Calif. Gov. Jerry Brown signs climate change law extending cap-and-trade for 10 years

Today California Governor Jerry Brown thumbed his nose in the direction of President Trump, and signed legislation extending California’s Cap-and-Trade program and defining certain non-vehicular emissions as air pollutants and toxic air contaminants.   Well, he didn’t actually thumb his nose, but by taking this step California is taking a strong stand in support of Climate Change action.  Since the Trump Administration came to power the agenda in Washington DC has been to see how much damage can be done to environmental and climate protections.  In light of that, Governor Brown (along with other Governors) has talked strongly about how California (and other states) would keep on with addressing Climate Change problems.

For example, Gov. Brown attended the G20 meeting to strongly say that Trump doesn’t speak for all of the USA on certain issues like Climate Change action.  By passing these laws and signing them into law, California and Gov. Brown are reiterating this stand.

The two laws signed today are:

• AB-398 California Global Warming Solutions Act of 2006: market-based compliance mechanisms: fire prevention fees: sales and use tax manufacturing exemption.
• AB-617 Nonvehicular air pollution: criteria air pollutants and toxic air contaminants.

In other words, the one extends the Cap-and-Trade bill signed by Gov. Schwarzenegger 10 years ago, and the other establishes standards for environmental and climate pollution.  Schwarzenegger, a Republican, worked with Gov. Brown on passage of the bill, and was at the signing ceremony.

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According to the Sacramento Bee, Schwarzenegger blasted Republicans for “lying” to the public on Climate Change.  When he won passage of AB32, there were grave fears that climate change action would harm California’s economy.  Instead this state is booming in part due to companies that now exist in the clean energy industry.   Schwarzenegger is quoted saying“Don’t those conservative Republicans get the message? And can’t they just think about it for a second and say, ‘maybe we should stop lying to the people.’ Stop lying to the people! Stop it,”  And,“I think this is a very important message for Washington, where both of the parties can not work together, to hopefully learn something from this – because all great things happen when both parties work together.”

A broad coalition of organizations have come out in support of this legislation.

Environmental, Climate and Public Health Leaders

American Lung Association in California Senior Director, Air Quality and Climate Change Bonnie Holmes-Gen: “This critical two-bill package will accelerate California’s clean air and climate leadership.” – “This critical two-bill package will accelerate California’s clean air and climate leadership. The bills help move our state forward to meet our 2030 climate target while improving air quality in the most impacted communities throughout California. Local air quality and climate pollution must be tackled at the same time, and these bills provide the tools to make this happen, particularly in disadvantaged communities… The American Lung Association urges an “aye” vote on AB 617 and AB 398.” (7/14/17)

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Natural Resources Defense Council California Climate Project Legal Director Alex Jackson: “The legislation represents a big step forward to continue California’s global climate leadership.” – “The legislation represents a big step forward to continue California’s global climate leadership…on balance the package ensures our emissions limits are enforceable against polluters and secures critical gains to improve air quality for millions of Californians. The world is watching for California to chart a path through the climate denial and obstruction coming from the White House – and California is yet again poised to deliver.” (7/11/17)

Environmental Defense Fund Director for California Climate Quentin Foster: “We strongly support AB 398 and AB 617.” – “Getting to a 2/3 vote is never easy and this legislation is the product of a concerted effort by multiple partners to find common ground. EDF has contributed to this process and we strongly support AB 398 and AB 617. This package ensures the signature feature of the cap-and-trade program remains in place: a cap that places a firm limit on carbon pollution and holds the state accountable for achieving the climate targets set in law. EDF urges legislators to act quickly to vote for this important package. Passing these bills demonstrates that our state is committed to achieving a stable climate, improving local air quality, and cementing California’s place as a global leader. Reducing climate pollution will benefit all Californians, especially the most vulnerable. Ten years of climate action in California has shown that we can create environmental, economic, and public health benefits at the same time. It’s time for California to act.” (7/10/17)

Union of Concerned Scientists California and Western States Director Adrienne Alvord: “The bills will help us dramatically lower carbon emissions while aggressively reducing air pollution and maintaining a strong economy.” – “The bills will help us dramatically lower carbon emissions while aggressively reducing air pollution and maintaining a strong economy. In addition, AB 398 keeps intact the renewable energy, clean car and clean truck programs that require direct emissions reductions from the transportation and energy sectors. The policies in AB 398 and AB 617 include a cap on global warming polluters, a substantial cut on offsets, protection for billions of dollars for community and clean energy investments, enhanced fence-line pollution monitoring and enforcement, increased penalties for pollution indexed to inflation, and enhanced protection for great programs that directly reduce air and global warming pollution like the Sustainable Freight Action Plan, Low Carbon Fuel Standard and Clean Cars plan. Without this bill package, we have no guarantee we can achieve any of these things…these two bills as they stand today are critical to making sure we meet our 2030 emissions reductions goal.” (7/14/17)

NextGen Climate President Tom Steyer: “We applaud Governor Brown and the Legislature for moving the state forward with these bills.” – “Polluters have gotten away with poisoning the air we breathe and the water we drink in California for far too long. This bill will force polluters to take long-overdue steps to clean up their act or pay the price for polluting our air–especially in our most vulnerable communities. AB 617 is a major step forward that will help safeguard clean air for all Californians. A robust cap-and-trade program is critical to California’s future, and AB 398 makes it clear California will continue to lead in creating solutions to the most serious global challenge in human history–climate change…it exacts significant concessions from Big Oil as well. It requires them to reduce their pollution and, importantly, it shows the rest of the world that, after decades of denial, even the oil corporations now accept the urgent need for innovative solutions to climate change. We applaud Governor Brown and the Legislature for moving the state forward with these bills. We will continue to fight for the strongest possible program to grow California’s clean energy economy, safeguard the environment and protect our clean air and water.” (7/11/17)

League of Women Voters of California; Union of Concerned Scientists; NextGen Climate; Audubon; American Lung Association in California; Conservation Corps of Long Beach; California League of Conservation Voters; Environment California; Natural Resources Defense Council; Environmental Defense Fund; The Nature Conservancy; Pacific Forest Trust; Global Green; and Climate Resolve: “Support Climate and Air Quality. Vote yes on AB 398 and AB 617.” – “Support Climate and Air Quality. Vote yes on AB 398 and AB 617. Extends and Reforms Cap-and-Trade (AB 398, E. Garcia)…Improves Air Quality (AB 617, C. Garcia, E. Garcia, Santiago)…Retains regulators’ authority to protect public health…Importantly, the bills: Preserve air district authority to regulate all other air pollutants besides CO2 (which is already regulated by the cap), including toxic and criteria pollutants and short-lived climate pollutants; Preserve ARB’s authority to extend and ratchet down existing direct measures on the oil industry like the Low Carbon Fuel Standard (LCFS) and methane rules; Require ARB to achieve ton-for-ton emissions reductions if the cap is breached at the ceiling price to make the cap “whole.” (7/14/17)

Former U.S. EPA Administrator and Center for Climate and Energy Solutions President Gina McCarthy: “A quick and positive vote from the state Legislature to extend its historic cap-and-trade program will be a critical leap forward for our country.” – “We applaud California’s leadership for positioning the state to reduce its greenhouse gas emissions to 1990 levels by 2020. A quick and positive vote from the state Legislature to extend its historic cap-and-trade program will be a critical leap forward for our country. At a time when federal leadership is taking a nap on climate action, this extension will send a clear signal to other countries that the American people are not asleep and we are not powerless. States, cities and companies are taking the lead. California’s cap-and-trade program successfully marshaled market forces to invest in low-carbon solutions. It drove innovation, created jobs and cost-effectively reduced emissions while generating revenue to improve air quality for its most vulnerable populations. By extending the program, California will again show the world a low-carbon future is possible in the absence of federal leadership. We can and must meet our obligation to provide our children a healthy, stable and bright future.” (7/13/17)

Audubon California Director of Public Policy Mike Lynes: “We urge our state leaders to continue to show that smart climate policy is good for people, wildlife, and the economy.” – “Audubon California supports Assembly Bills 398 and 617. With the Trump Administration completely abandoning any effort to address the climate change crisis, the State of California must lead on this vital issue to both birds and people…We urge our state leaders to continue to show that smart climate policy is good for people, wildlife, and the economy. These two bills are the result of tough negotiations in the Legislature and compromise, but we understand that they represent the necessary next step in California’s effort to rise to the challenge of climate change…California once again has an opportunity to lead the nation and show how a state can successfully address climate change without sacrificing a thriving economy.” (7/12/17)

