In September 2007, Governor Schwarzennegger signed Assembly Bill 32:  The Global Warming Solutions Act of 2006.

 California, the 12th largest emitter of carbon in the world, calls this a first-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable, cost-effective reductions of greenhouse gases.

 Using market-based incentives, the goal is to reduce carbon emissions to 1990 levels by the year 2020, or a 25 percent reduction.  By 2050, emissions are to be reduced to 80 percent below 1990 levels.

AB 32 requires the California Air Resources Board (CARB) to develop regulations and market mechanisms to reduce greenhouse gas emissions.  Mandatory caps will begin in 2012 for significant sources.  CARB will begin to measure the greenhouse gas emissions of the industries it determines as significant sources of greenhouse gas emissions. 

Specifically, AB32 requires CARB to: 

         Establish a statewide greenhouse gas emissions cap for 2020, based on 1990 emissions by January 1, 2008

         Adopt mandatory reporting rules for significant sources of greenhouse gases by January 1, 2009;

         Adopt a plan by January 1, 2009 indicating how emission reductions will be achieved from significant greenhouse gas sources via regulations, market mechanisms and other actions;

         Adopt regulations by January 1, 2011 to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas, including provisions for using both market mechanisms and alternative compliance mechanisms;

         Convene an Environmental Justice Advisory Committee and an Economic and Technology Advancement Advisory Committee to advise CARB;

         Ensure public notice and opportunity for comment for all CARB actions; and

         Prior to imposing any mandates or authorizing market mechanisms, CARB must evaluate several factors, including but not limited to impacts on California's economy, the environment and public health; equity between regulated entities; electricity reliability; conformance with other environmental laws and ensure that the rules do not disproportionately impact low-income communities.



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