California Air Resources Board

Would have prohibited CARB from including avoided methane emissions from the carbon intensity calculations when evaluating or re-evaluating dairy and livestock fuel pathways in the Low Carbon Fuel Standard. Was not heard in the Assembly Agriculture Committee.

Would have required CARB, in administering the Low Carbon Fuel Standard, to deem a Tier 2 pathway application certified if CARB does not take action within 15 days or receipt, or if the application has been pending for more than 60 days as of January 1, 2024. The bill also would have required CARB to revise the alternative diesel fuel regulations to authorize the sale of alternative diesel fuel that contains up to 20% biodiesel by volume. Was not heard in the Assembly Transportation Committee.

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Would have exempted transportation fuels from the Cap-and-Trade program. This bill also would have required CARB to grant variances to gasoline specifications as specified and would have waived the Reid Vapor Pressure requirement to allow for the early transition to winter-blend gasoline when CARB determines the gasoline market is experiencing a sudden and unusual rise in prices. Failed passage in the Assembly Transportation Committee.

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Summary 

Would have required the California Energy Commission to form a 21-member Alternative Fuels Infrastructure Taskforce, upon appropriation by the Legislature, and would have required the taskforce to prepare a report by January 1, 2027, with information on existing fueling infrastructure and recommendations for how it might be used in conjunction with alternative fuels infrastructure at retail gasoline fueling stations, among other things.

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Governor’s Veto Message

To the Members of the California State Senate:

I am returning Senate Bill 983 without my signature.

This bill would require the California Energy Commission (CEC) to form the Alternative Fuels Infrastructure Task Force to conduct a study with information and recommendations on existing fueling infrastructure and how it might be used in conjunction with alternative fuels infrastructure at retail gasoline fueling stations.

This bill's implementation would result in additional cost pressure on the CEC's primary operating fund. Additionally, many provisions of this bill are duplicative of existing law, which requires the CEC, in consultation with various state entities, to prepare a transportation fuels transition plan.

For these reasons, I cannot sign this bill.

Sincerely,

Gavin Newsom

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Summary 

This bill requires the Department of Industrial Relations (DIR) and the California Workforce Development Board (CWDB) to create high road evaluation metrics and provide technical assistance to state agencies in their high road reporting requirements. Requires, by January 1, 2025, specified state agencies, including the California Air Resources Board (CARB) to enter into Memorandums of Understanding (MOUs) with the CWDB to incorporate high road evaluation metrics in the state agency’s procurement processes, contracts, and incentive programs. The bill also requires the MOUs to include advice and recommendations from CWDB to ensure state agency policies and regulated programs create or support high-quality jobs in the broadband, energy, resources, and transportation sectors and expand access to those jobs for priority populations through high-quality education and training.

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Governor’s Veto Message

To the Members of the California State Senate:

I am returning Senate Bill 822 without my signature.

This bill creates the lnteragency High Road Act and requires the Department of Industrial Relations (DIR) and the California Workforce Development Board [CWDB) to consult with stakeholders, including public input, on the development and evaluation of high road metrics. It also requires certain state agencies to enter into a memorandum of understanding (MOU) with the CWDB to incorporate high road evaluation metrics in the state agency's procurement processes, contracts, and incentive programs.

I strongly support efforts to maximize state and federal funding opportunities while delivering high quality jobs that increase opportunity for all communities and decrease disparities in historically disadvantaged areas. To further this work, I issued an Executive Order to accelerate clean infrastructure projects with an all-of-government strategy for planning and development and tracking progress toward equity goals that support disadvantaged communities - including good jobs. California's Infrastructure Strike Team is also driving collaboration across state agencies - including in the area of workforce training and development. Additionally, the Department of General Services and the Governor's Office of Business and Economic Development are supporting implementation of AB 2019 (2022), to advance equitable inclusion and utilization of small and diverse businesses in California's state procurement and contracting opportunities.

Additionally, I have signed several bills that ensure public contracting dollars are also investing in human infrastructure, including SB 150 that requires the Labor and Workforce Development Agency, Government Operations Agency, and the State Transportation Agency to convene relevant stakeholders and draft recommendations to ensure that investments maximize benefits to marginalized and disadvantaged communities. The recommendations are due by March 30, 2024.

It is advisable to allow time for those policies to be implemented before adding more requirements that may duplicate efforts.

For these reasons, I cannot sign this bill.

Sincerely,

Gavin Newsom

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Summary 

Would have required CARB to annually produce an assessment of the greenhouse gas emissions associated with the transportation of oil in California, as specified, and to include the assessment on CARB's internet website. Remains in the Senate Rules Committee.

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Summary 

Authorizes the CEC to set a maximum gross gasoline refining margin, petition a court to enjoin a refiner from exceeding the gross margin, and impose a civil penalty on a refiner for exceeding the gross margin. The bill requires CEC and CARB, by December 31, 2024, to prepare a Transportation Fuel Plan. The plan will be required to include how to ensure that the supply of petroleum and alternative transportation fuels is affordable, reliable, equitable, and adequate to meet the demand for those transportation fuels described in the most current scoping plan approved by the CARB.

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Summary 

This bill would have suspended the Low Carbon Fuel Standard regulation for one year and exempted suppliers of transportation fuels from the Cap-and-Trade program for one year. The bill would have also suspended motor vehicle fuel taxes and required the State Controller to transfer an amount equal to State motor vehicle fuel tax revenue from the General Fund to the Motor Vehicle Fuel Account. Finally, the bill would have  required the State Controller to transfer an amount equal to the sale of allowances to the suppliers of transportation fuels under the Cap-and-Trade program in the 2021-2022 fiscal year to the General Fund. Remains in the Senate Rules Committee.

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Summary 

Would have eliminated the requirement for CARB to credit dairy methane projects for a minimum of 10 years and prohibited

CARB from guaranteeing those credits if they would not otherwise generate credits in the program. The bill also  would have required CARB to include new specific emissions when calculating a carbon intensity value for dairy methane projects, limited credit generation to historical herd size, and required public disclosure of specified information in fuel pathway applications from dairy methane projects. Held on suspense in the Senate Appropriations Committee.

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Summary 

Would have required CEC to develop a plan, convene a public workshop process, and take specified actions to improve reliability, service quality, and operational uptime of hydrogen stations. The bill also would have required CEC to conduct an analysis of barriers to improving station performance and develop recommendations for doing so, including, but not limited to, an analysis of the use of a station ranking system and credits issued to hydrogen fueling stations under the LCFS to penalize and award retail hydrogen refueling stations based on their performance. Held on suspense in the Senate Appropriations Committee. 

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