

Sincerely,

Gavin Newsom

View Governor’s veto message here

Summary

Would have expedited permitting and contracting requirements and California Environmental Quality Act procedures to facilitate the replacement of the Leroy Anderson Dam and Reservoir, required CARB to complete a greenhouse gas emission determination on specified project components, established requirements for greenhouse gas emission reduction mitigation measures, and authorized CARB to charge a fee for its work.  The greenhouse gas determination framework would have been similar to the Jobs and Economic Improvement through Environmental Leadership Act of 2011 (AB 900, Buchanan, Chapter 345, Statutes of 2011).

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Governor’s Veto Message:

To the Members of the California State Assembly:

I am returning Assembly Bill 3005 without my signature.

This bill would modify contracting requirements and prescribe expedited California Environmental Quality Act (CEQA) review and regulatory processes for various state agencies to facilitate projects for the Leroy Anderson Dam and Reservoir.

Notwithstanding the importance of completing projects at the Anderson Dam, the bill sets unrealistic timelines for state entities to expedite deliverables.  This will require staff to be diverted away from other critical projects throughout the state that are going through the CEQA process.  Although the Anderson Dam projects are a key element of dam safety, it is problematic to set a precedent for a special process and timeline for one project that may undermine the quality of review by departments.

Furthermore, a public works project of this magnitude will have significant environmental impacts, and therefore, review through the full CEQA process is necessary.

For these reasons, I am returning Assembly Bill 3005 without my signature.

Sincerely,

Gavin Newsom

View Governor’s veto message here

Summary

Would have, among other provisions, increased local planning requirements and guidelines for permitting development in Very High Fire Hazard Severity Zones, and directed local governments to develop retrofit strategies for structures in their communities that need fire hardening.  The bill would have also established a grant program for small jurisdictions, as defined, that contain very high fire risk areas.  Administered by the California Department of Forestry and Fire Protection, this grant program would have funded wildfire risk reduction planning activities.  This bill would have required CARB to compile the greenhouse gas quantification data for the grant program if the Greenhouse Gas Reduction Fund was identified as the funding source for the program.

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Governor’s Veto Message

To the Members of the California State Senate:

I am returning Senate Bill 182 without my signature.

This bill would impose certain fire hazard planning responsibilities on local governments and would require cities and counties to make specified findings on fire standards prior to permitting development in the very high fire hazard severity zone.

I strongly support strengthening land use planning requirements in order to better protect our communities from wildfire.  The importance of reducing the number and impact of fires in our communities cannot be overstated.  However, this bill creates inconsistencies, duplicates existing requirements, creates a loophole for regions to not comply with their housing requirements, fails to account for consequences that could increase sprawl and places significant cost burdens on the state.

New state laws and policies are already directing housing to communities near transit, jobs and urban centers and away from fire risk areas, including integration into the current housing planning cycle.  Additionally, the 2019-20 Budget requires the California Department of Housing and Community Development, in collaboration with the Governor's Office of Planning and Research, to develop recommendations to improve the regional housing need allocation process to promote and streamline housing development to address California's housing shortage.

Wildfire resilience must become a more consistent part of land use and development decisions.  However, it must be done while meeting our housing needs.

For these reasons, I am returning Senate Bill 182 without my signature.

Sincerely,

Gavin Newsom

View Governor’s veto message here