Friday, December 12, 2008
California OKs climate reforms
SACRAMENTO, Calif.
California air regulators adopted a sweeping new climate plan Thursday that would require the state's utilities, refineries and large factories to transform their operations to cut greenhouse gas emissions.
The California Air Resources Board voted unanimously to adopt the nation's most comprehensive global warming plan, outlining for the first time how individuals and businesses would comply with a landmark 2006 law.
The plan would make California companies pay to emit carbon dioxide and other gases blamed for trapping heat - transforming how people travel, how utilities generate power and how businesses use electricity.
At the heart of the plan is the creation of a carbon-credit market designed to give the state's major polluters cheaper ways to cut the amount of their emissions. That market and the many other strategies referenced in the plan will be fleshed out and adopted over the next few years.
California's plan comes while governments around the world are struggling with a financial crisis that threatens to undermine efforts to fight climate change. California itself is facing a forecast budget gap of $41.8 billion through June 2010.
Gov. Arnold Schwarzenegger, who has said the state's climate law will stimulate the economy, declared Thursday that California was providing a road map for the rest of the country.
"Today is the day we help unleash the full force of California's innovation and technology for a healthier planet, a stronger and more robust economy and a safer and more secure energy future," Mr. Schwarzenegger, a Republican, said in a statement released after the board's vote.
His sentiments echo those of President-elect Barack Obama, who also has promoted investments in energy efficiency and green technology to help spur the country out of recession. Last month, Mr. Obama said he hoped Congress would adopt California's targets for the entire country, essentially reversing eight years of U.S. policy against mandated emission cuts.
California's 2006 law, called the Global Warming Solutions Act but commonly referred to as AB32, mandates that the state cut emissions to 1990 levels by 2020.
The strategy chosen by air regulators relies on 31 new rules affecting all facets of life, from the fuels Californians put in their vehicles to the air conditioners businesses install in their buildings.
The average Californian, for example, could see more fuel-efficient cars at dealerships, better public transportation, housing near schools and businesses and utility rebates to equip their homes to be more energy efficient.
But there will also be costs.
California drivers will see more expensive cars on showroom floors and should expect to pay higher power bills as utilities increase their use of renewable energy.
Republicans, small businesses and major industries that will be forced to transform operations beginning in 2012 say jobs will be lost, companies might leave the state and energy prices will skyrocket. Many demanded the board do more economic analysis before committing to policies they warned could worsen the economy.
"The deepening recession has affected businesses throughout the state," Amisha Patel, a policy advocate at the California Chamber of Commerce, told the board. "The reality of climate regulation is there will be costs."
The air board's background work has been criticized in reviews by California's nonpartisan legislative analyst and independent scientists, with both groups saying the costs to the state could be greater than projected.