“Stealth” initiative could stall AB32


Although there has been large opposition to California’s Prop 23, which would halt AB32 until the unemployment rate drops, another initiative could also derail AB32.

Prop 26 seeks to put “fees” in the same category as “taxes”, which would then require a two-thirds majority vote to levy any new fees. This legislative tie up would hinder AB32, which plans to collect fees from major emitters to pay for its administrative costs. Should Prop 26 pass, emitters could argue against the auction of GHG offsets under AB32’s cap-and-trade program as well.
While Republican Gubernatorial Candidate Meg Whitman has voiced support for Prop 26, Democratic candidate Jerry Brown has yet to take a stance although he is a strong supporter of AB32.