California Air Resources Board

Summary

Would have prohibited the California Department of Forestry and Fire Protection from requiring applicants for a grant that receives funding from the Greenhouse Gas Reduction Fund to consider the greenhouse gas emissions impacts of vegetation management projects pursuant to the California Environmental Quality Act. Was not heard in the Senate Natural Resources and Water Committee. 

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Summary

Adds, as related to CARB, the Greenhouse Gas Reduction Fund to the list of State funds that the State Controller can transfer money from to the Collins-Dugan California Conservation Corps Reimbursement Account.

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Summary 

Would have, as related to CARB, authorized the Controller to transfer moneys, to the extent permissible, from the Greenhouse Gas Reduction Fund to the General Fund up to the amount of revenue lost as a result of the telecommuting tax credits, as defined and specified. Was not heard in the AssemblyRevenue and Tax Committee.

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Summary

Would have required that all State agencies that fund restoration efforts on Natural and Working Lands to prioritize restoration projects that have a permanent, enforceable mechanism to ensure that the project area will be managed in a way that ensures continuity of the State’s investment. Also, the bill would have required the California Department of Forestry and Fire Protection (CAL FIRE), on or before April 1, 2023, to submit a report to the Legislature that details how CAL FIRE will increasingly implement prescribed burn projects to burn at least 50,000 acres annually by January 1, 2025, and how the State will increasingly use, develop, implement, facilitate, and support prescribed burn, cultural fire, and achieve the extent of beneficial fire outcomes consistent with historic fire frequencies and maintaining desirable fuel loads. Held on suspense in the Assembly Appropriations Committee.

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Summary

Would have enacted the Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, and Workforce Development Bond Act of 2022, which, if approved by voters, would have authorized the issuance of bonds in the amount of $7.43 billion to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, and workforce development programs. The bond would have allocated $30 million to CARB, and would have required CARB to consult with the California Natural Resources Agency and the California Department of Forestry and Fire Protection to fund projects that provide long-term capital infrastructure to convert forest and other vegetative waste removed for wildfire mitigation to uses that maximize reductions in greenhouse gas emissions, provide local air quality benefits, and increase local community resilience against climate change impacts. Held on suspense in the Assembly Appropriations Committee.

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Summary

Would have continuously appropriated to CARB beginning in the 2023–24 fiscal year, 20 percent of the annual proceeds of the Greenhouse Gas Reduction Fund, up to $600,000,000, for allocation to local air districts for the purpose of supporting community emissions reduction strategies in, and reimbursement for participation by, communities selected by CARB, as specified. The bill was not heard in the Senate Environmental Quality Committee.

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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 

Would have created the Youth Transit Pass Pilot Program, administered the California Department of Transportation (CalTrans), to provide grants to transit agencies for free youth transit passes to attending educational institutions, as defined. Amended to remove greenhouse gas reductions and vehicle miles travelled from the bill.

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Summary 

Exempts the California Department of Forestry and Fire Protection grant programs that receive Greenhouse Gas Reduction Fund dollars for healthy forest, fire prevention programs, prescribed fire, and other fuel reduction grant programs from the employer and procurement standards established by AB 680 (Burke, Chapter 746, Statutes of 2021).

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Summary

Would have required the California Natural Resources Agency to develop and implement a fuels transportation program that provides grants to eligible communities to offset the cost of transporting fuels to a biomass energy facility. The bill would have also made funds from the Greenhouse Gas Reduction Fund available to facilitate the grant program. Failed passage in the Assembly Natural Resources Committee.

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