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TO: Members, California State Senate SUBJECT: AB 2558 (FEUER) LOS ANGELES COUNTY METROPOLITAN TRANPORTATION AUTHORITY: CLIMATE CHANGE MITIGATION AND ADAPTION FEE - OPPOSE I OPPOSE AB 2558 (Feuer), which would increase the price of doing business in the Los Angeles region by assessing an unfair tax vehicle fuel. California’s energy prices are already amongst the highest in the nation. This bill proposes a gas tax of up to 3% of the retail sales price. Such taxes in addition to the rising energy prices due to existing environmental initiatives are making it more and more difficult for California’s small businesses to remain in the state. The Air Resources Board (ARB) is already working on the AB 32 scoping plan. This plan will be the guidebook for putting AB 32 into motion and developing the regulations. Since AB 32 gives the ARB the ultimate authority to regulate the state’s greenhouse gas emissions it is important that local and regional entities refrain from setting up duplicative requirements. AB 2558 disregards the multiple levels of work being done at the Air Resources Board to reduce the state’s greenhouse gas emissions. Instead of working on a comprehensive, state approach to combating climate change, this bill would set up a climate change mitigation and adaptation expenditure plan funded by a new gas tax or tax on vehicles. Lastly, all state taxes should require a two-thirds vote. AB 2558 proposes a special tax for a specific purpose. Thus this bill should also be subject to a two-thirds public vote.