HomeMy WebLinkAbout2024-12-10; City Council Legislative Subcommittee; 02; Legislative and Advocacy UpdateMeeting Date: Dec. 10, 2024
To: Legislative Subcommittee
From: Jason Haber, Intergovernmental Affairs Director
Staff Contact: Jason Haber, Intergovernmental Affairs Director
jason.haber@carlsbadca.gov, 442-339-2958
Subject: Legislative and Advocacy Update
District: All
Recommended Action
Receive updates on federal and state legislative and budget activity and recent and ongoing
advocacy efforts; discuss and provide feedback to staff, including identifying high-priority bills,
advocacy positions, funding opportunities, and items for future City Council consideration.
Discussion
Staff and the city’s contract lobbyists – Federal: Carpi & Clay Government Relations / State:
California Public Policy Group – will present updates and overviews of federal and state legislative
activity (Exhibits 1 through 3) and intergovernmental matters being tracked on behalf of the city.
The Subcommittee is requested to provide feedback to help city staff and the city’s lobbying
consultants focus the city’s advocacy efforts on high-priority bills and to identify bills for future City
Council consideration.
Next Steps
Staff and the city’s contract lobbyists will monitor, evaluate, and engage the Legislative
Subcommittee in a discussion of legislative activity and proposed measures that may impact city
operations and policy priorities throughout the year.
If the Legislative Subcommittee decides to refer any matters to the City Council, staff will work with
the City Manager to place an item on a future City Council agenda for consideration.
Exhibits
1.Carpi & Clay Government Relations – Federal Update
2.California Public Policy Group – 2024 End of Year Report
3.California Public Policy Group – Summary of State Legislature’s 2025-26 Organizational Session
LEGISLATIVE SUBCOMMITTEE
Dec. 10, 2024 Item #2 Page 1 of 38
1
November 25, 2024
City of Carlsbad
Federal Update
www.carpiclay.com
Exhibit 1
2024 Presidential Election & Transition
On November 6th, former President Donald Trump (R) won election to a nonconsecutive second
term as president. This is the second time a President has been elected to nonconsecutive terms
after Grover Cleveland served as the 22nd and 24th President. Trump defeated Vice President
Kamala Harris (D) by an Electoral College vote of 312-226. President-elect Trump began naming
nominees for his Cabinet and other White House positions. The charts below outline Trump’s
selected Cabinet and administration nominees for his second term.
TRUMP CABINET (*indicates no
Senate confirmation required) Name Current/Former Position
Vice President* JD Vance Junior senator from Ohio
Secretary of State Marco Rubio Senior senator from Florida
Secretary of the Treasury Scott Bessent Founder of Key Square Group
Secretary of Defense Pete Hegseth FOX News Host and Army Veteran
Attorney General Pam Bondi Former Attorney General of Florida
Secretary of the Interior Doug Burgum Governor of North Dakota
Secretary of Agriculture Brooke Rollins Former Director of the Domestic
Policy Council
Secretary of Commerce Howard Lutnick Chairman & CEO of Cantor
Fitzgerald
Secretary of Labor Lori Chavez-
DeRemer
Representative from Oregon (lost
reelection in 2024)
Secretary of Health and Human
Services
Robert F. Kennedy
Jr.
Presidential candidate in the 2024
cycle
Secretary of Housing and Urban
Development Scott Turner Former Texas State Representative
and NFL Player
Secretary of Transportation Sean Duffy Former representative from
Wisconsin
Secretary of Energy Chris Wright CEO of Liberty Energy
Secretary of Education Linda McMahon Former Small Business
Administrator
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Secretary of Veterans Affairs Doug Collins Former representative from Georgia
Secretary of Homeland Security Kristi Noem Governor of South Dakota
CABINET-LEVEL NOMINEES
(not in the line of succession)
Director of National Intelligence Tulsi Gabbard Former representative from Hawaii
Ambassador to the UN Elise Stefanik Representative from New York
Director of the Office of
Management and Budget Russell Vought Former Director of the Office of
Management and Budget
Administrator of the
Environmental Protection Agency Lee Zeldin Former representative from New
York
Chair of the Council of Economic
Advisors
U.S. Trade Representative
President-elect Trump made the following non-Cabinet nominations and White House:
TRUMP ADMIN Appointee Current/Former position
Border Czar* Tom Homan
Former acting director of U.S.
Immigration and Customs
Enforcement
Department of Government
Efficiency (new office)*
Elon Musk &
Vivek
Ramaswamy
Businessmen/entrepreneurs
White House Chief of Staff* Susie Wiles Co-chair of the Trump 2024
campaign
White House Deputy Chief of Staff
for Policy & Homeland Security
Advisor*
Stephen Miller Former Senior Advisor to the
President
White House Deputy Chief of Staff* Dan Scavino Former Deputy Chief of Staff
119th Congress Election Results
The Republican Party will control the House and Senate in the 119th Congress. In the Senate,
Republicans have a 53-47 majority. In the House, Republicans maintain a 219-213 majority with
three uncalled races:
CA-13: Incumbent Rep. John Duarte (R) is leading challenger Adam Gray (D) by 204 votes
with 98% of ballots counted.
CA-45: Challenger Derek Tran (D) is leading incumbent Rep. Michele Steel (R) by 545 votes
with 99% of ballots counted.
IA-1: incumbent Rep. Mariannette Miller-Meeks (R) is leading challenger Christina
Bohannan (D) by 800 votes with 99% of ballots counted.
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118th Congress Lame Duck Session
Earlier this month, the House and Senate returned to Washington, D.C., for the first time since the
end of September. During their two weeks in Washington before heading home for the
Thanksgiving break, Members were focused on their respective leadership elections for the
upcoming Congress. Additionally, newly elected Members were in Washington for New Member
Orientation. Following the Thanksgiving recess, Members will be faced with a list of timely
priorities that will need to be addressed during the lame duck session including the following:
A path forward for the Fiscal Year (FY) 2025 appropriations bills as the current Continuing
Resolution expires on December 20th
A disaster relief supplemental appropriations package
National Defense Authorization Act
Water Resources Development Act of 2024
Farm Bill Extension
Congressional Leadership Elections
On November 13th, House and Senate Republicans held Leadership Elections for the 119th
Congress. In the Senate, Senator John Thune (R-SD) was elected over Senator John Cornyn (R-TX)
by a vote of 29-24 to succeed Minority Leader Mitch McConnell (R-KY), who is stepping down from
leadership as Majority Leader in the next Congress. Senator John Barrasso (R-WY) was elected as
Majority Whip. In the House, Speaker Mike Johnson (R-LA) and Majority Leader Steve Scalise (R-
LA) won reelection to their respective leadership roles on the House side. Speaker Johnson will
need to win a majority vote on the Floor of the House in January to formally be elected Speaker
again.
On November 18th, House Democrats held elections in which Minority Leader Hakeem Jeffries (D-
NY) won reelection to lead the House Democratic Caucus and Minority Whip Katherine Clark (D-
MA) won reelection. Senate Democrats have yet to hold leadership elections, but it is expected
that current Majority Leader Chuck Schumer (D-NY) and Majority Whip Dick Durban (D-IL) will be
reelected to lead Senate Democrats in the next Congress as Minority Leader and Minority Whip,
respectively.
President Biden Submits $100 Billion Disaster Relief Package to
Congress
President Biden sent Congress an emergency funding request for roughly $100 billion to help
with recovery after natural disasters, including the recent hurricanes Helene and Milton in the
Southeast, battered communities nationwide, and depleted key programs. The request includes:
$40 billion for the Federal Emergency Management Agency’s (FEMA) Disaster Relief Fund
$12 billion for the Department of Housing and Urban Development’s (HUD) Community
Development Fund
$24 billion for Department of Agriculture (USDA) programs
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$8 billion through the Department of Transportation (DOT)
$3 billion for State and Tribal Assistance Grants for water infrastructure
CONGRESSIONAL ACTIVITY
California Democrats Urge CARB to Reconsider In-Use Locomotive Regulation. California
Democratic Representatives John Garamendi, Salud Carbajal, Lou Correa, and Jim Costa sent a
letter to the California Air Resources Board (CARB) urging the agency to reconsider its current In-
Use Locomotive Regulation pending before EPA. The regulation would prohibit operating
locomotives in California that are 23 years or older unless the locomotive is zero emission. The
lawmakers highlight unintended operational consequences for short-line railroads that could
result in shippers seeking other means of transportation that may increase greenhouse gas and
air pollution.
San Diego Democratic Members Applaud Funding for Crossborder Wastewater Treatment in
Disaster Supplemental. Democratic Representatives Scott Peters, Juan Vargas, Sara Jacobs,
and Mike Levin sent a letter to President Biden thanking him for including $310 million in the
proposed disaster supplemental for upgrading the South Bay International Wastewater Treatment
Plant. The funding would support infrastructure upgrades to handle contaminated cross-border
sewage flows in the Tijuana River Valley by doubling the capacity of the South Bay facility.
Representatives Urge Congressional Leaders to Pass Landslide Preparedness Bill. A group of
House Democrats sent a letter to House and Senate leadership requesting final passage of the
National Landslide Preparedness Act Reauthorization Act (H.R. 7003) before the end of the 118th
Congress. The bill would reauthorize programs and funding to prevent landslide risks that expired
in September. The bill passed the Committee on Natural Resources in April and is awaiting
consideration by the full House.
Representatives Urge NIST to Develop Standards for Lifeline Infrastructure. A group of
Representatives led by Kevin Mullin (D-CA) sent a letter to the National Institute of Standards and
Technology (NIST) requesting that the agency develop standards for resilient lifeline infrastructure
in the wake of natural hazards and disasters. The letter urges NIST to develop standards allowing
federal, state, and local emergency responders to better coordinate and plan for lifeline service
loss.
FEDERAL FUNDING OPPORTUNITIES
Build America Bureau Releases RIA NOFO. The Build America Bureau released a $10 million
notice of funding opportunity (NOFO) for non-matching grants through the Regional
Infrastructure Accelerators (RIA) program. RIA supports technical resources, planning, and
project development to expedite regional transportation infrastructure through financial avenues
like public-private partnerships. Applications are due by January 9th.
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FEMA Releases $291 Million Assistance to Firefighters NOFO. FEMA released a $291 million
NOFO through the Assistance to Firefighters Grant program. The program provides funding to
support training personnel to recognized standards, equipping firefighters with compliant
personal protective equipment, retrofitting facilities, acquiring emergency response vehicles,
promoting workforce development, and supporting community resilience. Applications are due
by December 20th.
FTA Publishes Bus Safety and Accessibility Research Competitive Program NOFO. The
Federal Transit Administration (FTA) published a NOFO for the availability of $10 million through
the Bus Safety and Accessibility Research program. The program helps to fund projects to
research standard bus designs, safety innovations and systems, and bus compartments that
support these safety and accessibility goals. Applications are due by January 17th.
NOAA Accepting Community-Led Heat Monitoring Campaign Applications. NOAA is
accepting applications for the Center for Collaborative Heat Monitoring program. The program
funds support for the development of community-based heat data collection campaigns and
provides communities with technical assistance to develop those plans. Applications are due by
January 17th.
