The Barbed Wire - December 16, 2016

December 16, 2016
State Leaders Gather to Discuss California's Economic Future
Rural Leaders Validate Importance of Broadband in Recent Survey
California Supreme Court Ruling Impacts Local Government Tax Collection
Trump Continues to Organize Future Cabinet
House Freedom Caucus Targets Federal Regulation
President Obama Signs Water Resources Development Act
KEEPING UP
BULLETIN BOARD
REGULATORY UPDATE

State Leaders Gather to Discuss California's Economic Future

This week, leaders from government, academia, industry, and independent researchers gathered at the annual California Economic Summit (Summit) to discuss the issues and possible solutions for the challenges facing the state’s economic future.  The Summit is the culmination of ongoing work by action teams formed to tackle California’s most daunting economic issues.  

This year’s Summit featured discussion around “One Million Challenges,” three major goals for advancing broadly shared and sustainable growth in the various regions around California.  Those goals include One Million More Homes, One Million More Skilled Workers, and One Million More Acre-Feet of Water – three vital pieces to the sustainability of California’s economic future.  While the discussions were often urban-focused or centered around the Central Valley, there was acknowledgement from attendees such as California Lieutenant Governor Gavin Newsom that the State must do a better job of reaching out to rural communities and understanding their needs within the grand scheme of California’s economy.  RCRC leadership, including incoming Chair Supervisor Bob Williams (Tehama) was in attendance to represent the rural county perspective on the State’s economic challenges.

Detailed information on the California Economic Summit can be accessed here

Rural Leaders Validate Importance of Broadband in Recent Survey

Following on its 2016 Annual Survey on Broadband Adoption in California, the California Emerging Technology Fund (CETF) reached out to County, City and School District officials to better understand their views on broadband and found that 77 percent view high-speed Internet as “very important to the future economic prosperity and quality of life in their jurisdiction.”  Among the respondents to the survey, 60 percent were elected officials, and 50 percent represented rural communities – areas where the California Public Utilities Commission (CPUC) estimated per an April 2016 report that only 43 percent of rural households have access to reliable broadband service.  

Other findings in the CETF 2016 Survey of Local Government Officials included:

  • 73% report broadband is very important to their jurisdictions’ small and large businesses;
  • 53% report their low-income residents are not connected at home to broadband;
  • 63% report broadband is a very important issue to residents;
  • 57% report that schools are very able to provide computing devices and broadband in classrooms;
  • 22% report that schools always allow students to take home computing devices to do homework;
  • 65% report their jurisdiction would benefit greatly from telehealth-telemedicine technology and capabilities;
  • 78% report broadband availability and speed are neither very high nor very low;
  • 71% report their jurisdiction is fairly advanced in providing information and services online;
  • 71% report their jurisdiction uses electronic communications quite often to reach residents;
  • 55% report their workforce is prepared to use computing and Internet navigation skills to fill available jobs; and,
  • 36% report that broadband is very adequate for public safety and emergency responses.

The full press release and survey findings can be accessed here.

California Supreme Court Ruling Impacts Local Government Tax Collection

On Monday, the California Supreme Court issued its ruling that the City of San Diego cannot collect hotel occupancy taxes from Online Travel Companies (OTCs) such as Expedia, Priceline, and Travelocity.  While the California Supreme Court ruling is in line with numerous other lawsuits between local governments and OTCs across the country, it left open the possibility for a local government to collect additional hotel occupancy taxes from the hotel operator when they require an OTC to charge fees in addition to the contracted rate.  

Proponents of these cases have argued that hotel operators generally contract with an OTC by offering rooms at discounted wholesale rates while requiring them to charge a fee to ensure that the price the OTC offers reflects the price the hotel operator would have similarly or otherwise charged.  Further, local governments have argued that the hotel occupancy tax should be assessed based on the full retail price to the consumer and not just the amount stipulated in the contract between the OTC and the hotel operator.  OTCs have argued that the difference between the wholesale/contracted price and the retail price they charge a consumer is a service fee they collect for processing the transaction on behalf of the hotel operator, and that service fees are exempt from taxes. 

