|
Legislative Update Richard Markuson Region 9 Legislative Advocate |
|
Important Dates:
- February 21 – Bill introduction deadline
- April 1 – 21 – Spring Recess
- April 24 – Region 9 Infrastructure Symposium (Los Angeles)
- May 2 – Last day for policy committees to hear and report to fiscal committees fiscal bills introduced in their house
- June 4 – ASCE/APWA Legislative Day (Sacramento)
- June 6 – Last day for each house to pass bills introduced in that house
Legislation
AB 93 Papan (D) The California Constitution emphasizes the importance of using the state’s water resources efficiently and preventing waste or unreasonable use. AB 93 expresses the Legislature’s intention to create future laws ensuring efficient water and energy use, especially considering how new technologies like artificial intelligence may increase demand on these limited resources.
AB 253 Ward (D) The State Housing Law sets construction and occupancy standards for residential buildings in California, allowing local governments to charge fees for various permits. The proposed California Residential Private Permitting Review Act requires local building departments to create and publish a fee schedule for residential building permits online. It also mandates that if a building department takes more than 30 days to complete a plan check for a residential building permit, they must provide an estimated timeframe for completion. If this estimate or the actual completion exceeds 30 days, the applicant may hire a private professional to conduct the plan check. The private professional must submit an affidavit and a report, which the building department has 14 days to review for compliance. If plans are non-compliant, the applicant can correct and resubmit them or again use a private professional. The bill applies to new residential constructions, additions, or remodels, and it introduces a state-mandated local program by expanding the crime of perjury and imposing additional duties on local agencies.
AB 293 Bennett The Sustainable Groundwater Management Act (SGMA) mandates that high- and medium-priority groundwater basins must be managed using a sustainability plan, which must be developed and implemented by an authorized local groundwater sustainability agency. Local agencies can choose to become this managing authority over the basins. The board members and executives of these agencies are required to disclose their economic interests through the Fair Political Practices Commission’s online system. This bill requires these agencies to publicly list their board members on their website and provide a link to where these economic interest statements can be accessed on the Commission’s website.
AB 295 Macedo (R) CEQA mandates that a lead agency must prepare an Environmental Impact Report (EIR) for projects that might significantly impact the environment. If a project will not have such impact, the agency can issue a negative declaration; a mitigated negative declaration is issued if project revisions can mitigate potential environmental effects. Judicial review is available for decisions made under CEQA. The Jobs and Economic Improvement Through Environmental Leadership Act of 2021 allows the California Governor to certify certain development projects for streamlined CEQA benefits until January 1, 2032. This act, which ends in 2034, now extends to include water-related projects like water storage, conveyance, and recharge that offer public benefits and help in drought preparedness. The bill requires lead agencies to document proceedings for these projects, adding a state-mandated local program. However, it specifies no state reimbursement is required for local costs related to these requirements.
AB 314 Arambula (D) CEQA mandates that a lead agency must prepare and certify an environmental impact report for projects that may significantly affect the environment. If a project is not expected to have such an impact, a negative declaration is adopted instead. If potential impacts can be mitigated, a mitigated negative declaration is required. CEQA exempts certain residential and transit-oriented projects from its requirements, provided they meet criteria such as being within half a mile of a major transit stop. A major transit stop is currently defined as the intersection of bus routes with frequent service during peak commute times. This bill expands this definition to include high-speed rail stations. This change will require agencies to assess if locations qualify as major transit stops for CEQA exemption purposes, forming a state-mandated local program. Although usually such mandates require state reimbursement to local agencies, the bill specifies no reimbursement is needed for this change.
ACA 1 Valencia (D) The California Constitution limits the annual spending of the State and local governments to not exceed the prior year’s limits, adjusted for changes in cost of living and population. Appropriations subject to this limit are well-defined. A Budget Stabilization Account (BSA) is established, requiring a transfer each fiscal year from the General Fund to the BSA, traditionally 15% of estimated revenues. Transfers that exceed 10% of the General Fund proceeds of taxes are prohibited. Proposed changes would adjust these percentages: the mandatory transfer percentage would be determined each year rather than fixed at 15%, and the cap on the BSA balance would increase from 10% to 20% of the General Fund taxes. Importantly, funds moved to the BSA would not count towards the annual spending limit.
ACR 19 Macedo (R) This bill would officially recognize February 20, 2025, as “Introduce a Girl to Engineering Day” to encourage young women to explore and pursue careers in engineering by raising awareness and providing opportunities for them to engage with the field.
SB 63 Wiener (D) The Metropolitan Transportation Commission is a planning agency responsible for regional transportation planning in the nine-county San Francisco Bay area. There are also several transit districts within the area with specific responsibilities for public transit services. This bill would express the Legislature’s intention to introduce legislation that would authorize a revenue measure aimed at investing in the region’s transportation infrastructure.
