How should California address climate change post-2020?
The Legislature passed a far-reaching revision of California’s climate laws in 2016. The landmark greenhouse gas reduction policy that was adopted in 2006 will extend through 2030 and significantly tighten down on greenhouse gas emissions.
For the last 10 years, politicians, regulators and special interests have claimed success for the policy, all while writing and amending regulations, litigating, and spending money taxed from just a few obligated companies under current climate programs.
Carbon Regulation in California
California is noted nationally and internationally as a force in climate change policy—as much for its ambition and reach as for the efficacy of its policies. California is especially conspicuous in the absence of comprehensive regulation in other states or by the federal government.
In 2006, Governor Arnold Schwarzenegger and the Legislature passed a landmark statute setting mandatory greenhouse gas emission reductions. AB 32, by then-Assembly Speaker Fabian Núñez, directed the California Air Resources Board (ARB) to develop a regulation to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020, equivalent to a 30% reduction, compared to a business as usual trend.
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Monitor implementation of AB 32 climate change legislation and its impact on California businesses, including Air Resources Board (ARB) activities;
Support risk management and corporate strategies to help lessen the financial burden of climate change mitigation efforts;
Support national/global efforts that could help California businesses grow and promote their technologies/services elsewhere.
Stopped legislation in 2015 leading to fuel price increases through an arbitrary petroleum use cutback (SB 350).
Stopped proposals leading to fuel price increases, including two that increased energy costs by allocating funds from an illegal tax to various programs that are not needed to cost-effectively implement the market-based trading mechanism under AB 32, the state’s landmark climate change law.
Monitor and engage in the implementation of the Global Warming Solutions Act of 2006 (AB 32) and SB 32 (Chapter 249, Statutes of 2016) by advising the ARB and other relevant regulatory agencies about cost-effective strategies to reduce the state’s greenhouse gas emissions. Support strategies that include market incentives for industries to reduce emissions. Discourage the pursuit of future climate change legislation that would interfere with the ongoing implementation of current climate policies, increase the cost of compliance, or discourage business from locating or expanding in California. Help state lawmakers develop policies to bring new businesses to California and help employers reduce greenhouse gas emissions in the most cost-effective, technologically feasible manner.
Monitor federal climate change legislation and regulations to ensure that California will not be disadvantaged by any proposals. California’s program must be deemed equivalent to any emerging federal program and AB 32/SB 32 must not result in duplicative state and federal programs. Advocate market principles and cost-effective solutions that will help reduce emissions on a global level without discouraging investment in California. On the regional front, continue to monitor the progress of linking California’s cap-and-trade program into a regional market.
2017 Business Issues and Legislative Guide
Agriculture and Resources
California Environmental Quality Act (CEQA)
Expanding Opportunity — An Agenda for All Californians
Health Care Reform
Labor and Employment
Climate Change Bills