California Air Resources Board

Would have prohibited the establishment of new transformation or engineered municipal solid waste (EMSW) conversion facilities in the State until California’s Department of Resources Recycling and Recovery has determined that the State has achieved solid waste and organic waste policy goals for three consecutive years. Was not heard in the Assembly Appropriations Committee.

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Would have increased the priority population minimum investment amounts for California Climate Investments from 25% to 50% for disadvantaged communities and from 5% to 15% for low-income communities. Was not heard in the Assembly Natural Resources Committee.

Summary 

Would have required CARB, if CARB requires a fleet owner to acquire zero-emission vehicles (ZEVs) as part of its fleet, to authorize the rental of a ZEV or vehicles for a cumulative total of 260 days in a calendar year to be deemed ownership of one ZEV for purposes of meeting that obligation. This provision would have resulted in the exemption of any vehicles rented less than 260 days as not a part of the “owned fleet,” thereby reducing the fleet’s compliance obligation under CARB’s Advanced Clean Fleets (ACF) Regulation.  

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Governor’s Veto Message 

To the Members of the California State Assembly:  

I am returning Assembly Bill 637 without my signature.  

This bill would require the California Air Resources Board (CARB) to authorize a fleet owner's rental of a zero-emission vehicle (ZEV) for a cumulative total of 260 days per year to be considered ownership of one ZEV for the purpose of complying with the Advanced Clean Fleets (ACF) regulation.  

In 2020, I issued Executive Order (EO) N-79-20, which directed CARB, among other things, to develop strategies to transition in-state sales of new passenger vehicles and trucks to 100 percent zero-emission by 2035, where feasible. Pursuant to this EO, CARB developed the ACF to accelerate transportation sector emission reductions while providing safe, feasible, and flexible compliance options for affected fleet owners that have over 50 vehicles or over $50 million in gross annual revenue.  

This bill would allow rental vehicle companies to circumvent the ACF regulations, and the flexible and balanced compliance mechanisms CARB has already created, with a new and unclear compliance mechanism. I am concerned this will jeopardize our clean air goals at a time when the state awaits action on its Clean Air Act waiver by the United States Environmental Protection Agency.  

With that, I encourage the rental vehicle companies to work toward meeting the ACF regulations, and if there are insurmountable challenges, to work with CARB to explore practical and alternative compliance pathways through the existing regulatory process.  

For these reasons, I cannot sign this bill.  

Sincerely,  

Gavin Newsom 

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Would have made changes to the housing projections included in Regional Transportation Plans/Sustainable Communities Strategies and added additional reporting requirements for local governments. Was not heard in the Senate Appropriations Committee.

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Summary 

This bill would have required CARB, when providing a voucher for the purchase of a new or used drayage truck, to ensure the incentive amount be determined pursuant to a sliding scale that authorizes increased vouchers in different amounts for fleets of 50 or fewer, 30 or fewer, or 5 or fewer vehicles. The bill would have also required CARB, when administering incentives specified by this bill, to prioritize fleets of five or fewer trucks and drayage operations transporting goods between the Ports of Los Angeles, Long Beach, or Oakland and warehouses located in the State. Was not heard in the Senate Environmental Quality Committee. 

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Would have prohibited the County of Riverside, the County of San Bernardino, and any other political subdivisions located within those counties, from approving the development or expansion of any qualifying logistics use, as defined, within 1,000 feet of sensitive receptors, as defined, except as provided. The bill would have authorized a public agency to approve the development or expansion of a qualifying logistics use greater than 500 feet from a sensitive receptor and within 1,000 feet of a sensitive receptor only if the qualifying logistics use complies with certain requirements, including that all heavy-duty vehicles domiciled onsite meet certain requirements. The bill would have authorized an individual affected by a violation of these provisions or the Attorney General to bring an action to enjoin a violation of the provisions of this bill and would have provided that these provisions do not relieve a public agency from complying with the California Environmental Quality Act. Hearing cancelled at request of author in the Assembly Committee on Local Government.

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Would have authorized two or more specified local governments to jointly form a Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) district to use tax increment financing and other revenue options to finance infill supportive infrastructure and affordable housing, among other things, near major transit stops, as specified. The bill would also have required the Governor’s Office of Planning and Research to develop guidelines for the formation of RISE districts, and require the Infrastructure and Economic development Bank to establish a RISE District Revolving Loan Program, upon appropriation by the Legislature, to provide RISE districts with initial startup funding for eligible projects, as specified. Held on suspense in the Senate Appropriations Committee.

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Would have transferred Greenhouse Gas Reduction Funds currently provided to the High-Speed Rail Authority to the State’s General Fund and made the funding available for rural road safety. Failed passage in the SenateTransportation Committee.

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Would have required CARB to update regional greenhouse gas (GHG) targets indefinitely, rather than only until 2050 and authorized CARB to update the years to which those targets apply. The bill would have required a metropolitan planning organization, prior to adopting amendments to a regional transportation plan that could impact a Sustainable Communities Strategy, to quantify the reduction in GHG emissions and difference due to the amendments. This bill would have also updated the Sustainable Communities Strategy review process for CARB and metropolitan planning organizations, among other provisions. Was not heard in the Senate Transportation Committee.

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Summary

Would have created the Climate Cashback Program to be administered by the Franchise Tax Board for the public purpose of mitigating the costs of transitioning to a low-carbon economy. The bill would have required the Franchise Tax Board to develop and implement the program by December 31, 2024, to deliver quarterly per capita cashback payments to all California residents and set other requirements for the operation of the program. Was not heard in the Assembly Natural Resources Committee.

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