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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