Biodiesel Resource

SAN FRANCISCO, September 28, 2006 - California Governor Arnold Schwarzenegger signed a landmark law on Wednesday aimed at reducing the state's greenhouse gas emissions 25 percent by 2020. The new law establishes the first U.S. cap on greenhouse gas emissions and stands in stark contrast to the federal government's failure to impose mandatory reductions of emissions linked to global warming.

Schwarzenegger said the law fulfills his pledge to make California "number one in the fight against global warming."

"This is something we owe our children and our grandchildren," the Republican governor said. "We simply must do everything in our power to slow down global warming before it's too late."

At the San Francisco bill signing ceremony, British Prime Minister Tony Blair addressed attendees via satellite and praised California for enacting the law. "This will echo right round the rest of the world," Blair said. "You are showing brilliant leadership that will inspire a lot of people worldwide."

The law specifically calls on the state to cut emissions to 1990 levels by the year 2020 - a 25 percent reduction. An executive order signed by Schwarzenegger calls for the state to ultimately cut emissions 80 percent below 1990 levels by 2050.

The details of the program have yet to be determined, but businesses across the state expect to be hit with strict emission limits. Companies subject to the new limits would be allowed to trade carbon dioxide emission allowances in a market - similar to how sulfur dioxide emissions credits are traded today under federal legislation.

The new law requires the state's Air Resources Board to adopt regulations to enable a cap and trade program and gives the board the authority to enforce the regulations beginning in 2012.

In the interim, the board will begin to measure the greenhouse gas emissions of the industries it determines as significant sources of greenhouse gas emissions.

Critics of the measure say forcing companies to cut emissions will make some companies leave California and will harm the state's economy.

Schwarzenegger rejected that claim and said the law is "unquestionably good for businesses."

"Not only large, well-established businesses, but small businesses that will harness their entrepreneurial spirit to help us achieve our climate goals," he said. Schwarzenegger was joined by New York Governor George Pataki and other environmental and industry leaders at a bill signing for in San Francisco.

The law includes a provision giving the California governor the ability to invoke a safety valve and suspend the emissions caps for up to one year in the case of an emergency or significant economic harm.

Environmental groups hailed the signing of the law and called it a turning point in international efforts to address global warming.

"It makes a world of difference what we do in California," said Sheryl Carter, director of Western energy programs for NRDC. "That's why the world is literally watching as we take this historic step against global warming."

California has often been the environmental pioneer in the United States and it is the world's 12th largest producer of greenhouse gases.

Blair has already agreed to a climate partnership with California, as have Oregon and Washington. Ten other states and Canada already have adopted California's first global warming law - a statute that requires all new cars to emit 30 percent less global warming pollution by 2016.

Automakers have filed suit to block that regulation. Earlier this month California announced a new lawsuit against six U.S. and Japanese auto manufacturers, alleging their vehicles' emissions have contributed significantly to global warming and harmed the economy and environment of California.

In addition, the U.S. Supreme Court is currently reviewing a lawsuit filed by California and 11 other states, two cities and major environmental groups challenging the U.S. Environmental Protection Agency's refusal to regulate greenhouse gas emissions.

Schwarzenegger said it is only a matter of time before others - including the U.S. federal government - follow California's lead and embrace mandatory emission cuts. The law begins "a bold new era of environmental protection here in California that will change the course of history," he said.

"Other countries like India and China, Brazil and Mexico will join us when they see all the great work that we are doing," Schwarzenegger added. "Also our federal government will follow us. Trust me."

Source: Environmental News Service