I understand your point. I also acknowledge that California's utter financial failure is not solely due to environmental policy. The discussion here revolves around carbon credits so I was limiting my commentary to energy policy. There are many factors in California's crisis. Energy policy, outrageous taxes and cost of living are big drivers, though.
I am not a fool chasing windmills disguised as environmentalists. The deregulated power industry put me in the spot I am in. These carbon credits won't fix it. If power goes up any more than it already has, there is no hope whatsoever of my plant restarting. They will add another production line in some other country and I will move, exit this business, or find another line of work. There are other facilities in my company here in the USA that are still struggling along right now. Carbon credits will add to their cost and they will be shut down just like we were. That's a simple fact. If the current administration pushes this issue as hard as they say they will, all heavy manufacturing that deals with pollutants will simply exit the U.S.
We can control pollution to a certain extent by demanding more from the industries causing the problem. However, the point of diminishing returns is reached rapidly and it will cause a mass exodus of certain types of business. Business that employs lots of people with good paying jobs that buy lots of computers, cars, groceries, houses, and so on. These carbon credits will hurt many businesses and ruin others. That will lead to further job loss and a worsening of the economy. I'm a "computer guy" not an economist, but that much I do know.
I see your point and I know too well that companies will cry wolf every time the government holds their feet to the fire. However, in this case, they aren't crying wolf. Energy drives our economy and increasing it's cost will most certainly hurt our economy.