M E M O R A N D U M
To: City of Santa Clara
From: Townsend Public Affairs
Casey Elliott, Vice President
Date: April 23, 2024
Subject: Q uarterly Legislative Update
The month of March continued with the Legislature’s quick pace of considering and amending legislation to ensure bills progressed through their House of Origin. In addition to the growing momentum of legislative progress within the Legislature, March featured numerous developments related to addressing priority issues such as retail theft, affordability in the utility sector, and broadband infrastructure.
March 5, 2024 marked the State’s Primary Election, California’s top-two system advances the top two candidates of a race, regardless of political identification, to the November 2024 General Election in statewide and congressional races. Additionally, the March Primary Election saw the passage of Proposition 1, the $6.38 Billion Mental Health Bond.
March featured numerous policy committees and robust agendas for bill considerations. This pace will continue through April and May before bills must cross over to their second house by the May 24 th House of Origin deadline. Looking forward, the Legislature will shift its focus once again to the budget process in May, with the release of the Governor’s “May Revision” of the January budget proposal, followed by the constitutional deadline of June 15 th by which the Legislature must approve a budget bill.
Senate President pro Tempore and Bipartisan Senate Coalition Announce Legislation for a Safer California
In late February, Senate President pro Tempore Mike McGuire, and a bipartisan coalition of Senate members , announced a legislative package aimed a Safer California. The plan, titled Working Together for a Safer California, addresses the fentanyl crisis and retail and community - based crime. The plan, consisting of 14 legislative measures, encompasses strategies such as enhancing access to treatment, providing rehabilitative services for individuals already involved in the criminal justice system, preventing the trafficking of hazardous new substances, and tackling and discouraging incidents of retail theft and c ommunity-based crimes. Key measures from the package, many of which have been recently amended from spot language form in March, are listed below.
Retail Theft and Community-Based Crime
• SB 905 (Wiener) Removes the current locked door loophole for automotive property thefts.
• SB 982 (Wahab) Makes the current law on organized retail theft, set to expire on January 1, 2026, permanent.
• SB 1144 (Skinner) Requires third-party sellers on an online marketplace to be certified, and bans sellers suspected of criminal activity from operating through online marketplace platforms.
• SB 1242 (Min) Requires courts to impose higher penalties on criminals who create fires to engage in retail theft, which do not impact Proposition 47.
• SB 1416 (Newman)
Increases penalties on professional organized retail theft in particularly significant large-scale resale schemes.
Fentanyl Crisis and Substance Use Treatment Measures
• SB 910 (Umberg) Establishes statewide standards used by collaborative courts to improve programming, drug testing, and medication-assisted treatment for individuals moving through the criminal justice system.
• SB 1385 (Roth) Supports navigators in hospital emergency departments and in the criminal justice system to ensure patients and justice-involved individuals are connected to evidence- based treatment for opioid use disorder and to ongoing treatment services.
• SB 1437 (Skinner) Expands the number of re- entry hubs to provide more warm hand-offs and treatment options to individuals returning home from the criminal justice system.
• SB 1468 (Ochoa Bogh)
Encourages providers to make use of the new federal Drug Enforcement Agency (DEA) rule to allow practitioners to dispense a three-day supply of narcotic medication to start detoxification treatment or maintenance treatment for people who use opioids.
• SB 1502 (Ashby) Prevents illicit use and trafficking of Xylazine (aka “tranq”), an animal tranquilizer with no approved human use that is increasingly being found in the illicit drug supply.
Senate Releases Early Action Plan
On March 14
th, the Senate released its budget priorities document, which overviews their proposed amendments to the Governor’s January budget proposal. The priority document has been titled “Protect our Progress,” and serves as an important benchmark for the negotiations between the Governor’s Administration, the Assembly, and the Senate one how each stakeholder would like to see the State’s spending plan for the fiscal year implemented. Since the release of the Governor’s January Budget proposal, which outlined a $38 billion projected shortfall, the Legislative Analyst Office (LAO) has reported the problem could grow by an additional $15 billion, which would take the shortfall to $53 billion. The May Revision of the January Budget Proposal which will incorporate April tax receipts and revenue returns data will provide a more precise number, which could range from lower than $38 billion to higher than $53 billion.
