March 30, 2023

Yay sports! Do the thing! Win the Points! And Happy Opening Day!

This Saturday the San Diego State University men’s basketball team plays in their first ever Final Four! A huge congrats to Chamber member SDSU and Go Aztecs! The Wave also set some records for being bada$$ women, with over 30,000 fans (most of you were there, we know) in the stands for their home opener.

We’ll see you at Petco.

Business Updates:

San Diego got California’s first-ever high speed charger for trucking fleets. Chamber members SDG&E and TruckNet celebrated the deployment on Monday with Chair Nora Vargas. (see International section for more details)

Do you live, work, or play downtown? The Downtown San Diego Partnership is gathering community feedback for strategic planning, please consider taking a few moments to fill out their survey.

Legislative Updates

Federal: 

In some (hopefully) positive economic news, First Citizens Bank acquired most of the now collapsed Silicon Valley Bank. First Citizens is taking over all of SVB’s deposits, loans, and physical branches. The deal makes First Citizens the 25th largest bank in the US.

Also in banking news, there’s a set of rules proposed for mid-size banks, scooping up the class of banks with $100M-$250M in assets. Led by the administration, possible ideas include more robust and less predictable stress tests and higher liquidity standards.

Nomination frustration for the Administration (see what we did there?). Despite having a Democratic Senate majority, several of President Biden’s nominees for key positions have had to withdraw from consideration or have had their nominations torpedoed by individual senators. This includes Biden’s pick for FAA administrator and an FCC nominee.

The U.S. Department of State has announced an increase in the visa fee for applicants seeking to enter the country. The increase will take effect on April 2, 2023. According to the announcement made by the US State Department, the fee for business/tourist visas and student visas will increase from $160 to $185.

Congressional Republicans may still be months away from releasing their budget proposal, which could arrive as late as September. GOP legislators are instead focused on ongoing debt-ceiling negotiations with the White House. Both the debt-ceiling and budget negotiations are expected to be protracted battles, with the GOP prioritizing spending cuts while the Biden administration hopes to strike a deal to raise the debt ceiling.

International:

Are you a dog or cat person? It’s safe to say that deceased drug lord Pablo Escobar was a “hippo person” after he brought a small number of the African beasts to Colombia in the late 1980s. After his death in 1993, the so-called “cocaine hippos” were left to roam freely and reproduce to now about 150 animals. The Colombian government issued a statement this week announcing good progress on the transfer of 70 hippos to overseas sanctuaries.

Big shout out to SDG&E for collaborating with local and state officials to open direct current fast chargers for electric medium and heavy-duty vehicles just north of the Otay Mesa Port of Entry. These are the first chargers in California specifically designed to cater to our region’s cross-border trucking community, which plays a vital role in our integrated supply chains. The Chamber continues to work closely with local, state, local officials to ensure a seamless EV charging transition along the US-Mexico border.

Our northern neighbor, Canada, had a population increase in 2022 of over one million, a record breaking number in its history. This is mostly due to a surge in international migration and temporary residents, securing Canada’s position as the fastest growing G7 country with a population growth rate of 2.7 per cent. Canada had previously announced efforts to facilitate work visas to help fill vacancies across sectors nationwide.

The Chamber held a series of field trips to the San Ysidro and Otay Mesa Ports of Entry along with our partners at the Smart Border Coalition and representatives from the City of Tijuana and the State of Baja to review all aspects of the crossing-experience and bring forward integral solutions for an efficient and secure border. More on these efforts soon so stay tuned.

The U.S. government is set to begin auctioning off rights to drill for oil and gas in the Gulf of Mexico. The auction is the first to be held since the Biden administration took office, and marks a departure from the administration’s efforts to shift away from fossil fuels and towards renewable energy. However, the administration has said that oil and gas development in the Gulf of Mexico will continue as long as it is done responsibly. The auction will be conducted by the Bureau of Ocean Energy Management (BOEM), which oversees the leasing of federal waters for oil and gas development.

State:

Governor Gavin Newsom has signed legislation implementing strong oversight and accountability on the oil and gas industry in California. The law, which goes into effect June 26, puts forth an independent watchdog to identify price gouging by oil companies and authorizes the California Energy Commission to create a penalty to hold the industry accountable.

Assemblymember Jesse Gabriel wants you to know that he does enjoy Skittles. Gabriel and fellow member Buffy Wicks recently introduced a bill that would ban five chemicals from foods sold in California. One of these chemicals, titanium dioxide, is apparently present in Skittles. Somehow the national media got hyper fixated on a Skittles ban and ran with that story, causing Gabriel to clarify that he does in fact “taste the rainbow”.

California is lifting its July 2021 request for voluntary 15% water conservation. Local water agencies will not have to implement the drought contingency plans they drew up during the last couple of years. However, the State is urging continued cautious water use as part of a larger vigilant attitude toward drought.

Governor Newsom is facing a flood of criticism for his decision to cut $40 million in funding for floodplain restoration efforts in the San Joaquin Valley. Local activists and elected officials argue that the funding is sorely needed in order to restore vegetation that helps combat flooding in cities especially prone to it.

The Governor’s office announced that its latest round of funding for Project Homekey is now available. Municipalities can apply for grants in order to purchase and rehabilitate a broad range of housing options, including hotels, motels, and multifamily apartment complexes.

A deal has been reached for fire insurance. It will require a certain group of insurers (known as the FAIR Plan) to boost coverage caps for those they insure… which is generally people who can’t find insurance otherwise due to fire hazards.

Local:

City of San Diego Development Services Department Update:

• DSD will be closed tomorrow (Friday, March 31) in observance of César Chávez Day. During the closure customers can still use online services to make payments. Server maintenance will be conducted that same day at noon on the online permitting portal. All services will resume Monday, April 3.

