Big Tech or the Teamsters?

By Dustin Gardiner, Lara Korte and Sejal Govindarao

A self-driving truck is pictured at the Pittsburgh International Airport. California legislators are supporting a measure to ensure robotrucks don’t come to the state, but Gov. Gavin Newsom opposes the bill. | Gene J. Puskar/AP Photo

THE BUZZ — The union-backed effort to ban driverless big rigs from operating on California’s highways has sailed through the Legislature. But the bill faces a roadblock that could be impassable: Gov. Gavin Newsom.

In a rare flex of Executive Branch muscle, three state agencies released formal opposition letters on the same day last week blasting Assembly Bill 316 by Cecilia Aguiar-Curry. Newsom rarely weighs in on pending legislation before it hits his desk, so his administration’s foray is widely seen as a veto threat.

The bill would prohibit autonomous heavy-and-medium-duty trucks unless a driver is behind the wheel, a ban that could only be reversed by a future Legislature.

As our colleague Jeremy B. White reports today, Newsom is siding with the home-grown autonomous vehicle industry at the same time legislative Democrats — both in the state Legislature and in Congress — want to pump the brakes. A backlash to driverless vehicles has been building in recent weeks, as AB316 progresses and San Francisco city leaders unsuccessfully fought a rollout of robotaxis.

Newsom, a longtime ally of Silicon Valley, is sending a clear signal that he prioritizes the state’s economic competitiveness over concerns about job losses and road safety voiced by unions, city officials and leading lawmakers.

“Our state is on the cusp of a new era and cannot risk stifling innovation at this critical juncture,” Dee Dee Myers, director of the Governor’s Office of Business and Economic Development, wrote in a letter to legislators opposing the bill.

On the same day, the California DMV Director Steve Gordon sent another ominous-sounding letter to legislators, warning the bill would “have a chilling effect on the development of technology in California that is intended to result in increased safety benefits on our roadways.” The triumvirate of agency opposition included an unfavorable analysis from Newsom’s Department of Finance.

Self-driving cars have logged millions of miles on California roads, but the state has yet to allow for fully driverless trucks, even as Texas and Arizona let autonomous trucks cruise their roads without humans on board. Such trucks are already banned by agency regulations, but AB316 would give the Legislature the power to make it permanent.

The autonomous vehicle industry argues dissenters are stalling an innovation that has already arrived and will bolster public safety and efficiency. Legislators have responded that they’re merely being proactive in making regulations.

“They think I’m not embracing the future,” Aguiar-Curry said. “But I am, because I think if we don’t do it right, the first thing that’s going to happen is we’ll be on the front page of the paper for what we’ve done wrong.”

Organized labor has forced the issue at the Capitol — AB316 is sponsored by the California Labor Federation, which represents the Teamsters. Union leaders worry the use of automated trucks for long-haul shipping could eventually cause hundreds of thousands of truckers to lose their jobs.

If legislators don’t cave to Newsom’s veiled veto threat, the standoff will test the Democratic governor’s alliance with tech when he faces the prospect of angering one of the state’s most formidable labor giants.

A message from The Nature Conservancy:

Pass a $15B Climate Bond for People and Nature

From drought to megafires, climate change is increasing the frequency and severity of catastrophic events in California. While nature can achieve one-third of the greenhouse gas reductions needed to make our climate safer, nature-based solutions are significantly underfunded. But if we take steps now to ensure nature thrives, we can change our state’s trajectory. A well-funded $15 billion climate bond is California’s best path to resilience.

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SUBSCRIBE TO CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So we have something cool for you: A brand-new California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Cut through the jargon and get the latest developments in California as lawmakers and industry leaders adapt to the changing climate. Subscribe now to California Climate to keep up with the changes.

State Sen. Melissa Hurtado in 2018. The lawmaker on Tuesday formally launched her campaign for California’s 22nd Congressional District. | Rich Pedroncelli/AP Photo

DEM ON DEM — State Sen. Melissa Hurtado is officially running for California’s 22nd Congressional District, setting up a primary challenge with former Central Valley Assemblymember Rudy Salas ahead of what is expected to be one of the most closely watched general election races in the nation.

Hurtado, who barely fended off a challenge from Republican Steve Shepard last year, has been eyeing the congressional seat for weeks, but formally launched her campaign on Tuesday. The youngest-ever woman elected to the Legislature’s upper chamber, Hurtado touts herself as representing “a new generation of Latina leaders.”

The state senator first won her Central Valley seat in 2018 by flipping the district away from Republican state Sen. Andy Vidak — a maneuver she’s hoping to repeat with GOP Rep. David Valadao in 2024. But first, she’ll have to get past Salas, who came within three points of beating Valadao last year and is looking for a rematch.

CA-22 is set to be one of the most competitive races in America next year, with the path to control of the House running directly through the Central Valley. It’s top of mind of both parties and expected to bring in a sizable amount of outside spending as Republicans try to keep their white-knuckled grip on a five-seat margin of majority and Democrats look to pry it away.