The Senate report suggests that the Legislature could enhance the management of the shortfall by promptly implementing several billion dollars' worth of proposed solutions. To be precise, the adoption of $17.1 billion in solutions, aligned with the Governor's proposal for a partial utilization of the Rainy-Day Fund, constitutes Step 1 of the Senate's Protect Our Progress 2024 budget plan, achieving the following objectives:
• “Shrinks the Shortfall” from a projected $38-$53 billion to a more manageable $9-24 billion.
• Positions the Legislature and the Governor to best protect progress by maximizing the time and energy spent focusing on the most challenging solutions to close the remaining budget shortfall during the critical time leading up to the June 15 constitutional deadline for the Legislature to pass the Budget Bill.
Notably, the Senate proposes to approve a number of the Governor’s proposed funding deferrals, shifts, and delays. This includes the proposed $260 million delay of Supplemental HHA P Round 5 funding, which is directed to local government for homelessness programs and services.
The Senate proposal does not address the Governor’s proposed spending reductions for core programs such as the Regional Early Action Planning (REAP) grant program and the Active Transportation Program (ATP), which provide critical dollars to local governments for housing production and transportation network infrastructure and planning. The lack of information on these programs suggests the negotiation process is still underway between both houses of the Legislature.
On March 20
th, Governor Newsom announced that he and Senate Pro Tem McGuire had agreed on early budget actions that could be taken by the Legislature to help close the current budget shortfall. No official language was released with the announcement, as it is unclear if the Assembly will be supportive of the agreement; however, the compromise is anticipated to reduce the projected budget shortfall by $12-$18 billion.
March Presidential Primary Election Update
On March 5
th, millions of Californians cast their ballot in the State’s Primary Election. O ver 7.7 million ballots were cast in presidential, congressional, legislative, and local races across the State, which represents a voter turnout of just over 34%.
While the race that garnered the most attention was that of President, by time Californians cast their ballots it was clear that the General Election would feature a rematch between President Biden and former President Trump. As such, much of the focus turned to the races to fill California’s Senate seat currently occupied by Senator Butler, the state’s lone ballot initiative, and various legislative races across the state.
As it pertains to the US Senate seat, what was perceived to be a four-candidate race to fill Senator Butler’s seat ended up being a close race between two candidates. As of March 19 th,
Congressman Adam Schiff is the top vote getter with 31.7%, barely edging out Republican Steve Garvey by less than 5,000 votes. Congress Member Katie Porter trailed the two candidates in third with 15.3% and Congress Member Barbara Lee is in fourth with 9.6%. Schiff and Garvey will advance to the November General Election, where Congressman Schiff will be a strong favorite to secure the Senate seat.
Proposition 1 was the only statewide initiative for voter consideration in the March Primary Election. During the 2023 Legislative Session, the Legislature approved AB 531 (Irwin) and SB 326 (Eggman) which comprised a package of reforms to the State’s behavioral health care continuum. Specifically, AB 531 authorized $6.38 billion in general obligation bonds to finance permanent supportive housing and behavioral health treatment settings for individuals experiencing homelessness and behavioral health challenges.
Given the field had been cleared for Proposition 1, and it did not have a well-financed opposition campaign, it was assumed that the measure would have an easy path to victory with Governor Newsom serving as the measure’s primary spokesman. However, as of March 19 th, the results
are too close to call, as the Proposition 1 vote is currently at 50.1% ‘yes’, and 49.9 ‘no’. The ‘yes’ side is currently leading by less than 20,000 votes with over 200,000 votes still yet to be counted.
Pending the final tally, it is possible that the supporters, or opponents, could request a targeted recount of ballots if they feel there is a possibility that it could result in a change in the outcome.
