California Air Resources Board

Would have expanded the California Environmental Quality Act’s definition of "environment" and "significant effect on the environment" to include impacts on people. The bill would have also required the lead agency preparing the Environmental Impact Report to include a detailed statement on any significant effects that may result from locating the proposed project near, or attracting people to, existing or likely natural hazards or harmful environments.

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Would have required a State agency providing a grant or contract to a federally recognized tribe or private nonprofit, under certain conditions, to pay a portion of the money to the grantee in advance. The bill would have required State agencies to state the percentage that may be given in advance in the solicitation for the grant or contract. This bill requires, by July 1, 2027, the Strategic Growth Council to develop a Statewide Advance Funds and Reconciliation Guide (Master Guide), as specified. The bill requires every State agency to adopt the Master Guide as its standard operating procedure for the disbursement, tracking, and reconciliation of advance payments, as provided.

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Governor’s Veto Message

To the Members of the California State Assembly:

I am returning Assembly Bill 1039 without my signature.

This bill would require state agencies to provide advance payments for certain grants and contracts awarded to eligible nonprofit organizations and federally recognized tribes, and establish a statewide3 framework to administer and reconcile those payments.

While I appreciate the author's goal of reducing financial barriers for nonprofits and tribes, imposing a new statewide requirement would severely limit the state's oversight and protection of public funds. I signed AB 590 in 2023 and AB 3017 in 2024, which provided agencies with authority to process advance payments for these entities. It is important to ensure agencies maintain discretion to evaluate the financial and programmatic risks of each request for advance payments. I encourage the author and stakeholders to continue engaging with administering agencies to help ensure they are utilizing the existing authorization to the fullest extent possible when appropriate.

For these reasons, I cannot sign this bill.

Sincerely,

Gavin Newsom

View Governor’s veto message here

Summary

Provides reimbursement and per diem compensation for members of single county local air district boards, as well as the Antelope Valley Air Quality Management District board. Specifically, the bill allows daily compensation up to $200 per day with an annual cap on compensation of $7,200 and allows approval of an annual increase of 5-10%. The bill also requires a report to be submitted to the Legislature within three years of commencement of the compensation.

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Removes the requirement to prioritize recipient entities and projects serving disadvantaged, low-income, and under-resourced communities for grants and contracts after January 1, 2026. The bill would also require an administering state agency to advance a payment to a recipient entity and state the percentage that may be distributed as advance payment in the solicitation for the grant or contract. 2-year bill as noted in the Senate Appropriations Committee.

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Summary 

Would have required the California Air Resources Board (CARB) to include drones as an eligible agricultural equipment under the Clean Off-Road Equipment Voucher Incentive Project (CORE) as part of the Air Quality Improvement Program (AQIP). Held on suspense in the Assembly Appropriations Committee. 

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Summary

Authorizes a State agency administering a grant program to provide advanced payment of up to 25% to a federally recognized Indian tribe recipient under nearly the same conditions afforded 501(c)(3) nonprofits. The bill allows CARB to authorize advance payment from contract recipients and grant recipients to subrecipients.

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Summary

Would have streamlined the application and implementation process for covered grants, defined as a grant award not exceeding $20,000 with a duration not more than a year, with 501(c)(3) nonprofits as the eligible recipient. The bill would have had website requirements for a State agency or third-party contractor to post application information for a covered grant and to allow completion of a covered grant application online. The bill would have required advanced payment of at least 50% of the grant award and prohibited an administrator from requiring specified receipts, reports, and insurance coverage. Held on suspense in the Senate Appropriations Committee.

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Summary 

Would have authorized the expansion of the existing Protecting Blue Whales and Blue Skies Program to a single unified statewide voluntary vessel speed reduction and sustainable shipping program. The bill would have required the Ocean Protection Council (Council) and CARB to participate as advisers as well as stakeholders with coastal local air districts and other stakeholders, subject to funding availability. Participating local air districts would have been required to submit a legislative report by December 31, 2028. Held on suspense in the Senate Appropriations Committee.

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Summary

Authorizes a State agency administering a grant program or contract to provide advance payment to a recipient non-profit that qualifies under Section 501(c)(3) of the Internal Revenue Code. When allowing advance payment, the State agency must prioritize grant recipients and projects serving disadvantaged, low income, and under-resourced communities or organizations, and ensure the advance payment does not exceed 25 percent, although the State agency may exceed this cap. The bill allows grant recipients to provide moneys from the advance payment to subrecipients. Additionally, the bill requires the grant recipient to meet specified minimum requirements and allows the Department of Finance  to perform an advance payment audit.

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