Overview

In 2007, California began its efforts to jump-start the implementation of AB 32 (Núñez; D-Los Angeles), the California Global Warming Solutions Act of 2006 (Chapter 488). This landmark legislation establishes mandatory reporting requirements and caps greenhouse gas emissions produced by industries categorized as significant sources. With the passage of AB 32, California has distinguished itself as the only state that caps carbon. The state’s ambitious effort to curb greenhouse gas emissions will continue to be watched by states and nations across the globe.

Goals:

• Minimize compliance costs by actively pushing for measures that effectively reduce carbon while allowing for continued economic growth.
• Develop regulations in a way that allows for business growth in California.
• Create an allocation process that is fair to all industries and doesn’t lead to one or two industries subsidizing the reductions of all sectors.
• Encourage the Air Resources Board and Public Utilities Commission to work together in developing the framework of the resolutions and ensure that deadlines are realistic and workable for all entities involved.

Major Victories

• Stopped a climate change tax increase that would have increased costs and discouraged job growth by granting the Air Resources Board broad authority to implement unlimited fees and taxes with little or no oversight (AB 231, AB 1405, SB 31).
• Blocked increases in business costs and threats to state jobs and businesses by stopping a bill that would have severely limited the amount of offsets California industries can use to meet their greenhouse gas emission goals (AB 1404).

Position

The CalChamber believes that to be a true leader on this issue, the state needs to share its proven energy efficiency knowledge while harnessing the innovation and creativity of its citizens to pioneer new, low-carbon technologies. In fact, policy approaches that recognize and encourage California’s leadership and innovation in the environmental arena can be more effective than taxes or fees. Successful technologies developed in California and implemented throughout the world could provide a win-win for California businesses both by helping to reduce greenhouse gas emissions here and in other nations, and providing jobs in the state. Climate Change

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