Perata to Gov: Exec order violates AB 32

By CMTA Staff

Capitol Update, Oct. 26, 2006 Share this on FacebookTweet thisEmail this to a friend

Less than a week after Assembly Speaker Fabian Nunez (D-Los Angeles) raised similar concerns, Senate President Pro Tempore Don Perata (D-Oakland) accused the Schwarzenegger Administration of overstepping its authority on greenhouse gas (GHG) emissions and called on the Governor to rescind a recent executive order emphasizing the development of a carbon trading market and making the Secretary of the California Environmental Protection Agency (Cal-EPA), Linda Adams, the lead administration official on AB 32 implementation.

Executive Order S-20-06 (Oct. 18, 2006) requires the California Air Resources Board (CARB) to work with the Cal-EPA Secretary "to bring both regulatory measures and market-based mechanisms forward on a concurrent and expeditious schedule."  It requires the Secretary to: (1) create a Market Advisory Committee of national and international experts to make recommendations to CARB on or before June 30, 2007, on the design of a market-based compliance program; and (2) develop an economic analysis of efforts to reduce GHG emissions, including a cost-effectiveness analysis, in coordination with CARB and the Climate Action Team, and develop a plan by June 1, 2008.

The executive order directs CARB to develop a market-based compliance program and other emissions reduction program elements on a simultaneous basis, which Perata asserts violates the AB 32 requirement that CARB adopt "early action" emission reduction measures prior to the use of any market-based compliance mechanism.

A spokesperson for the Governor said he will continue his efforts to establish a market-based approach and that this will enable the state to reach its emission targets without disrupting the economy.

Margita Thompson, Gubernatorial press secretary, said the "Governor is committed to working with leaders of the Legislature to reach historic reductions in global greenhouse gas emissions" and that the "view here is that the executive order is consistent with the legislation."

Exec Order S-20-06 is an important first step to help lessen the burden of California's new global warming law and to help enable industry to comply with reduction mandates in a cost effective manner.  CMTA also agrees with the Governor that we must build a favorable investment, research and tax climate in the state to encourage new technologies and improve energy efficiency.

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