California Manufacturers & Technology Association - 2016 Guide - (Page 6)

5 Issues affecting manufacturers in 2016 every year CMTA works on hundreds of bills and dozens of regulations that matter to manufacturers. we don't have room to cover everything that could happen. The good news is you are a web-click away from CMTA articles and updates throughout 2016. until then, enjoy our selection of the most important issues coming up in 2016. by Michael Shaw California leadership on climate change increases energy costs for manufacturers we can all be proud of California's clean, low-carbon energy supply, but it has come at a high price for state manufacturers. Industrial electric rates are among the highest in the nation and transportation fuel costs are rising under regulations to meet 2020 greenhouse gas (gHg) emission goals. CMTA has been fighting for climate change policies that are cost-effective to keep manufacturers growing in the state. It's good for the economy and actually reduces global gHg emissions when manufacturers expand in California rather than shift production to locations where dirtier energy supplies would power those facilities. with 2020 on the horizon, governor Jerry brown and legislators are setting new greenhouse gas reduction goals for 2030 and beyond. Achieving these goals will require massive page 6 California Manufacturers investments in electric vehicles and charg- rates in California can be partly blamed ing stations, wind and solar electricity pro- on rising energy costs. electricity prices duction, and low carbon transportation in California have historically been 50 per- fuels. Manufacturers will see higher elec- cent higher than those facing manufactur- tric bills, supplier costs and transportation ers in other states. However, since the end charges. Higher housing costs to comply of the recession in 2010 the premium has with stringent building standards will put risen to more than 70 percent above the upward pressure on employee wages. national average. Transportation fuel costs For decades CMTA has been at in California are fourth highest in the coun- the forefront to protect manufacturers try without counting the 10 cent per gallon from higher energy costs. we intervene cap and trade related costs now embed- in utility rate cases at the California Public ded in each gallon of gasoline and diesel utilities Commission (CPuC) where resi- fuel. Cap and trade prices are expected to dential, commercial and industrial rates are rise between now and 2020. set to cover clean energy and all other util- More wind and solar power ity costs. CMTA makes sure that manufac- may lower gHg emissions, but there is a turers don't get saddled with costs that limit to how much intermittent power can should be paid by other customers. we be added to the electrical grid without also urge legislators to keep energy afford- imposing new costs to protect reliability. able and realize that green jobs inspired Managing swings in generation to match by aggressive environmental policies demand on the system threatens reliabil- will not support a vibrant economy and ity and imposes costs to avoid outages. make up for manufacturing job losses in California at times even pays other states the future. "green jobs" are still loosely to take power we don't need. defined but analyses show that they In 2016 the climate change account for less than two percent of total debates will continue across the country state employment. as the uS ePA pushes a new regulation to Low manufacturing investment control uS emissions. California should

Table of Contents for the Digital Edition of California Manufacturers & Technology Association - 2016 Guide

President's Message
Issues Affecting Manufacturers in 2016
Climate Change: California leadership on climate change increases energy costs for manufacturers
Workforce: Growing the next generation manufacturing workforce
Tax: Tax battles will heat up in 2016
Drought: Make sure the drought doesn't leave you high and dry
Workers' Comp: Workers' comp reforms needed sooner than later
California Needs Manufacturing More Than Ever
8 Ways California Manufacturers Can Fight and Win in 2016
A Few More Things

California Manufacturers & Technology Association - 2016 Guide