Lastly, the March Primary Election saw 100 legislative seats, as well as all of California’s seats in the House, up for consideration. In each of these races, the top two vote getters will advance to November to determine who will next represent each legislative or congressional district. The 2024 election is an important one in Congress and the Legislature, as there are a large number of incumbent lawmakers that are either termed out (state legislature), retiring, or otherwise did not opt to run for re-election.
Affordability Concerns in the Electric Utility Sector: Assembly Utility and Energy Committee Oversight Hearing
On March 6
th the Assembly Utilities and Energy Committee held an oversight hearing regarding affordability concerns in the electric utility sector, current cost drivers, and implications of future trends. The Committee, Chaired by Assembly Member Cottie Petrie-Norris, heard from panelists, discussed and addressed concerns related to the increasing costs of electricity, and explored solutions to make electricity services more cost-effective and affordable. The hearing focused on understanding the contributing factors to high electricity rates and gatheri ng information from various stakeholders to mitigate the burden on ratepayers and concluded with public comment. Additionally, the oversight hearing also served as the mandatory annual legislative update of the Public Utilities Commission and Public Advocate's Office.
Panelists that discussed current costs drivers included President Alice Reynolds, California Public Utilities Commission (CPUC); Deputy Director of Energy Linda Serizawa, California Public Advocates Office; and Grant Parks, California State Auditor. Panelists that discussed future trends and opportunities included Michael Wara, Director of the Climate and Energy Policy Program and Senior Director for Policy of the Sustainability Accelerator, Stanford University; Adam Pierce, Vice President, Energy Procurement and Rates, San Diego Gas & Electric; Matthew Freedman, Staff Attorney, The Utility Reform Network; Stephanie Doyle, California State Affairs Director, Solar Energy Industries Association.
The panelists discussed the factors contributing to escalating rates such as wildfire mitigation costs, distribution costs, and the shift to clean energy , as well as potential solutions, including improving wildfire spending, reducing cross subsidies for rooftop solar customers, and reevaluating the financing of the clean energy transition. The challenges of affordability and the need for transparency and communication with the public were also discussed by panelists.
Possible proposals to lower high energy rates to consumers includes income-graduated fixed charges, external funding sources, alternative financing options, and low -income customer bill relief. The need to balance affordability with the transition to clean energy sources was emphasized.
Committee Members echoed concerns of the increasing costs of electricity rates and the impact on affordability, the need for transparency and communication from the CPUC and the Public Advocates Office. They discussed the need to address cost drivers and reduce cross subsidies for rooftop solar customers, the importance of strategic spending of funds from the Greenhouse Gas Reduction Fund, the need to consider alternative financing models for the clean energy transition, and the importance of holding utilities accountable to their budgets. Committee Members also discussed the need for information and resources to help consumers understand rate increases. Other concerns include the impact of fixed charges on low-income customers, the affordability of rates for customers in hot inland areas, and the need for income graduated fixed charges. Additionally, concerns were raised about the cost-effectiveness of solutions, the impact of long-distance transmission lines on costs, the lack of federal funding for rooftop solar subsidies, the evaluation and elimination of non-cost -effective programs, and the potential negative effects of a utility tax on working-class residents.
CPUC Receives Resistance to Increasing Energy Fees from Member of Congress
On March 25 th, seventeen Congressional Members of the California Delegation sent a letter to the California Public Utilities Commission (CPUC) to avoid imposing a high monthly fee on electricity customers. They expressed concern that a high fixed charge could undercut investments in renewable energy and energy efficiency that Congress intended to encourage with the Inflation Reduction Act. Additionally, they are further concerned that a high fixed charge could increase the electricity bills of millions of Californians, especially those who live in small homes, condos and apartments, and such setbacks could harm our progress on federal and state clean energy, climate, and equity goals.
The Members of Congress who signed the letter didn’t outright oppose a fixed charge but said
the CPUC should avoid a “high” charge. The CPUC proposal has been a hot topic issue as Legislators are driven by growing concerns from constituents regarding utility bills, as PG&E prices have surged by up to 127% over the past ten years.
