(January 31, 2007) A coalition co-chaired by the California Chamber of Commerce this week told state regulators that rules permitting businesses to plan could help speed the greenhouse gas emission reductions which are the goal of the state's new landmark law.

AB 32 (Núñez; D-Los Angeles) enacted last year, gives the California Air Resources Board (ARB) unfettered discretion to develop rules aimed at reducing greenhouse gas emissions in the state 20 percent by the year 2020.

At a January 22 ARB workshop on implementing AB 32, the coalition urged the ARB to adopt a certified early action program that provides greater regulatory certainty and encourages companies to continue investing in California.

Certainty Encourages Investment
"A certified early action program for AB 32 would not only provide the certainty businesses need to invest here in California, it could actually encourage companies to invest in energy efficiency and other projects earlier than required, which would speed up greenhouse gas emission reductions," said Dominic DiMare, CalChamber vice president of government relations.

The program would enable businesses to accurately and scientifically assess their current levels of greenhouse gas emissions and be recognized, rather than penalized, if they reduce emissions before the target date.

The coalition, known as the AB 32 Implementation Group, is led by the CalChamber and the California Manufacturers & Technology Association. The coalition represents trade groups and companies employing more than 1 million California workers.

The mission of the coalition is to ensure that the state achieves the greenhouse gas emission reductions required by AB 32 while maintaining the competitiveness of California businesses and protecting the interests of consumers and workers.

Principles
The coalition advocates that AB 32 be implemented consistent with the following principles:

• Provide Regulatory Certainty. The administration and regulators should move swiftly to ensure that companies understand the impact of AB 32 on new investments in the state and receive recognition for energy-efficient projects that save energy and reduce greenhouse gas emissions. The regulatory uncertainty that currently exists under AB 32 threatens new investment in California.
  
• Adopt Policies that Keep Jobs in California and Achieve Global Emission Reductions. As AB 32 is implemented, agencies must carefully evaluate its impact on California companies to ensure that implementation does not force companies to leave California or expand elsewhere. This outcome would transfer the location of greenhouse emissions rather than actually reduce them.
  
• Use Sound Scientific Methods of Review. The AB 32 process should be established through a rigorous, scientifically valid manner subject to an open process. This is particularly important in establishing emissions inventories, baselines and allocations.
  
• Impose only Cost-Effective and Technologically Feasible Regulations. AB 32 requires that regulations to reduce emissions must be cost-effective and technologically feasible. The coalition strongly supports this directive because it helps ensure that AB 32 will not increase costs for consumers, threaten jobs or make California companies uncompetitive.
  
• Promote Innovation and Market-Based Strategies. Implementation of AB 32 should emphasize policy choices that promote technological innovation and the efficiency of market-based strategies and that include adequate regulatory certainty, reasonable timelines and permit streamlining.
  
• Minimize and Fairly Allocate Compliance Costs. AB 32 implementation should minimize compliance costs and administrative fees to protect California jobs and consumers. Furthermore, the administrative costs of implementing AB 32 should be borne equitably across all sectors.

The AB 32 Implementation Group will continue its dialogue with all parties, including the ARB, the administration and the Legislature. It will work closely with stakeholders to develop solutions that protect California businesses and the economy.

Staff Contact: Amisha Patel