Manufacturers comment on CARB's cap and trade proposal
Nov. 24, 2009 CMTA's Dorothy Rothrock issued the following response to the California Air Resources Board's cap-and-trade proposal today:
"California's global warming program must not stifle the growth of California's economy.
Manufacturers are gravely concerned that the cap and trade program will impose significant new costs on their operations in the state. For example, officials are considering a full auction of emission allowances to raise from $7 billion to $21 billion in 2020. This would act like a massive new tax on production.
California lost more than a half million high-wage manufacturing jobs over the past eight years and companies are suffering in the current recession. Manufacturers are making critical decisions about where to maintain facilities and deploy scarce capital for expansion and modernization. I am concerned that continued uncertainty about the scope and design of the program is putting a damper on job creation and investment in the state.
It is vital that CARB makes decisions about important design elements on the basis of valid economic impact analysis. AB 32 requires that regulations, including cap and trade, achieve goals related to cost-effectiveness and technological feasibility. We believe a successful cap and trade program would include a broad use of offsets, a minimal use of auctions, and seamless links with national and international programs."