To halt the fixed charge proposal, Assembly Member Irwin introduced Assembly Bill 1999 which
would repeal the income-graduated utility rate charge structure for residents serviced by investor-owned utilities (IOUS). Additionally, the measure would instead reinstate the CPUC’s
maximum fixed rates of $10 per residential customer account per month for customers not enrolled in the California Alternate Rates for Energy (CARE) program and $5 per residential customer account per month for customers enrolled in the CARE program.
LAO Releases Report on Broadband Infrastructure
In March, the Legislative Analyst’s Office (LAO) released an overview and recommendations of
the 2024-25 budget for broadband infrastructure in California. The Governor’s January Proposed Budget requests a net total of $750 million General Fund in 2024-25 for state broadband infrastructure programs and projects—$500 million in planned appropriations and $250 million in new appropriations. The $500 million in planned appropriations is net of a proposed $100 million delay and $150 million reduction in otherwise planned appropriations for 2024-25.
The LAO expressed the importance of Legislative oversight in broadband infrastructure implementation which ensures accountability, maximizes impact, addresses budgetary concerns, and promotes equity and access. Additionally, ensuring that underserved communities have equitable access to broadband infrastructure.
The LAO also recommendations to the Legislature include the following:
• Approve the $250 million General Fund included in the California Department of Technology’s (CDT’s) operating budget in 2024-25 for the middle-mile network.
• Reject the additional $1.5 billion General Fund proposed in the Governor’s budget, as well as the proposed budget bill language.
Consider additional Budget solutions such as reduction in appropriations for last- mile project grants (given the availability in 2024-25 of $1.86 billion in federal Broadband Equity, Access, and Deployment program funding), as well as additional reductions of up to $500 million General Fund in Loan Loss Reserve Fund (LLRF) support.
Legislative Calendar
The Legislature has begun the second year of the 2023-24 Legislative Session. As of the bill introduction deadline of February 16
th, the Legislature introduced over 2,100 new bills for consideration, in addition to the two-year bills that remain eligible for consideration.
Below are the upcoming relevant dates for the Legislature:
April 26
th – Deadline for House-of-Origin policy committees to approve fiscal bills May 3rd – Deadline for House-of-Origin policy committees to approve non-fiscal bills May 17th – Deadline for House-of-Origin fiscal committees to send bills to the Floor May 24th – Deadline for bills to pass out of their House-of-Origin June 15th – Deadline for the Legislature to approve a budget bill
Priority Legislation
The State Legislature returned from interim recess in January to begin the second year of the 2023-24 legislative session. As it is the second year of a two-year session, those bills that did not progress in the previous session and were marked as “2-Year Bills” had the opportunity to progress at the behest of their authors until the end of January. Additionally, legislators had until February 16
th to introduce new bills. Ultimately, the Legislature introduced 2,124 new bills prior to the deadline; 1,505 Assembly Bills, and 619 Senate Bills.
Notable introductions include the following:
Housing and Land Use
• AB 1889 (Friedman)
requires local governments to incorporate a wildlife connectivity plan into the next update or amendment to its general plan beginning after January 1, 2025
• AB 2583 (Berman) requires local governments to identify and establish school routes for all schools located within the scope of the general plan and establish a posted speed limit no more than 25 miles per hour within a school route beginning 2025 and within every amendment or update to the general plan thereafter.
• AB 3057 (Wilson) exempts from CEQA the adoption of an ordinance by a city or county to provide for the creation of JADU in single-family residential zones.
• AB 3068 (Haney) deems an adaptive reuse project a use by right in all zones, so long as it conforms to affordable housing minimums and other requirements.
Homelessness
• SB 1011 (Jones) prohibits unhoused individuals from loitering on public property, so long as peace officers provide them with 72 hours of notice and resources related to available services and housing.
• SB 1361 (Blakespear) exempts from CEQA’s requirements actions taken by a local agency to approve a contract for providing services related to homelessness.
Public Safety
• AB 2309 (Muratsuchi) authorizes the city attorney of any general law city or chartered city to prosecute any misdemeanor committed within the city arising out of violation of state law without the consent of the district attorney.
