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She focuses on how housing gets built across the Bay Area. Before joining KQED in 2020, she reported for WUNC in Durham, North Carolina, WABE in Atlanta, Georgia and Capital Public Radio in Sacramento. In 2017, she was awarded a Kroc Fellowship at NPR where she reported on everything from sprinkles to the Golden State Killer's arrest. When she's not reporting, she's baking new recipes in her kitchen or watching movies with friends and family. She's originally from Georgia and has strong opinions about Great British Bake Off.","avatar":"https://secure.gravatar.com/avatar/868129c8b257bb99a3500e2c86a65400?s=600&d=blank&r=g","twitter":"oddity_adhiti","facebook":null,"instagram":null,"linkedin":null,"sites":[{"site":"arts","roles":["author"]},{"site":"news","roles":["editor"]}],"headData":{"title":"Adhiti Bandlamudi | KQED","description":"KQED Housing Reporter","ogImgSrc":"https://secure.gravatar.com/avatar/868129c8b257bb99a3500e2c86a65400?s=600&d=blank&r=g","twImgSrc":"https://secure.gravatar.com/avatar/868129c8b257bb99a3500e2c86a65400?s=600&d=blank&r=g"},"isLoading":false,"link":"/author/abandlamudi"},"bkrans":{"type":"authors","id":"11923","meta":{"index":"authors_1716337520","id":"11923","found":true},"name":"Brian Krans","firstName":"Brian","lastName":"Krans","slug":"bkrans","email":"bkrans@kqed.org","display_author_email":false,"staff_mastheads":["news"],"title":"KQED Contributing Reporter","bio":"Brian Krans is an award-winning local news and investigative reporter who has been proudly working as a general assignment reporter for KQED since August 2023. He lives in Richmond, where he also reports on air pollution for Richmondside. He is also a founding member of the Vallejo Sun.","avatar":"https://secure.gravatar.com/avatar/d1014d604089314a94807d2c4f2d3e06?s=600&d=blank&r=g","twitter":"citizenkrans","facebook":null,"instagram":null,"linkedin":null,"sites":[{"site":"news","roles":["editor"]}],"headData":{"title":"Brian Krans | KQED","description":"KQED Contributing Reporter","ogImgSrc":"https://secure.gravatar.com/avatar/d1014d604089314a94807d2c4f2d3e06?s=600&d=blank&r=g","twImgSrc":"https://secure.gravatar.com/avatar/d1014d604089314a94807d2c4f2d3e06?s=600&d=blank&r=g"},"isLoading":false,"link":"/author/bkrans"}},"breakingNewsReducer":{},"campaignFinanceReducer":{},"pagesReducer":{},"postsReducer":{"stream_live":{"type":"live","id":"stream_live","audioUrl":"https://streams.kqed.org/kqedradio","title":"Live Stream","excerpt":"Live Stream information currently unavailable.","link":"/radio","featImg":"","label":{"name":"KQED Live","link":"/"}},"stream_kqedNewscast":{"type":"posts","id":"stream_kqedNewscast","audioUrl":"https://www.kqed.org/.stream/anon/radio/RDnews/newscast.mp3?_=1","title":"KQED Newscast","featImg":"","label":{"name":"88.5 FM","link":"/"}},"news_12010035":{"type":"posts","id":"news_12010035","meta":{"index":"posts_1716263798","site":"news","id":"12010035","score":null,"sort":[1729434640000]},"guestAuthors":[],"slug":"alameda-hospital-among-those-scrambling-to-meet-earthquake-retrofit-deadline","title":"Alameda Hospital Among Those Scrambling to Meet Earthquake Retrofit Deadline","publishDate":1729434640,"format":"standard","headTitle":"Alameda Hospital Among Those Scrambling to Meet Earthquake Retrofit Deadline | KQED","labelTerm":{"term":20286,"site":"news"},"content":"\u003cp>More than half of the 410 hospitals in California have at least one building that likely wouldn’t be able to operate after a major earthquake hit their region, and with many institutions claiming they don’t have the money to meet a 2030 legal deadline for earthquake retrofits, the state is now granting relief to some while ramping up pressure on others to get the work done.\u003c/p>\n\u003cp>Gov. Gavin Newsom in September vetoed legislation championed by the California Hospital Association that would have allowed all hospitals to apply for an extension of the deadline for up to five years. Instead, the Democratic governor signed a more narrowly tailored bill that allows small, rural, or “distressed” hospitals to get an extension of up to three years.\u003c/p>\n\u003cp>“It’s an expensive thing and a complicated thing for hospitals — independent hospitals in particular,” said Elizabeth Mahler, an associate chief medical officer for Alameda Health System, which is undertaking a $25 million retrofit of its hospital in Alameda.\u003c/p>\n\u003cp>The debate over how seismically safe California hospitals should be dates to the 1971 Sylmar quake near Los Angeles, which prompted a law requiring new hospitals to be built to withstand an earthquake and continue operating. In 1994, after the magnitude 6.7 Northridge quake killed at least 57 people, lawmakers required existing facilities to be upgraded.\u003c/p>\n\u003cp>The two laws have left California hospitals with two sets of standards to meet. The first — which originally had a deadline of 2008 but was pushed to 2020 — required hospital buildings to stay standing after an earthquake. About 20 facilities have yet to meet that requirement for at least one of their buildings, although some have received extensions from the state.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Many more — 674 buildings spread across 251 licensed hospitals — do not meet the second set of standards, which require hospital facilities to remain functional in the event of a major earthquake. That work is supposed to be done by 2030.\u003c/p>\n\u003cp>“The importance of it is hard to argue with,” said Jonathan Stewart, a professor at UCLA’s Samueli School of Engineering, citing a 2023 earthquake in Turkey that damaged or destroyed multiple hospitals. “There were a number of hospitals that were intact but not usable. That’s better than a collapsed structure. But still not what you need at a time of emergency like that.”\u003c/p>\n\u003cp>The influential hospital industry has unsuccessfully lobbied lawmakers for years to extend the 2030 deadline, though the state has granted various extensions to specific facilities. Newsom’s signature on one of the three bills addressing the issue this year represents a partial victory for the industry.\u003c/p>\n\u003cp>Hospital administrators have long complained about the steep cost of seismic retrofits.\u003c/p>\n\u003cp>“While hospitals are working to meet these requirements, many will simply not make the 2030 deadline and be forced by state law to close,” wrote Carmela Coyle, president and CEO of the California Hospital Association, in a letter to Newsom before he vetoed the CHA bill. A \u003ca href=\"https://www.rand.org/news/press/2019/03/28.html\">2019 Rand Corp. study\u003c/a> paid for by the CHA pinned the price of meeting the 2030 standards at between $34 billion and $143 billion statewide.\u003c/p>\n\u003cp>[aside label='Related Coverage' tag='health']\u003c/p>\n\u003cp>Labor unions representing nurses and other medical workers, however, say the hospitals have had plenty of time to get their buildings into compliance and that most have the money to do so.\u003c/p>\n\u003cp>“They’ve had 30 years to do this,” Cathy Kennedy, a nurse in Roseville and one of the presidents of the California Nurses Association, said in an interview prior to the governor’s action. “We are kicking the can down the road year after year, and unfortunately, lives are going to be lost.”\u003c/p>\n\u003cp>In his veto message on the CHA bill, Newsom wrote that a blanket five-year extension wasn’t justified and that any extension “should be limited in scope, granted only on a case-by-case basis to hospitals with demonstrated need and a clear path to compliance, and in combination with strong accountability and enforcement mechanisms.”\u003c/p>\n\u003cp>He also vetoed a bill directed specifically at helping several hospitals operated by Providence, a Catholic hospital chain.\u003c/p>\n\u003cp>But he signed a third bill, which allows small, rural, and “critical access” hospitals, and some others, to apply for a three-year extension and directs the Department of Health Care Access and Information to offer them “technical assistance” in meeting the deadline.\u003c/p>\n\u003cp>The state designates 37 hospitals as providing “critical access,” while 56 are considered “small,” meaning they have fewer than 50 beds, 59 are considered “rural,” and 32 are “district” hospitals, meaning special government entities fund them called “health care districts.” They can seek a three-year extension as long as they submit a seismic compliance plan and identify milestones for implementing it.\u003c/p>\n\u003cp>Debi Stebbins, executive director of the Alameda Health Care District, which owns the Alameda Hospital buildings, said small hospitals face a big challenge. Even though Alameda is very close to San Francisco and Oakland, the tunnels, bridges, and ferries that connect it to the mainland could easily be shut in an emergency, making the island’s hospital a lifeline.\u003c/p>\n\u003cp>“It’s an unfunded mandate,” Stebbins said of the state’s 2030 deadline.\u003c/p>\n\u003cp>The Rand study estimated the average cost of a retrofit at \u003ca href=\"https://www.rand.org/pubs/research_reports/RR3059.html\">more than $92 million\u003c/a> per building, but the amount could vary greatly depending on whether it’s a building that houses hospital beds.\u003c/p>\n\u003cp>Small and rural hospitals can get some aid from the state via grants financed by the California Electronic Cigarette Excise Tax, but HCAI spokesperson Andrew DiLuccia said it would yield just $2-3 million total annually. He added that the Small and Rural Hospital Relief Program has also received a one-time infusion of $50 million from a tax on health insurers to help with the seismic work.\u003c/p>\n\u003cp>Labor unions and critics of the extensions often point to the large profits that some hospitals reap: A California Health Care Foundation report published in August found that California’s hospitals made $3.2 billion in profit during the first quarter of 2024. The study notes that there “continues to be wide variation in financial performance among hospitals, with the bottom quartile showing a net income margin of -5%, compared to +13% for the top quartile.”\u003c/p>\n\u003cp>Stebbins has had to help her district figure out a plan.\u003c/p>\n\u003cfigure id=\"attachment_11937937\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11937937\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy-800x533.jpg\" alt='A beige building with \"Alameda Hospital\" written on it in blue lettering and a carpark in the foreground.' width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy.jpg 1568w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A view of Alameda Hospital, which serves the city of Alameda, on Jan. 3, 2023. Alameda Hospital sought a 2-year extension for seismic retrofits in 2022, but Gov. Gavin Newsom vetoed it. \u003ccite>(Martin do Nascimento for CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>After Newsom vetoed a bill in 2022 that would have granted an extension on the seismic retrofit deadline specifically for Alameda Hospital, the hospital system and its partner health care district used parcel tax money to help back \u003ca href=\"https://www.alamedahealthsystem.org/alameda-hospital-seismic-updates-and-faqs/\">a loan\u003c/a>.\u003c/p>\n\u003cp>The cost to retrofit will be about $25 million, and the system is also investing millions more into other projects, such as a new skilled nursing facility. The construction work is set to be completed in 2027.\u003c/p>\n\u003cp>“No one wants things crashing in an earthquake or anything else, but at the same time, it’s a burden,” Mahler, the Alameda Health System associate chief medical officer, said. “How do we make sure that they get what they need to stay open?”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cem>This article was produced by \u003c/em>\u003ca href=\"https://kffhealthnews.org/about-us\">\u003cem>KFF Health News\u003c/em>\u003c/a>\u003cem>, which publishes \u003c/em>\u003ca href=\"http://www.californiahealthline.org/\">\u003cem>California Healthline\u003c/em>\u003c/a>\u003cem>, an editorially independent service of the \u003c/em>\u003ca href=\"http://www.chcf.org/\">\u003cem>California Health Care Foundation\u003c/em>\u003c/a>\u003cem>.\u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"Alameda Health System's facility is among the California hospitals that would take major damage during a large earthquake, as state lawmakers pressure hospital systems to meet a 2030 deadline for retrofits.","status":"publish","parent":0,"modified":1729286549,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":29,"wordCount":1299},"headData":{"title":"Alameda Hospital Among Those Scrambling to Meet Earthquake Retrofit Deadline | KQED","description":"Alameda Health System's facility is among the California hospitals that would take major damage during a large earthquake, as state lawmakers pressure hospital systems to meet a 2030 deadline for retrofits.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Alameda Hospital Among Those Scrambling to Meet Earthquake Retrofit Deadline","datePublished":"2024-10-20T07:30:40-07:00","dateModified":"2024-10-18T14:22:29-07:00","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"True","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"sticky":false,"nprByline":"Annie Sciacca","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/12010035/alameda-hospital-among-those-scrambling-to-meet-earthquake-retrofit-deadline","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>More than half of the 410 hospitals in California have at least one building that likely wouldn’t be able to operate after a major earthquake hit their region, and with many institutions claiming they don’t have the money to meet a 2030 legal deadline for earthquake retrofits, the state is now granting relief to some while ramping up pressure on others to get the work done.\u003c/p>\n\u003cp>Gov. Gavin Newsom in September vetoed legislation championed by the California Hospital Association that would have allowed all hospitals to apply for an extension of the deadline for up to five years. Instead, the Democratic governor signed a more narrowly tailored bill that allows small, rural, or “distressed” hospitals to get an extension of up to three years.\u003c/p>\n\u003cp>“It’s an expensive thing and a complicated thing for hospitals — independent hospitals in particular,” said Elizabeth Mahler, an associate chief medical officer for Alameda Health System, which is undertaking a $25 million retrofit of its hospital in Alameda.\u003c/p>\n\u003cp>The debate over how seismically safe California hospitals should be dates to the 1971 Sylmar quake near Los Angeles, which prompted a law requiring new hospitals to be built to withstand an earthquake and continue operating. In 1994, after the magnitude 6.7 Northridge quake killed at least 57 people, lawmakers required existing facilities to be upgraded.\u003c/p>\n\u003cp>The two laws have left California hospitals with two sets of standards to meet. The first — which originally had a deadline of 2008 but was pushed to 2020 — required hospital buildings to stay standing after an earthquake. About 20 facilities have yet to meet that requirement for at least one of their buildings, although some have received extensions from the state.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Many more — 674 buildings spread across 251 licensed hospitals — do not meet the second set of standards, which require hospital facilities to remain functional in the event of a major earthquake. That work is supposed to be done by 2030.\u003c/p>\n\u003cp>“The importance of it is hard to argue with,” said Jonathan Stewart, a professor at UCLA’s Samueli School of Engineering, citing a 2023 earthquake in Turkey that damaged or destroyed multiple hospitals. “There were a number of hospitals that were intact but not usable. That’s better than a collapsed structure. But still not what you need at a time of emergency like that.”\u003c/p>\n\u003cp>The influential hospital industry has unsuccessfully lobbied lawmakers for years to extend the 2030 deadline, though the state has granted various extensions to specific facilities. Newsom’s signature on one of the three bills addressing the issue this year represents a partial victory for the industry.\u003c/p>\n\u003cp>Hospital administrators have long complained about the steep cost of seismic retrofits.\u003c/p>\n\u003cp>“While hospitals are working to meet these requirements, many will simply not make the 2030 deadline and be forced by state law to close,” wrote Carmela Coyle, president and CEO of the California Hospital Association, in a letter to Newsom before he vetoed the CHA bill. A \u003ca href=\"https://www.rand.org/news/press/2019/03/28.html\">2019 Rand Corp. study\u003c/a> paid for by the CHA pinned the price of meeting the 2030 standards at between $34 billion and $143 billion statewide.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"Related Coverage ","tag":"health"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Labor unions representing nurses and other medical workers, however, say the hospitals have had plenty of time to get their buildings into compliance and that most have the money to do so.\u003c/p>\n\u003cp>“They’ve had 30 years to do this,” Cathy Kennedy, a nurse in Roseville and one of the presidents of the California Nurses Association, said in an interview prior to the governor’s action. “We are kicking the can down the road year after year, and unfortunately, lives are going to be lost.”\u003c/p>\n\u003cp>In his veto message on the CHA bill, Newsom wrote that a blanket five-year extension wasn’t justified and that any extension “should be limited in scope, granted only on a case-by-case basis to hospitals with demonstrated need and a clear path to compliance, and in combination with strong accountability and enforcement mechanisms.”\u003c/p>\n\u003cp>He also vetoed a bill directed specifically at helping several hospitals operated by Providence, a Catholic hospital chain.\u003c/p>\n\u003cp>But he signed a third bill, which allows small, rural, and “critical access” hospitals, and some others, to apply for a three-year extension and directs the Department of Health Care Access and Information to offer them “technical assistance” in meeting the deadline.\u003c/p>\n\u003cp>The state designates 37 hospitals as providing “critical access,” while 56 are considered “small,” meaning they have fewer than 50 beds, 59 are considered “rural,” and 32 are “district” hospitals, meaning special government entities fund them called “health care districts.” They can seek a three-year extension as long as they submit a seismic compliance plan and identify milestones for implementing it.\u003c/p>\n\u003cp>Debi Stebbins, executive director of the Alameda Health Care District, which owns the Alameda Hospital buildings, said small hospitals face a big challenge. Even though Alameda is very close to San Francisco and Oakland, the tunnels, bridges, and ferries that connect it to the mainland could easily be shut in an emergency, making the island’s hospital a lifeline.\u003c/p>\n\u003cp>“It’s an unfunded mandate,” Stebbins said of the state’s 2030 deadline.\u003c/p>\n\u003cp>The Rand study estimated the average cost of a retrofit at \u003ca href=\"https://www.rand.org/pubs/research_reports/RR3059.html\">more than $92 million\u003c/a> per building, but the amount could vary greatly depending on whether it’s a building that houses hospital beds.\u003c/p>\n\u003cp>Small and rural hospitals can get some aid from the state via grants financed by the California Electronic Cigarette Excise Tax, but HCAI spokesperson Andrew DiLuccia said it would yield just $2-3 million total annually. He added that the Small and Rural Hospital Relief Program has also received a one-time infusion of $50 million from a tax on health insurers to help with the seismic work.\u003c/p>\n\u003cp>Labor unions and critics of the extensions often point to the large profits that some hospitals reap: A California Health Care Foundation report published in August found that California’s hospitals made $3.2 billion in profit during the first quarter of 2024. The study notes that there “continues to be wide variation in financial performance among hospitals, with the bottom quartile showing a net income margin of -5%, compared to +13% for the top quartile.”\u003c/p>\n\u003cp>Stebbins has had to help her district figure out a plan.\u003c/p>\n\u003cfigure id=\"attachment_11937937\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11937937\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy-800x533.jpg\" alt='A beige building with \"Alameda Hospital\" written on it in blue lettering and a carpark in the foreground.' width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/01/010323-ALAMEDA-HOSPITAL-MHN-05-CM-2-copy.jpg 1568w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A view of Alameda Hospital, which serves the city of Alameda, on Jan. 3, 2023. Alameda Hospital sought a 2-year extension for seismic retrofits in 2022, but Gov. Gavin Newsom vetoed it. \u003ccite>(Martin do Nascimento for CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>After Newsom vetoed a bill in 2022 that would have granted an extension on the seismic retrofit deadline specifically for Alameda Hospital, the hospital system and its partner health care district used parcel tax money to help back \u003ca href=\"https://www.alamedahealthsystem.org/alameda-hospital-seismic-updates-and-faqs/\">a loan\u003c/a>.\u003c/p>\n\u003cp>The cost to retrofit will be about $25 million, and the system is also investing millions more into other projects, such as a new skilled nursing facility. The construction work is set to be completed in 2027.\u003c/p>\n\u003cp>“No one wants things crashing in an earthquake or anything else, but at the same time, it’s a burden,” Mahler, the Alameda Health System associate chief medical officer, said. “How do we make sure that they get what they need to stay open?”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cem>This article was produced by \u003c/em>\u003ca href=\"https://kffhealthnews.org/about-us\">\u003cem>KFF Health News\u003c/em>\u003c/a>\u003cem>, which publishes \u003c/em>\u003ca href=\"http://www.californiahealthline.org/\">\u003cem>California Healthline\u003c/em>\u003c/a>\u003cem>, an editorially independent service of the \u003c/em>\u003ca href=\"http://www.chcf.org/\">\u003cem>California Health Care Foundation\u003c/em>\u003c/a>\u003cem>.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/12010035/alameda-hospital-among-those-scrambling-to-meet-earthquake-retrofit-deadline","authors":["byline_news_12010035"],"categories":["news_31795","news_1758","news_457","news_34551","news_8"],"tags":["news_18848","news_34682","news_18538","news_28920","news_17826","news_16","news_152","news_18543","news_683","news_24939"],"affiliates":["news_20286"],"featImg":"news_12008449","label":"news_20286"},"news_12009203":{"type":"posts","id":"news_12009203","meta":{"index":"posts_1716263798","site":"news","id":"12009203","score":null,"sort":[1728689134000]},"guestAuthors":[],"slug":"california-senate-passes-bill-aimed-at-preventing-gas-price-spikes","title":"California Senate Passes Bill Aimed at Preventing Gas Price Spikes","publishDate":1728689134,"format":"standard","headTitle":"California Senate Passes Bill Aimed at Preventing Gas Price Spikes | KQED","labelTerm":{"site":"news"},"content":"\u003cp>The California state Senate passed a measure Friday to prevent gas prices from spiking in a state where it is notoriously expensive to fill up at the pump.\u003c/p>\n\u003cp>The proposal, \u003ca href=\"https://apnews.com/article/business-california-legislature-gavin-newsom-personal-taxes-e661495b9344e20a1ac474c4065db600\">backed by Gov. Gavin Newsom\u003c/a>, would give energy regulators the authority to require that refiners keep a certain amount of fuel on hand. The goal is to try to \u003ca href=\"https://apnews.com/article/california-gas-price-gov-newsom-spike-1bf913e3cc0b478af557dab034e0435e\">keep prices from increasing suddenly\u003c/a> when refiners go offline for maintenance. Proponents say it would save Californians billions of dollars at the pump.\u003c/p>\n\u003cp>The bill was inspired by findings from the state’s Division of Petroleum Market Oversight, which demonstrated that gas price spikes are largely caused by increases in global crude oil prices and unplanned refinery outages.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>State Sen. Nancy Skinner, a Democrat representing Berkeley, said the proposal is about saving money for consumers.\u003c/p>\n\u003cp>“While global crude prices are not something we can control, a shortage of refined gasoline is something that we can prepare for,” she said.\u003c/p>\n\u003cp>Newsom unveiled the legislation in August, during the last week of the regular legislative session. But lawmakers in the state Assembly said they needed more time to consider it. The governor called the Legislature into a special session to try to pass it.\u003c/p>\n\u003cp>The bill needs final approval by the state Assembly before it can reach Newsom’s desk.\u003c/p>\n\u003cp>It has received intense pushback from Republican lawmakers, labor groups and the oil industry. Some opponents say it could unintentionally raise overall gas prices and threaten the safety of workers by giving the state more oversight over refinery maintenance schedules. They argued delaying necessary maintenance could lead to accidents.\u003c/p>\n\u003cp>The Western States Petroleum Association criticized Newsom and the Democratic lawmakers supporting the bill, saying it would not benefit consumers.\u003c/p>\n\u003cp>“If they were serious about affordability, they’d be working with our industry on real solutions,” Catherine Reheis-Boyd, the group’s president, said in a statement. “Instead, they’re forcing a system they don’t understand, and Californians will pay the price.”\u003c/p>\n\u003cp>Californians pay the highest rates at the pump due to taxes and environmental regulations. The average price for regular unleaded gas in the state is about $4.67 per gallon as of Friday, compared to the national average of $3.21, according to AAA.[aside label=\"Related Stories\" postID=\"news_12007232,news_12006862,news_12003090\"]Republican state Sen. Brian Dahle said there shouldn’t have been a special session to weigh the proposal, because the bill does not do anything urgent. The proposal fails to address the state taxes and regulations that contribute to higher gas prices, he said.\u003c/p>\n\u003cp>“So, who’s making the money?” Dahle said. “Who’s gouging Californians for every gallon of gas? It’s the government.”\u003c/p>\n\u003cp>Last month, governors representing Nevada and Arizona, which import gas from California, sent a letter urging Newsom to reconsider the proposal. They said at the time they were concerned it could increase prices in their states.\u003c/p>\n\u003cp>It’s not the first time Newsom has tried to apply pressure on the Legislature to pass oil and gas regulations. He \u003ca href=\"https://apnews.com/article/business-california-legislature-gavin-newsom-personal-taxes-e661495b9344e20a1ac474c4065db600\">called a special session in 2022\u003c/a> to pass a tax on oil company profits. The governor then said \u003ca href=\"https://apnews.com/article/business-california-legislature-sacramento-gavin-newsom-f67b8f4a8e0d7a978d4bf34ada1ea256\">he wanted a penalty, not a tax\u003c/a>. The law he ended up signing months later \u003ca href=\"https://apnews.com/article/california-oil-company-profits-penalty-bill-7092c33a80bcab63658e118bbcbabf11\">gave state regulators the power\u003c/a> to penalize oil companies for making too much money.\u003c/p>\n\u003cp>McGuire, a Democrat representing the North Coast, said the bill lawmakers advanced Friday would help address a problem that drastically impacts people’s lives.\u003c/p>\n\u003cp>“Putting mechanisms in place to help prevent costs from spiking and sending family budgets into a tailspin benefits us all, and working together, we’ve been able to do just that,” he said in a statement.\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"The state Senate has passed a bill aimed at preventing gas prices from spiking at the pump, with Newsom backing the proposal.","status":"publish","parent":0,"modified":1728689135,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":18,"wordCount":646},"headData":{"title":"California Senate Passes Bill Aimed at Preventing Gas Price Spikes | KQED","description":"The state Senate has passed a bill aimed at preventing gas prices from spiking at the pump, with Newsom backing the proposal.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"California Senate Passes Bill Aimed at Preventing Gas Price Spikes","datePublished":"2024-10-11T16:25:34-07:00","dateModified":"2024-10-11T16:25:35-07:00","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"True","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"sticky":false,"nprByline":"Sophie Austin, Associated Press","nprStoryId":"kqed-12009203","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/12009203/california-senate-passes-bill-aimed-at-preventing-gas-price-spikes","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>The California state Senate passed a measure Friday to prevent gas prices from spiking in a state where it is notoriously expensive to fill up at the pump.\u003c/p>\n\u003cp>The proposal, \u003ca href=\"https://apnews.com/article/business-california-legislature-gavin-newsom-personal-taxes-e661495b9344e20a1ac474c4065db600\">backed by Gov. Gavin Newsom\u003c/a>, would give energy regulators the authority to require that refiners keep a certain amount of fuel on hand. The goal is to try to \u003ca href=\"https://apnews.com/article/california-gas-price-gov-newsom-spike-1bf913e3cc0b478af557dab034e0435e\">keep prices from increasing suddenly\u003c/a> when refiners go offline for maintenance. Proponents say it would save Californians billions of dollars at the pump.\u003c/p>\n\u003cp>The bill was inspired by findings from the state’s Division of Petroleum Market Oversight, which demonstrated that gas price spikes are largely caused by increases in global crude oil prices and unplanned refinery outages.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>State Sen. Nancy Skinner, a Democrat representing Berkeley, said the proposal is about saving money for consumers.\u003c/p>\n\u003cp>“While global crude prices are not something we can control, a shortage of refined gasoline is something that we can prepare for,” she said.\u003c/p>\n\u003cp>Newsom unveiled the legislation in August, during the last week of the regular legislative session. But lawmakers in the state Assembly said they needed more time to consider it. The governor called the Legislature into a special session to try to pass it.\u003c/p>\n\u003cp>The bill needs final approval by the state Assembly before it can reach Newsom’s desk.\u003c/p>\n\u003cp>It has received intense pushback from Republican lawmakers, labor groups and the oil industry. Some opponents say it could unintentionally raise overall gas prices and threaten the safety of workers by giving the state more oversight over refinery maintenance schedules. They argued delaying necessary maintenance could lead to accidents.\u003c/p>\n\u003cp>The Western States Petroleum Association criticized Newsom and the Democratic lawmakers supporting the bill, saying it would not benefit consumers.