Can California compete for the U.S. Manufacturing Renaissance?

Can California compete for the

U.S. Manufacturing Renaissance?

Jack Stewart President&Dorothy Rothrock VP – Govt. Relations

AB 32 - Layering of New Costs on California Manufacturers

Immediate impacts2012 through 2014 

• Auction tax – From $660 million to $3 billion (2012-13 budget year)

(assuming $10 to $50 per ton -- source: LAO)

• Electricity costs – $650 million to $2.6 billion to be raised and spent by the CPUC 

Long term impacts2015 through 2020 

• Up to $13 billion annual auction tax (starting in 2015)• Electricity cost increases – Almost $20 billion from RPS and Solar Initiative• Transportation fuels – 47 cents per gallon (Moody’s Investor Service)• Suppliers natural gas costs – up 8% (ARB econ analysis)

Manufacturing Investment Principles

• Predictable Future Costs

• Competitive Costs

• Adequate Infrastructure

• Access to a Skilled Workforce