The U.S. Environmental Protection Agency has loaned $170 million for environmental upgrades at the Claude “Bud” Lewis Carlsbad Desalination Plant. The funds secured with the help of Rep. Mike Levin are to reduce financing costs for local water ratepayers, improve efficiency and environmental practices of the plant.

San Diego County’s labor force has now grown to pre-pandemic levels. There are 1.6 million workers, which is about 10,000 more than in early 2020. The unemployment rate for the County is unchanged from last month at 3.7 percent, which is good news even in a tight labor market.

One of the most in-demand jobs in the state of California is nursing, with a new study finding just under 60,000 vacancies across the state, and San Diego hospitals are feeling this need. UCSD Health reported just over 200 nursing positions available, a growing demand with a growing patient population.

According to the S&P Case-Shiller Indices,San Diego home prices are down 1.4 percent annually, according to their latest report released earlier this week. This is the first time San Diego has posted a negative number since June 2012. In the 20-city housing report, San Diego had the third largest decline in home prices.

The City of San Diego is working towards installing electric vehicle chargers in more than 400 city parking lots including libraries, beaches, parks, and recreation centers. This is another step forward in reaching goals for the city’s climate action plan.

The La Mesa Juneteenth Foundation is seeking vendors of all varieties for their second annual Juneteenth Celebration on June 18th. Attendance is expected to exceed 3,000.

Upcoming Public Input Opportunities

• The City of San Diego is hosting a public meeting about options for the Ocean Beach Pier, which has reached the end of its service life. The meeting will take place on April 1 from 12-4 at Liberty Station Conference Center.
• The County of San Diego seeks feedback on developing a roadmap to how new land use policies will guide new housing development. Not to be confused with the City, the County encourages the public to provide input on their Housing Blueprint. Take the survey by April 7.
• The City of San Diego seeks feedback on Blueprint SD, a proposal that involves taking a look at the City’s General Plan land use strategy and finding ways to encourage sustainable growth, more homes and jobs. Industry feedback is highly encouraged. Take the Blueprint SD survey today and be on the lookout for additional opportunities for input through their website.
• Equity Forward will be an inclusive public engagement guide for the City of San Diego. The goal is to create, “more equitable opportunities and investments in San Diego.”  You can make your voice heard by filling out the Equity Forward interest form today.

Upcoming Hearings

• The County of San Diego’s Board of Supervisors will meet on April 4 and April 5.
• The City of San Diego’s Planning Commission will meet on April 6.
• The San Diego City Council will be on legislative recess from March 23- April 7. They will next meet on April 10.

Capital Opportunities & Resources

• San Diego County’s Small Business Stimulus Grant funds are still available for local small businesses and nonprofits impacted by the pandemic. County Districts 1, 2, and 3 are still accepting applications. Learn more here.
• Small business owners may currently receive $2,000 per employee that participates in the paid family leave program. Small business owners can apply here.
• Businesses can reach out to their nearest Small Business Development Center (SBDC), which has developed the Small Business Survival Resources Guide. SBDC can help with applying for COVID-19 relief, guiding you through available resources, and assisting with cash flow concerns, supply-chain interruptions, workforce capacity, insurance coverage, and more–all at no cost!

Future Chamber Meetings (Virtual) & Committee Actions:

Sustainability & Industry Committee:

Our next meeting will be on April 6, 8:00am via zoom.

Transportation & Land Development Committee:

We are dark in April. Our next meeting will be on May 16 at 8:00am via zoom.

Cannabis Working Group Forum:

Our next meeting will be on May 17 at 9:00am.

Education & Workforce Roundtable:

Our next meeting will be on June 21 at 8:00am via zoom.

March 23, 2023

Spring has SPRUNG! And it’s time to Get Fit! The Chamber’s 30-day challenge, powered by Kaiser Permanente, started on Monday and runs through April 18th. Sign up here by March 26th to join the challenge. There are prizes for the individuals and teams in each division who earn the most points, so get moving!

We know, it’s hard to believe with this weather. But we swear, somewhere in there is springtime and lurking behind is summer sunshine.

Business Updates:

The San Diego Blood Bank has completed its “solar-plus-storage” project, an effort to create 100% renewable energy to charge the blood bank’s two new bloodmobiles. This is not only a plus for the environment, as well as a cost saving switch, but also provides a more pleasant experience for donors as there will be no generator fumes or noise surrounding the bloodmobiles as people wait.

Chamber member ACE Parking’s San Diego Airport fleet has achieved over one million all-electric zero-emission miles, setting a precedent of potential for more all-electric commercial vehicle fleets.

This summer, UC San Diego will begin construction on Triton Center and the Ridgewalk North Living and Learning Neighborhood. The new facilities will house over 3,000 students.

Legislative Updates

Federal: 

The President specifically requested $90 billion in discretionary funding for the Department of Education, a $10.8 billion (13.6%) increase over current budget allocations.

Parents, prepare for some angry tweens. The Biden administration is addressing TikTok once again in an effort to recognize national security concerns, pushing for a plan that would require Chinese owners to divest from the app. This comes in lieu of a recent effort by the White House to ensure TikTok is not on any federal devices. Today, the CEO of TikTok was in front of Congress explaining why banning the social media site isn’t a good idea.

Joe said no! President Biden vetoed his first bill on Monday. The legislation would have repealed a Department of Labor guideline that allows retirement plan managers to incorporate social and environmental factors into investment decisions. The veto is expected to hold up as the bill did not clear either chamber of Congress with anywhere near the two-thirds support needed to override it.

The National Transportation Safety Board is considering a probe of the safety protocols at all major rail companies. This follows bipartisan engagement on the toxic fallout from the Norfolk Southern derailment.

