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HomeMy WebLinkAbout2025-10-14; City Council Legislative Subcommittee; 02; Legislative and Advocacy UpdateMeeting Date: Oct. 14, 2025 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 and budget activity and the priority legislation and intergovernmental matters being tracked on behalf of the city (Exhibits 1 and 2 ). 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 legislative session. 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 Monthly Update, September 2025 2.California Public Policy Group – State Monthly Update, September 2025 LEGISLATIVE SUBCOMMITTEE Oct. 14, 2025 Item #2 Page 1 of 14 1 September 30, 2025 City of Carlsbad Federal Update www.carpiclay.com Fiscal Year 2026 Appropriations Update While the House advanced several FY26 appropriations measures in September, including its Energy-Water Development bill on the floor and the Labor-HHS-Education bill in committee, the risk of a government shutdown on October 1 rose sharply after both chambers adjourned without a funding deal. On September 19, the House narrowly passed a continuing resolution (CR) (H.R. 5371) to extend funding through November 21 by a 217-212 vote, with one Democrat voting yes and two Republicans voting no. Senate Republican leadership quickly took up the measure, but nearly all Senate Democrats along with Senators Lisa Murkowski (R-AK) and Rand Paul (R-KY) voted to block its consideration. Senate Democratic leadership then proposed a shorter CR proposal through October 31 that included health care funding and other provisions, which Republicans rejected as partisan. On September 29, President Trump hosted congressional leaders at the White House but emerged without a breakthrough. The Senate has returned to session for further consideration of a continuing resolution, but there is little time to avoid a shutdown. At the time of this memo, it does not appear that either Congressional Democrats or Republicans will be yielding their positions before October 1. FY26 Appropriations Bill House Subcommittee Allocation (in Billions) Passed House Committee Passed House Passed Senate Committee Passed Senate Agriculture- Rural Development-FDA $25.523 June 23 by a 35-27 vote July 10 by a 27-0 vote August 1 by an 87-9 vote Commerce-Justice-Science $76.824 September 10 by a 34-28 vote July 17 by a 19-10 vote Defense $831.513 June 12 by a 36-27 vote July 18 by a 219-202 vote July 31 by a 26-3 vote Energy-Water Development $57.300 July 10 by a 35-27 vote September 4 by a 214-213 vote Financial Services-General Government $23.198 September 3 by a 35-28 vote Oct. 14, 2025 Item #2 Page 2 of 14 Exhibit 1 2 www.carpiclay.com Homeland Security $66.361 June 24 by a 36-27 vote Interior-Environment $37.971 July 22 by a 33-28 vote July 24 by a 26-2 vote Labor-HHS-Education $184.491 September 9 by a 35-28 vote July 31 by a 26-3 vote Legislative Branch $6.700 June 26 by a 34-28 vote July 10 by a 26-1 vote August 1 by an 81-15 vote MilCon-VA $152.091 June 10 by a 36-27 vote June 25 by a 218-206 vote July 26 by a 26-3 vote August 1 by an 87-9 vote State-Foreign Operations $46.218 July 23 by a 35-27 voteTransportation-HUD $89.910 July 17 by a 35-28 vote July 24 by a 27-1 vote Trump Administration Appointments President Trump announced the following appointments to his administration in September: Department/Agency Position Appointee Commerce Assistant Secretary for Industry and Analysis Steven Haines Environmental Protection Agency Principal Deputy Assistant Administrator, Office of Enforcement and Compliance Assurance Craig Pritzlaff Labor Commissioner of Labor Statistics Erwin Antoni Transportation Under Secretary for Policy Ryan McCormack Treasury Assistant Secretary for the Office of Economic Policy Sriprakash Kothari Treasury Assistant Secretary for Intelligence and Analysis Peter Metzger LEGISLATIVE ACTIVITY Senate Confirms Trump Administration Nominees. On September 18, the Senate confirmed 48 nominations en bloc by a 51-47 vote, including: •Katherine Scarlett, to lead the Council on Environmental Quality (CEQ); •Jessica Kramer, to be Assistant Administrator of the Environmental Protection Agencyfor Water (EPA); •Sean McMaster, to be the Administrator of the Federal Highway Administration (FHWA); •Benjamin DeMarzo, to be Assistant Secretary of Housing and Urban Development forCongressional and Intergovernmental Affairs; and Oct. 14, 2025 Item #2 Page 3 of 14 3 www.carpiclay.com •Jonathan Morrison, to be Administrator of the National Highway Traffic SafetyAdministration (NHTSA). House Passes Bill to Review EPA Water Assistance Programs. On September 15, the House passed the Water Resources Technical Assistance Review Act (H.R. 3427) by a voice vote. Sponsored by Representatives David Taylor (R-OH) and Shomari Figures (D-AL), the bill directs the Government Accountability Office (GAO) to review the Environmental Protection Agency’s water technical assistance programs and recommend improvements to help small and rural communities access federal funding for water infrastructure. GAO must complete its review within one year and report its findings to Congress. House Committee Approves Bipartisan Bill to Overhaul FEMA. On September 3, the House Transportation and Infrastructure Committee approved the Fixing Emergency Management for Americans Act (H.R. 4669) by a 57-3 vote. This bipartisan bill would restructure and reform the Federal Emergency Management Agency (FEMA), including by restoring FEMA as an independent, Cabinet-level agency reporting directly to the President. The legislation aims to streamline disaster recovery, improve transparency, and speed aid to impacted communities. It would also simplify survivor applications, provide states with greater flexibility in recovery and mitigation, and create a task force to close out long-standing disaster declarations. House Committee Approves Cybersecurity Reauthorization Bills. On September 3, the House Homeland Security Committee advanced two bipartisan bills to extend key Department of Homeland Security cybersecurity programs. The Widespread Information Management