IN THIS ISSUE:
The future of business with AB32 implementation;
Influence of Labor Unions with California elections;
Food shortage at the food banks affecting children;
Nominate a LEADER of the North Bay- DEADLINE EXTENDED!;
Members in the news...


The future of business with the Global Warming Solutions Act of 2006 (AB 32)

AB 32 (The Global Warming Solutions Act) will impact every person and business in California. This new carbon constrained economy will result in the imposition of far reaching rules that require greenhouse gas emissions (GHG) to be brought back to 1990 levels (a near thirty percent reduction) by 2020, and an eighty percent reduction threshold by 2050. Over the next few months, the California Air Resources Board will determine how these targets will be achieved and the results will present new challenges and opportunities for Californians.

One of the first challenges for California with AB32 implementation is the growing state population. As the population increases (by millions in 2020), it becomes more difficult to reduce GHG emissions to 1990 levels. Implementing AB32 will mean changing the ways Californians live and do business. With such a bold effort, there is heightened uncertainty about new rules and regulations, and unknown costs. Given the current economic climate, these concerns need to be addressed and mitigated so that implementing AB32 can focus on creating new opportunities.

 
For a better look at the above slide, click here to download.

The AB32 Implementation Group, a coalition of businesses throughout the state, is doing their best to spotlight opportunities and minimize challenges. This group has developed six business principles to guide regulators and other stakeholders in designing the regulatory process. The six principles have three overarching goals in how the targets can be reached:

Goals:

• How can California achieve targets for reducing emissions at the lowest costs?
• How can we maintain a strong California economy and avoid potential harm?
• Are there ways for California businesses to grow and profit by reducing greenhouse gas emissions?

Principles:

1. Reduce global emissions and keep jobs in California
 The implementation must weight equally the reduction in emissions and retaining jobs; emphasizing one over the other will produce failure.

2. Provide regulatory certainty
 Uncertainty makes business reluctant to invest in expensive upgrades in their plants, equipment and operating methods, especially if they fear some or all of their activity will be penalized or disallowed after the upgrades are in place.

3. Use sound scientific methods
 The state needs to take care and use evidence-based deliberation in setting new emission standards, rules and policies to avoid unintended consequences and shifting targets that lead to wasted investments and time in businesses trying to come into compliance.

4. Impose only cost-effective and technologically feasible regulations
 Cost-benefit analysis must be the standard for evaluation of proposed regulations. The appropriate metric is: How much carbon will we keep out of the atmosphere for each million dollars in costs? New technologies must be tested for soundness before being required.

5. Promote innovation and market-based strategies
 The advantage of market-based solutions is that they allow the state to set targets and then let the individual businesses devise the most cost-effective GHG reduction strategies, which will promote innovation and new products.

6. Minimize and fairly allocate compliance costs
 Costs associated with implementing AB32 include:
a) The cost of devising and administering the GHG reduction program, which will be borne by the state and its taxpayers.
b) The costs of complying with the new rules and regulations, which will be borne largely by the private sector.
c) The costs of GHG related research and development programs, which would be public/private partnerships.

One way to minimize costs, which is being discussed, is a "cap and trade" emissions trading system. A hotly debated emission reduction tool, "cap and trade" is the establishment of a market mechanism to reduce greenhouse gas emissions as an alternative to traditional command and control regulations. Under a "cap and trade" system, emission sources will be allocated (or forced to purchase) an allowance of CO2. Depending upon how the market is designed, emission sources that voluntarily reduce emissions can sell their surplus to others. Experts argue that a well designed emissions trading program will provide especially lower cost reductions in CO2 while spurring the use of new technologies.

Approximately sixty percent of GHG emissions come from cars. Additionally, the largest contributors to vehicle traffic are commuters. Every day commuters, especially those driving alone, pump out GHG emissions which are the driving force behind global warming. AB 32 will hold employer companies accountable for the "vehicle miles travelled" by your employees and the resulting amount of GHG emissions produced. It will be difficult for you to reduce your emissions back to 1990 levels if the majority of your employees do not live close to the workplace and travel long distances alone in a car.

For a better look at the above slide, click here to download.

To come into compliance with the reductions mandated by AB 32, many employers are seeking ways to change how their employees commute to work. One of the major shifts is getting their employees out of their cars and into transit. Commuters and employers want alternatives to Highway 101 because of traffic congestion, closures and a desire to attract and retain quality employees. Employees are also looking for ways to commute that don't break the bank now that gas is approaching $5.00 per gallon.