• AB 3085 (Gipson) increases punishments for various offenses related to driving a vehicle recklessly or participating in a speed contest, particularly those that occur during a sideshow event.
• SB 905 (Wiener) clarifies that the victim of a car burglary does not need to prove that their vehicle was locked to press charges, thus strengthening prosecution resources.
• SB 982 (Wahab) makes permanent the current law that is in effect until January 1, 2026, which makes a person guilty of organized retail theft, punishable as a misdemeanor or a felony.
Public Works
• AB 2346 (Lee) authorizes local jurisdictions to be credited for the procurement of recovered organic waste products through an agreement with a direct service provider and would allow the direct service provider agreement to include the procurement of recovered organic waste products on a prospective or retrospective basis as long as the purchase of those products occurs during the year for which the local jurisdiction seeks credit. The bill also allows local governments to count investments made for the expansion of capacity of compostable materials into their procurement targets.
• AB 2619 (Connolly) repeals the CPUC net energy metering 3.0 (NEM 3.0) ruling that cut incentives for customers to install solar and would restore the previous net energy metering incentives/market.
Revenue and Taxation
• AB 2430 (Alvarez)
prohibits local governments from charging monitoring fees on developments that include a 100% affordability component for lower income households and have received a density bonus. Additionally, the bill phases out all monitoring fees on existing properties that meet these standards beginning 2025.
• AB 2553 (Friedman) revises zoning standards by which a local government may impose a vehicular traffic impact fee from a “transit station” to a “major transit stop,” thus narrowing the applicability of sites eligible for the imposition of those fees. The bill further modifi es the definition of what constitutes a major transit stop to increase the frequency of service intervals from 15 to 20 minutes.
• AB 2813 (Aguiar-Curry) makes statutory changes to ACA 1 which will appear on the November 2024 ballot to lower the voter threshold for the passage of general obligation bonds from 2/3 to 55%. This bill modifies the allowable uses of funds generated via bonds to include affordable housing programs. Further, the bill specifies that special taxes are limited to a useful life of at least 15 years or 5 years if the funds are used for public safety purposes. The bill also specifies that a local government may commit revenues to projects or programs administered by nonprofit organizations for affordable or permanent supportive housing programs.
Transportation
• AB 2427 (McCarty)
requires G O-Biz to develop a model permitting checklist, model zoning ordinances, and best practices for permit costs and permit review timelines to help local governments permit curbside charging stations as part of the office’s development of the Electric Vehicle Charging Station Permitting Guidebook or any subsequent updates.
• AB 2626 (Dixon) extends the compliance dates for local government set forth in the Advanced Clean Fleets Regulation by 10 years.
• AB 2744 (McCarty) prohibits the addition of a right-turn or travel lane within 20 feet of a marked or unmarked crosswalk where there is not already a dedicated and marked right- turn or travel lane, and would prohibit vehicles from using this 20-foot area for right turns unless the area is already marked as a dedicated right-turn lane before January 1, 2025.
• SB 1216 (Blakespear) prohibits, on and after January 1, 2025, an agency responsible for the development or operation of bikeways or highways where bicycle travel is permitted from installing a Class III bikeway or restriping a Class III bikeway on a highway that has a posted speed limit greater than 30 miles per hour.
FY2024 Appropriations Complete
President Biden signed the Consolidated Appropriations Act ( H.R. 4366 ) and the Further
Consolidated Appropriations Act ( H.R. 2882 ), ending the FY2024 appropriations process five months into the fiscal year and averting a government shutdown.
In H.R. 4366, The Veterans Affairs Department, military construction projects, and related agencies will receive $155.7 billion in discretionary funding. The Department of Transportation and Housing and Urban Development will receive a total of $89.5 billion, and $14.7 billion will be allocated to the Department of the Interior.
Through H.R. 2882, House Republicans achieved a $27 billion increase to the Defense budget.
H.R. 2882 allocates $19.6 billion for U.S. Customs and Border Protection, including $496 million for 22,000 Border Patrol agents. Labor, Health and Human Services, Education, and Related Agencies are to receive $194.4 billion in discretionary allocation. Republicans also celebrated $20.2 billion in budget cuts and a reduction of 85,000 IRS agents.
