Originally posted on Watts Up With That?:

California State Capital in Sacramento

California State Capital in Sacramento (Photo credit: Wikipedia)

Guest post by Lorraine Yapps Cohen

California Air Resources Board (CARB) met on Thursday, May 24.  On the agenda was discussion toward deciding where and how to spend the billions raised from cap-and-trade carbon trading in the state.

At the public meeting was Betty Plowman, who attended the meeting to present a letter on behalf of the industries that CARB calls polluters, the California Construction Trucking Association (CCTA) and California Dump Truck Owners Association.  The letter describes CARB’s threats to these industries, induced by the Board’s regulations that are, in turn, based on junk science.  The letter’s signatories indicate intention to seek reparations for the regulated class under CARB’s repression in California.

CARB Chairman Mary Nichols let the clock conduct the agenda and closed the meeting at 5 p.m. before Plowman could present the letter. The world according to CARB disallows any…

View original 832 more words

California counting its carbon tax riches

Katy Grimes writing at CalWatchDog:

While the rest of the country shuns carbon trading schemes, California politicians continue to embrace the concept, and are forging ahead with a Cap and Trade carbon trading system. But eight states have dropped out of California’s Western Climate Initiative, leaving many scratching their heads in wonderment, as only California and Quebec are left alone to solve the world’s global warming and climate change issues.

But instead of being a real innovator and helping businesses sincerely lower emissions, California looks as if it is desperately clinging onto the notion that we can lead the rest of the world in controlling climate change, and behaving as a Nation State.

Why Quebec?

Cap and Trade was first concocted by the United Nations as a way to financially benefit from selling carbon offset credits. Vice-President Al Gore was already part of the Intergovernmental Panel on Climate Change, which helped seal the deal in the 1990′s through the Clinton administration’s involvement in the Kyoto Protocol, which mandated that nations reduce or offset carbon emissions.

This scheme must have been irresistible to the California Legislature, which passed AB 32, California’s Global Warming Solutions Act, in 2006. The original plan was to create a giant climate change coalition with other states and provinces from which carbon trading and taxing would emanate. But one by one, states have dropped out, citing the difficult economy and cost to manage such a program.
But not California.

“Linking with Québec is a significant advance in California’s efforts to fight climate change and steer our economy toward a clean energy future,” said CARB Chairman Mary D. Nichols. “Linking provides more options to California businesses and lays the groundwork for other partners to join with us. This sends a strong message to two national governments that now is the time to support innovation, energy efficiency and the development of clean technologies.”

But Quebec is not even a trading partner with California.

Only in California. No, only in a California run by ultra liberals.

Read the rest of Katy’s article HERE

Originally posted on Watts Up With That?:

Thousands Petition Gov. Brown To End Cap And Trade

By Amy Quinton, California Capitol Network

Californians Against Higher Taxes and business groups delivered the petitions against
what they call an illegal and hidden energy tax. The cap and trade program would
limit greenhouse gas emissions by requiring polluters to purchase pollution credits
at auction.

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Public Thugs Mug Facebook – Could Kill Jobs?

Russ Steele

I often read the Coyote Blog, Dispatches from a Small Business. Here is some interesting insight as to why job creation in CA is static.

Wow, I Wonder Why Job Creation Isn’t Occurring in California?

I wonder if its because companies have to beg for government permission, and then pay a hefty bribe, to get permission to hire more employees:

The city council in Menlo Park, Calif., is set to approve a deal that will let Facebook employ thousands more people at its headquarters there.

Mayor Kirsten Keith says officials are expected to green light the environmental impact report and the development agreement at a meeting Tuesday night. City staff has recommended the city approve the deal.

That means Facebook employees, currently numbering about 2,200 in Menlo Park, will soon be able to stretch out. If the deal is approved, Facebook will be able to employ about 6,600 workers in Menlo Park, up from its current limit of 3,600. That was the constraint on Sun Microsystems, which previously occupied the campus.

Facebook will pay Menlo Park an average of $850,000 a year over 10 years to compensate for the additional load on the city. It will also make a one-time payment of more than $1 million for capital improvements and set up community services such as high school internship and job training programs. Facebook is also creating a $500,000 local community fund that will dole out grants and charitable contributions to communities surrounding Facebook’s campus.

Facebook is making the payments because Menlo Park can’t collect sales taxes from Facebook.

