On November 14, 2012, California’s AB32 goes into full swing with the official auction of the California Cap N Trade program that is supposedly geared to reduce California’s CO2 emissions back to 1990 levels by the year 2020.
The bill signed by Governor Arnold Schwarzenegger in 2006 and introduced by Senator Fabio Nunez is guaranteed to wreck havoc on the California economy costing $185 billion dollars by the year 2020 to comply with the regulations.
The Cap N Trade regulation was not voted on by the people but is instead the work of Mary Nichols and the California Air Resources Board in her attempt to fund AB32 and the guidelines within the law to accomplish the goals.
The goals will be costly and generally cost every family in California up to $4500 annually for increased costs of energy, food and water. Low carbon fuels are scheduled to increase $2.50 – 3.00 per gallon from current levels and electricity to double as well as the resultant increases in water and food costs due to transportation increases.
The Fallbrook avocado industry is slated to be hit hard with exponential increases in water, energy and fertilizer costs which may be detrimental to this 100-year-old California industry.
The industry does have alternatives and could receive offsets under the law as an uncapped industry that assimilates CO2 and sequesters carbon while also receiving income under SB1572 funds to prevent California leakage due to the expected exponential costs of AB32 to industry and Californians.
J. James Lassle