Newsom, Schwarzenegger Celebrate Anniversary of Climate Law Amid Criticism
California's landmark AB 32, a cap-and-invest program, turns 20, but critics argue it has driven up fuel costs without significant climate benefits.
California Governor Gavin Newsom and former Governor Arnold Schwarzenegger convened this week to mark the 20th anniversary of Assembly Bill 32 (AB 32), the state's foundational climate legislation, often referred to as its cap-and-trade or cap-and-invest program.
Despite the celebratory tone between the two political figures, the program faces scrutiny. Critics contend that AB 32 has led to a significant increase in fuel prices for Californians, with estimates suggesting a 5% rise, or approximately 26 cents per gallon based on current prices. This increase disproportionately affects working Californians.
Furthermore, questions have been raised about the program's effectiveness in achieving its climate goals. The state's escalating wildfire activity has resulted in carbon dioxide emissions that, according to some analyses, have negated the emissions reductions achieved through AB 32 and other environmental measures over the past two decades.
Political Motivations
The public appearance of Newsom and Schwarzenegger has been interpreted by some as a strategic move for both politicians. For Newsom, aligning with Schwarzenegger offers a way to enhance his bipartisan image, particularly as national political ambitions are speculated. Schwarzenegger, in turn, may see this as an opportunity to maintain public relevance, despite a gubernatorial tenure marked by fiscal challenges and a decline in public approval.
AB 32, originally signed into law in 2006, established a cap on greenhouse gas emissions from the state's largest sources and created a market-based cap-and-trade system to reduce emissions. The program has since been extended and modified by subsequent administrations.
Critics argue that the program serves as a mere "virtue signal," allowing politicians to appear proactive on climate change without delivering tangible environmental benefits, while simultaneously increasing the cost of living for residents. The assertion is that California's contribution to global climate change is negligible, rendering such state-level policies largely symbolic.