One alternative is the proposed Sonoma Marin Area Rail Transit (SMART) passenger train service. The SMART passenger train service will give employers and their employees a choice that is cheaper, faster, cleaner and less stressful than commuting alone in a car. The seventy mile train path will offer employers and employees an alternative to Highway 101 that will greatly reduce the GHG emissions. In addition, the companion bicycle-pedestrian pathway that will run along the rail line will provide another alternative for those employees who live within range of their workplace.

Employers will want to pay attention to the ability to co-locate jobs and workforce housing as a measure to reach AB32 targets. A recent article in the Wall Street Journal, Suburbs a Mile Too Far for Some (June 17, 2008), showed how the suburbs were losing their charm for many commuters who were abandoning them to move into more transit oriented areas in order to escape high gas prices and long commutes. Christopher Leinberger, a visiting fellow at the Brookings Institute, describes the structural shift of people moving back into transit corridors as "the beginning of the end of sprawl." The desire to reduce dependency on fossil fuels and live where public transit and foot power allows them to get to work, shop and recreate without getting in a car is growing a fast pace.  Changes are coming from AB32. Hopefully, the business community working in concert with other stakeholders can make these changes good for the environment and their firms' bottom lines. One thing is to be sure: It is time to pay attention to what is being proposed and weigh in so that the business community's voice is loud and clear on what will work and what is reasonable. 

2008 Political Backup: Influence of labor unions in California elections

About NBLC:

North Bay Leadership Council is a non-profit organization of employers committed to regional prosperity and quality of life. Seventeen years ago, business leaders founded the North Bay Leadership Council on a simple premise: We can accomplish more by working together.

Today, the Council includes over 30 select employers in the region. Our members represent a wide variety of businesses, non-profits and educational institutions, with a workforce in excess of 20,000. We are working together to advocate and sustain prosperity and quality of life in Sonoma and Marin Counties.

As business and civic leaders, our goal is to promote sound, regionally-focused public policy and support initiatives that make our region a better place to live and work.

NBLC is responsible for producing Economic Insight Reports, most recently on the "Economic Impacts of a Water Shortage in the North Bay." For more information please call 707.283.0028 or visit us at www.northbayleadership.org.

In this very political year it is interesting to note the groups who have had an influence on shaping political platforms and campaign coffers. This year notable groups are the labor unions. Active both locally and on the national scene, the labor unions are major donors to both candidates and independent expenditure campaigns. Since the 1950s the percentage of the American private workforce that is unionized has shrunk from thirty-five to seven percent in 2008, which is a loss of eighty percent of their market share.

But in the public sector, the unions have seen growth in their members, especially in California. In an article by Ruth Milkman and Daisy Rooks, California Union Membership: A Turn-of-the-Century Portrait, differences are described in California unions and the rest of the nation. According to Milkman and Rooks, public-sector and health care unionism have been the main source of organized labor's growth throughout the nation in recent decades, but California has moved far ahead of the United States as a whole, with much higher density rates in the state than in the nation. Whereas union density in 2001-02 was 37.6 percent for public-sector workers nationally, in California, it was a far higher 53.8 percent. The gap in density rates in the private sector for the nation and state was much smaller, with rates of 8.8 percent and ten percent respectively. Similarly, union density in health care was ten percent nationally, but seventeen percent in California. The Service Employees International Union (SEIU) is the state's powerhouse in both these sectors.

Milkman and Rooks point out that another public-sector heavyweight, and the second largest union in the state, is the California Teachers Association (CTA), which is affiliated with the National Education Association (NEA), but not with the American Federation of Labor and Congress Industrial Organizations (AFLCIO). Together with the California School Employees Association; another large union that represents a variety of workers (other than teachers) employed in public schools; the CTA dominates the heavily unionized education sector. The two together represent almost three-quarters (71.6 percent) of all California union members employed in education.

The SEIU's overarching role is one unusual feature of the California labor movement. Another is the presence of a few large unions that are not directly affiliated with any larger national or international union and in which membership is either exclusive to the state or overwhelmingly concentrated there. Examples include the California Nurses Association (CNA), the California Correctional Peace Officers Association (CCPOA), and the United Farm Workers (UFW). Numerically, the most important of these unaffiliated unions is the above mentioned California School Employees Association (CSEA). The CSEA represents seven percent of the state's union members, and its share of public-sector dues-payers is an even greater 13.4 percent, a larger share than that of any organization other than the SEIU and the CTA.

