Transcript Highlights:

• </c><00:35:38.800><c> chain</c> a variety of ways certainly supply chain a variety of ways certainly
• supply chain job<00:35:40.599><c> creation</c><00:35:41.599><c> um</c><00:35:42.560><c> uh</c><00:35:
• supply chain aspects of there's a lot of supply chain aspects of offshore<01:54:58.920><c> wind</c><
• I know I’ve seen discussion around all the activity that would be resulting in terms of supply chain,
• have</c> in terms of supply chain as others have in terms of supply chain as others have mentioned<02

Committee: House Science, Technology and Energy

Transcript Highlights:

• Will I be able to find time between calls to pump regularly enough to keep my supply up?
• chain.
• chain.
• Public health and maintaining a secure medical supply chain.
• At a time when we're all focused on supply chain resilience, this matters even more, not only here in

Summary: The committee heard and later voted on six labor-related bills. SB 1059 would modernize the Employment Training Panel by allowing electronic record-keeping, digital attendance documentation, and updated training terminology; supporters said it would reduce paperwork and better match current workforce training practices, while no opposition appeared. SB 966 would make permanent 2017 refinery process safety protections, including worker participation in safety reviews and stop-work authority; refinery workers and unions supported it as a safeguard against rollback, while the Western States Petroleum Association opposed it, arguing it conflicted with a settlement and could be preempted by federal labor law. SB 1024 would provide 26 weeks of paid postpartum and recovery leave for firefighters who give birth and require return to the prior position; supporters said it would improve retention and equity in a male-dominated profession, and there was no opposition. The committee also heard SB 1316, which would strengthen wage theft and workplace safety enforcement by allowing renewal of labor commissioner liens, limiting employers’ late use of records, and requiring Cal/OSHA to report complaints and citations data annually. Supporters said the bill would help workers collect judgments and address long backlogs; there was no opposition, and the bill passed 4-0 on call before the full committee vote. SB 1185 would apply skilled-and-trained workforce requirements to pharmaceutical facility construction and maintenance; supporters from the building trades said these projects require specialized precision to protect public health and supply chains, while contractors opposed the bill as an unnecessary expansion of public-work-style mandates into private projects. Finally, SB 1227 would create apprenticeship pathways into Department of Industrial Relations enforcement jobs, including Cal/OSHA and the Labor Commissioner’s office, to address staffing shortages and backlogs. The author and supporters said apprenticeships could help fill vacancies while preserving the civil service merit principle and creating opportunities for displaced workers; there was no opposition. After discussion and roll calls, the committee reported all six bills out of committee, with SB 966, SB 1024, SB 1059, SB 1185, and SB 1227 sent to Appropriations, and SB 1316 sent to Judiciary.

Transcript Highlights:

• chain and trade route disruptions.
• California water supply is expected to...
• It's not sustainable, and the impacts are felt across the entire food production supply chain.
• The impacts are felt across the entire food production supply chain: the water agencies that provide
• Its implementation has started a ripple effect across the entire supply chain, beginning at the farm

