2011-2012 Legislative Session Final Update

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Sunday, September 30, 2012 was the deadline for the Governor to sign or veto the hundreds of bills sent to him by the Legislature. The CLFP staff worked hard to proactively push for the passage of important measures regarding AB 32 Cap-and-Trade allowances and State and Regional Water Board reform. In addition, CLFP staff worked to stop the passage of bills that would increase energy rates and create screening tools to identify "disadvantaged communities" which could result in more regulatory burdens and exposure to liability for companies doing business in these communities.

Below is the final status update on the high priority bills that the CLFP was tracking and working on throughout the 2011-2012 Legislative Session:

AB 32 Cap and Trade Bills

SB 1572 (Pavley) California Global Warming Solutions Act of 2006: AB 32 Investment Fund
CLFP OPPOSED
Died on Assembly Floor when Speaker shut down the Assembly. This bill would have directed the use of monies collected in the early years of the program to specified purposes. CLFP opposed the bill arguing that CARB’s plan to impose a cap-and-trade program will hurt jobs, and raise costs to the state and consumers. (Contact: John Larrea)

AB 1186 (Skinner) School Energy Efficiency and Greenhouse Gas Reduction Act: Grants
CLFP OPPOSED
Vetoed by the Governor. AB 1186 would have created an unfunded program for energy efficiency in schools with the expectation of accessing revenue from the cap-and-trade program. CLFP argued that if this bill were enacted, it would have increased energy costs, including fuel prices on consumers and businesses by imposing a multi-billion dollar auction that is not necessary to cost-effectively implement the market-based trading mechanism under AB 32. In his veto message, the Governor stated: "Though well intended, (this bill) jumps the gun by establishing a program before we are ready." (Contact: John Larrea)

AB 1532 (Perez) California Global Warming Solutions Act of 2006: Greenhouse Gas Reduction Fund
CLFP OPPOSED
Signed by the Governor. This was the Assembly Speaker’s bill which sets up a Greenhouse Reduction Fund and investment plan process for cap-and-trade auction revenue. CLFP opposed the bill arguing that CARB lacks the authority and has been unable to justify the need to raise billions of dollars in revenue for purposes anticipated in AB 1532. CLFP has consistently argued that CARB’s plan to impose a cap-and-trade program will hurt jobs, and raise costs to the state and consumers. (Contact: John Larrea)

SB 535 (De Leon) California Global Warming Solutions Act of 2006: Greenhouse Gas Reduction Fund
CLFP OPPOSED
Signed by the Governor. This bill allocates 25 percent of investment plan funds to the benefit of "disadvantaged communities." CLFP opposed the bill arguing that the Greenhouse Gas (GHG) revenue bills were premature while continuing to remind the Legislature that minimizing leakage and maximizing cost-effectiveness are primary goals in AB 32, not raising billions of dollars from regulated industries. (Contact: John Larrea)

AB 2529 (Wieckowski)/ SB 1018 Fix (Budget Trailer Bill)
CLFP SUPPORTED
Senate Pro Tem Darryl Steinberg killed AB 2529 in Senate Rules Committee before it reached the floor for a vote. SB 1018 was attached to the state’s 2012-2013 spending plan as a trailer bill and addressed the GHG revenues from the sale of the utility’s allocations. (AB 2529 was the bill to be used to move fixes to SB 1018 through the Legislature.) As a result of SB 1018 passage, the California Public Utilities Commission (CPUC) is now required to ensure that only a select group of ratepayers will receive GHG revenues generated from the sale of the utility allocations – about $600 million. It also requires the CPUC to allocate up to 15% of that revenue for clean energy and energy efficiency projects. In making these changes, the legislature created an unfair distribution of allowance auction revenues because the actual distribution of the revenues will no longer be proportional to the actual AB 32 costs borne by customers. Through AB 2529, an effort was made to provide a fix that would allow for the return of the allowance auction revenue to all impacted customers in proportion to their AB 32 cost burden. (Contact: John Larrea)

Energy Bills

AB 723 (Bradford) Energy: Public Goods Charge
CLFP OPPOSED
Held in Senate Appropriations and died at the end of session. This bill would have extended a tax, commonly referred to as the Public Goods Charge, on electricity ratepayers in the investor-owned utility territories an additional eight years. (Contact: John Larrea)

AB 1990 (Fong) Renewable Energy Resources: Renewable Feed-in Tariff Set Aside for Most Impacted and Disadvantaged Communities
CLFP OPPOSED
Held in Senate on the inactive file due to lack of votes. This bill would have created a new feed-in tariff set aside for the most impacted and disadvantaged communities and would have tasked the Office of Planning and Research to develop a screening tool to identify the most impacted communities in the state. CLFP opposed the bill arguing that it was premature and would conflict with Cal-EPA’s ongoing policy effort to develop cumulative impacts assessment guidelines. (Contact: Trudi Hughes)

