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Cannella introduces bill to ensure California companies get full benefit of air quality regs

SACRAMENTO – State Sen. Anthony Cannella (R-Ceres) said he introduced Senate Bill 358 to ensure California companies receive the full benefit of state grant funding designed to support efforts to meet and exceed California’s rigorous air quality regulations by exempting these grants from the state income tax.

“Companies that are working to comply with our state’s environmental regulations ahead of schedule and above the minimum requirements should be rewarded – not penalized – for their efforts to meet and exceed our state’s rigorous air quality standards,” Cannella said in a news release. “My bill will ensure these businesses receive the full benefit of the state grants available to support their efforts to reduce air pollution by modernizing truck fleets and using cleaner technologies.”

California’s air quality standards are among the highest in the nation, and companies across the state are working diligently to comply with the strict regulations established by the California Air Resources Board (CARB), according to the news release. Businesses that comply with these regulations ahead of schedule or that exceed the minimum standards are eligible for grant funding from CARB to help cover the high cost of modernizing their truck fleets or purchasing cleaner technology. However, companies must pay state income taxes on these grant funds, diminishing their benefit, according to the news release.

SB 358 provides companies greater incentives to fulfill our state’s environmental quality regulations ahead of schedule and to invest in technologies that minimize air pollution by exempting this grant funding from state income taxes, the news release said. In doing so, the bill will help advance California’s commitment to reduce air pollution, while also supporting our state’s job creators and employers.

“Clean air is integral to supporting a healthy quality of life, and Sen. Cannella’s bill will go a long way to help San Joaquin Valley businesses that share our commitment to protecting California’s environment for future generations,” Pete Weber, chair of the Air Quality Work Group of the California Partnership for the San Joaquin Valley, said in a news release. “We are proud to support SB 358 and look forward to working with legislators on both sides of the aisle to pass this measure.”