Summary: The joint informational hearing focused on the state of agricultural production in California, with opening remarks from the Senate and Assembly Agriculture Committee chairs and Assemblymember Aguiar-Curry emphasizing agriculture’s economic importance and the need for stronger state investment. They highlighted concerns about water scarcity, labor shortages, rising costs, extreme weather, tariffs, pesticide and regulatory pressures, and the lack of agricultural funding in recent climate-related allocations. Aguiar-Curry also urged immediate action on the glassy-winged sharpshooter outbreak, which CDFA said would cost about $18.5 million annually to detect, monitor, and eradicate. The first panel featured CDFA and the Department of Water Resources. CDFA described California agriculture as a $61.2 billion industry producing more than 400 commodities, but also noted farm bankruptcies, rising input and compliance costs, climate stress, trade issues, and crop removals in vineyards and almonds. DWR focused on hydrologic variability, snowpack decline, groundwater overdraft, subsidence, and SGMA implementation, and discussed tools such as forecast-informed reservoir operations, groundwater recharge, basin characterization, and the 2028 water plan update. Members asked about immediate legislative priorities, flood response after 2023, Prop. 4 and greenhouse gas reduction funding, and regulatory alignment; officials pointed to pest control, science-based water management, affordability, infrastructure, and better coordination across agencies. The second panel examined water, climate, and resource sustainability. PPIC presented estimates that SGMA, climate change, and environmental regulations could reduce irrigation water in the San Joaquin Valley by about 20% by 2040, potentially requiring 500,000 to 900,000 acres of fallowing and affecting billions in agricultural GDP and tens of thousands of jobs. UC Merced discussed practical adaptation tools including FIRO, managed aquifer recharge, on-farm recharge, land repurposing, agrivoltaics, and crop flexibility. The Agricultural Energy Consumers Association argued that energy costs are unsustainable, that electricity and natural gas rates are rising sharply, and that state programs supporting climate-smart agriculture, biomass, and food processing need more funding and coordination. Members and witnesses discussed how limited Prop. 4 and GGRF dollars might be used for recharge, conveyance, subsidence mitigation, and regulatory improvements. The final panel addressed workforce innovation and the future of food production. Industry representatives said food and fiber processors cannot pass along rising costs from energy, labor, workers’ compensation, packaging rules, and compliance mandates, and warned that SGMA-driven land fallowing, pest pressure, and abandoned orchards threaten small farms and processing jobs. The Almond Alliance called for periodic review of regulations, stronger invasive species response, and targeted support for orchard removal, ag burn alternatives, and water efficiency. The California Farmworker Foundation described its work providing health, education, and civil assistance services to farmworkers in multiple counties, including health navigation, field-based clinics, and food support, and stressed the needs of an aging labor force and food insecurity in rural communities. No votes were taken; the hearing was informational, with members and witnesses discussing possible future legislation and funding priorities.

Transcript Highlights:

• chain and trade route disruptions.
• California water supply is expected to...
• It's not sustainable, and the impacts are felt across the entire food production supply chain.
• The impacts are felt across the entire food production supply chain: the water agencies that provide
• Its implementation has started a ripple effect across the entire supply chain, beginning at the farm

Transcript Highlights:

• We think, as we look at the value chain, it can all be done right here in Minnesota.
• We think, as we look at the value chain, it can all be done right here in Minnesota.
• We think, as we look at the value chain, it can all be done right here in Minnesota.
• We think, as we look at the value chain, it can all be done right here in Minnesota.
• We think, as we look at the value chain, it can all be done right here in Minnesota.

Summary: The committee heard testimony on sustainable aviation fuel (SAF) and Minnesota’s efforts to build a SAF industry. Andrea Veble of the Minnesota Department of Agriculture said the Walz administration strongly supports SAF because it could benefit agriculture, forestry, clean energy, and rural economies. She highlighted the 2023 state SAF tax credit and sales tax exemption for facility construction, describing the credit as a nation-leading incentive designed to stack with federal IRA credits and attract producers and blenders to Minnesota. Jeff Davidman of Delta Airlines said aviation is difficult to decarbonize and that SAF is the airline industry’s best available tool to reach net-zero goals by 2050. He explained that SAF is a certified drop-in fuel that can be blended with conventional jet fuel and used in existing aircraft and infrastructure, and he cited growing global demand and limited supply. He said Minnesota has many potential feedstocks, including used cooking oil, corn, soybeans, and camelina, and praised the state’s SAF tax credit and the Minnesota SAF Hub as important steps toward making Minnesota a leader in the sector. Peter Fros of Greater MSP described the Minnesota SAF Hub as a public-private partnership aimed at building an industrial-scale SAF value chain in Minnesota. He said the state has key advantages, including airport demand, corporate partners, research institutions, and agricultural inputs, and estimated that three SAF biorefineries could create tens of thousands of jobs and significant emissions reductions. He also said the Hub is working on blending infrastructure, private demand commitments, a winter camelina expansion study, and efforts to secure additional refineries before 2030. Members raised questions about how sustainability is measured, and Fros said the Hub relies on the federal GREET model but wants a clearer, transparent, and standardized national method that also accounts for issues like water quality and biodiversity. Amanda Bellik of the Minnesota Corn Growers Association said corn-based ethanol is a strong fit for SAF production through the alcohol-to-jet pathway because it is abundant, affordable, and supported by existing infrastructure. She said SAF development could create a new value-added market for corn without requiring new acres, but emphasized the need for significant capital investment, stable tax policy, and efficient permitting. She also said the group has worked with a consultant on third-party sustainability assessments of corn production practices to help fill data gaps and support the carbon-intensity requirements tied to SAF incentives.