GRANT AWARD ANNOUNCEMENTS
COPS Office Awards $15 million through Safer Outcomes Program. The Department of
Justice’s Office of Community Oriented Policing Services (COPS) announced $15 million in grant
awards to 42 law enforcement agencies. This funding will support training on de-escalation and
crisis response for law enforcement officers, civil staff, and mental health professionals working
in partnership with local authorities.
DOT Announces SS4A Grant Awards. DOT announced $172 million to 257 projects through the
Safe Streets and Roads for All (SS4A) grant program. The program helps to fund projects in two
areas: (1) Planning and Demonstration Grants that help communities develop road safety action
plans and inform improvements along corridors with safety issues. They also provide funding to
implement “quick-build” and other temporary strategies to test out safety features such as
separated bicycle lanes or curb extensions at intersections and (2) Implementation Grants that
provide funding for communities to implement strategies and projects that will significantly
reduce or eliminate transportation-related fatalities and serious injuries.
FHWA Announces LCTM Grant Awards. The Federal Highway Administration (FHWA) awarded
$1.2 billion to 39 states through the Low Carbon Transportation Materials (LCTM). The program
provides funding for construction materials that have substantially lower levels of greenhouse gas
emissions.
Reclamation Announces $125 Million in Large-Scale Water Recycling Grants. Reclamation
announced $125 million for five projects through the Large-Scale Water Recycling Program. The
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program was created in the Bipartisan Infrastructure Law and funds larger-scale water recycling
and reuse projects.
Reclamation Announces $3.3 Million in WaterSMART Small-Scale Water Efficiency Grants.
Reclamation announced $3.3 million in WaterSMART Small-Scale Water Efficiency Projects
program grants to 36 projects in 10 states. The program funds water efficiency projects across
western states, such as installing flow measurement or automation systems, lining canals to
reduce seepage, and other water efficiency efforts.
FEDERAL AGENCY REGULATORY ACTIONS
Census Bureau Requests Comments on Proposed Race/Ethnicity Code. The Census Bureau
issued a notice requesting comments on its proposed race/ethnicity code list for use In the
American Community Survey and the 2030 Census. The agency aims to improve the code list from
the 2020 Census to ensure race and ethnicity data are accurately coded and tabulated during
future data collection efforts. Comments are due by February 18th.
FAA Publishes Meteorological Towers and Other Wind Energy Systems NPRM. The Federal
Aviation Administration (FAA) published a notice of proposed rulemaking (NPRM) that amends
requirements applicable to meteorological towers and permanent wind energy systems. The
proposed rule would require any person who owns (sponsors) any proposed, altered, or existing
meteorological tower to file a notice with the FAA if the highest point of the structure is at least 50
feet above ground level (AGL) up to and including 200 feet AGL at its site. The FAA also proposes
marking requirements for meteorological towers constructed or altered after the effective date of
a final rule if the structure's highest point is at least 50 feet AGL up to and including 200 feet AGL
at its site. Comments are due by January 17th.
FAA Publishes BasicMed Final Rule. FAA published a final rule that implements, without
interpretation, the provisions of sections 815 and 828 of the FAA Reauthorization Act of 2024 (“the
Act”). To conform the FAA's regulations to the self-enacting provisions in the Act, this final rule
amends certain regulations to: align aircraft conditions and limitations with the term “covered
aircraft” as defined in section 2307(j) of the FAA Extension, Safety, and Security Act of 2016 to
increase the number of allowable passengers from 5 to 6, increase the number of occupants from
6 to 7, and increase the maximum takeoff weight from 6,000 pounds to 12,500 pounds, while
excluding certain transport category rotorcraft. The rule is effective on November 18th.
FHWA Publishes Final Work Zone Safety and Mobility and Temporary Traffic Control Devices
Rule. FHWA published a final rule that amends its regulations that govern traffic safety and
mobility in highway and street work zones. The changes will facilitate consideration of the broader
safety and mobility impacts of work zones in a more coordinated and comprehensive manner
across project development stages. The rule is effective on December 2nd.
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FHWA Publishes Interstate System Access Final Rule. FHWA published a final rule that
amends FHWA regulations governing changes in access to the Dwight D. Eisenhower National
System of Interstate and Defense Highways (Interstate System). As a condition of funding for
Federal-aid highway projects, federal law prohibits state departments of transportation (state
DOT) from adding any point of access to or from the Interstate System without the approval of the
Secretary of Transportation. This final rule codifies and clarifies existing policies and practices
regarding state DOT requests for and FHWA approval of changes in access to the Interstate
System. This final rule is effective December 9th.
FHWA Publishes CMAQ Interim Guidance. FHWA published the Congestion Mitigation and Air
Quality (CMAQ) Program Interim Guidance. The Interim Guidance provides information and
guidance on eligibility, transfer, and other CMAQ Program requirements under the BIL, enacted
as the Infrastructure Investment and Jobs Act. The CMAQ Program requirements in BIL took effect
on October 1st, 2021, and apply to all funding obligated on or after that date, whether carryover or
new. Because the CMAQ Program requirements in the BIL are in effect and the Interim Guidance
contains information needed to plan CMAQ-funded projects and use CMAQ funds, the Interim
Guidance is effective on the date of publication of this notice in the Federal Register. The Interim
Guidance replaces the November 12th, 2013, Interim CMAQ Program Guidance under MAP-21 and
the July 2014 Revised Interim Guidance on CMAQ Operating Assistance under MAP-21. The
Interim Guidance is effective on November 6th and comments are due by January 6th.
FTA Extends Buy America Waiver for Vans and Minivans. FTA is unable to identify any
manufacturer of non-Americans with Disabilities Act (ADA)-accessible vans and minivans that
fully comply with Buy America and is therefore extending its partial, time-limited, general
nonavailability waiver from the requirements of Buy America for a period of five years, or upon
publication of a rescission notice if FTA determines that a fully Buy America-compliant vehicle
has become available, whichever occurs first. The waiver extension is applicable on November
18, 2024.
IRS Releases Final Direct Pay Regulations for Clean Energy Tax Credits. The Internal Revenue
Service (IRS) released the final regulations for direct pay clean energy tax incentives included in
the Inflation Reduction Act. These regulations allow eligible entities to access the full values of
clean energy incentives by providing clarity and flexibility for direct pay-eligible entities, including
co-owned projects. The regulations are effective January 19th.
Reclamation Releases Post-2026 Colorado River Alternatives. Reclamation released five
proposed alternatives for post-2026 operations for the Colorado River. Current agreements
regarding operations expire at the end of 2026, and Reclamation is expected to release a draft EIS
in early 2025 analyzing the alternatives to ensure the long-term stability of the Colorado River
Basin.
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FEDERAL AGENCY ANNOUNCEMENTS AND PERSONNEL CHANGES
DOE Releases Pathways to Commercial Liftoff Report for Sustainable Aviation Fuel. DOE
released a report titled Pathways to Commercial Liftoff: Sustainable Aviation Fuel. The report
analyzes the technical and commercial readiness of several SAF production pathways and
highlights tangible, actionable steps that both the public and private sector can take to make the
United States a global leader in SAF production as soon as 2030.
DOT and NOAA Sign MOU on Climate Smart Transportation. DOT and the National Oceanic and
Atmospheric Administration (NOAA) signed a Memorandum of Understanding (MOU) to
collaborate on providing climate and environmental information, tools, and technical assistance
to the transportation sector, aiming to enhance climate resilience and reduce greenhouse gas
emissions in transportation infrastructure planning and operations.
EPA Releases Third Annual PFAS Strategic Roadmap Progress Report. EPA released a report
titled “EPA’s PFAS Strategic Roadmap: Third Annual Progress Report” that details efforts to
address the health and environmental risks related to per- and polyfluoroalkyl (PFAS) substances.
The report contains updates on PFAS in drinking water and natural waterways, cleaning up PFAS
contamination, chemical safety, research and development, and enforcement and compliance.
EPA Releases National Plastic Pollution Prevention Strategy. EPA released the “National
Strategy to Prevent Plastic Pollution,” detailing steps for government agencies, businesses,
non-profits, and communities to reduce plastic pollution. The report includes advice on reducing
the production and consumption of single-use plastic products, studying the environmental and
health impacts of single-use plastics, and collaboration between producers and consumers.
EPA Releases Interim Cumulative Impacts Framework. EPA released a draft of the Interim
Framework for Advancing Consideration of Cumulative Impacts for agency programs and
regional offices to consider the overall impacts of EPA’s work. Cumulative impacts are defined by
the totality of exposures to chemical and non-chemical stressors, such as air and water pollution,
and their effect on human health, including cultural, subsistence practices, socioeconomics, and
other health considerations. Comments on the draft are due by February 19th.
FAA Publishes Random Drug and Alcohol Testing Percentage Rates for CY 2025. FAA
published the minimum random drug and alcohol testing rates for calendar year (CY) 2025. The
rate for random testing for safety-sensitive employees will be 25% for drug testing and 10% for
alcohol testing.
FTA and CMS Publish Medicaid Transportation Coordination Fact Sheet. FTA and the Centers
for Medicare & Medicaid Services (CMS) published the Medicaid Transportation Coordination
Fact Sheet that encourages partnerships between state departments of transportation and state
Medicaid agencies to improve the accessibility and efficiency of non-emergency medical
transportation (NEMT) for low-income individuals, people with disabilities, and older adults.
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FHWA Launches FLMA Planning Coordination Webpage. FHWA released the Federal Land
Management Agency (FLMA) Planning Coordination webpage, which provides technical support
information on transportation planning on federal and tribal lands.
GAO Publishes Report on DOT’s Implementation of Recommendations to Improve
Documentation That Would Enhance Mega Program. The Government Accountability Office
(GAO) published a report titled Transportation Grants: Implementation of Recommendations
to Improve Documentation Would Enhance Program for Large, Complex Projects. The report
found that DOT’s selection process for the National Infrastructure Project Assistance (Mega)
program generally adhered to its guidelines and federal regulations. However, DOT did not fully
document the rationale for key decisions, such as designating certain projects as "exemplary,"
which are highly recommended applications. The report recommends that DOT implement prior
suggestions to enhance documentation of key decisions and clearly define criteria for exemplary
projects to improve transparency in the Mega program.
Treasury SLFRF Obligation 2024 Deadline. The Department of the Treasury deadline for cities to
obligate and report on State and Local Fiscal Recovery Funds (SLFRF) is December 31st. Treasury
released an updated SLFRF Compliance and Reporting Guidance document in October that
provides more information on Treasury’s obligation and reporting requirements.