Milkman and Rooks conclude that union membership in California is highly concentrated in a small number of unions that represent the bulk of the organized workforce. California public-sector union membership was even more highly concentrated in 2001-02, with only five unions accounting for more than two-thirds of the members. For most of the twentieth century, the San Francisco Bay Area had by far the highest level of union density in the state of California.

For a better look at the above slide, click here to download.

Noting another crucial factor that sets California apart from the nation as a whole is organized labor's extensive political influence in the state, particularly in the past decade. Milkman and Rooks see that through involvement in electoral politics and the legislative process, California unions increasingly have been able to use their political muscle to make organizing gains, source of influence that is conspicuously absent on the national level.

The state Fair Political Practices Commission advised that a small number of well funded special interests have poured nearly $100 million into "independent expenditures" (IE) benefiting candidates for state office since voters placed limits on the size of direct contributions to candidates. The state's Fair Political Practices Commission has updated its report on independent expenditures to include spending in the June 2008 primary election, which totaled $11,783,605. Combined with the $88,088,500 spent on independent expenditures from January 1, 2001 through December 31, 2006, the total for all independent expenditures spent on behalf of state and legislative candidates is $99,872,105.

The newly updated report, Independent Expenditures: The Giant Gorilla in Campaign Finance (http://www.fppc.ca.gov/index.html?id=509), provides information on the ten legislative races where independent expenditure spending was the highest in the June 2008 primary elections. Those contests include the North Bay's Third Senate District Democratic primary where IE spending totaled $1,445,155, much of it coming from pubic union independent expenditure committees.

From the political to the critical

When the kids get out of school, it usually is time for carefree enjoyment of the summer. That's not the case this year. An article in Bloomberg.com says that food banks are having a hard time meeting the increased demand of food for children because of schools in recess, rise in food costs, hard economic times and a fifty-nine percent drop in goods provided by the federal government to the food banks. Community Action Partnership (CAP), Santa Rosa, said on the first day of their children's free meals program, ninety children lined up for a meal but only fifty meals were available. Vince Harper, director of youth and neighborhood service at CAP, said, "It's a terrible feeling. You have to tell them to come back tomorrow, and hopefully they will."

Food Banks all over California are scrambling to meet the need seeing double digit increases in demand. Demand is not just higher because of the lack of school provided meals, people are struggling with high gas prices, unemployment and high costs of housing. Food Banks are reporting long lines and even longer waits to get less food than before. According to David Goodman, executive director of Redwood Empire Food Bank, Santa Rosa, "People used to get two bags of groceries for the month, now it's four to six cans."

Jessica Bartholow, California Association of Food Banks, says that out of 36.5 million residents in the state, food banks serve about five million people per month. There may be some relief this fall if the new federal farm bill provides a fix to the restrictions on obtaining food stamps, as California has one of the most restrictive policies. But in the meantime, says Bartholow, "We're looking at a summer without food. I haven't seen people this scared."

If you want to help out the local Food Banks, please contact them directly at:

Marin Community Food Bank
75 Digital Drive, Novato, CA 94949
Director: Ann Rogers
Phone: (415) 883-1302, Fax: (415) 883-5178
E-mail: marinfoodbank@aol.com

Redwood Empire Food Bank
3320 Industrial Drive, Santa Rosa, CA 95403
Director: Jean Larson
Phone: (707) 523-7900, Fax: (707) 523-7901
E-mail: jlarson@refb.org

Community Action Partnership
1300 North Dutton Avenue, Santa Rosa, CA 95401-4610
Phone: 707.544.6911
Program Director: Vince Harper
vharper@capsonoma.org  

Nominate a LEADER of the North Bay!

North Bay Leadership Council (NBLC) is seeking nominations for the 2008 LEADERS OF THE NORTH BAY AWARDS. NBLC created these awards to recognize leaders within businesses, nonprofits, and organizations who contribute to improving the quality of life and prosperity of the North Bay.

"We can help inspire a culture of leadership by gathering together and identifying people who have stepped forward in our region to tackle tough issues. We want to reward that kind of leadership and showcase these tremendous examples, showing that one person or one organization can make a difference," said Steve Page of Infineon Raceway and NBLC's past Chairman. The awards are intended to highlight the contributions made by organizations, groups or individuals. In 2007, Mary McEachron, who was honored for her work on creating the Buck Institute for Age Research, said "It's always an honor to be recognized by your peers whom you so greatly respect. This awards luncheon is a particular honor because a group such as North Bay Leadership Council represents a multitude of leaders within the North Bay; their goal to promote a culture of leadership and regionalism between Marin and Sonoma counties is inspiring."