Transcript Highlights:

• New Mexico's agriculture, New Mexico's food and fiber supply chain from input suppliers to final consumers
• If you include the other industries that support the supply chain, so for example, transportation and
• So the direct employment for the food and fiber supply chain is 144 million people in New Mexico.
• chain.
• chain.

Transcript Highlights:

• The state clearly is leaning into the opportunities to stand up new supply chains to help rural economies
• The state clearly is leaning into the opportunities to stand up new supply chains to help rural economies
• Chris Schmote, on behalf of two clients today—the Supply Chain Federation and the California Trucking
• chain.
• chain, those costs do flow through to consumers.

Summary: The committee heard several bills, beginning with AB 1938, which would create a voluntary process for local governments to designate California surf reserves through the Ocean Protection Council. The author and supporters, including Save the Waves Coalition, the League of California Cities, and the California State Association of Counties, argued the bill would recognize surf breaks as important natural and economic assets. The bill received a due pass recommendation to Appropriations and passed on a roll call vote, with the measure left on call. The committee also approved the consent calendar, which included AB 1699, AB 1780, AB 1891, AB 1893, and AB 2566. The committee then took up AB 2051, which would convene a coastal resilience permitting working group to develop a roadmap for streamlining permits for coastal resilience projects. The author and supporters from the Bay Area Council, Port of San Francisco, and others said the bill would reduce duplicative permitting delays while preserving environmental protections. One member raised concerns about giving too much authority to the Coastal Commission, but the bill still received a due pass recommendation to Water, Parks and Wildlife and passed on a roll call vote. AB 2494, dealing with the management of demonstration state forests, drew substantial debate. The author said the bill would update outdated 1947-era management goals to emphasize biodiversity, carbon sequestration, wildfire resilience, recreation, research, and tribal co-governance, with strong support from Mendocino County, tribal representatives, and environmental groups. Opponents from the Farm Bureau, California Forestry Association, and others argued it would shift the forests away from sustainable timber production, create funding instability, and invite litigation. After extensive questioning about forest science, old growth, funding, and tribal co-management, the bill received a due pass recommendation to Appropriations and passed on a roll call vote. The committee also approved AB 2483, which would create a permanent certification pathway for formerly incarcerated firefighters who served on Cal Fire hand crews. Supporters said the bill would recognize their training and improve job prospects after release, and it passed unanimously to Public Safety. Finally, AB 1777, the California Clean Skies Act, was heard; it would affirm CARB’s authority to adopt indirect source rules to address pollution from vehicle-heavy facilities such as warehouses and ports. Environmental, health, and labor supporters backed the bill as a tool to protect public health, while trucking, business, port, and industry groups opposed it as costly and overly broad. The bill remained under discussion at the end of the transcript, with members debating whether it clarified existing authority or created new regulatory power.

Transcript Highlights:

• Second, timelines for network upgrades have been extended across the board due to supply chain delays
• , which I know this committee has heard... ...have been extended across the board due to supply chain
• So sometimes an interconnection problem may come up, or it's a supply chain issue, or it's transmission
• chain, everybody trying to electrify, we're just, if we don't, you know, find some relief or options
• now or solutions now in terms of the supply chain, and this is just one aspect of it, then we're going

Committee: House Utilities and Energy

Transcript Highlights:

• And you're never going to be able to supply the power needed for that without natural gas-fired power
• This resolution requires setting Targets and pushing a restaurant to restrict its own supply chain in
• chain.
• chain.
• How does it make sense for a food company, for a restaurant chain, to cut down on its supply chain emissions

Bills: SB312 , SB945 , SB946 , SB1367 , SB1861 , SB2044 , SB2337 , SB2403 , SB2819 , SJR54

Committee: Senate State Affairs

Transcript Highlights:

• </c> through four years of inflation, supply through four years of inflation, supply chain<00:40:09.640
• And as we restore those supply chains, we know that those supply chains begin with resources and begin
• And as we restore those supply chains, we know that those supply chains begin with resources and begin
• And as we restore supply chains again.
• , we know that those those supply chains, we know that those supply<03:51:51.680><c> chains</c><03:51