for the Welfare of Infrastructure and Government (WIMWIG) Act (H.R. 5079), led by Chairman Andrew Garbarino (R-NY), would reauthorize and update the Cybersecurity Information Sharing Act of 2015 for the next decade. The Protecting Information by Local Leaders for Agency Resilience (PILLAR) Act (H.R. 5078), introduced by Representative Andy Ogles (R-TN), would reauthorize the DHS State and Local Cybersecurity Grant Program for ten years, supporting state and local governments in addressing cyber risks. Bipartisan Bill Introduced to Expand Use of CDBG Funds for Affordable Housing Construction. On September 3, Representatives Sam Liccardo (D-CA) and Mike Flood (R-NE) introduced the Unleashing Needed Local Options to Construct and Keep Housing (UNLOCK) Act (H.R. 5105), which would explicitly allow Community Development Block Grant (CDBG) funds to be used for the construction of new affordable housing for low- and moderate- income households. Currently, CDBG funds are more limited in scope, focusing primarily on rehabilitation and other eligible activities. The measure was developed in response to local government input on reducing barriers in federal housing programs. Bipartisan Bill Introduced to Exempt Certain Infill Housing Projects from NEPA. On September 2, Rep. Laura Friedman (D-CA) and Rep. Chuck Edwards (R-NC) introduced the Cut Red Tape for Housing Act (H.R. 5085), which would exempt certain urban infill housing projects from the National Environmental Policy Act. Eligible projects must be on vacant or underutilized land no larger than 20 acres in predominantly developed areas. They would be required to complete environmental site assessments, and any contaminated properties would Oct. 14, 2025 Item #2 Page 4 of 14 4 www.carpiclay.com need to undergo remediation under federal brownfield standards. Sites with very high wildfire or flood risk, or those containing protected historic resources, would be excluded. Bill Seeks to Bar Housing Discrimination Based on Income Source, Veteran Status. On September 17, Representative Scott Peters (D-CA) and Senators Tim Kaine (D-VA) and Adam Schiff (D-CA) reintroduced the Fair Housing Improvement Act of 2025 (H.R. 5443/S. 2827). The bill would amend the Fair Housing Act of 1968 to add source of income and military or veteran status as protected classes, prohibiting landlords from denying housing to tenants who use Housing Choice Vouchers, HUD-VASH vouchers, Social Security benefits, court-ordered payments, or other lawful income sources. Bipartisan Bill Reintroduced to Authorize Lawful Permanent Resident Status to Documented Dreamers. On September 19, Senators Alex Padilla (D-CA) and Rand Paul (R- KY), along with Representatives Deborah Ross (D-NC) and Mariannette Miller-Meeks (R-IA), reintroduced the America’s CHILDREN Act (H.R. 5528/S. 2886). The bill would provide a pathway to citizenship and age-out protections for more than 250,000 “Documented Dreamers,” children who were brought legally to the U.S. as dependents on their parents’ work visas but risk losing status when they turn 21 due to green card backlogs. The legislation would allow these long-term residents to remain in the U.S. and keep their place in the green card process. Bipartisan Disaster Tax Relief Bills Introduced. Lawmakers in both chambers introduced bipartisan proposals to extend and codify tax relief for disaster survivors. On September 15, Representatives Greg Steube (R-FL) and Mike Thompson (D-CA) as well as Senators Rick Scott (R-FL) and Adam Schiff (D-CA) introduced the Federal Disaster Tax Relief Act of 2025 (H.R. 5366/S. 2744), which would allow tax relief for victims of federally declared disasters through 2026 and extend the exclusion of certain wildfire settlement payments through 2030. Separately, Representatives Doug LaMalfa (R-CA) and six bipartisan cosponsors introduced the Protect Innocent Victims of Taxation After Fire Extension Act (H.R. 5225), which would extend the wildfire tax exemption through 2032 and permit victims to claim the exemption in the year payments are received. Bipartisan Bill Introduced to Strengthen Emergency Alert Systems. On September 4, Representatives Kevin Mullin (D-CA), Randy Weber (R-TX), and Nancy Pelosi (D-CA) introduced the Resilient Emergency Alert Communications and Training (REACT) Act (H.R. 5154), which would authorize $30 million annually through 2035 for training, testing, and public education to improve the effectiveness of FEMA’s Integrated Public Alert and Warning System. It would also direct FEMA to provide technical assistance, develop model alert templates, and publish annual reports on local alert exercises. Bill Reintroduced to Revive EPA’s Noise Abatement Office. On September 4, Rep. Grace Meng (D-NY) reintroduced the bipartisan Quiet Communities Act (H.R. 5151), which would reestablish the Office of Noise Abatement and Control at the Environmental Protection Agency (EPA). The Office, originally created in the 1970s and defunded in the early 1980s, would coordinate federal noise reduction programs, provide grants and technical assistance to state and local governments, and conduct research on the health and environmental effects of noise Oct. 14, 2025 Item #2 Page 5 of 14 5 www.carpiclay.com pollution. The measure would also direct EPA to carry out a study of aircraft noise and its impacts on surrounding communities, including an evaluation of current mitigation strategies. New Legislation Aims to Support Redesigned Bus Systems and Infrastructure. On September 9, Representative Maxwell Frost (D-FL) introduced the Faster Buses Better Futures Act (H.R. 5230), which would provide billions of dollars over five years to support bus network redesigns that aim to double ridership. The bill also funds new bus shelters, station accessibility upgrades, and transit-priority measures, while increasing Federal Transit Administration resources to administer the program. Lawmaker Introduces E-Bike Safety Legislation. On September 10, Representative Josh Gottheimer (D-NJ) introduced the SAFE Ride Act of 2025 (H.R. 5265), which would direct the U.S. Department of Transportation