ShareThisDemocratic lawmakers and Gov. Arnold Schwarzenegger have taken a monumental step in the fight against global warming with the passage of Assembly Bill 32. Once again, California is leading, and much of the world is cheering.
This legislation, which Schwarzenegger has agreed to sign, would make California the first state to set caps on industrial gases linked to global warming. Under the bill, California industries and utilities would have to reduce such pollution 25 percent by 2020.
Right up until midday Wednesday, it appeared that talks might collapse as both sides haggled over whether California "may" or "shall" use market mechanisms to achieve emissions reductions. It was a largely meaningless dispute. No one seriously expects California to adopt a traditional regulatory approach when much of the industrial world _ including most of Europe and utilities in the northeastern United States _ is moving toward a cap and trade system for reducing emissions.
Eventually the two sides adopted market language that made the governor comfortable. They also clarified the timetable for implementing the program, a good improvement for the final product.
There are many unknowns as California builds this model for reducing greenhouse emissions at the lowest possible cost. Will certain industries, such as cement manufacturers, try to relocate outside of California and ship their products in to escape the emissions caps? Will the shift to alternative energy greatly increase electricity prices, or will it help to buffer the state from spikes in fossil fuel prices?
Although the governor relented on some demands, he gained new authority under amendments to AB 32 that allow him to intervene and respond to the unexpected. The legislation approved by the Assembly and Senate allows the governor to suspend the regulations for a year in case of natural catastrophe or other extraordinary circumstances. Schwarzenegger is also expected to sign a complementary bill, Senate Bill 1368, by state Senate President Pro Tem Don Perata, that would prohibit California from importing new sources of energy that don't meet a standard for low greenhouse gases.
Ultimately, a national and worldwide program is needed to make this a winning crusade. But with the Bush administration refusing to take action on reducing industrial emissions, the states, including California, are once again forced to blaze their own trail.
It's a trail that could put California at the forefront of new technologies to conserve energy and tap it from renewable sources. That is why many businesses, including Pacific Gas and Electric and some in the Silicon Valley, support this groundbreaking law. Outside of the Bush administration, many corporate and government leaders see the future and want to capitalize on it.
It's a future that now is a little closer, thanks to Assemblywoman Fran Pavley, Assembly Speaker Fabian Nzqez, Perata and Schwarzenegger.