\u003c/p>\n\u003cp>“If they were serious about affordability, they’d be working with our industry on real solutions,” Catherine Reheis-Boyd, the group’s president, said in a statement. “Instead, they’re forcing a system they don’t understand, and Californians will pay the price.”\u003c/p>\n\u003cp>Californians pay the highest rates at the pump due to taxes and environmental regulations. The average price for regular unleaded gas in the state is about $4.67 per gallon as of Friday, compared to the national average of $3.21, according to AAA.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"Related Stories ","postid":"news_12007232,news_12006862,news_12003090"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Republican state Sen. Brian Dahle said there shouldn’t have been a special session to weigh the proposal, because the bill does not do anything urgent. The proposal fails to address the state taxes and regulations that contribute to higher gas prices, he said.\u003c/p>\n\u003cp>“So, who’s making the money?” Dahle said. “Who’s gouging Californians for every gallon of gas? It’s the government.”\u003c/p>\n\u003cp>Last month, governors representing Nevada and Arizona, which import gas from California, sent a letter urging Newsom to reconsider the proposal. They said at the time they were concerned it could increase prices in their states.\u003c/p>\n\u003cp>It’s not the first time Newsom has tried to apply pressure on the Legislature to pass oil and gas regulations. He \u003ca href=\"https://apnews.com/article/business-california-legislature-gavin-newsom-personal-taxes-e661495b9344e20a1ac474c4065db600\">called a special session in 2022\u003c/a> to pass a tax on oil company profits. The governor then said \u003ca href=\"https://apnews.com/article/business-california-legislature-sacramento-gavin-newsom-f67b8f4a8e0d7a978d4bf34ada1ea256\">he wanted a penalty, not a tax\u003c/a>. The law he ended up signing months later \u003ca href=\"https://apnews.com/article/california-oil-company-profits-penalty-bill-7092c33a80bcab63658e118bbcbabf11\">gave state regulators the power\u003c/a> to penalize oil companies for making too much money.\u003c/p>\n\u003cp>McGuire, a Democrat representing the North Coast, said the bill lawmakers advanced Friday would help address a problem that drastically impacts people’s lives.\u003c/p>\n\u003cp>“Putting mechanisms in place to help prevent costs from spiking and sending family budgets into a tailspin benefits us all, and working together, we’ve been able to do just that,” he said in a statement.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/12009203/california-senate-passes-bill-aimed-at-preventing-gas-price-spikes","authors":["byline_news_12009203"],"categories":["news_31795","news_1758","news_8","news_13","news_1397"],"tags":["news_913","news_2704","news_914","news_641","news_3273","news_16"],"featImg":"news_12009225","label":"news"},"news_12007585":{"type":"posts","id":"news_12007585","meta":{"index":"posts_1716263798","site":"news","id":"12007585","score":null,"sort":[1727978403000]},"guestAuthors":[],"slug":"california-saw-a-huge-tax-windfall-this-summer-that-points-to-silicon-valley","title":"California Saw a Huge Tax Windfall This Summer That Points to Silicon Valley","publishDate":1727978403,"format":"standard","headTitle":"California Saw a Huge Tax Windfall This Summer That Points to Silicon Valley | KQED","labelTerm":{"term":18481,"site":"news"},"content":"\u003cp>No sooner had Gov. Gavin Newsom cut billions of dollars in spending to close a budget deficit in June than California received an unexpected tax windfall, one that has people in the Capitol speculating about where the avalanche of money came from.\u003c/p>\n\u003cp>More corporate taxes than expected poured into state coffers this summer, with cash receipts exceeding forecasts by nearly $2 billion since April. An especially big surge came in July, and state officials and accounting experts think the extra receipts came from a small number of companies — most likely one or more Silicon Valley tech firms, with artificial intelligence chipmaker Nvidia a leading candidate.\u003c/p>\n\u003cp>The influx highlights a growing tension in California between its tendency to further regulate tech companies — the governor has signed six bills governing the use of artificial intelligence so far this year — and its \u003ca href=\"https://calmatters.org/economy/2024/01/ca-tech-tax-withholding/\">reliance on them for tax revenue\u003c/a>.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>On a single day, July 16, the state received more than $800 million than expected in corporate tax payments, “by far its single biggest day of collections” for a July going back at least four decades, state deputy legislative analyst Brian Uhler told CalMatters. (He excluded 2020 because the pandemic delayed tax deadlines.)\u003c/p>\n\u003cp>This July, the Finance Department said it collected about $1.4 billion in corporate taxes, nearly three times the agency’s forecast of $500 million. In June, corporate taxes were $263 million above forecast, and in May, $752 million over. “The July average was likely due to large payments by a small number of companies and may not necessarily be indicative of overall corporation tax revenue trends,” the department \u003ca href=\"https://dof.ca.gov/wp-content/uploads/sites/352/2024/08/Finance-Bulletin-August-2024.pdf\">said in its monthly bulletin (PDF)\u003c/a>.\u003c/p>\n\u003cp>Tax records are confidential, and representatives from both the Finance Department and the Franchise Tax Board stressed that nobody at the state is allowed to discuss details or information from specific tax returns or payments.\u003c/p>\n\u003cp>But the July influx in corporate tax payments was likely related to changes in state tax rules adopted in June, according to state and accounting experts who spoke with CalMatters. The tax changes, intended to help close the deficit, include a suspension of a deduction businesses can claim to offset profit, called the net operating loss deduction, as well as a $5 million limit on how much businesses can claim for research and development and other tax credits.\u003c/p>\n\u003cp>It’s possible that companies expecting to have outsized profit realized they owed more in taxes and needed to make large estimated tax payments immediately after the changes were enacted, accounting experts said. Corporations that expect to owe taxes are required to make quarterly estimated tax payments and can incur penalties if the payments are late. \u003ca href=\"https://www.lao.ca.gov/Publications/Report/4902\">State analysts believe\u003c/a> the new taxes could disproportionately come from “businesses in riskier or more innovative industries — such as the technology, motion picture, and transportation sectors,” as they put it when the changes were proposed.\u003c/p>\n\u003cp>In California, a red-hot tech company fits the bill of outsized profits and risky innovation: Nvidia, which is raking in record amounts of money because of the artificial intelligence boom.\u003c/p>\n\u003cp>As other companies scramble to get ahead in the AI race, they are buying Nvidia’s chips and propelling the company to new heights. On Aug. 28, Nvidia reported second-quarter net income of $16.6 billion, which was more than double its profit from the same period last year — and about the same amount spent by \u003ca href=\"https://www.opensecrets.org/news/2022/11/total-cost-of-2022-state-and-federal-elections-projected-to-exceed-16-7-billion/\">all state and federal campaigns\u003c/a> in the last election.\u003c/p>\n\u003cp>Nvidia’s annual financial report from 2023 shows that it had $1.5 billion in unused California tax credits for research and development. Between the cap on that tax credit and the suspension of the loss deduction the company could have claimed against its rising profit, Nvidia probably realized it would have a larger tax bill, accounting experts told CalMatters. That’s why it may have been the company or one of the companies that made the sizable estimated tax payment to the state.\u003c/p>\n\u003cp>Nvidia’s most recent quarterly filing provides additional clues: The company paid a total of $7.21 billion in income taxes in the second quarter, a whopping 31-fold increase from the $227 million it paid in taxes in the same period last year. For the first six months of its 2024 fiscal year, Nvidia paid $7.45 billion in income taxes, compared with $328 million in the first half of 2023. Those totals included federal and state taxes. California has a flat corporate tax rate of 8.84% of a company’s net income, while the federal tax rate is a flat 21%.\u003c/p>\n\u003cp>If Nvidia was largely responsible for the July tax windfall, due to an estimated tax payment, the company likely expects a lot of taxable income this year, said Francine McKenna, an independent financial journalist who writes the Dig newsletter and has taught financial accounting at the University of Pennsylvania’s Wharton business school. McKenna said if that’s the case, and because there’s a limit on how much the company can claim in terms of other tax credits, Nvidia will likely make another sizable estimated tax payment in the third quarter.\u003c/p>\n\u003cp>An Nvidia spokesperson would not comment. Neither would a spokesperson for Gov. Gavin Newsom.\u003c/p>\n\u003cp>“I’d expect payments from other companies as well, potentially,” said Brett Whitaker, a former tax executive at Ernst & Young, Nike and Mattel who now teaches corporate tax accounting at Indiana University. “They depend on these credits often to avoid paying tax, so suspending them could drive tax for many.”\u003c/p>\n\u003cp>Whitaker said most companies try to take advantage of R&D tax credits: “Big Four (accounting) firms have entire teams dedicated solely to this effort.” But he added that the credits are especially commonly used by tech companies and others whose businesses rely on innovation.\u003c/p>\n\u003cp>It’s hard to tell exactly when those other estimated tax payments will come and how significant they will be, Finance Department spokesperson H.D. Palmer said.\u003c/p>\n\u003cp>Estimated tax payments are due in April, June, September and January, but those payments are not always made on time so can come in at any time, according to the Franchise Tax Board.\u003c/p>\n\u003cp>A CalMatters examination of Silicon Valley’s biggest tech companies’ financial filings with the federal Securities and Exchange Commission suggests that some of them may also be affected by the tax changes. That means the companies could make estimated tax payments that could be similar in size to the ones the state received in July.\u003c/p>\n\u003cp>Apple, Google parent Alphabet and Facebook parent Meta are among the companies whose financial filings show they have past losses, which they could normally deduct, and/or unused research and development tax credits in the state.\u003c/p>\n\u003cp>As of last Dec. 31, Alphabet had $18.6 billion in old losses in California. The tech giant also had $6.3 billion in research and development credits.\u003cstrong> \u003c/strong>As of the same date, Meta had $2.78 billion in past losses in the state, as well as $4.08 billion in unspecified state tax credits from prior periods. And as of Sept. 30, 2023, Apple had $3 billion in research and development credits. All these companies are highly profitable, and whatever deductions and credits they were expecting to use are now either on hold or limited.\u003c/p>\n\u003cp>According to \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240sb167?slug=CA_202320240SB167\">the analysis of the budget bill that included the tax changes\u003c/a>, California’s deduction suspension and tax-credit limits could increase state revenue by $5.95 billion this fiscal year, $5.5 billion the following fiscal year and $3.4 billion the year after that.\u003c/p>\n\u003cp>[aside label=\"Related Stories\" postID=\"news_11972309,news_11992607,forum_2010101906396\"]\u003c/p>\n\u003cp>The tax changes split state lawmakers mostly along party lines when the governor proposed them in his budget earlier this year. Democrats characterized the changes as necessary, while Republicans decried them as a burden on businesses.\u003c/p>\n\u003cp>Democratic state Sen. Scott Wiener from San Francisco, a supporter of the changes, said in an emailed statement to CalMatters: “It is important not to read too much into any single month revenue numbers, but we believe that tough decisions we made this year will strengthen the state’s fiscal health going forward while protecting our core programs and benefiting the overall economy.”\u003c/p>\n\u003cp>Sen. Roger Niello, a Republican from Roseville, an opponent of the changes and a former accountant, told CalMatters he checked with his fiscal staff as well as the Legislative Analyst’s Office about the bigger-than-expected corporate tax payments in July. “It’s reasonable to consider that it’s because of tax changes, but they really don’t know,” he said.”It does appear to be from large deposits from a few companies.”\u003c/p>\n\u003cp>Niello said the state has disallowed the deduction for operating losses in nearly half of the years between 2008 and 2027, citing a finding by the Legislative Analyst’s Office in \u003ca href=\"https://www.lao.ca.gov/Publications/Report/4902\">a May report\u003c/a>. The deductions are supposed to help make taxes roughly even for businesses with similar total profits over the course of multiple years.\u003c/p>\n\u003cp>Suspending that deduction “appears to be a go-to measure by the state for accounting for revenue shortfalls,” Niello said. “It’s something that businesses cannot rely on now.”\u003c/p>\n\u003cp>In addition to the tax changes, California tech firms have navigated various legislative fights and new regulations this year. The biggest battle was over a bill to force them to test powerful artificial intelligence models for their potential to enable cyberattacks, the creation of weapons of mass destruction, and other threats to infrastructure. Several big tech companies opposed the legislation, saying it would hinder innovation, while prominent whistleblowers said it would help mitigate the reckless pursuit of tech profits. The measure, from Wiener, cleared the Legislature \u003ca href=\"https://calmatters.org/economy/2024/09/california-artificial-intelligence-bill-veto/\">only to be vetoed\u003c/a> by Gov. Gavin Newsom this past weekend. The \u003ca href=\"https://calmatters.org/explainers/new-california-laws-2024/\">governor also signed into law bills\u003c/a> that would \u003ca href=\"https://calmatters.org/politics/elections/2024/02/ai-elections-bill-package/\">protect voters from deepfakes\u003c/a> and allow victims of doxxing to \u003ca href=\"https://calmatters.org/politics/capitol/2024/06/doxxing-bill-california/\">sue their attackers in civil court\u003c/a>.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"California was nearly $2 billion over forecast in corporate tax receipts this summer. A tax change meant to help the budget deficit helped drive the surge.","status":"publish","parent":0,"modified":1729026969,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":31,"wordCount":1716},"headData":{"title":"California Saw a Huge Tax Windfall This Summer That Points to Silicon Valley | KQED","description":"California was nearly $2 billion over forecast in corporate tax receipts this summer. A tax change meant to help the budget deficit helped drive the surge.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"California Saw a Huge Tax Windfall This Summer That Points to Silicon Valley","datePublished":"2024-10-03T11:00:03-07:00","dateModified":"2024-10-15T14:16:09-07:00","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"True","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"sticky":false,"nprByline":"\u003ca href=\"https://calmatters.org/author/levi-sumagaysay/\">Levi Sumagaysay\u003c/a>, CalMatters","nprStoryId":"kqed-12007585","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/12007585/california-saw-a-huge-tax-windfall-this-summer-that-points-to-silicon-valley","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>No sooner had Gov. Gavin Newsom cut billions of dollars in spending to close a budget deficit in June than California received an unexpected tax windfall, one that has people in the Capitol speculating about where the avalanche of money came from.\u003c/p>\n\u003cp>More corporate taxes than expected poured into state coffers this summer, with cash receipts exceeding forecasts by nearly $2 billion since April. An especially big surge came in July, and state officials and accounting experts think the extra receipts came from a small number of companies — most likely one or more Silicon Valley tech firms, with artificial intelligence chipmaker Nvidia a leading candidate.\u003c/p>\n\u003cp>The influx highlights a growing tension in California between its tendency to further regulate tech companies — the governor has signed six bills governing the use of artificial intelligence so far this year — and its \u003ca href=\"https://calmatters.org/economy/2024/01/ca-tech-tax-withholding/\">reliance on them for tax revenue\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>On a single day, July 16, the state received more than $800 million than expected in corporate tax payments, “by far its single biggest day of collections” for a July going back at least four decades, state deputy legislative analyst Brian Uhler told CalMatters. (He excluded 2020 because the pandemic delayed tax deadlines.)\u003c/p>\n\u003cp>This July, the Finance Department said it collected about $1.4 billion in corporate taxes, nearly three times the agency’s forecast of $500 million. In June, corporate taxes were $263 million above forecast, and in May, $752 million over. “The July average was likely due to large payments by a small number of companies and may not necessarily be indicative of overall corporation tax revenue trends,” the department \u003ca href=\"https://dof.ca.gov/wp-content/uploads/sites/352/2024/08/Finance-Bulletin-August-2024.pdf\">said in its monthly bulletin (PDF)\u003c/a>.\u003c/p>\n\u003cp>Tax records are confidential, and representatives from both the Finance Department and the Franchise Tax Board stressed that nobody at the state is allowed to discuss details or information from specific tax returns or payments.\u003c/p>\n\u003cp>But the July influx in corporate tax payments was likely related to changes in state tax rules adopted in June, according to state and accounting experts who spoke with CalMatters. The tax changes, intended to help close the deficit, include a suspension of a deduction businesses can claim to offset profit, called the net operating loss deduction, as well as a $5 million limit on how much businesses can claim for research and development and other tax credits.\u003c/p>\n\u003cp>It’s possible that companies expecting to have outsized profit realized they owed more in taxes and needed to make large estimated tax payments immediately after the changes were enacted, accounting experts said. Corporations that expect to owe taxes are required to make quarterly estimated tax payments and can incur penalties if the payments are late. \u003ca href=\"https://www.lao.ca.gov/Publications/Report/4902\">State analysts believe\u003c/a> the new taxes could disproportionately come from “businesses in riskier or more innovative industries — such as the technology, motion picture, and transportation sectors,” as they put it when the changes were proposed.\u003c/p>\n\u003cp>In California, a red-hot tech company fits the bill of outsized profits and risky innovation: Nvidia, which is raking in record amounts of money because of the artificial intelligence boom.\u003c/p>\n\u003cp>As other companies scramble to get ahead in the AI race, they are buying Nvidia’s chips and propelling the company to new heights. On Aug. 28, Nvidia reported second-quarter net income of $16.6 billion, which was more than double its profit from the same period last year — and about the same amount spent by \u003ca href=\"https://www.opensecrets.org/news/2022/11/total-cost-of-2022-state-and-federal-elections-projected-to-exceed-16-7-billion/\">all state and federal campaigns\u003c/a> in the last election.\u003c/p>\n\u003cp>Nvidia’s annual financial report from 2023 shows that it had $1.5 billion in unused California tax credits for research and development. Between the cap on that tax credit and the suspension of the loss deduction the company could have claimed against its rising profit, Nvidia probably realized it would have a larger tax bill, accounting experts told CalMatters. That’s why it may have been the company or one of the companies that made the sizable estimated tax payment to the state.\u003c/p>\n\u003cp>Nvidia’s most recent quarterly filing provides additional clues: The company paid a total of $7.21 billion in income taxes in the second quarter, a whopping 31-fold increase from the $227 million it paid in taxes in the same period last year. For the first six months of its 2024 fiscal year, Nvidia paid $7.45 billion in income taxes, compared with $328 million in the first half of 2023. Those totals included federal and state taxes. California has a flat corporate tax rate of 8.84% of a company’s net income, while the federal tax rate is a flat 21%.\u003c/p>\n\u003cp>If Nvidia was largely responsible for the July tax windfall, due to an estimated tax payment, the company likely expects a lot of taxable income this year, said Francine McKenna, an independent financial journalist who writes the Dig newsletter and has taught financial accounting at the University of Pennsylvania’s Wharton business school. McKenna said if that’s the case, and because there’s a limit on how much the company can claim in terms of other tax credits, Nvidia will likely make another sizable estimated tax payment in the third quarter.\u003c/p>\n\u003cp>An Nvidia spokesperson would not comment. Neither would a spokesperson for Gov. Gavin Newsom.\u003c/p>\n\u003cp>“I’d expect payments from other companies as well, potentially,” said Brett Whitaker, a former tax executive at Ernst & Young, Nike and Mattel who now teaches corporate tax accounting at Indiana University. “They depend on these credits often to avoid paying tax, so suspending them could drive tax for many.”\u003c/p>\n\u003cp>Whitaker said most companies try to take advantage of R&D tax credits: “Big Four (accounting) firms have entire teams dedicated solely to this effort.” But he added that the credits are especially commonly used by tech companies and others whose businesses rely on innovation.\u003c/p>\n\u003cp>It’s hard to tell exactly when those other estimated tax payments will come and how significant they will be, Finance Department spokesperson H.D. Palmer said.\u003c/p>\n\u003cp>Estimated tax payments are due in April, June, September and January, but those payments are not always made on time so can come in at any time, according to the Franchise Tax Board.\u003c/p>\n\u003cp>A CalMatters examination of Silicon Valley’s biggest tech companies’ financial filings with the federal Securities and Exchange Commission suggests that some of them may also be affected by the tax changes. That means the companies could make estimated tax payments that could be similar in size to the ones the state received in July.\u003c/p>\n\u003cp>Apple, Google parent Alphabet and Facebook parent Meta are among the companies whose financial filings show they have past losses, which they could normally deduct, and/or unused research and development tax credits in the state.\u003c/p>\n\u003cp>As of last Dec. 31, Alphabet had $18.6 billion in old losses in California. The tech giant also had $6.3 billion in research and development credits.\u003cstrong> \u003c/strong>As of the same date, Meta had $2.78 billion in past losses in the state, as well as $4.08 billion in unspecified state tax credits from prior periods. And as of Sept. 30, 2023, Apple had $3 billion in research and development credits. All these companies are highly profitable, and whatever deductions and credits they were expecting to use are now either on hold or limited.\u003c/p>\n\u003cp>According to \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240sb167?slug=CA_202320240SB167\">the analysis of the budget bill that included the tax changes\u003c/a>, California’s deduction suspension and tax-credit limits could increase state revenue by $5.95 billion this fiscal year, $5.5 billion the following fiscal year and $3.4 billion the year after that.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"Related Stories ","postid":"news_11972309,news_11992607,forum_2010101906396"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The tax changes split state lawmakers mostly along party lines when the governor proposed them in his budget earlier this year. Democrats characterized the changes as necessary, while Republicans decried them as a burden on businesses.\u003c/p>\n\u003cp>Democratic state Sen. Scott Wiener from San Francisco, a supporter of the changes, said in an emailed statement to CalMatters: “It is important not to read too much into any single month revenue numbers, but we believe that tough decisions we made this year will strengthen the state’s fiscal health going forward while protecting our core programs and benefiting the overall economy.”\u003c/p>\n\u003cp>Sen. Roger Niello, a Republican from Roseville, an opponent of the changes and a former accountant, told CalMatters he checked with his fiscal staff as well as the Legislative Analyst’s Office about the bigger-than-expected corporate tax payments in July. “It’s reasonable to consider that it’s because of tax changes, but they really don’t know,” he said.”It does appear to be from large deposits from a few companies.”\u003c/p>\n\u003cp>Niello said the state has disallowed the deduction for operating losses in nearly half of the years between 2008 and 2027, citing a finding by the Legislative Analyst’s Office in \u003ca href=\"https://www.lao.ca.gov/Publications/Report/4902\">a May report\u003c/a>. The deductions are supposed to help make taxes roughly even for businesses with similar total profits over the course of multiple years.\u003c/p>\n\u003cp>Suspending that deduction “appears to be a go-to measure by the state for accounting for revenue shortfalls,” Niello said. “It’s something that businesses cannot rely on now.”\u003c/p>\n\u003cp>In addition to the tax changes, California tech firms have navigated various legislative fights and new regulations this year. The biggest battle was over a bill to force them to test powerful artificial intelligence models for their potential to enable cyberattacks, the creation of weapons of mass destruction, and other threats to infrastructure. Several big tech companies opposed the legislation, saying it would hinder innovation, while prominent whistleblowers said it would help mitigate the reckless pursuit of tech profits. The measure, from Wiener, cleared the Legislature \u003ca href=\"https://calmatters.org/economy/2024/09/california-artificial-intelligence-bill-veto/\">only to be vetoed\u003c/a> by Gov. Gavin Newsom this past weekend. The \u003ca href=\"https://calmatters.org/explainers/new-california-laws-2024/\">governor also signed into law bills\u003c/a> that would \u003ca href=\"https://calmatters.org/politics/elections/2024/02/ai-elections-bill-package/\">protect voters from deepfakes\u003c/a> and allow victims of doxxing to \u003ca href=\"https://calmatters.org/politics/capitol/2024/06/doxxing-bill-california/\">sue their attackers in civil court\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/12007585/california-saw-a-huge-tax-windfall-this-summer-that-points-to-silicon-valley","authors":["byline_news_12007585"],"categories":["news_31795","news_1758","news_8","news_248"],"tags":["news_28321","news_402","news_3651","news_34586","news_423","news_17623"],"affiliates":["news_18481"],"featImg":"news_12007587","label":"news_18481"},"news_12004502":{"type":"posts","id":"news_12004502","meta":{"index":"posts_1716263798","site":"news","id":"12004502","score":null,"sort":[1726167610000]},"guestAuthors":[],"slug":"thousands-in-richmond-told-to-get-licenses-for-businesses-many-didnt-even-know-they-owned","title":"Thousands in Richmond Told to Get Licenses for Businesses Many Didn’t Even Know They Owned","publishDate":1726167610,"format":"standard","headTitle":"Thousands in Richmond Told to Get Licenses for Businesses Many Didn’t Even Know They Owned | KQED","labelTerm":{"site":"news"},"content":"\u003cp>Around 4,000 Richmond residents this month received letters from the city’s finance department saying they need to register their businesses and pay the appropriate taxes from last year.\u003c/p>\n\u003cp>But that came as a surprise to many who were unaware that they were operating a business in Richmond.\u003c/p>\n\u003cp>The letters — which the city said are part of a new approach to get “everyone to pay their fair share” — direct recipients to City Hall to get their business cleared and inspected by Sept. 30.\u003c/p>\n\u003cp>The letters say the city received information from the state Franchise Tax Board that shows business activity was conducted at a Richmond residence, most often people’s home address, without the appropriate business tax certificate. That requires paying a $39 application fee and annual taxes of between 0.075% to 1.395% on a business’ gross receipts.\u003c/p>\n\u003cp>For someone making $40,000 a year, that could be between $70 and $600, depending on the type of industry.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Since the letters went out late last month, a steady stream of people have trickled into City Hall, letters and tax information in hand, wondering why the city thought they were running a business out of their homes. (Full disclosure: one of those people was this reporter’s spouse.)\u003c/p>\n\u003cp>KQED spoke to nearly two dozen people who received a letter. The two things most had in common were that they lived in Richmond and that last year, they filed a version of Form 1099, a common document for independent contractors, freelance employees, gig workers or people who received one-time payments.\u003c/p>\n\u003cp>Many said they felt confused and even fearful when they opened the letters, as they worried they could face penalties if they didn’t get a license. Some said they had tried to call the number on the letter but couldn’t reach anyone.\u003c/p>\n\u003cp>Residents who received letters and subsequent business applications from city staff included a full-time Uber driver, a landscaper, a handyman, and a housekeeper, all who said they don’t work in Richmond. One confused recipient was a mother who didn’t work at all in 2023 because she was caring for her newborn child. Another recipient said their only 1099 in 2023 was for $17.07.\u003c/p>\n\u003cp>Richmond is one of many California cities participating in the state’s opt-in information-sharing program, which uses tax board information to help “identify unlicensed individuals or businesses.” In return, the state uses city and county data to “identify self-employed individuals or businesses who are not filing required state income tax returns.”\u003c/p>\n\u003cp>Katherine Gorringe, a documentary filmmaker, said receiving that letter “struck fear into my heart.” She has an accountant and has her business pay taxes as an \u003ca href=\"https://www.irs.gov/businesses/small-businesses-self-employed\">S Corporation,\u003c/a> where she’s the only employee.\u003c/p>\n\u003cp>“I like to think I’m really on top of those things. So it was shocking to get in the mail, and it had some wording on it that I would have to be approved or have an inspection, and so that just made me really nervous,” she said.