This Unsustainable Tax Hurts Berkeley’s Nonprofits, Renters and Small Businesses
Berkeley’s nonprofits and small businesses are eager to fight climate change by transitioning from natural gas to electrification. But this dramatic, unsustainable building tax on hundreds of Berkeley nonprofits and small businesses would effectively triple the cost of operating with natural gas almost immediately–costing our nonprofits and small businesses tens to hundreds of thousands a year. For many, it could be years before it’s possible to transition off natural gas, and this measure does nothing to help in the meantime. It hurts nonprofits most, putting small businesses and institutions like Berkeley Bowl in jeopardy, and hits Berkeley’s only hospital with an unaffordable, unsustainable tax increase almost immediately. Renters will face rent hikes or displacement as a result of the unintended consequences of this measure, which was written without community input. Nonprofits, environmentalists, and small businesses urge you to vote no.
Hurts Berkeley’s struggling nonprofits the most
If the measure passes, many nonprofits will be forced to cut community programs or services, which often directly benefit low-income residents and seniors. These include nonprofits working to reduce homelessness, build affordable housing, support after school programs, and tackle the climate crisis. We should help–not hurt–our nonprofits.
Hurts Berkeley’s most vulnerable renters
The City’s own report determined the measure will harm tenants. The report says the measure could cause “displacement … [or] higher rental costs,” and that rental “units could be removed from the market altogether due to the high cost to upgrade.” The report warns that landlords could also use “construction-as-harassment” to “force renters out of their homes.”
Puts small businesses and Berkeley institutions like Berkeley Bowl in jeopardy
Small business leaders told the City the measure will hurt small businesses still recovering from the pandemic, driving them away and discouraging new ones from opening. The City’s report said the measure could force struggling small businesses “out of business completely.” The measure will deprive Berkeley of good-paying jobs and needed revenue, while leaving commercial areas vacant and forcing remaining businesses to raise prices. That’s not sustainable.
Hits Alta Bates with an immediate tax increase, hurting the hospital's ability to deliver high quality patient care
Berkeley’s healthcare providers will pay more than other facilities. Alta Bates Summit depends on natural gas for a variety of essential patient services. Transitioning off of natural gas would be cost prohibitive for the hospital and require major new construction. The added financial burden would potentially lead to difficult decisions about staffing and resources, and may ultimately impact patient care.
Proponents aren’t even sure it’s legal, and it could expose the City to lawsuits costing us millions
The authors aren’t even sure it would pass legal muster, writing “we are fairly confident that this measure will stand up to scrutiny, for legal and practical reasons.” “Fairly confident” isn’t a gamble we can afford when we could face lawsuits costing taxpayers millions—funding better spent on building affordable housing, reducing homelessness, funding public safety, and implementing effective climate action. The City already spent nearly $300,000 defending failed legislation last year alone.
Unlikely to significantly reduce emissions
Many building owners will pass the cost of the tax on to their small business and nonprofit tenants, who have no control over their buildings’ heating and cooling systems, which rely on natural gas. Those that do electrify may find PG&E can’t serve their increased electricity demand, forcing them to pollute our community with dirty diesel generators. Businesses that leave will lose access to our clean electricity grid, and force Berkeleyans to drive further for goods and services, worsening emissions.
Join us in fighting for effective, sustainable climate action
We’re Berkeley nonprofits, environmentalists, small businesses, and neighbors who’re voting no. City staff is already working with nonprofits, small businesses, PG&E, and property owners to transition to a zero-emissions city in a way that makes big corporations pay their fair share without harming nonprofits and small businesses. We’re eager to be a part of it. Let’s do this in a sustainable, Berkeley way.