International:

Volkswagen announced a new battery factory in Canada for electric cars made in the US. This decision is part of Volkswagen’s wider strategy to increase its production capacity and improve its supply chain for electric vehicle components. On his most recent trip to Europe, President Biden met with the EU Commission to begin negotiations over electric vehicle tax credits and the use of European minerals in the production of batteries within the U.S. If the deal is completed, Biden stated it would “drive new investments to create clean energy industries and jobs”.

A new United Nations report warns that urgent action is needed to address climate change, as the world is on the brink of what they call a “climate calamity”. The report highlights the devastating impact of global warming and calls for investment in renewable energy, changes in land use, and efforts to reduce food waste. Without immediate action, the consequences of climate change will become more severe and irreversible.

U.S. Customs and Border Protection partnered with Carnival Cruise Line to test facial biometrics technology at the Port of Jacksonville, FL. This will help streamline boarding processing for passengers, as part of CBP’s goals to use technology to enhance security at ports of entry and facilitate the flow of legitimate travel into the country.

Regionally, SANDAG and Caltrans are working on a mobile app that will provide estimated wait times at the land ports of entry. The project began in 2016 to collect data using sensors to calculate the time it takes a vehicle to get from one point to another, with the goal of improving border crossing efficiency. The app will be ready by the summer.

Argentinians are struggling with the consequences of an annual inflation rate of over 100%, with residents barely able to afford food and medicine. Government authorities are implementing price controls and subsidies, among other measures to tackle the issue, but these efforts have failed to curb inflation. Experts believe that the underlying causes of the crisis are deep-seated, including lack of investment, weak institutions, and political instability.

World Trade Week San Diego is coming, and the San Diego Regional EDC will host its MetroConnect Grand Prize PitchFest on May 11th at UC San Diego Park & Market. We hope that you can join us and 300+ international business professionals from across Southern California for an action-packed afternoon filled with a world trade exhibition, pitch competition, and networking reception.

State:

California branded prescription drugs? Governor Newsom announced Saturday that the State of California has agreed a contract with Civica, a Utah-based pharmaceutical company, to produce insulin for as low as $30 under the CalRx brand. More affordable drugs are expected in the future under the brand, including opioid overdose reversal drug naloxone.

If you’re getting tired of all of those propositions on your ballot every 2 years, you aren’t alone. A few new bills have been introduced this legislative session to reform the process by which propositions make their way onto the ballot. Most are in response to specific industry groups (fast food, rideshare companies, etc.) that have used the referendum process to challenge State legislation. The bills would strengthen signature requirements and make paid signature gathering more publicly visible.

As the state continues to work toward increasing access to (and, well requiring) EV’s as the future of transportation, CalMatters took an interesting dive into the who and where of EV ownership. The takeaways? Predominantly “white and Asian, college-educated and high-income” residents have higher rates of EV ownership. Less affluent areas, less so. While perhaps not surprising, it does signal interesting future debates around the equity of such policies.

Local:

City of San Diego Development Services Department Updates:

• The City’s updated project submittal requirements for 2023 will become effective on April 20. Submittals that were prepared using last year’s version will continue to be accepted up until April 20. Learn more about the specific updates here.
• DSD’s “Affordable Housing Permit Now” Program is up and running. The program will provide expedited service to 100% affordable housing projects and emergency shelters. Check out the program’s website here, and Information Bulletin 195 here for more information.
• DSD is launching a Life Science Industry Pilot Program. The program will expedite the building permit process for both tenant improvements and new buildings for identified life science industry businesses.

The City of San Diego’s polystyrene ban goes into effect on April 1st. The waiver process has begun and emergency fee waivers will also be considered. Find out more here.

A study released last month by StorageCafe and Yardi revealed that it might be better to build than buy a home in California. Yes, you are not reading that wrong. Out of the 20 counties they analyzed, 13 of them fell into the “cheaper-to-build” category, San Diego County being one of those.

SANDAG Bike Anywhere Day (formerly known as Bike to Work Day) is back! Take the pledge to GO by BIKE on Thursday, May 18, and join thousands in the San Diego region as they pedal to work, school, or…anywhere! Roll into one of our many pit stops between 6 and 9 a.m. and pick up a free t-shirt (while supplies last).

Upcoming Public Input Opportunities

• The City of San Diego is hosting a public meeting about options for the Ocean Beach Pier, which has reached the end of its service life. The meeting will take place on April 1st from 12-4 at Liberty Station Conference Center.
• The County of San Diego seeks feedback on developing a roadmap to how new land use policies will guide new housing development. Not to be confused with the City, the County encourages the public to provide input on their Housing Blueprint. Take the survey by April 7.
• The City of San Diego seeks feedback on Blueprint SD, a proposal that involves taking a look at the City’s General Plan land use strategy and finding ways to encourage sustainable growth, more homes and jobs. Industry feedback is highly encouraged. Take the Blueprint SD survey today and be on the lookout for additional opportunities for input through their website.
• Equity Forward will be an inclusive public engagement guide for the City of San Diego. The goal is to create, “more equitable opportunities and investments in San Diego.”  You can make your voice heard by filling out the Equity Forward interest form today.

• Upcoming Hearings
• The SANDAG Board of Directors will meet on March 24.
• The County of San Diego’s Planning Commission will meet on March 24.
• The County of San Diego’s Board of Supervisors will meet on March 25.
• The San Diego City Council will meet on April 10th.

Capital Opportunities & Resources

• San Diego County’s Small Business Stimulus Grant funds are still available for local small businesses and nonprofits impacted by the pandemic. County Districts 1, 2, and 3 are still accepting applications. Learn more here.
• Small business owners may currently receive $2,000 per employee that participates in the paid family leave program. Small business owners can apply here.
• Businesses can reach out to their nearest Small Business Development Center (SBDC), which has developed the Small Business Survival Resources Guide. SBDC can help with applying for COVID-19 relief, guiding you through available resources, and assisting with cash flow concerns, supply-chain interruptions, workforce capacity, insurance coverage, and more–all at no cost!

