12/16/2010

Will C.A.R.B. Finally Kill California's Economy?

As if California isn't already suffering from an insurmountable budget deficit, confiscatory taxes, public employee union greed, a spendthrift legislature, business hostile regulations, and a 12.2%+ unemployment rate, the California Air Resources Board is about to drive the final nail in the coffin of the state's economy with their version of cap-and-trade.

That's all California needs is yet another series of money draining 'rules' that will do little other than place an even higher burden on businesses already struggling to survive. Higher energy prices certainly aren't going to help them stay in business.

California air quality regulators are poised to adopt the nation's most sweeping regulations to give power plants, refineries and other major polluters a financial incentive to reduce their greenhouse gas emissions.

California's cap-and-trade rules would set up the largest U.S. carbon trading market as the way to enforce the state's gradually tightening cap on emissions.

The amount of allowed emissions would be reduced over time, and the regulations would expand in 2015 to include refineries and fuel distributors like oil companies. The cap would reach its lowest level in 2020, when California wants its greenhouse gas emissions reduced to 1990 levels.

If they handle this as well as the state previously handled electrical utility regulation – including the effective banning of new electrical generating capacity using traditional technology like nuclear – then California is doomed.

I wonder how long it will be before the old saw about the last person leaving the state shutting off the lights will become the truth?