1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 1 Date: September 3, 2025
To: Christian Clegg, City Manager
City of Bakersfield
From: Sharon Gonsalves
Managing Director
California Public Policy Group
Re: CPPG Legislative Summary — August 2025
LEGISLATIVE UPDATE
Legislature Returns From Summer Recess For Final Stretch The Legislature returned from its Summer Recess on August 18 after having spent the previous four weeks on break. Since reconvening, the Legislature has moved quickly to advance remaining measures. On August 29, the Assembly and Senate Appropriations Committees held their final Suspense File hearings of the year to send fiscal bills to the Floor. Of the 686 bills on the Sus pense File, 498 made it out of Appropriations and onto the Floor.
September 2 to September 12 is reserved for Floor session and only unscheduled, “off the floor” hearings will occur. This is when a committee chair calls an impromptu hearing of their committee during Floor session. Hearings of this type are typically announced with little warning and are held in a nearby committee room, potentially delaying Floor session business. There’s also the 72-hour rule to be aware of, which requires that a bill’s final language be publicly available for at least 72 hours before it can be taken up for a final vote on the Floor. Given that the Legislature will adjourn for the year on September 12, the last day that a bill could be amended is September 9.
During most of the legislative session, the Governor has 12 days to either sign or veto a bill received from the Legislature , otherwise the bill automatically becomes law. Starting September 1, this period increases to 30 days. The final date for the Governor to take action on a bill is October 12.
As of September 3, about 800 bills are still actively making their march through the legislative process, while 270 have been chaptered, one has been vetoed, and approximately 1,700 are no longer moving.
Low Carbon Fuel Standard Informational Hearing
On August 27, the Assembly Select Committee on the Transportation Costs and Impact of the Low Carbon Fuel Standard held an informational hearing on the costs and the impact of the Low Carbon Fuel Standard (LCFS). The Committee examined whether California’s LCFS raises gasoline prices and whether any added costs deliver value . California Air Resources Board chair Liane Randolph stated that the program has had a role in improving air quality and spurring innovation amid federal efforts to undermine LCFS. CARB’s Matt Botill outlined the declining carbon-intensity targets and the credit/deficit system, noting alternative fuels grew from ~5% of volumes in 2006 to ~27% in 2024.
CEC Vice Chair Siva Gunda referenced SB 1322 and Oil Price Information Service data, and discussion clarified that LCFS cannot easily be folded into Cap and Trade, and that fuels like
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 2 renewable diesel, electricity, hydrogen, and renewable nature gas can achieve negative carbon intensity. UC Berkeley’s Aaron Smith stated that LCFS increases gas prices and overlaps with other policies, while Andy Navarette , representing the International Council on Clean Transportation, emphasized LCFS as a key zero emission vehicle enabler, citing $6k–$11k six-year electric vehicle savings and the program’s crucial role in charging infrastructure, especially for trucking. UC Davis’s Collin Murphy flagged design issues to watch (energy -economy ratios, additionality, Indirect Land Use Change risk, rebound effects) and legal constraints on in -state-only crediting, while stakeholders broadly agreed LCFS has been instrumental in cutting emissions and building infrastructure.
Housing Affordability Informational Hearing
On August 27, the Assembly Select Committee on Housing Finance and Affordability held an informational hearing to discuss housing affordability. Assemblymember Anamarie Avila Farias (D- Martinez), who previously worked in affordable housing, opened the session by stressing the need to simplify the financing landscape and deliver concrete recommendations to both the legislature and the Governor, citing the current median Californian home price of $884,000. Assemblymember John Harabedian (D-Sierra Madre) stated that, unless affordable housing is delivered quickly, California will continue to fail its constituents. Christina Mun, representing the California Housing Partnership, stated that affordable housing developments rely on a “stack” of multiple funding sources, typically at least five, with the Low -Income Housing Tax Credit serving as the foundation. She claims that subsidies are essential for low -income housing because affordable housing rents cannot alone support mortgages or attract private capital.
