ARTICLE
Last year, I was approached by a business and policy colleague from Sacramento who asked if the Santa Cruz County Chamber would help with a very specific policy issue that impacts California coastal communities and the small business industry of Sportfishing. I spent nearly an hour plus on the phone speaking to Marko Milkotin who is representing the California Sportfishing industry about state policy and regulations that are moving through the California Air Resources Board (CARB). The board is the lead state agency in addressing greenhouse gas emissions in California systemically tackling each industry sector one by one in setting high regulatory standards to reduce and if possible eliminate GreenHouse Gas Emissions (GHG) from the California air by set dates per our Climate Change goals. We all know that California has been a global leader in climate change policy first initiated during Governor Schwarzenegger’s administration with Democratic legislative leaders (AB 36) and continued to aggressively address climate change during the Jerry Brown and now the Gavin Newsom administration (SB 32) of reducing emissions 40% below 1990 levels by 2030. There is a series of environmental legislation that combined are set on a path to a sustainable future from GHG reduction, energy storage, renewable energy procurement, transportation infrastructure funding, sustainable transportation planning, adaptation and resiliency — the list is quite lengthy and you can see how Berkeley Law has created a California Climate Policy Dashboard to track this policy work: https://www.law.berkeley.edu/research/clee/research/climate/climate-policy-dashboard/ There is no denying the science data of climate change as our globe has longer frequencies of drought, wildfires, and the on-going weather patterns that prove how the world as we know it is not on a sustainable course. A recent report to the California Legislature from the Legislative Analyst’s Office provides a list of climate change impacts that today’s California Legislature needs to address. You can read the CALMATTERS article to summarize these issues here: https://calmatters.org/environment/2022/04/california-climate-change-report-legislature/. According to the article — “The report’s unsaid but unambiguous conclusion: Climate change could alter everything, and spare no one in California, so legislators should consider preparing for sweeping impacts.” So where does the California Sportfishing Industry fit into the storyline? As CARB was systematically reviewing every nook and cranny industry on reducing GHG, they realized that the sportfishing industry and the local small businesses that ran their boats primarily on diesel engines would be a prime target. However, as is the case on many occasions when a government agency sets forth on a mission to regulate an industry, they focus on their primary goal — reduce GHG at all cost. The CARB looked at the fundamental problem — pollution of diesel engines on California ocean waters — and determined that setting the highest tier reduction level to reduce the GHG was to enforce new regulations on this industry including the requirement that boaters place emission filters on their boats by 2023 or abandon their boats and purchase new boats at a cost of over $5 million per boat. CARB initially overlooked the economic impact this enforcement would cause to small family-owned sportfishing businesses all across the coastal regions of California. The news slowly leaked out that the regulations were filled with uncertainties, ambiguous overreach as well as requirement of a technology that was not available to meet the CARB regulatory dates — January 1. 2023. The sportfishing industry had two choices — fight back to ensure that CARB staff and the CARB board understood the dramatic impact their regulations would have on this industry or close family-owned businesses which have an impact on coastal communities from Humboldt County to San Diego County. The sportfishing industry chose to fight and get the word out: The regulations considered by the CARB board in November 2022 were economically and structurally infeasible, leading CARB to conclude that vessels would have to be removed from service starting in 2023. When new vessels can cost over $5 million, passenger tickets would have needed to triple for one-day fishing trips, leading boat owners to conclude they would not be able to maintain current passenger loads at higher prices. Coastal communities were concerned about the impact on visitor spending and jobs. A coalition was formed over 2021 with the goal that by working together a clear and distinct message would be heard: Working together, here is what the coalition achieved: > Over 23,000 Californians signed a petition asking Governor Newsom to “Save Our Boats” > Over 60 local, state and national small business and trade organizations joined the coalition > Over 3,200 public comments > Over 200 hearing speakers > TV, print and radio stories in every coastal media market The Santa Cruz County Chamber was one of 35 Chambers, business and trade associations that joined the coalition. You can see the full list here: https://www.savefishing.com/coalition/. I personally reach out to more than two dozen chamber executives to share the information and ask them to join us in this effort. The key point was finding common ground. These small family-owned businesses wanted to do their part in addressing climate change and reducingGHG but it had to be done in an environmentally and economically feasible way. After all, their family business was in jeopardy and helping protect California’s ocean waters was an absolute necessity for the sportfishing industry. This 18-month effort saved threatened family retirement plans and preserved the ability to pass along generational businesses from parents to children. Not to mention saving an industry in the process. What was at stake: California is one of America’s premier fishing destinations with over a half a million people a year fishing from sportfishing boats, supporting coastal communities, marinas, and small businesses dependent on outdoor tourism for economic activity, jobs, and tax revenue. Prior to the COVID-19 pandemic, California’s over 2 million anglers contributed $5.6 billion a year in economic activity and supported nearly 40,000 jobs for our state. I think the best line in the 18-month effort is taken from one of the many boat owners who expressed frustration with the behind-the-scenes regulation planning and the zoom public meetings where a member of the public has two to three minutes to get a message across. Finally, after all the back and forth and the amazing lobbying effort, CARB listened. Instead of blaming the industry, which has steadfastly provided specific data points to foster their position firmly on solid environmental and economic ground, CARB’s executive staff went to San Diego for a site visit. The government leaders and the sportfishing community talked for more than four hours, and the industry had the opportunity to demonstrate the challenges and show how they can meet the more flexible regulatory requirements. To listen to a boat owner who had his entire life’s savings on the line and if the old rules were applied would have ended his family business. The clarity of the message — let’s partner with you and we can get things done in the best interest of Californians and California’s environment. A win for all of us.
