CalChamber Issues Call to Action
The California Chamber of Commerce is urging businesses to contact their legislators to express strong support for AB 398 (E. Garcia; D-Coachella). The bill, supported by CalChamber, extends California’s cap-and-trade program and provides the least costly path to achieving the state’s ambitious climate goals.
Last year California passed SB 32 (Pavley; D-Agoura Hills; Chapter 249), which adopted the most ambitious greenhouse gas (GHG) reduction goal in this or any other country.
By 2030, Californians must reduce carbon emissions by 40% below their already-constrained 2020 levels. SB 32, however, did not authorize the least costly approach to reach the 2030 greenhouse gas reduction goal.
AB 32, the 2006 landmark climate change law, set a goal of reducing greenhouse gas emissions to 1990 levels by 2020, the equivalent of a 30% reduction compared to a business as usual trend.
AB 398 creates a market-based approach of cap-and-trade, which would provide the largest GHG emission sources with more flexibility and is less expensive to consumers than the command-and-control scheme embodied in SB 32.
According to the nonpartisan Legislative Analyst’s Office (LAO), authorizing cap-and-trade beyond 2020 “is likely the most cost-effective approach to achieving the 2030 GHG target.” The LAO compared the costs of cap-and-trade with direct regulation and found mandates to be two- to 10-times more expensive than a market mechanism.
Staff Contact: Amy Mmagu