April 23, 2009
One such environmental policy under question is the Global Warming Solutions Act (AB32) which was signed into law in 2006. The law attempts to reduce greenhouse gas emissions through a cap and trade program. The Global Warming Solutions Act is the largest piece of environmental legislation in California history and while the plan is full of good intentions the hard reality is that AB32 is persuading California’s businesses to move elsewhere.
Under the AB32 plan the price of energy would substantially increase for big business, the average consumer and everyone else between. Implementing AB32 would cost California at least 1 percent of its state economic output according to some independent studies; this is comparable to the loss of an entire year’s economic growth. California is already suffering from budget deficits, a stagnant economy and double digit unemployment rates, and now the state wants to implement a plan that will further burden California businesses with more regulation. California must rethink its approach before additional businesses decide to relocate and the state suffers even more job losses.