\u003c/p>\n\u003cp>But there was one thing that really stuck out to Gorringe: she got an extension on her 2023 taxes and her accountant hasn’t even filed them yet.\u003c/p>\n\u003cp>[aside label=\"more on Richmond\" tag=\"richmond\"]“In the letter, it indicated that it was for the calendar year 2023 that the Franchise Tax Board had informed them that I had reported business income, so that is just untrue,” Gorringe said.\u003c/p>\n\u003cp>Andrew LePage, a spokesperson for the Franchise Tax Board, said the state doesn’t share 1099 filing information or business expenses or income with cities and counties. Instead, local governments submit \u003ca href=\"https://www.ftb.ca.gov/forms/misc/909A.pdf\">their business tax licensee data\u003c/a>, which the tax board matches with tax returns. That process reveals “additional businesses or individuals who have indicated on their return that they conduct business in the participating city or county.”\u003c/p>\n\u003cp>In a FAQ on the back of the letter, the city states that businesses “both large and small” in Richmond are required to have the tax certificate and that “Most activities conducted within the city on a continuing and regular basis are considered engaging in business and subject to business license tax.”\u003c/p>\n\u003cp>Jeff Rogers, a handyman who has lived in Richmond for 17 years, was surprised and confused by the letter. “I work all over the place,” he said.\u003c/p>\n\u003cp>His business is based out of El Cerrito, where he has a business license, so he wonders what Richmond wants him to pay taxes on. \u003ca href=\"https://www.ci.richmond.ca.us/2913/Measure-U---Gross-Receipts-Ballot-Measur\">City rules\u003c/a> say taxes will be calculated based on gross receipts from sales in Richmond.\u003c/p>\n\u003cp>“I have no problem getting a business license, but if this is just a way for them to get their hands in my pockets and screw me over, that’s where I have a problem,” Rogers said.\u003c/p>\n\u003cp>David James has been in real estate for 20 years. He works for an agency in Berkeley and doesn’t consider his Richmond home his office. Still, he got the letter and left City Hall Friday with a business license application form.\u003c/p>\n\u003cp>“I didn’t understand what it was or what it was about, and now they’re telling me I have to pay for doing business in Richmond and have a business license, and I don’t have a business in Richmond,” James said after visiting the Finance Department. “If I knew how to fight it, I would be fighting it. I’m trying to figure it out. Right now, it makes no sense at all.”\u003c/p>\n\u003cp>Antonio Banuelos — the city accounting manager whose signature appears on the letters — briefed the city council on the information-sharing agreement with the Franchise Tax Board at its Sept. 10 meeting. Banuelos told the council that many people who responded to the letters were not aware the city required them to have a business license. Some, he said, should not have received a letter, including people whose businesses are located outside the city or whose employer gave them a 1099 instead of a W-2.\u003c/p>\n\u003cfigure id=\"attachment_12004517\" class=\"wp-caption alignnone\" style=\"max-width: 928px\">\u003ca href=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/240910-Antonio-Banuelos-KQED.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12004517 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/240910-Antonio-Banuelos-KQED.jpg\" alt=\"\" width=\"928\" height=\"619\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/240910-Antonio-Banuelos-KQED.jpg 928w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/240910-Antonio-Banuelos-KQED-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/240910-Antonio-Banuelos-KQED-160x107.jpg 160w\" sizes=\"(max-width: 928px) 100vw, 928px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A screenshot of Antonio Banuelos, Richmond’s accounting manager, during a City Council meeting on Sept. 10, 2024. \u003ccite>(Courtesy of the city of Richmond)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Banuelos said the city also mistakenly only included the name of one person on the letter when people were filing jointly.\u003c/p>\n\u003cp>“That was an error on our part and has caused some confusion,” Banuelos told the council.\u003c/p>\n\u003cp>Banuelos said the data exchange program with the Franchise Tax Board has been in place since 2009, but the city doesn’t use it every year because “it’s very labor intensive and oftentimes doesn’t lead to a lot of revenue.”\u003c/p>\n\u003cp>In response to questions from KQED, Banuelos said via email that the Franchise Tax Board information provided a listing of all non-wage earners, both businesses and the self-employed. Of them, “most have 1099s.” The city reviewed what the state sent, matching the tax ID or Social Security number, and then sent out the letters.\u003c/p>\n\u003cp>Banuelos said when people come into City Hall, “we do not know if we are talking with someone that reported $600 or $1,000,000 in non-wage income.”\u003c/p>\n\u003cp>Banuelos said if people do not meet the Sept. 30 deadline listed on the letter, they’ll receive another notice from the city.\u003c/p>\n\u003cp>Colisa McFadden, owner of \u003ca href=\"https://cmafinancial.com/\">CMA Financial Services\u003c/a> in the Hilltop neighborhood, said the city sending letters en masse was “quite ridiculous.”\u003c/p>\n\u003cp>“It’s scary to get that letter,” she said.\u003c/p>\n\u003cp>McFadden said Richmond residents who are not doing business within Richmond’s borders do not need to get a business license. “If you work from home and file a 1099, you’re self-employed and need a business license,” she said.\u003c/p>\n\u003cp>The letters are the latest in the city’s efforts to fund city critical services, which began in 2020 with \u003ca href=\"https://www.ci.richmond.ca.us/2913/Measure-U---Gross-Receipts-Ballot-Measur\">Measure U\u003c/a>, which changed the city’s business tax from a per-employee payroll fee to a tax on gross receipts. The change, which \u003ca href=\"https://ballotpedia.org/Richmond,_California,_Measure_U,_Business_Tax_(November_2020)\">voters approved\u003c/a>, was expected to bring $6.2 million into the city’s general fund to \u003ca href=\"https://www.ci.richmond.ca.us/DocumentCenter/View/54678/Agenda-Report-852020---Richmond-Business-Tax-Ordinance-FINAL\">address quality-of-life issues\u003c/a>, like 911 response times and potholes.\u003c/p>\n\u003cp>As Measure U took effect, the city sent registered businesses letters about the changes — \u003ca href=\"https://www.ci.richmond.ca.us/2913/Measure-U---Gross-Receipts-Ballot-Measur\">4,000 of them went out in January 2022\u003c/a>. But the people KQED spoke to for this story say this was the first time they’d received letters from the city about alleged business activity.\u003c/p>\n\u003cp>Shawn Dunning, a candidate for the District 6 city council seat that includes City Hall, has a business license with the city for his consulting job, even though he said he has no clients in Richmond. He said Measure U changed how businesses’ taxes are calculated but not the requirements for those who need a business license.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>“It’s confusing to me why there’s an entirely new approach going on right now,” Dunning said. “I would like to give the benefit of the doubt and hope that this is just an administrative error, but if they are literally just casting a wide net and fishing to see who will take the bait, that would be really sad to me.”\u003c/p>\n\n","blocks":[],"excerpt":"The letters — which the city says are part of a new approach to get 'everyone to pay their fair share' — direct recipients to City Hall to get their business cleared and inspected by Sept. 30. ","status":"publish","parent":0,"modified":1726181393,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":37,"wordCount":1612},"headData":{"title":"Thousands in Richmond Told to Get Licenses for Businesses Many Didn’t Even Know They Owned | KQED","description":"The letters — which the city says are part of a new approach to get 'everyone to pay their fair share' — direct recipients to City Hall to get their business cleared and inspected by Sept. 30. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Thousands in Richmond Told to Get Licenses for Businesses Many Didn’t Even Know They Owned","datePublished":"2024-09-12T12:00:10-07:00","dateModified":"2024-09-12T15:49:53-07:00","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"True","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"sticky":false,"nprStoryId":"kqed-12004502","excludeFromSiteSearch":"Include","articleAge":"0","path":"/news/12004502/thousands-in-richmond-told-to-get-licenses-for-businesses-many-didnt-even-know-they-owned","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Around 4,000 Richmond residents this month received letters from the city’s finance department saying they need to register their businesses and pay the appropriate taxes from last year.\u003c/p>\n\u003cp>But that came as a surprise to many who were unaware that they were operating a business in Richmond.\u003c/p>\n\u003cp>The letters — which the city said are part of a new approach to get “everyone to pay their fair share” — direct recipients to City Hall to get their business cleared and inspected by Sept. 30.\u003c/p>\n\u003cp>The letters say the city received information from the state Franchise Tax Board that shows business activity was conducted at a Richmond residence, most often people’s home address, without the appropriate business tax certificate. That requires paying a $39 application fee and annual taxes of between 0.075% to 1.395% on a business’ gross receipts.\u003c/p>\n\u003cp>For someone making $40,000 a year, that could be between $70 and $600, depending on the type of industry.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Since the letters went out late last month, a steady stream of people have trickled into City Hall, letters and tax information in hand, wondering why the city thought they were running a business out of their homes. (Full disclosure: one of those people was this reporter’s spouse.)\u003c/p>\n\u003cp>KQED spoke to nearly two dozen people who received a letter. The two things most had in common were that they lived in Richmond and that last year, they filed a version of Form 1099, a common document for independent contractors, freelance employees, gig workers or people who received one-time payments.\u003c/p>\n\u003cp>Many said they felt confused and even fearful when they opened the letters, as they worried they could face penalties if they didn’t get a license. Some said they had tried to call the number on the letter but couldn’t reach anyone.\u003c/p>\n\u003cp>Residents who received letters and subsequent business applications from city staff included a full-time Uber driver, a landscaper, a handyman, and a housekeeper, all who said they don’t work in Richmond. One confused recipient was a mother who didn’t work at all in 2023 because she was caring for her newborn child. Another recipient said their only 1099 in 2023 was for $17.07.\u003c/p>\n\u003cp>Richmond is one of many California cities participating in the state’s opt-in information-sharing program, which uses tax board information to help “identify unlicensed individuals or businesses.” In return, the state uses city and county data to “identify self-employed individuals or businesses who are not filing required state income tax returns.”\u003c/p>\n\u003cp>Katherine Gorringe, a documentary filmmaker, said receiving that letter “struck fear into my heart.” She has an accountant and has her business pay taxes as an \u003ca href=\"https://www.irs.gov/businesses/small-businesses-self-employed\">S Corporation,\u003c/a> where she’s the only employee.\u003c/p>\n\u003cp>“I like to think I’m really on top of those things. So it was shocking to get in the mail, and it had some wording on it that I would have to be approved or have an inspection, and so that just made me really nervous,” she said.\u003c/p>\n\u003cp>But there was one thing that really stuck out to Gorringe: she got an extension on her 2023 taxes and her accountant hasn’t even filed them yet.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"more on Richmond ","tag":"richmond"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>“In the letter, it indicated that it was for the calendar year 2023 that the Franchise Tax Board had informed them that I had reported business income, so that is just untrue,” Gorringe said.\u003c/p>\n\u003cp>Andrew LePage, a spokesperson for the Franchise Tax Board, said the state doesn’t share 1099 filing information or business expenses or income with cities and counties. Instead, local governments submit \u003ca href=\"https://www.ftb.ca.gov/forms/misc/909A.pdf\">their business tax licensee data\u003c/a>, which the tax board matches with tax returns. That process reveals “additional businesses or individuals who have indicated on their return that they conduct business in the participating city or county.”\u003c/p>\n\u003cp>In a FAQ on the back of the letter, the city states that businesses “both large and small” in Richmond are required to have the tax certificate and that “Most activities conducted within the city on a continuing and regular basis are considered engaging in business and subject to business license tax.”\u003c/p>\n\u003cp>Jeff Rogers, a handyman who has lived in Richmond for 17 years, was surprised and confused by the letter. “I work all over the place,” he said.\u003c/p>\n\u003cp>His business is based out of El Cerrito, where he has a business license, so he wonders what Richmond wants him to pay taxes on. \u003ca href=\"https://www.ci.richmond.ca.us/2913/Measure-U---Gross-Receipts-Ballot-Measur\">City rules\u003c/a> say taxes will be calculated based on gross receipts from sales in Richmond.\u003c/p>\n\u003cp>“I have no problem getting a business license, but if this is just a way for them to get their hands in my pockets and screw me over, that’s where I have a problem,” Rogers said.\u003c/p>\n\u003cp>David James has been in real estate for 20 years. He works for an agency in Berkeley and doesn’t consider his Richmond home his office. Still, he got the letter and left City Hall Friday with a business license application form.\u003c/p>\n\u003cp>“I didn’t understand what it was or what it was about, and now they’re telling me I have to pay for doing business in Richmond and have a business license, and I don’t have a business in Richmond,” James said after visiting the Finance Department. “If I knew how to fight it, I would be fighting it. I’m trying to figure it out. Right now, it makes no sense at all.”\u003c/p>\n\u003cp>Antonio Banuelos — the city accounting manager whose signature appears on the letters — briefed the city council on the information-sharing agreement with the Franchise Tax Board at its Sept. 10 meeting. Banuelos told the council that many people who responded to the letters were not aware the city required them to have a business license. Some, he said, should not have received a letter, including people whose businesses are located outside the city or whose employer gave them a 1099 instead of a W-2.\u003c/p>\n\u003cfigure id=\"attachment_12004517\" class=\"wp-caption alignnone\" style=\"max-width: 928px\">\u003ca href=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/240910-Antonio-Banuelos-KQED.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12004517 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/240910-Antonio-Banuelos-KQED.jpg\" alt=\"\" width=\"928\" height=\"619\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/240910-Antonio-Banuelos-KQED.jpg 928w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/240910-Antonio-Banuelos-KQED-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/240910-Antonio-Banuelos-KQED-160x107.jpg 160w\" sizes=\"(max-width: 928px) 100vw, 928px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A screenshot of Antonio Banuelos, Richmond’s accounting manager, during a City Council meeting on Sept. 10, 2024. \u003ccite>(Courtesy of the city of Richmond)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Banuelos said the city also mistakenly only included the name of one person on the letter when people were filing jointly.\u003c/p>\n\u003cp>“That was an error on our part and has caused some confusion,” Banuelos told the council.\u003c/p>\n\u003cp>Banuelos said the data exchange program with the Franchise Tax Board has been in place since 2009, but the city doesn’t use it every year because “it’s very labor intensive and oftentimes doesn’t lead to a lot of revenue.”\u003c/p>\n\u003cp>In response to questions from KQED, Banuelos said via email that the Franchise Tax Board information provided a listing of all non-wage earners, both businesses and the self-employed. Of them, “most have 1099s.” The city reviewed what the state sent, matching the tax ID or Social Security number, and then sent out the letters.\u003c/p>\n\u003cp>Banuelos said when people come into City Hall, “we do not know if we are talking with someone that reported $600 or $1,000,000 in non-wage income.”\u003c/p>\n\u003cp>Banuelos said if people do not meet the Sept. 30 deadline listed on the letter, they’ll receive another notice from the city.\u003c/p>\n\u003cp>Colisa McFadden, owner of \u003ca href=\"https://cmafinancial.com/\">CMA Financial Services\u003c/a> in the Hilltop neighborhood, said the city sending letters en masse was “quite ridiculous.”\u003c/p>\n\u003cp>“It’s scary to get that letter,” she said.\u003c/p>\n\u003cp>McFadden said Richmond residents who are not doing business within Richmond’s borders do not need to get a business license. “If you work from home and file a 1099, you’re self-employed and need a business license,” she said.\u003c/p>\n\u003cp>The letters are the latest in the city’s efforts to fund city critical services, which began in 2020 with \u003ca href=\"https://www.ci.richmond.ca.us/2913/Measure-U---Gross-Receipts-Ballot-Measur\">Measure U\u003c/a>, which changed the city’s business tax from a per-employee payroll fee to a tax on gross receipts. The change, which \u003ca href=\"https://ballotpedia.org/Richmond,_California,_Measure_U,_Business_Tax_(November_2020)\">voters approved\u003c/a>, was expected to bring $6.2 million into the city’s general fund to \u003ca href=\"https://www.ci.richmond.ca.us/DocumentCenter/View/54678/Agenda-Report-852020---Richmond-Business-Tax-Ordinance-FINAL\">address quality-of-life issues\u003c/a>, like 911 response times and potholes.\u003c/p>\n\u003cp>As Measure U took effect, the city sent registered businesses letters about the changes — \u003ca href=\"https://www.ci.richmond.ca.us/2913/Measure-U---Gross-Receipts-Ballot-Measur\">4,000 of them went out in January 2022\u003c/a>. But the people KQED spoke to for this story say this was the first time they’d received letters from the city about alleged business activity.\u003c/p>\n\u003cp>Shawn Dunning, a candidate for the District 6 city council seat that includes City Hall, has a business license with the city for his consulting job, even though he said he has no clients in Richmond. He said Measure U changed how businesses’ taxes are calculated but not the requirements for those who need a business license.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“It’s confusing to me why there’s an entirely new approach going on right now,” Dunning said. “I would like to give the benefit of the doubt and hope that this is just an administrative error, but if they are literally just casting a wide net and fishing to see who will take the bait, that would be really sad to me.”\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/12004502/thousands-in-richmond-told-to-get-licenses-for-businesses-many-didnt-even-know-they-owned","authors":["11923"],"categories":["news_1758","news_8"],"tags":["news_579","news_27734","news_423"],"featImg":"news_12004514","label":"news"},"news_12002988":{"type":"posts","id":"news_12002988","meta":{"index":"posts_1716263798","site":"news","id":"12002988","score":null,"sort":[1725485406000]},"guestAuthors":[],"slug":"some-gig-workers-say-they-are-seeing-little-of-prop-22-promises-and-lack-of-enforcement-from-state","title":"Gig Workers Are Seeing Little of Prop. 22 Promises — and Lack of Enforcement From State","publishDate":1725485406,"format":"standard","headTitle":"Gig Workers Are Seeing Little of Prop. 22 Promises — and Lack of Enforcement From State | KQED","labelTerm":{},"content":"\u003cp>Nearly four years after California voters approved better wages and health benefits for ride-hailing drivers and delivery workers, no one is actually ensuring they are provided, according to state agencies, interviews with workers and a review of wage claims filed with the state.\u003c/p>\n\u003cp>Voters mandated the benefits in November 2020 when they approved \u003ca href=\"https://calmatters.org/tag/proposition-22/\">Proposition 22\u003c/a>. The ballot initiative was backed by gig-work companies that wanted to keep their workers classified as independent contractors and were resisting a \u003ca href=\"https://calmatters.org/economy/2024/06/ab-5-california-uber/\">2019 state law\u003c/a> that would have considered them employees. Prop. 22 stipulated that gig workers would remain independent contractors but be treated better.\u003c/p>\n\u003cp>The state Industrial Relations Department, which handles wage claims, now tells CalMatters it does not have jurisdiction to resolve those related to Prop. 22, citing a \u003ca href=\"https://calmatters.org/economy/2024/07/prop-22-california-gig-work-law-upheld/\">July 25 California Supreme Court ruling\u003c/a> that upheld the law and therefore maintains that gig workers are not employees. That effectively passes enforcement responsibility on to the state attorney general, whose office was noncommittal when asked about its plans, saying that it does not adjudicate individual claims but does prosecute companies that systematically violate the law.\u003c/p>\n\u003cp>The lack of enforcement leaves in limbo workers who in many cases have already been waiting for months or years for the state to resolve their complaints. Workers have filed 54 claims related to Prop. 22 since it went into effect in December 2020. At least 32 of them are unresolved, state records obtained by CalMatters show, although at least two of those are due to workers not following through.\u003c/p>\n\u003cp>Of the unresolved claims, one goes back to 2021, several are from 2022 and 2023, and about half are from this year, through May.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Emails included with the claims show that the Industrial Relations Department told one worker it was severely understaffed, and seven others, starting in 2022, that it did not have jurisdiction to help them since they were independent contractors rather than employees.\u003c/p>\n\u003cp>Although the number of claims filed with the state represent just a fraction of the more than 1 million gig workers in California, they give a glimpse into what happens when workers turn to the state for help instead of the companies that backed Prop. 22.\u003c/p>\n\u003cp>Workers say in the claims, and in interviews with CalMatters, that companies such as Uber, Lyft and Instacart failed to provide higher wages and health care stipends under the law, and that the companies’ representatives sometimes act confused or take a long time to handle their requests for Prop. 22 benefits. The gig companies have touted the law as something that has boosted pay and benefits, and have said it has helped gig workers hang on to work they can do whenever they want.\u003c/p>\n\u003cp>Laura Robinson is among the workers who have had to aggressively pursue what they believe they’re owed under the law. For the past year, she has filed claims with the state and fought two different gig-work companies for different benefits promised under Prop. 22. \u003c/p>\n\u003cfigure id=\"attachment_12003065\" class=\"wp-caption alignright\" style=\"max-width: 600px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/052024_Laura-Robinson_ZS_CM_09-1-800x1200.jpg\" alt=\"\" width=\"600\" height=\"1000\" class=\"size-medium wp-image-12003065\">\u003cfigcaption class=\"wp-caption-text\">Laura Robinson in her home in Irvine on May 20, 2024. Robinson, who was in a car accident last year while working for Instacart, was recently informed she will receive occupational accident insurance after months of effort. \u003ccite>(Laura Robinson in her home in Irvine on May 20, 2024. Robinson, who was in a car accident last year while working for Instacart, was recently informed she will receive occupational accident insurance after months of effort. Photo by Zaydee Sanchez/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp> She was making a delivery for Instacart a year ago, she said, when a driver making a U-turn hit her, totaling her car. Now, she said, she has lingering back pain, and has only been able to make a total of a few deliveries over the past several months.\u003c/p>\n\u003cp>Robinson, who lives in Irvine, tried to get Instacart to retroactively provide her with occupational accident insurance as required under Prop. 22.\u003c/p>\n\u003cp>When she first contacted Instacart about the collision, “four or five different (representatives) told me on chat ‘we don’t provide insurance,’ but I told them this is California,” Robinson said. “Finally someone said ‘oh yeah, I know what you’re talking about.’ ” Robinson had some difficulties documenting the accident, because, she said, the responding Torrance Police Department officer rode away on his motorcycle without writing a report. But after about seven months, she finally heard back from Zurich, Instacart’s insurance provider. She received a lump sum, and monthly payments for the time that she has been largely unable to work, according to bank statements and emails from Zurich to her, which she shared with CalMatters.\u003c/p>\n\u003cp>Instacart spokesperson Charlotte Healow said all the company’s shopper support agents should know about “shopper injury protection” and that there is information in the app about how to go about filing claims. But Robinson showed CalMatters several screenshots of her chats with support agents who either thought she was asking about health insurance or who told her someone would email her back about her situation — which eventually happened, though it took a few tries.\u003c/p>\n\u003cp>Robinson said she had also struggled to get a smaller gig platform, food delivery app Curri, to comply with the law. Under Prop. 22, ride-hailing and delivery gig companies are supposed to pay her 120% of minimum wage for the time she spends driving, making up for any shortfall in the pay she receives, but Curri had not done so, she said. Not knowing where to turn, she asked a few different state agencies for help, including the attorney general’s office. She even lodged a complaint with the Federal Motor Carrier Safety Administration’s National Consumer Complaint Database. After several months, the Industrial Relations Department scheduled a hearing for her case for Aug. 29. Last week, the department told her the company decided to settle and pay her what it owed, according to emails and a release she signed that she shared with CalMatters. Curri’s marketing director referred CalMatters to the company’s legal department, which did not return three emailed requests for comment.\u003c/p>\n\u003cp>Robinson saw the upside of Prop. 22 after it passed. She liked being able to continue setting her own hours and saw a bump in her earnings delivering for Grubhub due to the law. But she is now frustrated about how tough it was to figure out who’s supposed to be upholding it.\u003c/p>\n\u003cp>“It’s not helpful if it’s not enforced or applied,” she said. \u003c/p>\n\u003cp>Robinson said the deputy labor commissioner she was in touch with throughout the process of pursuing her claim against Curri told her last week that because Prop. 22 was upheld by the state Supreme Court — effectively ensuring gig workers cannot be considered employees — the department would no longer be handling similar cases because it does not have jurisdiction over independent contractors.\u003c/p>\n\u003ch2>What gig workers are complaining about\u003c/h2>\n\u003cp>The Prop. 22-related wage claims reviewed by CalMatters were part of a larger set of nearly 200 claims that gig workers filed with the Industrial Relations Department since the law took effect in December 2020. Citing the California Public Records Act, CalMatters sought all wage claims in that timeframe involving gig companies, but the state did not provide any claims against DoorDash, which is one of the biggest of the app-based gig companies. A department spokesperson could not explain why.\u003c/p>\n\u003cp>Most of the claimants sought delayed or unpaid wages, including adjustments owed under Prop. 22. Others sought health care stipends required under the gig-work law, and one driver said he sought occupational accident insurance but did not receive it.\u003c/p>\n\u003cp>The claims also shed light on the mechanics of how app companies are allegedly withholding wages. In them, some gig workers claimed that they were deactivated — kicked off or fired by the app — before receiving all their wages. [aside label=\"Related Stories\" tag=\"proposition-22\"]The records also indicate the state had trouble holding app companies to account in a timely fashion. In emails about the claims, some workers frequently asked for updates about their cases and complained about limited communications from the state. This prompted one supervisor in the Industrial Relations Department’s San Francisco office to \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1006930-PRA-HQ-46848.pdf\">respond by email\u003c/a> on May 30, 2024, seemingly noting that gig workers’ complaints were just a fraction of the array of worker complaints the state fields: “I am working with 40% staff shortage. There are over 3,000 cases, most of which are older than yours, and only seven people (total) to handle them.” The department did not respond to requests for comment on whether this shortfall persists.\u003c/p>\n\u003cp>Monetary wage claims ranged from about $2 to nearly $420,000. Most — 54% — were against ride-hailing and delivery giant Uber and 25% were against its rides competitor Lyft. There were 17 claims against grocery-delivery app maker Instacart, seven against food-delivery platform Grubhub, four against Target-owned delivery service Shipt and three against UPS-owned delivery service Roadie.\u003c/p>\n\u003cp>The Industrial Relations Department has long tried to resolve gig workers’ wage disputes. The labor commissioner, who heads the department’s Labor Standards Enforcement Division, still has pending \u003ca href=\"https://www.dir.ca.gov/dlse/Lawsuits-Uber-Lyft.html\">wage-theft lawsuits\u003c/a> against Uber and Lyft that it filed in 2020 on behalf of about 5,000 workers with wage claims going back to 2017.\u003c/p>\n\u003cp>Those cases predate Prop. 22, originating during a period when gig workers were misclassified and should have been considered employees under California law, the labor commissioner argues in the wage-theft suits. After Prop. 22 passed, opponents challenged it and the case ended up before the California Supreme Court, which upheld the law in July, effectively affirming that drivers are independent contractors, not employees. A department spokesperson, Peter Melton, said the ruling means the department can no longer handle claims about missing wage adjustments under the earnings guarantee, unpaid health care stipends or other aspects of the law.