ALEXANDRIA, VA – On November 2, Californians will cast a critical vote pertaining to the balance of environmental policy with economic stability. A state ballot initiative, Proposition 23 (The California Jobs Initiative), would suspend implementation of A.B. 32, the Global Warming Solutions Act of 2006, until the state’s unemployment rate records four consecutive quarters at 5.5% or lower. NACS fully supports this initiative, which highlights the need to balance environmental regulations with economic stability.

A.B 32 requires a reduction in greenhouse gas emissions to 1990 levels by 2020. To accomplish this objective, California’s Air Resources Board has put together a variety of efforts aimed at reducing emissions. Among these are an emission trading program and a low carbon fuel standard. More details on CARB’s implementation plan for A.B. 32 are available on CARB’s website.

The rationale behind Prop 23 is based on the fact that when A.B. 32 was passed, California’s unemployment rate was only 4.8% and the economy was strong enough to sustain the associated costs of emissions reduction strategies. Today, the state’s unemployment rate is 12% and supporters of Prop 23 are concerned that implementation of A.B. 32 will force the state into deeper recession.

Some California electric utilities estimate that A.B. 32 would result in a 60% increase in state electricity rates and the CARB projects a 57% increase in natural gas costs. Other studies project $3.7 billion in higher gasoline and diesel costs and supporters of Prop 23 estimate that A.B.32 would result in the loss of an additional one million California jobs.

“Californians already pay 20 to 40 cents more per gallon for gasoline and diesel fuel than the rest of the nation,” said Gil Moore, NACS board member and president of Gil Moore Oil Company in Sacramento. “Why would anybody vote for another potential increase of 40 to 60 cents per gallon? I have lived in California all my 59 years, and I love it here. NACS and I want clean air, clean water more than anyone else, responsibly! We all agree that clean air is critical, but when the economy is in a terrible recession and employment numbers exceed 12%, are we crazy?  Anyone who would not vote for 60-cents per gallon higher gasoline and diesel fuel prices must vote for Proposition 23.”

NACS has leant its support to Prop 23 due to the message this ballot initiative sends to other states and federal officials contemplating laws and regulations similar to A.B. 32. NACS believes it is critical for policies to balance environmental objectives with economic realities. It was for this reason that NACS also opposed the federal Waxman-Markey cap-and-trade bill passed by the U.S. House of Representatives in 2009. Significant increases in utility and motor fuel prices not only harm individual consumers, it will place significant strain on convenience stores, 62% of which are operated as single-store companies.

Some Californians are concerned that the law could impose disproportionate economic difficulties on smaller communities, especially those that have not been required to endure similar environmental controls as the more congested regions of the state. Further, many are concerned that California’s efforts to address climate change independently is futile, serving only to place on Californians the entire burden of a global environmental issue.

"Prop 23 postpones the devastating effects of A.B. 32, the California Global Warming law which places the economic burden of climate change, a global concern, squarely on the backs of California citizens, benefiting only a few Silicon Valley venture capitalists," said NACS Treasurer Tom Robinson, president of Robinson Oil Company in Santa Clara.

NACS is also concerned that efforts at the federal level to address greenhouse gas emissions will place the United States at a competitive disadvantage in the global economy if other nations, like China and India, do not adopt similar emissions reductions policies.

For more information on Prop 23 and to learn how you can get involved, visit yeson23.com.