## ## ##
Dec. 10, 2024 Item #2 Page 10 of 38
2024 END OF YEAR REPORT
CITY OF CARLSBAD
Prepared by:
Dane Hutchings, Founder + CEO
(916) 974-9270
dhutchings@publicpolicygroup.com
Exhibit 2
Dec. 10, 2024 Item #2 Page 11 of 38
•cPPG
CALIFORNIA PUBLIC POLICY GROUP
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM 2
TABLE OF CONTENTS
TRANSMITTAL LETTER .............................................................................................. 3
CPPG/CITY OF CARLSBAD 2024 LEGISLATIVE HIGHLIGHTS ........................................ 5
YEAR IN REVIEW ...................................................................................................... 6
KEY PERFORMANCE INDICATORS ............................................................................ 8
HIGHLIGHTS: LEGISLATIVE ADVOCACY SUCCESS .......................................... 8
SUMMARY OF ADVOCACY DELIVERABLES .................................................... 14
LOOKING AHEAD ................................................................................................... 16
LEGISLATURE COMPOSITION ...................................................................... 16
CONTINUED BUDGET DEFICIT ..................................................................... 17
SPECIAL LEGISLATIVE SESSION AND THE “TRUMP RESISTANCE” .................. 17
ANTICIPATED POLICY TRENDS—REGULAR LEGISLATIVE SESSION ................. 18
GRANT FUNDING ........................................................................................ 20
LOCAL AGENCY GRANT SEEKING IN THE SECOND TRUMP
PRESIDENCY—WHAT TO EXPECT................................................................. 21
Dec. 10, 2024 Item #2 Page 12 of 38
[i(CPPG
CALIFORNIA PUBLIC POLICY GROUP
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM 3
TRANSMITTAL LETTER
November 26, 2024
To: Scott Chadwick
City Manager
City of Carlsbad
From: Dane Hutchings
Founder + CEO
California Public Policy Group
Dear Mr. Chadwick:
On behalf of California Public Policy Group, I want to thank you, your team, and the City of Carlsbad
City Council for engaging our firm for state legislative advocacy services. This End of Year Report
provides an overview of the services our firm delivered to the City of Carlsbad during the 2024
legislative year, along with insights and potential next steps in preparation for the 2025 legislative
and grant funding year.
2024 also marked an exciting metamorphosis for our firm. After five years as a thriving division of
Renne Public Law Group, we mutually agreed to separate. Renne Public Policy Group is now
California Public Policy Group, Inc. (CPPG), an independent corporation with a new tax ID number.
The transition is complete, and we are pleased to serve you in our new capacity, which offers you
some distinct advantages. Our operations are now streamlined, enhancing our efficiency and
effectiveness. This boosts our ability to pivot faster and stay nimble. We are better positioned to
proactively implement programs and operations that support your needs and to anticipate future
scenarios. Our independent status allows us to maintain our strategic partnership and to remain
closely aligned with Renne Public Law Group, which provides a continued benefit to you.
While this represents a big change for our firm, the most important things haven’t changed. We have
the same team, professional approach, and philosophy. Our key lobbyists—Founder and CEO Dane
Hutchings and Managing Director Sharon Gonsalves—continue to lead our advocacy efforts on your
behalf. Director of Grant Services Jake Whitaker is still at the helm of our grant writing and funding
research work and staffing. Our strategic consultants—Dan Carrigg, Bruce Rudd, and Jude
Lemons—remain on board to provide their unique expertise, supporting our work as we promote
your interests and advance your agenda. Our team’s passion for local government and our
commitment to excellence and transparency are unchanged.
Over the past year, CPPG has worked with your staff in taking an aggressive approach to raise your
City’s profile and to build its relationships with the Administration, state agencies, and members of
the Legislature. 2024 was a productive year, and we made significant progress in continuing to build
your City’s presence in the policy arena and in educating decision makers about your City’s top
priorities.
Dec. 10, 2024 Item #2 Page 13 of 38
[i(CPPG
CALIFORNIA PUBLIC POLICY GROUP
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM 4
Throughout 2024, CPPG’s ongoing collaborative work with your staff provided clarity on important
issues. We supported your strategic goals by delivering vital information on Administration actions,
supplying detailed policy and political analyses on dozens of items of interest to your City, generating
memos, and more.
CPPG also engaged on state legislative measures in the areas of housing, land use, public safety,
climate, homelessness, and governmental operations and employment issues with specific
applicability to your City. This resulted in over 510 individual “touchpoints,” either with the City or on
its behalf. In addition to supporting these efforts, our deliverables included drafting memos,
providing legislative analysis, advising City staff, responding to inquiries in a timely manner, meeting
with state lawmakers and/or their staff, drafting state and federal position letters, following up with
stakeholders, and building alliances and coalitions.
In 2024, CPPG monitored and/or engaged on over 1,850 pieces of state legislation. In total, the City
of Carlsbad took official positions on 37 pieces of state legislation in 2024. We are proud that our
team was able to deliver favorable outcomes, most notably the City’s sponsored bills, AB 2715 and
AB 2234 both authored by Assemblymember Boerner. AB 2715 allows for matters pertaining to
cybersecurity to be permitted to be discussed in closed session. AB 2234 continues the City’s efforts
to raise awareness and safety measures for the use of E-bikes. The City has now sponsored five bills
in the past three years and seen them signed into law.
We very much appreciate the opportunity to represent your City, and we are grateful that the City
values our work and will continue its relationship with CPPG in 2025. While our team has achieved
victories and significant progress on behalf of your City in 2024, more work remains to be done in
support of your City’s interests, and we take this responsibility to heart. Thank you once again for the
opportunity to serve the City of Carlsbad and for your support. We look forward to continuing our
partnership and building on the success we have achieved.
Sincerely,
Dane Hutchings Sharon Gonsalves
Founder + CEO Managing Director
California Public Policy Group California Public Policy Group
CC: Jason Haber, Intergovernmental Affairs Director, City of Carlsbad
Cindie McMahon, City Attorney, City of Carlsbad
Dec. 10, 2024 Item #2 Page 14 of 38
lkCPPG
CALIFORNIA PUBLIC POLICY GROUP
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM 5
CPPG/CITY OF CARLSBAD 2024 LEGISLATIVE
HIGHLIGHTS
PIECES OF LEGISLATION TRACKED ON BEHALF OF THE
CITY
Legislation tracked and assessed for impacts on the City to its
operations, its local discretion and authority, and its legal
decision making.
1,850+
SUCCESS RATE ON LEGISLATIVE ENGAGEMENT—
MAKING THE CITY’S VOICE HEARD
CPPG achieved the desired outcome or secured critical
amendments to dramatically reduce adverse impacts to the
City. (21 desired outcomes out of 37 total.)
21/37
COMBINED DELIVERABLES AND TOUCHPOINTS
PROVIDED TO AND ON BEHALF OF THE CITY
Legislative updates, position letters, policy and political
analyses, and meetings with the City and/or with the
Administration or the Legislature on behalf of the City.
*From November 1, 2023 to October 31, 2024
510+
Dec. 10, 2024 Item #2 Page 15 of 38
~CPPG
CALIFORNIA PUBLIC POLICY GROUP
1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM 6
YEAR IN REVIEW
The Legislature Returns: The 2024 legislative session of the California State Legislature
commenced in early January as both houses reconvened for the second year of the 2023-24 session.
Legislators quickly set to work, prioritizing the remaining bills from the previous year. In late January,
Senator Mike McGuire (D-Geyserville) was officially elected as Senate President pro Tempore and
sworn into the role on February 5. On February 8, he announced the new Senate Democratic
leadership team for the upcoming legislative year. Senator Lena A. Gonzalez (D-Long Beach) was
appointed Majority Leader, with Senators Angelique V. Ashby (D-Sacramento) and Aisha Wahab (D-
Hayward) taking on the roles of Assistant Majority Leaders. Additional changes were made to the
leadership team, including committee chairs and membership. Senator McGuire also announced
the splitting of the Senate Governance and Finance Committee into two new committees, leading to
the establishment of the Senate Local Government and Senate Revenue and Taxation committees.
The Governor’s Budget: In early January, Governor Gavin Newsom revealed his proposed budget for
fiscal year 2024-25 during a press conference. The proposal projected total state spending at $291.5
billion, with a deficit of $37.9 billion. Governor Newsom attributed the budget deficit to a return to
the “normalization of state revenues following the massive surpluses in 2021 and 2022.” Factors
contributing to the deficit include the state’s reliance on the top one percent of taxpayers for half of
all income tax revenue, stock market declines in 2022, and delays in income tax collection in 2023.
The May revision to the January proposal indicated a slight reduction in total spending to $288.1
billion, with the projected deficit revised downward to $27.6 billion. The lower projected deficit
resulted from Governor Newsom signing AB 106 (Gabriel) [Chapter 9, Statutes of 2024], an early
action budget package. Governor Newsom stated that approximately half of the deficit would be
addressed through budget cuts, with the remainder managed through reserves, delays, fund shifts,
borrowing, and new efficiencies.
In mid-June, the Legislature met its constitutional deadline to advance a balanced state budget for
fiscal year 2024-25, passing AB 107 (Gabriel) [Chapter 22, Statutes of 2024]. A few days later,
Governor Newsom announced an agreement on the budget, which included two budget bills and 17
budget trailer bills. The final budget reflected total spending of $297.8 billion and closed a projected
deficit of $46.8 billion. The fiscal year 2024-25 budget priorities for the Governor and the Legislature
aligned with previous years, focusing on funding for homelessness, public safety, climate change,
healthcare, education, and housing.
National Narratives Drove Legislative Priorities: As the 2024 presidential election approached,
California lawmakers turned their attention to policy areas influenced by state and national polling
data. Major themes included addressing the rise of retail theft, drug and property related offenses,
homelessness, housing production, and climate change. In late February, Senator McGuire,
alongside legislative, law enforcement, and mental health leaders, held a press conference to unveil
a bipartisan package of priority legislation aimed at addressing public safety and mental health. In
April, Assembly Speaker Robert Rivas (D-Hollister) announced additional legislation in the package.
This legislative package featured various proposals, ranging from increased access to addiction and
mental health treatment, to enhancing tools for law enforcement. The legislative package was
introduced as an alternative to the Homelessness, Drug Addiction, and Theft Reduction Act, a
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proposed ballot initiative seeking to repeal parts of Proposition 47 and increase sentences for certain
drug and theft crimes. However, the slate of bills was enacted and the Theft Reduction Act appeared
on the November ballot as Proposition 36.
More Housing Laws Aimed at Targeting Local Agencies: After abandoning plans for a $10 billion
affordable housing bond and reducing housing funding in the budget, the Legislature’s 2024 housing
package continued the narrative that local governments are the primary barrier to housing
production. A key theme this year focused on bills designed to increase pressure on local agencies
to secure approval for housing elements from the Department of Housing and Community
Development. These bills overlooked the established legal processes that ensure neutral judicial
dispute resolution regarding housing element compliance. Instead, they introduced legal
presumptions, tight deadlines (without committed funding for compliance assistance), and various
vulnerabilities. In essence, the approach offered more sticks and no carrots, even for communities
recognized with the state’s esteemed “Prohousing Designation”.
Democrats Flexing Supermajority: Democrats leveraged their bicameral supermajority to advance
ACA 10 (Aguiar-Curry) [Chapter 134, Statutes of 2024]. This resolution instructed the Secretary of
State to amend ACA 1 (Aguiar-Curry) [Chapter 173, Statutes of 2023], eliminating all sections that
authorized the imposition of a sales and use tax and a parcel tax with a 55 percent vote. Additionally,
ACA 10 revised the definitions of “affordable housing” and “public infrastructure” in ACA 1.
