Air Board approves costly fuel amendments; governor calls special session on Trump

Welcome to the November 11-15 edition of the NFIB California Main Street Minute from your small-business advocacy team in Sacramento.

Air Board Votes to Move Ahead on LCFS Amendments

• At its Friday (November 8) meeting, the California Air Resources Board (CARB) voted to approve its amendments to the state’s Low Carbon Fuel Standard, but not before getting a day- and evening-long earful of testimony in opposition, either in person or by online submission, including NFIB’s.

• “I want to be clear that we are not opposed to the greenhouse gas emissions goals of the state, but the choice today is not one of endorsing a zero-emissions, electrification of the state, it’s one of subsidizing bio-fuels,” testified NFIB California Legislative Director Tim Taylor.

• “Originally CARB had indicated that these amendments could increase prices at the pump by some 47 cents a gallon. Later, CARB revised that number, which seems to have been confirmed today, and indicated that the cost increase may be negligible. What changed?  What is the new methodology or inputs that account for that revision?

• “Currently, California pays the highest prices for gasoline at the pump—about a $1.69 over the national average. Tacking on an additional 50 cents to that number would be crushing to small businesses.” Click here to read Taylor’s entire testimony.

• Another opponent of the amendments was CARB Board member and former Democratic state Sen. Dean Florez, who penned a guest editorial in CalMatters the day before the meeting forewarning, “After evaluating the economic, environmental and social implications, I cannot, in good conscience, support them.

• “For California’s climate policies to succeed, they must protect the environment while safeguarding those most susceptible to economic impacts. Effective climate action must be ambitious, inclusive, transparent and equitable. The proposed fuel standard amendments, however, fall short of these ideals, focusing on aspirational targets without a fair or clear path to achieve them.”

• The Board’s adoption of the amendments are set, and neither the Legislature nor governor has the power to change anything. NFIB California has developed and will continue to nurture the goodwill its built with CARB staff that has led to advance notice of proposed regulations and a request for small business input.

• CalMatters provided this wrap-up of the proceedings.

• SIDEBAR: From the Los Angeles Times, Trump victory jeopardizes slate of California clean air rules

— “In the last four years, California has adopted some of the nation’s most innovative air regulations, including a ban on new gasoline-powered car sales by 2035 and a prohibition against diesel-fueled trucks visiting state ports and railyards in 2036.

— “However, many of these rules, which were approved by the California Air Resources Board, have not been approved by the Biden administration and now face outright rejection by the incoming Trump administration. In the aftermath of election day, climate leaders in California and abroad said they were bracing for broad opposition to many such initiatives.”

California—Where the Regulatory Sun Never Sets

• On the same day as the CARB Board meeting, the board of the California Privacy Protection Agency met in San Francisco to go over the items on its agenda.

• NFIB monitored the proceedings for anything that might affect small businesses in the state. A fuller report will be included in future Main Street Minutes.

Election Night Victories

• Official election results will not be certified until December 13, but if trends hold, NFIB California will have had a good day. All four of the ballot propositions we took a stance on went our way. Likewise, all four of the endorsements we made for state senate also went our way, as did 15 of the 20 assembly races. Click here for the complete list.

Governor Calls Special Session

• Two days after the election, Gov. Gavin Newsom issued a proclamation calling for a special session of the Legislature to “safeguard California values and fundamental rights in the face of an incoming Trump administration,” according to his news release.

• The special session will run concurrent with the new 2025-2026 Regular Session and begin in a few weeks on Dec. 2, 2024, when lawmakers take the oath of office, pose for pictures with adoring families and friends, and collect their per diem before adjourning until Jan. 6, 2025, when the real work begins.

• Democratic and Republican leaders issued predictable responses to the call for a special session.

• “This special session is a shameless political stunt,” said Republican Assembly Leader James Gallagher in his news release. “The only ‘problem’ it will solve is Gavin Newsom’s insecurity that not enough people are paying attention to him. There will not be a single policy implemented in this special session that couldn’t be addressed when the Legislature reconvenes in January.

• Assembly Speaker Robert Rivas disagrees, telling Politico, “Trump mentioned that his campaign was a campaign to protect America. What you can expect is California will do everything we can to protect America from Donald Trump.”

• Buckle up. Settle in. It’s going to be a bumpy ride for the next four years.

What’s He Saying About the Incumbent?

• Echoes of Al Checchi.

• A wealthy Democratic businessman has thrown his hat in the ring for governor of California in 2026, and, like a similar 1986 candidate, is showing he’s not afraid to spend it.

• “He’s a self-described fiscally conservative, ‘socially responsible’ Democrat. Some compare him to former Gov. Arnold Schwarzenegger,” reported The Orange County Register for a story headlined, Hospitality businessman Stephen Cloobeck launches California governor bid.

• Cloobeck is wasting no time and started running digital ads on most politically oriented websites announcing his ‘Get a Cloo’ campaign. The Main Street Minute made a search of the ‘Get a Cloo’ website and found a merchandise section where, for $33, you can buy a “California, You’ve Been F***ed With Enough” trucker hat.

• No response, yet, from Cloobeck’s fellow Democrat, Gov. Gavin Newsom, who on January 1 will start his seventh year in power.

And, Speaking of the Democratic Primary for Governor …

• Here, in alphabetical order, is the lineup of declared candidates, or those considering a run, so far:

— Toni Atkins, former State Senate President

— Rob Bonta, attorney general of California

— Xavier Becerra, secretary of the U.S. Dept. of Health and Human Services

— Stephen Cloobeck, hospitality industry entrepreneur

— Elani Kounalakis, lieutenant governor of California

— Katie Porter, former U.S. Representative

— Tony Thurmond, California superintendent of public instruction

— Antonio Villaraigosa, former mayor of Los Angeles

— Betty Yee, former state treasurer of California

• The Democratic field was to have substantially changed if Kamala Harris had won the presidency. Now, it might even grow.

• To date, only Riverside County Sheriff Chad Bianco has been mentioned as a potential Republican candidate.

Calendar

• November 30, National Shop Small Business Saturday Campaign

• December 2, a new Legislature for the 2025-2026 session convenes for organizational purposes and to collect a per diem before adjourning for the rest of the month.

• December 6, county election officials must report final official results to Secretary of State

• December 13, Secretary of State certifies the November General Election outcome. All votes will have been counted.

• January 6, the 2025-2026 session of the California State Legislature opens for regular business.

National

Highlights from NFIB Federal Government Relations Principal Josselin Castillo’s weekly report

• On November 7th, NFIB announced a new advertising campaign that includes targeted television and digital ads featuring small business owners across the country urging Congress to make the 20% Small Business Tax Deduction permanent by passing the Main Street Tax Certainty Act. Watch the new NFIB Small Business Deduction TV ads here and here.

• NFIB announced the filing of a legal challenge against a recent rule from the Federal Trade Commission (FTC), which targets businesses that engage in automatic renewals of subscriptions or memberships.

• NFIB filed an amicus brief in the case Robert Mayfield v. U.S. Department of Labor at the U.S. Court of Appeals for the Fifth Circuit regarding the “executive, administrative, or professional” employees (EAP) exemption under the Fair Labor Standards Act (FLSA).

• NFIB hosted a webinar on November 6: Tips to Prepare for DOL’s New Overtime Rule and Employment Law Changes in 2025.

Next Main Street Minute November 18.