Future Chamber Meetings (Virtual) & Committee Actions:

Sustainability & Industry Committee:

Our next meeting will be on April 6, 8:00am via zoom.

Transportation & Land Development Committee:

We are dark in April. Our next meeting will be on May 16 at 8:00am via zoom.

Cannabis Working Group Forum:

Our next meeting will be on May 17 at 9:00am.

Education & Workforce Roundtable:

Our next meeting will be on June 21 at 8:00am via zoom.

March 22, 2023

A few new bills have been introduced this legislative session to reform the process by which propositions make their way onto the ballot. Most are in response to specific industry groups (fast food, rideshare companies, etc.) that have used the referendum process to challenge State legislation. 

The bills would strengthen signature requirements and make paid signature gathering more publicly visible. 

Learn More

March 22, 2023

In honor of Women’s History month, Senate President Pro Tempore Toni Atkins has recognized 23 women who have and continue to accomplish great things in their communities including Chamber Board Vice-Chair Alessandra Lezama and Chamber member Clarissa Reyes Falcon. Congratulations all!

March 22, 2023

This month, Chamber President and CEO Jerry Sanders visited Tijuana to meet with the San Diego-Tijuana task force that was created last year to promote the region as the main destination for investment and join forces to advance policies and initiatives to boost economic development and benefit our border community.

The Chamber, along with the CCE – Tijuana’s business council that includes the presidents of 16 Tijuana business organizations – are developing a binational policy agenda.  The proposal includes the Chamber’s International Business Affairs priorities in:

• trade,  
• border infrastructure,  
• immigration and title 42, 
• Tijuana River cross-border pollution, 
• and CARB regulations on the transition to electric vehicles.  

The Chamber also working on a report that will outline comparable data between San Diego and Tijuana, such as emerging industries, key industries, demographic info, and tourism statistics.  

March 22, 2023

The Title 42-related policy proposal from the Department of Homeland Security may not move forward as expected as it is currently under review and welcoming public comment.

The proposal intends to “incentivize the use of new and existing lawful processes and disincentivize dangerous border crossings by placing a new condition on asylum eligibility.” 

As a recent report suggests, there are economic benefits to reduced border wait times. The Chamber continues to work with CBP and local authorities to ensure that a potential increase of migrants at the border doesn’t impact operations or efficiency. 

Learn More

March 22, 2023

This month, Mayor Gloria and Councilmember Whitburn held a press conference announcing updates to the enforcement of homeless encampments and streamlining ways to open new shelter beds to address homeless numbers. 

Learn more

Additionally, The County Board of Supervisors approved funding for a new app that will help first responders and homeless outreach workers find where beds are available in local homeless shelters. A pilot program for the app could be up and running within six months, and the hope is to have every County shelter included before the year ends.

March 22, 2023

Oh, California. Where there’s a nostalgia-inducing celebrity perpetually offering their services to run for office. The latest? Corey Matthews. Ben Savage, who is bringing “reasonable, innovative and compassionate solutions” to the race to replace Adam Schiff. While that all sounds perfectly lovely, we’d prefer he bring Topanga and make this a real party.

2023 is gonna be a long year.

Business Updates:

In honor of Women’s History month, Senate President Pro Tempore Toni Atkins has recognized 23 women who have and continue to accomplish great things in their communities including Chamber Board Vice-Chair Alessandra Lezama and Chamber member Clarissa Reyes Falcon. Congratulations all!

UC San Diego received a $15 million cryptocurrency donation to launch its new Meta-Institute for Airborne Disease in a Changing Climate. This unique donation will help the institute fulfill its mission to increase the scientific community’s understanding of airborne pathogens and create tools to fight viruses.

General Dynamics NASSCO, in partnership with Spanish state-owned shipbuilding company Navantia, will soon begin getting more involved in the offshore wind energy industry. In addition to proposing floating turbines, they will also be capable of building vessels to carry the equipment needed to build them.

Legislative Updates

Federal: 

Traveling with kids? A new DOT dashboard will show you which airlines allow a kid under 13 to be seated next to an accompanying adult for no additional charges. For our fellow parents, we’d like to know what airline will seat my kid next to a different adult for no extra charge, but we see the point here.

A bipartisan group of U.S. senators introduced legislation to create a new tax credit for developers that renovate crumbling homes. Developers could take advantage of this credit when the cost of renovating a deteriorating home exceeds the home’s potential sale price. Now if only we could get a tax credit for those new granite countertops!

Fed Chair Jerome Powell spent some quality time with Congress this week, with two days of testimony before partisan legislators with some pretty obvious partisan splits. The takeaways: the numbers this week are expected to reflect a still-hot job market, the debt ceiling is a problem, rates are gonna keep going up (until morale improves. Sorry couldn’t help ourselves).

It’s Biden Budget week, Baby! The President announced today what can at best be called an ambitious budget plan ($6.8T) given the very clear political hurdles he has with the make-up of Congress, however let’s talk about what’s in it: shoring up social security by raising taxes to 5% for families making $400k or more/year. Increasing taxes on people worth more than $100M. Quadrupling the stock buyback tax. Increasing marginal income tax rate to 39.6%. Reducing the federal budget deficit by $2T. The Republican version is expected next month.

President Biden will be visiting sunny San Diego on Monday where he will meet with British Prime Minister Rishi Sunak and Australian Prime Minister Anthony Albanese to discuss the AUKUS (Australia-United Kingdom-U.S.) partnership. Think he wants to check out our newly renovated space, or nah?

International:

Can’t afford to buy a house? Is rent these days way too expensive? You can now live on a cruise ship for $30k per year. Pack your bags and live that digital nomad dream you see all over TikTok. Life at Sea Cruises will set sail from Istanbul on November 1 and promises to visit 375 ports around the world.