In early July, following more than five years of debate and discussion, the Legislature reached an
agreement on a climate bond. Senator McGuire announced in a press release that SB 867 (Allen)
[Chapter 83, Statutes of 2024] would be the vehicle for the bond measure, which sought voter
approval for funding initiatives related to safe drinking water, drought management, flooding,
wildfires, forest resilience, sea level rise, extreme heat, park creation, and outdoor access. The
compromise amount for the bond was $10 billion, falling short of previous proposals that sought
nearly $16 billion in funding.
California Supreme Court Sidelines CBRT: In late June, it was announced that the California
Supreme Court had removed the California Business Roundtable tax measure from the November
2024 ballot. This measure would have required a two-thirds vote by the Legislature for new state
taxes and a two-thirds vote by voters for new local taxes. The court’s decision marked a significant
victory for the state and local governments.
By the evening of August 31, the Legislature had advanced a total of 1,206 bills to the Governor for
his consideration in 2024. By September 30, the Governor had signed 1,017 bills into law and had
vetoed 189, resulting in a signing ratio of approximately 85 percent to 15 percent. This ratio aligns
with the average since Governor Newsom took office. The Legislature will officially adjourn the 2023-
24 legislative session on November 30 and will reconvene for the 2025-26 legislative session during
a one-day Organizational Session on December 2, returning full-time for the new two-year cycle on
January 6, 2025.
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KEY PERFORMANCE INDICATORS
Our legislative advocacy for your City entails the CPPG team working with individual lawmakers, both
inside and outside the City’s legislative district, committee staff, the Governor’s Administration, and
regulatory officials to support the City’s policy goals. This collaborative strategy is essential not only
to propel the City’s policy goals forward, but also to mitigate potential legal, operational, or fiscal
challenges posed by state legislation.
Effective advocacy hinges on raising awareness and disseminating critical information regarding
specific issues of interest. Empowering your City Council, staff, and advocacy team is paramount in
driving your legislative agenda. In Sacramento, our direct advocacy efforts vary from working with
legislative committee members and lawmakers on refining bill language and providing technical
amendments, to mobilizing robust coalitions aligned with the City’s objectives. This entails
educating legislators, rallying supporters, engaging with the media, and tirelessly pursuing
partnerships while maintaining a sharp, focused approach.
Over time, a sustained legislative advocacy effort helps your City to develop strong alliances and
enduring relationships with your allies. Working with legislators to familiarize them with your
concerns often results in lawmakers—even those outside your legislative district—becoming
champions for your specific issues. Establishing personal connections with legislators enhances
your City’s credibility, allowing for significant influence in the legislative process. While sustained
advocacy does not guarantee success on every front, a lack of engagement will lead to state policies
that undermine local decision making and introduce new financial, legal, or operational hurdles.
The following narrative succinctly highlights our achievements and key performance indicators
during the 2024 legislative session, showcasing how our efforts have advanced your interests or have
considerably reduced impacts on your agency.
Highlights: Legislative Advocacy Success
✓ AB 2715 (Boerner) Ralph M. Brown Act: closed sessions (City of Carlsbad, Sponsor)
As part of CPPG’s annual review of the legislative platform, we meet with each City department to
address potential legislative proposals that are brought to the Legislative Subcommittee and City
Council for consideration. This year the City of Carlsbad sponsored AB 2715 by Assemblymember
Tasha Boerner (D-Encinitas), which allows for a public agency to discuss matters related to
cybersecurity under closed session.
Cyberattacks on a public entity’s computer infrastructure are on the rise. Reports suggest that
cyberattacks on the public sector rose 40 percent in 2023. These attacks have real consequences
for public entities. Ransomware disrupts City services and often results in personal information
leaked to the Internet.
Not only does a cyberattack require a public entity to seek legal expertise about mitigation,
notification, and labor relations, but the leak often results in litigation. Public entities have legal
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immunities and particular arguments, unavailable to private businesses, to combat class-action
lawsuits.
As the sponsor of the bill, it is the responsibility of CPPG and the City to work closely with
Assemblymember Boerner and her staff to get the bill through the legislative process, including
drafting the bill, enlisting organizations to support, addressing opposition, considering
amendments, and meeting with committee consultants. As the sponsor, CPPG worked with staff to
draft talking points for the City Attorney, who served as the bill’s primary lead witness in support of
the bill.
AB 2715 was signed by the Governor on September 14, 2024 (Chapter 243, Statutes of 2024).
✓ AB 2234 (Boerner) Vehicles: Electric Bicycles (City of Carlsbad, Sponsor)
In 2022, the City of Carlsbad declared a local state of emergency to address the rise in collisions
involving e-bikes. The primary objective has been to focus on education, engineering and
enforcement. In addition to local efforts, CPPG has worked closely with City staff and
Assemblymember Boerner to address safety through statewide legislation.
The City Council approved sponsoring AB 2234, authored by Assemblymember Boerner, to require
e-bike riders age 12 and older without a valid driver’s license to take an online e-bike safety training
course and pass a written test to prove they understand traffic safety rules. Those without a driver’s
license must have a state-issued identification card to operate an e-bike. The bill would also have
prohibited children under the age of 12 from operating an e-bike of any class.
CPPG worked closely with the author’s office to provide testimony and address concerns raised by
the Assembly Transportation Committee that the bill may be premature. In recent years there have
been a number of bills pertaining to e-bikes, including SB 381 (Min), (Chapter 869, Statutes of 2023)
which requires the Mineta Transportation Institute to conduct a study on the safety of e-bicycles due
to the Legislature by January 1, 2026. As a compromise, the AB 2234 was amended to authorize a
pilot program within San Diego County allowing jurisdictions to adopt an ordinance to prohibit a
person under the age of 12 from operating a class 1 or 2 electric bicycle.
AB 2234 was signed by the Governor on September 28, 2024 (Chapter 823, Statutes of 2024).
✓ AB 2560 (Alvarez) Density Bonus Law: California Coastal Act of 1976 (City of Carlsbad,
Oppose)
AB 2560, introduced by Assemblymember David Alvarez (D-San Diego), addresses California’s
coastal housing shortage by amending the state’s Density Bonus Law to apply within the Coastal
Zone. This law is intended to incentivize developers to include affordable housing by permitting
increased housing density. However, this provision has not applied within the Coastal Zone, which
includes some of California’s most expensive real estate. AB 2560 aimed to change this by allowing
density bonuses in coastal areas, requiring them to contribute to affordable housing just like other
areas of the state.
Supporters argue that this bill balances the Coastal Commission’s mission to protect environmental
resources while addressing the housing needs in coastal regions, many of which rank among the
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least affordable in the nation. Groups like Circulate San Diego, SPUR, and the Bay Area Council
supported the bill, emphasizing that affordable housing should not be excluded from coastal
regions. This was a unique bill in that CPPG and local government found an ally with environmental
groups who had expressed concern about potential strain on coastal ecosystems.
CPPG heavily lobbied the members of the Senate Natural Resources and Water Committee, who
analyze how legislation will adversely impact natural environments. The Committee substantially
amended the bill to address the concerns of the environmental organizations but, adversely to the
authors intent, also added additional protections to the California Coastal Act, making it more
difficult to build additional housing.
On August 15, the author ultimately chose to pull his bill, as the amendments undid the
purpose of the bill, halting its progress in 2024.
✓AB 2257 (Wilson) Local government: property-related water and sewer fees and
assessments: remedies (City of Carlsbad, Support)
AB 2557 builds on Proposition 218’s procedural requirements by establishing a clear mechanism for
customers to voice questions, concerns, comments, and criticisms regarding proposed rate
structures. While a transparent public process is essential, it is crucial to implement a requirement
that ratepayers submit a timely written objection to any new or amended property-related fee or
charge, or special assessment during the ratemaking process. This requirement serves as a
prerequisite for pursuing litigation after the approval of the new rates or assessments.
To address these issues, CPPG collaborated closely with the author’s office and a diverse coalition
of local agency stakeholders, navigating six rounds of amendments to address opposition concerns
while preserving the measure’s primary intent. Ultimately, this approach seeks to mitigate the
financial uncertainty and risks to government services that arise from ratepayers pursuing costly and
frivolous litigation after rate adoption.
As a result of our efforts, the Governor signed AB 2257 into law on September 25, 2024
(Chapter 561, Statutes of 2024).
✓Public Safety Bill Package: AB 1779 (Irwin), AB 1802 (Jones-Sawyer), AB 2943 (Zbur), SB 905
(Wiener)
In the fall of 2023, it was clear that the Assembly would prioritize legislation to address public safety
concerns specifically those related to smash and grab retail theft incidents. The first step was
forming the new Select Committee on Retail Theft, comprised of bipartisan members from across
the state, including from areas most impacted by retail theft. The purpose of the committee was to
engage impacted stakeholders, including large retailers, small businesses, criminal justice reform
advocates, law enforcement, and representatives of workers and the public to identify policy
solutions to this ongoing crisis. When the Assembly introduced their public safety legislative
package, the Senate followed suit and did the same. The overall package cracks down on the theft
and sale of stolen items, creates stricter penalties for individuals involved in retail and property theft,
mandates sentencing enhancements for large-scale operations, and creates new crimes —
imposing enhanced felony charges and extended prison sentences.
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The passage of the bills was almost put to a halt when Governor Newsom and Democratic
lawmakers’ actions led to a political fight over what is now known as Proposition 36. Stating that the
ballot measure was not necessary, they amended the public safety legislative package with
controversial amendments that added an urgency clause but also an inoperability clause, which
states that if the measure was approved the bills would effectively be repealed. The Administration
went as far as attempting to rush through an alternative ballot measure to compete with Proposition
36, which was overwhelmingly approved by over 70% of voters.
CPPG worked to strengthen the public outcry on a serious issue that was of the utmost importance
to a majority of Californians and urge the City’s delegation to oppose the amendments. The press
questioned the motives in a press conference, Republicans claimed gamesmanship, and fellow
democrats removed their support of the package, even some removing their name as an author.
Ultimately the controversial amendments were removed and the legislative package
passed with bipartisan support.
✓AB 1779 (Irwin) Theft: jurisdiction (City of Carlsbad, Support)
AB 1779 permits the consolidation of specifled theft charges, as well as all associated offenses,
occurring in different counties into a single trial if the district attorneys in all involved jurisdictions
agree. This is a bill that the author has attempted for multiple years and the City was pleased to
support this common sense measure.
AB 1779 was signed by the Governor on August 16, 2024 (Chapter 165, Statutes of 2024).
✓AB 1802 (Jones-Sawyer) Crimes: organized theft (City of Carlsbad, Support)
AB 1802 permanently removes the sunset clause on California’s Organized Retail Theft statute,
which was initially established in 2018. This change makes permanent the provisions that allow law
enforcement and prosecutors to tackle organized retail crime with measures such as the California
Highway Patrol’s Property Crimes Task Force.
AB 1802 was signed by the Governor on August 16, 2024 (Chapter 166, Statutes of 2024).
✓AB 2943 (Zbur) Crimes: shoplifting (City of Carlsbad, Support)
The California Retail Theft Reduction Act was the most substantial bill of the overall package,
creating speciflc penalties for serial retail theft, allowing the aggregation of theft incidents across
different locations and victims to reach a grand theft charge, if speciflc criteria are met.
