Several Key Issues Still in Play in Final Weeks of Legislative Session

 

The Legislature is down to its final two weeks before it adjourns on Friday, September 13, 2013.  Several key issues are still in play in these final weeks of the legislative session and CLFP staff continues to be actively engaged.  

Chief among these issues is SB 691 (Hancock) which would impose a tenfold increase in possible strict-liability penalties for Title V facilities for a single-day nuisance violation triggered by a release of an air toxic contaminant. The author of the bill is targeting large events like the recent refinery fire in Richmond. However, as currently drafted, nothing limits this legislation to these large events. Thus, even accidental releases would be subject to this penalty. In fact, a fire at any Title V facility could be enough to trigger the AQMD’s authority to issue the maximum penalty amount of $100,000, all of which would go back to the AQMD citing the violation.  CLFP is actively working  to narrow the scope of this unreasonable legislation.

AB 327 (Perea) has been amended to allow the Public Utilities Commission (CPUC) to raise the Renewable Portfolio Standard above the current 33 percent level.  This could significantly increase energy rates.  Originally, AB 327 was focused on eliminating the provisions of AB1x, adopted during the energy crisis, to prevent energy cost increases from raising rates for low-income ratepayers such as those in the CPUC CARE program.  CLFP has joined with the other industrial and business ratepayers with an opposed unless amended position as to the additional amendments.  This bill passed the Senate Appropriations Committee with amendments. However, Senator Padilla, Chair of the Senate Energy, Utilities and Communications Committee, has reserved the right to bring the bill back before his Committee if he deems that the amendments are substantive.

CLFP remains opposed unless amended to SB 605 (Lara).  This bill will impose new requirements on the Air Resources Board (CARB) concerning the update to the CARB Scoping Plan among other things.  Currently, the bill seeks to spend $125 million in auction funds by June 30, 2014, on programs benefiting low-income and disadvantaged communities.  Additionally, the bill would limit offsets available to the cap-and-trade participants to only in-state projects.  This will greatly reduce the number of offsets available and dramatically increase the price.  CLFP and other coalition members continue efforts to amend this bill. This bill is now a two-year bill. 

CLFP opposed bill AB 1383, but the bill is now inactive and will not be pursued further this year.  This legislation, authored by the Assembly Labor and Employment Committee, would have allowed local authorities to impose more stringent labor and employment requirements than those already required in the Labor Code.  This would include stricter reporting requirements, notifications, overtime laws, meal and rest breaks which would lead to a patchwork of labor laws across the state that would be overly burdensome for employers.  CLFP will continue to monitor this bill should it start moving again next year.  

One issue that will not be pursued is the Governor’s Proposition 65 Reform legislative package.  The Governor’s Office informed stakeholders that that there is no consensus on the Proposition 65 legislative reforms that Administration advanced.  Although many of the litigation reform proposals will not be possible without statutory changes, the Governor’s staff has assured us that they will continue to work with stakeholders on those reforms that can be done administratively. The CLFP Prop 65 Working Group will continue its work as we move forward at slower pace on long term regulatory issues with the Office of Environmental Health Hazard Assessment (OEHHA) and the Administration.  

Another issue that will not be pursued this year is a resolution to the current cost of unemployment insurance (UI) system for employers.  California employers’ federal UI tax is increasing dramatically according to federal statute and the entire increase goes toward paying down California’s $10.9 million debt owed to the federal government.   Employer stakeholders formed a working group to present a proposal to resolve the problem to the Administration.  The proposal was not accepted by the Administration, but all groups (employers, labor and the Administration) will continue to work on a resolution, although nothing will be finalized this year.