Council Connect Articles

Proposed Berkeley Fossil Fuel Tax Would Impact Hospitals and Health Systems

Who

  • Hospitals and health systems with large buildings in the city of Berkeley  
  • Berkeley Chamber of Commerce and Downtown Berkeley Business Association  

What

A local environmental group in Berkeley has gathered the required signatures to qualify its so-called “Large Buildings Fossil Fuel Emissions Tax” for the November ballot. The proposed tax on natural gas usage would apply to buildings of 15,000 square feet or more, including a hospital in Berkeley and some medical office buildings and laboratories operated by health systems. The proceeds from this local tax would be placed in a special fund to support converting properties from natural gas to electricity, with single-family residences and restaurants as the priority.  

At the request of the Berkeley City Council, city staff prepared a report on the economic impacts and benefits of the proposed tax. The report showed that health care facilities are likely to pay the highest tax per square foot compared to other property types and, due to how the measure is written, the city council would be precluded from adopting any exemptions to provide relief to larger nonprofits, health care facilities, essential services such as grocery stores, or other properties that serve the public interest.  

If passed by voters, the tax on natural gas usage would go into effect on Jan. 1, 2025. Every year, the tax would increase with inflation, plus 6%.  

Takeaway/Next Steps

Hospital Council contributed background information for inclusion in the impact report prepared by city staff. The Berkeley Chamber of Commerce and Downtown Berkeley Business Association have formed Berkeleyans for Effective Climate Action to oppose the ballot measure. We are participating in meetings with the opposition campaign and determining next steps.

Contact

RVP Rebecca Rozen at rrozen@hospitalcouncil.org