| | | | |  | | By Jeremy B. White, Lara Korte, Matthew Brown and Ramon Castanos | Presented by Elected Officials to Protect America - Code Blue | THE BUZZ: Gov. Gavin Newsom is accelerating to the finish line of his quest to cap oil profits. After scant concrete progress in the months after Newsom revealed his plan to tax — and then penalize — excessive energy earnings, things have started to move. Last Wednesday, the governor revealed his proposal to have the Energy Commission look under the hood of the oil and gas industry and level penalties if warranted. Monday, the governor trumpeted a deal with legislative leaders as newly printed language started the 72-hour countdown to vote eligibility. Newsom could have the bill on his desk before lawmakers leave for recess at the end of the month. It’s set to go before the Senate’s special energy committee on Wednesday ahead of a potential floor vote on Thursday, which would shift the action to the Assembly next week. That compressed timeline poses a challenge. But the administration is hoping to move swiftly and outflank the oil industry before it can fully mobilize against the new plan. The governor has invested capital and credibility in that happening. He has spent months excoriating an energy industry that has opposed his climate agenda in the Legislature and at the ballot box. He’s also had to ease the concerns of Democratic lawmakers who are unhappy with exorbitant oil prices but wary of an approach that demands they pass a tax, exacerbates the problem it’s meant to solve, or fails to make much of a difference. Their solution was to elevate the regulators, empowering the Energy Commission to decipher a cryptic economic sector and — possibly — swing the hammer at violators. Senate and Assembly working groups have blessed the product. Newsom and legislative leaders will need to bring along some of their colleagues. Monday’s announcement indicates legislative leaders see a path to the necessary votes. Lawmakers describe Newsom as highly engaged on this issue. That’s a contrast to times when his perceived aloofness has strained relations with the Legislature. It also echoes last year’s end-of-session climate push, when Newsom activated late but ultimately persuaded lawmakers to pass a suite of ambitious bills (and keep Diablo Canyon running). The oil penalty campaign grew out of that climate crusade. The 2022 bill-signing window hadn’t closed yet when Newsom announced his plan for “a windfall tax to ensure excess oil profits go back to help millions of Californians.” That’s no longer what he’s talking about. But he’s still determined to rein in the oil industry — and we’ll soon see whether the Legislature is on the same page. HAPPY HOUR ALERT — You've seen us in your inboxes, now come see us at a bar! Join Jeremy, Lara and the rest of the POLITICO California team on Wednesday at Smic's in downtown Sacramento. Grab a drink and get to know the crew. Cocktails and conversations start flowing at 6 p.m. RSVP here. BUENOS DÍAS, good Tuesday morning. Is the Board of Equalization obsolete? A trio of Assembly Democrats are talking up their constitutional amendment today to eliminate the tax overseer (and its four elected members). The Senate Housing Committee is also set to consider a pair of closely watched bills, authored by chair Scott Wiener, to expedite building on church land and in cities falling short of statewide targets. Got a tip or story idea for California Playbook? Hit us up at jwhite@politico.com and lkorte@politico.com or follow us on Twitter @JeremyBWhite and @Lara_Korte. QUOTE OF THE DAY: “I was very worried that, because of the sense of hopelessness, despair, and fear and anger, citizens were going to go along with the idea of criminalizing homelessness. That’s why it feels full circle. I never thought about running for mayor, and I was not planning on leaving Congress, but, when it became very clear that the city could take a more conservative direction, that was my motivation to come home.” Los Angeles Mayor Karen Bass on why she ran, via The New Yorker. BONUS QOTD: “Don’t write that down. Just say ‘she burped.’” Rep. Nancy Pelosi after mentioning Donald Trump, via the Los Angles Times. TWEET OF THE DAY:
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LizShuler | WHERE’S GAVIN? Nothing official announced.
| | | | A message from Elected Officials to Protect America - Code Blue: Five oil refiners produce nearly all of California’s gasoline. In 2022, refiners used their market dominance to set high gasoline prices, making excessive profits while Californians struggled to make ends meet. Californians paid $2.61/gallon more than the national average while refiners tripled their yearly profits. Vote yes on SBX1-2 to hold Big Oil accountable by creating transparency and oversight of oil markets while authorizing the CEC to impose a price gouging penalty. | | | |  | TOP TALKERS | | — “Mobile home parks need help. What's California doing?” by CalMatters’ Manuela Tobias: “It’s hard to believe that the park — now a barren dirt field dotted by a few remaining trailers that are home to about a dozen residents — and its issues are well known to the state of California. Inspectors at the California Department of Housing and Community Development, which oversees health and safety at California’s mobile home parks, started documenting Stockton Park Village’s deterioration in February 2019 when it went out to inspect one of dozens of health and safety complaints it received starting in 2018.”