AB 2943 was signed by the Governor on August 16, 2024 (Chapter 168, Statutes of 2024).
✓SB 905 (Wiener) Crimes: theft from a vehicle (City of Carlsbad, Support)
SB 905 clarifled what is known as the locked door loophole which stated that a broken car was not
sufficient to convict a suspect of auto burglary unless prosecutors can prove the door was locked at
the time. SB 905 eliminates the hurdle by making forcible entry sufficient to prove intent of auto
burglary.
SB 905 was signed by the Governor on August 16, 2024 (Chapter 170, Statutes of 2024).
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✓ Labor Relations Bill Package: AB 2557 (Ortega) and AB 2561 (McKinnor)
This year, there was a package of bills aimed at targeting public sector employers. Collectively, these
measures would all but eliminate contract service work for local agencies given the broad
applicability, elimination of administrative discretion, and new avenues for litigation. CPPG engaged
with the broader local government advocacy community—including the League of California Cities,
the California State Association of Counties, the Urban Counties of California, the Rural County
Representatives of California, the California Special Districts Association, and K-12 and higher
education organizations, among others—to create a robust opposition coalition to educate the
legislature on specific impacts to local agencies and work with authors and sponsors to remove the
impacts. It quickly became clear that the bill sponsors were unwilling to work with locals, and CPPG
worked to further broaden the coalition, to educate the City on the impacts of these measures, and
to ultimately seek to stop the measures from moving forward.
✓ AB 2557 (Ortega) Local agencies: contracts for special services and temporary help:
performance reports (City of Carlsbad, Oppose)
AB 2557 aimed to eliminate or signiflcantly reduce the ability of local entities to contract for services,
including with non-proflts and for many temporary or seasonal positions. Additionally, it expanded
deflnitions to encompass specialized services that are in high demand and often difficult to flll, such
as engineering.
Among other issues, the bill would have mandated that local agencies notify specified employee
organizations at least ten months prior to initiating a procurement process for contracting special
services currently or previously provided by a member of those organizations. One of the most
troubling provisions would have placed a designated labor representative on par with elected
officials in contractual decision-making processes. This would be done by granting the designated
labor representative the ability to declare a current service contract null and void if they believed the
contract service worker was out of compliance with the law. Notably, the bill did not include any
exemptions for emergency events. Furthermore, it proposed requirements that would have
subjected private employee data to the California Public Records Act, potentially deterring effective
partnerships with the private sector.
In response to these concerns, CPPG provided a detailed analysis to the City of Carlsbad on this
measure, and we additionally provided our analysis to the League of California Cities who used it as
the basis for its Action Alert to drive more individual agencies to oppose the bill. We continued to
work closely with local partners, City staff, and coalition advocates throughout the legislative
process.
As a direct result of our efforts, and a coalition of stakeholders, AB 2557 was held on the
Senate Appropriations Suspense File, halting its progress in 2024.
❖ AB 2561 (McKinnor) Local public employees: vacant positions (City of Carlsbad, Oppose)
In its introduced form, AB 2561 would have required local agencies with bargaining unit vacancy rates
exceeding 10% for more than 180 days (approximately 6 months) to produce, implement, and publish
a plan to reduce their vacancy rates to 0% within the subsequent 180 days. The bill also required the
public agency to present this plan during a public hearing—for every violation in every bargaining
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unit—to the governing legislative body and to publish the plan on its website for public review for at
least one year. CPPG worked diligently in tandem with local partners, City staff, and coalition
advocates to meet with the author’s office, legislators, bill sponsors, and committee staff to seek
amendments to reduce the cost, timelines, and impacts of the bill. CPPG also met with legislative
leadership and ultimately the Governor’s Office to communicate the signiflcant concerns with
implementation.
As a direct result of our efforts, and a coalition of stakeholders, this bill was substantially
amended prior to making its way to the Governor to increase the vacancy threshold to 20%
and instead require just one annual public hearing on the status of vacancies per fiscal year.
These amendments were vetted by CPPG as part of the local government working group and
brokered by representatives of the local government coalition. While we continued to
advocate for a veto, the impact of the bill was significantly lessened through the negotiated
language. This bill was signed by the Governor on September 22, 2024 (Chapter 409,
Statutes of 2024).
❖ Impact Fee Bills: AB 2729 (Patterson) and SB 937 (Wiener)
This year, there was a concerted effort from housing advocates and some legislators to look to local
development impact fees as a source of cost control for housing development. These proposals
stopped short of eliminating a local agency’s ability to collect impact fees, but across the board, the
proposals shifted fiscal risk from for-profit developers to taxpayer-funded local governments. CPPG
quickly mobilized to form an opposition coalition, enlisting the support of various local government
associations, including the League of California Cities, the California State Association of Counties,
and the California Special Districts Association. This coalition sought to educate the Legislature on
the necessity and application of impact fees while working with the authors and sponsors to address
and remove any fiscal impacts associated with the bills.
❖ AB 2729 (Patterson) Development projects: permits and other entitlements (City of
Carlsbad, Oppose)
AB 2729 was amended in June to limit collection of impact fees and timing of collection, in similar
ways to SB 937 but more limiting. We mobilized our development impact fee coalition and
approached the author’s office and bill sponsors. The author and sponsors were unwilling to amend
the bill to address our concerns. In response our team worked with the Senate Appropriations
committee staff, Senate Local Government committee staff, and with the bill sponsors of SB 937
who felt this measure may confiict with their bill to eliminate the impact fee requirements from this
bill.
As a direct result of our advocacy efforts, and a coalition of stakeholders, AB 2729
provisions relating to timing of development impact fee collection and fiscal backstops was
stripped from the bill, leaving our negotiated language in SB 937 as the official deal. This bill
was signed by the Governor on September 27, 2024 (Chapter 737, Statutes of 2024).
❖ SB 937 (Wiener) Development projects: fees and charges (City of Carlsbad, Oppose)
In its original form, SB 937 raised signiflcant concerns. This measure applied to all development
projects and deferred the payment of local fees until the issuance of a certiflcate of occupancy. It
proposed consolidating utility and park fees into new sections of the Mitigation Fee Act. Furthermore,
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the bill aimed to eliminate the existing flscal guardrails that local jurisdictions depend on to secure
payments and ensure flscal accountability for ongoing projects within their communities. In
response, we collaborated with the Senate Local Government Committee, the author, and the
sponsors early in the year to secure signiflcant amendments that addressed key concerns. The bill
was amended to apply solely to affordable housing projects, marking a considerable shift from its
original intent. It allowed fees to be collected in batches as projects come online or when a
construction plan is flnalized and ready to commence. Additionally, the inappropriate commingling
of utility and park fees was eliminated, and, importantly, the existing flscal guardrails were retained.
Unfortunately, in the eleventh hour of the legislative session, the author introduced amendments
that further restricted the bill’s fiexibility regarding the collection of fees in advance of when a project
is ready. The revised bill now permits pre-collection only under speciflc circumstances for a limited
list of approved project types. Notably, utility capacity charges, parks, and stormwater drainage fees
are excluded from this list.
While we successfully rallied over a dozen votes in both houses against these last-minute
amendments—which were made without local input—the bill ultimately passed and was signed by
the Governor. However, the version signed into law is signiflcantly different from the initial proposal,
which posed a broad threat to local revenues.
As a direct result of our efforts, and a coalition of stakeholders, SB 937 was narrowed to only
apply to affordable housing projects and the most harmful proposals were removed from
the bill. SB 937 was signed by the Governor on September 19, 2024 (Chapter 290, Statutes
of 2024).
Summary of Advocacy Deliverables
At CPPG, our commitment extends far beyond traditional state legislative advocacy—it’s a year-
round partnership dedicated to serving our clients in every capacity possible. We tackle local
challenges that intersect with state interests, collaborate with City staff on innovative policies, and
deliver educational resources that enhance the Council’s and the staff’s understanding of critical
issues.
In advocating for your City, consistent communication with your staff and Council is a top priority for
our team. Keeping you well-informed supports our ability to effectively and successfully represent
your interests. To this end, we provide memos tailored to your City that include specific analyses of
legislation and regulatory matters, and updates on the legislative process, as needed. In 2024, CPPG
sent your team 36 memos with analyses or updates that illustrated City-specific impacts and/or
potential funding sources for the City. These memos kept you informed about specific legislation
and policies of potential interest to your City, especially those that may impact your City’s
operations, authority, or decision making.
We kept you updated on important developments in the Capitol through regularly scheduled Zoom
meetings. These weekly check-in meetings served as essential touchpoints, framing the continuous
and often daily dialogue we maintained with City staff through calls, texts, and emails. Additionally,
we held monthly presentations to the legislative subcommittee providing insights on legislative
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developments and highlighting the City’s active participation in the legislative process. This
consistent exchange of information ensured that everyone stayed aligned and informed as we
navigated the complexities of governance together.
Each month, CPPG supplied your City with a written legislative summary that highlighted key
developments in the Legislature and updates on legislation, along with announcements from the
Administration, all of which were tailored to your City’s specific interests. Additionally, our Monthly
Activity Reports meticulously documented every touchpoint CPPG had with and on behalf of the
City.
Meeting with the Department of Housing and Community Development: On April 22, CPPG
facilitated a meeting between the City and the Department of Housing and Community Development
to discuss challenges pertaining to the Windsor Pointe affordable housing project.
Modification of the Legislative Platform: The legislative platform is a set of guiding principles that
reflects the overarching ideals and vision of the Council. This document is critical to the overall
legislative advocacy program as it provides broad policy statements that enable the City and its
legislative advocacy firm to sift through the thousands of legislative proposals introduced each
legislative session to evaluate those measures that fall within the scope of the platform. Working in
conjunction with City staff, CPPG met with several department directors or team members and
received feedback from staff to make major changes to the City’s legislative platform.
Detailed Legislative Analysis: CPPG provided the City with several detailed analyses of pieces of
legislation. These analyses were critical in helping the City assess pending legislation’s potential
implications for operations, local discretion, and/or authority. Examples of analysis include but are
not limited to:
• Analysis of AB 205 (Committee on Budget) [Chapter 61, Statutes of 2022]
• Analysis of AB 1886 (Alvarez) [Chapter 267, Statutes of 2024]
• Analysis of AB 1893 (Wicks) [Chapter 268, Statutes of 2024]
• Analysis of AB 2023 (Quirk-Silva) [Chapter 269, Statutes of 2024]
• Analysis of AB 2489 (Ward)
• Analysis of AB 2557 (Ortega)
• Analysis of AB 2583 (Berman)
• Analysis of ACA 10 (Aguiar-Curry) [Chapter 134, Statutes of 2024]
• Analysis of SB 450 (Atkins) [Chapter 286, Statutes of 2024]
• Analysis of SB 1037 (Wiener) [Chapter 293, Statutes of 2024]
• Analysis of SB 1123 (Caballero) [Chapter 294, Statutes of 2024]
Updates on Legislative, Regulatory, and Fiscal Processes: CPPG provided timely informational
reports during critical stages of the budget and policy processes, and followed up with your staff to
answer any questions and close the loop. These updates provided your City with the necessary
situational awareness of statewide trends and of regulatory, fiscal, and legislative developments.
