Tag: AB 32

The California Manufacturers React (There’s Disappointment)

From the California Manufacturers and Technology Association, “CA manufacturing gets a little help in state’s races and propositions:

Here’s the “GOOD” for manufacturing

  • Prop 26 passed and taxes can’t be passed as fees.
  • Prop 24 failed and a few of CA’s competitive tax policies remain.
  • Redistricting commission remains intact (Prop 20 passed and Prop 27 failed).
  • Steve Cooley still has a chance to be Attorney General (Cooley’s statement).
  • Pro-manufacturing candidates, Anthony Cannella and David Valadao, won competitive state legislative races.

Here’s the “REAL BAD”

  • Prop 23 failed, ensuring increased energy rates and other costs for all manufacturers.
  • The race for attorney general between Cooley and Kamela Harris, the San Francisco District Attorney, is headed for a full count and then a recount.

    CMTA drives home the message, one that California’s voters seem to be missing:

    With 12.4 % unemployed, more than a third of our manufacturing base gone, and the rest of the country opting to vote for private sector economic growth yesterday, California must find ways to be a competitive place to operate. For example, CA needs to join the rest of the country and exempt from sales tax the purchase of manufacturing equipment. CA also needs to reform its regulatory process by introducing independent economic analysis. Message to all manufacturers: We need your help to make our case in California in 2011!

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    Friedman and Schwarzenegger: Embrace the Regulation!

    In his New York Times column today, Tom Friedman writes about California and Initiative 0104, the California Jobs Initiative to suspend the state’s greenhouse gas emissions controls (AB 32) until unemployment falls below a certain level. Shorter column: “Regulation is good, embrace the regulation, and you can tell my brilliant argument is brilliantly persuasive because Arnold Schwarzenegger agrees with me, and I just spoke at a conference he was at, and we were both brilliant.”

    Also, Friedman finds the lefty bloggers at Think Progress to be more credible on matters of public policy than the energy companies that employ hundreds of thousands of Americans and drive economic growth in the United States. Next thing you know this enlightened, worldly columnist will claim China’s system of government is superior to the American Republic.

    Ramesh Ponnuru rebuts Friedman’s arguments at National Review’s The Corner blog, a post, “Outside Agitators“:

    That businessmen under regulatory attack organize politically to defend themselves never ceases to be a source of shock and anger to some liberals. The premise of Thomas Friedman’s column today seems to be that California has the perfect right to wreak whatever economic damage it thinks necessary outside its borders while the businessmen affected are wrong to respond–at least if they’re out of state. Judging from his repeated geographic references he’d have weaker objections if California businessmen were the ones funding the anti-regulatory campaign. Right? In general, I think state governments should have regulatory authority to their borders but not beyond them. In the case of California, I’m tempted to add an “at most” qualifier.

    The California Manufacturers and Technology Association has endorsed Initiative 0104. In a news release, the CMTA explained:

    California Jobs Initiative (AB32 Suspension) — Initiative 0104 — Support (Reasons below)
    Suspends Air Pollution Control Laws Requiring Major Polluters to Report and Reduce Greenhouse Gas Emissions That Cause Global Warming Until Unemployment Drops Below Specified Level for Full Year

    Adjusting the schedule of regulations under the state’s greenhouse gas reduction law until the California economy recovers is necessary because: (continue reading…)

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    Even Gold Tarnishes

    We post these excerpts more in sorrow than in anger.

    Jan Norman, business columnist, Orange County Register, “CEOs rank Calif. worst for business“:

    California ranks last among the states and Washington D.C. as a place to do business, according to Chief Executive magazine. It is the second year in a row that the state was given that dubious distinction.

    Such assessments are important in the interstate wrestling match for economic growth, Chief Executive notes. “High-stakes competitions for business expansion are nothing new. But with the current unemployment rate, the stakes have gotten much higher. As a result, negotiations for business expansion in 2010 will be more complex and financially significant.”

    The publication is so harsh about the California that it calls the state “the Venezuela of North America.”

    Investor’s Business Daily, “A Not-So-Golden State“:

    For those who live in California, reading the remarks of the CEOs is as eye-opening as it is depressing. For example:

    • “Texas is pro-business with reasonable regulations while California is anti-business with anti-business regulations.”

    • “California is terrible. Even when we’ve paid their high taxes in full, they still treat every conversation as adversarial. It’s the most difficult state in the nation. We have actually walked away from business rather than deal with the government in Sacramento.”

    • “The leadership of California has done everything in its power to kill manufacturing jobs in this state. If we could grow our crops in Reno, we’d move our plants tomorrow.”

    Los Angeles Times PolitiCal blog, “California counties top economic stress list

    More than half of the top 20 economically stressed counties in the country — including four of the top five — are in California. That’s according to a new list posted by the Associated Press.