to establish a national electric bike safety program. The bill would provide grants to states that create e-bike safety plans, promote helmet use, collect crash data, and support local law enforcement in enforcing age and safety requirements. The proposal follows a significant rise in e-bike injuries, with children ages 10-13 representing the largest share of cases. Bipartisan Bill Introduced to Override Zoning Restrictions for Faith-Based Housing. On September 26, Representatives Scott Peters (D-CA) and Chuck Edwards (R-NC) introduced the bipartisan Faith in Housing Act (H.R. 5601), which would allow nonprofit religious institutions to develop affordable housing on land they own, regardless of local zoning restrictions. The bill would require participating organizations to maintain affordability for low- and middle-income households, partner with nonprofit housing managers, and comply with health and safety standards. Bipartisan Flood Resilience Caucus Relaunched. On September 12, Rep. Troy Carter (D-LA) announced he will lead the Bipartisan Congressional Flood Resilience Caucus for the 119th Congress, joined by co-chairs Reps. Lizzie Fletcher (D-TX), Randy Weber (R-TX), and Mike Ezell (R-MS). The caucus will focus on strategies to reduce flood risk, strengthen infrastructure, and support disaster preparedness for the more than 40 million Americans living in high-risk flood areas. Bicameral Bill Introduced to Address Tijuana River Pollution. Representatives Juan Vargas, Scott Peters, Sara Jacobs, Mike Levin, and Raul Ruiz as well as Senators Alex Padilla, Adam Schiff, and Cory Booker introduced the Border Water Quality Restoration and Protection Act (H.R. 4357/S. 2260), which aims to address chronic pollution in the Tijuana and New River watersheds. The bill would designate the EPA as the lead agency to coordinate federal, state, local, and Tribal efforts to implement water quality projects, upgrade infrastructure, and reduce cross-border sewage flows. The legislation follows recommendations from a 2020 Government Accountability Office report and is intended to improve public health, environmental safety, and economic conditions in affected Southern California communities. Oct. 14, 2025 Item #2 Page 6 of 14 6 www.carpiclay.com CONGRESSIONAL LETTERS Lawmakers Urge NFIP Long-Term Reauthorization and Reform. On September 8, a bipartisan group of sixteen Members of Congress sent a letter to House Financial Services Committee leaders urging action to reauthorize and reform the National Flood Insurance Program (NFIP). The lawmakers emphasized NFIP’s role as a “lifeline” for homeowners, small businesses, and communities across the country, noting that most standard homeowners’ insurance policies do not cover flood damage. The letter warned that a lapse in NFIP’s authorization would prevent issuance of new policies, halt renewals, and potentially disrupt real estate transactions in flood-prone areas, creating financial risks for families and local economies. Members also called for reforms to strengthen the program’s long-term stability, including investments in improved flood mapping, mitigation incentives, and updates to pricing and coverage. FEDERAL FUNDING OPPORTUNITIES EDA Opens FY25 Public Works and Economic Adjustment Assistance Grant Opportunity. The Economic Development Administration (EDA) has updated and reissued its Public Works and Economic Adjustment Assistance (PWEAA) Programs notice of funding opportunity for FY25. The program provides grants to support planning, technical assistance, construction, and revolving loan fund projects aimed at spurring economic growth in distressed communities, including those impacted by coal and nuclear plant closures. Awards will range from $100,000 to $30 million, with cost-sharing requirements. Eligible applicants include state, local, and tribal governments, institutions of higher education, and nonprofits. Applications will be reviewed on a rolling basis. EPA Releases SWIFR NOFO. The Environmental Protection Agency (EPA) has released a notice of funding opportunity for the Solid Waste Infrastructure for Recycling (SWIFR) Grants for Tribes and Intertribal Consortia. The program will provide about $20 million in awards, with individual grants ranging from $100,000 to $1.5 million, to support projects that improve solid waste management and recycling infrastructure. Applications are due December 12, 2025. EPA will host an informational webinar on October 7, 2025. FRA Releases NRPP NOFO. The Federal Railroad Administration (FRA) has published a notice of funding opportunity for $5 billion through the new National Railroad Partnership Program (NRPP). The program provides funding for capital projects that reduce the state of good repair backlog, improve performance, or expand or establish new intercity passenger rail service, including privately operated intercity passenger rail service, if an eligible applicant is involved. The FRA is reissuing the NOFO for FY 2024 and adding funding for the FY 2025 National Railroad Partnership Program. The FY 2024 NOFO was originally published last September as the Federal-State Partnership for Intercity Passenger Rail Grant Program. The NOFO also aims to repurpose $2.4 billion previously allocated to the California High-Speed Rail project. Applications are due by January 7, 2026. Oct. 14, 2025 Item #2 Page 7 of 14 7 www.carpiclay.com FEDERAL AGENCY ACTIONS AND PERSONNEL CHANGES President Trump Signs Proclamation Imposing New H1-B Visa Requirements. On September 19, President Trump issued a proclamation imposing new requirements for certain H-1B nonimmigrant workers, citing concerns that the program has been used to replace U.S. workers with lower-paid foreign labor, particularly in information technology. Under the policy, H-1B petitions for workers outside the U.S. must be accompanied by a $100,000 payment unless an exemption is granted by the Department of Homeland Security. The restrictions are set to last for one year beginning September 21, 2025, while agencies also move to revise prevailing wage rules and prioritize higher-paid, highly skilled visa