Over the past several years, more than 20 other states have reviewed similar cases and concluded that OTC service fees are exempt from sales taxes.  However, at least six states have ruled in favor of local governments and require taxes to be paid on the full retail price to the consumer.  With the California Supreme Court leaving the window open for the City of San Diego to collect additional hotel occupancy taxes from hotel operators, and other rulings throughout the country, it remains to be seen how these disputes will progress or how the state and or federal government may intervene.  

Trump Continues to Organize Future Cabinet

President-elect Donald Trump has continued his efforts to organize the future cabinet of his administration.  This week, President-elect Trump announced Congressman Ryan Zinke (R-MT) to be his Secretary of Interior.  Congressman Zinke is currently finishing his first term in Congress and previously served in the Navy Special Warfare Command.  Also announced this week, President-elect Trump named former Texas Governor Rick Perry to be his nominee for Secretary of Energy.

Prior this week, President-elect Trump nominated Oklahoma Attorney General Scott Pruitt as EPA Administrator, along with other cabinet positions.  President-elect Trump and his transition team continue to vet a number of candidates to serve as U.S. Department of Agriculture Secretary.

House Freedom Caucus Targets Federal Regulation

Congressman Mark Meadows (R-NC), the incoming chair of the House Freedom Caucus, met with President-elect Donald Trump on Wednesday to deliver a list of regulations the new administration should consider eliminating as soon as possible.  The list, comprised of 232 regulations from every agency of the federal government, targets major initiatives from the Obama administration. 

Among the regulations proposed for elimination are the Clean Power Plan, the Clean Water Rule (Waters of the U.S.), President Obama’s Executive Orders on immigration policy, and Net Neutrality.  The House Freedom Caucus is made up of about 40 Republicans backed by the Tea-Party movement and was instrumental in ousting former Speaker of the House John Boehner.  Deregulation was a central theme of President-elect Donald Trump’s campaign but it remains to be seen exactly what regulations President-elect Trump intends on cutting.   

President Obama Signs Water Resources Development Act

Earlier today, President Barack Obama signed the “Water Infrastructure Improvements for the Nation Act” (WIIN Act).  The WIIN Act contains the Water Resources Development Act (WRDA) conference report, as well as drought aid provisions for California.  The bill passed the House by a vote of 361-60, and it passed the Senate by a vote of 78-21.  

A press release and detailed summary of the bill from Senator Dianne Feinstein can be accessed here.

KEEPING UP

DWR Director Mark Cowin Retiring; Bill Croyle Named Acting Director

Click here

BULLETIN BOARD

RCRC Counties Receive $3.1M for Tree Mortality and Watershed Protection Projects

Click here

Revised Notice: Amendment to the Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta Estuary and Supporting Draft Revised Substitute Environmental Document

Click here

REGULATORY UPDATE

RCRC members are encouraged to submit comments on regulatory matters to state and federal regulatory bodies, and to provide a copy to RCRC’s Government Affairs staff.  Click “Read More” to access information related to the current status of regulations impacting California’s rural counties.  

General Plan Safety Element Review and Assessment. The proposed rule establishes a standardized review process for the Board of Forestry review of a draft element or a draft amendment to the safety element of a county or a city’s general plan that contains State Responsibility Area (SRA) or Very High Fire Hazard Severity Zone. Agency: Board of Forestry and Fire Protection (Board) Status: The proposed rule was published October 28, 2016, with comments due by December 13, 2016.  The Board anticipates holding a public hearing on January 24, 2017.  The proposed rule can be accessed here.  RCRC Comments: Staff is seeking input from member counties.  RCRC Advocate: Mary Pitto mpitto@rcrcnet.org