The last is a dodge – this is a protection racket, pure and simple.  Presumably Facebook pays property taxes on its corporate offices, as do its employees who live nearby.  Also, these new employees will all spend money in the local economy that will generate sales taxes.  Facebook presumably pays for water, sewer, trash and other utilities, and their employees are paying gas taxes as they drive that pay for the roads.  Facebook pays California income taxes, as do their employees.  What are these mystery costs that are not getting covered?  The community services bit is a hint that this is a stick-up, with Menlo Park demanding its cut of the recent IPO.

The truth is that cities and counties in California see business expansion plans the same way that Tony Soprano looks at the Museum of Science and Trucking — as a way to maximize their skim.  I operate a campground in Ventura County that DOES pay sales taxes the County so far will not let me increase my live-in staff without making a big payment.  Even the remodeling of our store required 7 separate checks written to Ventura County agencies.

You can read the rest HERE. Reason Magazine has another story about killing jobs in Ventura County.

A Double AA Classic

From the Instapundit: Glenn Reynolds

Today, 7:16 PM

BUT THEN WHO WILL WRITE THE STORIES? AP wants to get prostitutes away from its DC bureau.

Another CA Business Escaping

Russ Steele

Just heard the news on Channel 13 KVOR, Verizon is moving its Rancho Cordova Call Center to Utah. The business exodus continues as the regulatory environment  continues to grow in California. Why wait for energy cost to go up, move before the California economic crash!

Wrangling for the AB-32 Cap and Trade Slush Fund

Russ Steele

As I have been reporting, AB-32 Cap and Trade was all about creating a tax payer supported slush fund, now our political leaders are trying to figure out how to take control of the AB-32 pig trough.

Details at KQEDz’ Climate Watch: The New Cap & Trade Battlefront: How to Spend the Revenues

AB 32 requires California’s largest emitters to meet carbon reduction targets. If a firm’s emissions are below state-mandated targets, it may auction off its remaining “allowances” to firms that exceeded their emissions targets.

Since the enactment of AB 32 in 2006, California’s greenhouse gas emissions reduction law, analysts have speculated about how to spend the money generated from the law’s cap-and-trade carbon allowance auctions, the first of which is set for this November.

On Tuesday, the State Assembly passed new legislation, AB 1532, that narrowed the options. The bill, which the California Chamber of Commerce has described as a “job killer” and an “illegal tax,” passed 47-26 and awaits action in the Senate. If ratified, it would establish a “Greenhouse Gas Reduction Account” within the state Air Pollution Control Fund and authorize spending auction proceeds on clean energy technology, low-carbon transportation, conservation and green energy research and development.

On Friday, the California Air Resources Board held a public hearing to discuss where auction funds might be spent, as a panel of speakers from across the state and country — representing a broad array of industries and interests — sounded off on where this sizable stream of new funding might be best directed.

Jim Earp, executive director of the California Alliance for Jobs, said that the funds should be spent on improvement of transit networks and infrastructure. Ellen Hanak, a fellow at the Public Policy Institute of California, suggested that a best fit is renewable energy and efficiency projects. Lester Snow, director of the California Water Foundation (and former head of Water Resources for the state), pointed to habitat restoration on the Delta and making California’s vast, energy-intensive water delivery systems more efficient.

The governor’s 2012-13 budget [PDF] also lays out a general framework for where cap-and-trade auction funds might be allocated.

    • Clean and efficient energy
    • Low carbon transportation
    • Natural resources protection
    • Sustainable infrastructure development

“These are obviously broad categories,” said air board chair Mary Nichols of the governor’s proposals in her remarks. “No one has yet suggested any precise breakdown or amounts of money to go to specific programs.”

Decisions are being made piecemeal. For instance, revenues from utilities will be returned to electricity customers, though exactly how is still being worked out.

Perhaps it’s no surprise that no one yet knows how California’s auction funds will be spent. There is still debate over whether the funds should be considered a fee or a tax — a legal determination that, under Proposition 26, could potentially limit where money is directed.

And as Climate Watch senior editor Craig Miller reported earlier this month, no one can predict with any certainty at what price carbon will trade in the California market. Most estimates put the figure at between $15 and $30 per metric ton, which means that when the market is fully up to speed in 2015 it could pull in as much as $6 billion a year. (The governor’s budget stated the program could generate as much as $1 billion in its first year.)

As for how cap-and-trade might state boost the state’s economy, Nichols pointed to a recent analysis of the Regional Greenhouse Gas Initiative cap-and-trade system, which includes ten  states in the Northeast. That program has reportedly injected $1.6 billion into the regional economy through such measures as consumer bill reductions and sales of energy efficient equipment.

The period for public comment on carbon auction funds spending (click for online comment form) is open until June 22.

Let them know how you think they should spend the Cap  and Trade Slush Fund

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