applicants. White House Releases Unified Agenda Outlining Deregulatory Goals. The Office of Management and Budget has published the Trump Administration’s spring Unified Agenda, its first of the second term. The document details plans to revise or roll back a wide range of regulations across federal agencies, including rules related to energy, environment, and consumer products. DOL Launches Initiative to Enforce H-1B Rules. The Department of Labor (DOL) announced Project Firewall, a new initiative to strengthen enforcement of the H-1B visa program. The effort will involve agency partnerships to investigate potential fraud or abuse and ensure compliance with hiring and wage requirements. The Secretary of Labor will directly certify the initiation of certain investigations, which may lead to back wage recovery, civil penalties, or employer debarment from the program. The initiative will be led by the Office of Immigration Policy, Employment and Training Administration, and Wage and Hour Division, in coordination with the Department of Justice, Equal Employment Opportunity Commission, and U.S. Citizenship and Immigration Services. DOT Threatens Funding Cuts in Commercial Driver Licensing Dispute. On September 26, Secretary Duffy announced that California and several other states risk losing federal highway funds unless they comply with new rules requiring verification of commercial drivers’ immigration status. In particular, the Federal Motor Carrier Safety Administration (FMCSA) cited safety concerns after fatal crashes involving non-resident drivers and an investigation finding irregularities in California’s licensing system. Under an emergency rule, states must verify immigration documentation in person and limit commercial licenses for foreign nationals to one year. FMCSA said California could face penalties within 30 days, beginning with $160 million in withheld funds in the first year of noncompliance, with the amount doubling in the second. State officials dispute the findings and have pledged to respond. DOT Publishes NPRM to Add Fentanyl to Drug Testing Panels. DOT has published a notice of proposed rulemaking (NPRM) that amends its drug-testing program regulation, 49 CFR Part 40 (Part 40), to add fentanyl (a synthetic opioid) and norfentanyl (a metabolite of fentanyl) to its drug testing panels. The proposed rulemaking would harmonize Part 40 with the U.S. Department of Health and Human Services (HHS) Mandatory Guidelines for Federal Workplace Drug Testing Programs, which DOT must follow for the minimum list of drugs for which DOT requires testing, and the comprehensive standards for laboratory drug testing per the Omnibus Employee Testing Act of 1991. Adding fentanyl and norfentanyl is also in the Oct. 14, 2025 Item #2 Page 8 of 14 8 www.carpiclay.com interest of transportation safety, given compelling information regarding the number of overdose deaths in the United States involving fentanyl. The Department also proposes to amend certain provisions of Part 40 to harmonize, as appropriate, with the current HHS Mandatory Guidelines using urine and oral fluid. This NPRM also proposes to clarify certain existing Part 40 drug testing program provisions and to make technical amendments. Comments are due by October 17, 2025. DOT Requests Nominations for Advisory Committee on Human Trafficking. DOT is requesting nominations to fill 15 positions on the Advisory Committee on Human Trafficking. The Advisory Committee must submit a triennial counter-trafficking report that relates to human trafficking violations involving commercial motor vehicles and includes recommendations for countering human trafficking and an assessment of best practices by transportation stakeholders. Nominations are due by October 14, 2025. DOT IG Publishes Report on FHWA’s Oversight of COVID-19 Relief Funding Compliance. DOT IG has published a report titled “FHWA Generally Follows Its Existing Processes To Oversee COVID-19 Relief Funding Compliance, Track Funds, and Monitor Projects.” The report found that FHWA generally adhered to its established Federal-aid processes in overseeing State compliance, tracking, and monitoring of CRRSAA (COVID-19 relief) highway funds, but its guidance lacked sufficient specificity for “Special Authority” provisions, contributing to delays and uncertainty in implementation; notwithstanding, FHWA’s divisions and State DOTs largely followed eligibility, cost, obligation, and oversight rules, reconciled discrepancies in reported expenditures, and used risk-based monitoring, so the Office of Inspector General made no formal recommendations. EPA Region 9 Administrator Steps Down. Josh Cook has stepped down from his role as Environmental Protection Agency (EPA) Region 9 Administrator after serving since March 18, 2025. A successor has not yet been announced. Region 9, headquartered in San Francisco, oversees environmental programs in Arizona, California, Hawaii, Nevada, the Pacific Islands, and tribal lands. EPA Reaffirms PFAS Superfund Designation Amid Ongoing Litigation. On September 17, EPA announced it will retain the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) hazardous-substance designation for PFOA and PFOS, effective July 2024, and is defending the rule in ongoing litigation. EPA also plans to develop a CERCLA framework rule to guide future hazardous substance designations and address issues related to “passive receivers” such as municipalities and water utilities. EPA Issues Guidance on New Source Review Permitting. On September 9, EPA released new guidance on the Clean Air Act’s New Source Review (NSR) program. The guidance clarifies what construction activities can begin before a preconstruction air permit is issued, allowing projects to move forward with non-emissions-related work, such as installing foundations or cement pads, prior to receiving a permit. The agency also announced plans to begin a rulemaking to revise the regulatory definition of “begin actual construction” and to codify how permitting authorities distinguish between emissions units and other components of a Oct. 14, 2025 Item #2 Page 9 of 14 