Examples of these reports include but are not limited to:
• California Business Roundtable initiative
• Carrier of last resort
• Ballot measures
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• Bill introduction deadline
• Budget updates: January proposal, May revision, and June final
• Climate bond
• Department of Housing and Community Development webinar
• House of origin deadline
• Housing legislation approved by the Governor
• Behavioral health bond
• State Auditor report on homelessness
• Appropriations Suspense File
LOOKING AHEAD
Legislature Composition
On December 2, 2024, the California State Legislature will convene its organizing session. Both
incumbents and newly elected members will take their oaths of office, marking the commencement
of the new 2025-26 Legislative session. This event signifies the first full turnover of the Legislature
since the enactment of Proposition 28 in 2012, which established new twelve-year term limits.
Consequently, the past four years have witnessed a considerable turnover among members.
With a total of 34 new members—24 in the Assembly and 10 in the Senate—the new composition for
the upcoming session presents both challenges and opportunities. This influx is expected to lead to
a surge in the number of measures introduced during the first year of the session. Members will move
swiftly to honor campaign promises and vie for recognition as thought leaders in various policy areas.
While the turnover inevitably leads to a dilution of institutional knowledge, it simultaneously opens
the door to exciting new prospects. Agencies and advocates will find themselves starting from
scratch—cultivating relationships and introducing their priorities to a new class of members ready
to influence the legislative landscape for years to come.
As we begin the new two-year legislative session, we expect to see shifts in committee chairs and
their compositions. Although formal announcements are still pending, updates regarding policy
committees are anticipated between December and early January. These changes are crucial, as
they directly impact which bills will navigate through committees and in what form.
Although committee chairs had less dictatorial power in 2024 compared to previous years, their
influence over committee votes remains substantial. Chairs are chosen based on their favorability
with chamber leadership and their ability to navigate legislation through the complex legislative
process. Both Assembly Speaker Robert Rivas and Senate President pro Tempore Mike McGuire are
expected to remain in their leadership roles moving into 2025.
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Continued Budget Deficit
As projected in the final budget released in June 2025, we will likely continue to see budgetary
problems and therefore additional actions to continue to pass a balanced budget. In September,
California saw significant tax collections, with personal income taxes and corporation taxes both
exceeding budget forecasts by 20% and 22%, respectively. Quarterly estimated personal income tax
payments were particularly strong, driven by a rise in domestic stock prices. For the fiscal year 2024-
25 so far, personal income tax is 11% ahead of forecasts, and corporation taxes are 42% ahead.
While this is welcomed news, it’s likely that this revenue boost will primarily benefit public schools
due to obligations under Proposition 98.
In early November, it became clear that personal and corporate income taxes for October exceeded
2024 state budget projections by $1.2 billion. For fiscal year 2024-25 to date, income taxes are $5.2
billion above projections, and 2023-24 General Fund revenue receipts were $3.2 billion above
projections. Most of the revenue overage is already allocated for school funding obligations, new
ballot measures, unmet savings efforts, and future unfunded costs. Additionally, potential federal
changes and the Governor’s proposed expansion of the film and television tax credit may impact the
state budget going forward.
The Legislature’s non-partisan Legislative Analyst’s Office (LAO) recently released a report
estimating that the fiscal year 2024-25 budget solved a $55 billion deficit, which is somewhat higher
than the $46.8 billion deficit the Administration had said it had closed. The LAO attributes this
difference to the treatment of baseline spending for schools and community colleges, and stated
that the key solutions for addressing the budget include reserve withdrawals, spending reductions,
revenue increases, and cost shifts. The Department of Finance is currently working with other
agencies to craft the Governor’s fiscal year 2025-26 budget, the proposal for which must be released
by January 10, 2025.
For local government, an extended period of state fiscal uncertainty has the potential of cutting both
ways. On the one hand, polices that aim to reduce local authority by mandating a new program have
the potential of being held due to the state’s budgetary concerns associated with new state
reimbursable mandates. On the other hand, the Legislature has a long history of raiding local
budgets to close that gap on its own budgetary challenge. Local governments need to remain vigilant
in aggressively fighting any attempts by the state to reduce local funding formulas, or other
longstanding tools that local agencies rely on to provide critical services.
Special Legislative Session and The “Trump Resistance”
Given the political dynamics and historical context of the Legislature, along with the Newsom
Administration’s response to the impending Trump Administration, we anticipate a variety of new
policy initiatives aimed at pushing back against policies that contradict progressive ideals. On
November 7, Governor Newsom announced in a press release the convening of an extraordinary
session, which is set to begin on December 2, 2024.
Typically, special session bills need to be in print for several days after the session starts, and
committee hearings may be expedited compared to those in a regular session. The stated intent of
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the special session is to “safeguard California values and fundamental rights in the face of an
incoming Trump Administration” and to “focus on bolstering California legal resources to protect
civil rights, reproductive freedom, climate action, and immigrant families.”
Importantly, by calling a special session, lawmakers are not bound by the usual “bill limit.” This
means that they can introduce several measures during the special session, provided they are
germane to its purpose, while still advancing their normal number of bills during the regular session.
Generally, standing legislative committees must be established for each new regular or
extraordinary session, and it is common for special sessions to run concurrently with regular
sessions. More broadly, major policy areas of focus for the special legislative session will likely
center around the following:
Climate Change and Environmental Policies: One of the most significant areas of focus will likely
be environmental policies. California has positioned itself as a leader in climate change action.
Under a Trump presidency, which has been characterized by skepticism toward climate science and
a rollback of environmental regulations, California’s leadership may further emphasize sustainable
practices and push for stronger state-level regulations to counteract federal policies. Expect
initiatives aimed at green energy, emissions reduction, and conservation efforts to gain traction.
Healthcare: With the Trump Administration’s efforts to repeal or modify the Affordable Care Act
(Obamacare), California’s government may react by reinforcing its commitment to healthcare
access. This may include expanding Medi-Cal, promoting state-level insurance solutions, or even
exploring universal healthcare initiatives, as the state’s population leans towards protecting and
expanding healthcare access.
Immigration: California has a large immigrant population and has long opposed hardline
immigration policies. The state government is likely to double down on policies that protect
undocumented immigrants, such as sanctuary laws, and may actively resist federal immigration
enforcement actions, which could manifest in legal challenges against the Trump Administration’s
policies.
Social Justice and Equality: Given California’s progressive stance on social issues, expect a focus
on policies promoting racial equity, LGBTQ+ rights, and economic justice. Any perceived federal
efforts that threaten these rights or reverse progress in these areas will likely provoke a legislative
response aimed at bolstering protections at the state level.
Economic Policies: Economic policies will also be crucial, particularly in addressing any federal tax
changes or economic initiatives that could adversely affect California’s diverse economy. The state
may aim to protect its own industries, such as tech and entertainment, from any disruptive federal
policies.
Anticipated Policy Trends—Regular Legislative Session
At the end of the 2023-24 legislative session, there were several policy areas with specific impacts
on local agencies that were left unfinished. With no anticipated change to legislative leadership, we
anticipate that emerging policy trends in the regular session will include the following:
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Housing: As has been the case during the past several years, housing and land use policy will
continue to be a major policy area of focus for the Legislature. During the 2023-2024 legislative
session we saw a total of 127 housing related measures advance to the Governor’s desk where he
signed 97% into law. However, many of the housing measures introduced in 2024 were aimed
primarily at increasing production of market rate developments and reducing local planning
discretion.
Despite these legislative efforts, California has yet to realize the production boom that Governor
Newsom hoped for when he unveiled his “Marshall Plan for Housing” in 2019, which was a mandate
to build 3.5 million new housing units by 2025. Local government planning and land use is often
easier for legislators to focus on rather than grappling with the realities of private markets,
addressing the lack of adequate energy supply, allocating major funding for subsidized housing, and
challenging developers, environmental organizations, and other powerful interest groups. During a
press event in September to announce the signing of several housing bills, the Governor, along with
several other elected officials, doubled down on the narrative that local agencies bear sole
responsibility for California’s housing crisis.
In the summer of 2024, the Assembly Select Committee on Permitting Reform released a “Purpose
Statement“ and held its first informational hearing on “Understanding the Permitting Impediments
to Addressing the Housing and Climate Crises”. In a statement on the hearing, the chair of the
Committee, Assemblymember Buffy Wicks (D-Oakland), stated that the Committee would take “an
inclusive, equitable and evidence-based approach to address systemic issues within the state’s
permitting processes.” Areas of focus include “permitting impacts on housing, climate resilience,
including water and wildfire, and clean energy” across California. The Committee held another
informational hearing in October that focused on “Permitting Reform to Facilitate Climate
Resiliency”. The Committee, in consultation with Bay Area Council, a business association located
in San Francisco, is studying a broad range of permitting processes at the state and local levels that
it claims act as barriers to private investors. The goal of Committee members would be to eventually
introduce legislation that would aim to lower the overall number of permits required for a given
project, especially in cases where permits may overlap. A report with recommendations by the
Committee will be issued at the culmination of the Select Committee and will provide more insight
into potential legislation over the next two year legislative session.
Given the above, we will likely see housing policy proposals that focus on:
• Increased enforcement and oversight from the Attorney General and the Department of
Housing and Community Development, respectively.
• Further measures to streamline local permitting.
• Increased production and density measures in single-family neighborhoods.
• Reduced local authority on development impact fees.
Energy Package: In the final days of session, the Legislature passed several energy bills designed to
cut electric bills and streamline clean energy. However, two bills related to fast-tracking renewable
energy projects and increasing oversight of utilities’ wildfire costs did not advance to the Governor’s
desk. The California Energy Commission (CEC) has adopted updates to the Building Energy
Efficiency Standards, which will take effect on January 1, 2026. These standards aim to improve
energy efficiency in newly constructed buildings, renovations, and certain existing buildings. It is
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likely that the Legislature will continue to advance legislation surrounding clean energy, reducing
greenhouse gas emissions, and streamlining energy projects in order to continue to try to meet the
Governor’s goal of 100% clean electricity by 2045. The Governor’s plan includes accelerating the
development of solar, wind, and battery storage projects, and modernizing the electrical grid to be
more resilient and efficient.
Water: Water legislation in 2025 will also continue to focus on several key areas to address the
challenges posed by climate change and ensure sustainable water management, including
conservation, disaster preparedness and rate assistance for low-income households. We will likely
see more bills that aim to create a more resilient water supply system, protect against extreme
weather, and promote long-term sustainability. In addition, we are likely to see legislation designed
to protect the state’s wetlands and add new safeguards for the water supplies of rural communities.
Starting January 1, 2025, new regulations will require approximately 400 of California’s largest cities
and water districts to develop annual water-use budgets. These budgets will consider factors such
as residential indoor and outdoor water use, commercial and industrial landscapes, and allowable
water loss from leakage. We could also see legislation in 2025 designed to alter or address any
implementation issues that arise from these regulations, such as costs or regulatory hurdles.
AI and Technology: We anticipate that artificial intelligence (AI) will continue to be a “hot” issue
going forward in 2025. Legislation addressing several issues of concern regarding AI use, including
ethics, data, privacy, surveillance, transparency, job displacement, safety, and the environmental
impact of the technology will continue to emerge as AI continues to develop and integrate into
various aspects of society.