Bills: HR1048 , HJR75 , HJR24

Keywords: House resolution, committee assignment, standing committee, House Committee on Science, Space, and Technology, committee membership, committee seniority, Mr. Menefee, Mr. Riley of New York, House organization, congressional procedure, internal rules, legislative administration, HJR75, H.J.Res. 75, Congressional Review Act, CRA, Department of Energy, DOE, Energy Efficiency and Renewable Energy, energy conservation standards

Transcript Highlights:

• California's housing crisis is fundamentally a supply crisis, especially for entry-level homes.
• Increasing the supply of affordable homeownership doesn't just help buyers.
• has been mentioned earlier, like Habitat for Humanity, help build this reality by increasing the supply
• renters, working families, people of color, are priced out of our housing market because we have a supply
• Of a pink bungalow with intersecting planes of chain-link, glass, and corrugated steel, unfolding the

Summary: The Senate convened with a quorum, opened with prayer and the Pledge of Allegiance, and then took up several floor items focused largely on housing, public health, and tax-credit awareness. The chamber adopted SR 71, a resolution by Senator Arreguín recognizing the importance of affordable homeownership in California. Supporters from both parties emphasized homeownership as a path to wealth-building, stability, and community strength, highlighted racial disparities in ownership, and praised nonprofit builders such as Habitat for Humanity. After passage, Senator Arreguín introduced Habitat for Humanity advocates in the gallery and noted the role of the CalHome program in funding affordable homeownership projects. The Senate also confirmed Trista Gonzalez as Director of the Department of Tax and Fee Administration, Aaron McGuire as executive director of the Board of State and Community Corrections, and Lee Herrick for another term as California Poet Laureate, each by unanimous or near-unanimous roll call votes. The Senate then adopted SCR 115 by Senator Daly, recognizing February as Heart Health Month and focusing on women’s heart health. Senator Daly shared her own experience with a stroke during a heart procedure and urged women to listen to their bodies and seek care early. Several senators spoke in support, describing silent heart attacks, the need to recognize symptoms in women, and the importance of challenging medical assumptions. The resolution passed unanimously. The Senate also adopted SR 75 by Senator Rubio, designating California Earned Income Tax Credit Awareness Week. Senators described CalEITC as a key anti-poverty tool and urged greater outreach so eligible families do not miss the credit; that resolution also passed unanimously. Later, the Senate heard a series of adjournment-in-memory tributes, including one for architect Frank Gehry, whose work in Los Angeles and Bilbao was praised for its global influence and civic impact, and one for June Roberti, remembered for her long partnership with former Pro Tem David Roberti and her advocacy and family life. Senator Arreguín also moved to place file item 67 on the inactive file. The session ended with announcements, including a committee meeting notice, and the Senate recessed with the next floor session scheduled for Monday, February 9, 2026.

Transcript Highlights:

• We already have, you know, all of us, chain of custody and protections around our equipment.
• We do not supply that information, but there is a legal conflict between the federal Patriot Act and
• We are talking about chain-of-custody gaps and mailing ballot and drop-box handling that could allow
• We are talking about chain of custody gaps and mailing ballot and drop-box handling that could allow
• chain, or foreign interest exposure.

Committee: Senate Ethics and Elections

Summary: The Committee on Ethics and Elections met with a quorum present and took up Senate Bill 62 by Senator Errington, which would create an enforceable requirement that partisan candidates meet the 365-day party affiliation or no-party registration requirement before qualifying. The committee adopted an amendment changing the effective date to upon becoming law, heard no opposition, and then approved the bill. The committee also approved a slate of 15 gubernatorial nominees en bloc and recommended them to the floor. The Florida Supervisors of Elections presented their 2026 legislative priorities. Their requests included automatically updating voter records when DHSMV changes driver license numbers, treating verified petition signing by inactive voters as voter activity that restores active status, adding election equipment and ballots to the state’s critical infrastructure protections, clarifying public-records treatment of election worker names and addresses, allowing more flexibility for early voting sites when a supervisor’s office is not suitable, eliminating the need for provisional-ballot envelopes when polling hours are extended by emergency order, and allowing vote-by-mail voters to remain on the list for the next general election unless they opt out. Senators asked questions about inactive voter status, security implications, early voting site requirements, and vote-by-mail renewal, and several members expressed support or interest in the supervisors’ proposals. During public testimony, several speakers urged stronger election-integrity measures, including proof of citizenship, tighter chain-of-custody controls, more hand-counting or manual audits, quarterly list maintenance, and reduced reliance on vote-by-mail and voting machines. They also criticized current audit systems and cited outside reports and research they said showed vulnerabilities in Florida’s election process. No additional committee action was taken after public testimony, and the meeting adjourned.

