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Business Voice for the Environment
www.e2.org

September 1, 2006

We're very pleased to report that on August 31, 2006, the California Assembly voted 46 to 31 to pass the California Global Warming Solutions Act of 2006 (AB 32). This follows on Wednesday night's affirmative vote of 23 to 14 in the Senate and the Governor's announcement that he intends to sign the bill.

AB 32 is the first piece of legislation in the United States to place a mandatory cap on global warming pollution from stationary sources. With the passage of AB 32, California is now positioned to become the global market-leader in clean technologies.

E2 is quoted in the San Francisco Chronicle: "This is the tipping point in the country's climate-change debate," predicted Bob Epstein, head of the business group Environmental Entrepreneurs." In a rare opportunity to take part in a truly historic,event, E2 played a crucial role in providing business voices in support of AB 32. We made this happen through our many advocacy trips to Sacramento and through the calls, support letters and emails from hundreds of E2 members who contributed to this victory.

Assembly Member Pavley (AB 32's co-author along with Speaker Nuñez) told us last night that the biggest political shift occurred earlier this month at a press conference with E2 and members of the California venture capital community, where we testified that contrary to common perception, California business is far from monolithic in its views on carbon regulation. Specifically we were able to position the California business community as divided on the issue of the economic benefits of AB32. From that moment forward, the press continued the message of a divided business community, turning AB32 into a business debate rather than business versus the environment.

E2 held a total of 124 individual meetings with members of the legislature plus multiple press conferences and meetings with the administration. We bolstered our business argument with position papers and research. A dozen E2 members came to Sacramento - most of them multiple times. A core group of E2 members in Southern California visited the district offices of key legislators. Almost 400 members participated through their support letters and phone calls.

In sum, this has been a team effort that will change the game on global warming. As Thomas Paine once said, "Lead, follow, or get out of the way." California has taken a leadership position on addressing global warming while also increasing our competitiveness in the carbon-conscious global economy. We have confidence that others will follow.

Thank you so much for your efforts.

Bob Epstein and Nicole Lederer

Co-founders, E2

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