The Nature Conservancy California Director of External Affairs and Policy Jay Ziegler: “The continuity of California’s Cap-and-Trade program is essential for California’s economic and environmental future.” – “The Nature Conservancy has consistently supported actions to establish California’s 2020 and 2030 greenhouse gas (GHG) reduction goals. Today, we announce our support for Assembly Bills 398 and 617 as the only viable path to continue California’s global leadership in addressing climate change….At this moment, the continuity of California’s Cap-and-Trade program is essential for California’s economic and environmental future. This legislation is critically important to combat climate change and build confidence in the US and international community that climate action is a catalyst in the transition to a low carbon future. We urge the legislature to approve AB 398 and AB 617 immediately.” (7/11/17)

Environment California State Director Dan Jacobson: “We support AB 398, and we believe that AB 617 is a complementary step in the right direction to improve air quality.” – “We need to do all we can to reduce climate pollution on the fastest possible timeline. California’s cap and trade program is one tool in the state’s toolbox and it needs to be continued in order to help California reach our commitment to reduce global warming pollution 40 percent by 2030. For this reason, we support AB 398, and we believe that AB 617 is a complementary step in the right direction to improve air quality.” (7/12/17)

Oregon House Energy and Environment Committee Chair Representative Ken Helm and Senate Environment and Natural Resource Committee Chair Senator Michael Dembrow: “California’s leadership to date means smaller states such as ours can more readily and cost-effectively adopt similar systems and link together.” – “We write in support of your determined efforts to extend California’s cap and trade program under AB 32. Oregon is positioned to be the next state to adopt a similar carbon pricing program that is designed to join the regional trading system, but we need the certainty that California remains committed to its pioneering program beyond 2020…As the anchor of North America’s regional carbon trading system, California’s leadership to date means smaller states such as ours can more readily and cost-effectively adopt similar systems and link together. This regional approach can extend a carbon price across most of the West Coast, serving as an inspiring model for other states to replicate and similarly benefit from…If you are not able to secure an extension of California’s cap and trade program before your 2017 session wraps up, it could seriously hamper our 2018 efforts. We fear a delay will erode confidence here in the likelihood of a strong regional marketplace to join and could squander much of the momentum we have been building in Oregon. The certainty of a long-term extension of your state’s pioneering program will be instrumental to Oregon’s efforts to put a price on – and reduce – climate pollution, while reinvigorating our local communities through clean energy investments.” (7/12/17)

United Nations Framework Convention on Climate Change (UNFCCC) Executive Secretary Patricia Espinosa: “Thank you…for…moving to extend California’s cap-and-trade system.” – “Thank you Governor Jerry Brown for your inspiring climate leadership, moving to extend California’s cap-and-trade system.” (7/12/17)

Mission 2020 Convener, Under2 Coalition Global Ambassador and Former United Nations Framework Convention on Climate Change (UNFCCC) Executive Secretary Christiana Figueres: “California continues to lead the way with new legislation to cut air pollution and extend cap-and-trade.” – “California continues to lead the way with new legislation to cut air pollution and extend cap-and-trade. Extend it now.” (7/11/17)

Newspaper Editorial Boards

San Diego Union-Tribune: “Greenhouse-gas emissions reduction: inaction not an option.” – “Brown has the support of the Legislative Analyst’s Office because cap-and-trade — or at least a better version of the state’s program — could play a key role in helping the state meet its goal of reducing greenhouse-gas emissions in 2030 by 40 percent from 1990 levels. For the same reason, The San Diego Union-Tribune Editorial Board offers its support as well…” (“Greenhouse-gas emissions reduction: Inaction not an option,” (6/30/17)

Sacramento Bee: “No one gets everything, and everyone gets something. That’s called compromise. It’s how reasonable policy gets done.” – “But bills headed for votes this week contain important elements worthy of support…Legislators last year approved Senate Bill 32, which set the ambitious goal of reducing greenhouse gas emissions in California to 40 percent below 1990 levels by 2030. Knowing that reaching such levels will be tough, the governor, legislators and others who fashioned the proposal sought to limit economic disruption…In Brown’s proposal, no one gets everything, and everyone gets something. That’s called compromise. It’s how reasonable policy gets done.” (“Here’s why to support Jerry Brown’s cap and trade deal,” (7/12/17)

Modesto Bee and Merced Sun-Star: “A cap and trade deal worth supporting.” – “If Gov. Jerry Brown’s cap-and-trade deal can help us reduce the number of kids suffering from childhood asthma, if it can give our communities help in cleansing the haze from our air, if it can help make the climate even a little cooler, then we’re willing to support it… It’s got something for everyone, but no one gets everything they want…Many people around here don’t like the “crazy train,” but we believe in it. Making commutes to the Bay Area more convenient – which it will do – is a good idea. If the governor doesn’t have the train on the right track before leaving office, it could well be derailed.” (“A cap and trade deal worth supporting,” (7/12/17)

San Francisco Chronicle: “For California to abandon the cap-and-trade program would mean abandoning our commitment to the rest of the world and our own future generations.” – “With the Trump administration’s shortsighted decision to pull the United States out of the Paris climate accord, it’s up to California to lead the battle against global warming. We can’t do that without extending our cap-and-trade market, the crucial mechanism for limiting California’s overall greenhouse gas emissions…The stakes for these bills could not be higher, and that’s reflected in the length and contentiousness of Sacramento’s negotiations. The result — a delicately balanced package that threads the needle between the demands of many affected parties — is, by its nature, a compromise. Yet the alternative is unthinkable. For California to abandon the cap-and-trade program would mean abandoning our commitment to the rest of the world and our own future generations. The Legislature must pass AB398 and AB617.” (“Legislature must focus on the big picture for climate change,” (7/12/17)

Los Angeles Times: “The package strikes the right balance: tackling dirty air at home while continuing a proven program to cut global greenhouse gases without slowing economic growth.” – “…Failure would have repercussions for both the state’s and the world’s efforts to combat global warming. That’s why Brown has been pushing so hard to extend the state’s cap-and-trade program, which is set to expire in 2020. The program is a market-based system that gives companies an incentive to cut emissions without dictating how they meet the state limits, which tighten over time. And it’s among the cheapest options for California to reduce greenhouse gases, which helps keep down the costs for companies and consumers…The package strikes the right balance: tackling dirty air at home while continuing a proven program to cut global greenhouse gases without slowing economic growth…But, ultimately, Brown was right to compromise in pursuit of the larger goal. California has stepped up to help lead to fight to slow global warming, and the state must have a workable, affordable program to fulfill its ambitious yet much-needed climate goals.” (“For the sake of the planet and our state, extend California’s cap-and-trade program,” (7/13/17)

San Jose Mercury News and East Bay Times: “Unite behind Brown’s greenhouse gas plan.” – “No one will come away completely happy. But this is what is politically possible. There might be more negotiating to round up support before Monday’s scheduled vote in the Legislature. But, in the end, it’s critical that California extend the cap-and-trade program another decade, to 2030. California has to remain a leader in the push to reduce emissions that cause global warming. Other nations, including China, are watching this experiment. We can’t afford failure, especially since President Trump has abdicated United States leadership on the issue…We can’t let the perfect become the enemy of the essential…It’s time to come together, for the sake of the state, the nation and the world.” (“Unite behind Brown’s greenhouse gas plan,” (7/14/17)

Clean Energy and Technology Leaders

Former U.S. Department of Energy Assistant Secretary for Policy Susan Tierney; Zichal, Inc. President and Former Climate Adviser to President Obama Heather Zichal; and Ceres CEO and President Mindy S. Lubber: “Extending – Not Ending – California’s Cap-and-Trade Program Beyond 2020 Is The Right Next Step.” – “California’s cap-and-trade program is working. Since it was launched in 2013, the system has helped drive down greenhouse gas emissions, while the state’s economy has flourished. The billions of dollars the program generates have funded ‘climate credit’ payments to electric utility customers, low-carbon transit projects, and home weatherization improvements in low-income communities…Extending – not ending – California’s cap-and-trade program beyond 2020 is the right next step. It will offer needed certainty for the state’s long-term GHG emission targets and for the private sector to continue investing in low-GHG solutions. Doing so will help to create jobs in California as it continues to lead in clean-energy innovations…With the Trump Administration walking back from global climate commitments, the importance of California’s leadership has only become all the more crucial. Policymakers, companies and responsible members of civil society here and abroad are all watching what happens in the Golden State. By preserving its history-making cap-and-trade program, California can once again show the world how progress is made possible.” (7/12/17)

