CFCA GOV. RELATIONS ROUNDUP

LOCAL ISSUES
Gas Station Bans
• 2024 New Additions: City of Sacramento & City of Pinole
o Total: 15 bans or moratoriums passed
Tobacco Ordinances
• Common issues: caps on licenses/setback requirements, bans on e-cigarettes, bans on discounts/couponing, minimum price requirements, minimum packaging size requirements

STATE LEGISLATURE
Regular Session
• AB 3218 (Wood) –Unflavored Tobacco Directory & Expanded Definition of Flavored Tobacco – SIGNED
• SB 219 (Weiner) 6-Month Delay on CARB Rulemaking– Scope 1,2,3 Emissions Reporting & Climate Related Financial Risk Reporting – SIGNED
• SB 399 (Wahab) Employee Communications – Political Influence – SIGNED
• SB 961 (Weiner) Speed Limit Notifier – 10 MPH Over Limit – VETOED
• SB 1497 (Menjivar) Polluters Pay Climate Cost Recovery Act of 2024 - DIED
• SB 1116 (Portantino) Unemployment Insurance for Striking Workers - DIED
• AB 2751 (Haney) Restricts Contacting Employees Outside of Work Hours- DIED
Special Session
• ABX2-1 (Hart) – Refiner Minimum Reserve Inventories of Refined Products and Maintenance Schedules – SIGNED
• ABX2-9 (Petrie Norris) – E15 CARB Multimedia Report to be Completed by July 1, 2025 – DIED

REGULATORY ISSUES
California Energy Commission
• Price Gouging Penalty
o Update to Daily Spot Market Transaction Reporting Requirements - PASSED
o Terminal Position Holder Reports - PASSED
o PENDING: 3-Month Projection Reports for Refiners & Marketers
o PENDING: Gross Profit Margin Cap on Refiners
o PENDING: Minimum Storage and Resupply Requirements for Refiners and Terminals
California Air Resources Board
• Zero Emissions Forklift Rule - PASSED
• Low Carbon Fuel Standard Amendments – PASSED
• PENDING: Cap-and-Trade Amendments
• PENDING: Scope 1, 2, 3 Emissions Reporting
• PENDING: Climate Related Financial Risk Reporting
California Department of Social Services
• EBT Chip Card Requirement – Beginning January 2025

BALLOT PROPOSITIONS
• Proposition 36 – Crime reform – PASSED
• Proposition 32 - $18 Minimum Wage - FAILED

OTHER NOTABLE ISSUES
• Minimum Wage Increase – January 1, 2025
o $16.50/hour – Hourly Employees
o $68,640.00 – Exempt Employees
• REMINDER:
o Beverage Container Recycling: CA Redemption Value (CRV)
 Exemption Begins January 1, 2025
 Store is Under 5,000 Square Feet OR
 Store Makes Gross Annual Sales of Less than $1.5 million (Excluding Fuel Sales)

Print this page for your records

LOCAL ISSUES
• Gas station bans continue to proliferate among city councils.
o Sonoma County (unincorporated areas) adopted a ban, Town of Yountville, Angels Camp and Fairfax all proposed bans.
• Moratoriums or caps on additional retail tobacco licenses are being considered by councils.
o City of Vista is the latest to consider a cap.

