posted on Thursday, September 07, 2006 10:14 AM by Gunnar Birgisson

First in Nation, California Set to Mandate Greenhouse Gas Reductions

California is poised to become the first US jurisdiction to mandate reductions of greenhouse gas (GHG) emissions as soon as Gov. Schwarzenegger signs the California Global Warming Solutions Act of 2006, which he negotiated with the state legislature,  By 2020 the bill would require GHG emissions be reduced to 1990 levels in the state.  Whether the reductions program will include market-based emissions trading favored by industrial interests is unclear.

The bill does not specify a given percentage level reduction of GHG emissions reductions, but requires reduction to a 1990 emission baseline that the California Air Resource Board (CARB)  is to establish.  Much of the detail is left to the CARB's implementation process, which includes adoption of rules and regulations by January 1, 2008.  Regulations for achieving the GHG emissions goals are to take into account many salutary but seemingly incompatible considerations.  These include equitable distribution of emissions allowances, avoiding disproportionate impacts on low-income communities, crediting entities that have already voluntarily reduced emissions, maintaining existing air quality standards, costs and benefits, minimization of administrative burdens, minimization of leakage (a reduction of GHG emissions in-state that is offset by an increase elsewhere), and consideration of the contribution of different sources of GHG emissions. 

By June 30, 2007, the CARB is to issue a list of discrete GHC reduction measures that can be implemented before other measures; by January 1, 2010, the CARB is to adopt regulations to implement those early measures.  Emission sources would have to start GHG reporting in 2008, and the CARB would start enforcing GHG emissions reductions by January 1, 2012.

Gov. Schwarzenegger earlier signed an agreement with British Prime Minister Tony Blair committing California and the United Kingdom to cooperate in battling climate change and promoting energy diversity.  The agreement calls for cooperation on technologies, sharing data, and developing market-based incentives.