9 www.carpiclay.com facility. The NSR program applies to new facilities and certain modifications of existing facilities, requiring permits before construction that could affect air emissions. EPA Seeks CHPAC Nominations. EPA is inviting nominations for appointments to the Children’s Health Protection Advisory Committee (CHPAC). Established in 1997, CHPAC provides independent advice to the EPA Administrator on environmental issues that affect children’s health. EPA is seeking candidates from a variety of sectors, including industry, government, school systems, academia, health care, and non-governmental organizations. Desired expertise includes children’s environmental health and development, epidemiology, toxicology, prenatal exposures, the role of chemicals in childhood diseases, air and water quality, risk assessment, and public health communication. Nominations are due by October 6, 2025. FCC Launches Inquiry on Barriers to Wireline Broadband Deployment. On September 9, the Federal Communications Commission (FCC) issued a notice of inquiry seeking comment on state and local laws that may delay or increase the cost of wireline broadband deployment in violation of Section 253 of the Communications Act. The proceeding will examine permitting timelines, fees, and in-kind compensation requirements tied to use of public rights-of-way, and whether such measures deter investment in high-speed networks. The FCC is considering whether to set processing “shot clocks” for approvals, similar to its 2018 small wireless facility rules. Initial comments are due November 17, with replies due December 17. FHWA Publishes Final Rule Rescinding FHS Management System Regulations. FHWA has published a final rule that rescinds regulations issued on February 27, 2004, on the Fish and Wildlife Service (FWS) Management Systems. The regulations provided for the development and implementation of safety, bridge, pavement, and congestion management systems for transportation facilities serving the National Wildlife Refuge System, funded under the Federal Lands Highway Program, as required by the Transportation Equity Act for the 21st Century (TEA-21). The final rule is effective on October 20, 2025. FRA Announces an Increase in Railroad Bridge Safety Inspections. The Federal Railroad Administration (FRA) has announced it will significantly boost railroad bridge safety oversight by expanding the number of inspectors trained to conduct field inspections, from fewer than 10 to over 160 inspectors, including both federal staff and state track inspectors. Starting in November, these newly trained inspectors will assess railroad bridges for structural integrity and enforce Bridge Safety Standards, with the authority to recommend civil penalties if critical defects are identified. The training will cover bridge fundamentals, types of construction materials, components of bridge management programs, and inspection protocols to ensure comprehensive, effective oversight of railroad bridge safety nationwide. FRA Moves to Redirect California High-Speed Rail Funds to New Rail Program. On September 22, Transportation Secretary Sean Duffy announced that $2.4 billion in federal funds originally awarded to the California High-Speed Rail project would be repurposed under FRA’s new National Railroad Partnership Program. California officials, however, maintain the funding remains committed to the state project, citing an August agreement with the Department of Transportation that froze the money pending ongoing litigation. Oct. 14, 2025 Item #2 Page 10 of 14 10 www.carpiclay.com GAO Finds FEMA Violated Impoundment Control Act in Some Programs. On September 15, the Government Accountability Office (GAO) issued a decision on the Department of Homeland Security’s handling of FY 2025 FEMA federal assistance appropriations. GAO concluded that FEMA violated the Impoundment Control Act of 1974 (ICA) by improperly withholding funds for the Emergency Food and Shelter Program and the Shelter and Services Program. For other grant programs, GAO found no violation at this time, though it emphasized that funds must be prudently obligated before expiration. GAO noted that its role is to ensure compliance with the ICA and appropriations law, without taking a position on the underlying policies. NHTSA Publishes Uniform Procedures for State Highway Safety Grant Programs NPRM. The National Highway Traffic Safety Administration (NHTSA) has published a notice of proposed rulemaking (NPRM) that revises certain documentation requirements relating to public participation and engagement in the Uniform Procedures for State Highway Safety Grant Programs. Comments are due by October 20, 2025. NOAA Expands Flood Prediction Mapping Tool. The National Oceanic and Atmospheric Administration (NOAA) announced the expansion of its Flood Inundation Mapping program, which provides near real-time river flood forecasts, to cover nearly two-thirds of the continental U.S. The tool—first launched in 2023 in the Northeast and East Texas—now includes southern Appalachia, the Upper Mississippi and Missouri river basins, and West Texas, bringing coverage to 204 million Americans. ## ## ## Oct. 14, 2025 Item #2 Page 11 of 14 1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 1 Date: October 2, 2025 To: Jason Haber, Intergovernmental Affairs Director Cindie McMahon, City Attorney City of Carlsbad From: Sharon Gonsalves Managing Director California Public Policy Group Re: CPPG Legislative Summary — September 2025 LEGISLATIVE UPDATE Legislature Closes Out First Year of 2025-26 Session At around 3 p.m. on Saturday, September 13, the Legislature adjourned the first year of its two-year legislative session. The final two weeks were hectic, with Floor session held nearly every day and hundreds of bills advancing through the Legislature on or before the last day of session. On September 10, the Legislature waived its standing rules to allow amendments beyond the deadline and extend its session by one day. The extension ensured compliance with a provision in the California Constitution that requires that any bill be available online