Transcript Highlights:

• For those that don't recall, the CHIPS Act, passed in 2022, was a direct result of the supply chain disruption
• For those that don't recall, the CHIPS Act, passed in 2022, was a direct result of the supply chain disruption
• For those that don't recall, the CHIPS Act, passed in 2022, was a direct result of the supply chain disruption
• in 2022 was a direct result of the in 2022 was a direct result of the supply<00:19:14.240><c> chain</
• </c> supply chain disruption that we saw. supply chain disruption that we saw.

Committee: Senate Finance

Transcript Highlights:

• There were a lot of slowdowns for construction, also large challenges with supply chain.
• Downs for construction, also large challenges with supply chain.
• Still some challenges with supply chain, but it has been significantly improved.
• Downs for construction, also large challenges with supply chain.
• Still some challenges with supply chain, but it has been significantly improved.

Summary: The committee first heard Issue 1 on trailer bill language to redirect funding for emergency demand-response programs. The Department of Finance proposed using about $26.9 million in General Fund originally set aside for the Distributed Energy Backup Assets program to bolster the Demand-Side Grid Support Program for summer 2026, and using about $70 million in CalCHAP interest to support ratepayer-funded demand response in summers 2027 and 2028. The CEC and CPUC said they are working on a transition from DSGS to ELRP or a successor program, while the LAO noted the General Fund money would otherwise revert to savings. Members pressed the administration on whether demand response remains important, whether DSGS has been successful, and whether the state should keep funding it through the CEC rather than shifting to a ratepayer-funded CPUC program. The CEC and CPUC said the programs are not directly comparable, emphasized different cost structures and enrollment metrics, and said a CPUC rulemaking is underway with a proposed decision expected in Q3 2026. No vote was taken in the transcript. The committee then took up Issue 2, a budget proposal tied to SB 254 and the new transmission accelerator. GoBiz and the California Infrastructure and Economic Development Bank described a five-year, roughly $26 million request to staff and administer the accelerator and manage Proposition 4 and AB 1207 funds for transmission financing. Members asked about state liability, ownership of financed lines, FERC revenue requirements, and whether the program would help underserved regions and offshore wind development. Staff explained that the accelerator would only consider projects already identified through CAISO’s competitive transmission planning process, and that state financing would be a small portion of large projects intended to lower overall costs to ratepayers. The LAO said it had no specific concerns but urged the Legislature to ensure the final language matches its intent. The committee also heard Issue 3 on petroleum market oversight. The CEC and its Division of Petroleum Market Oversight requested additional positions and funding to implement ABX2-1 and continue work on supply stabilization, refinery monitoring, and transportation fuels analysis. Members questioned why the work was funded through the Energy Resources Programs Account, whether existing staff from the paused price-gouging work could be reassigned, and whether the program had produced evidence of price gouging or improved supply conditions. CEC and Finance said the new positions are needed because the workload has expanded, while some existing staff remain on related analysis and reporting duties. The discussion ended without a vote in the transcript.

Transcript Highlights:

• Um, there was a comment about a definition for necessary supplies, and the definition includes chemicals
• , feed, fertilizer, fuel, seeds, plants, supplies, equipment parts, and other inputs as determined by
• And the definition necessary supplies.
• , supplies, supplies, equipment<00:30:00.320><c> parts,</c><00:30:00.720><c> and</c><00:30:01.039><c>
• He said that across the island chain on the Big Island there are two organizations that are primed to

