California’s fate rests on more than this election

California’s fate rests on more than this election

October 31, 2012

By Katy Grimes

As California voters prepare to square off with several tax increase measures on next Tuesday’s ballot, the fate of California balances on a precarious cliff. But it’s not just the tax increases which could push the state over the cliff… that’s just part one.

Part Deux

The California Air Resources Board is a nefarious beast of a state agency which most people have not even heard of. It is filled with those iniquitous unelected state officials and bureaucrats we hear about, who always remain faceless and nameless. But they are a dangerous bunch.

When the Legislature passed AB 32, California’s Global Warming Solutions Act of 2006, a new era of government control and expansion was ushered in. CARB was given the authority to create strict new environmental controls over every aspect of of the lives of California residents, business and commerce.

As a result of AB 32, CARB was given the authority to create a regulation to reduce passenger car greenhouse gas emissions. But they didn’t stop there.

CARB developed strict diesel regulations; California truckers were forced to purchase new trucks at a cost of $50,000 to $60,000 more; and new passenger auto regulations are about to be ushered in.

CARB went to work developing a cap and trade program. While the rest of the country was shelving cap and trade programs and backing off of selling carbon allowances to businesses because of the drastic national economic downturn, CARB forged ahead recklessly and stubbornly.

California businesses will be forced to purchase carbon credits from CARB in order to keep doing business in California. When all is said and done, it is an environmental tax on business. Even the Legislative Analyst’s Office told the governor that cap and trade is not needed to lower greenhouse gas emissions in California.

Despite pleas from California’s diverse business and industry sector to postpone the auction indefinitely, CARB appears to be determined to conduct the first auction right after the election.

“As part of the California cap-and-trade program, CARB will hold allowance auctions and reserve sales to allow market participants to acquire allowances directly from ARB,” the CARB website says.

CARB plans to conduct the first quarterly carbon auction on November 14.

AB 32 Implementation Group

“We had expectations that at the September California Air Resources Board meeting CARB Chairwoman, Mary Nichols, would recognize that developing a regulation rule change that offered regulated stakeholders 100 percent free allowance allocations would create a win-win situation for the state’s cap-and-trade market program,” the AB 32 Implementation Group reported.

“At that meeting Chairwoman Nichols did not contemplate any changes, except for carving out a few regulated industries while ignoring the pleas of hundreds of others. Conducting the November 14th cap-and-trade auction without the benefit of 100 percent allowance allocations is going to have a grave and destructive effect on California’s regulated businesses, other business that will see and dramatic increase in their operating and energy costs and finally, most importantly, all of California’s consumers.

“Now, our only course of action is to appeal to Governor Brown,” the AB 32 Implementation Group said.

That about sums it up. California businesses are facing the final nail in the coffin should this auction go forth.

Why should we care?

Why should anyone care? The answer will be found in higher prices for everything made, grown and manufactured in California.

The cap and trade program is not about clean air or conserving California’s natural resources. CARB has turned AB 32 implementation into a tax on businesses and consumers. Cap and trade tax will make Gov. Jerry Brown’s Proposition 30 tax increase initiative look like a gift to taxpayers.

There’s a rumor goin’ round…

Rumors are discretely being whispered around the Capitol that Brown may wait until after next Tuesday’s Presidential election to announce that the CARB cap and trade auction is off.

Then again, he may act like Jerry Brown and stubbornly allow it to take place, potentially sealing California’s financial fate, unless a new presidential administration steps in and stops CARB.

Brown is a political survivor and may see the handwriting on the wall should Mitt Romney win the election.

There is a national feeling of loathing toward California because of the ridiculous liberal policies implemented over the last 50 years of Democratic rule in the state. While California used to be a national leader and trend setter, the only trend the state is setting right now is how fast Democratic policies can destroy the economy.

Can Brown be persuaded to to postpone the auction? Californians Against Higher Taxes has a video that should convince everyone, including the governor:



Write a comment
  1. Richard deSousa
    Richard deSousa 31 October, 2012, 10:03

    It gets worse for Crazyfornia. If Romney wins the election he may well stop sending money to the states because the federal treasury is empty. Crazyfornia needs the money to minimize the effect on it’s state budget deficit.

    Reply this comment
  2. r. mclain
    r. mclain 31 October, 2012, 10:19

    Global warming ended around 2002 , the antarctic and arctic ice fields are larger this yr than they ever have been. A few more really big volcanic eruptions and we could get an ice age but it wont have anything to do with humans . We’re insignificant compared to mother earth. PS I am an Earth Scientist or was , retired now. So retire the bullshit you dont need anymore control .

    Reply this comment
  3. Queeg
    Queeg 31 October, 2012, 11:50

    Your wore out….bloodshot eyes reading the polls….hoping your taxes don’t go to the moon….Brown has you on the ropes and you know it….nowhere to turn to…’s over….somehow, someway you will have to contribute to the 10 billion true deficit in California…it’s for for the kids!