Other past honorees include S.H.A.K.E. (Support Healthy and Active Kids in Education) Partnership, honored for their community work with children and education; Codding Enterprises, honored for their remarkable work with the eco-friendly Sonoma Mountain Village project; Goodwill Industries of the Redwood Empire, honored for their electronics recycling and job promotion program; and Alma Velasquez Martinez, honored for her community outreach within schools to the Latino community. NBLC congratulates last year's honorees for setting the tone for a long lasting tradition of recognizing leadership within our North Bay community.

The 2008 award categories are as follows:

Caught in the Act of Leadership
Individual excellence in leadership: Recognition of an individual who was "caught" demonstrating excellence in leadership.

We're All in this Together
Community building: Recognition of leadership in corporate philanthropy or volunteerism, civic engagement, or other community initiatives.

Paint the Community Green
Environmental stewardship: Recognition of leadership in green business, green building and/or environmental stewardship.

The ‘Light Bulb' Went On
Innovative/entrepreneurial spirit: Recognition of creativity, innovation and the entrepreneurial spirit.

Empowering the Latino Community
Leadership within the Latino community: Recognition of efforts to empower and strengthen the Latino community through education, job training, cultural awareness, and business development resources.

MEMBERS IN THE NEWS:

KRCB-TV

KRCB-TV wins two more EMMY® Awards for "NATURAL HEROES," for the second consecutive year. KRCB Public Television's nationally distributed environmental series, NATURAL HEROES, has won recognition from the National Academy of Television Arts and Sciences. KRCB Producer Valerie A. Landes received two EMMY® statuettes for Outstanding Achievement in two categories: Children/Youth and Education/Schools. KRCB President and CEO Nancy Dobbs is "especially proud that both episodes are focused on young people and education." The episodes of NATURAL HEROES honored by the Academy are "Fruit Tree Tour" and "A School in the Woods." Both independent films tell the stories of urban kids getting their hands in the dirt and connecting with nature for the first time.

Fireman's Fund Insurance Company

Fireman's Fund Insurance Company is the winner of 2008 American Business Award, and was honored for having the Best Corporate Social Responsibility Program in the Country. In recognition of the achievements and success of Fireman's Fund company has been awarded a 2008 American Business Award for Best Corporate Social Responsibility Program in the nation. In the past four years, Fireman's Fund Insurance Company has donated more than $18 million to over 1,000 different fire departments across the country. The equipment purchased through those donations has saved an untold number of lives. Thousands of firefighters are better equipped to respond to emergencies and a number of local communities are safer because of it. "We are honored to receive this award," said Mike LaRocco, president and CEO of Fireman's Fund Insurance Company. "Our entire organization, from employees to agents, is committed to helping make local communities safer, and this program does just that." The American Business Awards, also known as The Stevie® Awards, are one of the top honors in the business world. They recognize the achievements and positive contributions of organizations and business people worldwide.

W. Bradley Electric, Inc.

W. Bradley Electric (WBE), Inc. is proud to announce their expansion into the South Bay. WBE, Inc. has been supporting clients in the region for twenty-five years, so the new location will reinforce their efforts to serve new and existing clients' needs for a strong contractor that can help them with their projects as a single source provider for electrical contracting, telecommunications cabling, security, audio visual, network, and traffic signal/street lighting. The office is located in Redwood City. In Novato, they have outgrown their 28,000 square foot office and warehouse at 90 Hill Road, so WBE purchased an existing 16,000 square foot building at 15 Digital Drive in Novato.

Agilent Technologies & Medtronic CardioVascular

Agilent Technologies and Medtronic CardioVascular are leading the way in helping English Learners fall in love with math and be better prepared to be the workers of the twenty-first century. To bridge the achievement gap, the Sonoma County Office of Education and Santa Rosa Chamber of Commerce have launched a pilot program that pairs incoming freshmen with local engineers who can help the students better grasp algebraic concepts. Thirty incoming ninth-graders are spending a week each at Agilent Technologies, Medtronic Inc. and JDSU, learning introductory algebra through classroom sessions and real-world engineering and technology. "The work students will see in this summer program can help students understand complex concepts," said Eric Feith, senior manufacturing engineer at Medtronic.

UPCOMING EVENTS!