Advanced Energy Economy CEO Graham Richard: “By extending cap and trade, the legislature can keep the momentum going for jobs and the economy.”– “We applaud Governor Brown, Speaker Rendon, and Senate President Pro Tem De León for this proposal. By extending its effective cap-and-trade program, California will continue to lead on transforming our energy infrastructure to secure, clean, affordable sources while driving economic growth. Today’s advanced energy industry supports more than half a million jobs in the state. By extending cap and trade, the legislature can keep the momentum going for jobs and the economy.” (7/11/17)

Environmental Entrepreneurs (E2) Executive Director Bob Keefe: “Passing this legislation would also be good for our economy, providing much-needed certainty for California’s clean energy businesses, investors and the nearly half-million Californians they employ.” – “The legislation sponsored by Sen. Eduardo Garcia, D-Coachella, and backed by Gov. Brown is good for our environment. It will extend California’s landmark carbon pollution program through 2030, and also addresses critical local air quality issues throughout the state. But passing this legislation would also be good for our economy, providing much-needed certainty for California’s clean energy businesses, investors and the nearly half-million Californians they employ. California knows better than any place that taking action on climate change is good for our economy and our environment…About $1.2 billion in funding generated by California’s cap-and-trade program has been put to work in communities across the state, much of it to low-income areas. State lawmakers would be wise to keep those clean energy jobs and local investments in mind as they consider cap-and-trade legislation. The world is watching.” (7/13/17)

U.S. Green Building Council Pacific Regional Director Brenden McEneaney and Technical Policy Director Jeremy Sigmon: We “support confirming a swift extension of California’s cap-and-trade program.” – “On behalf of the U.S. Green Building Council (USGBC), a non-profit organization with 12,000+ member companies nationwide, and our strong community in California, we write you to support confirming a swift extension of California’s cap-and-trade program beyond 2020…California’s current cap-and-trade program has provided essential funding to ensure that we can address the state’s housing affordability crisis and the global climate change crisis at the same time – all while providing our most vulnerable citizens with healthy, efficient homes and creating jobs for the future economy.” (6/27/17)

Ceres Director of California Policy and Partnerships Kirsten James: “Climate leadership is good for business and the economy, and we strongly encourage California lawmakers to pass the proposed bill advancing Cap-and-Trade.” – “At a time of tremendous business uncertainty in the United States due to federal policy changes, we commend California’s continued climate change leadership, and the move to improve the Cap-and-Trade Program in a manner that provides critical price signals and certain and quantifiable greenhouse gas emission reductions. Companies and investors within our networks know that climate leadership is good for business and the economy, and we strongly encourage California lawmakers to pass the proposed bill advancing Cap-and-Trade. This program, along with important direct emission reduction rules like the Low-Carbon Fuel Standard, ensures that California’s economy will continue to grow, spurring business and job generation across the state.” (7/11/17)

Bloom Energy Regulatory and Government Affairs Senior Director Erin E. Grizard: “The bills send a clear market signal that the State will achieve reductions of greenhouse gases and criteria air pollutants.” – “Bloom Energy (Bloom) supports AB 398 (E. Garcia) and AB 617 (C. Garcia), bills that when taken together provide a comprehensive approach to addressing both climate change and air quality. The bills send a clear market signal that the State will achieve reductions of greenhouse gases and criteria air pollutants. In providing policy certainty and a timeline, business and the market will be able to innovate and drive toward solutions…With AB 398 and AB 617, we will ensure that California continues to be not only the thought leader, but the State that drives the invention and deployment of the innovative technologies that are the solution in California and around the world.” (7/12/17)

Bioenergy Association of California; TechNet; Mission:Data; East Bay Economic Development Alliance; Prospect Silicon Valley; Los Angeles Cleantech Incubator; Aemetis, Inc.; Bridgely; Renewable Energy Group, Inc.; Clean Tech Open; Utility API; Verdafero, Inc.; and Volta Charging: “We urge your support of AB 398 and AB 617” – “We urge your support of AB 398 and AB 617, legislation extending California’s cap and trade program to continue the state’s leadership in reducing greenhouse gas emissions and achieving more effective monitoring and control of criteria and toxic air pollutants in communities that have suffered disproportionately from air pollution. We applaud this legislation’s prioritization of climate and clean energy research, as well as the recognition that funding is needed for priorities like reducing air toxics, expanding low-and zero carbon transportation alternatives; promoting healthy forests, sustainable agricultural practices and urban greening; and supporting climate adaptation and resiliency.” (7/14/17)

California Natural Gas Vehicle Coalition; California Biodiesel Alliance; Biogenergy Association Of California; Clean Energy Fuels; Pacific Ethanol, Inc.; NGVAmerica; Calgren Renewable Fuels; Aemetis, Inc.; American Biogas Council, The Coalition for Renewable Natural Gas; and California Hydrogen Business Council: “The clean fuels and vehicles industries strongly support AB 398 and AB 617” – “The clean fuels and vehicles industries strongly support AB 398 and AB 617. [This legislation”> extends the ability for California to continue using Cap and Trade to reduce greenhouse gas emissions 40% below 1990 levels by the year 2030…Vote yes on AB 398 / AB 617.” (7/14/17)

California Biomass Energy Alliance Executive Director Julee Malinowski Ball: “Together these bills are valuable tools in accelerating emission reductions in the state that target the most economically and environmentally vulnerable regions.” – “The California Biomass Energy Alliance (CBEA), representing California’s existing biomass energy facilities producing clean renewable energy in 20 counties throughout state, support AB 398 and AB 617. Together these bills are valuable tools in accelerating emission reductions in the state that target the most economically and environmentally vulnerable regions and extending and enhancing California’s cap and trade program to assure the state meets the deep reductions required by SB 32 without causing undue impacts to California’s consumers and businesses…CBEA believes AB 398 and AB 617 are an appropriate and valuable means to continue GHG emissions reductions post-2020 in the most economic and environmental manner.” (7/13/17)

Imperial Irrigation District; California Low Carbon Fuel & Energy Coalition; Calpine Corporation; and Controlled Thermal Resources: “We applaud your leadership and dedication to accelerating emission reductions in the state that target the most economically and environmentally vulnerable regions and extending and enhancing California’s cap and trade program to assure the state meets the deep reductions required by SB 32 without causing undue impacts to California’s consumers and businesses.” – “A coalition of renewable baseload interests, including geothermal and biomass generators, agricultural interests and growers, forest interests, environmental and Central Valley environmental justice groups, business groups, and the Imperial Irrigation District (IID) support AB 398 (E. Garcia) and AB 617 (C. Garcia). We applaud your leadership and dedication to accelerating emission reductions in the state that target the most economically and environmentally vulnerable regions and extending and enhancing California’s cap and trade program to assure the state meets the deep reductions required by SB 32 without causing undue impacts to California’s consumers and businesses.” (7/12/17)

Business Council for Sustainable Energy President Lisa Jacobson: “Extending the cap and trade program would provide continued policy certainty to the business community and accelerate climate-friendly investment in the state.” – “On behalf of the Business Council for Sustainable Energy, we commend the release this week of AB 398 and urge the legislature to swiftly act to extend the cap-and-trade program…The Council has long supported market-based approaches to addressing climate change and applauds California’s leadership in developing a cap and trade program to reduce greenhouse gas (GHG) emissions. Extending the cap and trade program would provide continued policy certainty to the business community and accelerate climate-friendly investment in the state. Further, California’s leadership on climate change sends strong market signals to other states and localities that are increasing their engagement in climate mitigation and adaptation policy and investment. By providing opportunities to link California’s program with other U.S. states and Canadian provinces, extension of California’s program could facilitate linked carbon reduction goals and markets throughout North America. This leadership is needed now more than ever as federal efforts are stalled.” (7/6/17)