    The list ranks “the 20 most economically stressed counties with populations of at least 25,000.” Topping the list was Imperial County, followed by Merced County. San Benito and Sutter counties are fourth and fifth on the list, respectively.

    Yuba and Stanislaus and San Joaquin counties also made the top 10

    To be explicit, the federal government is emulating the regulatory, tax and fiscal policies and disregard for employers that have brought California to this sad state.

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    Californians Say, Let’s Slow Down the Assault on Manufacturers

    From the good people at the California Manufacturers and Technology Association, one of the leading advocates of an initiated measure to halt implementation of the AB 32, the single-state crack down on greenhouse gas emissions, i.e., human economic activity.  The 2006 law caps greenhouse gas emissions at 1990 levels by 2020 and includes enforceable penalties.

    Gino DiCaro, CMTA’s vice president of communications, blogs, “800,000 Californians sign to put CA’s economy first and signal ‘welcome mat’ for manufacturers“:

    The campaign to suspend AB 32′s global warming regulations until California’s economy and unemployment recovers submitted double the signatures needed today to qualify the “California Jobs Initiative” for the November ballot.

    The initiative got more than 800,000 signatures, far above the 433,971 needed.  The state’s citizens understand that implementing AB 32 at the right time in the right way is not an anti-environment position.  It’s a path to improve our economy first through job growth — with high wage and ‘green’ manufacturing jobs at the center of that recovery — and a way to see if the rest of the country will follow with their own global warming mandates.  Today’s announcement makes clear that the California voters don’t want to go it alone on costly greenhouse gas reductions.

    California is losing key manufacturing jobs already — down 34% since 2001 — and the state would continue its precipitous decline if AB 32 is implemented now in a manner that is not cost-effective, technologically feasible or competitive with the rest of the country. 

    Gino reports a startling statistic: In 2000, California had one of every 16 new or expanded manufacturing facilities in the country.  In 2009, the state had 1 one of every 40. 

    California’s calamitous approach toward consumer and industrial use of energy embraces many more mistakes than just AB 32. The Institute for Energy Research recently published a new report, “Energy Regulations in the States: A Wake-up Call,” that includes state-by-state analyses of energy usage and government-imposed costs. The California’s portion of the report is available here, and the summary states:

    California is an exceptional state. California has a high per capita gross state product and high energy prices. California’s climate attracts people from throughout the country, and the entertainment industry and Silicon Valley have created great economic wealth in California. But California’s regulations have driven up energy prices, and the regulations will continue to help push up energy prices. For example, California motorists are required to use a special motor gasoline blend called California Clean Burning Gasoline, making California have the highest gasoline price in the lower 48 states. California has also enacted regulations to increase the price of energy in an effort to reduce carbon dioxide emissions. These excessive regulations will not help California’s battered jobs outlook, nor will it help California balance its budget.

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    Look on the Sunny Side? Getting Harder to Do in California

    A commentary from Jack Stewart, president of the California Manufacturers & Technology Association, commenting at the MPowered blog, “Why Not California #8: More solar companies producing elsewhere to sell to California.”

    It looks like Tennessee just attracted a $1 billion solar manufacturing facility and 500 accompanying jobs from a German solar firm, Wacker Chemie, and an Associated Press story hints that the Volunteer state put up a $50 million incentive package to recruit the high wage company.  This news adds to a previously announced $1.2 billion investment from another solar firm, Hemlock Semiconductor, looking to produce solar products in Clarksville, Tennessee

    Why is it that little old unsophisticated Tennessee can attract $2.2 billion in solar power investments and the home of solar and other green power mandates can sit and watch its unemployment numbers skyrocket to the country’s third worst rate – 10.1 percent – and leave behind an economy-altering number of manufacturing jobs.  Didn’t Gov. Arnold Schwarzenegger and then-Assembly Speaker Nunez promise that California’s global warming mandate would create tens of thousands of new green jobs in the Golden State.  And didn’t the California Air Resources Board in its economic analysis of AB 32 say that “implementing the recommended measures will have an overall positive impact on economic growth in California”?  Peer reviews shot many holes in the analysis and disputed AB 32′s “riskless free-lunch” and now we’ve seen states such as Tennessee, Oregon and Nevada begin to attract these very high wage manufacturing jobs and create hundreds of green careers for their working families.

    Could one of the main answers be that business costs are so high in California that we will never see significant green investments; that workers in other states will be the chief beneficiaries of California’s environmental mandates and that California’s brightest and best are fleeing to states that put a high priority on economic growth.  The latest cost of doing business survey by the Milken Institute finds that operating costs for California manufacturers are 38 percent higher than for their competitors in Tennessee.  Is it any wonder that investments in industries that create high wage jobs routinely bypass California.

    The climate IS changing in California, and changing for the worse. Unfortunately, it’s the business climate.

    As you might guess, Jack’s post is one of a continuing series. Here’s another: “Why Not California #7: California-based company banking on Las Vegas solar manufacturing

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