Revolt stirs against ‘regulation without representation’

by CalWatchdog Staff | November 1, 2012 10:12 am

[1]Nov. 1, 2012

By Warren Duffy

America’s forefathers rebelled in 1776 against “taxation without representation.” Who now is willing to step up and stop “regulation without representation”?

On November 14, 2012, eight days after the election, the California Air Resources Board will launch[2] the first ever Carbon Credit Auction implemented by their Cap and Trade scheme. This is a program with overreaching regulations already being felt throughout the state.

Although the first waves of the Cap and Trade program have begun, the first carbon credit auction will give the state government its biggest bite ever into our state’s economy and strengthen the implementation of California’s strict enforcement, beginning Jan. 1, 2013, of the Cap and Trade program deriving from AB 32, the Global Warming Solutions Act of 2006[3].

All California businesses that have not already fled the state will be passing onto consumers the higher costs forced on them through these regulations and the necessity to “play and pay.” If a business is unable to meet CARB’s demands, it will have no choice but to close its doors.

California consumers will feel the impact at the grocery store, retail stores, construction projects and the gas pump. On April 25, 2012, the California Trucking Association issued a report, “The Impact of the Low Carbon Fuel Standard and Cap and Trade Programs on CaliforniaRetail Diesel Prices[4].” The news from the report is shocking:

“CTA estimates that the combined effect of the two programs [Low Carbon Fuel Standard and Cap and Trade] could increase California-only retail diesel prices by $2.22 a gallon by 2020.” That means the price of a gallon of diesel oil will rise by 50 percent in our state, to $6.69 a gallon by 2020.

The report goes on to predict:

“The average price difference between California and neighboring states … will make California a less attractive destination for containerized imports from the Pacific Rim and reduce economic benefits, employment income and state and local taxes generated by that import trade.”

Many family-owned trucking businesses have already driven into the junkyard.

If the California Trucking report is not grim enough, an account[5] submitted by Varshney & Associates for the California Small Business Roundtable details some sobering statistics concerning AB32.

Remember, AB32 is California’s landmark legislation to address global warming and  the reduction of green house gas emissions to 1990 levels by 2020.  That’s a 25 percent reduction. Accomplishing that goal meant, according to the Varshney study, the development of “a California cap-and-trade program that links with other Western Climate Initiative partner programs to create a regional market system.” Enter the auction of “carbon credits.” However, WCI has evolved to be much more[6].

Varshney’s report clearly explains:

“Legislative and regulatory mandates may result in practices, enact policies that raise the costs of operating for small business or provide a deterrent to small business growth, and hence provide disincentives for economic risk taking and entrepreneurship.” 

Fees and costs

Following that framework, fees have been established, including CARB’s administrative costs for forcing these regulations down the throats of California businesses and consumers.  And when it comes to consumers, the report notes that these increased costs mean, “[E]ither that they must spend more if they have the funds available or reduce their expenses in other areas.”  If reducing expenses, “[T]hey must reduce expenses by nearly 26.2 percent.”

Another skeptical review of AB 32 comes from Stephen Moore of the Wall Street Journal, who said, “[T]he negative impact [of AB32] has been underestimated while the benefits have been exaggerated. Other states are suggesting that business owners move their businesses out of California before the ‘cap-and-trade earthquake hits.’”

California has indeed been “quaking” since AB32’s tentacles began strangling businesses, yet our state legislature appears incapable or disinterested in stopping CARB.  Businesses have pleaded to CARB Director Mary Nichols at meeting after meeting and California citizens have blanketed Gov. Jerry Brown’s office with petitions — all begging for Cap and Trade to be stopped.

Although AB32 allows the governor to delay Cap and Trade for one year during a period of poor economic conditions, all appeals have been ignored. Why? CO2 levels have dropped[7] to the lowest in 20 years without Cap and Trade. Now is the time to readdress the fundamental need for Cap and Trade.  If the Carbon Credit Auction is not stopped before November 14, California’s economy will encounter a seismic shift of catastrophic proportions.

A revolt is brewing against this “regulation without representation.” One group fighting Cap and Trade tyranny is Friends for Saving California Jobs,[8] where I serve on the Board of Directors[9].

If interested in contributing to the new revolt, email: [email protected][10].

 

 

Source URL: https://calwatchdog.com/2012/11/01/revolt-stirs-against-regulation-without-representation/

---