Researchers and Economists 

Legislative Analyst’s Office: “Without a market-based approach, the state would likely have to implement more costly policies.” – “We recommend the Legislature authorize cap-and-trade…beyond 2020 because it is likely the most cost-effective approach to achieving the state’s 2030 GHG emissions target…Without a market-based approach, the state would likely have to implement more costly policies.” (2/13/17)

Center for Climate and Energy Solutions President and Former Deputy U.S. EPA Administrator Bob Perciasepe: “Failure to extend the program would send a signal across the U.S. and globally that this type of program does not work, which would be false.” – “As a climate focused think-tank, C2ES has a long history supporting market-based policies to address climate change. We congratulate you on the introduction of AB-398, which extends California’s precedent-setting cap-and-trade program. We believe this bill, along with the companion bill AB-617, demonstrate how to address both the climate challenge beyond 2020 and local air quality concerns. California’s steadfast determination to address climate change is a model for the country, as is its well-designed cap-and-trade program. Cap and trade ensures that the state’s aggressive goals are met cost effectively. Failure to extend the program would send a signal across the U.S. and globally that this type of program does not work, which would be false. Cap and trade ensures that the state’s aggressive reduction target will be met. It also provides an incentive to invest in low-carbon technology, drives innovation, creates jobs and generates revenue. How to use any revenue is always contentious, but AB-398 lays out options that will help reduce greenhouse gas emissions and other types of pollution and ensure that vulnerable populations are protected. California has demonstrated that an economy-wide cap-and-trade program can work. You are once again showing the world how progress toward a low-carbon future is possible. We strongly support a yes vote on this bill.” (7/12/17)

Next 10 Founder F. Noel Perry; UC Berkeley Center for Labor Research and Education Associate Director Betony Jones; and UC Berkeley School of Law, Center for Law, Energy and the Environment Director of Climate Programs Ethan N. Elkind: Cap and trade means “net positive economic effects” for Inland Empire, San Joaquin Valley – “California legislators are on the verge of voting whether or not to extend the state’s cap-and-trade program — one of the policies critical to meeting the state’s long-term climate change goals. As they debate the measures, they should be aware of the economic and job impacts of cap and trade in the state’s most environmentally and economically challenged regions…Our forthcoming report on the Inland Empire and recent report on the San Joaquin indicate cap and trade’s net positive economic effects for these regions…we found in the Inland Empire, the program had net economic impacts of $25.7 million, $900,000 in tax revenue and net employment growth of 154 jobs. These net benefits do not account for funds that have been appropriated but have not yet been spent. Since only about one third of appropriated funds have so far been spent on projects in these regions, the positive impacts will only grow. When we account for the expected benefits after all funds collected are reinvested in projects, the net economic benefit reaches nearly $123 million, with 945 jobs created and $5.5 million in additional tax revenue. We found even greater net positive impacts in the San Joaquin Valley, totaling $202 million in economic activity, along with $4.7 million in state and local tax revenue. The program also created 1,612 net jobs in the Valley. When including expected benefits after all funds collected are reinvested in projects, this figure balloons to nearly $1.5 billion in economic benefits. These projects will create 7,400 total jobs, including more than 3,000 direct jobs in the San Joaquin Valley.” (7/12/17)

London School of Economics and Political Science Grantham Research Institute on Climate Change and the Environment Chair Professor Lord Stern of Brentford: “I hope that California’s lawmakers will recognise the important role that the cap-and-trade program can play in securing a prosperous future” – “California’s cap-and-trade system is highly regarded in many other countries because its design has taken into account the lessons that have been learned from older schemes, such as the European Union Emissions Trading System. California has also shown leadership in garnering efficiencies by linking its cap-and-trade program with schemes in other geographies. California is showing the way to a much stronger, more attractive and sustainable pattern of growth. It is also demonstrating to the world that there is a clear commitment in the State to the modern way of doing things, thus greatly enhancing the confidence necessary for investment and economic growth. California is demonstrating that growth must be founded on investments in the clean and modern technologies of the 21st century, not the dirty and outdated methods of the 19th century. I hope that California’s lawmakers will recognise the important role that the cap-and-trade program can play in securing a prosperous future.” (7/17/17)

Georgetown Climate Center Executive Director Vicki Arroyo: This legislation “represents a bold new initiative that protects the interests of people and communities overburdened by pollution while meeting the global challenge of climate change.” – “State leadership has never been more important on climate and clean energy issues. California has always been at the forefront of reducing emissions while leading on innovation and growing its economy. In doing so, California not only ensures a healthy environment and vibrant economy for all of its citizens, but serves as a model for other jurisdictions around the country and the world. The legislative package developed by Governor Brown, Senate President de Leon and Assembly Speaker Rendon represents a bold new initiative that protects the interests of people and communities overburdened by pollution while meeting the global challenge of climate change. There is no time to lose.” (7/13/17)

Rhodium Group Partner and Climate Impact Lab Co-Director Trevor Houser: “The Legislature has the opportunity to help keep international climate action on track and build a more equitable environment for the state both now and in the future.” – “If local air pollution is California’s biggest environmental justice issues today, global climate change will likely be the biggest in the future. A pair of bills introduced by Governor Jerry Brown, Senate President Pro Tempore Kevin De León and Assembly Speaker Anthony Rendon would help make progress on both. The first, AB 617, would help California communities disproportionately impacted by air pollution today through improved monitoring and tougher enforcement. The second, AB 398, would extend California’s landmark cap-and-trade program…it will help slow the pace at which the climate is changing and thus improve public health and environmental equity in the future…With President Trump’s decision to withdraw from the Paris Agreement, California climate leadership is more important than ever. If the agreement is successfully implemented, climate-driven increases in California mortality rates could be reduced by more than two thirds. The state’s coastline, infrastructure, farmland, livestock, energy system and ecosystems will also be much less at risk…the legislature has the opportunity to help keep international climate action on track and build a more equitable environment for the state both now and in the future.” (7/16/17)

Energy Innovation Director of Research Chris Busch: Energy Innovation’s analysis finds “AB 398 will generate over $26 billion in new revenue through 2030.” – “This agreement would not only extend the world’s strongest cap-and-trade program beyond 2020, it would generate billions in new investment to reduce emissions while requiring stricter use of carbon offsets under the system. Energy Innovation’s analysis finds adopting this legislation should ensure that all carbon allowance auctions between now and 2020 fully sell out of available allowances, generating at least $1.3 billion in additional revenue for the state’s Greenhouse Gas Reduction Fund (GGRF), which invests revenue in clean energy and other emission-reducing projects. Some, but not all, of these funds will counterbalance two other aspects of the bill: extending a manufacturing tax credit and waiving a forest fire fighting fee. After 2020, auction revenue truly takes off, and Energy Innovation forecasts AB 398 will generate over $26 billion in new revenue for the GGRF through 2030.” (7/12/17)

Local Government and Community Leaders

Los Angeles Mayor Eric Garcetti; San Francisco Mayor Edwin M. Lee; Oakland Mayor Libby Schaaf; San Jose Mayor Sam T. Liccardo; Sacramento Mayor Darrell Steinberg; Fresno Mayor Lee Brand; Long Beach Mayor Robert Garcia; and Santa Ana Mayor Miguel Pulido: “We urge the renewal of California’s cap and trade program to continue bringing cleaner air and green jobs to our communities.” – “As mayors of California’s largest cities, we urge the renewal of California’s cap and trade program to continue bringing cleaner air and green jobs to our communities. In addition to reducing greenhouse gas emissions, California’s cap and trade investments in renewable energy, affordable housing, electric vehicles, and more are also helping communities in our cities who need it the most. We cannot delay – our state’s leadership is needed more than ever. We stand together in helping California lead the way.” (6/28/17)

Central Valley Community Foundation CEO and Former Fresno Mayor Ashley Swearengin: “Extend It Now” – “Cap-and-trade is funding Hotel Fresno, Kings Canyon housing project and FAX upgrades in the City of Fresno. Extend it now.” (7/14/17)

