This month’s Government Relations Update video highlights crucial legislative developments for California’s manufacturing sector.
Both the Assembly and Senate have a huge deadline on Friday, May 24, 2024, to pass bills introduced in their house of origin. In the days leading up to this deadline, both houses are intensively reviewing and voting on various bills. This legislative activity is critical for manufacturers to monitor, as the outcomes will shape the regulatory and operational landscape for the sector.
A significant point of concern for California’s manufacturing industry is Senate Bill 1321, spearheaded by Senator Aisha Wahab. This bill proposes an overhaul of the Employment Training Panel (ETP), which has been instrumental in providing workforce development funding. The ETP has allocated over $26.7 million, benefiting more than 37,000 employees in the manufacturing sector. However, the proposed changes threaten to dismantle this vital program, jeopardizing sustainable jobs and career pathways. The California Manufacturers & Technology Association (CMTA) identifies this bill as a Manufacturing Breaker Bill as it is a potential disruptor to the stability and growth of the industry.
Another concerning bill for California’s manufacturers is Assembly Bill 2083, led by Assemblymember Marc Berman, which mandates the California Energy Commission to assess the feasibility of reducing greenhouse gas emissions from industrial heat applications by 85% below 1990 levels by 2045. While the bill aims for significant environmental advancements, its current form is flawed due to its narrow focus on zero-emission and electrified equipment, excluding more cost-effective and technologically viable alternatives like hydrogen fuel and carbon capture. AB 2083 is an attempt to force the California industry away from natural gas in a manner that is not cost-effective or technologically possible at this time. Cost is even more concerning given that the legislature is considering eliminating R&D tax credits and minimizing the Net operating losses for businesses as part of the budget due to California’s most recent updated budget announcement. CMTA identifies AB 2083 as a Manufacturing Breaker Bill.