Committee: House Finance

Summary: The committee heard testimony on several agriculture-related bills. HB 1602 HD1 drew support from the Department of Agriculture and Biosecurity, the Ulupono Initiative, and others, with testimony emphasizing the value of a dedicated grant writer who had secured nearly $9 million in federal funds and was pursuing additional grants. Members discussed how much time grant applications take and how the position helps position projects for implementation. The committee then moved on without objection. HB 1832, relating to aquaculture, received support from state agencies and industry groups, with one individual opposed. HB 1707 HD1, relating to agriculture, also drew broad support. A committee question focused on the bill’s definition of “necessary supplies,” and the Hawaii Farm Bureau said the language was broad enough to cover the inputs farmers need, including transportation-related costs, and would help reduce production costs and food prices. HB 2155 HD1, relating to agricultural statistics, prompted testimony in support of better data collection to help Hawaii compete for federal agriculture funding. The Department of Agriculture and Biosecurity explained that its role would focus on production, import, and export data, distinct from the scientific data collected by another unit, and said it wanted an electronic system tied to existing manifest and GIS tools to avoid duplicative clipboard-based collection. HB 1831 HD1, relating to agricultural lands, was heard with support and no questions. HB 1650 HD1, relating to environmental assessments, drew opposition from several individuals who argued it would weaken environmental protections and resident input; no action was taken. The committee then heard HB 1652 HD1, relating to storm water management systems. The engineering industry supported clarifying that low-risk green stormwater infrastructure such as rain gardens, bioswales, and permeable pavement should not be treated like detention or retention ponds subject to fencing and other safety requirements. Opponents, including family members affected by a drowning and other residents, argued the bill would weaken Act 281’s safety protections and increase liability. The Hawaii Farm Bureau questioned whether agricultural water infrastructure should be exempted from the fencing requirements and said the costs would vary by system, but the committee did not take final action during the hearing.

Transcript Highlights:

• primarily relies on in-state refineries for its gasoline supply.
• Lastly, supply-side issues also contribute to higher California prices.
• The state and more closures on the horizon, California faces severe supply chain issues and ultimately
• The second bucket is to improve investment confidence system-wide across the value chain.
• Our supply has declined more rapidly. And that imbalance is what has brought us here today.

Summary: The Assembly Natural Resources Committee heard three major bills. SB 237, by Senator Grayson, proposed a package of fuel-supply and permitting changes aimed at stabilizing gasoline prices during California’s energy transition. Supporters, including state officials, Kern County representatives, labor groups, and industry groups, said it would help retain in-state refining and drilling capacity, reduce price spikes, and protect jobs. Opponents, including environmental justice and conservation groups, argued it would expand oil drilling without enough community protections and would not meaningfully address climate goals. After extensive testimony and questions about emissions, sunsets, and long-term strategy, the committee passed SB 237 on a due pass vote, with some members voting no or not voting. SB 352, by Senator Reyes, sought to strengthen implementation of AB 617, the community air protection program, by codifying the Environmental Justice Bureau in the Department of Justice, extending monitoring requirements, and requiring annual legislative reporting. Supporters said the bill would improve accountability and ensure that funding for impacted communities actually produces emissions reductions. Some environmental justice advocates were neutral or not fully supportive because they wanted stronger language, while business and industry groups opposed the bill, arguing it was added late and duplicated existing processes. The committee approved SB 352 on a due pass vote. SB 840, by Senator Limon, was the cap-and-invest reauthorization package. It would update offset protocols, adjust how revenues are spent, and continue funding for key climate, housing, transit, and community programs, including AB 617. Support came from environmental groups, labor, local governments, housing advocates, and clean transportation organizations, while some agricultural interests objected that the package did not sufficiently prioritize climate-smart agriculture and methane reduction programs. The committee passed SB 840 on a due pass vote as well. All three measures were later confirmed out of committee after calls were lifted.

Transcript Highlights:

• We're already supplying the money, the financing.
• These solutions may include facilitating more advanced equipment procurement to mitigate supply chain
• There's supply chain that we'll talk about next. That is a huge issue.
• We fully support additional Marshall Plan-type effort to create more supply chain equipment.
• A key component of this rise is a broken grid equipment supply chain.

Committee: House Utilities and Energy

Transcript Highlights:

• And the liquidity in the market is really defined in terms of days of supply, which is how much supply
• chain.
• And we made modeling assumptions about supply, what we envision would happen with supply.
• Supply and demand, we do... I mean, we're looking at this right now. Supply and demand.
• That's why we don't have supply.

