Environmentalists won on Wednesday

Lawmakers on Wednesday sent a measure to Gov. Jerry Brown creating legislative oversight of the California Air Resources Board — a vital piece in the state’s climate agenda.

Assembly Bill 197’s companion legislation, SB32, which expands CARB’s authority to create and implement programs to meet reduced greenhouse gas emission targets, can only become law if the oversight bill is signed into law.

The oversight bill would create a joint legislative committee to oversee CARB and would add two legislators to CARB as non-voting members. 

CalWatchdog has more. 

In other news:

• “If the state’s revamped standardized tests are accurately measuring what they set out to measure, one thing is clear: California has miles to go before all of its students are on an equal footing to face an economy that increasingly demands a college degree and stronger workplace skills. The good news, if there is good news, is there’s improvement over last year,” writes the Los Angeles Times.

• “California lawmakers have sent a bill to the governor’s desk that would expand the legal definition of rape so it includes all forms of nonconsensual sexual assault,” writes the Los Angeles Times.

• “Welcome to the state Legislature’s annual civil war. Forget Democrats and Republicans – the divide most likely to make an impact on the outcome of this session is the perpetual rivalry between the Senate and Assembly. It’s a long-running tension, built naturally into the bicameral setup of the legislative process, that might wax and wane with differences in the relationships between house leaders and policy priorities. But it tends to flare up again at the end of every session as each house gets its hands on the other’s bills, holding some for ransom and enacting their revenge for slights, real or perceived,” writes The Sacramento Bee.

• Legislature sends bill curbing abuses by law enforcement of civil asset forfeiture to Gov. Jerry Brown, reports The Sacramento Bee.  

Assembly:

• In at 10 a.m.

Senate:

• In at 10 a.m.

Gov. Brown:

• No public events announced. 

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Senate Bill 32 would require the Air Resources Board to ensure that greenhouse gas emissions in the state are reduced at least 40 percent below 1990 levels by 2030. Essentially, the bill builds on its predecessor, AB32, which required the ARB to achieve 1990 levels by 2020. 

To achieve these goals, the measure would continue to give the ARB the authority to create and implement regulations with blanket legislative approval, which has been one of the main critiques of the current program.

The most controversial measure taken by the ARB thus far has been the state’s cap and trade auction program, which a pending lawsuit argues imposed an illegally-passed tax on businesses.

While the Assembly was voting on SB32, the ARB released the results of the most recent cap and trade auction, which missed its target again by selling around one-third of the available emission credits. 

State of play

One slight legislative hurdle still in SB32’s way is a provision that it’s only effective if another measure, AB197, becomes law as well. This companion bill would create a legislative policy committee to oversee the ARB and adds two legislators as non-voting members of the board.

AB197 cleared the Senate on Monday and heads back to the Assembly for a concurring vote. Like SB32, its toughest test is behind it, although it’s still vulnerable in the Assembly — and opponents know it.

The climate battle isn't over yet — oil companies are trying to target #AB197, which is tied to #SB32. @melmason: https://t.co/I5A2ofmoTC

— Chris Megerian (@ChrisMegerian) August 23, 2016

On Tuesday, legislators argued the pros and cons of the measure, largely along party lines. Republican Assemblyman James Gallagher of Nicolaus argued that the state’s environmental policies have hurt businesses and job creation, particularly in the oil and gas sector and among truckers.

Questionable process

Assemblyman David Hadley, a Torrance Republican, decried the bill as a gut-and-amend that hadn’t been fully debated in a policy committee.

“Observe the basic procedural tenets,” Hadley said.

Gut and amend is a procedural maneuver used to circumvent the normal legislative process that’s especially popular during the end of session. A measure to be considered by voters in November would curb the most egregious abuses of gut and amend.  

Toxic air 

Proponents largely made arguments that passing SB32 was the right thing to do. Assemblyman Jimmy Gomez, D-Los Angeles, complained about growing up in Riverside and often being unable to see Big Bear just mere miles away through the smog, or not being able to play outside as a result of negative quality warnings.

A recent report suggested that the greater Los Angeles area has the most toxic air in the nation, causing around 1,341 deaths annually. 

Accountability

Speaker Anthony Rendon talked up the increased accountability measures in AB197. 

“With SB32, we continue California’s leadership on climate change, we keep making sure our air gets cleaner, and we ensure the economic and environmental benefits of our efforts reach all California communities,” the Paramount Democrat said after the vote. “To ensure those goals are achieved, we must also pass AB197 to ensure greater legislative oversight, as well as agency accountability and data transparency from the California Air Resources Board.”

The levels

For what it’s worth, total GHG emissions in 2014 (the most recent data) were 441.5 million metric tons of carbon-dioxide equivalent, and the target by 2020 is 431 MMTCO2e.

In 2007, around AB32’s passage, greenhouse gas inventory reached 479.74 MMTCO2e. This is according to data provided by the ARB.

A number of large business organizations have offered support for funding sources to be used for transportation infrastructure purposes on one hand, while on the other strongly opposed both general and specific tax measures such as a property tax increases on commercial property (SCA5) and making it easier to raise local taxes (ACA4).

Some in the business community probably hope that support for transportation revenue may be balanced with other tax measures and other bills meeting a dead end.

The focus on the minimum wage issue, so recently debated in cities and counties, will come back to the state capitol (Senate Bill 3) along with concerns for rising workers compensation costs. Capitol-centered business interests will argue a double whammy on the economy with minimum wage increases and rising workers comp costs. They will try to find a solution to workers comp increases while leaving the politics of minimum wage to local jurisdictions.

The saga of environmental regulations and the resulting costs imposed on businesses will continue to be played out, especially focused on fuel costs if petroleum reduction measure SB350, and an increased greenhouse gas regulation (SB32) become law.

The California Chamber of Commerce is monitoring its list of Job Killer bills as it does every year.

Business is not a monolith, however. Small business and big business may express different views and even within these broad business categories there are differences of opinion. That could complicate the drive to find common ground with the Legislature and governor.

Business often survives on the art of the deal – a negotiation that leads to a gain for both sides of the negotiation. Similarly, government is said to advance on the art of compromise. So will broad business interests achieve certain goals while satisfying the powers-that-be under the capitol dome?

You can bet the discussions are already taking place. As to the results — we shall see.