California Air Resources Board Member and Past California Senate Select Committee on Air Quality Chairman Dean Florez: “As an environmental justice supporter and as a pragmatist, I strongly believe the current climate package deserves support.” – “Both the governor’s bills, Assembly Bills 398 and 617 are paired in a landmark package that fundamentally transforms California’s approach to addressing air pollution & climate change – at the same time. The high stakes of inaction are known: our kid’s lungs, local community health, and the transition to a renewal energy society…This is our moment to further show the world and our most disadvantaged communities, we have the political clout to lock in a plan that will outlive this current Governor and extend to future generations…It puts rules in place that gives California’s environmentally challenged and low-income communities a seat at the head of the table and brings neighborhoods to the forefront, with an ARB that is given more power to enforce, demand and push local air districts into communities most times ignored or left without resources. … As an environmental justice supporter and as a pragmatist, I strongly believe the current climate package deserves support. And I publically declare, as a member of this crucial board, at this unique juncture, I stand ready to fight for environmental justice communities throughout the implementation process.” (7/15/17)

C40 Cities Climate Leadership Group Executive Director Mark Watts: “Congratulations” on a package to extend “California’s pioneering Cap & Trade program, as well as a raft of new measures to tackle air pollution.” – “Congratulations to Governor Brown for extending California’s pioneering Cap & Trade program, as well as a raft of new measures to tackle air pollution.” (7/13/17)

West Sacramento Mayor Christopher Cabaldon‏: “Cap-and-trade equals mobility, clean air, affordable housing, equity and jobs.” – “Cap-and-trade equals mobility, clean air, affordable housing, equity and jobs with projects here in West Sacramento like Streetcar and West Gateway. Extend it now.” (7/13/17)

International Council for Local Environmental Initiatives – Local Governments for Sustainability USA Executive Director Angie Fyfe: “Cap and Trade is the most efficient system available to support the individuals and businesses that implement climate programs at the local level.” – “California’s climate targets are some of the most aggressive in the world and have helped the state’s economy to flourish. Cap and Trade is the most efficient system available to support the individuals and businesses that implement climate programs at the local level. When China went looking for a successful program to address carbon and air pollution, they rightly looked to California Cap and Trade. ICLEI supports the extension of California Cap and Trade because we see the benefits it brings to communities across California and across the globe.” (7/13/17)

California Transit Association Executive Director Joshua W. Shaw: “The Association has long-supported the extension of the cap-and-trade program as a means of creating stability in the market.” – “…The Association has long-supported the extension of the Cap and Trade program as a means of creating stability in the market for Cap and Trade auction proceeds. The structural changes to the Cap and Trade program that would be made by this bill, namely its introduction of a price ceiling for auction allowances and limits on the use of carbon offsets, are smart policy that create price certainty for regulated industries and address air quality concerns raised by the Environmental Justice community. For these reasons, the Association supports this important measure.” (7/14/17)

Climate Resolve Executive Director Jonathan Parfrey: “Cap-and-trade has been California’s silver bullet for addressing the challenges of climate change while continuing to thrive economically.” – “Cap-and-trade has been California’s silver bullet for addressing the challenges of climate change while continuing to thrive economically. The revenue it generates has been an invaluable resource to help communities adapt to our changing climate — in Los Angeles, those investments in reducing greenhouse gas emissions are launching us further down our path towards a less smoggy, less congested, more equitable future. In the face of the Trump administration’s actions to roll back climate progress, California must move forward. There is no choice — California must succeed!” (7/13/17)

Foothill Gold Line Construction Authority CEO Habib F. Balian: “The Foothill Gold Line is a prime example of the benefits that can come from extending the Cap-and-Trade Program.” -“The Foothill Gold Line is a prime example of the benefits that can come from extending the Cap-and-Trade Program. If extended, we hope to utilize those funds to complete the next six-station light rail segment through what has historically been one of the most polluted areas of the state. The next six stations will increase ridership on the Los Angeles County rail network by an estimated 18,300 boardings per day by 2035, remove 111,000 daily vehicle miles traveled, reduce greenhouse gas emissions, and provide an environmentally-sustainable transportation option for an area of the county that is anticipated to accommodate a significant amount of growth in the coming years.” (7/13/17)

Resource Conservation District of Greater San Diego County Executive Director Sheryl Landrum: “Keeping this program is vitally important for California.” – “The cap-and-trade-funded SWEEP program is extremely important to drought stricken San Diego County. With the largest number of small farms in the nation, having SWEEP and reducing water consumption and costs is helping us to preserve our urban farm culture. The SWEEP program in San Diego is helping to offset the high cost of water in agriculture in our area and motivating water users to utilize more efficient practices. We think keeping this program is vitally important for California and that is why we are supporting AB 398 and AB 617.” (7/13/17)

Business Leaders

California Manufacturers and Technology Association; Asian Business Association of Los Angeles; Bay Area Council; Bay Planning Coalition; CalAsian Chamber of Commerce; California Metals Coalition; East Bay Economic Development Alliance; East Bay Leadership Council; Fresno Chamber of Commerce; Industrial Environmental Association; Manufacturers Council of the Central Valley; Orange County Business Council; Sacramento Regional Builders Exchange; San Joaquin County Hispanic Chamber of Commerce; Solano Economic Development Corp; Valley Vision; Valley Industry and Commerce Association; Western States Petroleum Association; Western Wood Preservers Institute: “The alternative to extending California’s cap-and-trade program is a far costlier command-and-control regulatory scheme that would lead to higher energy prices for consumers and businesses.” – “AB 398 reforms and extends California’s cap-and-trade program to provide the most cost-effective path toward the state’s climate change goals while mitigating potential consumer cost increases related to higher prices for fuel, energy and consumer goods… The alternative to extending California’s cap-and-trade program is a far costlier command-and-control regulatory scheme that would lead to higher energy prices for consumers and businesses and does not necessarily ensure that the state achieves GHG reduction targets. A well-designed cap-and-trade program is critical to protecting consumers and industry while meeting our climate change goals.” (7/14/17)

Fresno Chamber of Commerce; Silicon Valley Leadership Group; San Gabriel Valley Economic Partnership; Inland Empire Economic Partnership; Bay Area Council; North Bay Leadership Council; East Bay Economic Development Alliance; San Francisco Chamber of Commerce; Oakland Metropolitan Chamber of Commerce; Los Angeles Area Chamber of Commerce; Monterey Bay Economic Partnership; Orange County Business Council; and East Bay Leadership Council: “We strongly support AB 398 and urge the legislature to come together to support the bill as well.” – “California’s efforts on these issues are unmatched by any other state and they have created a path for California’s economy to grow and for an emissions trajectory that, if replicated by the world, would avoid the worst damage that a warming climate would inflict. The groups signing this letter represent hundreds of employers and trillions of dollars of economic value. We support AB 398 (E. Garcia), a climate change bill which will extend California’s cap-and-trade program…We strongly support AB 398 and urge the legislature to come together to support the bill as well.” (7/15/17)

California Manufacturers and Technology Association President Dorothy Rothrock: “We urge legislators to support this balanced package that provides compliance flexibility and reduces climate change policy costs on our state’s entire economy.” – “CMTA supports AB 398 and AB 617 to continue California’s responsible leadership role by extending the cap-and-trade program, promoting a stronger economy through protecting manufacturing jobs and providing for local environmental improvements. We urge legislators to support this balanced package that provides compliance flexibility and reduces climate change policy costs on our state’s entire economy.” (7/12/17)

California Chamber of Commerce President Allan Zaremberg: “AB 398 will provide the least costly path to achieving our climate goals.” -“The balanced, well-designed cap and trade program in AB 398 is essential to reducing the costs of California’s greenhouse gas reduction goals established last year in SB 32. AB 398 will provide the least costly path to achieving our climate goals by extending cap and trade to 2030. The measure will help California maintain a healthy economy that produces well-paid, middle class jobs.” (7/13/17)

California Business Roundtable President Rob Lapsley: “We urge broad-based, bipartisan support for AB 398 and AB 617.” – “We urge broad-based, bipartisan support for AB 398 and AB 617. These bills create a balanced policy strategy to extending California’s cap-and-trade program, which represents the most effective market based approach to achieving our climate goals and growing our economy.” (7/12/17)

Orange County Business Council President and CEO Lucy Dunn: “Orange County Business Council supports reauthorization of pending cap and trade legislation, particularly bipartisan support for AB 398 and AB 617.” – “Orange County Business Council supports reauthorization of pending cap and trade legislation, particularly bipartisan support for AB 398 and AB 617. A market based approach to achieve California’s climate change goals protects the state’s economy and its business community.” (7/13/17)

