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Kristin Eberhard’s Blog

Proposition 26 will not stop AB 32

Kristin Eberhard

Posted November 5, 2010

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California voters gave AB 32 and clean energy a strong vote of confidence last Tuesday by resoundingly rejecting Proposition 23. Close to 4.5 million people voted against Proposition 23 – more than voted for or against any other item on the ballot. No on 23 got more votes than the winning candidates for governor or US Senate or Chief Justice of the State Supreme Court (who was unopposed). Even counties that voted for Republican candidates voted against Proposition 23, including Butte County, home to the initiative’s author, Assemblyman Dan Logue from Chico. Proposition 23’s defeat was an undeniable victory for environmental and public health advocates and clean energy proponents.

However, the lesser-known and poorly understood Proposition 26 squeaked by under the radar.  The measure’s vague language and broad sweep have led many to ask: how will it impact AB 32?

The answer: not at all.

Mary Nichols, Chair of the California Air Resources Board (CARB – the agency responsible for implementing AB 32) said this week that “Prop 26 does not impair the scoping plan adopted in 2008 or any regulations developed under that plan. AB 32 is on track...” 

Here’s why:

Proposition 26 redraws the line between taxes and fees under California law. It states that it applies to “any change in state statute” that occurs after January 1, 2010. The Legislature passed AB 32 and the Governor signed it into law in 2006, well before Proposition 26 comes into effect. Although AB 32 implementation is ongoing, CARB’s authority to impose fees on polluters under AB 32 will not require “any change in state statute” post January 1, 2010. Accordingly, Proposition 26 does not change CARB’s authority to move forward with implementing AB 32.

Propositions 23’s overwhelming defeat constitutes a clear mandate from California voters that they want the state to continue to take action on climate change and move towards a clean energy future. The unfortunate result on Proposition 26 does not change that.

That doesn’t mean that Proposition 26, a measure funded by oil, alcohol and tobacco interests, won’t threaten environmental, public health, and public safety programs across the state and make the budget even harder to balance. It will blow a $1 billion hole in the state budget immediately, and will cost the state General Fund $1 billion annually, according to the Legislative Analyst’s Office. Public transit agencies will likewise lose millions of dollars in expected funding.

Proposition 26 limits the funding and tools that will be available to hundreds of state programs including environmental, public, health, and public safety ones. Some examples of the types of programs and fees that will likely be impacted are:

  • Tobacco mitigation and deterrence fees
  • A fee imposed to mitigate the significant environmental impacts of a project
  • Road damage fees to mitigate damage to streets caused by heavy truck traffic and spills
  • Fees used to cover immunizations for children
  • Hazardous waste fees to support hazardous waste disposal
  • Fees that help reduce the burden on the 911 emergency system

These and other programs are critical for safeguarding our environment, and our health and safety.  They may now be subject to the same paralysis we have seen in the state budget process for the past several years.

Programs that are already underway, like AB 32, will continue apace.

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BillNov 6 2010 03:21 PM

In creating the list of fees/taxes likely to be affected by Prop 26, are you assuming that they would require new legislation? Are not tobacco mitigation, road damage fees and immunization fees already covered by legislation passed prior to 1/1/10? Also please explain why Prop 26 blows a $1B hole in the CA budget. What fees/taxes will be lost?

Scoot DubNov 7 2010 04:18 PM

Obviously you have not had friends and family loose their jobs due to AB-32... Besides CA is unable to unilaterally change global warming, AB-32 is the most extreme global warming bill any state or country has ever seen!

Una BloggaNov 7 2010 05:16 PM

You're right Scoot, we should all just stick our heads in the sand and hope everything turns out ok... Creating the impetus to fund and innovate clean energy technology and the new jobs and the industry that comes with that is crazy talk! Soon we'll be back to a flat earth in the center of the universe and baby Jebus will take care of everything.

Besides, I'd rather a few friends lose dead-end jobs than lose any family or friends or a planet to EXTERNALITIES.

Keep letting the politician think for you, and we’ll still have politicians instead of solutions...

Michael PohlodNov 10 2010 12:21 PM

Will this affect the Admin Fee regulation that was passed by CARB earliar this year?

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