SB 350 Fight Reveals Potential For Blunting California’s “Unstoppable” Regulatory Zeal

John E. Husing, Ph.D.Chief Economist, IEEP

Environmental Perfectionvs.

Public Health

Robert Woods Johnson Foundation

Economic growth and job creation provide more than

income and the ability to afford health insurance and

medical care.  They also enable us to live in safer homes

and neighborhoods, buy healthier food, have more leisure

time for physical activity, and experience less health-

harming stress. 

In that way, economic policy is, in fact, health policy.

Key Determinants of Public Health

Causes of Public Health Difficulties

1. Socio-Economics 40%

2. Population’s Health Behaviors Related to Poverty 30%

3. Access to Medical Care Related to Poverty 20%

4. Environmental 10%

Source: Different Perspectives For Assigning Weights To Determinants of Health, University of Wisconsin, Public Health Institute, 2010

90%

PovertyCalifornia’s Policy Vacuum

Share of People In Poverty

Social Justice Issue

Educational Attainment: High School or Less

California Environmental PoliciesUnintended Consequences

PM 2.5: Diesel Pollution

-95.6%

Job Quality

Mgmt & Professions California: 14.4% Inland Empire: 5.1%

Gold Mine Theory

Primary Tier

Secondary Tier

What is Needed To Attack Poverty?

•Sectors With Few Education Barriers to Entry

• Median Incomes Approaching Middle Class Earnings

• Skill Ladders Up Which Workers Can Move To Median Incomes

• Sectors That Are Adding Jobs

Median Incomes Near To Middle Class Needs, Minimum Entry Level Requirements

Middle Class Earnings, Minimum Skills To

Enter

Manufacturing

SB 350Will Worsen This

CA Is Not Loved By Executives or Entrepreneurs

CA Just 2.9% of U.S. Manufacturing Job Creation

CA Sector Growth

Who Is Hurt?

Workers Whose Jobs Are Never Created

Workers Whose Jobs Are Lost to Other States

Whose Districts? Largely Mod-Democrats

Logistics

Industrial Construction, 2015

CA Sector Growth

8.9% of Total Job Growth

Indirect Source Rule Proposal

1. New Warehouses Would Pay Fees To Offset Trucks They Might Attract

2. AQMD Study uses 95% Highest Attractor Per Square Foot As The Standard

3. Intent Is To Slow Or Stop Warehousing Development In The Inland Empire

4. Rationale Is AQMD Can’t Meet Its EPA Target Without Cutting Truck Trips

5. Impact Would Hurt The Inland Empire’s Strongest Economic Base Sector

Who Is Hurt?

Workers Whose Jobs Are Never Created

Workers Whose Jobs Are Lost to AZ or NV

Whose Districts? Largely Mod-Democrats

Construction

CA Sector Growth

8.3% of Total Job Growth

CEQA Repeatedly Abused

• NIMBYS Wanting To Stop Projects, Drive Up Their Costs

• Lawyers Using Threat Of Suits As A Cash Cow

• Business Wanting To Drive Up The Costs Of Their Competitors

• Unions Using Threat of Suits To Force Developers To Use Their Members

CEQA abuse and ‘social justice’

By San Diego Union-Tribune Editorial Board Aug. 4, 2015

Whose Is Hurt?Families Forced Inland

Whose Constituents? Democrats

Energy

SB 350 Would Have Raised Petroleum Prices Dramatically… Affecting Lower Income Families

Why gas prices in California are so much higher than elsewhere in U.S.

March 31, 2015

Whose Districts? Largely Mod-Democrats

State Policies

SB 350 Coalition: A View Of State Power & The Future?

Mod-Democrats … Job Friendly

Republicans … Business Friendly

www.johnhusing.com