The most significant development centered around Federal policy changes , which have reshaped how tax credits are paired with bond financing. Previously, projects needed 50 percent of their funding backed by tax -exempt bonds to qualify for four percent federal tax credits for low -income housing. Federal policy changes have reduced this requirement to 25 percent, effectively doubling capacity. Marina Wiant, executive director of the California Tax Credit Allocation committee, stated that under the old rules, the four percent program produced about 15,000 units annually, while the 9 percent program created around 3,000. With the new structure, the state could see as many as 30,000 units a year built under the four percent program alone. Rebecca Franklin, Deputy Director of the California Housing Fina nce Agency, stated the need for a coordinated homelessness plan and suggested reviving local financing tools. Assemblymember Quirk -Silva (D-Fullerton) stressed the need for legislation targeting the finance landscape in California, specifically as related to Accessory Dwelling Unit financing, while criticizing the lack of serious progress in the housing finance landscape.
ADMINISTRATION UPDATE
On August 14, Governor Gavin Newsom and legislative leadership announced “the launch of a statewide effort that will enable Californians to fight back against President Trump’s attempts to rig” congressional elections in Texas. On August 18, Governor Newsom announced the introduction of three pieces of legislation to implement this effort: AB 604 (Aguiar-Curry), ACA 8 (Rivas), and SB 280 (Cervantes). The legislative package calls a special election for November 4, 2025 asking voters to approve a constitutional amendment t hat would temporarily supersede the congressional redistricting process in the state constitution. Known as Proposition 50 on the ballot , the amendment proposes to put newly drawn congressional districts into effect until the next certification of those districts in 2031. The legislative package authorizes the Department of Finance
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 3 to determine the amount of funds, and to appropriate those funds, from the General Fund for implementation. AB 604 and SB 280 were passed by the Legislatur e on August 21. That same day, the Governor announced that he had signed the legislation into law. Both measures went into effect immediately. ACA 8 was also passed by the Legislature on August 21 . Since ACA 8 is a proposed amendment to the constitution , it is not sent to the Governor to be acted upon. The proposed temporary congressional districts can be viewed here.
ACTIVE POSITIONED LEGISLATION
• AB 237 (Patel) Crimes: threats.
Location: Senate Floor
Position: Support
• AB 339 (Ortega) Local public employee organizations: notice requirements. Location: Senate Floor
Position: Oppose
• AB 348 (Krell) Full-service partnerships.
Location: Senate Floor
Position: Support
• AB 379 (Schultz) Crimes: prostitution.
Location: Assembly Chaptered
Position: Support
• AB 400 (Pacheco) Commission on Peace Officer Standards and Training: police canines. Location: Senate Floor
Position: Support
• AB 416 (Krell) Involuntary commitment.
Location: Senate Floor
Position: Support
• AB 507 (Haney) Adaptive reuse: streamlining: incentives. Location: Senate Floor
Position: Support
• AB 630 (González, Mark) Abandoned recreational vehicles. Location: Senate Floor
Position: Support
• AB 650 (Papan) Planning and zoning: housing element: regional housing needs allocation. Location: Senate Floor
Position: Support
• AB 735 (Carrillo) Planning and zoning: logistics use developments: truck routes. Location: Senate Floor
Position: Neutral
• AB 1265 (Haney) Income taxes: credits: rehabilitation of certified historic structures. Location: Assembly REV. & TAX SUSPENSE FILE
Position: Support
• SB 27 (Umberg) Community Assistance, Recovery, and Empowerment (CARE) Court Program.
Location: Assembly Floor
Position: Support
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 4 • SB 79 (Wiener) Housing development: transit-oriented development. Location: Assembly Floor
Position: Oppose
• SB 415 (Reyes) Planning and zoning: logistics use developments: truck routes. Location: Assembly Floor
Position: Neutral
• SB 487 (Grayson) Workers’ compensation.
Location: Assembly Floor
Position: Watch
• SB 577 (Laird) State Government.
Location: Assembly Floor
Position: Watch
• SB 661 (Hurtado) Airports: financial assistance.
Location: Assembly Revenue and Taxation
Position: Support
• SB 707 (Durazo) Open meetings: meeting and teleconference requirements. Location: Assembly Floor
Position: Watch
• SB 820 (Stern) Inmates: mental health.
