The Honorable Jerry Brown Governor of California
State Capitol, Suite 1173 Sacramento, CA, 95814

The Honorable Kevin De León Senate President Pro Tempore
California State Senate, Room 205, Sacramento, CA 95814

The Honorable Anthony Rendon Assembly Speaker California State Assembly,
Room 219, Sacramento, CA 95814

RE: C2ES supports extending CA’s cap-and-trade program and AB-398

Dear Governor Brown, President Pro Tempore de León, and Speaker Rendon:

As a climate focused think-tank, C2ES has a long history supporting market-based policies to address climate change. We congratulate you on the introduction of AB-398, which extends California’s precedent-setting cap-and-trade program. We believe this bill, along with the companion bill AB-617, demonstrate  how to address both the climate challenge beyond 2020 and local air quality concerns.

California’s steadfast determination to address climate change is a model for the country, as is its well-designed cap-and-trade program. Cap and trade ensures that the state’s aggressive goals are met cost effectively. Failure to extend the program would send a signal across the U.S. and globally that this type of program does not work, which would be false.

Cap and trade ensures that the state’s aggressive reduction target will be met. It also provides an incentive to invest in low-carbon technology, drives innovation, creates jobs and generates revenue. How to use any revenue is always contentious, but AB-398 lays out options that will help reduce greenhouse gas emissions and other types of pollution and ensure that vulnerable populations are protected.

California has demonstrated that an economy-wide cap-and-trade program can work. You are once again showing the world how progress toward a low-carbon future is possible. We strongly support a yes vote on this bill.

Respectfully,

Bob Perciasepe

President

CC: Assembly Member Eduardo Garcia Nancy McFadden, Office of the Governor Dan Reeves, Office of President Pro Tempore de León Carrie Cornwell, Office of Speaker Rendon Mary Nichols, California ARB