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Will climate law freeze jobs? - Review bolsters Republican claims on controversial bill

SACRAMENTO - The state's landmark global-warming law likely will lead to modest job losses in the near future, according to a nonpartisan review that bolsters a growing Republican movement to shelve climate regulations until the economy recovers.

The Legislative Analyst's Office said it has determined businesses will face higher electricity and fuel prices as well as costly investments to improve building and heating standards. However, it did not calculate average costs to businesses or say how many jobs might be lost.

The findings were included in a letter the analyst's office sent to Sen. Dave Cogdill, a Modesto Republican who has been critical of the law. He released the 10-page letter Tuesday.

The news wasn't exactly a surprise to Republicans and many businesses, who have argued against the legislation - Assembly Bill 32 - from the outset.

"It's obvious to us, and to anybody who takes a rational look, that this ... is going to increase costs on businesses and residents," said Curt Hagman, a Republican whose district spans from Chino Hills to La Habra.

The legislative analyst's review did say the effect on the state's overall economy is expected to be small.

California's global-warming law was signed in 2006 by Gov. Arnold Schwarzenegger, who has argued it will spur green technology jobs. The law requires the state to cut

greenhouse-gas emissions by 30 percent by 2020.

Among the supporters of suspending the bill's regulations is Fritz Hitchcock, CEO of Industry-based Hitchcock Automotive Resources, which owns auto dealerships in the region.

For Hitchcock, the emission standards are too stiff for businesses still reeling from a more than two-year- old recession.

"It's totally unrealistic. They just set such unrealistic goals with no idea of how commerce in general would be affected by such rules," said Hitchcock, who is also chairman of New Majority California, an advocacy group he said will fight the emissions regulations.

Both Hitchcock and Hagman agreed with the LAO that jobs will be shed and the cost to business will rise. They added that many firms, citing the burden of increased regulation, have left the state.

But Democrats noted that the

global-warming law has not caused California's rise in unemployment, which stands at 12.5 percent. The law's most sweeping provisions don't go into effect until 2012   Read Full Article...