Climate Change

Ag Council Speaks Out as CARB Adopts Climate Change Regulations
On October 20, CARB adopted the final climate change regulations for implementation of the AB 32 California Global Warming Solutions Act approved by the state Legislature back in 2006 and signed by then-Governor Schwarzenegger the same year. The regulations take effect in 2012 with enforcement starting in 2013.

Ag Council President, Emily Rooney, spoke on behalf of members at the CARB meeting. Rooney urged CARB to continue to strengthen cost-containment measures in the program and stated that creating a $10 price floor on allowances is counter-productive to this effort. She also reiterated Ag Council’s ongoing request that CARB move food manufacturers from the medium leakage risk category to the high leakage risk category due to increasing international and domestic competition and the inability to pass along costs to consumers.

By moving into the high leakage risk category, food manufacturing is provided more flexibility, and we help protect our agricultural economy.

As a reminder, AB 32 is the landmark climate change law approved in California to reduce the state’s greenhouse gas emissions to 1990 levels by 2020.

Click here for a video of Ag Council's statement at the October CARB meeting.

Study Approved by CARB to Look at the Impact of Climate Change Regulations on Food Manufacturing
Ag Council, along with the League of Food Processors, worked with the California Air Resources Board (CARB) staff to develop resolution language to conduct a study of agriculture and food processing as it is affected by the climate change regulation. Specifically, the study will review whether agriculture and food processing are able to pass on regulatory costs to consumers given existing domestic and international competition.

The resolution language, approved by CARB on Oct. 20, reads as follows:

Be it further resolved that the Board directs the Executive Officer to initiate a study to analyze the ability of the agricultural industry, including food processors, to pass on regulatory costs to consumers, given domestic and international competition and continually fluctuating global markets. The Executive Officer shall identify and propose regulatory amendments, as appropriate.

Ag Council looks forward to completion of the study to demonstrate the serious impacts of the regulation on our members. The study is expected to be conducted by an outside academic source.

Cap and Trade Compliance Postponed until 2013
In testimony before the Senate Select Committee on Environment, Economy & Climate Change, California Air Resources Board (CARB) Chair, Mary Nichols, announced in June that the AB 32 cap and trade program will begin in 2012, but that impacted entities will not be accountable for emissions compliance measures until 2013.

Nichols said, “We are continuing to move forward within the timeline the legislature assigned us under AB 32 and the program is on track to begin in 2012. However, in light of the importance of this regulation to the success of California’s climate change program and the need for all necessary elements to be in place and fully functional, we are proposing to initiate the program in 2012, but start the requirements for compliance in 2013.”

“This would not affect the stringency of the program or change the amount of emission reductions that the program will achieve, keeping us on track to meet the 2020 target required by AB 32,” Nichols said.

A public workshop will be held regarding draft changes to the regulation on July 15, from 9 a.m. – 3 p.m., at the Cal EPA building in Sacramento. Click here to read CARB Chair Nichols’ full statement.