Committee: House Utilities and Energy

Summary: The Assembly Committee on Utilities and Energy held its annual oversight hearing on the transportation fuels sector, focused on refinery closures, gasoline supply and prices, in-state oil production, and implementation of SBX1-2 and ABX2-1. The chair emphasized that California needs a system-wide transition plan to manage the decline in fossil fuel demand while avoiding supply shocks and consumer harm, especially in light of Phillips 66’s planned refinery changes and Valero’s announced intent to close its Benicia refinery. CEC Vice Chair Siva Gunda and CARB Chair Liane Randolph described the broader fuel transition: EV adoption is rising, gasoline demand is declining, and California’s refining system is increasingly tight and interconnected with imports, storage, pipelines, and marine terminals. Randolph reviewed CARB’s climate and air-quality programs, including the low-carbon fuel standard, and said California still has major ozone and particulate pollution problems even as emissions have fallen. Both agencies stressed that the state must balance climate goals, air quality, consumer protection, and investor confidence, and that additional refinery closures could increase price volatility and strain supply. DPMO Director Ty Milder presented new data on gasoline pricing, saying Californians have paid a “mystery gasoline surcharge” of about 41 cents per gallon since 2015, with higher branded gasoline markups and elevated industry margins concentrated among vertically integrated firms. He said the data show some refiners do well while others struggle, and that the market is highly concentrated. Committee members questioned whether the data proved manipulation or whether state regulations and declining supply were contributing to refinery exits and higher prices. Witnesses said no specific consumer-cost threshold is used in CARB’s economic analysis, and CEC officials said they have not yet implemented the new permissive tools because they are still evaluating whether the benefits outweigh the risks. No votes were taken.

Transcript Highlights:

• And it reminds me of some of the lessons we learned during COVID about depending on supply lines instead
• I think Bill 698 did a great step in that direction to help the state be able to supply the milk for
• We have the FDA, USDA, other groups that look into how that food chain is secured.
• chain, and other industry. ...for culinary school, other supply chain, and other industries that are
• We're looking at ways we can supply those.

Summary: The committee first approved the minutes from its October 27 meeting and then heard testimony from Clinton Ballard of Milk and Honey Hill Farm about the impact of Act 698 on raw dairy producers. Ballard said the law allowed his farm to expand from one cow to 12, serve about 150 families, increase sales by roughly $50,000, and sell about $10,000 in raw cheese and other products through retail outlets. He argued the law improved farm income, food security, and local supply, and he asked for an optional state inspection/certification path for raw milk producers so they could access USDA grants and other opportunities available to licensed dairies. Committee members asked about herd management, safety practices, bee production, market channels, and whether such certification should remain voluntary; Ballard said he follows Grade A-style sanitation, chills milk quickly, removes sick cows from production, and supports optional training or inspection but not mandatory regulation. Members also raised food safety concerns, especially for children and pregnant women, and Ballard responded that raw milk producers rely on cleanliness, rapid cooling, consumer feedback, and truth in labeling. He said the health department currently inspects commercial dairies but not raw milk producers who do not sell through a cooperative, and he believed state inspection would help producers distinguish themselves and qualify for funding without changing interstate rules. Several members discussed the balance between consumer choice, safety, and possible “mission creep” if the state created a certification system. The committee then heard a lengthy presentation from Terence Bolden of TLB Enterprises on hydroponic and container farming as a response to food insecurity and food deserts. Bolden described a three-year workforce and career-technical program built around retrofitted shipping containers, drones, robotics, agribusiness, and AI, with partnerships involving schools, universities, Farm Bureau, UAPB, the Little Rock School District, and other entities. He said the model could create year-round local food production, support school cafeterias and community markets, and generate jobs and economic impact, estimating at least four jobs per container and potentially significant regional economic benefits. Members asked about costs, target communities, energy needs, crop types, and implementation timelines; Bolden said the first containers for school sites could be in place by late summer or early fall, with pilot projects already underway in Arkansas and Orlando. The meeting adjourned after no further business.

Transcript Highlights:

• I think Bill 698 did a great step in that direction to help the state be able to supply the milk for
• We have the FDA, USDA, and other groups that look into how that food chain is secured.
• chain and other industry.
• For culinary school, other supply chain, and other industries that are not direct farming or a new tech
• We're looking at ways we can supply those.

Committee: All AGRICULTURE- HOUSE SMALL BUSINESS & ECONOMIC DEV. SUBCOM.