(December 12, 2008) Without a realistic assessment of the impact that the AB 32 scoping plan will have on existing jobs in California, the California Chamber of Commerce is certain that the state is headed down a path that will slow economic recovery and delay a long term solution to the budget crisis, explained CalChamber policy advocate Amisha Patel, yesterday before the California Air Resources Board (ARB).
Following public testimony that included concern from California employers, the Board unanimously approved the nation's most sweeping plan to curb emissions with the goal of reducing greenhouse gases to 1990 levels by 2020 – a 30 percent reduction. The changes called for over the next 12 years will affect the products Californians buy and the prices they pay, the cars they drive and the places they live.
The plan spells out 31 rules, including emissions-reduction targets for a wide range of industries, creation of an elaborate cap-and-trade program to limit emissions and requirements for local governments to reduce development.
Specific regulations to lower greenhouse gases will be created by the board in the coming months.
Poor Economic Analysis
California’s current budgetary issues are posing tremendous challenges for the business climate in our state. Without an adequate assessment of the impact AB 32 will have on current employment and some plan to mitigate that impact, CalChamber believes that state will experience increased unemployment rates and an exacerbated recession. CalChamber understands that ARB believes climate regulation may bring new green jobs to the state; however, the reality is that this plan will drive up costs for companies currently providing high quality jobs. Effectively, the result will be a redistribution of wealth that will result in job loss in the short run and create additional harm in an already troubled economy.
Although the CalChamber is very supportive of building a strong green business sector in the state, it is important that we retain our existing industries and help them meet their AB 32 goals. In yesterday’s testimony, CalChamber urged the Board to address the various concerns and issues brought forth by peer reviewers of previous economic impact studies including those from the Legislative Analyst’s Office, and the Analysis Group. The Board was urged to commission a study that would address the true impact on business and jobs in the state. Further, CalChamber’s Patel recommended that California’s climate program would benefit from a comparative analysis that examines the impacts of various alternatives and options to what is proposed in the scoping plan. This comparative analysis will help the Board make informed decisions to ensure that California is proceeding with the options that allow for maximum environmental benefit at the lowest cost.
In yesterday’s testimony, CalChamber asked the Board to revisit the scoping plan and update it as the federal government takes an increasing role on the climate change front. CalChamber supports President-Elect Obama’s pledge to put more funding into cleaner fuels and technology research to increase knowledge and development of green technologies. CalChamber believes that it would be better to leverage these funds in developing California’s program rather than increasing near term costs on existing businesses. If California is to be a true leader in green technology and in the fight against climate change it is important that the state take advantage of national efforts and potential investment to boost California’s economy and help state businesses meet their regulatory targets
Staff Contact: Amisha Patel