Late-Session Legislative Moves: Key Gut-and-Amend Bills Affecting the Food Processing Industry

A few of the bills of interest that were introduced late, also called gut-and-amends, include AB 98 (Carillo) Planning and zoning: logistics use: truck routes, AB 3121 (Petrie-Norris) Public utilities: incentive programs, and AB 1465 (Wicks) Nonvehicular air pollution: civil penalties.

AB 98 (Carrillo, D – Palmdale) is a new version of Assemblymember Reyes’ AB 1000 warehouse bill. CLFP, with a large group of business stakeholders, opposed this bill which would have required a setback of 1,000 feet from “sensitive receptors” for all new or expanded logistics use facilities that were 100,000 square feet or larger. The bill would have created a de facto ban on warehouses throughout Riverside and San Bernardino Counties with statewide implications to California’s goods movement system.

The new version of the warehouse bill, AB 98, was gut-and-amended on August 28. Under this bill, new logistic use facilities (or expansions to existing ones) must meet stringent buffer zone requirements (300 to 500 feet from sensitive receptors) and mandatory truck route provisions, which severely limit the availability of land suitable for logistics use, even in areas already zoned for industrial purposes. CLFP has concerns with the definition of “logistics use,” which could also include food processing facilities. Many of our members move and store goods, cargo, and products within our facilities. AB 98 does not differentiate a building used solely for manufacturing, nor does the legislation consider buildings that are dual-purpose. CLFP members also would fall under the transportation limitations as they use class 7 and 8 trucks to move products and goods.

This bill was hurriedly pushed through the legislative process in a very truncated fashion with heated arguments from stakeholders in support and opposition. It passed off both the Assembly and Senate floors, and is moving to the governor’s desk for his signature or veto. CLFP is writing a letter of concern to the governor in hopes that clean-up language can be introduced next year.

AB 3121by Assemblymember Petrie-Norris (D – Irvine) was also gut-and-amended on August 28. This bill would have refunded money (approx. $30 per household) from ratepayer funded programs. However, the refunds would have only gone to residential ratepayers although all ratepayers, including CLFP members, have paid into these programs. We opposed the measure with several other entities, and the bill did not pass out of its policy committee and is dead. We can anticipate that energy affordability will continue to be a top priority into next year’s session.

Assemblymember Wicks (D – Oakland) amended her bill, AB 1465, on August 23 adding substantive amendments to the bill which had been stalled last year. While the bill previously focused on refinery operations in the Bay Area, the new amendments include dozens of other industries. As amended, AB 1465 increases existing air district civil penalty limits by a factor of up to three for emissions from a Title V (i.e., major) source that contain one or more air contaminants. Title V sources include, but are not limited to, facilities such as electric generation facilities, food and beverage producers, waste haulers, material recovery and compost and organic facilities and manufacturers of glass, plastic, fibers, cement, steel. Despite CLFP opposing the measure, it passed out of both houses and is headed for the governor’s desk.

CLFP remains opposed to AB 2316 (Gabriel, D – Encino) Pupil nutrition: substances: prohibition and AB 1963 (Friedman, D – Glendale) Pesticides: paraquat dichloride. These bills have also passed through both houses and await the governor’s signature or veto.

Governor Newsom has until the end of September to sign any legislation into law. The legislature will reconvene in December to usher in all new legislators from November’s election. For all intents and purposes, the first year of the next 2-year session will begin in January 2025. If you have any questions, feel free to contact Katie Little, Government Affairs Director: katie@clfp.com.

California League Of Food Producers