Jerry visited Tijuana this week to meet with the San Diego-Tijuana task force that was created last year to promote the region as the main destination for investment and joining forces to advance policies and initiatives to boost economic development and benefit our community. Our partners include the San Diego Regional EDC, South County EDC, SD Tourism Authority, Tijuana Business Council (CCE), and Tijuana EDC. More to come on a binational policy agenda which we’ll take with us on our upcoming delegation trip to DC next month!

The US and the EU have been working toward a preliminary agreement that would allow European minerals in the construction of electric vehicles to qualify for tax credits. For context, the U.S passed an Inflation Reduction Act in 2022 that requires a certain percentage of battery minerals to originate in the US or another FTA member. This proves an opportunity for the U.S and the EU to strengthen their relationship, while Mexico focuses on developing infrastructure to support electromobility.

Our friends at the Institute of the Americas are hosting a  webinar on March 22 on how corporate climate and sustainability (ESG) commitments are being a factor for investment and project development in North America. Speakers include ​​Chief Sustainability Officer from Honeywell and other experts that you can check out here.

The City of Tijuana announced the reactivation of the SITT Express, a system that offers citizens the possibility of using multiple means of transport that work in coordination through infrastructure. It is expected to be finished by March and includes a plan to incorporate a path to the San Ysidro POE to improve mobility and reduce waiting times.

The Ensenada Beer Fest is back for another year!  This is the perfect event for beer lovers and tasters, who will get to enjoy 85 different beers from Mexico, the U.S., and Latin America. The event will take place on March 17 and 18 in Ensenada, Baja California in the Riviera Social, Civic and Cultural Center. Be ready to enjoy a complete gastronomic experience, since it will also have more than 30 urban and gourmet gastronomy proposals to accompany your beer with exquisite dishes according to the style of your drink. Don’t miss out!

State:

California’s own state agency for hazardous waste management – the Department of Toxic Substances Control – is in a sticky situation after an investigation revealed it has been dumping waste in out-of-state landfills. State lawmakers are planning an oversight hearing to discuss this and other toxic waste dumping.

In yimby news: Earlier today, Governor Newsom, Attorney General Bonta, and the Department of Housing and Community Development (HCD) officially announced that they will be filing a lawsuit and motion for preliminary injunction against Huntington Beach for breaking state housing laws.

The California Department of Public Health released new plans to not require masking in high-risk settings and to end vaccination requirements for healthcare workers in the near future. The new guidance will take effect on April 3, 2023. Related – effective next week (March 13, 2023) CDPH has new guidance for local health jurisdictions on isolation and quarantine of the public.

Local:

A celebration of the life of Matt Andersen will be happening next Friday, March 24th at Coronado Golf Course. Matt served as executive secretary and Director of the Dept. of Commerce’s San Diego Export Assistance Center. The tournament starts at 11AM followed by a celebration for life reception at 4:30PM. To RSVP please email rmattison1195@sdsu.edu.

Congratulations to Tiffany Allen, who has been promoted to Assistant City Manager at the City of Chula Vista! Allen has had several roles in Chula Vista, including Assistant Director & Director of Development Services.

SDSU has selected LPC West to develop the Innovation District project on the University’s Mission Valley campus. The project plan includes 315,000 square feet of office, lab and amenity space. Once they receive approval from the CSU Board of Trustees, the developer hopes to break ground in 2024 and complete the project in early 2026.

Good news for our Convention Center! 2023 events are set to rival pre-pandemic levels of business– we love to see it!

Yesterday, the City of San Diego’s Economic Development & Intergovernmental Relations Committee received an update on potential proposals to loosen zoning regulations and permitting fees to allow for more cannabis dispensaries for cannabis equity program applicants. The Committee heard from several stakeholders, some who also mentioned the need to still address how illegal delivery services are negatively affecting the legal market.

Onto your weekly outlook on housing in San Diego: Recent data from the Construction Industry Reach Board shows that fewer homes were built in 2022 (9,642) compared to 2021 (10,163) with the majority of homes built being multi-family (6,171). The City of San Diego comprised 46% of total homes built, with the unincorporated County and Chula Vista coming in second and third.

Upcoming Hearings & Public Input Opportunities

• The San Diego City Council will meet on March 13 and March 14.
• The San Diego County Board of Supervisors will meet on March 14 and March 15.
• The City of San Diego’s Planning department will be hosting a public workshop on March 13 to discuss and receive feedback on discontinued harmful uses & anti-displacement measures of the Mayor’s proposed Housing Action Package 2.0. Chamber staff are monitoring the development of this package closely. If you have any questions please email Angeli Hoyos.

Capital Opportunities & Resources

• The next California Competes Tax Credit application period will be from March 6-March 20, with approximately $99.7 million available. GO-Biz will be hosting webinars for  interested businesses to learn more on March 16.
• San Diego County’s Small Business Stimulus Grant funds are still available for local small businesses and nonprofits impacted by the pandemic. County Districts 1, 2, and 3 are still accepting applications. Learn more here.
• Small business owners may currently receive $2,000 per employee that participates in the paid family leave program. Small business owners can apply here.
• Businesses can reach out to their nearest Small Business Development Center (SBDC), which has developed the Small Business Survival Resources Guide. SBDC can help with applying for COVID-19 relief, guiding you through available resources, and assisting with cash flow concerns, supply-chain interruptions, workforce capacity, insurance coverage, and more–all at no cost!

You’re invited! SANDAG hosts quarterly virtual bike education classes that are free and available to everyone. Join us at our next class—Tuesday, March 14 at noon—to learn all about e-bikes from industry experts at the San Diego County Bicycle Coalition. E-bikes are growing in popularity, and they are great for completing short trips around the San Diego region.

Future Chamber Meetings (Virtual) & Committee Actions:

Education & Workforce Committee: 

Our first meeting of 2023 will be on March 15, at 8:00am via zoom. We’ve got a special presentation on AI & ChatGPT’s effects on industry.

