California Air Resources Board

Would have removed references to non-federally recognized tribes and tribal organizations in the Government-to-Government Consultation Act, as well as introduced a new definition for “California tribe" that includes all Native American tribes on the contact list maintained by the California Native American Heritage Commission. The bill would have also required State agencies to consult with a tribe upon request and within 60 days, instead of just encouraging consultation. The consult would have been required to include communication that meets the needs of diverse cultures and education levels, and state agencies would have had to make multiple attempts to engage with tribes in different formats. Amended to deal with the Tribal Housing Grant Program Trust Fund.

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Would have required, under the California Environmental Quality Act (CEQA), the creation of an environmental impact report, negative declaration, mitigated negative declaration for any project that substantially expands or intensifies industrial activity if the project is half a mile or closer to an overburdened community. The bill would have also required, by July 1, 2027, specified CEQA notices to be translated into all languages spoken by 5% or more of the local agency jurisdiction’s population. The bill also would have set new requirements for additional notices, in-hearing translation, hearing locations, and hearing times (5pm-9pm only). The bill would have prohibited a small inaccuracy in the translation of a document from being a reason for undoing a public agency decision. Held on suspense in the Assembly Appropriations Committee.

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Would have required every State agency or department subject to the Governor’s authority to develop or update their strategic plan(s) to more effectively advance racial equity. Agencies and departments would have needed to inform the plan with input from historically disadvantaged and underserved communities served by the departments’ programs. The bill would have also required departments to undertake a racial equity analysis before implementing any budget or regulation start date. Held on suspense in the Assembly Appropriations Committee.

Would have created an Office of Civil Rights within CARB, given funding is provided from the Legislature. The bill would have required the office to provide training on civil rights obligations to board staff, grantees, contractors, and subrecipients; develop a civil rights evaluation tool; and ensure language access in public engagement processes. The bill would have also required CARB to post online a yearly summary of information about the office, including a summary of civil rights complaints received by the office and a description of compliance and enforcement efforts. Held on suspense in the Senate Appropriations Committee.

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Would have amended existing statute regarding automated license plate recognition (ALPR). The bill would have required operators and end-users to have greater safeguards relating to employee access and usage of such systems. The bill would have required, as of January 1, 2028, a public agency to archive all ALPR information, within 14 days, that has been held for 60 days, unless it is retained in the evidence file of an active investigation or criminal proceeding or matches information on an authorized hot list. The bill would have prohibited public agencies from querying archived ALPR information except pursuant to a warrant from a California court. The bill exempts CARB, and other specified public agencies, from the definition of “public agency.” Was not heard on the Assembly Floor.

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Would have revoked all CARB authority to adopt, revise, or repeal regulations and declares that any law granting authority to or requiring CARB to adopt, revise, or repeal regulations, or take an action that requires exercising regulatory authority, instead be read as only authorizing CARB to provide advice and propose measures to the Legislature for statutory enactment. The bill would have required CARB to provide advice and propose measures to the Legislature for statutory enactment regarding its duties. The bill would have declared that it does not invalidate or repeal any regulation adopted by CARB before January 1, 2026. Failed passage in the Senate Environmental Quality Committeeand was granted reconsideration.

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Would have allowed any member of the governing board of CARB to be removed from office by the Legislature, by concurrent resolution adopted by a majority vote of all members elected to each house, for dereliction of duty or corruption or incompetency. The bill would have required CARB to submit a proposed regulation that has costs exceeding $10 million on California consumers to the Legislative Analyst for an independent economic analysis. The bill would have required CARB to prepare and publish on its website a written response to the Legislative Analyst’s report no less than 30 days before adopting the proposed regulation. The bill also would have required CARB to publish on its website all final resolutions, supporting documents, and proposed regulations in their complete and final form no less than 72 hours before any CARB vote. Once published, the bill would have prohibited amendments, revisions, or alterations to the final resolutions, supporting documents, or proposed regulations before CARB’s vote. Failed passage in the Senate Environmental Quality Committeeand was granted reconsideration.

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Would have prohibited CARB from adopting any regulation or rule that would have added more than $0.02 to the cost of a gallon of gasoline or added $2,000 or more to the cost to build any home. The bill would have prohibited the South Coast Air Quality Management District (SCAQMD) from adopting any regulation or rule that would have added more than $0.02 to the cost of a gallon of gasoline, added $2,000 or more to the cost to build any home, or added $5,000 or more to the cost to build a nonresidential building. The bill would have required CARB, as well as SCAQMD, to submit data to the relevant policy committees of the Legislature demonstrating how a proposed regulation is compliant with this prohibition. Was not heard in the Assembly Natural Resources Committee.

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Would have required a State agency providing a grant or contract to a federally recognized tribe or private nonprofit, under certain conditions, to pay a portion of the money to the grantee in advance. The bill would have required State agencies to state the percentage that may be given in advance in the solicitation for the grant or contract. This bill requires, by July 1, 2027, the Strategic Growth Council to develop a Statewide Advance Funds and Reconciliation Guide (Master Guide), as specified. The bill requires every State agency to adopt the Master Guide as its standard operating procedure for the disbursement, tracking, and reconciliation of advance payments, as provided.

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Governor’s Veto Message

To the Members of the California State Assembly:

I am returning Assembly Bill 1039 without my signature.

This bill would require state agencies to provide advance payments for certain grants and contracts awarded to eligible nonprofit organizations and federally recognized tribes, and establish a statewide3 framework to administer and reconcile those payments.

While I appreciate the author's goal of reducing financial barriers for nonprofits and tribes, imposing a new statewide requirement would severely limit the state's oversight and protection of public funds. I signed AB 590 in 2023 and AB 3017 in 2024, which provided agencies with authority to process advance payments for these entities. It is important to ensure agencies maintain discretion to evaluate the financial and programmatic risks of each request for advance payments. I encourage the author and stakeholders to continue engaging with administering agencies to help ensure they are utilizing the existing authorization to the fullest extent possible when appropriate.

For these reasons, I cannot sign this bill.

Sincerely,

Gavin Newsom

View Governor’s veto message here

Would have required that CARB members from local air districts receive the annual salary provided to other members of CARB. Held on suspense in the Senate Appropriations Committee.

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