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Schwarzenegger caps greenhouse-gas emissions in California
AFP
LOS ANGELES
Petroleumworld.com 08 31 06
California Governor Arnold Schwarzenegger has struck a deal with the state legislature to cap greenhouse-gas emissions blamed for global warming.
"Today, I am happy to announce we have reached a historic agreement on legislation to combat global warming," the Republican governor said Wednesday in a statement, after reaching the agreement with the Democratic-majority legislature.
"We can now move forward with developing a market-based system that makes California a world leader in the effort to reduce carbon emissions," Schwarzenegger said.
The move makes California the first state in the country to limit the emission of
carbon dioxide and other gases accused of contributing to global warming.
California is the 12th largest carbon emitter in the world, Schwarzenegger noted, "despite leading the nation in energy efficiency standards and its lead role in protecting its environment.
"Reducing greenhouse gas emissions is an issue we must show leadership on," he said.
The proposed bill, called AB 32, would cut the state's carbon dioxide emissions -- the principal contributor to global warming -- by 25 percent by the year 2020.
It would require large firms that generate greenhouse cases, such as power plants, oil refineries, factories and cement kilns to report their level of emissions to California's Air Resources Board.
However, the bill includes a provision allowing firms who exceed the limits, or cap, on greenhouse gas emissions to buy "credits" from companies with below-cap emissions.
This "cap-and-trade" provision is supported by Schwarzenegger, who says businesses must have flexibility in dealing with the emissions, and opposed by environmental groups because it would allow polluters to buy their way out of the problem.
There is additional concern that poor neighborhoods will be saddled with more pollution if utility companies -- which are mostly located in economically depressed districts -- evade emissions limits through cap-and-trade.
"The idea that this is some kind of silver bullet is great - unless you are living next to one of these plants," said Angela Johnson Meszaros, a lawyer with the Environmental Rights Alliance in Los Angeles.
Another controversial issue is the bill's failure to properly address what has become known as the "leakage" problem, by which utility companies can buy more power from out of state without having to produce cleaner energy -- 20 percent of California's energy needs come from out of state.
The bill, in its current form, merely says the state must "minimize leakage."
Businesses have begun lobbying against the bill because they argue it would increase energy costs and make California less attractive to companies.
"This bill would make it virtually impossible for California industries to remain competitive in the marketplace," Chamber of Commerce vice president Dominic DiMare said recently in a letter to California lawmakers.
On the political front, the bill is seen as Schwarzenegger's attempt to secure his reelection next November against his Democratic rival Phil Angelides, by co-opting voters concerned with the environment -- a recent poll found 66 percent of Californians were concerned with global warming.
Angelides has accused the governor of trying to "gut" the measure with business-friendly amendments.
AFP 31 0926 GMT 08 06
Copyright ©2006 AFP. All Rights Reserved.
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