Willow Glen Resident

News

Chamber not in favor of bill that caps emissions in California

By Monica Heger

The recent passage of the state's global warming legislation has opponents predicting economic disaster and proponents predicting an economic boon.

The legislation, which was signed into law at the end of August, was supported unanimously by the San Jose City Council. The legislation aims to reduce greenhouse gas emissions back to 1990 levels by 2020--a 25 percent reduction.

The bill was controversial because it sets higher standards for emissions in California than are required for the rest of the country, which has lead some opponents to believe it would have a negative impact on business here.

However, it won the support of many local businesses, including financially struggling Calpine Corporation and the Santa Clara Valley Water District.

"We strongly supported it," said Larry Wilson, chairman of the board of directors at the water district. "It is highly important to our community. My hope is that the bill will start the rest of the country going the same way. California alone can't change what's happening, but we can set an example and do what's right."

The bill is expected to affect oil refineries and power providers the hardest. Any business that emits a significant amount of greenhouse gases could be affected. Whether this would include farms because of the amount of methane they emit has not been determined.

One aspect of the bill allows businesses that are conserving energy and producing fewer emissions to sell their credits to businesses that produce more emissions than allowed. Other specifics of the bill, including which businesses would be affected and by how much they would have to reduce their emissions, have not yet been set, and will be determined by the California Air Resources Board. The board will also be in charge of enforcing the legislation.

Water district spokesman Mike DiMarco said this bill is particularly important to because of the effect global warming will have on the water supply.

DiMarco said climate change will bring on a shorter snow season. This means a larger runoff of water earlier in the year, when the water reservoirs are already full. The result will be a loss of half the water district's supply.

He also said sea level has been predicted to rise between 1 and 3 feet, which will not only cause flooding, but will also result in saltwater contaminating groundwater.

"This is real," DiMarco said. "Climate change isn't a matter of if, but when. We've made a conscientious choice to take steps now to avoid these effects from happening if at all possible."

DiMarco said the district has been active on the issue, including the use of hybrid vehicles, the installation of energy-efficient landscaping and converting part of its energy use to solar. He said these efforts eliminated the demand for 2.5 million pounds of carbon dioxide in 2005.

Opponents of the bill, mainly from the business community, are critical of the long-term costs to the state. Businesses are worried these stricter mandates will drive companies out of California to states with more lax regulations. However, the water district disagrees.

"It will cost a whole lot more to replace water that we no longer enjoy because of climate change," DiMarco said.

Wilson agreed, saying, "It's shortsighted to say it's going to be bad for business."

Nevertheless, the California Chamber of Commerce was against the measure.

Bob Hines, Silicon Valley Chamber of Commerce vice president of public policy and communications, said the Chamber opposed the bill because it was statewide and not national.

"We would have preferred a national standard that wouldn't set California apart from the rest of the states," Hines said. "Based on concerns raised by the California Chamber of Commerce, it's hard to ignore the possibility that it will have a negative impact on the economy.

"Does AB 32 give companies looking to expand, grow or relocate reason to pause?" Hines said. "The perception that California is not friendly to business is something that concerns us. We have to compete in a global environment, and standards that apply to us but not the rest of the world limit our ability to compete."