\u003c/p>\n\u003cp>Department representatives made similar statements to workers even before Prop. 22 was upheld, the claims records show. An email response, dated March 26, 2024, from the department to an Uber driver \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1007106-PRA-HQ-46848.pdf\">stated\u003c/a>: “The Division of Labor Standards Enforcement enforces employment law. We cannot enforce Prop 22 earnings because they aren’t ‘wages’ earned by ‘employees’.”\u003c/p>\n\u003cp>This echoes the position lawyers for Uber and Lyft took in some of the records when responding to wage claims. They asked the state to dismiss such claims, writing in \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1003300-PRA-HQ-46848.pdf\">one email\u003c/a>: “As of December 16, 2020, drivers using Lyft’s platform are considered independent contractors by statute and, thus, cannot seek relief under the Labor Code.” [aside label=\"More Coverage\" tag=\"gig-economy\"]Now that the department has disavowed responsibility for Prop. 22 claims, the question remains: Who will enforce the law?\u003c/p>\n\u003cp>Scott Kronland, the attorney for Service Employees International Union California who unsuccessfully argued before the state Supreme Court that it should throw out Prop. 22, told CalMatters: “I’ve also heard from drivers that they’re not getting the things they’re promised by Prop. 22.”\u003c/p>\n\u003cp>Kronland said their recourse, after the ruling, is to press local prosecutors or the attorney general, who have the ability to hold companies liable for unlawful business practices under the state’s Unfair Competition Law. Still, he said “enforcement is something the Legislature could clarify.”\u003c/p>\n\u003cp>In an unsigned email response to CalMatters’ questions after the state Supreme Court decision, including whether it planned to pursue Prop.-22-related cases against gig-work companies, the attorney general’s office said gig workers can submit complaints at \u003ca href=\"http://oag.ca.gov/report\">oag.ca.gov/report\u003c/a>. The email added: “Although the Attorney General does not represent individual workers or adjudicate individual complaints by holding administrative hearings like (the Department of Industrial Relations), DOJ brings lawsuits to hold accountable companies that systematically break the law, for example through widespread violations of wage and hour standards. Reports or complaints of employer misconduct are an important part of our work.”\u003c/p>\n\u003cp>When CalMatters previously asked the attorney general’s office for copies of any wage complaints it had received from gig workers thus far, a spokesperson responded that the office was representing the state in its effort to defend \u003ca href=\"https://calmatters.org/economy/2024/05/prop-22-oral-arguments/\">Prop. 22 before the California Supreme Court\u003c/a> — and referred CalMatters back to the Industrial Relations Department.\u003c/p>\n\u003ch3>What gig companies share about Prop. 22’s impact\u003c/h3>\n\u003cp>Gig companies have said that, due in part to the initiative’s earnings guarantee, workers now make more than $30 an hour. But a May study by the UC Berkeley Labor Center found that, for California ride-hailing drivers, average earnings after expenses, not including tips, is about $7.12 an hour, and for delivery workers, $5.93. With tips, drivers’ average hourly earnings are $9.09 an hour, and $13.62 for delivery workers, the study found.\u003c/p>\n\u003cp>To better understand the impact of Prop. 22, CalMatters asked each of the four largest gig companies — Uber, Lyft, DoorDash and Instacart — the following:\u003c/p>\n\u003cul class=\"wp-block-list\">\n\u003cli>How much they have spent on delivering on each of Prop. 22’s four main promises:\n\u003cul class=\"wp-block-list\">\n\u003cli>120% of minimum wage earnings guarantee\u003c/li>\n\u003cli>Health care stipends\u003c/li>\n\u003cli>Occupational accident insurance\u003c/li>\n\u003cli>Accidental death insurance\u003c/li>\n\u003c/ul>\n\u003c/li>\n\u003cli>How many gig workers have received each of the promised benefits.\u003c/li>\n\u003cli>Whether they have passed on costs to consumers, and if so, where they account for those customer fees in their public financial filings.\u003c/li>\n\u003cli>How they handle complaints or issues related to their promises.\u003c/li>\n\u003c/ul>\n\u003cp>Lyft said 85% of California Lyft drivers who have driven for the company since Prop. 22 went into effect have received at least one wage “top up” — the additional money drivers receive under the earnings guarantee — through the end of the fourth quarter of 2023, though spokesperson Shadawn Reddick-Smith would not provide specific numbers of Lyft drivers in the state. None of the other companies would give any information on their delivery of the wage guarantee.\u003c/p>\n\u003cp>Instacart spokesperson Healow said the company has paid out about $40 million in health care subsidies to its delivery workers, which she said number in the tens of thousands in the state. She also said about 11% of California shoppers have become eligible for a health care stipend since Prop. 22 took effect, and that 28% of those eligible shoppers have redeemed their subsidy.\u003c/p>\n\u003cp>To qualify for the health care stipends, workers must work at least 15 hours a week each quarter, and be enrolled in health insurance that is not provided by an employer or the government. Because the gig companies won’t share how many workers have received the stipends, CalMatters asked the state health insurance exchange, Covered California, if it had data that might help shed some light. Seven percent of the 1.6 million people who used Covered California reported doing gig work in a 2023 survey, said a spokesperson for the exchange, Jagdip Dhillon.\u003c/p>\n\u003cp>DoorDash spokesperson Parker Dorrough said that just 11% of eligible couriers used the health care stipend in the fourth quarter of 2023 but that 80% of DoorDash’s delivery workers had health care coverage through another source, such as their full-time job or spouse.\u003c/p>\n\u003cp>None of the other companies would give any information on their delivery of the stipend. Lyft’s Reddick-Smith said 80% of California Lyft drivers already have health care coverage, including 13% who bought their own coverage (this second group is the set of drivers who qualified for the stipend).\u003c/p>\n\u003cfigure id=\"attachment_12003067\" class=\"wp-caption center\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1721\" class=\"size-full wp-image-12003067\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-800x538.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1020x686.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-160x108.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1536x1033.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-2048x1377.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1920x1291.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">A sign is posted on a car as gig workers with the California Gig Workers Union stage a rally against Proposition 22 outside of the California First Appellate District Court of Appeal on December 13, 2022 in San Francisco, California. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>None of the four companies provided the numbers of workers who have used occupational accident or accidental death insurance.\u003c/p>\n\u003cp>None of the companies would disclose how they account for the fees they charge customers for Prop. 22 expenses, nor are the fees included in their publicly available financial filings. Instacart said it does not charge customers for expenses associated with Prop. 22. Lyft said its per-ride service fee includes a 75-cent “California Driver Benefits Fee.” Uber charges customers a “CA Driver Benefits” fee for each ride and delivery in the state and spokesperson Zahid Arab said the company has “invested more than we collected in fees.”\u003c/p>\n\u003cp>Uber published a blog post after CalMatters’ questions, saying it has “invested” more than $1 billion in Prop. 22 benefits. Arab would not break down these benefits further.\u003c/p>\n\u003cp>As for complaints related to the promises, each of the companies said workers should contact support agents, whom they can usually get in touch with in the app; an Instacart spokesperson said workers can make some claims directly in the company’s app.\u003c/p>\n\u003ch3>Seeing little from Prop. 22\u003c/h3>\n\u003cp>Ride-hailing driver Sergio Avedian last year helped raise public awareness of the lack of Prop. 22 enforcement. Specifically, he homed in on one narrow issue: Under the law, gig-work companies were supposed to adjust for inflation each year the reimbursement they pay to drivers for mileage. Avedian said no such adjustment had taken place for two consecutive years. And as a podcaster and contributor to the Rideshare Guy, a popular gig-work blog, he had a high profile. Avedian and a fellow eagle-eyed driver started pestering the state’s treasurer’s office, which had not published the adjusted rates as stipulated under Prop 22. The office eventually did so and, the Los Angeles Times reported, put the state’s gig workers \u003ca href=\"https://www.latimes.com/business/technology/story/2023-06-01/column-uber-david-and-goliath\">on track to get back pay for the mileage expenses\u003c/a> — pay potentially worth hundreds of millions of dollars.\u003c/p>\n\u003cp>Now, a year later, Avedian is curious about gig-company math again. He has asked Uber some of the same questions CalMatters did — including how the company accounts for the driver-benefits fee it adds on to each ride or delivery. The company’s response to him was similar — it provided few specifics.\u003c/p>\n\u003cp>Besides his concern about the issue as a driver, Avedian said “as a consumer who is paying into the Prop. 22 fund on every trip or delivery, I would like to know the accounting of where my money is going.”\u003c/p>\n\u003cp>When the gig companies were campaigning for Prop. 22, they implored voters to “\u003ca href=\"https://www.youtube.com/watch?v=-7QJLgdQaf4\">help create a better path forward for drivers\u003c/a>.”\u003c/p>\n\u003cp>But Avedian and other gig workers in California say their paths have not changed much. Many still complain about low wages, little transparency from the companies and lack of worker protections.\u003c/p>\n\u003cp>Yasha Timenovich said he has worked as a ride-hailing driver for a decade, first with Uber, now with Lyft.\u003c/p>\n\u003cp>“I work 12, 13, 14 hours a day,” said Timenovich, who drives in the Los Angeles area. “But the time I sit and wait at LAX is not accounted for.” He said he has to work long hours to try to make sure he has enough earnings. “We’re not completely independent contractors. We’re not employees. We’re sort of a hybrid model of theirs. We’re pretty much nobody.”\u003c/p>\n\u003cp>He also said he must obtain health insurance through Medi-Cal, California’s health care coverage for low-income residents — which in turn means he doesn’t qualify for the health care stipend. He said every driver he knows “is on Medi-Cal because they can’t afford health insurance. I don’t know anyone who has (the stipend).”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Many drivers voted for Prop. 22, he said. But “what we were told was a lie.”\u003c/p>\n\u003cdiv class=\"wp-block-newspack-blocks-homepage-articles cm-manual-eoa-recirc wpnbha show-image image-alignleft ts-3 is-1 is-landscape cm-manual-eoa-recirc has-text-align-left\">\n\u003cdiv data-posts=\"\" data-current-post-id=\"438437\">\u003c/div>\n\u003c/div>\n\n","blocks":[],"excerpt":"Gig companies pushed for Prop. 22, promising improved pay and benefits for California workers. But when companies fail to deliver, the state isn’t doing much to help push back.","status":"publish","parent":0,"modified":1725486925,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":51,"wordCount":3363},"headData":{"title":"Gig Workers Are Seeing Little of Prop. 22 Promises — and Lack of Enforcement From State | KQED","description":"Gig companies pushed for Prop. 22, promising improved pay and benefits for California workers. But when companies fail to deliver, the state isn’t doing much to help push back.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Gig Workers Are Seeing Little of Prop. 22 Promises — and Lack of Enforcement From State","datePublished":"2024-09-04T14:30:06-07:00","dateModified":"2024-09-04T14:55:25-07:00","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"True","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"source":"CalMatters","sourceUrl":"https://calmatters.org/economy/2024/09/gig-work-california-prop-22-enforcement/","sticky":false,"nprByline":"Levi Sumagaysay, CALMatters","nprStoryId":"kqed-12002988","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/12002988/some-gig-workers-say-they-are-seeing-little-of-prop-22-promises-and-lack-of-enforcement-from-state","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Nearly four years after California voters approved better wages and health benefits for ride-hailing drivers and delivery workers, no one is actually ensuring they are provided, according to state agencies, interviews with workers and a review of wage claims filed with the state.\u003c/p>\n\u003cp>Voters mandated the benefits in November 2020 when they approved \u003ca href=\"https://calmatters.org/tag/proposition-22/\">Proposition 22\u003c/a>. The ballot initiative was backed by gig-work companies that wanted to keep their workers classified as independent contractors and were resisting a \u003ca href=\"https://calmatters.org/economy/2024/06/ab-5-california-uber/\">2019 state law\u003c/a> that would have considered them employees. Prop. 22 stipulated that gig workers would remain independent contractors but be treated better.\u003c/p>\n\u003cp>The state Industrial Relations Department, which handles wage claims, now tells CalMatters it does not have jurisdiction to resolve those related to Prop. 22, citing a \u003ca href=\"https://calmatters.org/economy/2024/07/prop-22-california-gig-work-law-upheld/\">July 25 California Supreme Court ruling\u003c/a> that upheld the law and therefore maintains that gig workers are not employees. That effectively passes enforcement responsibility on to the state attorney general, whose office was noncommittal when asked about its plans, saying that it does not adjudicate individual claims but does prosecute companies that systematically violate the law.\u003c/p>\n\u003cp>The lack of enforcement leaves in limbo workers who in many cases have already been waiting for months or years for the state to resolve their complaints. Workers have filed 54 claims related to Prop. 22 since it went into effect in December 2020. At least 32 of them are unresolved, state records obtained by CalMatters show, although at least two of those are due to workers not following through.\u003c/p>\n\u003cp>Of the unresolved claims, one goes back to 2021, several are from 2022 and 2023, and about half are from this year, through May.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Emails included with the claims show that the Industrial Relations Department told one worker it was severely understaffed, and seven others, starting in 2022, that it did not have jurisdiction to help them since they were independent contractors rather than employees.\u003c/p>\n\u003cp>Although the number of claims filed with the state represent just a fraction of the more than 1 million gig workers in California, they give a glimpse into what happens when workers turn to the state for help instead of the companies that backed Prop. 22.\u003c/p>\n\u003cp>Workers say in the claims, and in interviews with CalMatters, that companies such as Uber, Lyft and Instacart failed to provide higher wages and health care stipends under the law, and that the companies’ representatives sometimes act confused or take a long time to handle their requests for Prop. 22 benefits. The gig companies have touted the law as something that has boosted pay and benefits, and have said it has helped gig workers hang on to work they can do whenever they want.\u003c/p>\n\u003cp>Laura Robinson is among the workers who have had to aggressively pursue what they believe they’re owed under the law. For the past year, she has filed claims with the state and fought two different gig-work companies for different benefits promised under Prop. 22. \u003c/p>\n\u003cfigure id=\"attachment_12003065\" class=\"wp-caption alignright\" style=\"max-width: 600px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/052024_Laura-Robinson_ZS_CM_09-1-800x1200.jpg\" alt=\"\" width=\"600\" height=\"1000\" class=\"size-medium wp-image-12003065\">\u003cfigcaption class=\"wp-caption-text\">Laura Robinson in her home in Irvine on May 20, 2024. Robinson, who was in a car accident last year while working for Instacart, was recently informed she will receive occupational accident insurance after months of effort. \u003ccite>(Laura Robinson in her home in Irvine on May 20, 2024. Robinson, who was in a car accident last year while working for Instacart, was recently informed she will receive occupational accident insurance after months of effort. Photo by Zaydee Sanchez/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp> She was making a delivery for Instacart a year ago, she said, when a driver making a U-turn hit her, totaling her car. Now, she said, she has lingering back pain, and has only been able to make a total of a few deliveries over the past several months.\u003c/p>\n\u003cp>Robinson, who lives in Irvine, tried to get Instacart to retroactively provide her with occupational accident insurance as required under Prop. 22.\u003c/p>\n\u003cp>When she first contacted Instacart about the collision, “four or five different (representatives) told me on chat ‘we don’t provide insurance,’ but I told them this is California,” Robinson said. “Finally someone said ‘oh yeah, I know what you’re talking about.’ ” Robinson had some difficulties documenting the accident, because, she said, the responding Torrance Police Department officer rode away on his motorcycle without writing a report. But after about seven months, she finally heard back from Zurich, Instacart’s insurance provider. She received a lump sum, and monthly payments for the time that she has been largely unable to work, according to bank statements and emails from Zurich to her, which she shared with CalMatters.\u003c/p>\n\u003cp>Instacart spokesperson Charlotte Healow said all the company’s shopper support agents should know about “shopper injury protection” and that there is information in the app about how to go about filing claims. But Robinson showed CalMatters several screenshots of her chats with support agents who either thought she was asking about health insurance or who told her someone would email her back about her situation — which eventually happened, though it took a few tries.\u003c/p>\n\u003cp>Robinson said she had also struggled to get a smaller gig platform, food delivery app Curri, to comply with the law. Under Prop. 22, ride-hailing and delivery gig companies are supposed to pay her 120% of minimum wage for the time she spends driving, making up for any shortfall in the pay she receives, but Curri had not done so, she said. Not knowing where to turn, she asked a few different state agencies for help, including the attorney general’s office. She even lodged a complaint with the Federal Motor Carrier Safety Administration’s National Consumer Complaint Database. After several months, the Industrial Relations Department scheduled a hearing for her case for Aug. 29. Last week, the department told her the company decided to settle and pay her what it owed, according to emails and a release she signed that she shared with CalMatters. Curri’s marketing director referred CalMatters to the company’s legal department, which did not return three emailed requests for comment.\u003c/p>\n\u003cp>Robinson saw the upside of Prop. 22 after it passed. She liked being able to continue setting her own hours and saw a bump in her earnings delivering for Grubhub due to the law. But she is now frustrated about how tough it was to figure out who’s supposed to be upholding it.\u003c/p>\n\u003cp>“It’s not helpful if it’s not enforced or applied,” she said. \u003c/p>\n\u003cp>Robinson said the deputy labor commissioner she was in touch with throughout the process of pursuing her claim against Curri told her last week that because Prop. 22 was upheld by the state Supreme Court — effectively ensuring gig workers cannot be considered employees — the department would no longer be handling similar cases because it does not have jurisdiction over independent contractors.\u003c/p>\n\u003ch2>What gig workers are complaining about\u003c/h2>\n\u003cp>The Prop. 22-related wage claims reviewed by CalMatters were part of a larger set of nearly 200 claims that gig workers filed with the Industrial Relations Department since the law took effect in December 2020. Citing the California Public Records Act, CalMatters sought all wage claims in that timeframe involving gig companies, but the state did not provide any claims against DoorDash, which is one of the biggest of the app-based gig companies. A department spokesperson could not explain why.\u003c/p>\n\u003cp>Most of the claimants sought delayed or unpaid wages, including adjustments owed under Prop. 22. Others sought health care stipends required under the gig-work law, and one driver said he sought occupational accident insurance but did not receive it.\u003c/p>\n\u003cp>The claims also shed light on the mechanics of how app companies are allegedly withholding wages. In them, some gig workers claimed that they were deactivated — kicked off or fired by the app — before receiving all their wages. \u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"Related Stories ","tag":"proposition-22"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>The records also indicate the state had trouble holding app companies to account in a timely fashion. In emails about the claims, some workers frequently asked for updates about their cases and complained about limited communications from the state. This prompted one supervisor in the Industrial Relations Department’s San Francisco office to \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1006930-PRA-HQ-46848.pdf\">respond by email\u003c/a> on May 30, 2024, seemingly noting that gig workers’ complaints were just a fraction of the array of worker complaints the state fields: “I am working with 40% staff shortage. There are over 3,000 cases, most of which are older than yours, and only seven people (total) to handle them.” The department did not respond to requests for comment on whether this shortfall persists.\u003c/p>\n\u003cp>Monetary wage claims ranged from about $2 to nearly $420,000. Most — 54% — were against ride-hailing and delivery giant Uber and 25% were against its rides competitor Lyft. There were 17 claims against grocery-delivery app maker Instacart, seven against food-delivery platform Grubhub, four against Target-owned delivery service Shipt and three against UPS-owned delivery service Roadie.\u003c/p>\n\u003cp>The Industrial Relations Department has long tried to resolve gig workers’ wage disputes. The labor commissioner, who heads the department’s Labor Standards Enforcement Division, still has pending \u003ca href=\"https://www.dir.ca.gov/dlse/Lawsuits-Uber-Lyft.html\">wage-theft lawsuits\u003c/a> against Uber and Lyft that it filed in 2020 on behalf of about 5,000 workers with wage claims going back to 2017.\u003c/p>\n\u003cp>Those cases predate Prop. 22, originating during a period when gig workers were misclassified and should have been considered employees under California law, the labor commissioner argues in the wage-theft suits. After Prop. 22 passed, opponents challenged it and the case ended up before the California Supreme Court, which upheld the law in July, effectively affirming that drivers are independent contractors, not employees. A department spokesperson, Peter Melton, said the ruling means the department can no longer handle claims about missing wage adjustments under the earnings guarantee, unpaid health care stipends or other aspects of the law.\u003c/p>\n\u003cp>Department representatives made similar statements to workers even before Prop. 22 was upheld, the claims records show. An email response, dated March 26, 2024, from the department to an Uber driver \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1007106-PRA-HQ-46848.pdf\">stated\u003c/a>: “The Division of Labor Standards Enforcement enforces employment law. We cannot enforce Prop 22 earnings because they aren’t ‘wages’ earned by ‘employees’.”\u003c/p>\n\u003cp>This echoes the position lawyers for Uber and Lyft took in some of the records when responding to wage claims. They asked the state to dismiss such claims, writing in \u003ca href=\"https://calmatters.org/wp-content/uploads/2024/08/CM-1003300-PRA-HQ-46848.pdf\">one email\u003c/a>: “As of December 16, 2020, drivers using Lyft’s platform are considered independent contractors by statute and, thus, cannot seek relief under the Labor Code.” \u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"More Coverage ","tag":"gig-economy"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Now that the department has disavowed responsibility for Prop. 22 claims, the question remains: Who will enforce the law?\u003c/p>\n\u003cp>Scott Kronland, the attorney for Service Employees International Union California who unsuccessfully argued before the state Supreme Court that it should throw out Prop. 22, told CalMatters: “I’ve also heard from drivers that they’re not getting the things they’re promised by Prop. 22.”\u003c/p>\n\u003cp>Kronland said their recourse, after the ruling, is to press local prosecutors or the attorney general, who have the ability to hold companies liable for unlawful business practices under the state’s Unfair Competition Law. Still, he said “enforcement is something the Legislature could clarify.”\u003c/p>\n\u003cp>In an unsigned email response to CalMatters’ questions after the state Supreme Court decision, including whether it planned to pursue Prop.-22-related cases against gig-work companies, the attorney general’s office said gig workers can submit complaints at \u003ca href=\"http://oag.ca.gov/report\">oag.ca.gov/report\u003c/a>. The email added: “Although the Attorney General does not represent individual workers or adjudicate individual complaints by holding administrative hearings like (the Department of Industrial Relations), DOJ brings lawsuits to hold accountable companies that systematically break the law, for example through widespread violations of wage and hour standards. Reports or complaints of employer misconduct are an important part of our work.”\u003c/p>\n\u003cp>When CalMatters previously asked the attorney general’s office for copies of any wage complaints it had received from gig workers thus far, a spokesperson responded that the office was representing the state in its effort to defend \u003ca href=\"https://calmatters.org/economy/2024/05/prop-22-oral-arguments/\">Prop. 22 before the California Supreme Court\u003c/a> — and referred CalMatters back to the Industrial Relations Department.\u003c/p>\n\u003ch3>What gig companies share about Prop. 22’s impact\u003c/h3>\n\u003cp>Gig companies have said that, due in part to the initiative’s earnings guarantee, workers now make more than $30 an hour. But a May study by the UC Berkeley Labor Center found that, for California ride-hailing drivers, average earnings after expenses, not including tips, is about $7.12 an hour, and for delivery workers, $5.93. With tips, drivers’ average hourly earnings are $9.09 an hour, and $13.62 for delivery workers, the study found.\u003c/p>\n\u003cp>To better understand the impact of Prop. 22, CalMatters asked each of the four largest gig companies — Uber, Lyft, DoorDash and Instacart — the following:\u003c/p>\n\u003cul class=\"wp-block-list\">\n\u003cli>How much they have spent on delivering on each of Prop. 22’s four main promises:\n\u003cul class=\"wp-block-list\">\n\u003cli>120% of minimum wage earnings guarantee\u003c/li>\n\u003cli>Health care stipends\u003c/li>\n\u003cli>Occupational accident insurance\u003c/li>\n\u003cli>Accidental death insurance\u003c/li>\n\u003c/ul>\n\u003c/li>\n\u003cli>How many gig workers have received each of the promised benefits.\u003c/li>\n\u003cli>Whether they have passed on costs to consumers, and if so, where they account for those customer fees in their public financial filings.\u003c/li>\n\u003cli>How they handle complaints or issues related to their promises.\u003c/li>\n\u003c/ul>\n\u003cp>Lyft said 85% of California Lyft drivers who have driven for the company since Prop. 22 went into effect have received at least one wage “top up” — the additional money drivers receive under the earnings guarantee — through the end of the fourth quarter of 2023, though spokesperson Shadawn Reddick-Smith would not provide specific numbers of Lyft drivers in the state. None of the other companies would give any information on their delivery of the wage guarantee.\u003c/p>\n\u003cp>Instacart spokesperson Healow said the company has paid out about $40 million in health care subsidies to its delivery workers, which she said number in the tens of thousands in the state. She also said about 11% of California shoppers have become eligible for a health care stipend since Prop. 22 took effect, and that 28% of those eligible shoppers have redeemed their subsidy.\u003c/p>\n\u003cp>To qualify for the health care stipends, workers must work at least 15 hours a week each quarter, and be enrolled in health insurance that is not provided by an employer or the government. Because the gig companies won’t share how many workers have received the stipends, CalMatters asked the state health insurance exchange, Covered California, if it had data that might help shed some light. Seven percent of the 1.6 million people who used Covered California reported doing gig work in a 2023 survey, said a spokesperson for the exchange, Jagdip Dhillon.\u003c/p>\n\u003cp>DoorDash spokesperson Parker Dorrough said that just 11% of eligible couriers used the health care stipend in the fourth quarter of 2023 but that 80% of DoorDash’s delivery workers had health care coverage through another source, such as their full-time job or spouse.\u003c/p>\n\u003cp>None of the other companies would give any information on their delivery of the stipend. Lyft’s Reddick-Smith said 80% of California Lyft drivers already have health care coverage, including 13% who bought their own coverage (this second group is the set of drivers who qualified for the stipend).\u003c/p>\n\u003cfigure id=\"attachment_12003067\" class=\"wp-caption center\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1721\" class=\"size-full wp-image-12003067\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-800x538.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1020x686.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-160x108.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1536x1033.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-2048x1377.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/GettyImages-1448862196-1-1920x1291.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">A sign is posted on a car as gig workers with the California Gig Workers Union stage a rally against Proposition 22 outside of the California First Appellate District Court of Appeal on December 13, 2022 in San Francisco, California. