CMTA taking action to stop electrification mandate bills

By Michael Shaw

Capitol Update, April 6, 2018 Share this on FacebookTweet thisEmail this to a friend

California manufacturers depend on a variety of sources from electricity to natural gas to meet the need for reliable and affordable energy in their processes and move products to consumers. However, the California Legislature has launched several bills that seek to eliminate fossil fuels from buildings and vehicles across the state.

Manufacturers in California pay a premium on both electricity and natural gas when compared to the national average and this higher cost plays a role in investment decisions.

On the Road – AB 1745 (Philip Ting) bans new registrations for internal combustion engine vehicles beginning in 2040 and discourages new investments in more efficient vehicles. CMTA believes that continued investment in improving internal combustion, hybrid and electric powertrains all play a role in California’stransportation future and the Legislature should not pick winners and losers. The bill will be heard in the Assembly Transportation Committee on April 16th

In the Facility – AB 3001 (Rob Bonta) mandates that all new residential and nonresidential buildings be ‘electric-ready’ beginning in 2022 and directs the California Energy Commission (CEC) to develop a plan to address energy use in existing buildings. Mandating building electrification will drive up natural gas costs and limit the source of this affordable energy source. A coalition of business organizations led by CMTA issued an opposition letter pushing back on this electrification mandate and were successful in having the bill pulled from committee.

In the Facility . . . Again –AB 3232 (Laura Friedman) creates another greenhouse gas (GHG) emission standard that calls for a 50 percent reduction in GHG emissions from California buildings on top of existing GHG reduction programs, including Cap-and-Trade and Low Carbon Fuel Standard (LCFS), that already account for the energy used in homes, business and vehicles. The bill will be heard Monday, April 9th in the Assembly Utilities and Energy Committee and a CMTA-led opposition coalition will help protect against higher building costs and energy prices that would be driven by AB 3232.

Join CMTA’s Government Relations Committee to keep on the latest action on these billsand many others that will affect California manufacturers. For additional information on these bills please contact Michael Shaw at

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