AB 32, The Global Warming Solutions Act
Consensus has emerged that climate change is a real threat to the future of the planet.
The US Senate, a number of state Governors, the National Academy of Sciences
in 11 countries, and the vast majority of academic researchers have stated that
global warming due to atmospheric greenhouse gases is now occurring and will result
in potentially catastrophic global changes if the rate of greenhouse gas emissions
is not slowed to allow for adaptation.
Potential impacts to California from climate change include rising sea levels
that could damage coastal communities and coastal wetlands, degradation in air
quality resulting in an increase in respiratory illness, increased death from
heat and insect-borne diseases, loss of Sierra snow pack and related water supply
problems, and a dramatic increase in state energy needs, among other problems.
California, if
compared against other countries in the world, is the tenth largest emitter of carbon dioxide
pollution in the world. California's consumption of imported electricity is responsible for
carbon dioxide pollution emitted from power plants in other parts of the Western U.S.
On September
27, 2006, Governor Schwarzenegger signed AB 32, the Global Warming Solutions Act.
The Act caps California's greenhouse gas (GHG) emissions at 1990 levels by 2020. This
legislation represents the first enforceable state-wide program in the US to cap all
GHG emissions from major industries that includes penalties
for non-compliance. It requires the California Air Resources Board (CARB) to establish a program
for statewide greenhouse gas emissions reporting and to monitor and enforce compliance with this
program. The Act
authorizes the state board to adopt market-based compliance mechanisms including cap-and-trade,
and allows a one-year extension of the targets under extraordinary circumstances.
AB 32 requires
the California Environmental Protection Agency to work with state agencies to:
- Promulgate and implement a greenhouse gas emissions cap for the electric power,
industrial and commercial sectors through regulations in an economically efficient manner;
- Institute a schedule of greenhouse gas reductions;
- Develop an enforcement mechanism for reducing GHGs; and
- Establish a program to track and report GHG emissions
AB 32 requires that these regulations not create large windfall profits for private
businesses, penalize industries or companies which have acted previously to reduce
greenhouse gas emissions, result in disproportionate impacts to consumers or any
geographic or socio-economic groups, and should ensure that entities are appropriately
motivated to make investments that will reduce emissions. AB 32 also requires that
CAL/EPA report on how they arrive at the emissions cap, and provide biannual progress
reports on achieving the cap.
State agencies are developing implementation strategies for AB
32 now. The CARB is
hosting a workshop on January 22nd, 2007. The California Public Utilities Commission
(CPUC) held a workshop in December. Other state agencies such as the Energy Commission,
Integrated Waste Management Board, and Department of Water Resources, are also expected
to develop implementation recommendations.
The LGC-hosted
local government energy networking meeting will be held in Sacramento on January 26th with
representatives from the CARB and CPUC to
talk about how AB 32 will impact local governments. For more information, contact Pat Stoner
(pstoner@lgc.org).
You can view the legislation on the California
Legislative Information web site (www.leginfo.ca.gov/)
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