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>None of the four companies provided the numbers of workers who have used occupational accident or accidental death insurance.\u003c/p>\n\u003cp>None of the companies would disclose how they account for the fees they charge customers for Prop. 22 expenses, nor are the fees included in their publicly available financial filings. Instacart said it does not charge customers for expenses associated with Prop. 22. Lyft said its per-ride service fee includes a 75-cent “California Driver Benefits Fee.” Uber charges customers a “CA Driver Benefits” fee for each ride and delivery in the state and spokesperson Zahid Arab said the company has “invested more than we collected in fees.”\u003c/p>\n\u003cp>Uber published a blog post after CalMatters’ questions, saying it has “invested” more than $1 billion in Prop. 22 benefits. Arab would not break down these benefits further.\u003c/p>\n\u003cp>As for complaints related to the promises, each of the companies said workers should contact support agents, whom they can usually get in touch with in the app; an Instacart spokesperson said workers can make some claims directly in the company’s app.\u003c/p>\n\u003ch3>Seeing little from Prop. 22\u003c/h3>\n\u003cp>Ride-hailing driver Sergio Avedian last year helped raise public awareness of the lack of Prop. 22 enforcement. Specifically, he homed in on one narrow issue: Under the law, gig-work companies were supposed to adjust for inflation each year the reimbursement they pay to drivers for mileage. Avedian said no such adjustment had taken place for two consecutive years. And as a podcaster and contributor to the Rideshare Guy, a popular gig-work blog, he had a high profile. Avedian and a fellow eagle-eyed driver started pestering the state’s treasurer’s office, which had not published the adjusted rates as stipulated under Prop 22. The office eventually did so and, the Los Angeles Times reported, put the state’s gig workers \u003ca href=\"https://www.latimes.com/business/technology/story/2023-06-01/column-uber-david-and-goliath\">on track to get back pay for the mileage expenses\u003c/a> — pay potentially worth hundreds of millions of dollars.\u003c/p>\n\u003cp>Now, a year later, Avedian is curious about gig-company math again. He has asked Uber some of the same questions CalMatters did — including how the company accounts for the driver-benefits fee it adds on to each ride or delivery. The company’s response to him was similar — it provided few specifics.\u003c/p>\n\u003cp>Besides his concern about the issue as a driver, Avedian said “as a consumer who is paying into the Prop. 22 fund on every trip or delivery, I would like to know the accounting of where my money is going.”\u003c/p>\n\u003cp>When the gig companies were campaigning for Prop. 22, they implored voters to “\u003ca href=\"https://www.youtube.com/watch?v=-7QJLgdQaf4\">help create a better path forward for drivers\u003c/a>.”\u003c/p>\n\u003cp>But Avedian and other gig workers in California say their paths have not changed much. Many still complain about low wages, little transparency from the companies and lack of worker protections.\u003c/p>\n\u003cp>Yasha Timenovich said he has worked as a ride-hailing driver for a decade, first with Uber, now with Lyft.\u003c/p>\n\u003cp>“I work 12, 13, 14 hours a day,” said Timenovich, who drives in the Los Angeles area. “But the time I sit and wait at LAX is not accounted for.” He said he has to work long hours to try to make sure he has enough earnings. “We’re not completely independent contractors. We’re not employees. We’re sort of a hybrid model of theirs. We’re pretty much nobody.”\u003c/p>\n\u003cp>He also said he must obtain health insurance through Medi-Cal, California’s health care coverage for low-income residents — which in turn means he doesn’t qualify for the health care stipend. He said every driver he knows “is on Medi-Cal because they can’t afford health insurance. I don’t know anyone who has (the stipend).”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Many drivers voted for Prop. 22, he said. But “what we were told was a lie.”\u003c/p>\n\u003cdiv class=\"wp-block-newspack-blocks-homepage-articles cm-manual-eoa-recirc wpnbha show-image image-alignleft ts-3 is-1 is-landscape cm-manual-eoa-recirc has-text-align-left\">\n\u003cdiv data-posts=\"\" data-current-post-id=\"438437\">\u003c/div>\n\u003c/div>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/12002988/some-gig-workers-say-they-are-seeing-little-of-prop-22-promises-and-lack-of-enforcement-from-state","authors":["byline_news_12002988"],"categories":["news_31795","news_1758","news_8"],"tags":["news_34164","news_17994","news_26585","news_25039","news_4524","news_28695","news_25675","news_4523"],"featImg":"news_12003064","label":"source_news_12002988"},"news_12001621":{"type":"posts","id":"news_12001621","meta":{"index":"posts_1716263798","site":"news","id":"12001621","score":null,"sort":[1724451095000]},"guestAuthors":[],"slug":"interest-rate-cuts-wont-necessarily-help-bay-areas-notorious-housing-market","title":"Interest Rate Cuts Won’t Necessarily Help Bay Area’s Notorious Housing Market","publishDate":1724451095,"format":"standard","headTitle":"Interest Rate Cuts Won’t Necessarily Help Bay Area’s Notorious Housing Market | KQED","labelTerm":{"site":"news"},"content":"\u003cp>Prospective homebuyers could soon see interest rates drop thanks to a cut to the Federal Reserve’s key benchmark, but some experts say tight supply and overwhelming demand are still likely to lead to a tough market for those in California.\u003c/p>\n\u003cp>On Friday, Fed Chairman Jerome Powell signaled that the central banking system would cut interest rates when it meets next in September, though he did not specify how much they will drop. Nationwide average \u003ca href=\"https://fred.stlouisfed.org/series/MORTGAGE30US\">interest rates for a 30-year fixed-rate mortgage\u003c/a> have hovered around 6%–8% for the past year, slowing demand.\u003c/p>\n\u003cp>Although some real estate agents expect the rate decrease to be an encouraging sign of a busy fall season, others are hedging their bets on how much of an effect it will have on a tight California housing market.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Daryl Fairweather, chief economist at Redfin, has watched mortgage rates slowly go down since July. Despite the steady decline, she hasn’t seen more buyers returning to the market, potentially because they expect rates will drop even lower.\u003c/p>\n\u003cp>“The problem is that when you wait to buy until rates are lower, everybody is thinking the same thing, and then competition ends up being much fiercer,” Fairweather said. “By the end of next year, we could see prices high [enough] to the point that those gains in affordability are mostly canceled out.”\u003c/p>\n\u003cp>[aside postID=news_11998121 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/240403-AARONPESKIN-003-BL-KQED-1020x680.jpg']\u003c/p>\n\u003cp>Another potential chilling effect on the market is that existing homeowners might be reluctant to move amid a contentious election season and \u003ca href=\"https://www.cbsnews.com/news/return-to-work-in-office-2025/\">mounting return-to-office requirements\u003c/a>.\u003c/p>\n\u003cp>“People who have bought a home in the last two years with mortgage rates at 7% or higher, they’re all looking to refinance now rather than sell,” said Steven Huang, president of the San Francisco Association of Realtors. “That’s another reason why we think the housing supply is going to be tight.”\u003c/p>\n\u003cp>On the other hand, rate cuts could accelerate a trend in the East Bay, where cities like Dublin and Brentwood have seen significant population gains in recent years as more people take on a longer commute for a chance at homeownership.\u003c/p>\n\u003cp>Barbara Clemons, president of the Bay East Realtors Association, said high interest rates likely led many homeowners to hold off on buying a new home after initially buying when rates dipped in 2021 and 2022.\u003c/p>\n\u003cp>[aside postID=news_11999481 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/020_KQED_OneLoveBlackCommunity_11132022_qed-1020x680.jpg']\u003c/p>\n\u003cp>“Today’s sellers are tomorrow’s buyers, so those people who were maybe on the fence and are leery about the high interest rates and not moving — this is an opportunity now,” she said. “And also for buyers who were hoping interest rates would come down, this is an opportunity for them as well.”\u003c/p>\n\u003cp>Though it’s unclear how the expected Fed rate cut will play out in markets across the state, real estate agents all agree on one thing: If California’s housing inventory remains low, the balance between supply and demand will still be lopsided.\u003c/p>\n\u003cp>Construction firms continue to deal with the fallout from pandemic-era supply chain issues and high borrowing costs. According to a \u003ca href=\"https://blog.bayareametro.gov/posts/report-housing-permits-bay-area-california-dropped-2023#:~:text=California%20issued%20111%2C221%20new%20permits,homeownership%20options%20for%20many%20Californians.\">study from real estate research firm Point 2\u003c/a>, permits for new homes in the Bay Area plunged last year, with the San Francisco-Berkeley-Oakland metro area seeing a 32.2% drop from the previous year — the sharpest decline in the region.\u003c/p>\n\u003cp>Jordan Levine, senior vice president of the California Association of Realtors, said that although the Fed’s rate cut might help, there’s a limit to how much it can do while the housing supply remains low.\u003c/p>\n\u003cp>“A lot of buyers are waiting for lower rates, and they may come in and butt up against our structural supply challenge,” he said. “We’re not building fast enough, causing prices to go up even faster.”\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"With the Federal Reserve poised to lower interest rates, California real estate agents are gearing up for a busy season, but some say it could just make housing more expensive here. ","status":"publish","parent":0,"modified":1724457360,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":18,"wordCount":688},"headData":{"title":"Interest Rate Cuts Won’t Necessarily Help Bay Area’s Notorious Housing Market | KQED","description":"With the Federal Reserve poised to lower interest rates, California real estate agents are gearing up for a busy season, but some say it could just make housing more expensive here. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Interest Rate Cuts Won’t Necessarily Help Bay Area’s Notorious Housing Market","datePublished":"2024-08-23T15:11:35-07:00","dateModified":"2024-08-23T16:56:00-07:00","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"True","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"sticky":false,"nprStoryId":"kqed-12001621","excludeFromSiteSearch":"Include","articleAge":"0","path":"/news/12001621/interest-rate-cuts-wont-necessarily-help-bay-areas-notorious-housing-market","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Prospective homebuyers could soon see interest rates drop thanks to a cut to the Federal Reserve’s key benchmark, but some experts say tight supply and overwhelming demand are still likely to lead to a tough market for those in California.\u003c/p>\n\u003cp>On Friday, Fed Chairman Jerome Powell signaled that the central banking system would cut interest rates when it meets next in September, though he did not specify how much they will drop. Nationwide average \u003ca href=\"https://fred.stlouisfed.org/series/MORTGAGE30US\">interest rates for a 30-year fixed-rate mortgage\u003c/a> have hovered around 6%–8% for the past year, slowing demand.\u003c/p>\n\u003cp>Although some real estate agents expect the rate decrease to be an encouraging sign of a busy fall season, others are hedging their bets on how much of an effect it will have on a tight California housing market.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Daryl Fairweather, chief economist at Redfin, has watched mortgage rates slowly go down since July. Despite the steady decline, she hasn’t seen more buyers returning to the market, potentially because they expect rates will drop even lower.\u003c/p>\n\u003cp>“The problem is that when you wait to buy until rates are lower, everybody is thinking the same thing, and then competition ends up being much fiercer,” Fairweather said. “By the end of next year, we could see prices high [enough] to the point that those gains in affordability are mostly canceled out.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11998121","hero":"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/240403-AARONPESKIN-003-BL-KQED-1020x680.jpg","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Another potential chilling effect on the market is that existing homeowners might be reluctant to move amid a contentious election season and \u003ca href=\"https://www.cbsnews.com/news/return-to-work-in-office-2025/\">mounting return-to-office requirements\u003c/a>.\u003c/p>\n\u003cp>“People who have bought a home in the last two years with mortgage rates at 7% or higher, they’re all looking to refinance now rather than sell,” said Steven Huang, president of the San Francisco Association of Realtors. “That’s another reason why we think the housing supply is going to be tight.”\u003c/p>\n\u003cp>On the other hand, rate cuts could accelerate a trend in the East Bay, where cities like Dublin and Brentwood have seen significant population gains in recent years as more people take on a longer commute for a chance at homeownership.\u003c/p>\n\u003cp>Barbara Clemons, president of the Bay East Realtors Association, said high interest rates likely led many homeowners to hold off on buying a new home after initially buying when rates dipped in 2021 and 2022.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11999481","hero":"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/020_KQED_OneLoveBlackCommunity_11132022_qed-1020x680.jpg","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“Today’s sellers are tomorrow’s buyers, so those people who were maybe on the fence and are leery about the high interest rates and not moving — this is an opportunity now,” she said. “And also for buyers who were hoping interest rates would come down, this is an opportunity for them as well.”\u003c/p>\n\u003cp>Though it’s unclear how the expected Fed rate cut will play out in markets across the state, real estate agents all agree on one thing: If California’s housing inventory remains low, the balance between supply and demand will still be lopsided.\u003c/p>\n\u003cp>Construction firms continue to deal with the fallout from pandemic-era supply chain issues and high borrowing costs. According to a \u003ca href=\"https://blog.bayareametro.gov/posts/report-housing-permits-bay-area-california-dropped-2023#:~:text=California%20issued%20111%2C221%20new%20permits,homeownership%20options%20for%20many%20Californians.\">study from real estate research firm Point 2\u003c/a>, permits for new homes in the Bay Area plunged last year, with the San Francisco-Berkeley-Oakland metro area seeing a 32.2% drop from the previous year — the sharpest decline in the region.\u003c/p>\n\u003cp>Jordan Levine, senior vice president of the California Association of Realtors, said that although the Fed’s rate cut might help, there’s a limit to how much it can do while the housing supply remains low.\u003c/p>\n\u003cp>“A lot of buyers are waiting for lower rates, and they may come in and butt up against our structural supply challenge,” he said. “We’re not building fast enough, causing prices to go up even faster.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/12001621/interest-rate-cuts-wont-necessarily-help-bay-areas-notorious-housing-market","authors":["11672"],"categories":["news_1758","news_6266","news_8"],"tags":["news_18538","news_1775"],"featImg":"news_12001627","label":"news"},"news_12000623":{"type":"posts","id":"news_12000623","meta":{"index":"posts_1716263798","site":"news","id":"12000623","score":null,"sort":[1723892443000]},"guestAuthors":[],"slug":"this-is-a-sea-change-bay-area-realtors-react-as-nar-settlement-goes-into-effect","title":"'This Is a Sea Change': Bay Area Realtors React as NAR Settlement Goes Into Effect","publishDate":1723892443,"format":"standard","headTitle":"‘This Is a Sea Change’: Bay Area Realtors React as NAR Settlement Goes Into Effect | KQED","labelTerm":{"site":"news"},"content":"\u003cp>Homebuyers and sellers are about to experience a seismic change in how they work with realtors. A \u003ca href=\"https://www.kqed.org/news/11980019/national-association-realtors-class-action-lawsuit-buy-sell-house-california-is-about-to-change-heres-how\">settlement agreement in a major class-action lawsuit\u003c/a> against the National Association of Realtors goes into effect on Saturday— and it’s already impacting realtors across the Bay Area.\u003c/p>\n\u003cp>“This is a sea change for both the consumer and for real estate professionals,” Tricia Thomas, CEO of Bay East Association of Realtors, said. “Everyone is entering into waters that they are not familiar with.”\u003c/p>\n\u003cp>The lawsuit accused the trade association of artificially inflating the commissions agents can make in home sales, made possible by a lack of transparency in how a home sale’s commission is split between buying and selling agents.\u003c/p>\n\u003cp>Now, a home buyer and home seller will have to separately negotiate commission rates with their respective agents. Due to the $418 million settlement, agents can no longer list their commission rate on multiple real estate listing service websites like Zillow or Redfin.\u003c/p>\n\u003cp>Thomas said realtors will also have to be more transparent in the kinds of services they will provide clients and will have to justify their commission rates accordingly.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“You may have two houses that look the same on the outside, but on the inside, one seller improved it radically and the other didn’t,” she said. “That’s going to impact how long the house sits on the market, what kinds of services that realtor is going to provide — it may mean more marketing, different kinds of marketing.”\u003c/p>\n\u003cp>Previously, if you were selling a home on Zillow, Redfin or another multiple-listing service website, you might have seen an agent’s commission fee listed. While there wasn’t a rule specifying the commission rate, the industry practice was to set it at around 5-6% of the home’s sale price.\u003c/p>\n\u003cp>Then, the seller’s agent and buyer’s agent would negotiate with each other to determine how that commission would be split amongst them. While realtors have long argued that the commission rate is negotiable, many home buyers and sellers would proceed with a home sale based on the rate listed on the listing website.\u003c/p>\n\u003cp>This practice led to buying agents steering their clients towards homes with higher commission rates. \u003ca href=\"https://www.brookings.edu/wp-content/uploads/2019/12/ES-12.12.19-Barwick-Wong.pdf\">Research has shown\u003c/a> this system inhibited competition in some sales and even caused some home sellers to provide a higher commission, regardless of the work the realtor might have done to sell the home.\u003c/p>\n\u003cp>[aside label='More Housing Coverage' tag='housing']\u003c/p>\n\u003cp>Steven Huang, president of the San Francisco Association of Realtors, said these new rules will also force realtors to educate their clients about the complicated home selling and buying process.\u003c/p>\n\u003cp>“A lot of times, consumers are not educated from A to Z up front,” he said. “We as real estate agents need to just thoroughly educate the consumer and let them know what our value is and then let the consumer decide what is a fair payment for that service.”\u003c/p>\n\u003cp>The lawsuit is just one harbinger of change for the real estate industry. A \u003ca href=\"https://legiscan.com/CA/text/AB2992/id/2965736\">proposed state bill\u003c/a> currently making its way through the Senate titled “Buyer-Broker Representation Agreements” would, if passed, require a buyer’s agent to enter into a contract detailing compensation rates and services the agent would provide before the agent starts touring homes with their client.\u003c/p>\n\u003cp>“This contract will actually have you sit down and go over why you’re being compensated, how you plan to be compensated and what kind of value you are bringing to the table for your client,” Michelle Perry, president of the Santa Clara County Association of Realtors, said. “Now we’re going to show our value even more.”\u003c/p>\n\u003cp>As the Federal Reserve is \u003ca href=\"https://www.reuters.com/markets/rates-bonds/fed-officials-show-more-openness-september-rate-cut-2024-08-15/\">expected to lower interest rates next month\u003c/a> and realtors are seeing a \u003ca href=\"https://fred.stlouisfed.org/series/ACTLISCOU41860\">rise in homes being actively listed in the Bay Area\u003c/a>, agents are preparing to see how these new rules play out.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“This is happening as the market is moving along and we’re anticipating a pretty busy fall,” said David Stark, a spokesperson for Bay East Realtors Association. “Call us in three months and then six months to see how it’s working out.”\u003c/p>\n\n","blocks":[],"excerpt":"A multimillion-dollar settlement goes into effect on Saturday, changing how realtors can earn commissions when buying and selling homes. Experts say it could drastically change the real estate market.","status":"publish","parent":0,"modified":1723856660,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":18,"wordCount":733},"headData":{"title":"'This Is a Sea Change': Bay Area Realtors React as NAR Settlement Goes Into Effect | KQED","description":"A multimillion-dollar settlement goes into effect on Saturday, changing how realtors can earn commissions when buying and selling homes. Experts say it could drastically change the real estate market.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"'This Is a Sea Change': Bay Area Realtors React as NAR Settlement Goes Into Effect","datePublished":"2024-08-17T04:00:43-07:00","dateModified":"2024-08-16T18:04:20-07:00","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"True","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"sticky":false,"excludeFromSiteSearch":"Include","articleAge":"0","path":"/news/12000623/this-is-a-sea-change-bay-area-realtors-react-as-nar-settlement-goes-into-effect","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Homebuyers and sellers are about to experience a seismic change in how they work with realtors. A \u003ca href=\"https://www.kqed.org/news/11980019/national-association-realtors-class-action-lawsuit-buy-sell-house-california-is-about-to-change-heres-how\">settlement agreement in a major class-action lawsuit\u003c/a> against the National Association of Realtors goes into effect on Saturday— and it’s already impacting realtors across the Bay Area.\u003c/p>\n\u003cp>“This is a sea change for both the consumer and for real estate professionals,” Tricia Thomas, CEO of Bay East Association of Realtors, said. “Everyone is entering into waters that they are not familiar with.”\u003c/p>\n\u003cp>The lawsuit accused the trade association of artificially inflating the commissions agents can make in home sales, made possible by a lack of transparency in how a home sale’s commission is split between buying and selling agents.\u003c/p>\n\u003cp>Now, a home buyer and home seller will have to separately negotiate commission rates with their respective agents. Due to the $418 million settlement, agents can no longer list their commission rate on multiple real estate listing service websites like Zillow or Redfin.\u003c/p>\n\u003cp>Thomas said realtors will also have to be more transparent in the kinds of services they will provide clients and will have to justify their commission rates accordingly.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“You may have two houses that look the same on the outside, but on the inside, one seller improved it radically and the other didn’t,” she said. “That’s going to impact how long the house sits on the market, what kinds of services that realtor is going to provide — it may mean more marketing, different kinds of marketing.”\u003c/p>\n\u003cp>Previously, if you were selling a home on Zillow, Redfin or another multiple-listing service website, you might have seen an agent’s commission fee listed. While there wasn’t a rule specifying the commission rate, the industry practice was to set it at around 5-6% of the home’s sale price.\u003c/p>\n\u003cp>Then, the seller’s agent and buyer’s agent would negotiate with each other to determine how that commission would be split amongst them. While realtors have long argued that the commission rate is negotiable, many home buyers and sellers would proceed with a home sale based on the rate listed on the listing website.\u003c/p>\n\u003cp>This practice led to buying agents steering their clients towards homes with higher commission rates. \u003ca href=\"https://www.brookings.edu/wp-content/uploads/2019/12/ES-12.12.19-Barwick-Wong.pdf\">Research has shown\u003c/a> this system inhibited competition in some sales and even caused some home sellers to provide a higher commission, regardless of the work the realtor might have done to sell the home.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"More Housing Coverage ","tag":"housing"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Steven Huang, president of the San Francisco Association of Realtors, said these new rules will also force realtors to educate their clients about the complicated home selling and buying process.\u003c/p>\n\u003cp>“A lot of times, consumers are not educated from A to Z up front,” he said. “We as real estate agents need to just thoroughly educate the consumer and let them know what our value is and then let the consumer decide what is a fair payment for that service.”\u003c/p>\n\u003cp>The lawsuit is just one harbinger of change for the real estate industry. A \u003ca href=\"https://legiscan.com/CA/text/AB2992/id/2965736\">proposed state bill\u003c/a> currently making its way through the Senate titled “Buyer-Broker Representation Agreements” would, if passed, require a buyer’s agent to enter into a contract detailing compensation rates and services the agent would provide before the agent starts touring homes with their client.\u003c/p>\n\u003cp>“This contract will actually have you sit down and go over why you’re being compensated, how you plan to be compensated and what kind of value you are bringing to the table for your client,” Michelle Perry, president of the Santa Clara County Association of Realtors, said. “Now we’re going to show our value even more.”\u003c/p>\n\u003cp>As the Federal Reserve is \u003ca href=\"https://www.reuters.com/markets/rates-bonds/fed-officials-show-more-openness-september-rate-cut-2024-08-15/\">expected to lower interest rates next month\u003c/a> and realtors are seeing a \u003ca href=\"https://fred.stlouisfed.org/series/ACTLISCOU41860\">rise in homes being actively listed in the Bay Area\u003c/a>, agents are preparing to see how these new rules play out.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“This is happening as the market is moving along and we’re anticipating a pretty busy fall,” said David Stark, a spokesperson for Bay East Realtors Association. “Call us in three months and then six months to see how it’s working out.”\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/12000623/this-is-a-sea-change-bay-area-realtors-react-as-nar-settlement-goes-into-effect","authors":["11672"],"categories":["news_1758","news_6266","news_8"],"tags":["news_27626","news_1775","news_137"],"featImg":"news_12000627","label":"news"},"news_11999172":{"type":"posts","id":"news_11999172","meta":{"index":"posts_1716263798","site":"news","id":"11999172","score":null,"sort":[1723150812000]},"guestAuthors":[],"slug":"californians-say-they-were-fired-for-leaving-their-jobs-in-sweltering-heat-is-the-state-on-their-side","title":"They Were Fired After Leaving Their Jobs in Sweltering Heat. Is the State on Their Side?","publishDate":1723150812,"format":"standard","headTitle":"They Were Fired After Leaving Their Jobs in Sweltering Heat. Is the State on Their Side? | KQED","labelTerm":{"term":18481,"site":"news"},"content":"\u003cp>They worked nearly three triple-digit days before it felt unsafe to go on.\u003c/p>\n\u003cp>Maria Paredes said she already had a headache while working in a tomato field near Dixon on June 5, when high temperatures hit between 99 to 107 degrees. The hotter the next day got, the 40-year-old farmworker said, “the more it started to go back to my head, and I started to feel like vomiting.”\u003c/p>\n\u003cp>Seeing other workers feeling ill, Paredes and five coworkers said they got their forewoman’s permission to go home early on June 6, during one of the first heat waves this year.\u003c/p>\n\u003cp>But when they showed up again at dawn the next day, they were given their last checks — and told there was no more work for them.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Two state agencies are investigating the incident as a retaliatory firing. Conrad Ruiz, owner of the contractor that employed the workers, denied that’s what happened but declined to explain further.\u003c/p>\n\u003cp>As California confronts the dangers of extreme heat, labor advocates say some workers are underprotected despite the state’s nearly two-decade-old outdoor workplace heat rules. \u003ca href=\"https://calmatters.org/politics/capitol/2024/02/california-farmworkers-safety/\">Enforcement is slow, the Division of Occupational Safety and Health is understaffed\u003c/a> and hesitance to report poor conditions is widespread among low-wage workers. After a sharp decrease in inspections during the COVID-19 pandemic, Cal/OSHA reports show the agency hasn’t returned to its pre-pandemic heat enforcement levels.\u003c/p>\n\u003cp>Following up on the workers’ complaint, the agency is investigating whether Ruiz had followed the heat rules, which require water, shade, breaks, training for workers and a plan to prevent heat illness.\u003c/p>\n\u003cp>Those who were let go say they’re worried the incident will discourage their former coworkers from taking breaks or raising concerns. As they await the results of the state’s investigations, they have embarked on a series of media interviews to warn other farmworkers of the risks of heat illness.\u003c/p>\n\u003cp>“If you die in the fields, what will happen to your kids?” asks Paredes, who made $16 an hour in the tomato field.\u003c/p>\n\u003cfigure id=\"attachment_11999176\" class=\"wp-caption alignnone\" style=\"max-width: 1548px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11999176\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522.jpg\" alt=\"\" width=\"1548\" height=\"944\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522.jpg 1548w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522-800x488.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522-1020x622.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522-160x98.