ShareThisBy JUDY LIN
Democratic lawmakers and Gov. Arnold Schwarzenegger on Wednesday struck a deal on legislation to reduce the state's greenhouse gas emissions by 25 percent over the next two decades.
Assembly Speaker Fabian Nunez, D-Los Angeles, hailed the long-bargained agreement as a ground-breaking bill that has the potential to influence the rest of the nation.
"This is the most important day of my brief legislative career," Nunez said.
Schwarzenegger has pledged to sign Assembly Bill 32.
"We can now move forward with developing a market-based system that makes California a world leader in the effort to reduce carbon emissions," he said in a statement. "The success of our system will be an example for other states and nations to follow as the fight against climate change continues. AB 32 strengthens our economy, cleans our environment and once again, establishes California as the leader in environmental protection."
His fellow Republicans in the Legislature said the bill was the wrong approach.
"Adopting costly and unattainable regulations will drive businesses and jobs out of California into other states _ and even into other countries with no commitment to improve air quality," said assembly Republican leader George Plescia, R-La Jolla. "We need a national consensus to truly have an impact on this problem, not a state-by-state approach that will harm businesses and make matters even worse."
Under the bill, California would take the lead in limiting greenhouse gas by reducing emissions to 1990 levels by the year 2020.
Starting in 2012, the state would enforce a statewide cap on industries' emissions.
The bill directs the California Air Resources Board to develop regulations, as well as establish a mandatory reporting system to track emissions.
"California is acting while Washington drags its feet," said Jim Marston senior attorney with Environmental Defense. "This bill sets the stage for Governor Schwarzenegger to make history and get America's global warming policy on track with the rest of the world."
According to the Union of Concerned Scientists, California is the world's 12th largest source of carbon dioxide _ the chief heat-trapping gas that causes global warming.
Advocates argue that by restricting greenhouse gas emissions, the state would motivate more businesses to develop and use more green technology _ creating more jobs and wealth for the state's economy.
Two economic analyses suggested the state could generate 83,000 jobs and $4 billion in income by 2020.
Advocates estimate the state will reduce 174 million metric tons of greenhouse gases.
Reaching the deal involved a tremendous amount of negotiating. On several occasions, Nunez said he was "ready to throw in the towel."
At issue was the governor's request for mandatory market trading on carbon emissions, which would help businesses meet their quotas at the lowest cost.
Some environmental groups opposed such trading, fearing it would enable businesses to sidestep emission requirements.
In the end, the bill does not require trading, but instead directs the Air Resources Board to set up a roadmap for trading.
Administration officials also want broad oversight, arguing that the Air Resources Board lacked the expertise to regulate so many industries. But lawmakers prevailed in the end, and the board retains oversight under the bill.
At one point, amendments to the bill had called for a council made up of five seats appointed by the governor and four appointed by the Legislature.
Schwarzenegger had expressed concern that the bill lacked an escape clause that would allow the government to lift caps in case of unexpected circumstances. Administration officials cited the state's energy crisis as a prime example of why the state needs to have the power to intervene.
Under the agreement, the governor has one year to lift the cap under extreme circumstances.
