May 29, 2026
The Orange County Business Council (OCBC) joined a broad statewide coalition of business organizations, labor partners and industry stakeholders in opposing AB 1777 (Garcia), legislation that would have significantly expanded the California Air Resources Board’s (CARB) regulatory authority over indirect sources of air pollution.
AB 1777 failed to advance out of the Assembly after Assemblymember Garcia was unable to secure sufficient votes to bring the measure up before the Assembly’s legislative deadline.
The bill would have authorized CARB to regulate emissions associated with facilities, buildings, structures, roads and other properties based on emissions from vehicles and equipment not directly owned or controlled by those entities. Opponents raised significant concerns regarding regulatory overreach, increased costs for businesses and consumers and potential impacts on housing, infrastructure and economic development projects across California.
OCBC opposed AB 1777 as part of a coalition of 66 organizations, citing concerns that the measure represented one of the largest expansions of CARB’s authority in recent history while creating duplicative regulatory frameworks with limited demonstrated air quality benefits.
California businesses have long supported practical and effective air quality improvements. However, policies that create additional uncertainty, increase the cost of living and hinder critical infrastructure investment risk undermining the state’s long-term economic competitiveness.
OCBC appreciates the engagement of coalition partners, legislators and stakeholders who worked collaboratively throughout the legislative process to raise awareness of the bill’s potential impacts on California’s economy, affordability and future growth.
For questions, please email Amanda Walsh, Vice President of Government Affairs.
