During a recent government meeting, significant concerns were raised regarding the regulatory burden on small businesses and the rising cost of electricity in California. A speaker highlighted that California now has the second-highest electricity prices in the nation, trailing only Hawaii. This increase in costs is particularly alarming as the state pushes to electrify its economy across various sectors, not just transportation.

The discussion emphasized the implications of California's regulatory model on other states, particularly in terms of cost of living and business operations. A study commissioned during the speaker's tenure in the legislature revealed that compliance costs for small businesses in California, when adjusted for inflation, amount to approximately $200,000 per business. This figure is significantly higher than the federal regulatory burden at that time.

Furthermore, the speaker criticized recent federal regulatory policies implemented by the Biden-Harris administration, arguing that they have effectively matched the entire federal regulatory burden from two decades ago. The concern is that these regulations, which mirror those in California and New York, could diminish the competitive advantages of states with lower taxes and regulations, such as South Carolina. The speaker warned that this trend could lead to a homogenization of regulatory environments across the country, potentially harming economic growth and small business viability in states that have traditionally enjoyed more favorable conditions.