Economic Development Strategy Working Group: 

Our next meeting will be on March 16, 9:00am via zoom. This will be our final meeting.

Transportation & Land Development Committee: 

Our next meeting will be on March 21 at 8:00am via zoom.

Sustainability & Industry Committee:

Our next meeting will be on April 6, 8:00am via zoom.

International Business Affairs Forum: 

Our next forum will be on __

Cannabis Working Group Forum:

Our next meeting will be on May 17 at 9:00am.

March 22, 2023

March is coming in like a wrecking ball. So you should probably register for our Mission to Washington, D.C. before early bird registration ends tomorrow.

Business Updates:

The news can be a drag. You know what’s not? Picnics. In a park! With music! Check out the 2nd Annual Picnic at the Park on March 5th.

SDG&E is providing $16 million in shareholder funding for consumer bill assistance. Additionally, SDG&E customers can expect rate savings of $60.70 on their March utility bill.

Legislative Updates

Federal: 

US Senator Diane Feinstein has been hospitalized for shingles treatment. Our thoughts are with the Senator and her family.

Biden’s got an FAA nominee, Phillip Washington, who went to the Senate for a hearing on Wednesday. TBD on his confirmation…

The inclusion of ESG considerations into retirement plans, proposed by the Biden administration, has set off yet another partisan fight. In short, the proposal came about last year to overturn a move by the Trump administration that narrowed consideration for retirement plans to only be able to focus on the financial questions at hand. This move allows for ESG considerations to come (back?) into play. A vote on Wednesday set Republicans against Democrats, but is just one part of the bigger landscape around “woke” policies and their role in a variety of financial scenarios. The Wednesday vote was almost entirely party line, with one Democrat in the House voting with Republicans. Moderate Dems in the Senate say they’ll give their Republican friends the support, setting up the President for his first veto, which we’re guessing he’s not psyched about.

A Chip is Born: Tuesday we saw the rollout of the federal Chips program. That’s $53B (a lot of pringles) in investment for semiconductor development domestically, but it comes with a long list of Do’s and Don’ts, which were the focus of the official unveiling. Read more here.

San Diegan procrastinators rejoice! Due to San Diego County being identified as a federally declared disaster area, the deadline to file your federal income taxes has been extended to October 16 and the state deadline will be on May 15 (as of now).

International:

Have you registered for the first IBA Forum of the year? Join us on March 9 for a conversation on strengthening international collaboration by leveraging sister city relationships. In partnership with the San Diego Sister Cities Association, guest speakers will share efforts to support cultural, educational, and economic ties with fellow sister cities and foster new relationships.

Did you hear about the recent tug of war President Lopez Obrador got into? After weeks of negotiations over where Elon Musk  would choose to settle Tesla operations in Mexico, a video phone call put an  end to this debate. Musk’s wishes will come true as he announced the construction of a major plant in Monterrey. He did however address Lopez Obrador’s concerns over the region’s water shortages by offering efforts to save water including  the use of recycled water in Tesla’s operations.

If you’re looking for unique and cultural artifacts, we’ve got the event for you. The seventh edition of the Tlaqueparte artisan exhibition will be taking place from March 17 to 20 at the Baja Center in Rosarito. You’ll have crafts, jewelry and decoration of more than 200 exhibitors from Mexico and the world under one roof at the most important craft exhibition in Mexico. Click here for further details or reach out to Chamber staff to get more info on how to register as an exhibitor.

Tens and thousands of people took to the streets again in Mexico City to protest against President López Obrador’s plans to cut jobs and funding for the National Electoral Institution which were recently passed by Congress. Although the issue is still under evaluation at the Supreme Court, this measure would impact resources for election offices and scale back training for citizens who oversee polling stations. López Obrador argues that the plan to slash the agency’s budget will save millions of dollars and make voting more efficient but some fear the return of practices seen when Mexico was run by an autocratic single-party for decades leading to the Mexican Revolution.

As the end of Title 42 approaches, border city leaders are preparing for an upcoming influx of migrants expected to arrive in hopes of seeking asylum in the US. The El Paso City Council extended an emergency ordinance that allows the city manager to shift municipal resources and personnel in response to those mass arrivals to ensure that residents and businesses near the border are not interrupted and continue their everyday operations.

State:

Congratulations to Imperial Beach Mayor Paloma Aguirre for being appointed to the California Coastal Commission!

A lawsuit has been filed against SB 1439, a new state law that requires local elected officials to recuse themselves from voting on land use and government contract proceedings if proponents contribute a total of $250 or more in the past 12 months. The lawsuit, brought forward by several business groups, argues that SB 1439 violates campaign finance rules and freedom of speech rights.

The newly formed Select Committee on Reconnecting Communities in the legislature will soon explore how California can reconnect neighborhoods that have been separated by interstates and highways, and address the negative impacts this has done to residents. Local Assemblymember David Alvarez will lead the discussion as a Committee Chair.

California Big City Mayors, a bipartisan coalition of cities across the state, held a press conference yesterday for their full support of Senator Susan Talamentes Eggman’s bills to update conservatorship laws. SB 43 would update the definition of “gravely disabled” and SB 363 would establish a real-time database of availability of beds in psychiatric and substance-abuse facilities. Mayor Todd Gloria is this year’s Chair of the coalition.

Could California protect ourselves from floods and other disasters by tracking and predicting atmospheric rivers? Some think so!

The CPUC  approved an Order Instituting Rulemaking (OIR) at its February 23, 2023 meeting to develop rules determining grant funding, eligibility, and compliance for funds distributed to California under the federal Broadband Equity, Access, and Deployment (BEAD) Program, created by the Infrastructure Investment and Jobs Act (IIJA).

