CA Manufacturers & Technology Assn. Mike Rogge Greenhouse gas presentation to Cal EPA Climate Action Team workshop October 24, 2005

Californias greenhouse gas inventory over last ten years

Greenhouse gas reduction targets could have a chilling effect on new investment and plant expansions

California manufacturers face extremely high operating costs in the state, nearly 30% above the national average. In order to remain competitive, they have become the most productive and efficient manufacturers in the world. That means they produce more goods, with less inputs, including energy, than any other region. In this way, they are already helping to limit greenhouse gas emissions. Regulations that would cap existing emissions and force purchasing of emission credits would limit growth of manufacturers in the future. Competition is global, and adding new costs in California is not an option. California could lose high-paying, high-benefit manufacturing jobs to other, less restrictive, states or countries. Policies to address global issues should be the purview of the federal government. This would ensure that California companies are not disadvantaged compared to other companies in other states who do not have to comply with California rules. The federal government is also in the position to coordinate targets, compliance enforcement and regulations with other countries to protect the national economy. Concerns about regulations on manufacturers that could arise to meet the targets

CMTA Greenhouse Gas Emissions Principles 1.GHG programs must be structured to maintain a healthy economy in California and ensure the competitiveness of the states businesses. 2.Encourage energy conservation and efficiency 3.Support increased development, generation and use of cost-effective low GHG energy sources 4.Encourage investment in low GHG impact technology 5.Promote flexible, voluntary and incentive-based approaches to GHG reductions 6.Use staged approach to implementation