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Analyst: Carbon law hurts jobs

March 13, 2010

A 2006 law mandating strict regulations on carbon emissions to reduce the state’s effects on global climate change could have adverse short-term effects on employment, California’s legislative analyst said in a letter Monday.

Although the effects of Assembly Bill 32 on jobs are difficult to gauge, “we believe that the aggregate net jobs impact in the near term is likely to be negative, even after recognizing that many of the [California Air Resources Board’s regulatory] programs phase in over time,” wrote Mac Taylor, the state’s legislative analyst.

The letter was in response to inquiries from state Sen. Dave Cogdill (R-Modesto), who, with other Republicans, has called for a suspension of any new regulations until California’s jobless rate drops significantly.

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State Sen. Bob Huff (R-Diamond Bar) has argued that the bill’s requirements should be suspended to protect businesses from the added expenses required to meet stricter emissions standards. Unnecessary expenses could prevent new jobs and growth in the private sector and perhaps push businesses out of California, Huff said, citing the legislative analyst’s letter.

Huff introduced a bill that would prevent some regulations from taking effect without first being considered by the Legislature.

The bill would also prevent new restrictions from the California Energy Commission from going into effect until the unemployment rate falls below 5.1% for three consecutive months.

California’s unemployment rate was 12.5% in January.

But while the short-term employment impacts of AB 32 may be negative, the requirements for more power to be obtained from renewable sources and the demand for industry growth because of the regulations will likely create 120,000 jobs by 2020, according to the legislative analyst.

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Reps. react to FEMA declaration

The Federal Emergency Management Agency issued a disaster declaration Monday for California, responding to storms that triggered debris flows and damaged homes in the foothills.

The declaration will ensure that California is reimbursed for disaster relief operations at a time of financial strains for the state, said area members of Congress, who applauded the move.

“As disasters occur it so often is seen as a one-time event, but I mean having endured the worst fire in the history of Los Angeles [County], the aftermath is something that is going to last for a period of time,” said Rep. David Dreier (R-San Dimas).

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