Salas was one of the DCCC’s top recruits in the last cycle. Party officials saw him as an ideal candidate to unseat Valadao, who lost the rural district in 2018 and won it back two years later.

NOT-SO-HIP HANEY — A friendly game of interoffice softball landed one member of the Assembly in the hospital on Monday night.

San Francisco Democrat Matt Haney apparently dislocated his hip during an at-bat for the NorCal team. His office confirmed he was taken to a Sacramento hospital, where doctors returned his hip to its rightful socket. Fellow member Ash Kalra tagged along for moral support.

And if you’re wondering — yes, Haney did still hit the ball.

The northern coalition continued on valiantly without him — eventually securing victory over the southern counterparts (some of whom were stuck in their districts due to Tropical Storm Hilary).

Haney was back at work the next day, his office said, hip relocated and ready to work.

ANOTHER ONE — As if Republicans didn’t have a busy enough schedule for the end of September, the California GOP on Tuesday announced presidential candidate Vivek Ramaswamy will address the masses at the fall convention in Anaheim.

Ramaswamy will speak on Saturday, Sept. 30, joining the likes of fellow candidates Donald Trump, Ron DeSantis and Tim Scott.

Speaking of presidential candidates — With Trump declining the invite, Ramaswamy and DeSantis will be at the center of the action tonight in the GOP’s first presidential debate. Notably absent from the stage will be California’s own Larry Elder, who, after failing to qualify, is now threatening to sue the RNC to stop the debate.

The RNC seems unfazed. and the debate will continue as scheduled tonight on FOX starting at 6 p.m. PT.

Trump’s pre-recorded interview with former Fox host Tucker Carlson is set to air concurrently on X, formerly known as Twitter.

A message from The Nature Conservancy:

— "Hollywood studios make public their latest offer to striking writers," by The Wall Street Journal's Joe Flint: "Among the concessions the studios said they offered are a guaranteed minimum length of employment, controls around the use of generative AI and wage increases."

— “Toxic trash: California’s aging hazardous waste sites have troubling safety records,” by CalMatters’ Robert Lewis: “Neighbors to one of California’s biggest hazardous waste recyclers say they’re unfairly exposed to pollution, but can California afford to lose one of the few facilities that still takes toxic waste?”

— “‘City Hall is failing’: New report says San Francisco is broken, offers road map to fix it,” by the San Francisco Chronicle’s St. John Barned-Smith and J.D. Morris: “Giving the mayor more power would help fix what ails San Francisco, argues a new report published Tuesday by moderate community group TogetherSF and the Rose Institute of State and Local Government at Claremont McKenna College.”

— “What happened when a ‘hurriquake’ struck Ojai? Little damage, plenty of weird vibes,” by the Los Angeles Times’ Laura J. Nelson and Allen J. Schaben: “But before it was a joke, Sunday’s earthquake was strong enough to be scary.”

GROWING IN THE GOLDEN STATE: POLITICO California is growing, reinforcing our role as the indispensable insider source for reporting on politics, policy and power. From the corridors of power in Sacramento and Los Angeles to the players and innovation hubs in Silicon Valley, we're your go-to for navigating the political landscape across the state. Exclusive scoops, essential daily newsletters, unmatched policy reporting and insights — POLITICO California is your key to unlocking Golden State politics. LEARN MORE.

TRANSITIONS — Angela Nguyen is now operations manager for Rep. Zoe Lofgren (D-Calif.). She was scheduler and continues in her role as a congressional aide for Lofgren.

Assembly Health Committee Chief Consultant Rosielyn Pulmano is headed to Speaker Robert Rivas' office to work as his health policy adviser.

BIRTHDAYS — Former California Gov. Pete Wilson (9-0) … Stephen Miller … Bradley Singer of WME

WAS TUESDAY: Adlai Wertman ... Stuart Graiwer

MEA CULPA — Tuesday’s Playbook incorrectly stated the total transit advocates say would be needed to sustain Bay Area agencies over the next five years. It is $2.5 billion.

A message from The Nature Conservancy:

Nature’s Future Is Our Future

Without intervention, the cost of climate change to California is estimated to reach $113 billion annually by 2050 (CNRA’s Fourth Climate Assessment). By harnessing the climate change fighting power of nature, we can curb these costs. But in order for this to happen, we must invest in nature.

With the reality of state budget cuts, California needs to lock down a stable, long-term source of funding for nature-based climate solutions to protect our planet before it’s too late. In order to make this happen, California needs a climate bond. If we fail to invest in nature, we will lose one of the most important allies in our battle with climate change.

California Legislature: A $15 billion climate bond is essential to funding the nature-based solutions needed to protect our planet.

CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this -only service offers, click here.

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Dustin Gardiner @dustingardiner Lara Korte @lara_korte POLITICO California @politicoca

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