for at least 72 hours before a final vote. The bills amended after the deadline addressed affordability, including gasoline and energy costs, and greenhouse gas emissions targets. During the first year of the session, a total of 2,833 measures were introduced, with roughly 900 bills advancing through the Legislature to reach the Governor’s desk for consideration. This ratio is generally consistent with prior years of Governor Newsom’s tenure. The one-day extension of the legislative session has moved the Governor’s deadline to act on all bills to October 13, delaying a comprehensive assessment of the 2025 legislative outcomes until then. If the Governor takes no action by the deadline, a bill becomes law by default—an option rarely exercised. Unless otherwise specified, newly enacted laws will take effect on January 1, 2026. As of October 2, 644 bills remain pending on the Governor’s desk, while 448 have been chaptered and 22 have been vetoed. The period between the last day of session this year and the first day of session next year, formally known as the “Interim Study Recess,” is when legislators set their priorities for the coming year, prepare to introduce new bills, and advance any two-year bills still in play. This period also provides an opportunity for agencies to review their legislative platforms, assess potential bill sponsorship, and consider state budget requests for the coming year. Cap-and-Trade Reauthorization On September 19, Governor Newsom announced that he had signed several pieces of legislation to “bring down electricity costs, stabilize the petroleum market and slash air pollution.” The signed legislation included two measures that extend and amend the state’s Cap-and-Trade Program, which is funded through the Greenhouse Gas Reduction Fund and administered by the California Air Resources Board. AB 1207 (Irwin) [Chapter 117, Statutes of 2025] reauthorizes the Program—now Oct. 14, 2025 Item #2 Page 12 of 14 Exhibit 2 1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 2 renamed Cap-and-Invest—extending it through 2045. SB 840 (Limón) [Chapter 121, Statutes of 2025] establishes the expenditure plan for the Program, allocating $1 billion annually to High-Speed Rail and an additional $1 billion in the 2026-27 fiscal year for various purposes. Although a cap-and- trade agreement had been expected since the beginning of the year, negotiations continued through much of the legislative session and remained unresolved into late August. Toward the close of the legislative session, lawmakers finalized an agreement linking the long-term extension in AB 1207 with the detailed expenditure plan set forth in SB 840. ADMINISTRATION UPDATE State of the State On September 9, Governor Gavin Newsom released his annual State of the State letter. The letter touched upon major policy themes of the year, including housing, wildfire mitigation, congressional redistricting, and affordability. It also celebrated the 175th anniversary of California’s admission to the Union. Although typically delivered in person at the start of the legislative session, this year the Governor chose to briefly reflect on the letter in a recorded video. Executive Order on the Insurance Market On September 30, Governor Newsom announced that he had signed an executive order to “expedite the state’s response to mitigate the impacts and fairly allocate the costs of natural disasters and further stabilize the insurance market and energy utility sector.” ACTIVE POSITIONED LEGISLATION • AB 87 (Boerner) Housing development: density bonuses. o Location: Assembly Enrolled o Position: Support • AB 253 (Ward) California Residential Private Permitting Review Act: residential building permits. o Location: Assembly Enrolled o Position: Oppose • AB 379 (Schultz) Crimes: prostitution. o Location: Assembly Chaptered o Position: Support • AB 424 (Davies) Alcohol and other drug programs: complaints. o Location: Assembly Enrolled o Position: Support • AB 492 (Valencia) Alcohol and drug programs: licensing. o Location: Assembly Enrolled o Position: Support • AB 610 (Alvarez) Housing element: governmental constraints: disclosure statement. o Location: Assembly Enrolled o Position: Oppose • AB 650 (Papan) Planning and zoning: housing element: regional housing needs allocation. o Location: Assembly Enrolled o Position: Support • AB 942 (Calderon) Electricity: climate credits. o Location: Senate Rules Oct. 14, 2025 Item #2 Page 13 of 14 1127 11TH STREET, SUITE 300, SACRAMENTO, CA 95814 • 916.974.9270 • PUBLICPOLICYGROUP.COM PAGE 3 o Position: Neutral • AB 996 (Pellerin) Public Resources: sea level rise plans. o Location: Assembly Enrolled o Position: Support • AB 1154 (Carrillo) Junior accessory dwelling units. o Location: Assembly Enrolled o Position: Watch • SB 9 (Arreguín) Accessory Dwelling Units: ordinances. o Location: Senate Enrolled o Position: Watch • SB 16 (Blakespear) Ending Street Homelessness Act. o Location: Assembly Housing And Community Development o Position: Watch • SB 79 (Wiener) Housing development: transit-oriented development. o Location: Senate Enrolled o Position: Oppose • SB 92 (Blakespear) Housing development: density bonuses. o Location: Senate Enrolled o Position: Support • SB 346 (Durazo) Local agencies: transient occupancy taxes: short-term rental facilitator. o Location: Senate Enrolled o Position: Support • SB 358 (Becker) Mitigation Fee Act: mitigating vehicular traffic impacts. o Location: Senate Enrolled o Position: Oppose • SB 707 (Durazo) Open meetings: meeting and teleconference requirements. o Location: Senate Enrolled o Position: Oppose Unless Amended LOOKING FORWARD • October 13: Last day for the Governor to sign or veto bills • January 1: All legislation signed into law in 2025, unless otherwise excepted, goes into effect • January 5: The Legislature reconvenes for the second year of the 2025-26 legislative session Oct. 14, 2025 Item #2 Page 14 of 14 CALIFORNIA PUBLIC POLICY GROUP •PUBLICPOLICYGROUP.COM City of Carlsbad Legislative Subcommittee October 14, 2025 CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Sharon Gonsalves, Managing