(September 2, 2009) California Chamber of Commerce-supported legislation that will prevent the loss of thousands of jobs won unanimous approval from a Senate policy committee on August 26.

SB 696 (Wright; D-Inglewood) supports the construction of vital projects and keeps businesses in California by permitting certain businesses in the South Coast Air Quality Management District (SCAQMD) to be granted emission credits.

In supporting the bill, the CalChamber said SB 696 is absolutely necessary for businesses to receive the certainty they need to continue investing in the South Coast region.

A 2007 ruling by the Los Angeles County Superior Court prevents the SCAQMD from allowing certain businesses to use emission reduction credits from previous air quality improvements to meet emission limits required by federal law. As amended during the committee hearing, SB 696 allows the court case to proceed while enabling the use of emission credits by certain businesses.

California is suffering from a high unemployment rate and weak economy. If businesses and industry in the South Coast region are prevented from using emission credits, they will not be able to obtain much-needed permits to operate on a daily basis. These businesses and facilities represent much of the essential services needed in the South Coast.

Failing to fix the ongoing crisis due to a lawsuit will further jeopardize the economy while halting many environmentally friendly upgrades and projects that are being planned at facilities in the region.

SB 696 permits businesses uninvolved in the lawsuit to continue to operate and provide daily essential services.

Key Vote

Ayes: Simitian (D-Palo Alto), Runner (R-Antelope Valley), Ashburn (R-Bakersfield), Corbett (D-San Leandro), Hancock (D-Berkeley), Lowenthal (D-Long Beach), Pavley (D-Agoura Hills).

Staff Contact: Marc Burgat

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