Bay Area Council President and CEO Jim Wunderman: “The program has worked exceptionally well and must be continued.” – “As the first business group to support AB32 and cap and trade, the Bay Area Council believes the program has worked exceptionally well and must be continued. California has shown that it’s possible to reduce carbon, improve local air quality, spur new clean energy industries and jobs, and have an economy that’s the envy of the nation. Let’s not stop now. Reauthorizing cap and trade until 2030 is essential to keep California on track for its climate goals and its clean energy leadership.” (7/13/17)

Sierra Business Council President Steve Frisch: “It is incredibly important that climate solutions transcend partisan politics.” – “The legislative proposals, AB 398 (E. Garcia) & AB 617 (C. Garcia), should be strongly supported by Sierra residents, businesses and local governments…We are particularly pleased that extension of the Cap and Trade program has the potential to attract considerable bi-partisan support in the legislature. It is incredibly important that climate solutions transcend partisan politics…If the bills pass, the Sierra Nevada region will stand to benefit from improved access to more funding to pay for emission reduction and climate adaptation efforts like forest restoration, low carbon transportation, affordable housing and water savings measures.” (7/11/17)

Silicon Valley Leadership Group Senior Vice President, Energy and Environment Mike Mielke: “We hope the legislature will move swiftly to pass this legislation and help continue California’s clean energy leadership and strong job growth.” – “California’s Cap-and-Trade Program and complimentary air quality measures are the state’s most effective tools to reduce emissions and ensure all Californians have access to healthy air, while also maintaining market certainty and increasing economic vitality, which is critical as we transition our economy away from one based on coal, oil and gas, to one that runs on renewable energy. Our member companies employ hundreds of thousands of Californians and depend on stable and long-term price signals to continue investments and grow jobs. We support the bill package put forth to strengthen and advance the Cap-and-Trade Program and address important air quality issues, and appreciate the negotiation efforts, which have resulted in a proposal that maintains the integrity of the program while balancing the needs of the business community. Maximizing investments in carbon reduction technologies creates jobs and drives economic growth. This is a high priority for our members, and we hope the legislature will move swiftly to pass this legislation and help continue California’s clean energy leadership and strong job growth.” (7/11/17)

LA Business Council President Mary Leslie and Los Angeles Cleantech Incubator Vice President for Government Relations Mike Swords: “If we don’t pass this strengthening of California’s pioneering cap-and-trade program, we risk ceding our global leadership on climate change. We risk our economic future. We risk our health and well-being.” – “Our representatives in Sacramento must defend the tremendous progress California has made in leading the nation and the world toward a clean energy future. The cap and trade program is critical to meeting California’s commitment to reduce greenhouse gas emissions by 40 percent by 2030, as well as cleaning our air and improving public health. We’ve come too far to turn back now…Cap and trade, along with other climate policies, have injected $45 billion in private and public investments into our state’s economy. These policies have provided long-term market signals and regulatory certainty, allowing clean technology businesses, investors and employment to flourish. The current program has raised $4 billion in revenue statewide. Los Angeles has seen direct benefits of this funding with key projects…This is an opportunity we cannot afford to miss. If we don’t pass this strengthening of California’s pioneering cap-and-trade program, we risk ceding our global leadership on climate change. We risk our economic future. We risk our health and well-being. And we risk giving ground to retrograde forces desperate to reverse progress on clean energy and climate policy…Establishing a long-lived cap and trade program is one of the best things legislators can do for our communities, our economy and our planet.” (7/14/17)

East Bay Leadership Council: Cap and Trade “Protects our environment and local air quality while allowing employers to successfully adapt.” – “The East Bay’s largest employer-led public policy advocacy organization, the East Bay Leadership Council (EBLC), supports the current proposal to reauthorize California’s cap-and-trade program. The plan consists of two bills, AB 398 and AB 617, which include key components that the EBLC has called for over the last month including a focus on local air quality and price containment measures. These two bills present a difficult but necessary compromise…The East Bay Leadership Council calls on the California State Assembly and Senate to quickly pass these bills on a bipartisan, super-majority basis and continue this program that protects our environment and local air quality while allowing employers to successfully adapt. (7/12/17)

Business for Social Responsibility President and CEO Aron Cramer: “Extending the state’s landmark cap and trade law will ensure certainty for business in the transition to low carbon prosperity that will spark innovation, job creation, and a resilient economy that works for all.” – “California’s leadership on combatting climate change is more important than ever. Extending the state’s landmark cap and trade law will ensure certainty for business in the transition to low carbon prosperity that will spark innovation, job creation, and a resilient economy that works for all. With the overwhelming majority of businesses and investors focused on building a climate resilient 21st century economy, California’s efforts will only aid and accelerate these efforts.” (7/16/17)

Gap Foundation President and Gap Inc. Senior Vice President, Global Sustainability David Hayer: These bills ensure we can “meet our statutorily required 2030 GHG goals in the most cost effective manner possible.” – “We need our decision-makers to establish long-term economy-wide climate policies that that will help encourage all companies to reduce their carbon footprint. AB 398 and AB 617 improve upon California’s Cap-and-Trade program and authorizes the Air Resources Board (ARB) to execute the Cap-and-Trade program through 2030. A strong Cap-and-Trade program, in conjunction with California’s other key climate programs, such as the Low Carbon Fuel Standard, is critical to meeting the state’s 2030 greenhouse gas (GHG) reduction goals. California’s Cap-and-Trade program has a four-year track record of successful compliance and has proven an excellent backstop for the state’s GHG mitigation program ensuring California will meet its current climate goals. With increasingly ambitious goals, the use of the most economically efficient policy and regulatory consistency are paramount for California businesses. Together these bills will ensure that California can employ an improved and effective market-based climate reduction program – Cap-and-Trade – to ensure we meet our statutorily required 2030 GHG goals in the most cost effective manner possible.” (7/13/17)

California Council for Environmental and Economic Balance President Gerald Secundy: “Cap-and-trade gives us a clear path where we know we’re creating green jobs, rebuilding our infrastructure, and fighting climate change.” – “We take seriously the threat of global climate change to public health, the health of the planet, and to our economic systems and infrastructure. So we stand with the governor, the speaker, and the senate president pro tem in support of Assemblymember E. Garcia’s bill…Cap-and-trade gives us a clear path where we know we’re creating green jobs, rebuilding our infrastructure, and fighting climate change. We support the governor, Assemblymember E. Garcia and AB 398 because we see the need for this balance.” (7/12/17)

Labor Leaders

California Labor Federation; State Building and Construction Trades Council; California Professional Firefighters; SEIU California State Council; California State Council of Laborers International Union of Operating Engineers; California Teamsters Public Affairs Council; UFCW Western States Council; United Steel Workers; Painters and Allied Trades International Union; International Union of Bricklayers & Allied Crafterworkers; International Association of Bridge, Structural and Ornamental Reinforcing Iron Workers; Operative Plasters’ and Cement Masons; International Association of Heat & Frost Insulation and Allied Workers: “The California Labor Movement, representing over 2 million union workers, strongly supports AB 398/AB 617.” – “The California Labor Movement, representing over 2 million union workers, strongly supports AB 398/AB 617. Combined, these measures will once again establish California’s global leadership in fighting climate change. These bills extend the cap and trade program and ensure that California will meet its SB 32 greenhouse gas (GHG) emissions reduction targets. Just as important, for the first time, California will begin to directly attack the air quality problems that afflict communities most impacted by pollution… This package increases program oversight and equity in its implementation to reach all disadvantaged communities while continuing to advance the state’s environmental goals which have created tens of thousands of good paying union jobs. We strongly urge your support of AB 398 & AB 617!” (7/12/17)

Service Employees International Union: “SEIU proudly supports the efforts to advance climate equity and improve air quality for our communities.” -“Combined, these measures reflect our state’s dedication to get clean air for all Californians while protecting our environment and economy from the harmful effects of climate change. Too many working people in California, including SEIU members and our families, live and work where the impact of air pollution associated with climate change is prevalent and severe — whether it’s a family member who has asthma or another chronic illness linked to air pollution, or poor air quality forcing everyone to remind inside. These measures recognize that protecting the environment and improving public health are inextricably linked…SEIU proudly supports the efforts to advance climate equity and improve air quality for our communities. We strongly urge your ‘aye’ vote on AB 398 and AB 617.” (7/16/17)

