Gino DiCaro

Global warming bill negotiations focus on emissions trading

By Gino DiCaro, VP, Communications

Capitol Update, Aug. 25, 2006 Share this on FacebookTweet thisEmail this to a friend

With the August 31 deadline for adjournment looming, agreement on AB 32 (Fabian Nunez, D-Los Angeles) remains elusive as Governor Arnold Schwarzenegger and Democratic legislative leaders disagree over key provisions related to the trading of emission credits.

As amended on August 23rd, AB 32 would impose a mandatory cap on greenhouse gas emissions to meet reduction goals set out by the Governor in his executive order last year. The bill would allow for the possibility of emissions trading programs, but leave it to regulators to decide.  Democratic legislators and the environmental community assert that trading might weaken the "hard" cap in the bill and that the issue must be carefully looked into.  The Governor disagrees, and wants AB 32 to explicitly state that companies can buy and sell emissions credits.

The business community is opposed to the bill.  It would increase California's energy costs, make businesses less competitive, drive jobs and production out of state and hinder the ability of California businesses to compete in U.S. and global markets.

Policymakers should be focusing on policies and programs that actually work and that accomplish emissions reduction goals without jeopardizing our state's economy, jobs and energy supply.  California's greenhouse gas programs should be structured to maintain a healthy economy in California and maintain the competitiveness of the state's businesses.  

California already leads the nation when it comes to reducing greenhouse gas emissions.  Our ongoing investment in energy efficiency, research and development and cost-effective renewable power has helped in this regard.  And manufacturers across California have played an integral role, voluntarily reducing emissions through improvements in energy efficiency and the utilization of combined heat and power systems.   
    Recently, at a CMTA conference in Tahoe, energy experts, regulators, utilities, businesses and others gathered for two days of discussion regarding energy and climate change policies for California.  Our purpose at the conference was to inform the discussion and promote policies that will both make progress on reducing global emissions of greenhouse gases and ensure a healthy and growing California economy.
    View brief overview of the perspectives and opinions shared at the conference.

For more information on AB 32, contact Joe Lyons

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