Measure GG | californiachoices.org

My vote

Would adopt a tax of $2.9647/therm of natural gas consumed annually in buildings of 15,000 square feet or larger except government buildings, single-family residences, and residential buildings with at least 50% affordable units, adjusted annually for inflation plus 6%; allocating revenues to building decarbonization programs, and administration; and establishing an oversight committee, generating an estimated $26.7 million the first year and more thereafter until its expiration in December 31, 2050. Measure GG requires a majority vote for passage.

Fiscal Impact: This would raise approximately $26.7 million in the first year alone, and would incur administrative costs.

Next Alameda County Measure: Measure HH

See Endorsements for Measure GG

Details

Pro/Con

Pro:

Supporters argue that Measure DD will fund climate-friendly building upgrades for all Berkeley residents and businesses through a carbon tax on the largest polluters! This special tax would only be applied to owners of the largest greenhouse gas emitting buildings 15,000 square feet or larger. Owners are prohibited from passing tax on to residential tenants.

It would mean:

Clean upgrades for all – homeowners, renters, restaurants, nonprofits, other businesses, and those who are taxed! Upgrades include solar, battery storage, heat pumps, ACs, induction cooktops, panel upgrades, wiring, EV charging, insulation, and more;
Incentivizes the largest buildings to reduce harmful methane emissions and improve air quality. Methane increases asthma risk and smog.

This measure would generate an estimated $26.7 million per year Just Transition Fund to help all residents fight climate change, improve health, and create well-paying green jobs. Proceeds can only be used to support climate action supervised by an oversight committee.

Yes on GG (Campaign Site)

A YES vote on this measure means you support a tax of $2.9647/therm of natural gas consumed annually in buildings of 15,000 square feet or larger to fund building decarbonization in Berkeley.

Con:

Opponents argue that Berkeley is making great progress in reducing natural gas use. Measure GG doesn’t just tax Berkeley’s “largest polluters.” It will force many nonprofits, schools, places of worship and small businesses to cut programs and staff, close, or leave Berkeley. Berkeley Repertory Theatre. Berkeley YMCA. The environmental and social justice nonprofits at David Brower Center. Berkeley Bowl. Boichik Bagels. All want to transition from natural gas, but none are capable of doing that immediately. The technology simply doesn't exist yet for them to transition. See just some of those who GG dramatically impacts: NOonGG.org/impact Measure GG impacts renters, not just building owners.

NOonGG.org (Campaign Site)

A NO vote on this measure means you oppose a tax of $2.9647/therm of natural gas consumed annually in buildings of 15,000 square feet or larger to fund building decarbonization in Berkeley.

In Depth

This measure would impose a new special tax on natural gas consumption in buildings of 15,000 square feet or larger that are actively heated or cooled.

The tax rate would be roughly $2.9647 per therm (a unit of energy) of natural gas consumed in a building during the tax year. It would be calculated as the sum of the following:

The product of $382 X [total therms] X [natural gas carbon emissions factor of 0.0053]
The product of $10,044 X [total therms] X [natural gas leakage factor of 0.04] X [natural gas methane content factor of 0.9] X [natural gas therm to metric ton factor of 0.0026]

The City estimates this tax would generate annual revenues of roughly $26.7 million per year. The tax would be charged to building owners, who would be prohibited from passing the tax onto tenants in residential or mixed-use buildings in the form of increased rent or costs. The tax would not apply to 1-to-4 unit residential buildings, residential buildings where more than 50% of the units are deed-restricted to be affordable to households making less than 80% of the Area Median Income, or government-owned buildings. The City Council could exempt 501(c)(3) tax-exempt organizations with annual revenues under $1,000,000, provided certain conditions are met. The measure prohibits the City Council from adopting other exemptions.

The measure would take effect January 1, 2025, and expire December 31, 2050. The tax would be due February 28, 2026, and annually thereafter, subject to a penalty of 10% of the amount due plus interest of 1% per month for delinquent payments. The base tax rates would be adjusted every year, beginning January 1, 2026, by the sum of the percentage increase in the Consumer Price Index plus 6%. The measure would prohibit the City Council from reducing the tax rates or otherwise reducing the tax absent a finding, supported by substantial evidence, that doing so is necessary to temporarily address unusual circumstances, such as a natural disaster, and that the reduced tax will nevertheless achieve the measure’s purposes.

All tax proceeds would be deposited into a special purpose fund to be used for administering the measure (up to 3%); any refunds; a program of natural gas conversions and building decarbonization retrofits (90% of the remainder); and permanent unionized City staff for this program (10% of the remainder). In using the proceeds, the City would be required to prioritize tenant protection and impact on communities identified by the state as vulnerable to effects from pollution, as well as natural gas conversion and decarbonization retrofits in low-rise residential buildings and restaurants.

The City’s Environment and Climate Commission would oversee administration of the fund, conduct an annual needs assessment regarding retrofitting existing buildings in the City, and make recommendations to City Council.

Source: City of Berkeley Ballot Measure Documents

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