FEDERAL LEGISLATIVE UPDATES
House Democrats prevented several policy riders from being attached to legislation by House Freedom Caucus members. These riders took aim at Diversity, Equity and Inclusion, LGBTQ+, and human rights initiatives. House Democrats also staved off large spending cuts to the foreign operations budget, making it possible for Ukraine and Israel funding negotiations to resume. The House is quickly beginning the FY2025 process due to the late enactment of FY2024 appropriations.
FY2025 spending caps were agreed upon by President Biden and former Speaker Kevin McCarthy during Fiscal Responsibility Act (FRA) negotiations in spring 2023, so the focus will be on disbursement across agencies and programs. Congressional leadership is expected to continue to debate nondefense spending beyond the $710.7 billion cap dictated by the FRA. On March 20, the House Ways and Means Committee and multiple House Appropriations Subcommittees held hearings on President Biden’s budget request, officially moving on from FY2024.
Nonetheless, there may be delays, as Congresswoman Kay Granger is stepping down as House Appropriations Committee Chairwoman. Her announcement came hours after the House voted to pass H.R. 2882. Committee Vice Chairman Tom Cole was first to announce his candidacy for Chair. After standing in for Chairwoman Granger while she was out sick for a few hearings last year, Rep. Ken Calvert said, “it’s obvious that [Vice Chairman Cole] is the clear -cut favorite.” It's speculated that Rep. Robert Aderholt may also pursue the role.
President Biden Releases FY2025 Budget
The White House released the annual Presidential budget proposal, outlining President Biden’s tax and spending priorities for the next decade. President Biden requested $7.3 trillion in total spending for FY2025. The budget proposes $3.3 trillion of net deficit reduction through 2034.
During President Biden’s State of the Union address, he pitched a higher minimum corporate tax and a 25% minimum tax for billionaires. According to an Office of Management and Budget official, the U.S. would see debt reductions if the proposal were enacted. The budget proposal opposes benefit cuts to Social Security and Medicare. Democrats and Republicans continue to discuss altered funding levels for senior entitlement programs, a conversation which occurs every year.
Senator Schumer Outlines Upcoming Senate Agenda
Majority Leader Chuck Schumer aims to return to other legislative activities now that the government is funded through September. He may be hoping for a summer as productive as the 117
th Congress, but in an election year he may not receive Republican support.
Measures that Senator Schumer has indicated he would like to advance in the coming months include S.1409, the Kids Online Safety Act, which has 65 bipartisan cosponsors and may be one of the easier items to cross off the agenda. Another bill, S.1409 requires covered platforms such as social networks to protect minors from sexual exploitation and online bullying.
H.R. 7024, the
Tax Relief for American Families and Workers Act of 2024, passed in the House with major bipartisan support but faces an uphill battle in the Senate. H.R. 7024 provides tax cuts to corporations who spend money on research and development projects, and it also expands the child tax credit.
S. 2860, the Secure and Fair Enforcement Regulation Banking Act (SAFER), which intends to help state-legal cannabis businesses access the banking system, could see a vote on the Senate Floor too. Each of these items could be attached as an amendment to mandatory FAA Reauthorization and FISA Reauthorization.
Congress Passes Legislation to Reduce Fentanyl Trafficking
On March 7 th, Congress passed S. 206 , the End Fentanyl Act with overwhelming bipartisan support. By requiring the Commissioner of U.S. Customs and Border Protection to update its policies every three years, this legislation hopes to reduce international drug trafficking into the U.S. The recent focus on border reform discussions has brought national attention to all issues within that jurisdiction. This provided a catalyst for House and Senate members to send the legislation to President Biden. Most members from the California Delegation voted in favor of the bill.