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522-1536x937.jpg 1536w\" sizes=\"(max-width: 1548px) 100vw, 1548px\">\u003cfigcaption class=\"wp-caption-text\">Farmworker Maria Paredes, 40, at City Park in Winters on June 10, 2024. She lost her job at a tomato field the day after she decided to go home early after feeling sick due to the heat. \u003ccite>(Laure Andrillon for CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>A 2022 \u003ca href=\"https://clc.ucmerced.edu/sites/clc.ucmerced.edu/files/page/documents/fwhs_report_2.2.2383.pdf\">UC Merced study (PDF)\u003c/a> found that 20% of surveyed farmworkers said their employers never monitored the temperature on hot days, as required by the state rules, and 15% said they were never provided shade. More than a quarter of workers said they were unaware of their right to file safety complaints, and nearly two-thirds said they would not report a violation out of fear of retaliation or concern they’d lose their jobs.\u003c/p>\n\u003cp>The United Farm Workers union this year is pushing a bill that they say will prompt employers to make farm work safer.\u003c/p>\n\u003cp>\u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240sb1299?slug=CA_202320240SB1299\">Senate Bill 1299\u003c/a> — authored by Silicon Valley Democratic Sen. \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/dave-cortese-164699\">Dave Cortese\u003c/a>, a former farmworker, and co-authored by Assembly Speaker \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/robert-rivas-165041\">Robert Rivas\u003c/a>, a Salinas Democrat and \u003ca href=\"https://x.com/EytanWallace/status/1590921265019486208\">son of farmworkers\u003c/a> — would make it easier for workers to make a workers’ compensation claim for heat illness. It would specifically apply when employers can’t prove they were taking all the required precautions under the heat rule.\u003c/p>\n\u003cp>Workers’ compensation claims cover all workplace injuries regardless of whether the employer is at fault. An approved claim can cover costs such as medical care, lost wages and death benefits to family members; it’s paid for by insurance policies that employers purchase. But it’s often difficult to prove heat illness cases were developed at work, said Megan Ruble, president of the California Applicants’ Attorneys Association, whose members represent injured workers.\u003c/p>\n\u003cp>[aside label=\"Related Stories\" postID=\"news_11999014,news_11886628,news_11991314\"]\u003c/p>\n\u003cp>The bill proposes tying eligibility for workers’ comp coverage to not following the Cal/OSHA heat rules, despite the two systems being handled by separate state agencies — a novel approach that the union says adds financial pressure for employers to protect workers.\u003c/p>\n\u003cp>“Cal/OSHA’s enforcement is limited,” UFW President Teresa Romero said during a June hearing on the bill. “It is nearly impossible, and no amount of money can monitor approximately 40,000 farms in this state. For the basic standards in outdoor heat regulations, this bill encourages employer compliance.”\u003c/p>\n\u003cp>The California Chamber of Commerce and insurance carriers, however, \u003ca href=\"https://advocacy.calchamber.com/2024/08/05/advertising-tax-ai-regulation-and-other-bills-to-watch-in-final-month-of-legislative-session/\">oppose the bill\u003c/a>, arguing that the workers’ comp system should not be enforcing Cal/OSHA’s rules. They also warn the bill could saddle employers and insurance companies with unrelated injuries. A study \u003ca href=\"https://www.cwci.org/document.php?file=5767.pdf\">conducted by an insurers’ organization (PDF)\u003c/a> found less than 1% of California agricultural workers’ comp claims involved heat injuries.\u003c/p>\n\u003cp>Bryan Little, director of labor affairs at the California Farm Bureau, an association of growers and labor contractors, is skeptical that more regulation is needed. He said he regularly educates farm employers on heat safety; many have responded to extreme heat by shifting work schedules, using more machinery instead of hired labor or at times even scheduling shifts at night. It’s not uncommon, he said, for supervisors to cut the workday short rather than risk workers’ safety.\u003c/p>\n\u003cp>“The regulations have been in place a long time, everybody understands it, and it works as a result,” Little said.\u003c/p>\n\u003cp>Still, the bill has sailed through the Legislature so far with the endorsement of liberal politicians eager to stake a claim on protecting vulnerable groups in the face of climate change. Attorney General Rob Bonta also supports the legislation, which could be heard in the Assembly Appropriations Committee as soon as today.\u003c/p>\n\u003cp>Nationally, policymakers are looking at California as they grapple with how to prevent workplace heat illness. The Biden administration last month announced a federal workplace heat rule that mirrors many of the state’s requirements. Tuesday, Health and Human Services Secretary Xavier Becerra marked \u003ca href=\"https://x.com/SenToniAtkins/status/1820862594107994180\">Farmworker Appreciation Day\u003c/a> by meeting a group of grape pickers in the Sacramento Delta and touting planned programs to give farmworkers and employers “advance warnings” of extreme heat and wildfire smoke levels.\u003c/p>\n\u003cp>Some of the workers he met said they worry about the heat — but worry about paying their bills more. Sayda Turcios, a Yolo County farmworker and member of the advocacy group Líderes Campesinas, said the hotter it gets, the more she sees her hours cut when supervisors decide it’s unsafe to work.\u003c/p>\n\u003cp>“It affects us in pay,” she said. “They end work early, three or four hours. At the end of the week, when they pay us, it’s reduced a lot.”\u003c/p>\n\u003cfigure id=\"attachment_11999179\" class=\"wp-caption alignnone\" style=\"max-width: 1568px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11999179\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy.jpg\" alt=\"\" width=\"1568\" height=\"1045\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy-1536x1024.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003cfigcaption class=\"wp-caption-text\">Farmworkers work on a field outside Mendota in Fresno County on July 12, 2023. \u003ccite>(Larry Valenzuela/CalMatters/CatchLight Local)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>California was the first state in the nation to adopt outdoor heat rules in 2005 after the deaths of four farmworkers.\u003c/p>\n\u003cp>The rules require outdoor employers to provide water, shade, breaks and training to workers on preventing heat illness. On days hotter than 95 degrees, even stricter regulations apply for certain industries, including agriculture and construction. Farm employers must provide 10-minute breaks every two hours of work.\u003c/p>\n\u003cp>The United Farm Workers sued twice, in 2009 and 2012, to boost Cal/OSHA’s enforcement of the rule. It’s now \u003ca href=\"https://www.dir.ca.gov/dosh/statistics/Frequently-cited-standards.html\">one of the most-cited\u003c/a> workplace safety violations. The agency must respond to complaints with an in-person inspection rather than an \u003ca href=\"https://calmatters.org/california-divide/2020/10/cal-osha-response-covid-complaints/\">inquiry “by letter.”\u003c/a>\u003c/p>\n\u003cp>However, state reports\u003cstrong> \u003c/strong>show that the enforcement of heat rules has declined in recent years, even as heat waves grow longer \u003ca href=\"https://earthobservatory.nasa.gov/images/147256/california-heatwave-fits-a-trend\">and more intense\u003c/a>. A Cal/OSHA report, which includes data for almost all of 2023, shows the agency opened 1,000 fewer heat-related inspections than in 2019 and issued nearly 800 fewer citations.\u003c/p>\n\u003cp>\u003cimg loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11999193\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29%E2%80%AFPM-scaled-e1723055678276.jpg\" alt=\"\" width=\"2150\" height=\"840\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276.jpg 2150w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-800x313.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-1020x399.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-160x63.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-1536x600.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-2048x800.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-1920x750.jpg 1920w\" sizes=\"(max-width: 2150px) 100vw, 2150px\">\u003c/p>\n\u003cp>Two months after being let go, the group of workers at the Dixon tomato farm are still waiting to hear the results of their complaints.\u003c/p>\n\u003cp>Jorge Santana said he called Cal/OSHA to report concerns about heat safety at Ruiz Farm Labor the day the workers were dismissed but said he only spoke with an inspector about three weeks later.\u003c/p>\n\u003cp>Some of the workers said they spoke in June with the Agricultural Labor Relations Board, which confirmed it has opened an investigation into the dismissals. And some, with the help of local advocate and United Farm Workers spokesperson Antonio De Loera-Brust, also filed a retaliation complaint at the state Labor Commissioner’s Office.\u003c/p>\n\u003cfigure id=\"attachment_11999180\" class=\"wp-caption alignnone\" style=\"max-width: 1568px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11999180\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy.jpg\" alt=\"\" width=\"1568\" height=\"1045\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy-1536x1024.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003cfigcaption class=\"wp-caption-text\">Farmworker Jorge Santana, 61, at City Park in Winters on June 10, 2024. \u003ccite>(Laure Andrillon for CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Reached by phone in July, Ruiz, the labor contractor, said none of the workers had been fired. “They weren’t fired, they were let go,” he said. “Everybody’s got it wrong. You’re going to have to talk to my lawyer.”\u003c/p>\n\u003cp>But he declined to refer a reporter to the attorney, saying only, “She’s telling me to say no comment.”\u003c/p>\n\u003cp>CalMatters spoke with five of the six who were dismissed, including Paredes. Their accounts match hers and the retaliation complaint. Several said they saw other workers who felt ill but finished the workday.\u003c/p>\n\u003cp>Santana, 61, said he knew the state’s heat rules from previous work in construction. He said there was water and shade for workers at the tomato field, but on forecasted hot days, supervisors didn’t always hold meetings to remind workers of the risks, which he said is common in other fields. When he saw others getting sick on June 6, he didn’t want to risk it and left along with Paredes and four others.\u003c/p>\n\u003cp>When they were handed their checks the next day, Santana said he argued with Ruiz over the phone.\u003c/p>\n\u003cp>“I tried to tell him, there was a lot of people around here feeling sick and getting sick because of the heat,” Santana said. “He said, ‘The checks are made out, I don’t have to explain.’”\u003c/p>\n\u003cfigure id=\"attachment_11999182\" class=\"wp-caption alignnone\" style=\"max-width: 1568px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11999182\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594.jpg\" alt=\"\" width=\"1568\" height=\"976\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594-800x498.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594-1020x635.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594-160x100.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594-1536x956.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003cfigcaption class=\"wp-caption-text\">Farmworker Gerardo Reyes, 69, at City Park in Winters on June 10, 2024. \u003ccite>(Laure Andrillon for CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Santana and another worker, Gerardo Reyes, disputed Ruiz’s characterization and said the six workers were fired in retaliation for raising concerns about heat. They said there was still work on June 7 for all the crew members who hadn’t left the field.\u003c/p>\n\u003cp>Santana said he doesn’t regret raising concerns: “I’d rather lose a couple of hours of work than lose my life.”\u003c/p>\n\u003cp>The worker who felt the most ill, a 32-year-old woman, felt differently. “If I had known they were going to fire me,” the next day, she said, “I would have stayed. I would have held on.”\u003c/p>\n\u003cp>The worker declined to file a complaint out of fear of jeopardizing an immigration case and agreed to an interview only if she was not named.\u003c/p>\n\u003cp>She said she had felt sick on a hot day about two weeks prior, and a relative of the forewoman had taken her home early. Reyes, a longtime farmworker with whom the 32-year-old carpools, corroborated her account.\u003c/p>\n\u003cp>On June 6, she said, she again felt dizzy and nauseated. At the forewoman’s direction, she took a break under a tree, taking off her hat, gloves and shoes. It helped, she said, but when she returned to work, temperatures had climbed. She was shaking, had stopped sweating and said she thought she might fall over.\u003c/p>\n\u003cp>It was Reyes who insisted she couldn’t keep working; he was among those who left — with the forewoman’s permission, he said — so that he could drive her home.\u003c/p>\n\u003cp>The pair have since found a couple of other jobs in the fields, but both times, the work ran out after about a week. In one of them, the woman said she felt ill again and missed a day of work during the early July heat wave. Around her, she said, she saw older workers falling ill with hardly any shade. But she didn’t make a report.\u003c/p>\n\u003cp>With debts to pay and three children to support overseas, she said she’s desperate to find another job. She considers farm work her only prospect, though she said she now knows of the dangers of working outside in extreme heat.\u003c/p>\n\u003cp>“I’m the one who has to adapt,” she said. “The weather is something no one can control.”\u003c/p>\n\u003cp>\u003cem>CalMatters’ Carlos Aviles contributed to this story.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"While California has rules to protect farmworkers from excessive heat, inspections and citations are significantly down. A bill before the Legislature would make it easier to file workers’ compensation claims for heat illnesses.","status":"publish","parent":0,"modified":1723070026,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":50,"wordCount":2157},"headData":{"title":"They Were Fired After Leaving Their Jobs in Sweltering Heat. Is the State on Their Side? | KQED","description":"While California has rules to protect farmworkers from excessive heat, inspections and citations are significantly down. A bill before the Legislature would make it easier to file workers’ compensation claims for heat illnesses.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"They Were Fired After Leaving Their Jobs in Sweltering Heat. Is the State on Their Side?","datePublished":"2024-08-08T14:00:12-07:00","dateModified":"2024-08-07T15:33:46-07:00","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"True","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"sticky":false,"nprByline":"\u003ca href=\"https://calmatters.org/author/jeanne-kuang/\">Jeanne Kuang\u003c/a>, CalMatters","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11999172/californians-say-they-were-fired-for-leaving-their-jobs-in-sweltering-heat-is-the-state-on-their-side","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>They worked nearly three triple-digit days before it felt unsafe to go on.\u003c/p>\n\u003cp>Maria Paredes said she already had a headache while working in a tomato field near Dixon on June 5, when high temperatures hit between 99 to 107 degrees. The hotter the next day got, the 40-year-old farmworker said, “the more it started to go back to my head, and I started to feel like vomiting.”\u003c/p>\n\u003cp>Seeing other workers feeling ill, Paredes and five coworkers said they got their forewoman’s permission to go home early on June 6, during one of the first heat waves this year.\u003c/p>\n\u003cp>But when they showed up again at dawn the next day, they were given their last checks — and told there was no more work for them.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Two state agencies are investigating the incident as a retaliatory firing. Conrad Ruiz, owner of the contractor that employed the workers, denied that’s what happened but declined to explain further.\u003c/p>\n\u003cp>As California confronts the dangers of extreme heat, labor advocates say some workers are underprotected despite the state’s nearly two-decade-old outdoor workplace heat rules. \u003ca href=\"https://calmatters.org/politics/capitol/2024/02/california-farmworkers-safety/\">Enforcement is slow, the Division of Occupational Safety and Health is understaffed\u003c/a> and hesitance to report poor conditions is widespread among low-wage workers. After a sharp decrease in inspections during the COVID-19 pandemic, Cal/OSHA reports show the agency hasn’t returned to its pre-pandemic heat enforcement levels.\u003c/p>\n\u003cp>Following up on the workers’ complaint, the agency is investigating whether Ruiz had followed the heat rules, which require water, shade, breaks, training for workers and a plan to prevent heat illness.\u003c/p>\n\u003cp>Those who were let go say they’re worried the incident will discourage their former coworkers from taking breaks or raising concerns. As they await the results of the state’s investigations, they have embarked on a series of media interviews to warn other farmworkers of the risks of heat illness.\u003c/p>\n\u003cp>“If you die in the fields, what will happen to your kids?” asks Paredes, who made $16 an hour in the tomato field.\u003c/p>\n\u003cfigure id=\"attachment_11999176\" class=\"wp-caption alignnone\" style=\"max-width: 1548px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11999176\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522.jpg\" alt=\"\" width=\"1548\" height=\"944\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522.jpg 1548w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522-800x488.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522-1020x622.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522-160x98.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers-LA_CM_15-copy-e1723053362522-1536x937.jpg 1536w\" sizes=\"(max-width: 1548px) 100vw, 1548px\">\u003cfigcaption class=\"wp-caption-text\">Farmworker Maria Paredes, 40, at City Park in Winters on June 10, 2024. She lost her job at a tomato field the day after she decided to go home early after feeling sick due to the heat. \u003ccite>(Laure Andrillon for CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>A 2022 \u003ca href=\"https://clc.ucmerced.edu/sites/clc.ucmerced.edu/files/page/documents/fwhs_report_2.2.2383.pdf\">UC Merced study (PDF)\u003c/a> found that 20% of surveyed farmworkers said their employers never monitored the temperature on hot days, as required by the state rules, and 15% said they were never provided shade. More than a quarter of workers said they were unaware of their right to file safety complaints, and nearly two-thirds said they would not report a violation out of fear of retaliation or concern they’d lose their jobs.\u003c/p>\n\u003cp>The United Farm Workers union this year is pushing a bill that they say will prompt employers to make farm work safer.\u003c/p>\n\u003cp>\u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240sb1299?slug=CA_202320240SB1299\">Senate Bill 1299\u003c/a> — authored by Silicon Valley Democratic Sen. \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/dave-cortese-164699\">Dave Cortese\u003c/a>, a former farmworker, and co-authored by Assembly Speaker \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/robert-rivas-165041\">Robert Rivas\u003c/a>, a Salinas Democrat and \u003ca href=\"https://x.com/EytanWallace/status/1590921265019486208\">son of farmworkers\u003c/a> — would make it easier for workers to make a workers’ compensation claim for heat illness. It would specifically apply when employers can’t prove they were taking all the required precautions under the heat rule.\u003c/p>\n\u003cp>Workers’ compensation claims cover all workplace injuries regardless of whether the employer is at fault. An approved claim can cover costs such as medical care, lost wages and death benefits to family members; it’s paid for by insurance policies that employers purchase. But it’s often difficult to prove heat illness cases were developed at work, said Megan Ruble, president of the California Applicants’ Attorneys Association, whose members represent injured workers.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"Related Stories ","postid":"news_11999014,news_11886628,news_11991314"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The bill proposes tying eligibility for workers’ comp coverage to not following the Cal/OSHA heat rules, despite the two systems being handled by separate state agencies — a novel approach that the union says adds financial pressure for employers to protect workers.\u003c/p>\n\u003cp>“Cal/OSHA’s enforcement is limited,” UFW President Teresa Romero said during a June hearing on the bill. “It is nearly impossible, and no amount of money can monitor approximately 40,000 farms in this state. For the basic standards in outdoor heat regulations, this bill encourages employer compliance.”\u003c/p>\n\u003cp>The California Chamber of Commerce and insurance carriers, however, \u003ca href=\"https://advocacy.calchamber.com/2024/08/05/advertising-tax-ai-regulation-and-other-bills-to-watch-in-final-month-of-legislative-session/\">oppose the bill\u003c/a>, arguing that the workers’ comp system should not be enforcing Cal/OSHA’s rules. They also warn the bill could saddle employers and insurance companies with unrelated injuries. A study \u003ca href=\"https://www.cwci.org/document.php?file=5767.pdf\">conducted by an insurers’ organization (PDF)\u003c/a> found less than 1% of California agricultural workers’ comp claims involved heat injuries.\u003c/p>\n\u003cp>Bryan Little, director of labor affairs at the California Farm Bureau, an association of growers and labor contractors, is skeptical that more regulation is needed. He said he regularly educates farm employers on heat safety; many have responded to extreme heat by shifting work schedules, using more machinery instead of hired labor or at times even scheduling shifts at night. It’s not uncommon, he said, for supervisors to cut the workday short rather than risk workers’ safety.\u003c/p>\n\u003cp>“The regulations have been in place a long time, everybody understands it, and it works as a result,” Little said.\u003c/p>\n\u003cp>Still, the bill has sailed through the Legislature so far with the endorsement of liberal politicians eager to stake a claim on protecting vulnerable groups in the face of climate change. Attorney General Rob Bonta also supports the legislation, which could be heard in the Assembly Appropriations Committee as soon as today.\u003c/p>\n\u003cp>Nationally, policymakers are looking at California as they grapple with how to prevent workplace heat illness. The Biden administration last month announced a federal workplace heat rule that mirrors many of the state’s requirements. Tuesday, Health and Human Services Secretary Xavier Becerra marked \u003ca href=\"https://x.com/SenToniAtkins/status/1820862594107994180\">Farmworker Appreciation Day\u003c/a> by meeting a group of grape pickers in the Sacramento Delta and touting planned programs to give farmworkers and employers “advance warnings” of extreme heat and wildfire smoke levels.\u003c/p>\n\u003cp>Some of the workers he met said they worry about the heat — but worry about paying their bills more. Sayda Turcios, a Yolo County farmworker and member of the advocacy group Líderes Campesinas, said the hotter it gets, the more she sees her hours cut when supervisors decide it’s unsafe to work.\u003c/p>\n\u003cp>“It affects us in pay,” she said. “They end work early, three or four hours. At the end of the week, when they pay us, it’s reduced a lot.”\u003c/p>\n\u003cfigure id=\"attachment_11999179\" class=\"wp-caption alignnone\" style=\"max-width: 1568px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11999179\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy.jpg\" alt=\"\" width=\"1568\" height=\"1045\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/072723-Farmworkers-LV_CM_05-copy-1536x1024.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003cfigcaption class=\"wp-caption-text\">Farmworkers work on a field outside Mendota in Fresno County on July 12, 2023. \u003ccite>(Larry Valenzuela/CalMatters/CatchLight Local)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>California was the first state in the nation to adopt outdoor heat rules in 2005 after the deaths of four farmworkers.\u003c/p>\n\u003cp>The rules require outdoor employers to provide water, shade, breaks and training to workers on preventing heat illness. On days hotter than 95 degrees, even stricter regulations apply for certain industries, including agriculture and construction. Farm employers must provide 10-minute breaks every two hours of work.\u003c/p>\n\u003cp>The United Farm Workers sued twice, in 2009 and 2012, to boost Cal/OSHA’s enforcement of the rule. It’s now \u003ca href=\"https://www.dir.ca.gov/dosh/statistics/Frequently-cited-standards.html\">one of the most-cited\u003c/a> workplace safety violations. The agency must respond to complaints with an in-person inspection rather than an \u003ca href=\"https://calmatters.org/california-divide/2020/10/cal-osha-response-covid-complaints/\">inquiry “by letter.”\u003c/a>\u003c/p>\n\u003cp>However, state reports\u003cstrong> \u003c/strong>show that the enforcement of heat rules has declined in recent years, even as heat waves grow longer \u003ca href=\"https://earthobservatory.nasa.gov/images/147256/california-heatwave-fits-a-trend\">and more intense\u003c/a>. A Cal/OSHA report, which includes data for almost all of 2023, shows the agency opened 1,000 fewer heat-related inspections than in 2019 and issued nearly 800 fewer citations.\u003c/p>\n\u003cp>\u003cimg loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11999193\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29%E2%80%AFPM-scaled-e1723055678276.jpg\" alt=\"\" width=\"2150\" height=\"840\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276.jpg 2150w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-800x313.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-1020x399.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-160x63.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-1536x600.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-2048x800.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/Image-8-7-24-at-2.29 PM-scaled-e1723055678276-1920x750.jpg 1920w\" sizes=\"(max-width: 2150px) 100vw, 2150px\">\u003c/p>\n\u003cp>Two months after being let go, the group of workers at the Dixon tomato farm are still waiting to hear the results of their complaints.\u003c/p>\n\u003cp>Jorge Santana said he called Cal/OSHA to report concerns about heat safety at Ruiz Farm Labor the day the workers were dismissed but said he only spoke with an inspector about three weeks later.\u003c/p>\n\u003cp>Some of the workers said they spoke in June with the Agricultural Labor Relations Board, which confirmed it has opened an investigation into the dismissals. And some, with the help of local advocate and United Farm Workers spokesperson Antonio De Loera-Brust, also filed a retaliation complaint at the state Labor Commissioner’s Office.\u003c/p>\n\u003cfigure id=\"attachment_11999180\" class=\"wp-caption alignnone\" style=\"max-width: 1568px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11999180\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy.jpg\" alt=\"\" width=\"1568\" height=\"1045\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_13-copy-1536x1024.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003cfigcaption class=\"wp-caption-text\">Farmworker Jorge Santana, 61, at City Park in Winters on June 10, 2024. \u003ccite>(Laure Andrillon for CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Reached by phone in July, Ruiz, the labor contractor, said none of the workers had been fired. “They weren’t fired, they were let go,” he said. “Everybody’s got it wrong. You’re going to have to talk to my lawyer.”\u003c/p>\n\u003cp>But he declined to refer a reporter to the attorney, saying only, “She’s telling me to say no comment.”\u003c/p>\n\u003cp>CalMatters spoke with five of the six who were dismissed, including Paredes. Their accounts match hers and the retaliation complaint. Several said they saw other workers who felt ill but finished the workday.\u003c/p>\n\u003cp>Santana, 61, said he knew the state’s heat rules from previous work in construction. He said there was water and shade for workers at the tomato field, but on forecasted hot days, supervisors didn’t always hold meetings to remind workers of the risks, which he said is common in other fields. When he saw others getting sick on June 6, he didn’t want to risk it and left along with Paredes and four others.\u003c/p>\n\u003cp>When they were handed their checks the next day, Santana said he argued with Ruiz over the phone.\u003c/p>\n\u003cp>“I tried to tell him, there was a lot of people around here feeling sick and getting sick because of the heat,” Santana said. “He said, ‘The checks are made out, I don’t have to explain.’”\u003c/p>\n\u003cfigure id=\"attachment_11999182\" class=\"wp-caption alignnone\" style=\"max-width: 1568px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11999182\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594.jpg\" alt=\"\" width=\"1568\" height=\"976\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594-800x498.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594-1020x635.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594-160x100.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/061024_Heat-Farm-Workers_LA_CM_07-copy-e1723054680594-1536x956.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003cfigcaption class=\"wp-caption-text\">Farmworker Gerardo Reyes, 69, at City Park in Winters on June 10, 2024. \u003ccite>(Laure Andrillon for CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Santana and another worker, Gerardo Reyes, disputed Ruiz’s characterization and said the six workers were fired in retaliation for raising concerns about heat. They said there was still work on June 7 for all the crew members who hadn’t left the field.\u003c/p>\n\u003cp>Santana said he doesn’t regret raising concerns: “I’d rather lose a couple of hours of work than lose my life.”\u003c/p>\n\u003cp>The worker who felt the most ill, a 32-year-old woman, felt differently. “If I had known they were going to fire me,” the next day, she said, “I would have stayed. I would have held on.”\u003c/p>\n\u003cp>The worker declined to file a complaint out of fear of jeopardizing an immigration case and agreed to an interview only if she was not named.\u003c/p>\n\u003cp>She said she had felt sick on a hot day about two weeks prior, and a relative of the forewoman had taken her home early. Reyes, a longtime farmworker with whom the 32-year-old carpools, corroborated her account.\u003c/p>\n\u003cp>On June 6, she said, she again felt dizzy and nauseated. At the forewoman’s direction, she took a break under a tree, taking off her hat, gloves and shoes. It helped, she said, but when she returned to work, temperatures had climbed. She was shaking, had stopped sweating and said she thought she might fall over.\u003c/p>\n\u003cp>It was Reyes who insisted she couldn’t keep working; he was among those who left — with the forewoman’s permission, he said — so that he could drive her home.