SB 71 Wiener CEQA mandates that a lead agency prepare an environmental impact report for projects potentially affecting the environment or adopt a negative declaration if not. CEQA requires a mitigated negative declaration if project modifications can mitigate significant effects. Until January 1, 2030, CEQA exempts certain transportation plans, including for pedestrian and bicycle facilities, from its requirements. The proposed bill aims to extend these exemptions indefinitely and add new exemptions for transit-related projects such as transit route changes and improvements for zero-emission vehicles. The bill would require lead agencies to determine eligibility for these exemptions, imposing a state-mandated local program. It also mandates that cost estimates for exempt projects adjust biennially in line with the California Consumer Price Index. Lastly, no state reimbursement is required under this act due to specified reasons in the bill.
SB 72 Caballero (D) DWR is mandated by law to update “The California Water Plan” every five years. This plan addresses the management and use of the state’s water resources. Current requirements involve discussing various water strategies like new storage facilities, conservation, recycling, desalination, and transfers. The department must also have an advisory committee for plan updates. This bill aims to revise the plan’s provisions, requiring the expansion of the advisory committee to include representatives from tribes, labor, and environmental justice groups. For the 2033 update, the department must revise the 2050 interim planning target, considering sustainable water needs for urban, agricultural, and environmental sectors, and ensuring safe drinking water for all. The plan will include detailed cost-benefit analyses of recommended projects to meet water supply targets. Additionally, the department is required to report updates to the Legislature and conduct public workshops for feedback from interested parties.
SB 73 Cervantes (D) CEQA requires preparation of an Environmental Impact Report (EIR) or a negative declaration for projects with potential significant environmental effects. Certain projects, such as residential and mixed-use developments in transit priority areas, are exempt if they align with an existing specific plan with a certified EIR. This bill would expand exemptions to projects in areas of very low vehicle travel and mandates they follow specific planning guidelines, including development on previously used or qualified vacant sites. It also changes rules for exemptions related to agricultural employee housing, affordable housing, and infill residential projects, potentially allowing these within state conservancy boundaries and adjusting project size and location criteria. Additionally, exemptions for sustainable transit priority projects located in low vehicle travel areas are revised, requiring previous development or specific vacant site criteria. Lead agencies must file notices of exemption for qualifying projects, imposing additional local program requirements. The bill states no reimbursement is required by the state under its mandates.
SB 78 Seyarto (R) Existing law assigns CALTRANS control over the state highway system. This bill mandates that the department conduct a study to identify specific locations in the highway system that are prone to vehicle collisions, propose projects to enhance road safety at these sites, and analyze common factors that may delay the implementation of these projects. The bill also requires the department to publish the findings of this study on its website by January 1, 2027.
SB 79 Wiener (D) Under existing law, the Planning and Zoning Law mandates that every city, county, or city and county in California prepares a general plan, which must include a housing element that assesses local housing needs and the locality’s share of regional housing demand. Regional housing needs are allocated by the local council of governments or the Department of Housing and Community Development if no council exists. For the Bay Area, the San Francisco Bay Area Rapid Transit District must establish transit-oriented development (TOD) zoning standards for each station, setting minimum requirements for various factors like height, density, and parking. Developers of eligible TOD projects can apply for a streamlined approval process. A proposed bill aims to make housing more affordable, reduce greenhouse gas emissions, and improve public transit systems by requiring the upzoning of land near rail stations and rapid bus lines to promote TOD. The bill includes related findings and declarations.
SB 90 Seyarto (R) The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, passed as Proposition 4, allows for $10 billion in bonds to fund various resilience and environmental projects. The act allocates $135 million to the Office of Emergency Services for a wildfire mitigation grant program, providing resources like loans and direct assistance to prevent wildfires, enhance resilience, and support community hardening. Eligible projects for funding include grants for structure hardening of critical infrastructure, smoke mitigation, evacuation centers, and improvements in water systems for fire suppression. This bill would additionally allow improvements to public evacuation routes, firefighting support facilities like mobile rigid dip tanks and water storage, and enhancements to fire engines and helicopters in the list of fundable projects.
SB 224 Hurtado (D) Existing law mandates the Department of Water Resources to collect data for annual water supply forecasts and update the California Water Plan every five years. This bill requires the department to adopt an improved water supply forecasting model by January 1, 2027, which takes climate change into account, and implement a formal policy for documenting operational plans, including reasons for water releases from reservoirs. Starting January 1, 2028, the department must annually report to the Legislature on the progress of the new model and explain its operating procedures from the previous year. Additionally, beginning in 2027, the department will present its operational decisions and their rationale at five public meetings annually, with the information included in a report for the Legislature and posted online.
SB 231 Seyarto (R) CEQA requires a lead agency to assess the environmental impact of a proposed project. If a project may significantly affect the environment, an environmental impact report must be prepared. If a project is found not to have a significant impact, a negative declaration is adopted. A mitigated negative declaration is necessary if project revisions can avoid or reduce potential impacts. The Office of Land Use and Climate Innovation (formerly the Office of Planning and Research) is responsible for developing guidelines for CEQA’s implementation, which are certified by the Secretary of the Natural Resources Agency. These guidelines help public agencies decide whether a project may significantly affect the environment. This bill mandates that by July 1, 2027, this office and the secretary must establish best practices for determining project impact significance, referencing Appendix O of CEQA guidelines. The guidelines will draw on state and federal environmental laws, and the office may consult with relevant agencies for their development.
