When SB 32 passed in 2016, California businesses and consumers were confronted with huge costs due to the Air Resources Board command-and-control regulations created to achieve mandated and unprecedented emission reductions, even though California represents only one percent of total global emissions.

As a result, we aggressively sought reforms to create a market-based cap-and-trade program that protects the economy and lowers future cost increases for all Californians, which is the only realistic policy approach for success.

Our economy already has seen significant cost impacts from the state’s growing environmental regulations. Cap-and-trade has proven to be the most cost-effective method of reducing emissions and achieving our climate goals while protecting consumers from unnecessarily higher costs.

By approving and signing AB 398, Governor Brown and the Legislature are sending a strong message to other states and nations that critical attention must be paid to balancing the cost of climate change programs across diverse business sectors in order to help to lower costs for consumers and grow our economy.

If we do not continue to reform these programs, future costs and the unintended consequences of these policies could lead the people of California to a grassroots revolt that will pale in comparison to the Proposition 13 tax revolt of the late 1970s.

CBRT remains committed to continuing its work to balance costs and achieve emission reductions for our environment.