​(September 28, 2011) The California Chamber of Commerce yesterday provided formal comments to the California Air Resources Board (CARB) on draft amendments to the Cap-and-Trade Regulation, urging elimination of an illegal and arbitrary tax and highlighting the need for adoption of an operable, cost-effective market designed to meet the goals of AB 32 without creating undue harm to the economy. 

“It is unfortunate that as California is cutting critical programs such as K-12 education, higher education, public safety and the courts, CARB is contemplating raising taxes for non-essential programs,” said Allan Zaremberg, president and CEO of the California Chamber of Commerce. “The $2 billion that will be raised through this program will reduce funds employers might otherwise have used to hire workers and make investments in our economy. It is troubling that CARB would consider imposing an illegal tax that will pass higher costs onto consumers at a time when they can least afford it.” 

CalChamber has been an active voice representing the interests of nearly 15,000 California employers throughout the process of AB 32 implementation. In the comments submitted to CARB, CalChamber specifically challenged CARB’s proposal to levy an unjustified and illegal tax on business that will place California companies at an immediate competitive disadvantage. A CARB member recently said the proceeds from the tax will raise $2 billion from California businesses.  

According to CalChamber’s comments, “Imposing a tax on business via CARB’s proposal does nothing to maximize environmental benefits required under AB 32 and it is not needed to ensure the stringency of the overall cap.” In fact, “the tax proposed by CARB contradicts the AB 32 requirements of minimizing costs and maximizing benefits for California’s economy in the design of emission reduction measures.  The tax will negatively affect all California businesses and increase costs that will be passed down to consumers.” 

A full copy of CalChamber’s September 27, 2011 letter to CARB, its August 11, 2011 letter and all comments submitted to CARB can be found at www.calchamber.com.

Staff Contact: Brenda M. Coleman