To: Board of Supervisors
Department or Agency Name(s): County Administrator’s Office
Staff Name and Phone Number: Marissa Montenegro 707-565-2431
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
2023-2024 State and Federal Legislative Platform and End-of-Session Report
End
Recommended Action:
Recommended action
A) Receive Legislative and Intergovernmental Affairs End of Session Report
B) Review and Approve Draft 2023-2024 State and Federal Legislative Platform
end
Executive Summary:
This item provides and update to your Board on the 2021-2022 legislative session in addition to highlighting opportunities to further county strategic priorities through 2023 legislative opportunities. This item also requests Board review and approval of the 2023-2024 State and Federal Legislative Platform.
Discussion:
State Legislative Session Recap
The State Legislature adjourned its 2021-22 Legislative Session on September 1, 2022 with an unprecedented budget surplus. Several major bills were passed and signed into law during the past year, including the Governor’s CARE Court proposal and the Governor’s Climate Package. Governor Newsom signed 997 bills and vetoed 169 of the 1,166 bills that moved forward for signature.
2021-2022 Significant State Legislation:
Housing
• AB-2011 Affordable Housing and High Road Jobs Act of 2022.(2021-2022)
• SB-6 Local planning: housing: commercial zones.(2021-2022)
Homelessness
• SB-1338 Community Assistance, Recovery, and Empowerment (CARE) Court Program.(2021-2022)
• AB-179 Budget Act of 2022.(2021-2022)
Climate
• SB-846 Diablo Canyon powerplant: extension of operations.(2021-2022)
• SB-905 Carbon sequestration: Carbon Capture, Removal, Utilization, and Storage Program.(2021-2022)
• SB-1020 Clean Energy, Jobs, and Affordability Act of 2022.(2021-2022)
• SB-1137 Oil and gas: operations: location restrictions: notice of intention: health protection zone: sensitive receptors.(2021-2022)
• AB-1279 The California Climate Crisis Act.(2021-2022)
• AB-2133 California Global Warming Solutions Act of 2006: emissions limit.(2021-2022)
o Failed on Senate Floor. Would have increased the state's 2030 GHG goals from 40% below 1990 levels to 55% below 1990 levels.
2022-23 State Budget
On June 30, Governor Gavin Newsom enacted the $308 billion state budget following an agreement with the legislature. The state budget includes $128.6 billion in total funding for K-12 education and a $17 billion broad-based relief package. The enacted budget reflects $37.2 billion in “budget resiliency” budgetary reserves and surpluses.
Due to recent market declines and overall economic volatility, the budget allocates the vast majority of the discretionary surplus to one-time investments that can be adjusted in future years, if needed. The budget continues building reserves, eliminating budgetary debt, reducing retirement liabilities to maintain structurally balanced budgets over the long term. These budget strategies also ensure that the state meets its constitutional requirements. The State Appropriations Limit, or Gann Limit, caps the amount of revenues from taxes that can be appropriated by the state. Making ongoing spending commitments would make it more difficult for the state to meet its constitutional obligations, even if the economy does recover.
2022-23 Significant State Budget Items:
• Broad-Based Relief for Californians - $17.2 billion in assistance to California families who are facing economic pressures and heightened costs of living.
• Climate - $100 million for Climate Innovation Grants at the California Energy Commission.
• Nature Based Solutions - Adopts $594 million for Nature Based Solutions to climate change.
• Water - Specifies that $75 million provided in the budget to the Office of Business and Economic Development is for Small Business Drought Relief Grants, with any unspent funds being allowed to be repurposed for semiconductor research, development, or manufacturing.
• Energy - $1.197 billion for the California Arrearage Payment Program, with $239.4 million set aside for customers of POUs.
• Wildfire - An additional $100 million for wildfire prevention.
• Hydrogen - $100 million to support the Green Hydrogen Program at the California Energy Commission (CEC).
• Decarbonization - A new $90 million Industrial Grid Support and Decarbonization Program for eligible facilities that include manufacturing, production and processing facilities like cement, metals, glass, electronics, etc.
• Renewables - $45 million to support Offshore Wind Infrastructure, and $126 million to provide incentives for long-duration storage projects.
