Comment Log Display

GPI would like to echo the suggestions made during the May 24 ARB
workshop to use some of the auction proceeds for project grants to
highly trade exposed industries covered under the cap and trade
program.  As members of the paper and paperboard industry, we are
highly trade exposed, producing a commodity product under very high
competitive pressures outside California as well as from overseas. 
 Studies of our industry have shown that our industry is beset by
foreign competition benefiting from extraordinary subsidies, tax
incentives, and low interest loans from their governments (China
and Korea), as well as price dumping here in the US.

We propose that some portion of the auction proceeds be used to
help highly trade-exposed industries fund greenhouse gas (GHG)
projects that reduce these emissions toward the 2020 state GHG
goal.   Industries like ours are having a difficult time funding
future GHG projects while remaining competitive on the business
front.  Setting aside some funds for project grants would help ease
these competitive concerns while moving our facilities toward a
smaller GHG footprint.  We don't expect a grant program to solve
all of our issues with foreign competitors, but it will ensure that
California's cap and trade program does not exacerbate them.
Without some of these auction proceeds flowing back to industry in
some form of assistance, we feel the cap and trade program becomes
an expensive tax program on California businesses, some of which
are highly trade exposed and provide solid jobs to our state's
citizens.