Budget skirmish likely over climate change implementation

By CMTA Staff

Capitol Update, Feb. 1, 2007 Share this on FacebookTweet thisEmail this to a friend

Every spring and summer there are a handful of issues that threaten to hold up the state budget.  This year one of those issues is the implementation of AB 32 (Fabian Nunez, D-Los Angeles) (Statutes of 2006, Chapter 488), the Global Warming Solution Act of 2006.

The governor’s proposed budget earmarks $24.4 million in special funds and 100 staff positions to implement AB 32. The funding will enable the California Air Resources Board (ARB) to develop: (1) a mandatory emissions reporting system; (2) an implementation plan to reduce greenhouse gas emissions to 1990 levels by 2020; and (3) a market-based emissions trading program.

Both Assembly Speaker Nunez and Senate President Pro Tempore Don Perata (D-Oakland) have raised concerns about a market-based emissions trading program, accusing the administration of overstepping its authority on that part of AB 32 implementation.

Last fall, the governor signed executive order S-20-06 (Oct. 18, 2006) directing ARB to develop a market-based compliance program and other emissions reduction program elements on a simultaneous basis, which both Nunez and Perata have said violates the AB 32 requirement that CARB adopt "early action" emission reduction measures prior to the use of any market-based compliance mechanism.  The administration has said it will continue its efforts to establish a market-based approach, that this will enable the state to reach its emission targets without disrupting the economy and that the executive order and the governor’s proposed 2007-08 budget are consistent with AB 32.

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