Discussion Draft 2030 Target Scoping Plan.  The Discussion Draft 2030 Target Scoping Plan (Discussion Draft) provides the framework to achieve the State’s Senate Bill 32 goal of reducing greenhouse gasses by at least 40 percent below 1990 levels by 2030.  The Discussion Draft is not complete and is intended to illicit initial feedback and to help refine the approach and strategies for achieving the 2030 target.  Agency: Air Resources Board.  Status: The Discussion Draft was released on December 2, 2016, with comments due by December 16, 2017.  Release of the Proposed 2030 Target Scoping Plan is anticipated in early January 2017 for a 45-day public review and ARB hearing in Spring 2017.  The Discussion Draft can be accessed here.  RCRC Comments: Click here  RCRC Advocate: Staci Heaton sheaton@rcrcnet.org and Mary Pitto mpitto@rcrcnet.org

California Paint Stewardship Program 2016 Annual Report.  PaintCare has submitted their California Paint Stewardship Program 2016 Annual Report (Report) to CalRecycle.  Agency: CalRecycle Status: Report posted November 3, 2016, with public comments regarding the performance of the paint stewardship program due December 19, 2016.  CalRecycle will make a subsequent determination regarding compliance within 90 days.  RCRC Comments: Staff is seeking input from member counties.  The Report can be accessed here.  RCRC Advocate: Mary Pitto mpitto@rcrcnet.org

Floodplain Management and Protection of Wetlands. The proposed rule implements the Federal Emergency Management Agency (FEMA) Federal Flood Risk Management Standard (FFRMS) update for a Housing and Urban Development (HUD) assisted or financed project involving new construction or a substantial improvement that is situated in an area subject to floods.  Agency: US Department of Housing and Urban Development. Status: The proposed rule was published October 28, 2016, with comments due by December 27, 2016.  The proposed rule can be accessed here.  RCRC Comments: Staff is seeking input from member counties.  RCRC Advocate: Mary Pitto mpitto@rcrcnet.org

Amendments to the Portable Engine ATCM and the PERP.  Revisions to the Portable Engine Airborne Toxic Control Measure (ATCM) and the Statewide Portable Equipment Registration Program Regulation (PERP) are being proposed.  The current ATCM requires subject fleets of engines to meet a series of fleet average emission standards for diesel particulate matter (DPM).  The ATCM fleet standards became effective in 2013 and become more stringent in 2017 and 2020.  Compliance with the future fleet requirements are projected to be very difficult.  The proposed amendments include alternatives to the current fleet averages to protect public health while considering economic impacts to regulated fleets.  Agency: Air Resources Board (ARB) Status: Draft regulations are dated September 9, 2016.  A public workshop was held on November 10, 2016.  The proposed regulations are anticipated to be released in early 2017, and considered at the March 2017 ARB public meeting.  The draft regulations and additional information can be accessed hereRCRC Comments: Staff is seeking input from member counties.  RCRC Advocate: Mary Pitto mpitto@rcrcnet.org

Revised Draft Short-Lived Climate Pollutant Reduction Strategy (SLCP Strategy).  The revised Short-Lived Climate Pollutant (SLCP) Reduction Strategy and relevant Appendices have been released for public review and comments.  The SLCP Reduction Strategy addresses black carbon, methane, and hydroflourocarbons (HFC) emissions and lays out a range of options to reduce SLCP emissions in California, including regulations, incentives, and other market-supporting activities.  Agency: Air Resources Board.  Status: The revised SLCP Reduction Strategy and relevant Appendices was released on November 28, 2016, with comments due by January 17, 2017.  Three SLCP Strategy workshops will be held on the week of December 12, 2016.  The Revised Draft SLCP Reduction Strategy and Revised Draft Environmental Analysis (Appendix E) will be considered at the March 23 and 24 ARB monthly meeting.  The revised SLCP Reduction Strategy, notice of the public workshops, and related documents can be accessed hereRCRC Comments: Staff is seeking input from member counties.  RCRC Advocate: Mary Pitto mpitto@rcrcnet.org and Staci Heaton sheaton@rcrcnet.org