    Reply this comment
  4. Hondo
    Hondo 31 October, 2012, 11:59

    Weather Mitt or Obama wins, doesn’t matter. Prop’s 30, 32, 38 don’t matter. CARB doesn’t matter. The state is outa money. The debt wall that Moonbeam talks about is here. That is why he is pushing this huge, unpopular tax increase. Trumpka has said the public unions are weaponizing. Many cities, like LA, made short term deals with the unions to get past this election.
    But the ultimate problem is that there is no more money left to steal.

    Reply this comment
  5. Bob
    Bob 31 October, 2012, 12:40

    Time to CUT the CARBs!

    Reply this comment
  6. double l
    double l 31 October, 2012, 12:40

    Smoke and mirrors, maybe that is why I’ve never been able to understand cap and trade. The only hazardous emissions in CA are from all the state agencies spewing hot air. These agencies should be held accountable just like the Business community.

    Reply this comment
  7. Bob
    Bob 31 October, 2012, 12:43

    I wouldn’t count on Brown coming to his senses or anyone else’s senses for that matter.

    Remember, with the state see depression levels of unemployment in many areas, with the taxpayers up against the economic wall old Brownie is handing out money like it’s candy for bullet trains to nowhere, for the college tuition of illegal aliens, for water stealing schemes…the list is nearly endless.

    Then he goes to CSU Chico and offers college students bribes to vote for his tax increases.

    Is this a man who has any clue as to how outraged taxpayers are? Apparently not.

    Reply this comment
  8. Ted Steele, The Decider
    Ted Steele, The Decider 31 October, 2012, 12:44

    Cap and Trade—- The darling of Uncle Ronny Raygun’s nursery..

    Reply this comment
  9. Rex the Wonder Dog!
    Rex the Wonder Dog! 31 October, 2012, 12:45

    No, Ronnie Raygun (stop copying my name sarcasm spelling too) did NOT make cap n trade, and no matter how many times you tell that lie Teddy it will still, always, be a LIE.

    Reply this comment
  10. Dave Wiltsee
    Dave Wiltsee 31 October, 2012, 14:41

    Cap and Trade will end up like the U.S. money supply in the hands of the Federal Reserve. Initially companies will live with their allotments, followed by a brief period of selective purchases of pollution “shares” to accommodate expanded production. A couple of years into the game, however, speculation will run rampant, resulting in rapid price increases for added shares. Then it will hit the fan.

    Companies will (rightly) react to the increased costs of doing business — politicians will be pressured (read bribed) to raise the cap (thus the number of total shares)— environmentalists will cry foul — and California will again be the laughing stock of the nation, while other States prosper.

    One final thought. What if private electric utility companies, faced with increased demand, simply say “We’re not about to participate in the cap and trade market; we’ll not purchase additional capacity just to generate more power. We’ll keep our power output constant, and let the free market set the rates”? Will the State force utilities to increase their capacities against their will, mandating purchase of additional pollution credits at inflated costs?

    I’ll bet CalWatchdog readers can think of many more horrific scenarios. Let’s get ’em out in the media for all to ponder.

    Reply this comment
  11. Ulysses Uhaul
    Ulysses Uhaul 31 October, 2012, 22:37

    As usual Teddy is the balanced and fair voice of reason!

    Reply this comment
  12. CalWatchdog
    CalWatchdog Author 1 November, 2012, 04:49

    Cap and trade is the creation of the brain trust at the UN to reduce greenhouse gases through investment in “green” projects in developing countries. It has directed most of its “investments” to China and India. Then it spilled over into Europe, since it was such an effective way to redistribute wealth.

    Then the UN turned its sights on the U.S. through the Kyoto Protocol, which the U.S. never signed. But the Obama administration has already agreed to a deal with the UN to lower our carbon emissions. The UN now has its sights set on extending the cap and trade system to land use and forestry, i.e. California’s new lumber tax.

    more to come… Katy

    Reply this comment
  13. Rex the Wonder Dog!
    Rex the Wonder Dog! 1 November, 2012, 10:21

    TY Katy, maybe now Teddy wil stop spinning his lies.

    Reply this comment
  14. Rex the Wonder Dog!
    Rex the Wonder Dog! 1 November, 2012, 10:27

    The father of cap and trade—- Raygunzzzzzzap!


    Center for American Progress” = Let Wing propaganda machine. Alan Bersin

    Affiliated “Scholar”!!!! That tells you all you needtot know right ther about the kook outfit e 🙂

    Reply this comment
  15. Ted Steele, The Decider
    Ted Steele, The Decider 1 November, 2012, 19:18

    Poor Poodle can’t face facts— it’s history little buddy– your pal Rayguns administration invented Cap and trade…lol


    and then this…..hmmmmm prop 30 picking up in the polls…lol….

    Zero the Poodle—- 0 for 13 ™ !

    Reply this comment
  16. Rex the Wonder Dog!
    Rex the Wonder Dog! 1 November, 2012, 20:50

    5 Days TEDDY!, Then you better have a year long supply of prozac on hand!

    The only thing left to question is by how much 30 loses -I am going with an 8-10 point loss…what say you Tedster??????

    Reply this comment

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