Director of the California State Council of Laborers Jose Mejia: “It makes sense to continue doing what we’re doing right.”-“Cap-and-trade covers more than 450 businesses, totaling about 80% of statewide emissions and employing many thousands of workers. Other options cost as much as thirty times more, but don’t do any better reducing emissions. It makes sense to continue doing what we’re doing right. California workers are on the frontline. It’s our jobs at stake. We’ve got to be honest–reducing greenhouse gases is hardly cost-free, but it in the end it’s what we must do for our environment and economy. By keeping jobs in California, we keep the economic benefits and help businesses be the cleanest and most efficient in the world. That doesn’t happen when businesses leave.” (7/12/17)

State Building and Construction Trades Council President Robbie Hunter: “Cap-and-trade spreads our efforts to partners in industry and the environment far beyond California.”– “This is where investments are being made. This is where we’re creating technologies for cleaner cars and trucks, cleaner fuel and energy production, and for sustainable industry and infrastructure. Cap-and-trade spreads our efforts to partners in industry and the environment far beyond California. It’s more than just symbolic leadership.” (7/12/17)

California Professional Firefighters: “These bills are important steps in shaping California’s climate adaptation and resilience going forward — both environmentally and economically.”– “Together, AB 398 and AB 617 ensure that California remains a leader in efforts to combat climate change, while also enable such policies to be implemented fairly and, at the same time, improve our air quality and boost our economy. As firefighters know firsthand, California must now consistently prepare for extreme temperature swings and climate-change related disasters…These bills are important steps in shaping California’s climate adaptation and resilience going forward — both environmentally and economically. Indeed, a concerted and focused commitment to investing in mitigating the impact of climate change on our state is essential as we face this new and extreme environmental reality.” (7/11/17)

Agriculture and Food Processing Leaders

Almond Alliance of California; Agricultural Council of California; Association of California Egg Farmers; California Association of Wheat Growers; California Association of Winegrape Growers; California Bean Shippers Association; California Citrus Mutual; California Cotton Ginners and Growers Association; California Dairies, Inc.; California Farm Bureau Federation; California Grain and Feed Association; California Pear Growers Association; California Poultry Federation; California Seed Association; California State Floral Association; California Tomato Growers Association; California Warehouse Association; Milk Producers Council; Nisei Farmers League; Pacific Coast Rendering Association; Western Agricultural Processors Association; and Western United Dairyman: We Support AB 398. It “allows food processors regulated under SB 32 to meet their compliance obligations for reducing GHGs in a cost effective manner.” – “The organizations listed below, representing the California agriculture industry, wish to express our Support for your AB 398, regarding the California Global Warming Solutions Act of 2006 and market based compliance mechanisms. Last year, SB 32 was enacted, extending California’s Global Warming Solutions Act to 2030. It is important to note that SB 32 extended ARB’s authority to use command and control mechanisms to regulate greenhouse gas emissions (GHGs) into the future, with little consideration given to the costs of that measure to California’s citizens, consumers and economy. SB 32 was opposed by the agriculture industry and the larger job creation community in California because it did not attempt to balance its mandate with its economic impacts. AB 398 finds this balance by creating a market-based mechanism that allows food processors regulated under SB 32 to meet their compliance obligations for reducing GHGs in a cost effective manner.” (7/17/17)

California League of Food Producers Government Affairs Director John Larrea: AB 398 “the most cost effective path toward the state’s climate change goals while preserving jobs and mitigating potential consumer cost increases related to higher prices for fuel, energy and consumer goods.” – “The California League of Food Producers (CLFP) SUPPORTS AB 398. CLFP represents 47 industrial food processors in California, twenty-one of which are subject to the Cap-and-Trade. Food and beverage processing in California accounts directly for $25.2 billion in value added and 198,000 direct full- and part-time jobs contributing to the local economies, many of which are disadvantaged communities…AB 398 reforms and extends California’s cap-and-trade program to provide the most cost effective path toward the state’s climate change goals while preserving jobs and mitigating potential consumer cost increases related to higher prices for fuel, energy and consumer goods. By extending the current programs to 2030, AB 398 provides a seamless transition that will contribute much needed consistency in the program through its reform of the market design, additional oversight and accountability, further definition of relevant regulatory authority, as well as support for workforce development and tax relief. The Cap-and-Trade is first and foremost a tool, providing vital compliance flexibility, allowing California’s food producers to select reduction strategies that best suit their unique markets and evolving circumstances. Through the retention of current industry assistance levels, Cap-and-Trade will continue to achieve GHG emission reductions while sending a clear and transparent price signal throughout California’s economy.” (7/12/17)

California Certified Organic Farmers Community Alliance with Family Farmers; California Climate and Agriculture Network Ecological Farming Association; California Farmlink; Occidental Arts & Ecology Center; and Wild Farm Alliance: “AB 398 and AB 617 move us closer” to achieving “goals” – “On behalf of the California Climate and Agriculture Network, a statewide coalition of sustainable and organic agriculture organizations, we write to express our support for the package of bills, AB 398 and AB 617, which extend the state’s cap-and-trade program and address toxic air contaminants and criteria pollutants from the state’s primary stationary sources…Our farmer and rancher members acknowledge the threat of climate change. They face greater weather extremes, increased pest and disease pressures and constrained water resources that challenge their ability to produce the food that we all depend upon….Fundamental to the success of California’s ambitious climate change goals is a robust set of policies that cap and reduce greenhouse gas emissions, support the transition of our economy away from fossil fuel inputs towards renewable energy sources, and improve our resilience. Among those policies is the state’s cap-and-trade program, which provides important funding to incentivize greenhouse gas emissions reduction projects in the agriculture sector and in communities across the state…As we look to achieve our 2030 climate change goals, we must continue efforts to lessen climate change impacts on the most vulnerable among us: the urban and rural poor and those who face disproportionate pollution burdens. AB 398 and AB 617 move us closer to achieving these goals.” (7/12/17)

Foster Poultry Farms Senior Vice-President Randy C. Boyce: “This balanced approach will help Foster Farms to be a major employer in the Central Valley.” – “Foster Farms supports AB 398 because it is a balanced and reasonable approach to California’s Global Warming Solution that creates a market-based mechanism that allows food processors regulated under SB 32 to meet their compliance obligations for reducing GHGs in a cost-effective manner. Importantly, this balanced approach will help Foster Farms to be a major employer in the Central Valley.” (7/17/17)

Campbell Soup Company Vice President Government Affairs Kelly D. Johnston: “AB 398 reforms and extends California’s cap-and-trade program to provide the most cost-effective path toward the state’s climate change goals.” – “AB 398 reforms and extends California’s cap-and-trade program to provide the most cost-effective path toward the state’s climate change goals while mitigating potential consumer cost increases related to higher prices for fuel, energy and consumer goods such as California food products…The alternative to extending California’s cap-and-trade program is far costlier command-and-control regulatory scheme that would lead to higher energy prices for both our facility and consumers and business in general.” (7/14/17)

Iyer Farms Owner Lax Iyer: “Please keep it going.” -“We were able to install water sensor meters to accurately and efficiently produce more with less and more precise usage of water. Without cap-and-trade-funded SWEEP grant programs, I would not have been able to do the same. Please keep it going.” (7/13/17)

California Climate and Agriculture Network: “The future of the state’s Climate Smart Agriculture programs is at stake.” – “The bills reaffirm the importance of sustainable agricultural solutions to climate change…The future of the state’s Climate Smart Agriculture programs is at stake…(AB 398 and AB 617) reaffirm our commitment to climate change action in California, including funding for the Climate Smart Agriculture programs. The programs provide crucial resources for farmers and ranchers to address climate change and improve our environment overall.” (7/13/17)

Hilmar Cheese Company, Inc. CEO and President David Ahlem: AB 398 “needed to prevent further economic leakage and to protect our company from a deterioration of competitiveness.”-“AB 398 recognizes that the economics and science support that HCC, and all California food processors, be given adequate industry assistance. Additionally, AB 398 helps to ensure that HCC has the ability and options to select and implement GHG strategies…It is needed to prevent further economic leakage and to protect our company from a deterioration of competitiveness against competitors both national and international.” (7/14/17)

