July 18, 2017

Cap-and-Trade Program Extension Approved

Yesterday, California lawmakers approved the extension of the cap-and-trade program to 2030. Assembly Bill 398 now heads to Governor Brown’s desk for signing.

California’s cap-and-trade program was originally established in 2006 with AB 32, which required a reduction in greenhouse gas (GHG) emissions to 1990 levels by 2020. Last year another bill, SB 32, was passed and signed by the governor, and required that the California Air Resources Board (CARB) further reduce GHG emissions to 40 percent below 1990 levels by 2030. However, SB 32 did not extend the cap-and-trade program beyond 2020. Without a cap-and-trade program, CARB’s only alternative would be to implement a command and control system that would force additional economic harm onto agriculture.

Western Growers, along with other industry groups, has been actively engaged on this issue throughout the year, and the administration has recognized the legitimacy of our concerns associated with the state’s climate policy and its specific impact on agriculture. We look forward to working with the administration and Legislature in the weeks ahead to ensure that our industry has the assistance required to meet the state’s established environmental mandates. 

For more information, contact Matthew Allen at (916) 446-1435.