Manufacturers Speak Out on Concerns Regarding Administration of California Greenhouse Gas Regulations

High Revenues Generated Exceed the State’s Authority, Harm Competitiveness

National Association of Manufacturers (NAM) Vice President of Litigation and Deputy General Counsel Quentin Riegel released this statement on the NAM intervening in the California Chamber of Commerce lawsuit challenging the California Air Resources Board (CARB) over the revenues generated for the state’s administration of greenhouse gas regulations:


“Manufacturers remain concerned with the extremely high revenues generated by the auction system implemented by CARB to administer California’s new greenhouse gas regulations. The intent of the program is to simply reduce emissions. However, the income generated by the auction far exceeds the costs needed to run the program. This income stream goes beyond the legal authority of the state’s CARB and constitutes a new tax, requiring the legislature’s approval.


The NAM’s intervention focuses not on the legality of the cap-and-trade program itself but on the extraordinary revenues generated by the auction and reserve sale provisions adopted by CARB. The auction as carried out by CARB will drive up energy costs for manufacturers in California, harming their competitiveness and ability to grow. Manufacturers use one-third of our nation’s energy supply, making access to affordable energy critical to their ability to create jobs and invest in the future.”