Grant Funding
Prepared by: Jake Whitaker, Director of Grant Services
Over the past several years, we have experienced a rollercoaster of state spending – with a sudden
whiplash from unprecedented surpluses and spending to large deficits and subsequent budget cuts.
While the state has had to pull back on discretionary spending programs during the past two budget
cycles, funding for “core” programs to address transportation, public safety, housing,
homelessness, and community infrastructure has largely been maintained at reduced levels.
Passage of Proposition 4 (the “Climate Bond”) will allow the state to fund a portion of its climate and
sustainability initiatives while state revenues recover. Proposition 4 authorizes the state to take out
$10 billion in bonds to fund projects and programs that reduce the severity, frequency, and impacts
of climate-related natural disasters including fires, drought, floods, extreme heat, and mudslides.
Various existing grant programs were folded into the climate bond and zeroed out in the budget
effectively as an anticipated “fund shift” to the climate bond funds.
At the federal level, we are entering the back half of the Bipartisan Infrastructure Law (BIL). Passed
in 2021, the BIL authorized $1.2 trillion in spending over five fiscal years of augmented spending on
transportation, water, and sustainable infrastructure. At this point in time there are only two more
fiscal years of BIL funding remaining. The Inflation Reduction Act (IRA) is entering the next phase of
its implementation. While some programs will continue to be implemented directly by the federal
government, many of the IRA’s most impactful investments have been awarded to states and
financing institutions to carry out implementation. This includes the $27 billion Greenhouse Gas
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Reduction Fund (GGRF) and several large-scale programs that have been awarded to states to solicit
subrecipients for. The IRA’s Direct Pay provisions for local government entities are also now in effect,
providing opportunities for local governments to claim funding that was formerly only available to
private entities in the form of tax credits through the IRS for sustainable infrastructure investments.
CPPG will continue to monitor new developments in the coming year as we prepare for changes in
the grant funding opportunity landscape. However, we encourage all clients to proactively begin
considering potential projects that align with identified upcoming grant programs to prepare for
competitive solicitations throughout the upcoming year.
Local Agency Grant Seeking in the Second Trump Presidency—
What to Expect
Prepared by: Jake Whitaker, Director of Grant Services
While President Trump has sought to publicly distance himself from The Heritage Foundation’s
Project 2025 in favor of his Agenda 47, CPPG has conducted a thorough review of both documents
to assess potential impacts on local government agencies resulting from changes to federal
grantmaking under a second Trump Administration. The 900+-page Project 2025 presents an
extremely detailed action plan for a second Trump Administration, while Agenda 47’s 16-page
platform outlines broad goals without providing details on administrative implementation of these
goals. We cannot ascertain the extent to which President-Elect Trump will draw from either Project
2025 or Agenda 47. However, a common theme in both initiatives seems to downplay the
investments made by the Biden Administration in underserved communities and environmental
justice.
Administrative Impacts: Both platforms emphasize a shift toward state and local control, seeking
to broadly limit federal involvement by decentralizing federal grantmaking and passing control of
formula funding back to the states. Both platforms also include a call for targeted cuts to eliminate
grant programs perceived as ideologically driven or inefficient. Agenda 47 justifies its proposed
changes to federal grantmaking through the lens of efficiency and simplification, with a stated goal
to reduce bureaucracy to allow quicker, clearer distribution of funds while making federal grants
more outcome focused. Project 2025 takes this a step further with a more explicit goal of realigning
federal grantmaking to support conservative policy priorities, with specific plans to reduce and
eliminate grant programs providing funding for environmental or educational programs that conflict
with conservative ideology. Given the lack of specific details in Agenda 47, much of our analysis
looks at the administrative actions proposed in Project 2025 as a basis for what we might expect
from the second Trump administration. Repeal of all Biden Administration Executive Orders
prioritizing equity and climate action in federal grantmaking is anticipated under a second Trump
Administration. Plans to reverse Biden’s climate-related Executive Orders are outlined in both
documents. Project 2025 also calls for the elimination of the Justice40 initiative, which sets a
baseline of directing at least 40% of federal spending to disadvantaged communities.
The Department of Transportation (USDOT): Project 2025 calls for the elimination of the
discretionary grant programs that are administered by USDOT. These discretionary programs would
be folded into the Surface Transportation Block Grant (STBG) formula program distributed to the
states, and then sub-awarded by the states to local government entities. This goal is to shift
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transportation spending away from federal directives and towards a state-controlled funding model.
Furthermore, House Republicans have stated a goal of curbing “excessive” transportation spending
after the conclusion of the Bipartisan Infrastructure Law’s funding cycle which concludes in FY 26.
The BIL itself has maintained strong support from legislators in both parties in the face of attempts
to reduce federal spending spearheaded by the House Republican Freedom Caucus members.
Project 2025 also calls for a tightening of transportation infrastructure financing through the Build
America Bureau (BAB) to enforce repayment standards and strengthen cost-benefit justification
requirements.
The Environmental Protection Agency (EPA): Project 2025 specifically calls for a pause and review of
all large grants administered by the EPA to ensure alignment with the new administration’s priorities.
The plan advocates for a political appointee to lead the EPA’s approximately $30 billion in
grantmaking, shifting this responsibility away from career civil servants. The stated goal of Project
2025’s approach to EPA grantmaking is to prioritize larger, impact-driven grants over numerous
small-dollar grants and crack down on grants awarded to academic institutions for research that the
administration deems “radical.” The administration would also explore shifting responsibility for
environmental initiatives to state and local governments, similar to their plans for transportation
funding, in alignment with the plan’s call for a broader move to “cooperative federalism.”
Housing and Urban Development (HUD): A recurring theme of Project 2025 is the stated desire to
shift responsibilities of federal grant programs to state and local governments. HUD is no exception.
Project 2025 calls for devolving programs such as housing vouchers to states, while promoting
mobility over site-based subsidies. This could have significant impacts on federally subsidized
affordable housing in communities throughout the country. The plan also calls for a focus on shorter-
term rental assistance, eliminating programs deemed redundant, and streamlining HUD’s financial
reporting and internal controls. One other notable policy shift would be a prioritization of transitional
housing over permanent supportive housing as a solution for addressing homelessness. This would
mark a federal shift away from the “Housing First” model.
For federal grant programs that remain, CPPG anticipates significant changes to reporting
requirements for local government agencies. Project 2025 calls for data collection to be
standardized across federal agencies, with the goal of streamlining reporting to reduce
administrative burdens with a specific callout to address the burdens placed on small and mid-sized
local agencies. A similar effort began under the Biden Administration with the 2024 update to the
Uniform Grant Guidance, but it remains to be seen how a second Trump Administration will go about
implementing the 2024 Update – or whether they will pursue a subsequent update of their own. The
shift away from procedural benchmarks as a measurement of success to outcome-based metrics
may significantly change reporting requirements for federal grant programs.
Legislative Impacts: President Trump will enter his second term with narrow control of the House
and Senate. Speaker Mike Johnson is no stranger to navigating the challenges of a slim majority, and
he had to rely on a bipartisan compromise with Democrats to enact the FY 24 federal budget deal.
Will Trump’s return to office unify the House Republican caucus? Early indicators suggest that this
will be the case, but it remains to be seen. With a projected 221 seat majority and three
Representatives being nominated for cabinet posts, the margins will be even tighter and there will
be plenty of opportunities for coalitions of members to leverage that slim majority to advance their
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own policy priorities within the legislative process – which, as we have seen over the past two years,
can create a very chaotic policymaking environment.
The Senate Republican caucus has historically been more moderate than the House Republican
caucus on the issue of spending reductions, but there are fiscal hawks within the caucus that will
push to make their goals a priority for leadership. Newly elected Majority Leader John Thune will have
to navigate the challenges of a 53-seat majority. Thune has stated that the 60-vote legislative
filibuster will remain intact, but budget cuts and/or changes to tax law could be enacted through the
“reconciliation” process which lowers the threshold to a simple majority to pass legislation.
Bipartisan Infrastructure Law: The BIL has survived multiple attempts in budget negotiations to cut
its funding and maintains bipartisan support in the Senate. While clearly the dynamics have changed
with a Republican trifecta, the BIL feels relatively safe compared to some of President Biden’s other
legislative and administrative accomplishments. There are two fiscal years’ worth of funding still
available through the BIL for FY 25 and FY 26 – the first three years of funding has already been
obligated. CPPG anticipates a shift in priorities under the new administration, moving away from
equity-based competitive scoring and restructuring the programs to de-emphasize climate action.
However, should Congress push forward with a traditional devolution model, California leaders
would still set the stage for eligibility criteria.
Inflation Reduction Act (IRA): With Republicans controlling the House, the Senate, and the White
House, CPPG will be closely following new developments related to the partial or full repeal of the
IRA. Under a second Trump Administration, there is a possibility that climate-related programs
would be significantly reduced or eliminated entirely. Trump has stated his desire to rescind unspent
IRA funds, but most of the discretionary grant funding authorized under the IRA has already been
obligated or is in the process of being obligated prior to the transfer of power. There is some growing
support from Republicans in Congress for key provisions of the IRA. While not a single Republican
voted in favor of enacting the law, a group of 18 Republican Congressmen—including
representatives from Orange County and the Central Valley—signed onto a letter in August 2024
asking Speaker Mike Johnson to keep the IRA’s energy tax credits in place – arguing that these tax
credit programs, a major component of the IRA, are beneficial for local economic development.
Conversely, there is a group of Republicans who are adamantly demanding full repeal of the law.
This could be a point of conflict within the caucus, with enough Republicans signaling partial support
for some of the IRA’s provisions to block a budget deal that does not include them.
More generally, it is expected that the Trump Administration will pursue budget cuts to existing
formula grant programs, such as the Community Development Block Grant (CDBG) and the Surface
Transportation Block Grant (STBG) programs. Project 2025 calls for revenue responsibility for these
formula grant programs to shift to the states over a 10-year period, which would represent a massive
cut to federal grant funding. CPPG also expects cuts to other discretionary programs if Republicans
in Congress make good on their rhetoric about getting the budget deficit under control. Historically,
this has not been the case – but there will be a push to curb “excessive” spending from fiscal hawks
in Congress and in the administration.
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Date: December 5, 2024
To: Jason Haber, Intergovernmental Affairs Director
Cindie McMahon, City Attorney
City of Carlsbad
From: Sharon Gonsalves
Managing Director
California Public Policy Group
Re: CPPG Summary of 2025-26 Organizational Session
OVERVIEW
On Monday, December 2, 2024 state lawmakers returned to the Capitol for Organizational Session,
an annual gathering of the California State Legislature reserved for legislators to dispense with
general housekeeping items, take their oaths of office, and open the desk for bill introductions.
Approximately one-fourth of the Legislature is composed of new members as a result of new district
boundaries and open seats. This presents an opportunity for CPPG to work closely with you to
enhance your visibility in Sacramento and to educate new members on policy priorities of
significance to your organization and to local government operations more generally. Many key
committee assignments have vacancies that will be filled by new members, which will provide an
opening for education of these new members and a chance to establish and solidify working
relationships to set the stage for the years to come.
