California adopts tough climate plan
Governor says effort will spur economy
SACRAMENTO, Calif. – California on Thursday adopted the nation’s most sweeping plan to cut greenhouse gas emissions, issuing rules that could transform the way factories operate, the appliances people buy and the fuel put in their cars.
The Air Resources Board unanimously approved the plan despite warnings it will put costly burdens on businesses at a time when the economy is in extreme crisis, with California forecasting a staggering budget gap of $41.8 billion through mid-2010.
Republican Gov. Arnold Schwarzenegger said he believes the regulations will spur the state’s economy and serve as a model for the rest of the country.
“When you look at today’s depressed economy, green tech is one of the few bright spots out there, which is yet another reason we should move forward on our environmental goals,” Schwarzenegger said in a statement.
The strategy relies on 31 new rules affecting all facets of life, including where people may build their homes and what materials they use to do it.
One central piece is a cap-and-trade program, set to begin in 2012, under which power plants, refineries and big factories will be able to buy and sell the right to emit heat-trapping gases. The program could give plant operators a financial incentive to reduce their carbon emissions.
Air regulators said the average Californian could see more fuel-efficient cars and plug-in hybrids on showroom floors; better public transportation; housing nearer to schools and businesses; and utility rebates to make their homes more energy-efficient.
But there will also be costs: Cars could become more expensive, and Californians can expect higher electric rates as utilities increase their use of renewable energy. Homes built with energy-efficient materials could also prove more costly, as could gasoline reformulated to release less carbon dioxide.
The rules spell out in broad terms how the state intends to carry out a landmark 2006 California law that made the state a leader in confronting climate change. The law – conceived when the economy was in better shape – requires the state to cut greenhouse emissions to 1990 levels by 2020.
Because of California’s size and market clout, its decisions can have effects far beyond the state, with manufacturers around the country often adapting their products to meet California’s stricter standards.