Orange County ranks among the worst metropolitan areas for job growth, according to an April report by Forbes magazine and newgeography.com.
It ranked No. 60 out of 66 areas with at least 450,000 jobs, making it just slightly better than the Inland Empire, which ranked No. 63, and slightly worse than the Los Angeles-Long Beach-Glendale area, which ranked No. 59.
Given these statistics, and with OC being a major contributor to the California economy, the greenhouse gas reduction law, known as AB 32, will only perpetuate the current situation and further deter private industry from investing here.
Among other mandates, the law, which was passed in 2006, requires major emitters such as oil refineries and food processing and cement plants to reduce their carbon or other greenhouse gas emissions by about 25% by 2020.
With this law and others like it, the days of “made in America” are becoming things of the past, as foreign countries are doing a better job of enticing Corporate America into investing its wealth.
Foreign competitors for our investments offer the following advantages over OC and the rest of California:
· They are more business friendly. That is, there is local government support for industry, fewer special interest groups and less potential litigation.
· They offer more cost effective labor, which is directly reflected in fewer entitlements to the labor force.
· They have significantly less stringent environmental laws, including those on carbon emissions.
California’s Global Warming Solutions Act of 2006, AB 32 continues to further the uneven playing field with other countries and states, and it is set to push out our last manufacturing industry, the one that manufactures transportation fuels.
During a recent testimony before the California Legislature, Business Relocation Coach Joseph Vranich identified more than 100 businesses that recently have relocated out of California or expanded outside the state, while just a handful have moved into California. This exodus trend may be hard to stop.
The cost impacts of AB 32 that will perpetuate the exodus of companies and jobs out of OC and California are:
· Up to 60% higher retail electricity rates, according to the Southern California Public Power authority.
· An 8% increase in natural gas costs, according to the California Air Resources Board.
· Increases in the cost of gasoline by 53 cents, according to the Environmental Protection Agency.
· A $50,000 increase in the price of a new home subject to the AB 32 Scoping Plan for a net zero energy home, according to the National Renewable Energy Laboratory.
· Higher prices for consumer goods due to increased fuel and energy prices.
Low income families will particularly suffer from the higher electricity, gasoline and natural gas costs, according to the California Air Resources Board’s economic and allocation advisory committee.
AB 32 also will increase California’s dependence on foreign sources for not only crude oil, but gasoline and diesel, increasing our vulnerability to the Organization of the Petroleum Exporting Countries’ policies and increasing funding to nations hostile to Americans.
Major beneficiaries of an AB 32 implementation are the countries, economies and employees of India, China, Saudi Arabia and Brazil, as their manufacturing of fuels accelerates in anticipation of major reductions in California’s ability to meet the energy needs of its own population.
Increasing the uneven playing field in an already depressed California economy by piling more rocks on the back of industry will only fuel the exodus of investments and jobs from OC and California.
Sacramento should be doing everything it can to attract businesses from other states and countries. Our Legislature should be considering incentives and methods to create a level playing field with other countries and states to keep the investments, jobs and technology here.
Stein is vice president of business development at Irvine-based staffing firm Principal Technical Services Inc., which provides engineering, information technology, and professional employees.
