The California Manufacturers & Technology Association (CMTA) has expressed strong opposition to advancing a cap-and-trade deal in the final days of the legislative session. The organization, which represents 34,000 manufacturers across the state, is urging lawmakers to delay any decision on reauthorizing the program until a more transparent process can take place.
“California’s 34,000 manufacturers work hard to keep goods affordable, but poorly crafted policies drive up costs and make families pay more,” said Lance Hastings, President & CEO of CMTA. “There’s no rush on cap-and-trade this year. Waiting will allow for a transparent process that leads to better outcomes for all Californians.”
Cap-and-trade remains one of California’s central climate policies and has significant effects on manufacturing by influencing energy prices and the overall cost of goods and services. The policy also contributes billions in funding toward climate investments while providing a mechanism for reducing emissions affordably.
Manufacturers have participated in California’s cap-and-trade program for nearly two decades and have consistently paid into it. CMTA maintains that their members should be included in discussions about any potential reauthorization. With less than a week remaining before the end of the legislative session, no bill language has been released publicly.
CMTA identified three main concerns with current proposals: lack of transparency due to negotiations happening behind closed doors; affordability risks stemming from higher allowance prices, restricted offsets, and reduced industrial protections; and threats to competitiveness that could lead to job losses or investment moving out of state.
“The current program is working,” Hastings said. “Any reauthorization of cap-and-trade must be workable and durable. That will take time to craft. A last-minute deal would only destabilize the program, harm families, and drive jobs out of California. Manufacturers are calling for lawmakers to slow down and get this right.”
The existing cap-and-trade framework does not expire until 2030. According to CMTA, postponing action until next year would give policymakers time for a thorough review involving manufacturers and other stakeholders.
“No bill is better than a bad bill,” concluded Hastings.
Founded in 1918, CMTA advocates before the legislature and administrative agencies on behalf of pro-growth laws affecting manufacturers in California. Manufacturing accounts for approximately $300 billion annually—about 10 percent of California’s total economic output—and employs 1.3 million people at wages significantly higher than those offered by other non-farm employers in the state.
