(June 28, 2006) A California Chamber of Commerce-opposed bill that will arbitrarily cap California’s carbon emissions passed the Senate Environmental Quality Committee on a party-line vote of 5-2.
AB 32 (Núñez; D-Los Angeles) is a “job killer” bill that which increases costs for California businesses, makes them less competitive, and discourages economic growth with little or no proven environmental benefit by adopting an arbitrary cap on carbon emissions. Further, AB 32 makes California unattractive to business by setting up a costly, state-only mandatory reporting system.
“California’s economy competes in a global market and AB 32 strives to combat global warming through a California-only approach, disregarding the carbon emissions contributed by the developing world," Dominic DiMare, vice president of government relations for the Chamber, told the Senate committee. “California is already one of the most heavily regulated states in the nation. This bill would make it virtually impossible for California industries to remain competitive in the marketplace, pushing both jobs and businesses elsewhere. While the Chamber shares concerns regarding climate change, it is very important that all strategies used to address greenhouse gas emissions ensure the state has the infrastructure needed for advancing cleaner technologies, the availability of an adequate energy supply over the long-term, a strong manufacturing sector, and a thriving economy.”
The committee offered several substantive amendments to the bill, which are still being reviewed by the Chamber.
Passage of AB 32 will make California the only state to have a cap on carbon emissions, creating an incentive for businesses to relocate to neighboring states or other countries to avoid the cap, thus causing carbon" leakage. " This problem not only will affect California’s economy, but may well have an adverse effect on the environment. When manufacturers and businesses move their operations to less-energy-efficient regions, they also will contribute to increasing emissions in those regions.
A recent study concluded that California would have to make sharp cutbacks in its energy use to meet the AB 32 emissions cap. Moreover, the cost of pending infrastructure projects would increase substantially because AB 32 emissions caps would make cement, steel and other materials more expensive to produce or transport.
See story.
See full study.
Climate Change Is Global Issue
AB 32 attempts to combat global warming through a California-only approach, disregarding the carbon dioxide emissions contributed by the developing world. Greenhouse gas emissions released by developing countries such as China and India will continue to increase with those nations’ economic growth.
Both countries also have admitted they are reluctant to reduce their emissions through any binding contract or cap that could jeopardize their economies. The impacts of these two countries’ emissions have a global effect. To focus on California, which already is engaged in maximizing energy efficiency, sets the state up for failure and economic devastation.
Key Vote
The 5-2 vote on AB 32 was as follows:
Ayes: Chesbro (D-Arcata), Escutia (D-Norwalk), Kuehl (D-Santa Monica), Lowenthal (D-Long Beach), Simitian (D-Palo Alto).
Noes: Runner (R-Lancaster), Cox (R-Fair Oaks).
The bill goes next to the Senate Rules Committee.
Join Opposition
The Chamber-led coalition Sustainable Environment and Economy for California (SEE California) is seeking new business members to join its effort to stop AB 32. For more information on joining SEE California, visit, www.seeca.org.
Staff Contact: Amisha Patel