STATE LEGISLATURE
• Reporting Bills
o SBX1-2 (Skinner) Price Gouging Penalty: SIGNED: March 26, 2023
 Significant reporting requirements for major marketers
 Passed implementation to CEC and CDTFA
o SB 253 (Weiner) Scope 1, 2, and 3 Emissions: SIGNED
 Applies to all CA business entities with total annual revenues exceeding $1 billion; by 2026
o SB 261 (Stern) Climate Related Financial Risk Reporting: SIGNED
 Applies to all CA business entities with total annual revenues exceeding $500 million; by Dec 31, 2024
• Ban Bills
o AB 1614 (Gabriel) Study to phase out gas stations: VETOED
o AB 627 (Jackson) Heavy Duty Truck ban in Riverside & San Bernardino counties: KILLED
o AB 418 (Gabriel) “Skittles Ban”: SIGNED
o SB 728 (Limon) Plastic Gift Card Ban: VETOED
• Labor Bills
o SB 616 (Gonzalez) 5 Days Paid Sick Leave for all employers: SIGNED
o AB 1228 (Holden) Fast Food Act Agreement: SIGNED
 $20 minimum wage for Fast Food Chain employees beginning April 1, 2024
 Removed AB 257 Referendum from 2024 Ballot
o SB 553 (Cortese) Workplace Violence Prevention Plan: SIGNED
• Major CFCA Win
o CFCA championed AB 1115 (Papan), which was signed into law, and will extend the underground storage tank fund for an additional 10 years to 2036. CFCA worked diligently this Legislative Session to get this bill introduced and across the finish line. The fund serves as a critical financial assurance mechanism for all our members who own underground storage tanks. Should a leak be discovered, the fund can be utilized to cover clean-up costs. Without the fund, even if a leak is never present, our members would have had to contend with extremely costly insurance premiums to cover their tanks. This was a top legislative priority CFCA supported and championed through the Legislature.

CA AIR RESOURCES BOARD
• CARB adopts Advanced Clean Fleets regulation on April 27, 2023
o Internal combustion engine ban for heavy duty vehicles
o High priority fleets - $50 million or more in gross annual revenues or 50+ heavy duty vehicles
 Model Year Schedule: Phase in begins in 2024 for new purchases; By 2025 remove ICE vehicles by end of useful life.
 ZEV Milestone Option: Meet ZEV targets as a percentage of total fleet.

OTHER NOTABLE ISSUES
• Proposition 65 Notice of Violations spreading across the state.
• 2024 Minimum Wage Increase
o $16 minimum wage starts January 1, 2024
 Exempt salary: $66,560

LOCAL ISSUES
• Gas station bans continue to spread
o LA City Council is the most recent, and the largest city, to explore the potential for a gas station ban
o Previously was mostly contained in the North Bay Area

STATE LEGISLATURE
• Governor Newsom continues to push an aggressive climate bill package in the State Legislature
o 7 bills of his climate package during the 2022 session were passed
o AB 1279: Climate Crisis Act - Requires the State to reduce emissions by at least 85% below the 1990 level no later than 2045.
o AB 1757: Requires the State determine range of targets for natural carbon sequestration, and for nature-based climate solutions.
o AB 2438: Requires various state transportation programs to incorporate strategies from the Climate Action Plan for Transportation Infrastructure (CAPTI) into program guidelines
o SB 905: Establishes a framework for carbon capture/storage.
o SB 1020: Establishes interim targets to the statewide 100% clean energy policy: 90% clean energy electricity by 2035, 95% by 2040.
o SB 1137: Prevents construction of new oil wells within 3,200 feet of sensitive sites including (among others) schools, hospitals and homes.
o SB 1314: Prohibits the use of carbon capture systems that involve enhanced oil recovery.
• AB 257, by Assemblymember Holden, was also signed into law by Governor Newsom. AB 257 establishes the Fast Food Council composed of franchisees and franchisors, workers, and representatives of the administration. It also authorizes the Council to establish minimum employment standards on wages and working conditions. The Council cannot raise minimum wage above $22 per hour in 2023.
• Senate Pro Tem Toni Atkins authored SB 1013, which was signed into law and will provide for reform of CalRecycle’s Beverage Container Recycling requirements by exempting a dealer that has demonstrated to the department that the dealer has gross annual sales of less than $1,500,000, excluding sales of fuel, or is less than 5,000 square feet.
o These exemptions to dealers go into effect on January 1, 2025.

CA AIR RESOURCES BOARD
• CARB adopted the Advanced Clean Cars II regulation – Governor Newsom’s 2035 Internal Combustion Engine ban.
o Requires manufacturers to meet fleet emissions averages aside from ZEV.
o Plug-in Hybrids will increase quickly.
o ICE Vehicles can still be sold used, registered at DMV, and purchased in other states.
• CARB held a public hearing to consider the proposed Advanced Clean Fleets regulation.
o Similar to Advanced Clean Cars II, but will ban the sale of medium and heavy duty Internal Combustion Engine vehicles by 2045
o Phased-in” approach
 High Priority” Fleets: 50+ trucks and $50 million in revenue
 By 2024 - Fleet additions must be ZEV