\u003c/p>\n\u003cp>The pair have since found a couple of other jobs in the fields, but both times, the work ran out after about a week. In one of them, the woman said she felt ill again and missed a day of work during the early July heat wave. Around her, she said, she saw older workers falling ill with hardly any shade. But she didn’t make a report.\u003c/p>\n\u003cp>With debts to pay and three children to support overseas, she said she’s desperate to find another job. She considers farm work her only prospect, though she said she now knows of the dangers of working outside in extreme heat.\u003c/p>\n\u003cp>“I’m the one who has to adapt,” she said. “The weather is something no one can control.”\u003c/p>\n\u003cp>\u003cem>CalMatters’ Carlos Aviles contributed to this story.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11999172/californians-say-they-were-fired-for-leaving-their-jobs-in-sweltering-heat-is-the-state-on-their-side","authors":["byline_news_11999172"],"categories":["news_1758","news_19906","news_457","news_8"],"tags":["news_18269","news_2929","news_31551","news_19904"],"affiliates":["news_18481"],"featImg":"news_11999173","label":"news_18481"},"news_11999232":{"type":"posts","id":"news_11999232","meta":{"index":"posts_1716263798","site":"news","id":"11999232","score":null,"sort":[1723111242000]},"guestAuthors":[],"slug":"what-will-it-take-to-improve-ev-infrastructure-in-california","title":"What Will It Take to Improve EV Infrastructure in California?","publishDate":1723111242,"format":"standard","headTitle":"What Will It Take to Improve EV Infrastructure in California? | KQED","labelTerm":{"term":33523,"site":"news"},"content":"\u003cp>\u003ca href=\"#episode-transcript\">\u003ci>View the full episode transcript.\u003c/i>\u003c/a>\u003c/p>\n\u003cp>You may have heard some horror stories about electric vehicle charging — long lines, lengthy waits, broken units. Sometimes even\u003cem> finding \u003c/em>a charging station is a challenge. When your car’s low on charge but no charger is available, it’s stressful. Maybe you’re halfway between San Francisco and Los Angeles and you’re stuck waiting.\u003c/p>\n\u003cp>That’s one of the big things stopping Bay Curious listener Kelly Lindberg from buying an electric car right now.\u003c/p>\n\u003cp>[baycuriouspodcastinfo]\u003c/p>\n\u003cp>“I’m hoping that by 2030, between having some years to save up and the technology getting better and cheaper, maybe that’s around the time [it] could work for our family,” she said.\u003c/p>\n\u003cp>In the meantime, Lindberg has an idea to help alleviate the charging congestion. She’s noticed a lot of empty former gas station sites around her neighborhood in Oakland and wondered, “Would it be a good idea to turn some of these spaces into electric car charging stations?”\u003c/p>\n\u003cp>In 2020, Gov. Gavin Newsom set a goal for the state to ban the sale of new gas-powered vehicles by the year 2035. So even if you’ve got a gas-powered car, and this isn’t a problem you’re facing currently, it may be soon.\u003c/p>\n\u003ch2>\u003cstrong>How to set up a charging station\u003c/strong>\u003c/h2>\n\u003cp>To find out what goes into installing a new charging station, I met up with Jonah Eidus, who oversees real estate development for electric car charging company EVgo. The company has hundreds of charging stalls across the Bay Area and thousands across the country.\u003c/p>\n\u003cp>“In general, when we’re installing new chargers, we’re looking to be in high-traffic areas where the chargers will be used for about 15 to 45 minutes,” Eidus said. “And that means we also want to have amenities nearby so people have something to do during those 15 to 45 minutes.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Since charging your car takes longer than pumping gas, stations are designed with the surroundings in mind. They aim to install stations in the parking lot of a Safeway, for example, or close to a coffee shop.\u003c/p>\n\u003cp>There are many other considerations too, Eidus said, including the availability of parking stalls. Is there enough space for many cars to park? The goal, after all, is to build as many charging stalls per site as possible.\u003c/p>\n\u003cp>Does the site integrate well into the electrical grid? The product they are ultimately selling is electricity, so they have to make sure that a site \u003cem>has \u003c/em>the electricity to sell at an affordable price.\u003c/p>\n\u003cp>Additionally, is the charging station set up near those who need it most, including those who live in apartment complexes and don’t have the option to charge from their own garage? There are also city zoning regulations and safety considerations to take into account.\u003c/p>\n\u003cp>That’s not even half of what goes into establishing a charging site. In fact, EVgo has a mapping algorithm that integrates 27 different factors.\u003c/p>\n\u003cp>“Suffice to say, it is a fairly sophisticated process that we go through,” Eidus said. “When a site goes live, a lot of thought and a lot of data has gone into the decision to build that site.”\u003c/p>\n\u003ch2>\u003cstrong>Improving reliability and keeping up with demand\u003c/strong>\u003c/h2>\n\u003cp>California — particularly the Bay Area — \u003ca href=\"https://www.nytimes.com/2024/03/12/us/bay-area-electric-vehicles.html\">leads the nation\u003c/a> in electric vehicle adoption. To meet that growing demand, California has to build 1 million new chargers by the end of 2030, \u003ca href=\"https://s3.documentcloud.org/documents/24795161/assembly-bill-2127-second-electric-vehicle-charging-infrastructure-second-assessment-revised-staff-report.pdf#page=52\">according to the state’s own projections (PDF)\u003c/a>. Some experts say \u003ca href=\"https://calmatters.org/environment/climate-change/2024/07/california-electric-car-chargers-unrealistic-goals/\">that’s not feasible\u003c/a>.\u003c/p>\n\u003cp>“I would say we’re tight on the number of chargers,” said Carleen Cullen, co-founder of the environmental nonprofit Cool the Earth and a former transportation advisor to Gov. Newsom.\u003c/p>\n\u003cp>Not only are they in short supply, the ones we do have are not always reliable, Cullen said. She helped conduct a study a few years ago to test the reliability of charging stations in the Bay Area and found that a quarter of them weren’t functional, meaning the screens were broken, the payment system didn’t work or the equipment was flawed.\u003c/p>\n\u003cp>Cullen said while the infrastructure has improved a lot since then, there’s still not enough of it — despite the fact that \u003ca href=\"https://smartasset.com/data-studies/ev-chargers-2023\">California is outpacing other states\u003c/a> in both EV adoption and infrastructure. And in order to reach Newsom’s goal, we need consumers, charging companies, EV manufacturers, local governments and utility companies to work together, Cullen said.\u003c/p>\n\u003cp>“We need to move the adoption of EVs forward, we need to move the number of charging ports available as well, and we need to move the grid capacity as well,” she said.\u003c/p>\n\u003cfigure id=\"attachment_11999354\" class=\"wp-caption aligncenter\" style=\"max-width: 1999px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11999354\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed.jpg\" alt=\"\" width=\"1999\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed.jpg 1999w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed-1920x1280.jpg 1920w\" sizes=\"(max-width: 1999px) 100vw, 1999px\">\u003cfigcaption class=\"wp-caption-text\">Tashinda Richardson of Oakland plugs in her rented electric vehicle at an EVgo Fast Charging station in Oakland on Jan. 29. Richardson said it can be hard to find a charger when she needs one. Sometimes, she said, chargers won’t work or the plug will get stuck in the car. \u003ccite>(Kathryn Styer Martínez/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>A big hold-up right now, according to Cullen, lies with PG&E.\u003c/p>\n\u003cp>“There’s a huge lag time between when the charging station vendor requests the power and when PG&E actually delivers it,” she said.\u003c/p>\n\u003cp>For a charging station to operate, it needs to be hooked up to the power grid. That’s where PG&E comes in. And they won’t just let you set up a charging station anywhere. They have to be able to deliver enough power to that site.\u003c/p>\n\u003cp>Is the section of the grid you’re trying to connect to also connected to a big manufacturing plant, for example? Are your neighbors using a lot of electricity during certain times of the day? Then the available power is likely spoken for. Does that portion of the grid rely heavily on solar power? Then the chargers may not work when the sun goes down.\u003c/p>\n\u003cp>“We have over 600,000 EVs in our service territory. And we’ve seen EV adoption grow at about 26% of the compound annual growth rate over the last few years. That’s a significant amount of load that we’re seeing on the system,” said David Almeida, a manager within PG&E’s clean energy transportation group.\u003c/p>\n\u003cp>Almeida said the utility company underestimated electricity demand, and as a result, it doesn’t have the infrastructure to support the rapidly growing EV industry right now.\u003c/p>\n\u003cp>But they’re working on it.\u003c/p>\n\u003cp>“We are building out a forecast that doesn’t look at necessarily just historical load, but it looks at where we anticipate load growth,” he said.\u003c/p>\n\u003cp>The goal is to make electric car charging stations faster to build and more reliable once they’re up and running.\u003c/p>\n\u003cp>Despite all the work needed to bolster this transportation system overhaul, Almeida said it’s ultimately worth it.\u003c/p>\n\u003cp>Right now, California’s transportation system is by far the \u003ca href=\"https://ww2.arb.ca.gov/ghg-inventory-data\">largest contributor\u003c/a> to our greenhouse gas emissions. Transitioning away from gas-powered cars is critical to mitigating the impacts of climate change, and EVs are already helping to do that.\u003c/p>\n\u003cp>A recent \u003ca href=\"https://pubs.acs.org/doi/10.1021/acs.est.3c09642\">study\u003c/a> by scientists at UC Berkeley showed EV adoption in the Bay Area has already reduced our carbon emissions by almost 2%.\u003c/p>\n\u003cp>“I’ve been a believer from the very beginning,” Almeida said. “And it’s just very cool to see a lot of this prove out.”\u003c/p>\n\u003cp>[baycuriousquestion]\u003c/p>\n\u003ch2 id=\"episode-transcript\">Episode Transcript\u003c/h2>\n\u003cp>\u003ci>This is a computer-generated transcript. While our team has reviewed it, there may be errors.\u003c/i>\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>I’m Olivia Allen-Price. This is Bay curious. And today we’re going on a little road trip.\u003c/p>\n\u003cp>\u003cem>Sounds of a car driving\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>Here we go. So we are driving around San Francisco in my Volkswagen E-golf, and it’s an electric vehicle. And we’re looking for a place to charge. And I’m here with Dana Cronin.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>And how do you normally find a place to charge in the city?\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> It’s pretty rare that I have to find a place to charge because I mostly charge at home. But when I do have to find a place, I pull up an app on my phone and …\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Safely, of course, pulled over by the side of the road.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> Exactly. Let’s actually pull over real quick up here.\u003c/p>\n\u003cp>(sound of car decelerating)\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>Okay, so I pull up this app on my phone and what it does is it loads all sorts of different chargers that are nearby that are owned by all sorts of different companies. The numbers mean how many charging stations are in each of these locations. Of the one that’s nearby, it looks like one is out of service; four are currently being used … but looks like one is available.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> 0.2 miles away. That’s not too bad.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> Yeah, let’s give it a shot. Okay, so the charger is somewhere in this enormous parking lot.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> You know that there’s a spot open right now because of your app, right? Or is it possible that it’s there but someone’s using it?\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> I would … I would say I don’t feel 100% confident based on the app.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> There’s a line of Teslas.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>So, let’s go and see if the non-Tesla chargers are near the Tesla ones, too. Oh, and here we are to the right. … This is also Tesla charging. Just kidding.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>We drove around the parking lot for a while but then finally found the chargers.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> So, it’s full. (laughs)\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> There was a little dispute with another customer over who was there first. It was totally us, but we let it go. Eventually, another stall opened up.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>Charging port here, plug it in and it looks like this one gives me the option to pay by the EVgo app, or I can pay by credit card, which is actually great. It does not seem … Oh, there we go, there we go. Okay, let’s remove the card … (pause) authorization declined. I will try a different card payment. (pause) Authorized!\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Step one: Complete! (laughing)\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>Step 7,962: pay for the charging. (laughing)\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Generally, I would say this was not super easy, and yet it’s pretty much totally full.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price\u003c/strong>: Yeah, I mean, it’s not easy. I feel really lucky most of the time. I charge at home because it is, you know, it’s a pain and it’s a little stressful, especially if you are really low on charge. Like I’ve been in situations where I’m really sweating it out because I go to one charging station and like the screen is broken or the Wi-Fi isn’t working, or sometimes they’ll have these in paid parking garages and they don’t tell you that. And it’s like $30 just to get in the garage.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Like it feels like you do have to have an at-home charger right now for this to be convenient and conducive to your lifestyle. Like, I can’t imagine, like fully relying on this, you know. I, for one, will probably just stick with my Subaru for now. My gas-powered Subaru, for now.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> On today’s episode of Bay Curious, we dive into the world of electric vehicles. I love driving mine, but as you saw, it’s not perfect. California currently dominates the EV market, and the state has a lofty goal of banning the sale of new gas-powered vehicles by 2035. So if you’re not driving an EV yet, you may be soon. Is your community set up for it? Is the Bay area’s current infrastructure matching up with the demand? We’ll get into all that just after a quick break.\u003c/p>\n\u003cp>\u003cem>SPONSOR\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>For this episode, I’m tossing to my co-pilot … reporter Dana Cronin … to explain what’s going on with the Bay Area’s EV infrastructure.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Like a lot of Bay Area residents … maybe you included … I want my next car to be electric. But if my 2012 Subaru Outback died tomorrow … I’m not sure I’d be ready to make the switch. Especially after that drive with Olivia.\u003c/p>\n\u003cp>Bay Curious listener Kelly Lindberg … feels the same way.\u003c/p>\n\u003cp>\u003cstrong>Kelly Lindberg:\u003c/strong> You hear those stories in the news sometimes about, like, the drive between, like, Las Vegas and Los Angeles. You know, people going in their Teslas and having a super long line at the charging station.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Kelly works for a climate startup accelerator, and she’s thought, “There’s gotta be a solution to this problem.”\u003c/p>\n\u003cp>One came to her… as she was driving through her neighborhood in Oakland. She’s noticed a lot of abandoned gas stations around.\u003c/p>\n\u003cp>\u003cstrong>Kelly Lindberg:\u003c/strong> Would it be a good idea to maybe turn some of these spaces into electric car charging stations?\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>I mean … sounds like a good idea to me. I, too, live in Oakland and have noticed quite a few empty lots. Whether they’re former gas stations, convenience stores, or storefronts … it seems like there’s plenty of empty space for charging stations to set up shop.\u003c/p>\n\u003cp>But, to do that, you first need a charging company. So, I met with one.\u003c/p>\n\u003cp>(sounds of loud road noise)\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Jonah Eidus is wearing a navy-logoed polo and is parked at an EVgo charging station. He oversees EVgo’s real estate department.\u003c/p>\n\u003cp>EVgo has hundreds of charging stalls in the Bay Area … the one we’re meeting at is in Oakland’s Fruitvale neighborhood … right off of 580 on Fruitvale Avenue. It’s set up at a Shell gas station.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> So this site is an eight-stall, fast-charging site, capable of delivering up to 350 kW to each car. And it is definitely one of the more popular stations in Oakland.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>That’s enough to charge most modern EVs in less than 20 minutes. And it is popular! Over the course of our interview … all eight stalls were full almost the whole time.\u003c/p>\n\u003cp>Without wasting any time, I posed Kelly’s question. Could empty lots and gas stations near her house get setups like this one?\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> In general, when we’re installing new chargers, we’re looking to be in high-traffic areas where the chargers will be used for about 15 to 45 minutes. And that means we also want to have amenities nearby so people have something to do during those 15 to 45 minutes.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>It takes longer to charge your car’s battery than it does to pump gas. So this charging station, for example, is right next to a Peet’s Coffee and a Farmer Joe’s grocery store. A perfect place to run some errands while you wait.\u003c/p>\n\u003cp>As we’re talking, Dave Robinson drives up in his brand new 2023 KIA EV6, backs into a stall, and plugs in.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>What do you plan to do while you wait?\u003c/p>\n\u003cp>\u003cstrong>Dave Robinson:\u003c/strong> Just hang out. You know, if it’s going to be a while, there’s coffee shops and everything else around. So it’s easy.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Convenience! It’s a big factor in selecting a charging site, Jonah says. But there are lots of other factors, too.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus: \u003c/strong>Availability of parking stalls, grid interconnection, forecasted charging demand, electricity rates and importantly, multifamily housing density nearby the charging station.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>OK … let’s take those one at a time.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> Availability of parking stalls …\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Meaning … is there enough space for cars to park here? The goal is to build as many charging stalls as possible per site.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> … grid interconnection …\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>This one is super important. Because after all, the product they are ultimately selling … is electricity. And they need to make sure that a specific site HAS the electricity to sell\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> … forecasted charging demand … electricity rates …\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>How many customers do they expect, and how much will those customers have to pay to charge? The cost of electricity can \u003cem>literally \u003c/em>vary block to block.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>And … EVGo is a for-profit company after all … so it needs to pencil out.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> … and importantly, multifamily housing density nearby the charging station.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Is the charging station set up near those who need it the most? Those who live in apartment complexes, for example, don’t have the option to charge from their own garage.\u003c/p>\n\u003cp>That’s not even \u003cem>half \u003c/em>the considerations that go into establishing a charging site. There’s also things like a city’s zoning regulations … and safety considerations.\u003c/p>\n\u003cp>In fact, EVgo has a mapping algorithm that integrates 27 different factors.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus: \u003c/strong>Suffice to say, it is a fairly sophisticated process that we go through. And when a site goes live, a lot of thought and a lot of data has gone into the decision to build that site.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Jonah couldn’t say exactly whether the specific abandoned gas stations in Kelly’s neighborhood could be converted to charging sites … I guess that’s a question for the algorithm.\u003c/p>\n\u003cp>(music)\u003c/p>\n\u003cp>\u003cem> \u003c/em>So that’s how companies choose specific charging sites … and avoid others.\u003c/p>\n\u003cp>But at the \u003cem>heart \u003c/em>of Kelly’s question … is a bigger question. Clearly, we need MORE charging stations … whether at abandoned gas stations … or near coffee shops and grocery stores. So … why hasn’t the electric vehicle charging infrastructure kept up with demand?\u003c/p>\n\u003cp>To answer that question, I met up with Carleen Cullen. She’s the co-founder of the environmental nonprofit Cool the Earth and a former transportation advisor to Governor Newsom.\u003c/p>\n\u003cp>(sounds of a busy parking lot)\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>We meet up at another charging station … this one in the parking lot of a Safeway in Mill Valley. We’re chatting next to Carleen’s Chevy Bolt … which is parked in a stall, ready to charge … when, all of a sudden, another EV driver pulls up behind us and asks how long we plan to be.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>I guess that’s part of the challenge is that there’s so few chargers that we have someone waiting on us here waiting for a charge, somewhat impatiently. So we’re going to go ahead and get charging.\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen:\u003c/strong> Let’s get started.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Carleen swipes her credit card, pulls the charger around to her car, plugs in, and it starts charging.\u003c/p>\n\u003cp>(sound of the high-pitched hum from the charger)\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen: \u003c/strong>So when you hear that great hum, you know that that’s happening.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Carleen is somewhat of an electric vehicle evangelist … an E-V-vangelist … if you will. Half the time we spent together I felt like I was in an EV infomercial. But she’s not naive. She knows the current infrastructure is flawed. In fact, she did a study a few years ago where she tested the reliability of charging stations in the Bay Area.\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen: \u003c/strong>And we found that about a quarter of the stations in the Bay area weren’t functional.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Meaning the screens were broken or the payment system didn’t work or the equipment was flawed. She says the infrastructure has improved a lot since then, but there’s still not enough of it.\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen: \u003c/strong>I would say we’re tight on the number of chargers. Yeah, we’re definitely tight.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>And that’s in part because … what we’re talking about here … is a MAJOR overhaul of an entire transportation system. In 2020, Governor Newsom set a goal to ban the sale of new gas-powered vehicles in California by the year 2035. And California is outpacing other states in both EV adoption and infrastructure by a long shot. We have more chargers than any other state. But in order to reach that lofty goal … Carleen says we need three things:\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen:\u003c/strong> We need to move the adoption of EVs forward. We need to move the number of charging ports available as well, and we need to move the grid capacity as well.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>These things all have to happen simultaneously. Consumers, charging companies, EV manufacturers, utility companies, local governments … everyone has to work in concert for this to work. Carleen says, right now, the utility companies aren’t necessarily pulling their weight.\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen: \u003c/strong>There’s a huge lag time between when the station, the charging station vendor requests the power and when PG&E actually delivers it.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>For a charging station to operate, it needs to be hooked up to our power grid. That’s where PG&E comes in. And they won’t just let you set up a charging station ANYWHERE. They have to be able to deliver enough power to that site.\u003c/p>\n\u003cp>Is the section of the grid you’re trying to connect to also connected to a big manufacturing plant … for example? Are your neighbors using a lot of electricity during certain times of the day? Then the available power is likely spoken for. Does that portion of the grid rely heavily on solar power? Then the chargers may not work when the sun goes down.\u003c/p>\n\u003cp>These are critical considerations, says David Almeida … a manager within PG&E’s clean energy transportation group. And he says Carleen’s critique is fair. He says, yes, the utility is definitely still playing catch-up.\u003c/p>\n\u003cp>\u003cstrong>David Almeida:\u003c/strong> So we have over 600,000 EVs in our service territory. And we’ve seen EV adoption grow at about 26% of the compound annual growth rate over the last few years. That’s a significant amount of load that we’re seeing on the system.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>He also says … they didn’t plan for that increased demand for electricity. In fact, they UNDERestimated it … and, as a result, they don’t have the infrastructure to support it right now.\u003c/p>\n\u003cp>But, he says, they’re working on it.\u003c/p>\n\u003cp>\u003cstrong>David Almeida: \u003c/strong>We are building out a forecast that doesn’t look at necessarily just historical load, but it looks at where we anticipate load growth.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>He says their goal is to make electric car charging stations faster to build and more reliable once they’re up and running.\u003c/p>\n\u003cp>\u003cem>Music\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>This all sounds like a lot of work. Overhauling our entire state’s transportation system … building thousands and thousands of new charging stations … getting utility companies on board … I’m exhausted just thinking about it.\u003c/p>\n\u003cp>But it’s important to remember WHY we’re doing this. Right now, California’s transportation system is BY FAR the largest contributor to our greenhouse gas emissions. Transitioning away from gas-powered cars is critical to mitigating the impacts of climate change.\u003c/p>\n\u003cp>And Evs are already helping to do that.\u003c/p>\n\u003cp>A recent study by scientists at UC Berkeley showed EV adoption in the Bay Area has already reduced our carbon emissions by almost 2 percent.\u003c/p>\n\u003cp>Now, obviously, to keep up that progress … the system has to work for EVERYONE. And I’m not sure we’re there yet.\u003c/p>\n\u003cp>\u003cem>Music sneaks in\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> What do you think, Olivia? Any more sympathy for the cause?\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> You know, yeah. I didn’t realize there were so many hurdles to getting new charging stations online. I feel really lucky that I am able to charge my car at home and so this isn’t an issue I have to deal with very often. But for folks who can’t charge overnight where they live — that’s a huge hurdle. And I’m sure it’s a non-starter for some people! It’s got to get better.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Yeah … 2035 is not THAT far away … and if we’re gonna reach that goal, we’re going to need more charging stations.\u003c/p>\n\u003cp>I’m kind of hoping my Subaru lasts just a couple more years …\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> Dana Cronin — thank you!\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Thank you.\u003c/p>\n\u003cp>\u003cem>Music\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>That was KQED’s Dana Cronin.\u003c/p>\n\u003cp>This story would not have been possible without our question-asker, Kelly Lindberg. That’s because you, our dear audience, decide what we cover by submitting questions — and then voting on which ones we should answer.\u003c/p>\n\u003cp>We have a new voting round-up at BayCurious.org with three enticing questions.\u003c/p>\n\u003cp>\u003cstrong>Voice 1:\u003c/strong> Why did Oakland International Airport become San Francisco Bay Oakland International Airport, giving us two very confusingly similar-sounding airports?\u003c/p>\n\u003cp>\u003cstrong>Voice 2:\u003c/strong> I remember going to the Berkeley dump, now Cesar Chavez Park, with my dad in the 1970s. It was pretty wild. It’d be really interesting to learn more about its evolution from dump to park.\u003c/p>\n\u003cp>\u003cstrong>Voice 3:\u003c/strong> I was walking my dog on Thornton Beach on the Daly City/SF border and found a really long tunnel coming out of the hillside around some abandoned piers. Any idea what it is?\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>Voting is so easy! Just grab your phone, pull up BayCurious.org, scroll to our voting round and click on your favorite question! No registering or emails or phone numbers or anything complicated. We try to make it easy on you.\u003c/p>\n\u003cp>Bay Curious is made by Ana De Almeida Amaral, Amanda Font, Olivia Allen-Price, Christopher Beale. Special thanks to Laura Klivans, Jen Chien, Katie Sprenger, Maha Sanad, Holly Kernan and the whole KQED Family.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>I’m Olivia Allen-Price.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"EV owners face challenges in finding charging stations with infrastructure still lagging behind ambitious California goals. But few are aware of just how many complicated considerations go into the building charging stations.","status":"publish","parent":0,"modified":1729027055,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":true,"hasPolis":false,"paragraphCount":148,"wordCount":4565},"headData":{"title":"What Will It Take to Improve EV Infrastructure in California? | KQED","description":"EV owners face challenges in finding charging stations with infrastructure still lagging behind ambitious California goals. But few are aware of just how many complicated considerations go into the building charging stations.