Local:

Here’s this week’s outlook on housing in San Diego: The number of single-family homes hitting the market in 2023 will be historically low at less than 1,000 units and home prices overall have declined, putting San Diego near the bottom of the market compared to other large cities.

Here’s what happened at the County Board of Supervisor hearings this week:

• Approved the creation of the Child and Family Well-Being Department, which will bring altogether First 5 San Diego, Child Welfare Services, and other related HHSA departments under one umbrella. The transition to this department will begin in July 2023.
• Approved Chairwoman Vargas and Supervisor Fletcher’s proposal to expand services for senior citizens through the County’s Aging Roadmap. Staff will report back to the Board in six months on recommendations on how to improve services and treatment.
• Received an update on staff’s progress on options to consider for a vehicle miles traveled (VMT) mitigation program. Staff are still in the process of exploring ways to build more housing while reducing vehicle trips through promoting infill development, increasing transportation alternatives, a fee-based program, exchange program, or a mitigation bank. Concern over how VMT impacts development have been heard from all stakeholders throughout this process. Staff will continue to seek feedback from the public and will report back to the Board in 180 days.

The City hopes to soon begin construction of a planned railroad crossing at Park Boulevard in downtown San Diego. With permits secured, the $27 million project will start soliciting bids for the work in May. If all goes to plan, the City could see a completed vehicle crossing to connect the San Diego Bay to East Village by February 2025.

Upcoming Hearings & Public Input Opportunities

• The San Diego City Council will meet on March 6 and March 7.
• The City of San Diego’s Planning department will be hosting future workshops to discuss and receive feedback on the Mayor’s proposed Housing Action Package 2.0. Please click here on how to RSVP for future meetings. Chamber staff are monitoring the development of this package closely. If you have any questions please email Angeli Hoyos.
• The County of San Diego’s draft Inclusionary Housing Ordinance, Guide, and Economic Analysis is out for public review until March 7 (just 5 days left!). County staff seek industry feedback on a list of options for the Board to consider, ranging from incentives, in-lieu fees, project size thresholds, and more. The Chamber plans on providing feedback by the end of public review. If you have any questions or feedback to share, please email Angeli Hoyos.

Capital Opportunities & Resources

• The next California Competes Tax Credit application period will be from March 6-March 20, with approximately $99.7 million available. GO-Biz will be hosting webinars for  interested businesses to learn more on March 8 and March 16.
• San Diego County’s Small Business Stimulus Grant funds are still available for local small businesses and nonprofits impacted by the pandemic. County Districts 1, 2, and 3 are still accepting applications. Learn more here.
• Small business owners may currently receive $2,000 per employee that participates in the paid family leave program. Small business owners can apply here.
• Businesses can reach out to their nearest Small Business Development Center (SBDC), which has developed the Small Business Survival Resources Guide. SBDC can help with applying for COVID-19 relief, guiding you through available resources, and assisting with cash flow concerns, supply-chain interruptions, workforce capacity, insurance coverage, and more–all at no cost!

Future Chamber Meetings (Virtual) & Committee Actions:

Health Committee: 

Our next meeting will be on March 8 at 8:00am via zoom.

International Business Affairs Forum: 

Our next forum will be on March 9 at 10:00am via zoom.

Education & Workforce Committee: 

Our first meeting of 2023 will be on March 15, at 8:00am via zoom.

Economic Development Strategy Working Group: 

Our next meeting will be on March 16, 9:00am via zoom. This will be our final meeting.

Transportation & Land Development Committee: 

Our next meeting will be on March 21 at 8:00am. Hybrid meeting TBD.

Sustainability & Industry Committee:

Our next meeting will be on April 6, 8:00am via zoom.

Cannabis Working Group Forum:

Our next meeting will be on May 17 at 9:00am.

March 22, 2023

We know that running a business can be tough. Dealing with customers and employees and cybersecurity and insurance, among other things, is a lot to handle day to day, and you only have so much time to also be the HR expert that you’re supposed to be.

That’s why we’re really excited to invite you to a FREE HR symposium on March 10th, with a renowned national employment firm that is flying in just to tell you all about how to make the right decisions at your workplace, stay in compliance, and more importantly, stay out of trouble. Don’t forget to register and tell a friend (or your HR team, whatever works).

Business Updates:

Austal USA is celebrating the opening of its new repair facility located adjacent to Naval Base San Diego. The U.S. division of the Australian shipbuilder is expanding its work to service contracts with the U.S. Navy and other government repair contracts.

Sempra made its 13th appearance on Forbes’ Most Admired Companies List!

After 20 years, the USS Midway Museum plan to build a waterfront park on Downtown’s Navy Pier is being set into motion. Work will begin early next year on the $60 million project, transforming a parking area into Freedom Park.

Legislative Updates

Federal: 

On Tuesday the EPA announced that it would be taking over the cleanup of East Palestine, Ohio after a train carrying hazardous chemicals derailed last month. While the EPA will be stepping in to help with the cleanup, the railroad in question, Norfolk South, will be paying the expenses.

58 million: the number of dead chickens in the U.S. since last year due to the avian flu. If you’re interested in how businesses are coping, check out this deep dive about lasers, employee sanitation requirements (COVID flashbacks, anyone?), and vaccines.

You can run, but you can’t hide… From election season, that is. The RNC has set its first Presidential debate for August in Milwaukee.

International:

The latest on Title 42:  With the upcoming end of the COVID Public Health Emergency scheduled for May 11, the Supreme Court canceled arguments over the emergency health order for their March 1 hearing. As we continue to urge the administration for a plan to manage an expected increase of migrants and asylum requests at our southern border, DHS announced a new policy that would bar migrants from applying for asylum if they had not done so previously in any country they visited as they reached U.S. land ports of entry. If approved, this measure would be enforced for 2 years upon taking effect in May.

TLDR: Title 42 to end in May. New policy proposal welcomes public comment here.