Last year, I was approached by a business and policy colleague from Sacramento who asked if the Santa Cruz County Chamber would help with a very specific policy issue that impacts California coastal communities and the small business industry of Sportfishing.
I spent nearly an hour plus on the phone speaking to Marko Milkotin who is representing the California Sportfishing industry about state policy and regulations that are moving through the California Air Resources Board (CARB). The board is the lead state agency in addressing greenhouse gas emissions in California systemically tackling each industry sector one by one in setting high regulatory standards to reduce and if possible eliminate GreenHouse Gas Emissions (GHG) from the California air by set dates per our Climate Change goals. We all know that California has been a global leader in climate change policy first initiated during Governor Schwarzenegger’s administration with Democratic legislative leaders (AB 36) and continued to aggressively address climate change during the Jerry Brown and now the Gavin Newsom administration (SB 32) of reducing emissions 40% below 1990 levels by 2030. There is a series of environmental legislation that combined are set on a path to a sustainable future from GHG reduction, energy storage, renewable energy procurement, transportation infrastructure funding, sustainable transportation planning, adaptation and resiliency — the list is quite lengthy and you can see how Berkeley Law has created a California Climate Policy Dashboard to track this policy work: https://www.law.berkeley.edu/research/clee/research/climate/climate-policy-dashboard/
There is no denying the science data of climate change as our globe has longer frequencies of drought, wildfires, and the on-going weather patterns that prove how the world as we know it is not on a sustainable course. A recent report to the California Legislature from the Legislative Analyst’s Office provides a list of climate change impacts that today’s California Legislature needs to address. You can read the CALMATTERS article to summarize these issues here: https://calmatters.org/environment/2022/04/california-climate-change-report-legislature/. According to the article — “The report’s unsaid but unambiguous conclusion: Climate change could alter everything, and spare no one in California, so legislators should consider preparing for sweeping impacts.”
So where does the California Sportfishing Industry fit into the storyline?
As CARB was systematically reviewing every nook and cranny industry on reducing GHG, they realized that the sportfishing industry and the local small businesses that ran their boats primarily on diesel engines would be a prime target. However, as is the case on many occasions when a government agency sets forth on a mission to regulate an industry, they focus on their primary goal — reduce GHG at all cost. The CARB looked at the fundamental problem — pollution of diesel engines on California ocean waters — and determined that setting the highest tier reduction level to reduce the GHG was to enforce new regulations on this industry including the requirement that boaters place emission filters on their boats by 2023 or abandon their boats and purchase new boats at a cost of over $5 million per boat. CARB initially overlooked the economic impact this enforcement would cause to small family-owned sportfishing businesses all across the coastal regions of California. The news slowly leaked out that the regulations were filled with uncertainties, ambiguous overreach as well as requirement of a technology that was not available to meet the CARB regulatory dates — January 1. 2023.
The sportfishing industry had two choices — fight back to ensure that CARB staff and the CARB board understood the dramatic impact their regulations would have on this industry or close family-owned businesses which have an impact on coastal communities from Humboldt County to San Diego County. The sportfishing industry chose to fight and get the word out: The regulations considered by the CARB board in November 2022 were economically and structurally infeasible, leading CARB to conclude that vessels would have to be removed from service starting in 2023. When new vessels can cost over $5 million, passenger tickets would have needed to triple for one-day fishing trips, leading boat owners to conclude they would not be able to maintain current passenger loads at higher prices. Coastal communities were concerned about the impact on visitor spending and jobs.
A coalition was formed over 2021 with the goal that by working together a clear and distinct message would be heard: Working together, here is what the coalition achieved:
The Santa Cruz County Chamber was one of 35 Chambers, business and trade associations that joined the coalition. You can see the full list here: https://www.savefishing.com/coalition/. I personally reach out to more than two dozen chamber executives to share the information and ask them to join us in this effort. The key point was finding common ground. These small family-owned businesses wanted to do their part in addressing climate change and reducingGHG but it had to be done in an environmentally and economically feasible way. After all, their family business was in jeopardy and helping protect California’s ocean waters was an absolute necessity for the sportfishing industry. This 18-month effort saved threatened family retirement plans and preserved the ability to pass along generational businesses from parents to children. Not to mention saving an industry in the process. What was at stake: California is one of America’s premier fishing destinations with over a half a million people a year fishing from sportfishing boats, supporting coastal communities, marinas, and small businesses dependent on outdoor tourism for economic activity, jobs, and tax revenue. Prior to the COVID-19 pandemic, California’s over 2 million anglers contributed $5.6 billion a year in economic activity and supported nearly 40,000 jobs for our state.
I think the best line in the 18-month effort is taken from one of the many boat owners who expressed frustration with the behind-the-scenes regulation planning and the zoom public meetings where a member of the public has two to three minutes to get a message across. Finally, after all the back and forth and the amazing lobbying effort, CARB listened. Instead of blaming the industry, which has steadfastly provided specific data points to foster their position firmly on solid environmental and economic ground, CARB’s executive staff went to San Diego for a site visit. The government leaders and the sportfishing community talked for more than four hours, and the industry had the opportunity to demonstrate the challenges and show how they can meet the more flexible regulatory requirements. To listen to a boat owner who had his entire life’s savings on the line and if the old rules were applied would have ended his family business.
The clarity of the message — let’s partner with you and we can get things done in the best interest of Californians and California’s environment. A win for all of us.