| | | | PLAYBOOK MEET & GREET HAPPENING TOMORROW: Join California Playbook and POLITICO’s growing team in Sacramento at Smic’s Sip & Quip tomorrow, March 22, 2023, for an evening of cocktails and conversation. As POLITICO expands in California, we want to more frequently convene our most influential readers in Sacramento and beyond. Swing by and have a cocktail on us—you never know who you might run into! Register here. | | | | | | | CAMPAIGN MODE | | — Network of S.F. 'tech families' will spend millions to influence big-ticket policy issues, by The San Francisco Standard’s Josh Koehn: “Abundant SF, whose name gives a nod to a line in President Franklin D. Roosevelt’s 1937 inaugural address, is seeking to make a sustained investment in YIMBY ballot measures and candidates who are ideologically aligned on the group’s core tenets, according to more than a dozen people who are familiar with the organization.” DON'T CALL IT A COMEBACK — “Tim Sheridan plans run against Rep. Ken Calvert in 2024 election,” by The Press-Enterprise’s Jeff Horseman: “Democrat and Lake Elsinore City Councilmember Tim Sheridan announced Monday, March 20, that he plans to challenge Rep. Ken Calvert, R-Corona in 2024 in the race for the 41st Congressional District seat encompassing parts of western Riverside County.”
| | | | A message from Elected Officials to Protect America - Code Blue:   | | | | | CALIFORNIA AND THE CAPITOL CORRIDOR | | — “Unions and environmentalists push for California referendum reform,” by the Los Angeles Times’ Taryn Luna: “Assemblymember Isaac Bryan (D-Los Angeles) is introducing a proposal this week to reform state elections law by making it more difficult for campaigns to mislead voters when circulating petitions to qualify a statewide referendum. The bill marks the latest showdown in a proxy war between labor and business at the state Capitol and could become one of the most high-profile political fights in California this year.” RX RENT — “Prescription for housing? California wants Medicaid to cover 6 months of rent,” by the Los Angeles Times’ Angela Hart: “States are barred from using federal Medicaid dollars to pay directly for rent, but California’s governor is asking the administration of President Biden, a fellow Democrat, to authorize a new program called “transitional rent,” which would provide up to six months of rent or temporary housing for low-income enrollees who rely on the state’s healthcare safety net — a new initiative in his arsenal of programs to fight and prevent homelessness.” — “Oakland’s DA urges more lenient sentences even amid fears over crime,” by The Washington Post’s Scott Wilson: “Price’s approach will provide a stark test of whether some of California’s most liberal voters will continue to support more-lenient approaches to prosecution and imprisonment at a time of rising gun violence, street crimes and homicides. Those who have tried to carry out similar programs have found that the public’s patience is thin in this liberal state with a historical affinity for conservative, tough-on-crime measures.” — “Anxious wait for working mothers as last of California’s pandemic relief set to expire,” by The Fuller Project’s Courtney E. Martin: “The impact of the relief initiatives led to many anti-poverty advocates calling for them to be made permanent. Instead, these state and federal relief dollars have all but disappeared, with critics saying the policies are too sweeping and should instead be targeted towards a middle class struggling to cope with inflation.” A THIRD-PARTY PARTY — “S.F. spent $5.8 billion on city contracts last year. Here's where the money goes,” by the San Francisco Chronicle’s Nami Sumida: “San Francisco receives a variety of goods and services through contracts. As of late January, the city and county government had 10,900 active contracts with more than 4,000 nonprofit organizations and for-profit companies.”
| | BIDEN, HARRIS AND THE HILL | | — “Kamala Harris prepares to hit the road for Biden despite cracks in her support,” by The Wall Street Journal’s Tarini Parti: “At one recent Zoom event organized by a former speechwriter for Mr. Biden, one of the Democrats aired frustrations with Ms. Harris, questioning whether she would be a liability to the 2024 ticket, according to people familiar with the call. Former California Sen. Barbara Boxer responded saying they could share concerns with Mr. Biden if they wanted.” — “Biden will let California lead on electric trucks, despite industry protest,” by The Washington Post’s Anna Phillips: “The Environmental Protection Agency intends to grant California “waivers” to enforce environmental rules that are significantly tougher than federal requirements and that state regulators have already approved, said these individuals, who spoke on the condition of anonymity because the announcement was not yet public.”
| | SILICON VALLEYLAND | | — “Antisemitic tweets soared on Twitter after Musk took over, study finds,” by The Washington Post’s Cristiano Lima and David DiMolfetta: “The study, which used machine-learning tools to identify likely antisemitic tweets, found that the average weekly number of such posts “more than doubled after Musk’s acquisition” — a trend that has held in the months after Musk took over.”
| | | | A message from Elected Officials to Protect America - Code Blue: California lawmakers must protect families from Big Oil’s greed. SBX1-2 will hold Big Oil refiners accountable by mandating transparency and oversight of oil markets while authorizing the California Energy Commission to impose civil penalties on refiners who have engaged in price gouging.. Chevron, Marathon, Phillips 66, Valero and PBF Energy produce 98% of the gasoline consumed in California and in 2022, they used their market dominance to nearly triple their yearly profits by hiking up the price of gas. Last year, California families struggled to make ends meet as they were charged $2.61/gallon more than the national average. SBX1-2 will establish a new independent watchdog to deter Big Oil from ripping off Californians, while improving transparency in the oil industry so the state can root out the causes of pricing irregularities. Learn more | | | | | MIXTAPE | | — “CalPERS to pay $800 million settlement over claims it misled retirees on costs of long-term care insurance,” by CalMatter’s Adam Ashton. — “San Francisco is dying, and I’m leaving — write your own Mad Libs-type story!” by Mission Local’s Joe Eskenazi.
| | BIRTHDAYS | | Cole Zucker … Sophie Theis
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