They just recently passed a Cap and Trade bill. From the New York Times:
LOS BANOS, Calif. — The Morning Star Company’s three plants in California emit roughly 200,000 metric tons of carbon dioxide into the atmosphere each year — about the same amount as the Pacific Island nation of Palau — as they turn tomatoes into ketchup, spaghetti sauce and juice used by millions of consumers around the world.
Beginning Jan. 1, under the terms of a groundbreaking California environmental law known as AB 32, Morning Star and 350 other companies statewide will begin paying for those emissions, which trap heat and contribute to global warming.”
I wonder if they are using AlGore’s carbon credits company to make him richer. It will only last for a while. Soon the companies which are forced to pay offsets will either move out of the state or will go belly-up.
Mr. Kastle said Morning Star’s margins are too slim to absorb new regulatory costs. But he also worries about the consequence of passing them on. He knows that the California garlic industry lost half its market to Chinese imports in less than a decade, and notes that China’s tomato-processing industry is on the rise.”