PROPS ON BALLOT
• Proposition 31, a referendum on the flavored tobacco ban, will be heading to voters on their November General Election ballots
o If the referendum is not successful, retailers must pull all inventory from their shelves after the vote is certified by the Secretary of State.
o CFCA joined the coalition to vote NO on Prop 31
• Proposition 30 would increase the tax on personal income above $2 million by 1.75%, and dedicate the funds to zero-emission vehicles subsidies, zero-emissions infrastructure, and wildfire suppression and prevention programs.
o This will increase costs across the state, and limit innovation for other technologies and solutions that help to reduce emissions. It is also duplicative of existing state and federal funding mechanisms that are dedicated to these projects.
o CFCA joined the coalition to vote NO on Prop 30.

2023 PRIORITIES
• Top Legislative Priorities
o Introduce a bill to extend the sunset date of the Underground Storage Tank cleanup fund, which is currently set to sunset on January 1, 2026.

LEGISLATIVE & REGULATORY
• Filed lawsuit against the City of San Jose regarding Hazard Pay mandates for franchisees, the ordinance was changed to exempt them immediately. This led to other jurisdictions copying this exemption language, further protecting those operators.
• Combatting efforts to broaden the scope of the Underground Storage Tank Cleanup Fund to include brownfield redevelopment at non-petroleum sites. AB753
• Fighting for a square footage based exemption from CalRecycle can and bottle redemption program and supporting other program efficiencies.
• Continuous engagement in budget negotiations surrounding Zero Emission Vehicle and infrastructure funding. Our industry must be provided the same funding as the three large utility companies.
• Ongoing fight against codifying Governor Newsom’s Executive Order banning the sale of Internal Combustion Engines (ICE) and removing powerful mitigation tools such as carbon capture and sequestration (CCS).
• Over 12 months of meetings with the Air Resources Board regarding proposed amendments to the Heavy-Duty Inspection and Maintenance (HDIM) program. These changes include DMV registration holds for non-compliance, roadside monitoring of On-Board Diagnostics (OBD) devices, and duplicative reporting and fees.
• COVID issues including: Paycheck Protection Program deductibility, paid sick leave, CalOSHA rules.
• Closely watching the implementation of recent changes to B20 regulations, mandating a minimum of 55% renewable diesel if there is no additive present. All additives but one were decertified leading to scarcity and high prices.
• Wildfire efforts began early this year, worsening the symptoms of the driver shortage. CFCA has requested waivers for hours-of-services and per-axle weight restrictions.

LEGISLATIVE & REGULATORY
• Extended Replacing, Removing, or Upgrading Underground Storage Tanks (RUST) Program to removal deadline for single walled tanks and piping - this was a CFCA drafted bill
• Only group to oppose all proposed increases to tobacco products, including e-cigarettes
• Fought tobacco retail bans in 106 localities throughout California
• Early donor and partner of the No on Prop 15 campaign to defend Prop 13 property tax protections
• PAC Committee members met with multiple candidates, including a site visit
• Private Attorneys General Act (PAGA) reform meetings with 7 legislators in conjunction with Californians Against Lawsuit Abuse (CALA)
• 5 meetings with members of Congress through NACS partnership
• Division of Measurement Standards (DMS) rescinded regulatory notice causing widespread issues after CFCA meeting
• Ongoing meetings and dialogue with Newsom administration regarding Internal Combustion Engine (ICE) ban Executive Order, including internal working groups on electric vehicles, hydrogen fueling, and biofuels
• Largest total PAC contributions in CFCA history

COVID-19 RESPONSE
• Daily updates to membership on lockdown measures and other government action
• Labor and insurance webinars for members to ensure they meet all requirements under COVID rules
• Won suspension of CalRecycle beverage container take-back program due to COVID-19

ASSOCIATION HIGHLIGHTS
• PMAA and NACS presentations on federal legislation and politics
• CFCA members raised thousands of dollars for PMAA PAC
• Continuous meetings with other national and state associations in COVID response, liability protections, and response to California Executive Order banning Internal Combustion Engine (ICE) passenger vehicle sales
• Future Fuels Summit: Electric Vehicles, Hydrogen, and Biofuels