California business organizations have voiced concerns over the lack of progress in extending the state’s Cap-and-Trade climate program. Leaders from several industries urged lawmakers to reject any last-minute proposals, stating that there has not been enough time for a thorough and transparent legislative process.
Nearly five months ago, state officials pledged to reauthorize California’s climate law, which aims to balance economic and environmental interests. However, no comprehensive legislation was reviewed by policy committees in either chamber of the Legislature, and key stakeholders reported they were not included in discussions.
Recent state auctions of carbon allowances have generated less revenue than expected for environmental programs. Despite this outcome, there has been little movement toward a long-term plan for Cap-and-Trade.
“We are deeply disappointed by the inaction and inability to seize the moment and secure our shared future,” said California Chamber of Commerce President & CEO Jennifer Barrera. “For months, we have heard promises that issues affecting California’s affordability were at the top of the list. But this vital issue will have to wait. No proposal is better than a bad proposal.”
Lance Hastings, President and CEO of the California Manufacturers & Technology Association, commented: “California’s 34,000 manufacturers work hard to keep goods affordable, but poorly crafted policies drive up costs, and families will end up paying more. There’s no rush on Cap-and-Trade this year. Waiting allows for a transparent process that leads to better outcomes for all Californians.”
Jodie Muller, President of Western States Petroleum Association, stated: “This effort does not represent progress toward a workable solution, rather it is a major reversal for both affordability and stabilization of the oil and gas industry. With the state already experiencing leakage in real time with two announced refinery closures, this deal does nothing to create the kind of investor certainty that is necessary to ensure a reliable, affordable fuel supply for California and our neighboring states.”
Emily Rooney, President of Agricultural Council of California added: “Ag Council’s been actively engaged on cap and trade, and we were hopeful a reauthorization was within reach that emphasizes affordability for our farmer-owned businesses, which also benefits California consumers. Unfortunately, we are not there, and we are nearly out of time. It is hard to envision how the unveiling of a brand-new solution, outside of a ‘clean reauthorization’ could be workable at this late date.”
Tim Carmichael, President and CEO of California Council for Environmental and Economic Balance said: “CCEEB has long supported California’s cap-and-trade program as the foundation of the state’s climate policy. A rushed deal that raises costs for working Californians and job-creating industries should not move forward.”
