KTTV Vice-President and General Manager Kevin Hale takes a look at how one well-intentioned Climate Change Bill might damage the economy beyond repair in this P.O.V.
When Governor Schwarzenegger signed AB 32 six years ago, it was pre-recession. And that legislation, California's Global Warming Solutions Act, despite its good intentions, will wreak havoc on our state's economy.
The California Air Resources Board, under AB 32, recently approved the nation's first "cap and trade" system, which effectively charges the state's industries fees for emissions when they exceed a cap—in effect a tax—with the aim of curtailing California's greenhouse gases.
The bill was passed for all the right reasons but the reality is, right now we are in a down economy, and AB 32 is a business killer. It effectively will be looked at as a back door tax that will push even more California businesses to move out of state.
California, although a leader on environmental issues, cannot solve the problem of greenhouses gases alone. When AB 32 was sold to voters, the promise was that other states would follow our lead. So far, none have.
A study by California State University, Sacramento, commissioned by the California Small Business Roundtable, estimates AB 32's total cost to be more than $182 billion in lost output, raising living costs by $3,857 per household by the year 2020.
In light of these devastating numbers, I am asking Governor Brown and the legislature to put a moratorium on AB 32.
Look, we all agree that saving the environment is of the utmost importance but I believe that we should revisit this legislation when the economy improves and when other states are ready to join us.
Thanks for listening.
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