• Extreme Heat - $17 million for Green Schoolyards at CalFIRE as part of Urban Forestry.
• Salt Sea / Lithium - $200 million for energy transmission projects, with the first round supporting the Salton Sea region.
• ZEV - $235 million to support zero emission vehicles and infrastructure, with $180 million to support Clean Cars 4 All and other equity projects, $15 million to support fueling infrastructure grants, and $40 million to support implementation of CARBs Commercial Harbor Craft regulations.
• Department of Community Services and Development - $15 million Greenhouse Gas Reduction Fund for the Farmworker Low Income Weatherization Program at the Department of Community Services & Development.
• Parks - $25 million for Outdoor Equity Grants at the Department of Parks and Recreation. $75 million to the Department of Parks and Recreation (Parks) for the Statewide Parks Program.
• Agriculture - Clarifying changes to budget bill language related to the Agricultural Land Equity Task Force at the Office of Planning and Research.
• Research and Development - An additional $135 million for Research and Development - $90 million to provide climate innovation research and development grants to companies headquartered in CA.
Federal Legislative Session Recap
Significant legislation passed in the 117th Congress:
The Consolidated Appropriations Act of 2023
On December 29, 2022, President Biden signed the $1.7 trillion Fiscal Year (FY) 2023 omnibus appropriations bill to fund the federal government through September 30, 2023. Enactment of the omnibus followed a series of Continuing Resolutions (CR) to fund the federal government and avert a government shutdown since the beginning of the federal fiscal year on October 1, 2022.
The FY 2023 omnibus includes several key investments of importance to counties detailed in this report. These include, but are not limited to, full funding for the Payments in Lieu of Taxes (PILT) program and significantly invests in the RECOMPETE pilot program and technology hubs authorized by the bipartisan CHIPS and Science Act. These programs and others funded by the bill, including a $550 million increase in wildland fire suppression, will enable counties to provide critical services and plan for economic sustainability and growth in 2023.
The final omnibus represents a total of $1.7 trillion in discretionary spending across all 12 spending bills. Of this total amount, $773 billion is in non-defense discretionary spending, an increase of 5.9 percent over the FY 2022 level and $858 billion is in defense discretionary spending, an increase of 9.7 percent.
Inflation Reduction Act
On August 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law. The IRA aims to reduce the federal deficit, cut greenhouse gas emissions and lower health insurance related costs while increasing health insurance coverage for vulnerable Americans.
The IRA, which is a product of months-long congressional negotiations following the passage of the Build Back Better Act (BBBA) in the U.S. House of Representatives last year, would reduce federal deficits by $102 billion between 2022 and 2031 - the lifespan of the law- according to estimates by the nonpartisan Congressional Budget Office (CBO).
The IRA seeks to reduce greenhouse gas emissions by 40 percent below 2005 levels by 2030. It does so by making significant investments in climate and environment programs and providing tax incentives to boost the development and deployment of clean energy. These investments include multiple direct funding opportunities for counties to save money while reducing emissions.
The law also includes several measures related to healthcare.
Infrastructure Investment and Jobs Act (P.L. 117-58) or Bipartisan Infrastructure Law (BIL)
On November 15, 2021, President Biden enacted the five-year, $973 billion Bipartisan Infrastructure Law (BIL), formally known as the Infrastructure Investment and Jobs Act (P.L. 117-58). Following the end of the federal legislature’s responsibilities to develop and pass the legislation comes the role of covered federal agencies to implement the law at the federal, state and local levels.
The BIL provides $973 billion over five years from FY 2022 through FY 2026, including $550 billion in new investments for all modes of transportation, water, power and energy, environmental remediation, public lands, broadband and resilience. In addition to providing authorizations for a wide variety of programs, the BIL also makes advanced appropriations over a number of years to several federal agencies. Typically, federal appropriations are made over one fiscal year by an annual appropriations act or an omnibus.
American Rescue Plan Act of 2021 (ARPA) and the Coronavirus State and Local Fiscal Recovery Fund
On March 11, 2021, President Joe Biden signed the American Rescue Plan Act of 2021 (H.R. 1319) into law. The $1.9 trillion package, based on President Biden’s American Rescue Plan, is intended to combat the COVID-19 pandemic, including public health and economic impacts.
