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We hope you find the following articles, reports and insights, which are all curated for construction professionals, interesting and valuable for you. Either directly or indirectly, they affect the construction world in California. 


CA Launches Selective EV Truck Rebate – California Governor Gavin Newsom announced last month a new rebate program for zero-emission truck and bus purchases. The rebate program is somewhat narrow and only applies to select dealerships that participate in the California Clean Fuel Reward (CCFR) program or the Hybrid and Zero-Emission Truck and Voucher Incentive Project (HVIP) network. The rebate program is set to begin on June 26 and Newsom promised $1 billion in rebates through 2030. You can search the HVIP network by clicking this link and explore the CCFR program by clicking this one.


EV Fee Clash in Congress – Speaking of electric vehicles, the online journal EV SHIFT published an article last month that covers a policy disagreement in Congress. The issue is whether electric vehicle owners should pay an additional fee under the federal highway reauthorization bill. As you likely know, the federal bill is required to authorize the federal gasoline excise tax, which funds transportation projects across the country. EVs, by their nature, do not pay the federal gas tax so Congress is considering the extra fee. How that would be assessed is not known. In California, EV owners pay the Road Improvement Fee (RIF) on their registration renewal. That amount is currently $121 and is adjusted for inflation. The revenue from the RIF, just like funds from the gas tax, are protected by Article XIX of the California Constitution. The latest information from Congress is that the House version of the reauthorization bill contains a $130 annual fee for EVs. The Senate has not yet approved the bill so it is not yet known if the fee will be included in the final reauthorization version.


Clash of Environmentalists and Affordability Industry insiders have seen the writing on the wall for decades. Environmental policies drive up costs. Requiring VMT mitigation for new development, emission standards for on- and off-road vehicles, clean fuel programs, solar panels on new homes, cap-and-trade, and many others – all of them add costs and decrease affordability in California. CalMatters, a “mainstream” online journal that covers state politics, is shedding light on the clash between environmental programs and their costly consequences. Click here for the article.


Know Your Opposition: Behind the Environmental Curtain – Speaking of the environmental movement, environmentalists have been deeply concerned about climate policy since the election of President Trump. Now it seems their concern is centered in the heart of their movement – the state of California. An article from Streetsblog, which portrays itself as a “livable streets movement, which aims to reduce reliance on private automobiles,” rings the alarm that California’s aggressive environmental policies may in fact be “aspirational rather than operational.” This is a good look into the internal grief the environmentalist movement is currently experiencing.


OR Voters say No to More Infrastructure FundingIt’s a tea leaf for California insiders looking to augment or bolster transportation funding in California. Last month, Oregon voters rejected a statewide funding plan that would have created $4.3 billion in new revenue over 10 years. According to the American Road and Transportation Builders Association, the plan would have “increased the state gas tax by six cents per gallon, raised vehicle title and registration fees, and temporarily increased the state payroll tax to support transit funding.” Voter registration in Oregon is 31.8% Democrat, 23.7% Republican, and 37.3% non-affiliated. The proposal, Oregon Referendum 120, overwhelmingly failed with 16.98% voting Yes and 83.02% voting no.


Federal Partners Resist “Gas Tax Holiday” – Led by SCCA federal partner the American Road and Transportation Builders Association (ARTBA), a strong coalition of both labor and management sent a letter to Congress expressing their opposition to any proposal to suspend the federal gas tax. The letter referenced an analysis of several states that attempted to do so only to see them fail. No relief for motorists was ever realized. The global supply chain for fuel is simply too complex for quick and easy solutions such as gas tax holidays.


Immunity to Gas Tax SpikesA Los Angeles motorist showed a tremendous amount of moxie when he was quoted in USA Today stating “I think we’re immune” when data showing the notorious Los Angeles gridlock actually increased during the brief conflict between Iran, Israel and the United States. Data from Caltrans analyzed the traffic patterns on Interstates 405, 10, and 5. According to the report, data from several decades shows “drivers are either unwilling or unable to change their habits even when prices spike.”


Congress Approves LA28 Funding – L.A. Metro could be the recipient of $875 million in federal dollars if Congressional legislation is passed. The funding is intended to bolster Los Angeles’ transit system, including the lease of 1,700 buses, the construction of three temporary transit depots, and the creation of dedicated traffic lanes.


BLS on Construction Employment – If you like data, this report is for you. The United States Bureau of Labor Statistics released a report that covers construction and extraction occupations in the country. It found there are 6.4 million in both the construction and extraction fields with 1.1 million laborers leading all other trades.


*Staff and consultants from the Southern California Contractors Association prepared and produced this document. SCCA Communications Specialist Britney Jackson, SCCA Government Affairs Manager Clayton Miller, and SCCA Legislative Lobbyist Todd Bloomstine contributed to its creation. Please contact info@sccaweb.org for further information. Labor and regulatory matters may vary and are subject to change.*

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