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 

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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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 $7.08 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 require 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 the greenhouse gas emissions, provide local air quality benefits, and increase local community resilience against climate change impacts. Remains in the Assembly Rules Committee. 

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Summary

Would have created the Joint Legislative High-Speed Rail Oversight Committee consisting of three members of the Senate and three members of the Assembly to provide ongoing and independent oversight of the high-speed rail project by performing specified duties. The bill would have required the committee to make recommendations to the appropriate standing policy and budget committees of both houses of the Legislature to guide decisions concerning the State’s programs, policies, and investments related to high-speed rail. Was not heard in the Assembly Transportation Committee.

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Summary

Would have enacted the Clean Economy and Clean Jobs Stimulus Act of 2021 and require the Department of Water Resources (DWR) to procure newly developed eligible energy resources, and energy storage facilities associated with those resources, in an amount that satisfies 100 percent of the electricity procured to serve all State agencies by December 31, 2030. Additionally, the bill would have allowed DWR to recover the costs of any eligible energy resources it procures on behalf of State agencies from the Greenhouse Gas Reduction Fund. Was not heard in the Assembly Utilities and Energy Committee.

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Summary

Would have provided a partial income tax exemption to a resident leasing a solar electric generation system if the solar electric generation system is used to comply with specified State buildings standards and the tangible personal property on a rental property is used in specified activities. This bill would have also required a transfer of the total dollar amount of solar tax exemptions provided by this bill from the Greenhouse Gas Reduction Fund to the General Fund. Was not heard in the Assembly Revenue and Taxation Committee. 

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Summary

Would have authorized a public entity to use, enter into, or require contractors to enter into, a community workforce agreement for construction projects, as specified, including projects related to renewable energy and installation of emission controls in refineries. Amended to deal with personal service contracts.

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Summary

Would have required the California Natural Resources Agency (CNRA) to provide a basic level of technological support to community organizations for wildfire risk reduction and resiliency, including technology for data, geospatial mapping, and data management, as well as software and limited technical support. The bill would have required CNRA to structure this wildfire technology support in the same way that technology support is provided for similar services for wildfire-program building, outreach, and planning. The bill would have been contingent on a $5 million appropriation from the Greenhouse Gas Reduction Fund each year through the 2023–24 fiscal year to CNRA for purposes of providing the technological support described above. Was not heard in the Assembly Natural Resources Committee.

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