Food Safety and Labeling Bills

AB 1616 (Gatto) Cottage Food Operations
CLFP had Significant Concerns/Requested Veto
Signed by the Governor. As enacted, this measure allows small food businesses operating out of a private home that produce "nonpotentially hazardous goods" (so called "cottage food operations") to comply with fewer regulations. CLFP expressed significant concerns to the Legislature and the Governor regarding relaxing food safety regulations for cottage food operators. (Contact: Trudi Hughes)

AB 837 (Nestande) Recycled Content Claims
CLFP Opposed
Signed by the Governor. As enacted, this measure requires a manufacturer or a supplier of a food container to certify to any member of the public its recycled content claim. CLFP joined a coalition in opposition to this bill arguing that: (1) the bill is unnecessary because existing laws already addresses the perceived problem, (2) the bill lacks due process of law as it is not clear if manufacturers and retailers are liable for not providing "documentation" or for making an inaccurate claim, and (3) a national uniform standard is more appropriate than AB 837. (Contact: Trudi Hughes)

Labor and Employment Bills

AB 1313 (Allen) Overtime for Agricultural Workers
CLFP OPPOSED
Bill died in the Assembly when concurrence in Senate amendments was refused. This bill would have imposed additional costs onto agricultural employers by removing existing overtime exemptions. (Contact: Trudi Hughes/ Allyson Rathkamp)

AB 1450 (Allen) Employment Discrimination: Status as Unemployed
CLFP NO POSITION
Vetoed by the Governor. This measure sought to prevent discrimination against the unemployed based on their job status by prohibiting employers from stating in employment ads that applicants must be employed. CLFP was involved with this bill as part of a coalition opposing the bill. During the last few days of session, amendments were negotiated with the author which removed most of the coalition’s objections to the bill. However, in his veto message, the Governor stated "unfortunately, as this measure went through the legislative process it was changed in a way that could lead to unnecessary confusion." (Contact: Allyson Rathkamp/Trudi Hughes)

AB 1999 (Brownley) Familial Status Protection
CLFP OPPOSED
Held in Senate Appropriations and died at the end of session. This bill would have increased the burden on California employers to conduct business and would have exposed them to higher risk of litigation by expanding the Fair Employment and Housing Act to include a protected classification for a "family caregiver" or a "perceived family caregiver." (Contact: Allyson Rathkamp/Trudi Hughes)

AB 2346 (Butler) Agricultural employee safety: heat-related illness
CLFP OPPOSED
Vetoed by the Governor. This measure would have created unprecedented and excessive consequences for perceived and actual violations of heat illness prevention regulations. CLFP joined agricultural and business organizations in opposing this measure arguing that: (1) the joint liability provisions in the bill would increase lawsuits, (2) current regulations under Cal OSHA are already effective at reducing fatalities and, (3) agricultural employers should not be singled out. In his veto message, the Governor agreed with these arguments and stated: "California's current outdoor heat standards are the most stringent in the nation, and compliance with them has been improving each year-from a low of 32% in 2006 to more than 80% in 2012. I am convinced that these standards should be improved, but this bill is flawed: it would create through legislation a new enforcement structure that would single out agricultural employers and burden the courts with private lawsuits. I believe the regulatory process is more flexible and the better way to improve standards for farm workers. My administration stands ready to help, but ongoing litigation about past enforcement practices continues to drain resources away from improving the existing heat standards and ongoing enforcement." (Contact: Trudi Hughes/Allyson Rathkamp)

AB 2676 (C. Calderon) Agricultural employee safety
CLFP OPPOSED
Vetoed by the Governor. This bill would have provided criminal penalties for anyone who directs or supervises farm workers and fails to provide sufficient amounts of shade and cool, potable water. CLFP participated in a coalition led by agricultural associations in opposition to the bill. In his veto message, the Governor stated: "In recent years, California has enhanced its existing safety regulations to protect workers in all outdoor industries - - implementing the most stringent standards in the nation. Since these standards were adopted, enforcement has improved and compliance has increased. Cal/OSHA has conducted over 3,000 heat safety inspections per year for the past three years. Hundreds of citations and penalties for violations of the heat safety standards have been issued. Compliance has increased in all industries from a low of 32% in 2006 to over 80% in 2012, with even greater improvements in agriculture. While I believe enforcement of our heat standards can be improved, I am not convinced that creating a new crime -- and a crime that applies only to one group of employers -- is the answer. Instead, we should continue to enforce our stringent standards for the benefit of all workers in all industries." (Contact: Trudi Hughes/Allyson Rathkamp)

Regulatory and Due Process Reform

SB 965 (Wright) Water Board Ex Parte Reform
CLFP SUPPORTED
Signed by the Governor. CLFP lead a coalition in support of the bill throughout the legislative process and issued a coalition letter to the Governor requesting his signature. This bill would improve the water boards’ rulemaking process by addressing ex-parte communications. (Contact: Trudi Hughes)

SB 1099 (Wright) Regulations
CLFP SUPPORTED
Signed by the Governor. Creates more certainty and predictability for businesses by establishing four dates for the implementation of new regulations in California. (Contact: Trudi Hughes)

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