AB 32 admin fees should be fair, equitable and limited

By CMTA Staff

Capitol Update, Feb. 1, 2008 Share this on FacebookTweet thisEmail this to a friend

Not long after the landmark global warming bill was signed into law, AB 32 author and Speaker of the Assembly, Fabian Nunez (D-Los Angeles), made a formal statement clarifying the type of fees the Air Resources Board (ARB) can levy pursuant to the bill.

ARB’s authority to levy fees, wrote Nunez in a letter published in the Assembly Journal, is limited to administrative fees.

ARB and the Schwarzenegger administration have yet to come up with a proposal for AB 32 fees, although it is widely expected they will do so before the end of 2008.

The AB 32 Implementation Group, a broad business coalition led in part by CMTA, recently submitted a letter to ARB laying out a set of principles to guide the adoption of "fair and equitable" AB 32-related funding and fees.

The coalition is a positive voice in the regulatory and legislative process following the passage of AB 32 to ensure that the required greenhouse gas emission reductions happen while protecting jobs and the economy.

For starters, the letter urged, the use of fees should be limited.  General fund monies should be utilized instead, given that much of AB 32 addresses societal or public impacts.

Among the other principles outlined in the letter:
    • Program funding should be capped;
    • Fee formulas should fund no more than program needs and be subject to annual audits and review;
    • Fees should be fair, appropriate and balanced in a manner that does not impose, burden or give an advantage to one business or industry sector over another.
    • Fees should be stable, predictable and understandable, and sunset after five years, with legislative approval required for reauthorization; and
    • Pursuant to AB 32 and Speaker Nunez’s letter, fees should be limited to ARB administrative costs.
More information about the AB 32 Implementation Group is at www.AB32IG.com

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