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"What Will It Take to Improve EV Infrastructure in California?","datePublished":"2024-08-08T03:00:42-07:00","dateModified":"2024-10-15T14:17:35-07:00","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"True","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"audioUrl":"https://www.podtrac.com/pts/redirect.mp3/pdst.fm/e/chrt.fm/track/G6C7C3/traffic.megaphone.fm/KQINC9615068029.mp3?updated=1723057572","sticky":false,"nprStoryId":"kqed-11999232","excludeFromSiteSearch":"Include","articleAge":"0","path":"/news/11999232/what-will-it-take-to-improve-ev-infrastructure-in-california","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003ca href=\"#episode-transcript\">\u003ci>View the full episode transcript.\u003c/i>\u003c/a>\u003c/p>\n\u003cp>You may have heard some horror stories about electric vehicle charging — long lines, lengthy waits, broken units. Sometimes even\u003cem> finding \u003c/em>a charging station is a challenge. When your car’s low on charge but no charger is available, it’s stressful. Maybe you’re halfway between San Francisco and Los Angeles and you’re stuck waiting.\u003c/p>\n\u003cp>That’s one of the big things stopping Bay Curious listener Kelly Lindberg from buying an electric car right now.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003caside class=\"alignleft utils-parseShortcode-shortcodes-__bayCuriousPodcastShortcode__bayCurious\">\u003cimg src=https://cdn.kqed.org/wp-content/uploads/2023/02/bayCuriousLogo.png alt=\"Bay Curious Podcast\" loading=\"lazy\" />\n \u003ca href=\"/news/series/baycurious\">Bay Curious\u003c/a> is a podcast that answers your questions about the Bay Area.\n Subscribe on \u003ca href=\"https://itunes.apple.com/us/podcast/bay-curious/id1172473406\" target=\"_blank\" rel=\"noopener noreferrer\">Apple Podcasts\u003c/a>,\n \u003ca href=\"http://www.npr.org/podcasts/500557090/bay-curious\" target=\"_blank\" rel=\"noopener noreferrer\">NPR One\u003c/a> or your favorite podcast platform.\u003c/aside>\u003c/p>\u003cp>\u003c/p>\n\u003cp>“I’m hoping that by 2030, between having some years to save up and the technology getting better and cheaper, maybe that’s around the time [it] could work for our family,” she said.\u003c/p>\n\u003cp>In the meantime, Lindberg has an idea to help alleviate the charging congestion. She’s noticed a lot of empty former gas station sites around her neighborhood in Oakland and wondered, “Would it be a good idea to turn some of these spaces into electric car charging stations?”\u003c/p>\n\u003cp>In 2020, Gov. Gavin Newsom set a goal for the state to ban the sale of new gas-powered vehicles by the year 2035. So even if you’ve got a gas-powered car, and this isn’t a problem you’re facing currently, it may be soon.\u003c/p>\n\u003ch2>\u003cstrong>How to set up a charging station\u003c/strong>\u003c/h2>\n\u003cp>To find out what goes into installing a new charging station, I met up with Jonah Eidus, who oversees real estate development for electric car charging company EVgo. The company has hundreds of charging stalls across the Bay Area and thousands across the country.\u003c/p>\n\u003cp>“In general, when we’re installing new chargers, we’re looking to be in high-traffic areas where the chargers will be used for about 15 to 45 minutes,” Eidus said. “And that means we also want to have amenities nearby so people have something to do during those 15 to 45 minutes.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Since charging your car takes longer than pumping gas, stations are designed with the surroundings in mind. They aim to install stations in the parking lot of a Safeway, for example, or close to a coffee shop.\u003c/p>\n\u003cp>There are many other considerations too, Eidus said, including the availability of parking stalls. Is there enough space for many cars to park? The goal, after all, is to build as many charging stalls per site as possible.\u003c/p>\n\u003cp>Does the site integrate well into the electrical grid? The product they are ultimately selling is electricity, so they have to make sure that a site \u003cem>has \u003c/em>the electricity to sell at an affordable price.\u003c/p>\n\u003cp>Additionally, is the charging station set up near those who need it most, including those who live in apartment complexes and don’t have the option to charge from their own garage? There are also city zoning regulations and safety considerations to take into account.\u003c/p>\n\u003cp>That’s not even half of what goes into establishing a charging site. In fact, EVgo has a mapping algorithm that integrates 27 different factors.\u003c/p>\n\u003cp>“Suffice to say, it is a fairly sophisticated process that we go through,” Eidus said. “When a site goes live, a lot of thought and a lot of data has gone into the decision to build that site.”\u003c/p>\n\u003ch2>\u003cstrong>Improving reliability and keeping up with demand\u003c/strong>\u003c/h2>\n\u003cp>California — particularly the Bay Area — \u003ca href=\"https://www.nytimes.com/2024/03/12/us/bay-area-electric-vehicles.html\">leads the nation\u003c/a> in electric vehicle adoption. To meet that growing demand, California has to build 1 million new chargers by the end of 2030, \u003ca href=\"https://s3.documentcloud.org/documents/24795161/assembly-bill-2127-second-electric-vehicle-charging-infrastructure-second-assessment-revised-staff-report.pdf#page=52\">according to the state’s own projections (PDF)\u003c/a>. Some experts say \u003ca href=\"https://calmatters.org/environment/climate-change/2024/07/california-electric-car-chargers-unrealistic-goals/\">that’s not feasible\u003c/a>.\u003c/p>\n\u003cp>“I would say we’re tight on the number of chargers,” said Carleen Cullen, co-founder of the environmental nonprofit Cool the Earth and a former transportation advisor to Gov. Newsom.\u003c/p>\n\u003cp>Not only are they in short supply, the ones we do have are not always reliable, Cullen said. She helped conduct a study a few years ago to test the reliability of charging stations in the Bay Area and found that a quarter of them weren’t functional, meaning the screens were broken, the payment system didn’t work or the equipment was flawed.\u003c/p>\n\u003cp>Cullen said while the infrastructure has improved a lot since then, there’s still not enough of it — despite the fact that \u003ca href=\"https://smartasset.com/data-studies/ev-chargers-2023\">California is outpacing other states\u003c/a> in both EV adoption and infrastructure. And in order to reach Newsom’s goal, we need consumers, charging companies, EV manufacturers, local governments and utility companies to work together, Cullen said.\u003c/p>\n\u003cp>“We need to move the adoption of EVs forward, we need to move the number of charging ports available as well, and we need to move the grid capacity as well,” she said.\u003c/p>\n\u003cfigure id=\"attachment_11999354\" class=\"wp-caption aligncenter\" style=\"max-width: 1999px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11999354\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed.jpg\" alt=\"\" width=\"1999\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed.jpg 1999w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/240129-EVFILE-KSM-24_qed-1920x1280.jpg 1920w\" sizes=\"(max-width: 1999px) 100vw, 1999px\">\u003cfigcaption class=\"wp-caption-text\">Tashinda Richardson of Oakland plugs in her rented electric vehicle at an EVgo Fast Charging station in Oakland on Jan. 29. Richardson said it can be hard to find a charger when she needs one. Sometimes, she said, chargers won’t work or the plug will get stuck in the car. \u003ccite>(Kathryn Styer Martínez/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>A big hold-up right now, according to Cullen, lies with PG&E.\u003c/p>\n\u003cp>“There’s a huge lag time between when the charging station vendor requests the power and when PG&E actually delivers it,” she said.\u003c/p>\n\u003cp>For a charging station to operate, it needs to be hooked up to the power grid. That’s where PG&E comes in. And they won’t just let you set up a charging station anywhere. They have to be able to deliver enough power to that site.\u003c/p>\n\u003cp>Is the section of the grid you’re trying to connect to also connected to a big manufacturing plant, for example? Are your neighbors using a lot of electricity during certain times of the day? Then the available power is likely spoken for. Does that portion of the grid rely heavily on solar power? Then the chargers may not work when the sun goes down.\u003c/p>\n\u003cp>“We have over 600,000 EVs in our service territory. And we’ve seen EV adoption grow at about 26% of the compound annual growth rate over the last few years. That’s a significant amount of load that we’re seeing on the system,” said David Almeida, a manager within PG&E’s clean energy transportation group.\u003c/p>\n\u003cp>Almeida said the utility company underestimated electricity demand, and as a result, it doesn’t have the infrastructure to support the rapidly growing EV industry right now.\u003c/p>\n\u003cp>But they’re working on it.\u003c/p>\n\u003cp>“We are building out a forecast that doesn’t look at necessarily just historical load, but it looks at where we anticipate load growth,” he said.\u003c/p>\n\u003cp>The goal is to make electric car charging stations faster to build and more reliable once they’re up and running.\u003c/p>\n\u003cp>Despite all the work needed to bolster this transportation system overhaul, Almeida said it’s ultimately worth it.\u003c/p>\n\u003cp>Right now, California’s transportation system is by far the \u003ca href=\"https://ww2.arb.ca.gov/ghg-inventory-data\">largest contributor\u003c/a> to our greenhouse gas emissions. Transitioning away from gas-powered cars is critical to mitigating the impacts of climate change, and EVs are already helping to do that.\u003c/p>\n\u003cp>A recent \u003ca href=\"https://pubs.acs.org/doi/10.1021/acs.est.3c09642\">study\u003c/a> by scientists at UC Berkeley showed EV adoption in the Bay Area has already reduced our carbon emissions by almost 2%.\u003c/p>\n\u003cp>“I’ve been a believer from the very beginning,” Almeida said. “And it’s just very cool to see a lot of this prove out.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"baycuriousquestion","attributes":{"named":{"label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003ch2 id=\"episode-transcript\">Episode Transcript\u003c/h2>\n\u003cp>\u003ci>This is a computer-generated transcript. While our team has reviewed it, there may be errors.\u003c/i>\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>I’m Olivia Allen-Price. This is Bay curious. And today we’re going on a little road trip.\u003c/p>\n\u003cp>\u003cem>Sounds of a car driving\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>Here we go. So we are driving around San Francisco in my Volkswagen E-golf, and it’s an electric vehicle. And we’re looking for a place to charge. And I’m here with Dana Cronin.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>And how do you normally find a place to charge in the city?\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> It’s pretty rare that I have to find a place to charge because I mostly charge at home. But when I do have to find a place, I pull up an app on my phone and …\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Safely, of course, pulled over by the side of the road.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> Exactly. Let’s actually pull over real quick up here.\u003c/p>\n\u003cp>(sound of car decelerating)\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>Okay, so I pull up this app on my phone and what it does is it loads all sorts of different chargers that are nearby that are owned by all sorts of different companies. The numbers mean how many charging stations are in each of these locations. Of the one that’s nearby, it looks like one is out of service; four are currently being used … but looks like one is available.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> 0.2 miles away. That’s not too bad.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> Yeah, let’s give it a shot. Okay, so the charger is somewhere in this enormous parking lot.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> You know that there’s a spot open right now because of your app, right? Or is it possible that it’s there but someone’s using it?\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> I would … I would say I don’t feel 100% confident based on the app.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> There’s a line of Teslas.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>So, let’s go and see if the non-Tesla chargers are near the Tesla ones, too. Oh, and here we are to the right. … This is also Tesla charging. Just kidding.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>We drove around the parking lot for a while but then finally found the chargers.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> So, it’s full. (laughs)\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> There was a little dispute with another customer over who was there first. It was totally us, but we let it go. Eventually, another stall opened up.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>Charging port here, plug it in and it looks like this one gives me the option to pay by the EVgo app, or I can pay by credit card, which is actually great. It does not seem … Oh, there we go, there we go. Okay, let’s remove the card … (pause) authorization declined. I will try a different card payment. (pause) Authorized!\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Step one: Complete! (laughing)\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>Step 7,962: pay for the charging. (laughing)\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Generally, I would say this was not super easy, and yet it’s pretty much totally full.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price\u003c/strong>: Yeah, I mean, it’s not easy. I feel really lucky most of the time. I charge at home because it is, you know, it’s a pain and it’s a little stressful, especially if you are really low on charge. Like I’ve been in situations where I’m really sweating it out because I go to one charging station and like the screen is broken or the Wi-Fi isn’t working, or sometimes they’ll have these in paid parking garages and they don’t tell you that. And it’s like $30 just to get in the garage.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Like it feels like you do have to have an at-home charger right now for this to be convenient and conducive to your lifestyle. Like, I can’t imagine, like fully relying on this, you know. I, for one, will probably just stick with my Subaru for now. My gas-powered Subaru, for now.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> On today’s episode of Bay Curious, we dive into the world of electric vehicles. I love driving mine, but as you saw, it’s not perfect. California currently dominates the EV market, and the state has a lofty goal of banning the sale of new gas-powered vehicles by 2035. So if you’re not driving an EV yet, you may be soon. Is your community set up for it? Is the Bay area’s current infrastructure matching up with the demand? We’ll get into all that just after a quick break.\u003c/p>\n\u003cp>\u003cem>SPONSOR\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>For this episode, I’m tossing to my co-pilot … reporter Dana Cronin … to explain what’s going on with the Bay Area’s EV infrastructure.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Like a lot of Bay Area residents … maybe you included … I want my next car to be electric. But if my 2012 Subaru Outback died tomorrow … I’m not sure I’d be ready to make the switch. Especially after that drive with Olivia.\u003c/p>\n\u003cp>Bay Curious listener Kelly Lindberg … feels the same way.\u003c/p>\n\u003cp>\u003cstrong>Kelly Lindberg:\u003c/strong> You hear those stories in the news sometimes about, like, the drive between, like, Las Vegas and Los Angeles. You know, people going in their Teslas and having a super long line at the charging station.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Kelly works for a climate startup accelerator, and she’s thought, “There’s gotta be a solution to this problem.”\u003c/p>\n\u003cp>One came to her… as she was driving through her neighborhood in Oakland. She’s noticed a lot of abandoned gas stations around.\u003c/p>\n\u003cp>\u003cstrong>Kelly Lindberg:\u003c/strong> Would it be a good idea to maybe turn some of these spaces into electric car charging stations?\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>I mean … sounds like a good idea to me. I, too, live in Oakland and have noticed quite a few empty lots. Whether they’re former gas stations, convenience stores, or storefronts … it seems like there’s plenty of empty space for charging stations to set up shop.\u003c/p>\n\u003cp>But, to do that, you first need a charging company. So, I met with one.\u003c/p>\n\u003cp>(sounds of loud road noise)\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Jonah Eidus is wearing a navy-logoed polo and is parked at an EVgo charging station. He oversees EVgo’s real estate department.\u003c/p>\n\u003cp>EVgo has hundreds of charging stalls in the Bay Area … the one we’re meeting at is in Oakland’s Fruitvale neighborhood … right off of 580 on Fruitvale Avenue. It’s set up at a Shell gas station.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> So this site is an eight-stall, fast-charging site, capable of delivering up to 350 kW to each car. And it is definitely one of the more popular stations in Oakland.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>That’s enough to charge most modern EVs in less than 20 minutes. And it is popular! Over the course of our interview … all eight stalls were full almost the whole time.\u003c/p>\n\u003cp>Without wasting any time, I posed Kelly’s question. Could empty lots and gas stations near her house get setups like this one?\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> In general, when we’re installing new chargers, we’re looking to be in high-traffic areas where the chargers will be used for about 15 to 45 minutes. And that means we also want to have amenities nearby so people have something to do during those 15 to 45 minutes.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>It takes longer to charge your car’s battery than it does to pump gas. So this charging station, for example, is right next to a Peet’s Coffee and a Farmer Joe’s grocery store. A perfect place to run some errands while you wait.\u003c/p>\n\u003cp>As we’re talking, Dave Robinson drives up in his brand new 2023 KIA EV6, backs into a stall, and plugs in.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>What do you plan to do while you wait?\u003c/p>\n\u003cp>\u003cstrong>Dave Robinson:\u003c/strong> Just hang out. You know, if it’s going to be a while, there’s coffee shops and everything else around. So it’s easy.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Convenience! It’s a big factor in selecting a charging site, Jonah says. But there are lots of other factors, too.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus: \u003c/strong>Availability of parking stalls, grid interconnection, forecasted charging demand, electricity rates and importantly, multifamily housing density nearby the charging station.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>OK … let’s take those one at a time.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> Availability of parking stalls …\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Meaning … is there enough space for cars to park here? The goal is to build as many charging stalls as possible per site.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> … grid interconnection …\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>This one is super important. Because after all, the product they are ultimately selling … is electricity. And they need to make sure that a specific site HAS the electricity to sell\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> … forecasted charging demand … electricity rates …\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>How many customers do they expect, and how much will those customers have to pay to charge? The cost of electricity can \u003cem>literally \u003c/em>vary block to block.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>And … EVGo is a for-profit company after all … so it needs to pencil out.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus:\u003c/strong> … and importantly, multifamily housing density nearby the charging station.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Is the charging station set up near those who need it the most? Those who live in apartment complexes, for example, don’t have the option to charge from their own garage.\u003c/p>\n\u003cp>That’s not even \u003cem>half \u003c/em>the considerations that go into establishing a charging site. There’s also things like a city’s zoning regulations … and safety considerations.\u003c/p>\n\u003cp>In fact, EVgo has a mapping algorithm that integrates 27 different factors.\u003c/p>\n\u003cp>\u003cstrong>Jonah Eidus: \u003c/strong>Suffice to say, it is a fairly sophisticated process that we go through. And when a site goes live, a lot of thought and a lot of data has gone into the decision to build that site.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Jonah couldn’t say exactly whether the specific abandoned gas stations in Kelly’s neighborhood could be converted to charging sites … I guess that’s a question for the algorithm.\u003c/p>\n\u003cp>(music)\u003c/p>\n\u003cp>\u003cem> \u003c/em>So that’s how companies choose specific charging sites … and avoid others.\u003c/p>\n\u003cp>But at the \u003cem>heart \u003c/em>of Kelly’s question … is a bigger question. Clearly, we need MORE charging stations … whether at abandoned gas stations … or near coffee shops and grocery stores. So … why hasn’t the electric vehicle charging infrastructure kept up with demand?\u003c/p>\n\u003cp>To answer that question, I met up with Carleen Cullen. She’s the co-founder of the environmental nonprofit Cool the Earth and a former transportation advisor to Governor Newsom.\u003c/p>\n\u003cp>(sounds of a busy parking lot)\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>We meet up at another charging station … this one in the parking lot of a Safeway in Mill Valley. We’re chatting next to Carleen’s Chevy Bolt … which is parked in a stall, ready to charge … when, all of a sudden, another EV driver pulls up behind us and asks how long we plan to be.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>I guess that’s part of the challenge is that there’s so few chargers that we have someone waiting on us here waiting for a charge, somewhat impatiently. So we’re going to go ahead and get charging.\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen:\u003c/strong> Let’s get started.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Carleen swipes her credit card, pulls the charger around to her car, plugs in, and it starts charging.\u003c/p>\n\u003cp>(sound of the high-pitched hum from the charger)\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen: \u003c/strong>So when you hear that great hum, you know that that’s happening.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Carleen is somewhat of an electric vehicle evangelist … an E-V-vangelist … if you will. Half the time we spent together I felt like I was in an EV infomercial. But she’s not naive. She knows the current infrastructure is flawed. In fact, she did a study a few years ago where she tested the reliability of charging stations in the Bay Area.\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen: \u003c/strong>And we found that about a quarter of the stations in the Bay area weren’t functional.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>Meaning the screens were broken or the payment system didn’t work or the equipment was flawed. She says the infrastructure has improved a lot since then, but there’s still not enough of it.\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen: \u003c/strong>I would say we’re tight on the number of chargers. Yeah, we’re definitely tight.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>And that’s in part because … what we’re talking about here … is a MAJOR overhaul of an entire transportation system. In 2020, Governor Newsom set a goal to ban the sale of new gas-powered vehicles in California by the year 2035. And California is outpacing other states in both EV adoption and infrastructure by a long shot. We have more chargers than any other state. But in order to reach that lofty goal … Carleen says we need three things:\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen:\u003c/strong> We need to move the adoption of EVs forward. We need to move the number of charging ports available as well, and we need to move the grid capacity as well.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>These things all have to happen simultaneously. Consumers, charging companies, EV manufacturers, utility companies, local governments … everyone has to work in concert for this to work. Carleen says, right now, the utility companies aren’t necessarily pulling their weight.\u003c/p>\n\u003cp>\u003cstrong>Carleen Cullen: \u003c/strong>There’s a huge lag time between when the station, the charging station vendor requests the power and when PG&E actually delivers it.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>For a charging station to operate, it needs to be hooked up to our power grid. That’s where PG&E comes in. And they won’t just let you set up a charging station ANYWHERE. They have to be able to deliver enough power to that site.\u003c/p>\n\u003cp>Is the section of the grid you’re trying to connect to also connected to a big manufacturing plant … for example? Are your neighbors using a lot of electricity during certain times of the day? Then the available power is likely spoken for. Does that portion of the grid rely heavily on solar power? Then the chargers may not work when the sun goes down.\u003c/p>\n\u003cp>These are critical considerations, says David Almeida … a manager within PG&E’s clean energy transportation group. And he says Carleen’s critique is fair. He says, yes, the utility is definitely still playing catch-up.\u003c/p>\n\u003cp>\u003cstrong>David Almeida:\u003c/strong> So we have over 600,000 EVs in our service territory. And we’ve seen EV adoption grow at about 26% of the compound annual growth rate over the last few years. That’s a significant amount of load that we’re seeing on the system.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>He also says … they didn’t plan for that increased demand for electricity. In fact, they UNDERestimated it … and, as a result, they don’t have the infrastructure to support it right now.\u003c/p>\n\u003cp>But, he says, they’re working on it.\u003c/p>\n\u003cp>\u003cstrong>David Almeida: \u003c/strong>We are building out a forecast that doesn’t look at necessarily just historical load, but it looks at where we anticipate load growth.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>He says their goal is to make electric car charging stations faster to build and more reliable once they’re up and running.\u003c/p>\n\u003cp>\u003cem>Music\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin: \u003c/strong>This all sounds like a lot of work. Overhauling our entire state’s transportation system … building thousands and thousands of new charging stations … getting utility companies on board … I’m exhausted just thinking about it.\u003c/p>\n\u003cp>But it’s important to remember WHY we’re doing this. Right now, California’s transportation system is BY FAR the largest contributor to our greenhouse gas emissions. Transitioning away from gas-powered cars is critical to mitigating the impacts of climate change.\u003c/p>\n\u003cp>And Evs are already helping to do that.\u003c/p>\n\u003cp>A recent study by scientists at UC Berkeley showed EV adoption in the Bay Area has already reduced our carbon emissions by almost 2 percent.\u003c/p>\n\u003cp>Now, obviously, to keep up that progress … the system has to work for EVERYONE. And I’m not sure we’re there yet.\u003c/p>\n\u003cp>\u003cem>Music sneaks in\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> What do you think, Olivia? Any more sympathy for the cause?\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> You know, yeah. I didn’t realize there were so many hurdles to getting new charging stations online. I feel really lucky that I am able to charge my car at home and so this isn’t an issue I have to deal with very often. But for folks who can’t charge overnight where they live — that’s a huge hurdle. And I’m sure it’s a non-starter for some people! It’s got to get better.\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Yeah … 2035 is not THAT far away … and if we’re gonna reach that goal, we’re going to need more charging stations.\u003c/p>\n\u003cp>I’m kind of hoping my Subaru lasts just a couple more years …\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price:\u003c/strong> Dana Cronin — thank you!\u003c/p>\n\u003cp>\u003cstrong>Dana Cronin:\u003c/strong> Thank you.\u003c/p>\n\u003cp>\u003cem>Music\u003c/em>\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>That was KQED’s Dana Cronin.\u003c/p>\n\u003cp>This story would not have been possible without our question-asker, Kelly Lindberg. That’s because you, our dear audience, decide what we cover by submitting questions — and then voting on which ones we should answer.\u003c/p>\n\u003cp>We have a new voting round-up at BayCurious.org with three enticing questions.\u003c/p>\n\u003cp>\u003cstrong>Voice 1:\u003c/strong> Why did Oakland International Airport become San Francisco Bay Oakland International Airport, giving us two very confusingly similar-sounding airports?\u003c/p>\n\u003cp>\u003cstrong>Voice 2:\u003c/strong> I remember going to the Berkeley dump, now Cesar Chavez Park, with my dad in the 1970s. It was pretty wild. It’d be really interesting to learn more about its evolution from dump to park.\u003c/p>\n\u003cp>\u003cstrong>Voice 3:\u003c/strong> I was walking my dog on Thornton Beach on the Daly City/SF border and found a really long tunnel coming out of the hillside around some abandoned piers. Any idea what it is?\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>Voting is so easy! Just grab your phone, pull up BayCurious.org, scroll to our voting round and click on your favorite question! No registering or emails or phone numbers or anything complicated. We try to make it easy on you.\u003c/p>\n\u003cp>Bay Curious is made by Ana De Almeida Amaral, Amanda Font, Olivia Allen-Price, Christopher Beale. Special thanks to Laura Klivans, Jen Chien, Katie Sprenger, Maha Sanad, Holly Kernan and the whole KQED Family.\u003c/p>\n\u003cp>\u003cstrong>Olivia Allen-Price: \u003c/strong>I’m Olivia Allen-Price.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11999232/what-will-it-take-to-improve-ev-infrastructure-in-california","authors":["11362"],"programs":["news_28779","news_34552","news_33523"],"series":["news_17986"],"categories":["news_31795","news_1758","news_19906","news_8","news_33520","news_248","news_1397"],"tags":["news_18426","news_21349","news_22457","news_21348","news_27626","news_1631"],"featImg":"news_11999267","label":"news_33523"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. 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