The Sacramento Metro Chamber anticipates a harmful impact on the 3.5 million small California businesses that will be affected by the Assembly Bill 32 climate change scoping plan and asks the California Air Resources Board (CARB) for a more accurate economic assessment.

AB 32 is the California Global Warming Solutions Act that requires the state reduce its green house gas emissions to 1990 levels by 2020. CARB voted unanimously Dec. 11 to approve the scoping plan.

“The plan’s evaluation of the costs and savings of some recommended measures is inconsistent and incomplete,” said Matt Mahood, Metro Chamber President & CEO, noting that “economic analysis played a limited role in development of the scoping plan.”

The Metro Chamber recognizes that implementing AB 32 offers new business opportunities for the state—including businesses in the emerging Clean Energy Technology sector.

“We are also wary, however, of the potential for significant negative impacts, both direct and indirect, which could accrue for all business sectors, and particularly the 3.5 million small businesses throughout California,” Mahood said.

Mahood pointed out that CARB has not resolved findings by the state Legislative Analyst’s Office of Economic Deficiencies in the AB 32 scoping plan. As well, the plan doesn’t speak to investment pathways.

“AB 32 is perhaps the most far-reaching legislation ever passed in California—with an impact greater than property tax initiative Proposition 13,” Mahood said. “AB 32 requirements will sift down into every segment of human activity in the state—and that means every business and individual will be affected. Therefore it’s essential that the economic analysis, planning and investment pathways be more accurately outlined.”

As a member of the AB 32 Small Business Coalition, the Metro Chamber is committed to a collaborative dialogue to ensure AB 32 is implemented in a manner which achieves a healthier and more sustainable natural environment while simultaneously enhancing economic prosperity.