SB 232 Seyarto (R) CEQA mandates that a lead agency must prepare and certify an environmental impact report (EIR) for any project it wishes to undertake or approve that could significantly affect the environment. If it’s determined the project will not pose such an effect, a negative declaration is adopted. For projects that might have a significant impact, but could avoid or mitigate effects through revisions, a mitigated negative declaration is required. The Office of Land Use and Climate Innovation is tasked with developing guidelines for CEQA, which the Natural Resources Agency certifies and adopts. These guidelines also state that once it’s determined an EIR is needed, the lead agency must notify relevant agencies promptly. This bill proposes that the office conduct a study on “locked-in guidelines,” which would remain constant throughout a project’s review process despite any later changes. This study will assess how these guidelines impact regulatory certainty and environmental review efficiency, with findings to be reported by January 1, 2027. The bill’s provisions will expire on January 1, 2028.
Appointments
By Governor
Require Senate confirmation.
Reappointed to the Water Resources Control Board: E. Joaquin Esquivel, Sacramento, Democrat, board member since 2017 and former assistant secretary for federal water policy at the Natural Resources Agency. Salary: $186,588; Nichole Morgan, Sacramento, Democrat, board member since 2021 and former assistant deputy director of financial assistance for the Board. Salary: $180,840.
Reappointed to the Water Commission: Jose Solorio, Santa Ana, Democrat, director of external affairs and business development for California American Water since 2024; Alexandre Makler, Berkeley, Democrat, multiple positions at Calpine Corporation since 1999, including executive vice president, West. Salary: $100 per diem.
Do not require Senate confirmation.
As chief of external affairs, High-Speed Rail Authority: Peter Whippy, Alamo, Democrat, former communications director for the US Committee on House Administration. Salary: $170,004.
As general counsel, State Transportation Agency: Alicia Fowler, Sacramento, Democrat, chief counsel at High-Speed Rail Authority since 2019. Salary: $224,364.
As statewide regional director, High-Speed Rail Authority: Basem Muallem, Chino Hills, no party preference, vice president at HNTB since 2023. Salary: $355,008.
As chief of strategic communications, High-Speed Rail Authority: Carol Dahmen-Eckery, Carmichael, Democrat, chief executive officer of CDE Strategies since 2023. Salary: $170,004.
Reports of Interest
The Legislative Analyst’s Office released, “Assessing California’s Climate Policies – Residential Electricity Rates in California,” finds the state’s electricity rates are “close to double those in the rest of the nation, mostly driven by high rates charged by the state’s three large investor-owned utilities,” which are monitored and authorized by the Public Utilities Commission and are established based on “significant and increasing wildfire-related costs, the state’s ambitious greenhouse gas reduction programs and policies, and differences in utility operational structures and services territories;” notes that residential customers’ bills “can vary widely” due to the state’s cost-reduction programs for low-income households and rooftop solar customers, “which are subsidized by other ratepayers who do not qualify for those discounts,” and that high electricity rates “impede the state’s efforts to meet its ambitious climate goals by discouraging households from pursuing electrification through switching out their fossil fuel-powered cars and appliances;” concludes that the legislature “likely will confront difficult decisions about how to approach electricity rates in order to best support its varied goals, including balancing the desires to both mitigate and adapt to climate change as well as preserve affordability.”
Legislative Analyst’s Office released “The 2025-26 Budget: Overview of the Governor’s Budget,” says that the budget revenue upgrade “while somewhat higher than ours, is reasonable in light of the recent collection trends” but the legislature should “avoid putting too much stock in the recent revenue rebound until it is accompanied by clear improvements in California’s broader economy” due to the “recent gains” being “largely tied to the booming stock market, a situation which can change rapidly and without warning” and not tied to improvements in the state’s broader economy, “which has been lackluster, with elevated unemployment, a stagnant job market outside of government and healthcare, and sluggish consumer spending;” also finds that since 2023-24, the legislature has addressed a cumulative total of $82 billion in budget problems, “but even including the withdrawal for 2025-26, has only used about half of the Budget Stabilization Account” and with the Governor’s proposal leaving an anticipated another $11 billion in the account, recommends the legislature “maintain the Governor’s approach on the use of reserves in its own budget plan.”
California Budget & Policy Center releases, “Understanding the Governor’s 2025-26 State Budget Proposal,” findings include that the administration “projects that the state prison population will increase in the near term due to the passage of Prop. 36,” although it “does not anticipate substantial ongoing costs from Prop. 36 and projects that the prison population will resume its long-term decline after 2025-26 due to other justice system reforms that remain in effect,” which suggests “that state policymakers should plan for additional state prison closures.”