California Air Resources Board

Summary

Would have required the Legislative Analyst’s Office to analyze regulations enacted on or after January 1, 2016, to December 31, 2022, inclusive, that affect the State’s economic supply chain and the transportation of goods and submit a report of its findings to the Legislature by January 1, 2024. Was not heard in the Assembly Accountability and Administrative Review Committee.

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Summary

As related to CARB, requires the California Department of Transportation (Caltrans) to establish a consolidated statewide information system that contains a list of, and links to, existing registries and databases related to drayage trucks. In coordination with Caltrans, the bill requires CARB to connect its databases containing online truck reporting systems, information on recipients that have received a voucher for the purchase of drayage truck(s) under the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, and the compliance status of trucks under the Heavy-Duty Vehicle Inspection and Maintenance Program, to the statewide information system.

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Summary

As related to CARB, revises pilot boat surcharge provisions, including specifying that the costs of obtaining new pilot boats for the purpose of complying with CARB’s 2022 amendments to the Commercial Harbor Craft Regulation include preliminary design and engineering and the costs of repowering existing pilot boats or acquiring new pilot boats.

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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

Prohibits, beginning January 1, 2025, any person from manufacturing, distributing, selling, or offering for sale in the State any new, not previously owned, textile articles that contain regulated PFAS, except as specified, and requires a manufacturer to use the least toxic alternative when removing regulated PFAS in textile articles to comply with these provisions. The bill requires a manufacturer of a textile article to provide persons that offer the product for sale or distribution in the State with a certificate of compliance stating that the textile article is in compliance with these provisions and does not contain any regulated PFAS.

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Summary 

Would have required the Governor's Office of Business and Economic Development Supply Chain Senior Advisor, as established by the bill, to collaborate with State agencies with similar duties and functions or that otherwise support or impact supply chains in the State, including, but not limited to CARB. Held on suspense in the Assembly Appropriations Committee.

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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 authorized CARB to regulate indirect sources, as defined in Section 7410 of Title 42 of the United States Code. Additionally, the bill would have required local governments, before approving a warehouse development project, to take certain actions to identify and address the potential environmental impacts of the project and to ensure public participation by residents affected by the project on the consideration of the project. Was not heard in the Natural Resources Committee.

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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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