HomeMy WebLinkAbout11 LEGISLATIVE REPORT -CALIFORNIA JOBS INITIATIVEAgenda Item 11
AGENDA ~.EPORT Reviewed:
City Manager
Finance Director N/A
MEETING DATE
TO:
FROM:
SUBJECT:
APRIL 20, 2010
WILLIAM A. HUSTON, CITY MANAGER
PATRICIA ESTRELLA, CITY CLERK SERVICES SUPERVISOR
LEGISLATIVE REPORT -CALIFORNIA JOBS INITIATIVE
SUMMARY:
Mayor Amante requested that the California Jobs Initiative be agendized for discussion.
RECOMMENDATION:
Pleasure of the Council.
FISCAL IMPACT:
There are no significant fiscal impacts associated with this action.
DISCUSSION:
The following information is provided by proponents of the California Jobs Initiative.
The California Jobs Initiative would suspend the implementation of Assembly Bill 32 (AB
32) until such time that the unemployment rate in California is 5.5 percent or less for
four consecutive calendar quarters. During the suspension period, state agencies would
be prohibited from proposing or adopting new regulations, or enforcing previously
adopted regulations, implementing AB 32.
In addition, the measure will provide amuch-needed safety net for cities and counties.
The current economic crisis has resulted in massive unemployment, home foreclosures,
reduced revenues and record high state deficits. AB 32 (Global Warming Solutions Act)
would add billions in implementation costs and will further reduce economic activity,
unemployment and state and local revenues.
Examples of what AB 32 will cost consumers include:
• Up to 60 percent higher retail electricity rates (Southern California Public Power
Authority);
• An 8 percent increase in natural gas costs (California Air Resources Board);
• $3.7 billion in higher gasoline and diesel costs (Sierra Research);
• Increased vehicle costs from $1,000 to $3,000 (GARB and auto maker
estimates);
• Increased costs of $50,000 fora new home (National Renewable Energy
Laboratory estimates for the cost of a zero net energy home);
• Possible $143 billion auction tax to offset AB32's higher energy prices and job
losses (GARB Economic Allocation and Advisory Committee) in the form of direct
costs to some cities;
• A cost of approximately $50,000 per small business.
In addition, AB 32 would shift local control to the State in critical areas such as land use,
transportation, waste management and building codes.
California already has the strictest air and water protection laws in the country, and the
California Jobs Initiative will not weaken those laws in any way. Nor will the measure
repeal AB 32. It is a responsible measure that will temporarily reschedule the onset of
costly greenhouse gas reduction programs until the economy has a chance to recover.
A copy of the measure is attached to this report.
Patricia Estrella
City Clerk Services Supervisor
California Jobs Initiative
SECTION 1. STATEMENT OF FINDINGS
A. In 2006, the Legislature and Governor enacted a sweeping environmental law, AB 32.
While protecting the environment is of utmost importance, we must balance such
regulation with the ability to maintain jobs and protect our economy.
B. At the time the bill was signed, the unemployment rate in California was 4.8%.
California's unemployment rate has since skyrocketed to more than 12%.
C. Numerous economic studies predict that complying with AB 32 will cost Californians
billions of dollars with massive increases in the price of gasoline, electricity, food and
water, further punishing California consumers and households.
D. California businesses cannot drive our economic recovery and create the jobs we need
when faced with billions of dollars in new regulations and added costs; and
E. California families being hit with job losses, pay cuts and furloughs cannot afford to pay
the increased prices that will be passed onto them as a result of this legislation right now.
SECTION 2. STATEMENT OF PURPOSE
A. The people desire to temporarily suspend the operation and implementation of AB 32 until the
state's unemployment rate returns to the levels that existed at the time of its adoption.
SECTION 3. SUSPENSION OF AB 32
Division 25.6 (commencing with section 38600) of the Health and Safety Code is hereby
added to read:
§38600(a) From and after the effective date of this measure, Division 25.5(commencing
with section 38500) of the Health and Safety Code is suspended until such time as the
unemployment rate in California is 5.5% or less for four consecutive calendar quarters.
(b) While suspended, no state agency shall propose, promulgate, or adopt any regulation
implementing Division 25.5(commencing with section 38500) and any regulation
adopted prior to the effective date of this measure shall be void and unenforceable until
such time as the suspension is lifted.