Duarte Nursery, Inc. Co-Founder Jim Duarte: Irrigation project will “save water and power when fully implemented” because of cap and trade. – “My irrigation project, supported by a cap-and-trade SWEEP grant, will not only save water and power when fully implemented, but also because of online information it will save automobile miles.” (7/13/17)

Los Gatos Tomato Products LLC President Reuben Perterson: AB 398 allows “opportunity to control our costs yet continue to meet our compliance obligations.” – “AB 398 continues to ensure that Los Gatos Tomato Products has this cost containment tool, allowing our company to select emission reduction strategies that give us the opportunity to control our costs yet continue to meet our compliance obligations, at both the state and local level.” (7/14/17)

Ingomar Packing Company CEO Gregory R. Pruett: AB 398 “Will contribute much needed consistency” – “Our company, based in Los Banos, was founded in 1983 and employs over 500 people in the low income region of western Merced County…AB 398 provides a seamless transition that will contribute much needed consistency in the program through its reform of the market design and additional oversight and accountability. It is needed to prevent further economic leakage and to protect our company from a deterioration of competitiveness against competitors both national and international.” (7/13/17)

Nygren Hill Vineyard Owner Martin Schacht: Cap and Trade funded project “moved me to be much more efficient.” – “My recent solar SWEEP project has drastically reduced the amount of electrical power that I had been using for irrigation, and moved me to be much more efficient. The measuring aspect of my SWEEP grant allows me to irrigate only as needed, and in the off peak hours.” (7/13/17)

Utility Leaders 

California Municipal Utilities Association; Southern California Public Power Authority; Northern California Power Agency; Los Angeles Department of Water and Power; Sacramento Municipal Utility District; Turlock Irrigation District; Modesto Irrigation District; City of Vernon; City of Palo Alto; City of Long Beach Gas & Oil Department; M-S-R Public Power Agency; Golden State Power Cooperative; Southwest Gas Corporation; Liberty Utilities; Southern California Edison; Pacific Gas and Electric Company; San Diego Gas & Electric; SoCalGas; and PacifiCorp: “Without AB 398 and extension of the cap-and-trade program, utility customers would face dramatic bill increases.” – “Without AB 398 and extension of the Cap-and-Trade program, utility customers would face dramatic bill increases…A well-designed Cap-and-Trade system is necessary to meet the state’s climate goals in the most cost-effective manner. Without this program, the state will be forced to pursue more expensive policy options. Cap-and-Trade establishes a firm GHG target and provides flexibility to foster innovative GHG emissions reductions that minimize costs to California consumers and businesses. The California Utilities support AB 398 and the program’s legislative reauthorization through a two-thirds majority vote.” (7/11/17)

Southern California Public Power Authority Executive Director Michael S. Webster: This approach “will help minimize program costs to utility customers and protect low- and moderate-income customers.” – “SCPPA is a joint powers authority whose members include the cities of Anaheim, Azusa, Banning, Burbank, Cerritos, Colton, Glendale, Los Angeles, Pasadena, Riverside, and Vernon, and the Imperial Irrigation District… Extending Cap-and-Trade via a two-thirds vote of the State Legislature – with important cost containment provisions – will help minimize program costs to utility customers and protect low- and moderate-income customers as California demonstrates how to achieve ambitious climate change goals in the most cost-effective manner possible. We urge your support of AB 398…” (7/12/17)

Southern California Edison Director of State Public Affairs Darren Bouton: “AB 398 will protect electricity customers from dramatic bill increases, by continuing existing consumer cost protections in the cap-and-trade program.” – “Southern California Edison (SCE) supports AB 398, which continues California’s successful cap-and-trade program that has been instrumental in helping California achieve real, verifiable greenhouse gas (GHG) emissions reductions in a cost effective manner… A well-designed cap-and-trade program is necessary to meet California’s climate goals in the most cost effective manner. AB 398 achieves a fair balance, protecting California’s economy and consumers by enhancing the cap-and-trade program’s cost-containment features, while preserving the environmental integrity of the program. The bill also demonstrates California’s continued global leadership on climate change, while improving environmental and economic conditions for Californians here at home. AB 398 will protect electricity customers from dramatic bill increases, by continuing existing consumer cost protections in the cap-and-trade program… In addition to AB 398, SCE is pleased that a related proposal (AB 617) complements the extension of our state’s cap-and-trade program by improving local air quality outcomes in affected communities.” (7/12/17)

Sempra Energy Utilities State Governmental Affairs Senior Manager Heidi Barsuglia: “This legislation strikes the right balance to meet California’s long-term environmental goals while also sustaining the economic vitality of the State.” – “California is a global leader in developing successful climate change and air quality policy. Sempra Energy Utilities agree that these policies are needed to protect community health and our environment for future generations and believe that these policies must also consider the strength of California’s economy. This legislation strikes the right balance to meet California’s long-term environmental goals while also sustaining the economic vitality of the State. A well-designed Cap-and-Trade program is an essential and flexible component of the State’s greenhouse gas (GHG) reduction efforts. Alternative approaches would be much more costly and/or significantly more difficult to implement. The Cap-and-Trade program extension in AB 398 should be one of the primary strategies in the State’s ongoing efforts to achieve cost-minimizing GHG reductions…We strongly urge your AYE vote on this important legislation.” (7/12/17)

Pacific Gas and Electric Company CEO Geisha J. Williams, Edison International CEO Pedro J. Pizarro and Sempra Energy Corporate Group President of Utilities Steven D. Davis: “For the benefit of tens of million California customers – and to our state’s climate leadership at a pivotal moment – we urge legislators to approve Assembly Bill 398.” – “Now is not the time for California to abandon one of its most successful and cost-effective strategies for making progress on climate change. California’s cap-and-trade program has reduced emissions and put the state on track to achieve its climate targets. And it has done so in a way that saves energy customers billions of dollars in costs and protects lower-income Californians, while creating much-needed funding for clean-energy programs…The nonpartisan Legislative Analyst’s Office recently recommended that the Legislature authorize cap and trade beyond 2020 because it’s the most cost-effective approach to meeting the state’s 2030 carbon reduction goals. The LAO further recommended that legislators approve the program by a two-thirds vote to provide greater legal certainty for the future. We couldn’t agree more…For the benefit of tens of million California customers – and to our state’s climate leadership at a pivotal moment – we urge legislators to approve Assembly Bill 398 and extend the cap-and-trade program as soon as possible.” (7/12/17)

Governor Brown Secures Powerful Climate Tool for Next Generation of Californians

EDF Statement by Timothy O’Connor, Director, California Legislative and Regulatory Affairs

(San Francisco – July 25, 2017) Today Environmental Defense Fund applauds Governor Jerry Brown for signing and the California Legislature for passing AB 398, which extends California’s landmark cap-and-trade program. California’s cap-and-trade program is an essential part of the state’s climate policy strategy that puts a firm and declining cap on carbon pollution by issuing a limited number of carbon “allowances” and requires large polluters to turn in one of those allowance for every ton of greenhouse gas they emit.

Governor Brown signed the bill into law before an enthusiastic crowd, today, at a ceremony on Treasure Island in San Francisco. EDF’s Timothy O’Connor attended today’s signing ceremony and released this statement:

“With today’s signing, California has secured one of the most powerful tools in the climate action toolbox to protect the next generation of Californians. Cap and trade will ensure California meets its ambitious climate commitments and maintains the economic prosperity that California has enjoyed since initially launching the program in 2013. California is now ahead of schedule in meeting its 2020 target, which had seemed ambitious when it was set in 2006. Extending California’s cap-and-trade program means California can maintain this recipe for success, which includes a flexible and cost-effective way for the state to achieve its new more ambitious 2030 climate target.

“Governor Brown and our legislative leaders are charting a path that other states, provinces, and countries are noticing. The future of U.S. climate action will rely on the leadership and engagement of states, cities and businesses, and California is leading the way.”

– Timothy O’Connor, Director, California Legislative and Regulatory Affairs

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About David Herron

David Herron is a writer and software engineer living in Silicon Valley. He primarily writes about electric vehicles, clean energy systems, climate change, peak oil and related issues. When not writing he indulges in software projects and is sometimes employed as a software engineer. David has written for sites like PlugInCars and TorqueNews, and worked for companies like Sun Microsystems and Yahoo.

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