As part of the American Rescue Plan Act of 2021, the $362 billion Coronavirus State and Local Fiscal Recovery Fund provides local fiscal aid to support urgent COVID-19 response efforts, cover increased expenditures, replenish lost revenue and mitigate economic harm from the COVID-19 pandemic.
Federal 2023 Legislative Opportunities
The 118th Congress under Republican leadership is expected to pursue an aggressive oversight agenda. President Biden’s bipartisan dealmaking abilities will face a tough test as the GOP positions itself for 2024. However, lawmakers will still need to work together to reach deals on the debt ceiling, government funding, farm bill reauthorization, immigration reform, and other critical federal policy issues. While it is impossible to forecast all that might be taken up in the year ahead, and the legislative and regulatory processes are both surely dynamic, the following is a summary of some of the relevant federal activities that are due for action in 2023.
Farm Bill Reauthorization
• The farm bill - an omnibus, multiyear law that governs an array of agricultural and food programs - is due for reauthorization in 2023. Without reauthorization, some farm bill programs would expire, such as the nutrition assistance/SNAP and farm commodity support programs.
• The legislation serves as an opportunity to expand or establish programs that could provide crop insurance, improve access to healthy food, protect the food supply, and fund rural development initiatives.
Expansion of the Low-Income Housing Tax Credit (LIHTC) Program
• The Affordable Housing Credit Improvement Act, legislation introduced in the 116th and 117th Congresses, would expand and preserve LIHTC.
• Economic Development Administration (EDA) Reauthorization
• The Department of Commerce’s Economic Development Administration (EDA) is also due for reauthorization by Congress in 2023, providing a chance to develop new programs within the Agency.
• Key areas for potential reforms within EDA include increased EDA funding for the Public Works program and expansion of the EDA Disaster and Recovery Relief eligibility.
Energy and Environment
• Reauthorization of the Harmful Algal Bloom and Hypoxia Research and Control Act (HABHRCA)
• The Harmful Algal Bloom and Hypoxia Research and Control Act (HABHRCA) has not been reauthorized since 2017 and is due for new guidance.
• New authorizing language to direct the Environmental Protection Agency (EPA) to collaborate with the National Oceanic and Atmospheric Administration (NOAA) to identify nutrient reduction strategies and scalable Harmful Algal Bloom mitigation processes would be beneficial to coastal regions nationwide.
WOTUS Rule Implementation
• The Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers (USACE) published a final rule to revise the definition of “Waters of the United States" (WOTUS) on January 18, 2023, restoring several protections for waterways and wetlands from the pre-2015 definition of the term.
• Notably, the updated regulation breaks from previous WOTUS definitions under the Obama and Trump administrations in its flexibility for state jurisdiction. The rule will take effect on March 20, 2023.
Implementing Climate Resiliency Programs
• Recent drought conditions and winter storms in California, clearly illustrate the serious threat from extreme weather and natural disasters related to climate change facing the County.
• Both the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) included provisions authorizing or funding various resiliency programs, such as the Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation (PROTECT) program, the Building Resilient Infrastructure and Communities (BRIC) program, and a $2.6 billion appropriation to the National Oceanic and Atmospheric Administration (NOAA) to restore and protect coastal ecosystems.
• 2023 will be a critical year for implementing these programs and distributing funding to local entities for planning and developing resilient strategies and physical infrastructure.
Responsible Federal Action to Address PFAS Contamination
• In September 2022, the EPA published a proposed rule to designate two types of per- and polyfluoroalkyl substances (PFAS) as hazardous under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Designating PFAS as hazardous under CERCLA poses multiple implications for counties, particularly around reporting and cleanup of these substances.
• As the rulemaking process is still underway, NACo and other groups support efforts by the EPA and other federal agencies to study the health and environmental impacts of PFAS compounds but urge the EPA to work with local government entities to determine the best way to address PFAS in the environment.
Comprehensive Immigration Reform
• Immigration reform negotiations have been ongoing for nearly a decade. While most deem it unlikely, Congress could put aside political differences and come to agreement on meaningful immigration legislation that might help counties work with federal partners on immigration issues while serving the needs of all residents and improve and streamline the executive branch’s management of the legal immigration system.
