Californians Should Brace for Higher Energy Costs
Sacramento, Calif. – The California Manufacturers & Technology Association (CMTA) is sounding the alarm over proposed regulations to California’s Cap-and-Invest program (formerly known as Cap-and-Trade), warning that the proposal will significantly increase energy costs and further strain affordability. These new regulations come after manufacturers have already spent billions innovating and complying with the current program. Click here to view CMTA’s full comment letter.
“Manufacturers have warned the Legislature for years that Cap-and-Invest policies and regulations like these would drive up energy costs and make California less affordable for businesses and consumers,” said CMTA President & CEO Lance Hastings. “If these proposed regulations move forward, Californians should brace for higher costs across the board with no end in sight. There is still time to fix this. CARB and the Legislature must act before it’s too late.”
Manufacturers already face some of the highest operating costs in the nation, including rising energy, labor, logistics, and regulatory expenses. CMTA cautions that the proposed Cap-and-Invest regulations will make California even more expensive by increasing the cost of fuel, electricity, and goods produced and transported throughout the state.
Yesterday, CMTA submitted a formal comment letter to the California Air Resources Board (CARB) outlining concerns about the proposal, including potential increased compliance costs, reduced competitiveness for California manufacturers, and a greater risk of jobs and production leaving the state.
As the rulemaking process continues, CMTA is urging regulators and lawmakers to reconsider the proposal and prioritize policies that protect both California’s climate goals and energy affordability for businesses and residents.
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About CMTA
The California Manufacturers & Technology Association (CMTA) has advocated for pro-growth laws and regulations before the California legislature and administrative agencies since 1918. The total output from manufacturing in California is $382 billion per year, roughly 10 percent of the total economic output of the state. Manufacturers employ 1.2 million Californians paying wages more than $2,500 higher than other non-farm employers in the state.