Ballot Initiative to Halt California Climate Change Efforts Gains Momentum

AB 32, California’s Global Warming Solutions Act, could drive some businesses to move to states that have lower regulatory costs, concluded a study from the state Legislative Analyst’s Office.

The study said that heavy energy users like aluminum, chemical and steel producers could be disproportionately affected by tighter regulation within the state.

Proponents of the measure--which requires that the state cut carbon dioxide and other greenhouse gas emissions to 1990 levels by 2020--argue it has already helped generate jobs and attracted green investment. In fact, the Legislative Analyst’s report said that the size of the state’s economy meant adverse economic impacts would most likely be “relatively modest.”

Nevertheless, a coalition called the California Jobs Initiative, made up of trade groups, politicians and advocacy groups, is pushing to get a proposition on the November ballot that would suspend implementation of AB 32 until the state’s unemployment rate declines from its current level of 12.6 percent to 5.5 percent.

Their efforts are being backed by substantial contributions from San Antonio-based refiners Tesoro Corp. and Valero Energy Corp., Los Angeles-based Occidental Petroleum Corp., and the National Petrochemical and Refiners Association in Washington.

The group recently told Bloomberg it had gathered over 800,000 signatures in support of the ballot initiative—nearly twice the required amount.

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