A pair of big California companies made national headlines last month when they pulled out of the US Chamber of Commerce over that business group’s stand on global warming. The departure of Apple Computer and Pacific Gas & Electric has proved to be a public relations black eye for the venerable organization.
These moves could prove to be a taste of things to
come. The business community seems to be headed for
further splits, as more companies shift from what has
traditionaly been thought of as the business position—denying the reality and/importance of man-made climate change.
The US Chamber sought to walk a fine line, publically
acknowledging that they “are not debating the science behind global warming,” even while they oppose climate change legislation
working its way through Congress. Closer to home, the
California Chamber of Commerce is dealing with a somewhat
similar dilemma—speaking in support of AB 32, the state’s 2006 global warming law, while fighting some of the costlier
aspects of its implementation.
The CA Chamber has not been getting any pushback from
members on their climate change positions, said spokeswoman
Denise Davis.
“Our position is not the same as the US Chamber,” Davis said.
Shelley Sullivan, a spokeswoman for the AB 32 Implementation Group, called the US and Cal Chambers
“apples and oranges.” The Implementation Group is a joint venture between
the CA Chamber, the California Manufacturers & Technology Association (CMTA), and numerous member businesses. It has frequently
fought with regulators, mainly at the California Air
Resources Board (CARB), over implementing AB 32.
“Our group understands AB 32 is the law in California and AB 32 is too important to get wrong,” Sullivan said. “Which is why the AB 32 Implementation Group believes it is critical that
a sound economic analysis of true implementation costs
must be conducted. AB 32 is quite ambitious and we must strike the right balance
in protecting the interests of California’s consumers and workers as we move forward.”
But Mark McLeod, chair of government affairs at the
Berkeley Chamber of Commerce, said that he considers
both the Cal Chamber and the US Chamber similar when
it comes to dealing with climate change. The Berkeley
Chamber maintains no affiliation with either group.
“Both of those organizations tend to be very retrogressive,
conservative and unhelpful in moving good climate change
legislation forward,” said McLeod, who is also the executive director of
the nonprofit Sustainable Business Alliance.
McLeod added, “I don’t particularly want to be involved in a local chamber
if it’s sending dues to the state Chamber or the US Chamber.
I don’t know any of the local chambers down here who are
dues paying members of the state or US.”
Actually, across the Bay, the San Francisco Chamber
does maintain relations with both groups. But they’re also pushing back on the climate change issue.
Early last month, about the same time Apple was said
it was leaving the US Chamber, the San Francisco Chamber
announced that it would no longer automatically enroll
its member businesses as members in the US Chamber.
This was a fairly typical set-up—membership in most chambers of commerce is reserved
for actual businesses, not for smaller chambers, but
many local chambers have this type of relationship
with state, regional or national bodies.
“As the US Chamber position on climate change became
more and more difficult to defend, it caused concern
with our membership,” said Rob Black, a vice president with the San Francisco
Chamber.
San Francisco Chamber CEO Steven Falk addressed the
split in a regular column he writes about climate change
in a monthly newsletter. November’s column, “Chambers of Commerce Are Not All Alike,” he quotes PG&E CEO Peter Darbee accusing the US Chamber of being
intellectually dishonest in their opposition to climate
change legislation, and said the US Chamber’s position that motor vehicle emissions don’t harm human health hurts the group’s “credibility.”
The SF Chamber’s Black does not subject the Cal Chamber to that type
of criticism. But he added, “You’d be hard pressed to say the [AB 32] Implementation Group has not tried to delay the process.”
When AB 32 was in front of the Legislature in 2006, the bill was on the Cal Chamber’s “Job Killer” list of bills they wanted to defeat. When asked what
changed between then and now, the Cal Chamber’s Davis said: “What changed is it was signed by the governor. It’s now law in California. We want to be sure it’s implemented in the most cost effective manner.”
While environmentalists hailed AB 32 as one of the most important climate change bills
ever passed, many have criticized the implementation
phase that followed. This began early, when Governor
Arnold Schwarzenegger issued an executive order moving
many of the rule making powers from CARB to the California
Environmental Protection Agency (Cal/EPA), an agency many feel is more under the control of
the often business-friendly governor.
More recently, the AB 32 Implementation Group has criticized the millions in
administrative fees collected by CARB to implement
the law. This led dueling letters on the pages of the
Capitol Weekly between Dorothy Rothrock, vice president
of government relations for CMTA, and ARB chair Mary
Nichols.
There are also inherent differences between different
industries and different-sized companies. The AB 32 Implementation Group and CMTA have often argued that
the law could hurt small businesses. A July report
from Varshey & Associates, a consulting firm run by Sacramento State
Business professor Sanja Varshney, warned “the implementation costs of AB 32 could easily exceed $100 billion upfront,” much of that borne by small business. The study was
commissioned by the California Small Business Roundtable.
Unlikely, said Tom Bowman, founder of Signal Hill-based Bowman Global Change. The costs of AB 32 fall more on big, polluting industries, he said, not
the typical mom-and-pop operation. As an experiment, he said, his small
consulting company set out to see how much of its carbon
footprint it could reduce between 2006 and 2008. By trading in a company SUV for a Prius, changing
employee commuting habits, changing out copying systems,
he said, they were able to reduce their carbon output
by 65 percent.
The best part, he said, was that over a two year payoff
period, these changes are actually saving money. In
fact, he said, the greater energy efficiency that California
companies have is actually a competitive advantage
over firms in other states, because they save money
over the long term. But he acknowledged, that, as they
say, results may vary.
“If I ran a trucking company, it might not be this way
because I’d be burning diesel fuel all day,” Bowman said. “No two businesses are alike.”
