Assembly Republican Leader Mike Villines and I recently made a request to the Legislative Analyst to study the economic impacts of the California Air Resources Board Scoping Plan for the implementation of AB 32, the Global Warming Solutions Act of 2006.

AB 32 was legislation approved in 2006 that essentially gave the California Air Resources Board the unilateral authority to develop a plan to reduce carbon dioxide emissions to 1990 levels by the year 2020. Regardless of how you feel about global warming, if you stop and consider the magnitude of the task of trying to wipe out 30 years of carbon dioxide emmissions in a continually developing economy that relies largely on fossil fuels, it stands to reason that a huge economic impact is inevitable. And it is important that before we do this, we should have some idea of what that impact might be. In fact, I believe that if not implemented correctly, the economic impact of this one act alone could make our current budgetary crisis seem mild in comparison.

While the scoping plan that the ARB released came to the conclusion that there would be a net economic benefit, the Legislative Analyst’s report last week suggests that the economic analysis behind the scoping plan is flawed. In addition, the Legislative Analyst suggest that the plan fails to lay out an “investment pathway” to reach the goals set forth in AB 32.

Perhaps the most disturbing aspect of this report is that the LAO was unable to receive full cooperation from the ARB. The LAO states on more than one occasion that they did not receive an appropriate written response to their questions from the ARB, even though, “…it had been provided ample time to do so.”

Given the current economic climate, clear direction about how we reduce GHG emissions is all the more important as we have to allow businesses and households the time necessary to prepare themselves for what lies ahead in this regard.

As we prepare to sail the uncharted waters of AB 32 implementation, a full and fair analysis of the scoping plan needs to be completed. Before approval of any scoping plan regarding the implementation of AB 32, a complete picture of the costs and benefits must be undertaken. Unfortunately, the scoping plan that is currently on the table falls short of providing that.

The Air Resources Board (ARB) is scheduled to act on the scoping plan at its December 11 – 12th meetings.

A copy of the LAO’s analysis can be found here.

UPDATE 12/1/08:  The San Diego Union Tribune has editorialized about this report.  Read the editorial here.

Whew!  The campaigns are finally over and the change that the majority of the American people were looking for is certainly in our future.

First of all, let me thank you for voting  (you did vote, didn’t you?)  And if you voted for me, thank you for that!

The remarkable thing for me as we witness a complete regime change in our country, is that this happens without revolt or violence.   For over two centuries, our system has proven its durability even as we continually change those in power.  What’s truly remarkable is that we find this unremarkable.  Let me reflect, if just for a moment, how blessed we are to live in a country with freedom, and opportunity, which many nations do not enjoy.