House Transportation and Infrastructure Committee Holds Hearing on Discretionary Grants
On March 7
th, the House Committee on Transportation and Infrastructure (T&I) held a hearing to receive updates from industry representatives on Department of Transportation (DOT) discretionary grants. Two years ago, the Bipartisan Infrastructure Law authorized $196 billion over five years for new and existing DOT competitive grant programs. Committee Chairman Sam Graves stated that industry leaders and stakeholders have experienced issues with applying for and securing these grants from DOT. The hearing witnesses cited problems with delays, grant announcements, and rulemaking. The intent of the hearing was to address these issues and improve the grant process as the Committee prepares for the next highway bill in the next Congress. Witnesses that provided testimony were government officials and nonprofit representatives.
Senate Environment and Public Works Committee Holds PFAS Hearing
On March 20
th, the Senate Environment and Public Works Committee held a full committee hearing to examine the dangerous effects of PFAS and other hazardous chemicals. Committee Chairman Tom Carper stated that the objective was to better understand PFAS and the impacts of regulations like the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Committee Ranking Member Shelley Moore Capito echoed the Chairman’s sentiments and called for a return to the bipartisan legislation delayed by other priorities. These comments came after Sen. Capito’s recent comments about her desire to see certain organizations impacted by PFAS contamination exempted from liability under CERCLA.
Hearing witnesses —government officials, non- profit representatives, and industry attorneys — discussed the impacts of PFAS on water in their communities.
EPA to Finalize National Standards for PFAS in Drinking Water
The EPA is close to finalizing enforceable national drinking water standards for per - and polyfluoroalkyl substances (PFAS), commonly known as forever chemicals. Between 3,400 and 6,300 public water systems—serving up to 94 million people—could be affected by the new rule, according to the EPA. The agency estimates that implementation of the new standards could cost local governments and utilities between $772 million and $1.7 billion a year nationwide.
The EPA’s new regulation would target six compounds, including two of the most frequently detected ones—PFOS and PFOA—and cap their maximum contaminant level in public drinking water to just 4 parts per trillion. That’s the lowest level at which the substances can be reliably detected in the lab and is lower than the allowable amount from any enforceable state regulation currently in place.
Local governments have expressed concern that without additional funding from Congress, the required upgrades will place an undue financial burden on them. The National League of Cities, the US Conference of Mayors, and the National Association of Counties sent a joint letter to the EPA stating that the $10 billion in grants appropriated by the Bipartisan Infrastructure Law is not enough to offset total costs.
The EPA has until September to finalize the new rule, though the agency has said it expects the final rule to come out in early 2024. After that, local governments will have three years to comply, which could involve finding new sources of water or installing specialized treatment facilities.
Meanwhile, congressional committees are considering legislation to shield government entities and passive recipients of PFAS from liability. There is concern that airports and waste management operators could be held liable for PFAS contamination under the superfund law once EPA finalizes its new standard. Legislation has been under negotiation for more than a year and further action is hoped for this year.
EPA Finalizes Vehicle Pollution Standard
The U.S. Environmental Protection Agency (EPA) announced their final rule on national pollution standards for passenger cars, light-duty trucks, and medium-duty vehicles for model years 2027– 2032. The rule establishes new protections by reducing smog- and soot-forming pollution from vehicles and regulating tailpipe emissions. The EPA projects that Multi-Pollutant Emissions
Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles w ill avoid more than 7 billion tons of carbon emissions and provide nearly $100 billion of annual net benefits to society, including $13 billion of annual public health benefits and $62 billion in reduced annual fuel and maintenance costs. Sales of "clean" vehicles hit record highs last year, and the EPA expects electric vehicles to account for up to 56% of new passenger vehicles sold for model years 2030–2032.
President Biden remains committed to meet the carbon emissions reduction goals he identified at the beginning of his term. Furthermore, his Administration believes the new rule will amplify the clean vehicle industry. The U.S. is investing in battery and electric vehicle manufacturing, and a senior administration official stated that these regulations will help shift the U.S. away from relying on fossil fuels for transportation. However, gas powered vehicles are not obsolete. Per the rule, an automaker still can make vehicles with higher emissions if they meet quotas for clean vehicles.
In an election year, this protects President Biden from alienating voters while still addressing climate change.