Reauthorization of the Workforce Innovation and Opportunity Act (WIOA)
• The Workforce Innovation and Opportunity Act (WIOA) was signed into law in 2014 as a key source of federal funding for workforce development activities and is due for reauthorization legislation.
• During the 117th Congress, legislation to reauthorize WIOA passed the House but was not signed into law. That bill would have reauthorized the law’s programs through FY2028 and would expand workforce investment, vocational rehabilitation, employment, training, and literacy programs for eligible individuals falling under WIOA.
Implementation of the 988 Mental Health Crisis Lifeline
• The new 988 national suicide prevention and mental health crisis lifeline was launched in July 2022 to provide resources to individuals experiencing mental health emergencies. However, it is crucial to ensure that federal funding continues to flow to state and local governments to develop the necessary infrastructure to sustain the program, including call centers, mobile crisis units, and crisis stabilizations programs.
Efforts to Stop the Illegal Trafficking of Fentanyl
• Fentanyl has emerged as the leading opioid in drug overdose deaths and has been found laced in other common drugs to boost their potency. Even with an increased federal focus on seizing the drug, U.S. drug enforcement agents say it has been nearly impossible to stop fentanyl trafficking at the Mexican border.
• Because fentanyl is able to reach municipalities across the country, Congress should provide federal, state and local law enforcement additional resources and technical assistance needed to address this crisis.
Federal Broadband Expansion Efforts
• The Commerce Department is underway in its implementation of broadband deployment policies authorized through the Bipartisan Infrastructure Law (BIL). The law established the Broadband Equity, Access, and Deployment (BEAD) Program to distributing grant funding for broadband planning, deployment, mapping, equity, and adoption activities.
• BEAD funding distribution is dependent upon the completion of the Federal Communications Commission’s (FCC) broadband data mapping, which will be used to determine the number of unserved locations in every State.
Permanent Authorization for Affordable Connectivity Program (ACP)
• Congress authorized the Affordable Connectivity Program (ACP) as part of BIL to subsidize monthly internet access and one-time equipment purchases for eligible low-income households.
• Groups including NACo urge Congress to permanently authorize and fund the ACP to ensure that low-income county residents can continue to afford internet service while holding participating Internet Service Providers accountable for providing appropriate levels of quality, affordable service to eligible households.
Congressionally Directed Spending (Earmarks)
In 2021, Congressionally Directed Spending or “earmarks” returned after a 10-year earmark moratorium. Earmarks, are small grants to programs and projects in congressional districts and Republicans recently voted to keep earmarks for the 118th Congress.
Sonoma County has been successful in capturing federal funding for local community programs over the last two years and plans to submit additional requests later this year. As in prior years, CAO staff will provide guidelines and request departmental proposals to prioritize and submit through the federal process.
2022-2023 Legislative Platform
Upon completion of each two-year legislative cycle, the Board of supervisors adopts a countrywide legislative platform to provide direction to staff and legislative advocates in seeking resources and policy support for County priorities.
In determining legislative priorities, staff queried over 34 departments and agencies to determine general and specific needs and then met with the County’s legislative advocates to review submittals and assess opportunities and strategies.
Throughout this project, staff have attempted alignment with the County’s five-year strategic plan and your Board’s direction.
Staff recommend the following priorities for the Sonoma County 2023-2024 State and Federal Legislative Platform:
• Disaster Response Preparedness and Recovery
• Affordable Housing and Homelessness
• Health: Public Health and Behavioral Health
• Climate Action
• Transportation and Infrastructure
• Tribal Affairs
Staff request to return to your Board in March with a final recommendation based on your Board’s input.
Strategic Plan:
This item directly supports the County’s Five-year Strategic Plan.
Prior Board Actions:
March 7, 2021 Board Approved 2021-2022 Legislative Platform.
Fiscal Summary
Narrative Explanation of Fiscal Impacts:
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Narrative Explanation of Staffing Impacts (If Required):
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Attachments:
None.
Related Items “On File” with the Clerk of the Board:
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