CalChamber Urges Members to Ask Governor to Veto Illegal Tax Bills

(September 10, 2012) Three California Chamber of Commerce-opposed job killer bills that will increase energy costs, including fuel prices, on consumers and businesses are awaiting action on Governor’s desk.

AB 1186 (Skinner; D-Berkeley)/AB 1532 (John A. Pérez; D-Los Angeles)/ SB 535 (De León; D-Los Angeles) all allocate funds from an illegal tax to various programs that are not necessary to cost-effectively implement the market-based trading mechanism under AB 32, the 2006 climate change law.

In opposing the bills, the CalChamber has pointed out that the California Air Resources Board (ARB) lacks authority and has been unable to justify the need to raise billions of dollars in revenue for the purposes anticipated in the bills.

ARB’s plan to impose a “cap-and-tax” will hurt jobs, and increase costs to the state and consumers. AB 32 was not intended to be a revenue source. If the state moves forward with a billion-dollar auction, the impacts on the state’s economy would be devastating.

Entities subject to the illegal tax include manufacturers, public agencies, universities, refineries, food processors and others. The impact on these entities will be severe and on top of the higher fuel and energy costs due to other climate change regulations.

Not only is an auction unnecessary for a successful cap-and-trade program, but the planned collection and distribution of auction revenues raises legal uncertainties.
Action Needed

The CalChamber is urging its members to contact the Governor and ask him to veto AB 1186, AB 1532 and SB 535.