A mass exodus of business and jobs out of California will be the likely result of this madness. From the San Franscisco Chronicle:
Free and paid credits
Businesses that emit more carbon dioxide than is allowed under the law will have to use “allowances” – or credits – to make up for the difference. The allowances will be mostly free when the program starts in a little more than two months, but eventually businesses will have to purchase credits in an auction – a sort of penalty for exceeding the limit. The board’s major action on Thursday was to finalize how credits will be allocated.
The opposition from the industrial sectors, like glass manufacturers and oil refineries, strongly objected to the initial requirement that forces these businesses to pay for 10 percent of their credits. They said paying for the allowances – one previous idea was that they be free – will be crippling as businesses in other states and countries will have a competitive advantage.
Higher water rates
Multiple representatives of water agencies, mainly in Southern California, also told the board that because the regulation covers their energy usage, water rates would increase.
The cost will be about $2.50 per year per household, said air board spokesman Stanley Young, explaining that utilities are covered by the law because of the electricity used in moving water from Northern California to Southern California.