(June 25, 2007) The California Chamber of Commerce is urging the state Air Resources Board (ARB) to permit the innovation and efficiency of market forces to attack the challenge of meeting California’s aggressive goals to reduce greenhouse gas emissions.

Markets are the most cost-effective way to reduce greenhouse gas emissions throughout the world, delivering the most carbon reductions per dollar spent, the CalChamber points out in its review of the ARB’s April 20 “Proposed Early Actions to Mitigate Climate Change in California.”

The Global Warming Solutions Act of 2006, AB 32 (Núñez; D-Los Angeles), placed responsibility for regulating California’s greenhouse gas emissions with the ARB.

One of ARB’s mandates is to implement “discrete early actions” — specific regulations that can have immediate effect on reducing emissions — on particular industries. These discrete early actions will affect the majority of CalChamber members, both directly and indirectly.

Low Carbon Fuel Standard

Transportation represents a large portion of greenhouse gas emissions in the state. Earlier this year, Governor Arnold Schwarzenegger issued an executive order calling on multiple state agencies to combine their efforts to create a Low Carbon Fuel Standard that would be met through market-based methods.

The CalChamber believes this original vision should be sustained to ensure the state develops a multitude of fuel technologies that will help reduce emissions and create a fuels market that is cleaner and more affordable for consumers and businesses statewide.

Renewable fuel technology is still being researched and continues to develop each day. The ARB should refrain from picking winners and losers among these technologies so the state can recognize the benefits of each technology.

Other Important Considerations

The CalChamber also recommended that the ARB:

• recognize voluntary early emission reductions to give credit to true leaders in the business community that are setting an example for those industries that have yet to begin reducing greenhouse gas emissions.
• immediately begin an economic analysis of all proposed early action measures to ensure a credible system for the future.
• not confuse the priority of reducing greenhouse gas emissions with other environmental efforts the state is pursuing, such as criteria pollutants and air toxics.
• be sure its regulations don’t result in backsliding — increasing local criteria and air pollutants — in the process of reducing greenhouse gas emissions.
  
  

Global Issue, Global Model

The CalChamber also reminded the ARB that reducing greenhouse gas missions is a global issue, and California is being watched by a number of states and nations as it embarks on this regulatory program.

The state should promote best practices and programs on a global scale to remain a leader in the fight against global warming.

Staff Contact: Amisha Patel