The Chamber participated in a series of meetings along the US-MX border which gathered data and insight on the economic impact of border infrastructure efficiency. A report was published last week by the Atlantic Council in partnership with DOS and in collaboration with the University of Texas and El Colegio de la Frontera Norte in Tijuana. Highlights of what could be accomplished by border wait times just 10 minutes include:

• 532 additional trucks would cross the border each day and result in a $26M monthly economic intake.
• 60,040 additional passenger vehicles would cross and have a $5.4M economic impact in the tourism, hospitality, and retail sectors.

TLDR: reduced border wait times = more jobs, increased GDP, and over $500M in extra spending at border states.

President Biden made an unexpected trip to Kyiv to emphasize support to Ukraine during the Russian invasion. During his visit, he met with President Zelensky about additional aid which includes more military equipment. He also discussed new sanctions imposed on Moscow later in the week.

Baja State authorities and local business leaders met with Mexico’s Secretary of Economy Raquel Buenrostro to discuss efforts to boost job creation and productivity in our region. Governor Marina del Pilar proposed a series of incentives to support business development and investment across the state, while the National Chamber of Commerce (CANACO) urged for measures to strengthen local commerce and border region competitiveness.

Join us on March 9 for a conversation on strengthening international collaboration by leveraging sister city relationships. In partnership with the San Diego Sister Cities Association, guest speakers will share efforts to support cultural, educational, and economic ties with fellow sister cities and foster new relationships.

The Mexican Consulate is hosting its 3rd Consular Entrepreneurship Program for Mexicans Abroad (PCEME) aimed to empower women of Mexican origin residing in the U.S. This FREE program comprises virtual conferences with business and entrepreneurship experts, a mentoring program, a business plan competition, and a list of helpful resources.

State:

Five hours, but no big takeaways (applicable to many a public hearing, no?). The legislature had its first special session on gas prices but even lawmakers said that they had yet to find any “smoking gun” that indicated nefarious behavior from the companies. The legislation introduced to penalize profits over x amount (the x is intentional, they haven’t made any decisions) is still lacking significant details. Details from the hearing here.

Familiar with CalAIM? Probably not. But if you are (hi, health care industry readers!) check out the results of a CA poll from the CA Health Care Foundation on CalAIM.

California collected $221.6 million in cannabis tax revenue in the fourth quarter of 2022.

Local:

San Diego Port commissioners voted unanimously in favor of amendments to its ordinance governing street vending and expressive activity along the Embarcadero. The new rules will go into effect May 1st and has allotted 36 defined spaces in eight designated areas where commercial and expressive activity will be permitted.

The San Diego Police Department launched two initiatives to help combat the fentanyl crisis. As part of Mayor Gloria’s executive order, the SDPD will train police dogs to detect fentanyl and use a new software to map where overdoses have occurred.

The Coastal Environmental Rights Foundation notified the City of San Diego earlier this month of their intent to sue over changes to the Mira Mesa Community Plan which was adopted late last year.  CERF notes that the Community Plan, which dictates land use designations and is a guide for future growth and development, does not meet transit-based climate action plan goals.

The San Diego City Council voted unanimously to extend their contract with Circuit Transit, which operates the Free Ride Everywhere Downtown (FRED) shuttle service, for another year. There are currently 20 all-electric, open-air cars servicing the area between Little Italy and East Village.

A new study released from UC San Diego predicts that San Diego housing prices will drop by 12% by the end of the year. While the study predicts housing prices will drop 5% nationally, San Diego’s predicted price plunge is due to how overheated the market was during the pandemic. To read more on the study click here.

The City of Chula Vista’s tenant protections ordinance, which was passed by the City Council in November 2022, will officially go into effect on March 1. The Southern California Rental Housing Association has a webpage with resources for landlords and will be holding a webinar for members in the near future.

Upcoming Hearings & Public Input Opportunities

• The SANDAG Board of Directors will meet on February 24.
• The San Diego City Council will meet on February 27 and February 28.
• The County Board of Supervisors will meet on February 28 and March 1.
• The County of San Diego’s draft Inclusionary Housing Ordinance, Guide, and Economic Analysis is out for public review until March 7. County staff seek industry feedback on a list of options for the Board to consider, ranging from incentives, in-lieu fees, project size thresholds, and more. A virtual public meeting will be held on March 1 at 6:00pm. The Chamber plans on providing feedback by the end of public review. If you have any questions or feedback to share, please email Angeli Hoyos.

Capital Opportunities & Resources

• San Diego County’s Small Business Stimulus Grant funds are still available for local small businesses and nonprofits impacted by the pandemic. County Districts 1, 2, and 3 are still accepting applications. Learn more here.
• Small business owners may currently receive $2,000 per employee that participates in the paid family leave program. Small business owners can apply here.
• Businesses can reach out to their nearest Small Business Development Center (SBDC), which has developed the Small Business Survival Resources Guide. SBDC can help with applying for COVID-19 relief, guiding you through available resources, and assisting with cash flow concerns, supply-chain interruptions, workforce capacity, insurance coverage, and more–all at no cost!

Future Chamber Meetings (Virtual) & Committee Actions:

Sustainability & Industry Committee:

Our next meeting will be on March 2, 8:00am via zoom.

Health Committee: 

Our next meeting will be on March 8 at 8:00am via zoom.

International Business Affairs Forum: 

Our next forum will be on March 9, at 10:00am via zoom.

Education & Workforce Committee: 

Our first meeting of 2023 will be on March 15, at 8:00am via zoom.

Economic Development Strategy Working Group: 

Our next meeting will be on March 16, 9:00am via zoom. This is expected to be our final meeting.

Transportation & Land Development Committee: 

Our next meeting will be on March 21 at 8:00am. Hybrid meeting TBD.

Cannabis Working Group Forum:

Our next meeting will be on May 17 at 9:00am.