Director, California Public Policy Group CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM 2025 Legislative Calendar •January 10—Governor’s budget proposal •January 24—Last day to submit bill requests to the Office of Legislative Counsel •February 21—Bill introduction deadline •April 11-18—Legislative spring recess •Mid-May—Governor’s May budget revise •June 6—House of origin deadline •June 15—Legislature must pass FY 25-26 Budget •June 30—Governor must sign FY 25-26 Budget •September 12—Last day for the Legislature to pass bills •October 13—Last day for the Governor to sign or veto bills CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM End of Session Update: SB 423 (Gonzalez) •Transfer Tax Exemption Would prohibit local governments—including charter cities—from imposing a transactions or sales tax on the transfer of certain newly constructed residential properties. Specifically, it bars such taxes on multifamily and commercial properties for 15 years after issuance of a certificate of occupancy and on single-family homes rebuilt after disasters for 5 years. •Narrows local taxing authority already constrained by Proposition 62 (1986) and the Documentary Transfer Tax Act. •Cities that rely heavily on real property transfer taxes would lose revenues on new construction transfers during the exemption periods. •Would only become operative only if specified 2026 initiative conditions are met. Initiative 25-0004A1, Initiative 25-0005A1, and Initiative 25-0006A1 are all pending circulation and have to do with a local agency's ability to raise revenues. They will have to fail in order for this bill to go into effect. •Groundswell of opposition, delegation engagement resulted in narrowing of bill to LA only. The bill subsequently stalled and did not move forward. •However, Business organizations such as the California Chamber of Commerce and the California Business Properties Association have stated that they will bring a statewide measure back next year. CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM End of Session Update: Cap and Invest •SB 840 and AB 1207 are a pair of 2025 California bills that extend the state's Cap-and- Invest climate program and outline how its revenue will be spent, including investments in clean energy, natural resources, transit, and affordable housing. •Program funding is extended until 2045. •Directs percentages of GGRF revenues to spending plans, dedicated to clean transportation, housing and community development, clean air and water, wildfire prevention and resilience, agriculture, clean energy, and climate focused innovation. CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Legislative Update: Housing and Land Use AB 87 (Boerner) Housing development: density bonuses. This bill would specify that certain provisions of the Density Bonus Law do not require a city, county, or city and county to approve, grant a concession or incentive requiring approval of, or waive or reduce development standards otherwise applicable to, transient lodging as part of a housing development. Status: Chaptered Position: Support SB 92 (Blakespear) Housing development: density bonuses This bill would specify that a concession and incentive shall not result in a proposed project with a specified commercial floor area ratio. The bill would also specify that certain provisions of the Density Bonus Law do not require a city, county, or city and county to approve, grant a concession or incentive requiring approval of, or waive or reduce development standards otherwise applicable to, transient lodging as part of a housing development. Status: Chaptered Position: Support CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Legislative Update: Housing and Land Use AB 253 (Ward) California Residential Private Permitting Review Act: residential building permits. This bill would require a county or city to prepare a residential building permit fee schedule and post the schedule on the county’s or city’s internet website, if the county or city prescribes residential building permit fees. Status: Chaptered Position: Oppose AB 610 (Alvarez) Housing element: governmental constraints: disclosure statement. this bill would require a housing element to include potential and actual governmental constraints disclosure statement that contains, among other things, an identification of each new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, that was adopted after the due date of the previous housing element and before submittal of the current draft housing element to the department. Status:Chaptered Position: Oppose CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Legislative Update: Housing and Land Use SB 79 (Wiener) Housing development: transit-oriented development. This bill would require that a housing development project within a specified distance of a TOD stop be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with applicable requirements. The bill would provide that, for the purposes of the Housing Accountability Act, a proposed development consistent with the applicable standards of these provisions as well as applicable local objective general plan and zoning standards shall be deemed consistent, compliant, and in conformity with prescribed requirements. Status: Chaptered Position: Oppose CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Legislative Update: Housing and Land Use AB 650 (Papan) Planning and zoning: housing element: regional housing needs allocation. Existing law requires the Department of Housing and Community Development to develop a standardized reporting format for programs and actions taken pursuant to the requirement to affirmatively further fair housing. This bill would require the department to develop the above-described standardized reporting format on or before December 31, 2026. Status:Vetoed Position: Support CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Legislative Update: Housing and Land Use SB 346 (Durazo) Local agencies: transient occupancy taxes: short-term rental facilitator. This bill would authorize a local agency to enact an ordinance to require a