Final results of the 2024 election have resulted in the Republicans gaining one seat in the Senate and
two seats in the Assembly, with the Democratic majority now standing at 30-9 and 60-19,
respectively. Assembly District 32, formerly represented by Vince Fong (R-Bakersfield), and Senate
District 36, formerly represented by Janet Nguyen (R-Huntington Beach), are currently vacant.
In the Assembly, Robert Rivas (D-Hollister) was reelected Speaker, Josh Lowenthal (D-Long Beach)
is the new Speaker pro Tempore, and Cecilia Aguiar-Curry (D-Winters) will remain the Majority
Leader. No changes were made in the Senate: Mike McGuire (D-North Coast) will remain as
President pro Tempore, with Lena A. Gonzalez (D-Long Beach) as Majority Leader, and Angelique V.
Ashby (D-Sacramento) and Aisha Wahab (D-Hayward) as Assistant Majority Leaders. Changes to
committee chairs and membership are expected to be announced between now and early January.
Of particular note this year is that the Legislature lowered the maximum number of bills that each
legislator can introduce over the course of the two-year session, from 50 to 35 in the Assembly and
from 40 to 35 in the Senate. These limits do not include constitutional amendments and resolutions.
FIRST BILLS OF THE 2025-26 LEGISLATIVE SESSION INTRODUCED
As a first order of business, each house officially opened the desk, which means that members are
able to introduce bills. While there will be many, many more introduced prior to the February 21 bill
introduction deadline, the bills that are the first out of the gate for lawmakers often provide a
foreshadowing of legislative priorities for the year.
Exhibit 3
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Governor Gavin Newsom called a special session in early November with the goals of “bolstering
California legal resources to protect civil rights, reproductive freedom, climate action, and
immigrant families” and of “shoring up California’s defenses against an incoming federal
administration that has threatened the state on multiple fronts.” The three special session bills that
have been introduced so far are budget trailer bills that will set aside funding proposed by the
Governor for legal efforts and potential litigation related to the new federal administration.
In the regular session, there have been 67 Assembly bills and 41 Senate bills introduced. Of the 108
bills introduced from December 2 to 4, roughly one-third are “spot bills”, meaning that they do not
have substantive language and we do not yet know their full intent. The remainder of bills were mostly
light on details. The desk is officially open for more bills to be introduced until December 20, when it
will close again until the Legislature reconvenes on January 6. Overarching themes so far include a
continued focus on housing elements and affordable housing, addressing the cost of living,
healthcare, and climate resiliency.
MEASURES OF INTEREST TO LOCAL GOVERNMENT
Below is a list of bills, sorted by issue area, that have been introduced so far that may be of potential
interest to your agency for impacts on local operations and/or authority. It should be noted that many
of these measures are spot bills; substantive language will be added once the Legislature
reconvenes in January. As always, if you or your team have any questions on any of the developments
from this week or on the legislation below, please reach out: the CPPG team stands ready to assist.
Emergency Preparedness
AB 1 (Connolly) Residential property insurance: wildfire risk.
Summary: Current law generally regulates classes of insurance, including property and fire
insurance. Current law creates the Department of Insurance, headed by the Insurance
Commissioner. Current department regulations prohibit an insurer from using a rating plan that does
not take into account and reflect specified wildfire risk mitigation, including property-level building
hardening measures. This bill would require the department, on or before January 1, 2030, and every
5 years thereafter, to consider whether or not to update its regulations to include additional building
hardening measures for property-level mitigation efforts and communitywide wildfire mitigation
programs. (Based on 12/02/2024 text)
Homelessness
SB 16 (Blakespear) Homelessness.
Summary: Existing law establishes the Homeless Housing, Assistance, and Prevention program for
the purpose of providing jurisdictions, as defined, with one-time grant funds to support regional
coordination and expand or develop local capacity to address their immediate homelessness
challenges, as specified. This bill would declare the intent of the Legislature to enact legislation to
address homelessness. (Based on 12/02/2024 text)
Housing
AB 6 (Ward) Residential developments: building standards: review.
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Summary: The California Building Standards Law establishes the California Building Standards
Commission within the Department of General Services and sets forth its powers and duties,
including approval and adoption of building standards and codification of those standards into the
California Building Standards Code. This bill would require the department to convene a working
group no later than December 31, 2026, to research and consider identifying and recommending
amendments to state building standards allowing residential developments to be built. The bill
would require the department, no later than December 31, 2027, to provide a one-time report of its
findings to the Legislature in the annual report described above. (Based on 12/02/2024 text)
AB 11 (Lee) The Social Housing Act.
Summary: Current law creates a housing authority in each county or city, which functions upon the
adoption of a resolution by the governing body and authorizes these housing authorities, within their
jurisdictions, to construct, reconstruct, improve, alter, or repair all or part of any housing project.
This bill would enact the Social Housing Act and would create the California Housing Authority as an
independent state body, the mission of which would be to ensure that social housing developments
that are produced and acquired align with the goals of eliminating the gap between housing
production and regional housing needs assessment targets and preserving affordable
housing. (Based on 12/02/2024 text)
AB 36 (Soria) Housing elements: prohousing designation.
Summary: The Planning and Zoning Law requires a city or county to adopt a general plan for land use
development within its boundaries that includes, among other things, a housing element. Current
law requires HCD to designate jurisdictions as prohousing pursuant to emergency regulations
adopted by HCD and that these emergency regulations will remain in effect until HCD promulgates
permanent prohousing regulations. This bill would require HCD to designate jurisdictions as
prohousing pursuant to permanent regulations adopted by HCD to implement these provisions.
Beginning with the 7th housing element cycle, the bill would require HCD to use materials from a
jurisdiction’s housing element submission when determining whether the jurisdiction qualifies as
prohousing. (Based on 12/02/2024 text)
Public Safety
AB 18 (DeMaio) California Secure Borders Act of 2025.
Summary: Current law generally prohibits law enforcement from providing information regarding the
release date of an individual from custody or from transferring an individual to immigration
authorities without a warrant or judicial probable cause determination. This bill, the California
Secure Borders Act of 2025, would state the intent of the Legislature to combat illegal immigration
and secure the border by repealing those provisions, prohibiting the use of state funds for various
welfare, health, housing, and other services for undocumented immigrants, requiring public
disclosure of information on the impact of illegal immigration on crime rates and state and local
services, providing cross-deputization training for local law enforcement to support federal border
security actions, and providing standards for deployment of the State Guard to the border. (Based
on 12/02/2024 text)
AB 38 (Lackey) Crimes: serious and violent felonies.
Summary: Current law classifies certain criminal offenses as a “violent felony” for the purposes of
various provisions of the Penal Code, including sentencing enhancements for prior convictions, as
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well as numerous other provisions. Current law includes among the list of violent felonies rape
accomplished against a person’s will by means of force, violence, duress, menace, or fear, or rape
accomplished against the victim’s will by threat of violent retaliation, but does not include rape of a
person unable to give consent due to disability, rape under false pretenses, or rape accomplished
by threat of incarceration, arrest, or deportation. This bill would also include specified crimes
involving the rape or sexual assault of a minor who has a developmental disability in the list of violent
felonies. (Based on 12/02/2024 text)
SB 6 (Ashby) Controlled substances: xylazine.
Summary: The California Uniform Controlled Substances Act categorizes controlled substances
into 5 schedules and places the greatest restrictions on those substances contained in Schedule I.
This bill would add xylazine to the list of Schedule III substances. If an animal drug containing
xylazine that has been approved under the federal Food, Drug and Cosmetic Act is not available for
sale in California, the bill would create an exception for a substance that is intended to be used to
compound an animal drug. The bill would exclude from the prohibitions on paraphernalia any testing
equipment to analyze a substance for the presence of xylazine. (Based on 12/02/2024 text)
Revenue and Taxation
AB 21 (DeMaio) Taxpayer Protection Act of 2025.
Summary: Would declare the intent of the Legislature to enact a constitutional amendment to limit
the ability of state and local governments to raise taxes, restore a 2/3 vote requirement on local
special tax increases, impose voter approval requirements on specific categories of new taxes, and
regulate the titles on state and local ballot measures relating to tax increases. (Based
on 12/02/2024 text)
Transportation
AB 33 (Aguiar-Curry) Autonomous vehicles.
Summary: Current law authorizes the operation of an autonomous vehicle on public roads for
testing purposes by a driver who possesses the proper class of license for the type of vehicle
operated if specified requirements are satisfied. This bill would make technical, nonsubstantive
changes to these provisions. (Based on 12/02/2024 text)
Energy
AB 39 (Zbur) General plans: Local Electrification Planning Act.
Summary: The Planning and Zoning Law requires a city or county to adopt a comprehensive general
plan for the city’s or county’s physical development that includes various elements, including a land
use element that designates the proposed general distribution and general location and extent of
the uses of the land in specified categories, and a circulation element that identifies the location and
extent of existing and proposed major thoroughfares, transportation routes, terminals, any military
airports and ports, and other local public utilities and facilities. This bill would require a city, county,
or city and county, on or after January 1, 2027, but no later than January 1, 2030, to prepare and adopt
a specified plan, or integrate a plan in the next adoption or revision of the general plan, that includes
locally based goals, objectives, policies, and feasible implementation measures that include,
among other things, the identification of opportunities to expand electric vehicle charging and
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includes policies and implementation measures that address the needs of disadvantaged
communities, low-income households, and small businesses for equitable and prioritized
investments in zero-emission technologies that directly benefit these groups. For these purposes,
the bill would authorize a city, county, or city and county to incorporate by reference into the general
plan a previously adopted similar plan that meets the above-described requirements. By increasing
the duties of local public officials, the bill would establish a state-mandated local program. (Based
on 12/02/2024 text)
Economic Development
SB 5 (Cabaldon) Infrastructure financing districts: allocation of taxes: agricultural land
exclusion.
Summary: The California Land Conservation Act of 1965, otherwise known as the Williamson Act,
authorizes a city or county to enter into contracts with owners of agricultural land to preserve the
land for agricultural use, in return for reduced property tax assessments. The act also authorizes a
landowner of specified agricultural land to petition the city or county to cancel the Williamson Act
contract in order to designate the land as a farmland security zone, whereby the land is eligible for a
specified property tax valuation and taxed at a reduced rate for specified special taxes. This bill
would exclude the taxes levied upon a parcel of land enrolled in or subject to a Williamson Act
contract or a farmland security zone contract from the above-described allocation to the
district. (Based on 12/02/2024 text)
SB 9 (Arreguín) Accessory Dwelling Units: owner-occupant requirements.
Summary: The Planning and Zoning Law provides for the creation of an accessory dwelling unit by
local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval. The law
prohibits a local agency from imposing an owner-occupant requirement or any additional standards,
except when evaluating a proposed accessory dwelling unit on a lot that includes a proposed or
existing single-family dwelling. This bill would additionally prohibit a local agency from imposing an
owner-occupant requirement for a proposed or existing accessory dwelling unit whether or not the
local agency has adopted a local ordinance pursuant to these provisions. (Based
on 12/02/2024 text)
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CALIFORNIA PUBLIC POLICY GROUP