California Air Resources Board

Summary

Expresses the intent of the Legislature to enact legislation that would further support California’s efforts to decarbonize the built environment. Remains at the Assembly Desk.

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Summary

Would have exempted vehicles from smog check requirements if they have a special license plate issued pursuant to section 5004 of the Vehicle Code. In order to meet the specifications of the aforementioned Vehicle Code, a vehicle would have needed to meet one of the three following requirements: Be (1) A motor vehicle with an engine of 16 or more cylinders manufactured prior to 1965, (2) A motor vehicle manufactured in the year 1922 or prior thereto, or (3) A vehicle which was manufactured after 1922, is at least 25 years old, and is of historic interest. Was not heard in the Assembly Transportation Committee.

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Summary 

Would have expanded the regulation of intrastate pipelines to pipelines used for the transportation of carbon dioxide. The bill would have exempted intrastate gas pipelines regulated by the Public Utilities Commission and required the State Fire Marshal to adopt regulations no later than January 1, 2025, that establish procedures for maintaining, testing, and inspecting valves on intrastate hazardous liquid and carbon dioxide pipelines. Was not heard in the Assembly Natural Resources Committee.

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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 exempt vehicles from smog check requirements that have a special license plate issued pursuant to section 5004 of the vehicle code. In order to meet the specifications of the aforementioned vehicle code, a vehicle must fall into one of the three following requirements: Be (1) A motor vehicle with an engine of 16 or more cylinders manufactured prior to 1965, (2) A motor vehicle manufactured in the year 1922 or prior thereto, or (3) A vehicle which was manufactured after 1922, is at least 25 years old, and is of historic interest. Was not heard in the Assembly Transportation Committee.

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Summary

Authorizes establishment of a Green Empowerment Zone for the Northern Waterfront area of Contra Costa County until January 1, 2028; tasks the Green Empowerment Zone with various duties; identifies the membership of the board of directors; and requires the Green Empowerment Zone to report to the Legislature. The bill identifies four State government representatives who reside within Contra Costa County, one of which is a CARB member, as members of the Green Empowerment Zone Board. The bill allows the residential and service qualifications for board membership as a State government representative to be waived by a majority vote.

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Summary

Would have exempted motor vehicles that have been issued a specialty license plate for historical vehicles from biennial smog check requirements for registration.  Was not heard in the Assembly Transportation Committee.

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