short-term rental facilitator to report, in the form and manner prescribed by the local agency, the physical address, including 9-digit ZIP Code, of each short-term rental, as defined, during the reporting period. The bill would also authorize a local agency to request additional information when the physical address is not sufficient for the local agency to identify a specific short-term rental. The bill would authorize the local agency to impose an administrative fine or penalty for failure to file the report, and would authorize the local agency to initiate an audit of a short-term rental facilitator. The bill would require a short- term rental facilitator, in a jurisdiction that has adopted an ordinance, to include in the listing of a short-term rental any applicable local license number associated with the short-term rental and any transient occupancy tax certification issued by a local agency. Status: Chaptered Position: Support CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Legislative Update: Housing and Land Use SB 358 (Becker) Mitigation Fee Act: Vehicular Traffic Impacts Current law requires a local agency that imposes a fee on a housing development for the purpose of mitigating vehicular traffic impacts to set the rate for that fee, if the housing development satisfies all of certain prescribed characteristics, to reflect a lower rate of automobile trip generation associated with such housing developments in comparison with housing developments without the prescribed characteristics, unless the local agency adopts findings after a public hearing establishing that the housing development, even with those characteristics, would not generate fewer automobile trips than a housing development without those characteristics. This bill would require those findings to be supported by substantial evidence in the record before or as part of the housing development project approval process. Status: Chaptered Position: Oppose CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Legislative Update: Public Safety AB 379 (Schultz) Crimes: prostitution. This bill would make an increased punishment applicable if the solicited minor was more than 3 years younger than the defendant at the time of the offense. The bill would make it a misdemeanor for any person to loiter in any public place with the intent to purchase commercial sex. The bill would make any person who violates that crime or who commits prostitution in exchange for providing compensation, money, or anything of value to the other person subject to an additional fine of $1,000, and would establish the Survivor Support Fund and require that additional fine be deposited in the fund. The bill would require the California Victim Compensation Board to establish a grant program to provide grants to community-based organizations that provide direct services and outreach to victims of sex trafficking and exploitation, and would, upon appropriation by the Legislature, authorize moneys in the Survivor Support Fund to be used for the purposes of that grant program. Status: Chaptered Position: Support CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Legislative Update: Environment and Climate AB 996 (Pellerin) Public Resources: sea level rise plans. This bill would authorize the applicable commission, when approving a local coastal plan or an amendment to a local coastal plan, to deem existing sea level rise information or plans prepared by a local government to satisfy the content requirements for a sea level rise plan. The bill would provide that local governments are encouraged, on or before January 1, 2029, to consult with the California Coastal Commission, in a voluntary early consultation, regarding sea level rise plans in the preparation of a local coastal program or an amendment to a local coastal program. Status: Chaptered Position: Support CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Legislative Update: Health and Human Services AB 492 (Valencia) Alcohol and drug programs: licensing. Would require the State Department of Health Care Services, whenever it issues a license to operate an alcohol or other drug recovery or treatment facility, to concurrently provide written notification of the issuance of the license to the city or county in which the facility is located. The bill would require the notice to include the name and mailing address of the licensee and the location of the facility. Status: Chaptered Position: Support AB 424 (Davies) Alcohol and other drug programs: complaints. This bill would, when the department receives a complaint against a licensed alcohol or other drug recovery or treatment facility, or a complaint alleging that a facility is unlawfully operating without a license, from a member of the public, require the department to provide, within 10 days of the date of the complaint, notice to the person filing the complaint that the complaint has been received and to provide, upon closing the complaint, notice to the person filing the complaint that the complaint has been closed and whether the department found the facility to be in violation of the provisions governing facility licensure and regulation. Status: Chaptered Position: Support CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Legislative Update: Brown Act SB 707 (Durazo) Open meetings: meeting and teleconference requirements. •Agenda translation (digital ok) and posting requirements if language is spoken by 20% + of population—explicit indemnity language included to ensure local agencies cannot be sued for digital translation. •Codifies subsidiary body remote meetings •Increases flexibility for remote meeting participation •Codifies two-way telephonic or audiovisual platforms Status: Chaptered Position: Oppose Unless Amended CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Looking Forward October– December •Deep dive meeting with each department to revisit platform •Develop and pitch legislative proposals for 2026 •End of Year Report CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM Questions/Discussion Thank You! CALIFORNIA PUBLIC POLICY GROUP • PUBLICPOLICYGROUP.COM