Location: Assembly Floor
Position: Support
LOOKING FORWARD
• September 12: Last day for the Legislature to pass bills; end of the 2025 legislative session • October 12: Last day for the Governor to sign or veto bills • January 1: All legislation signed into law in 2025, unless otherwise excepted, goes into effect • January 5: The Legislature reconvenes for the second year of the 2025-26 legislative session
GRANT WRITING
CPPG continues to monitor new regional, state, and federal grant opportunities on behalf of the City of Bakersfield. The August 2025 Municipal Funding Outlook was sent out on August 29 th. On August 6th, 13th, 20th, and 27th Senior Grant Writing Associate Maira Durazo met with Staff from the City and County to discuss the City’s application for the Homeless Housing, Assistance and Prevention Program (HHAP). On August 8 th, Director of Grant Services Jake Whitaker and Grant Services Assistant Kylie Sheridan had a meeting with Juan Heredia regarding the EPA Community Change Grant re-writes and next steps. Also on August 8th, J. Whitaker, M. Durazo, and K. Sheridan met with J. Heredia for a bi-weekly check-in. M. Durazo met with Missy Eaton, Alyssa Olivera, and Christopher Hinds to discuss the HHAP application and the housing portion of the project on August 11 th. J.
Whitaker presented at the City’s Grant Readiness or Local Governments Webinar on August 13th. The Monthly Grants Meeting was held on August 21 st. M. Durazo, Grant Services Intern Remi Beck, and K. Sheridan attended a bi-weekly check-in meeting with J. Heredia on August 22nd. On August 26th, J.
Whitaker met with Jason Cater, Jennifer Byers, Zach Garcia, and J. Heredia to discuss the EPA’s direction to closeout the Community Change Grant before the dispute has been settled. On August 27th, J. Whitaker attended a meeting between the City and Horne to discuss the EPA closeout direction. On August 28th, J. Whitaker met with J. Cater, Z. Garcia, J. Heredia, and Sharon Cohen from
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 5 Horne to discuss EPA Community Change Grant re -writes. On August 29 th, J. Whitaker and J. Cater finalized the EPA Community Change Grant re-writes.
Grant applications in progress include the Hazard Mitigation Grant Program.
Pending applications include the following:
• Assistance to Firefighters Grant submitted on December 20, 2024 for $314,148.58. Funding will be used to purchase NXT Thermal Imaging Cameras.
• Solid Waste Infrastructure for Recycling Grant submitted on December 20, 2024 for $5,000,000. Funding will be used to update equipment for the Material Recovery Facility. • Community Project Funding submitted to Rep. Valadao on April 11, 2025 for a total of $12,000,000. Funding will be used for the Monitor St. Complete Streets, MLK Sewer Improvements, and Downtown Complete Streets projects.
• Congressionally Directed Spending submitted to Sen. Padilla on March 31, 2025 for a total of $4,500,000. Funding will be used for the Monitor St. Complete Streets, MLK Sewer Improvements, and Downtown Complete Streets projects.
• Congressionally Directed Spending submitted to Sen. Schiff on March 31, 2025 for a total of $12,000,000. Funding will be used for the Monitor St. Complete Streets, MLK Sewer Improvements, and Downtown Complete Streets projects.
• Kern Coalition Jobs First Catalyst Funding submitted on April 31, 2025 for $1,496,116.
Funding will be used to explore feasibility for renewable energy/advanced manufacturing sector development.
• Homekey+ Program submitted on May 30, 2025 for $12,635,799. Funding will be used for the Ramkabir Permanent Supportive Housing Project.
• LEMHWA Grant submitted on June 30, 2025 for $192,000. Funding will be used for the Shielding the Frontline Program.
• Fire Prevention & Safety Grant submitted on July 3, 2025 for $325,931.63. Funding will be used to launch a Wildfire Mitigation Division.
• Land and Water Conservation Fund submitted on August 5, 2025 for $3,207,625. Funding will be used for the MLK Park Reimagining and Revitalization Project. • Homeless Housing Assistance and Prevention submitted on August 29, 2025 for $6,504,298.
Funding will be used to build affordable housing related infrastructure.
Additionally, CPPG sent grant alerts on the following upcoming funding opportunities: Rubberized Pavement Grant Program, Communities in Charge Incentives Program, Alcohol Beverage Control Grant, and a re-send of the Homekey+ Program’s extended deadline.