Assembly Bill 32, the Global Warming Solutions Act of 2006, requires that California reduce its greenhouse gas emissions (GGE) to 1990 levels, a 30 percent emission reduction, by 2020, and requires a further 80 percent cut by 2050.

The California Air Resources Board (CARB), the lead agency for implementing AB 32, released a Climate Change Draft Scoping Plan in late 2008 to serve as a roadmap for the regulatory process over the next two years. Regulations are scheduled to take effect on January 1, 2012; however, certain early action measures will be enforceable starting January 1, 2010.

The San Diego Regional Chamber of Commerce has partnered with a diverse group of San Diego business leaders to educate our member companies on the complexity of the legislation, to identify the opportunities associated with GGE reduction, and to inform the CARB of our members' concerns.

While the business community understands the need to reduce GGE and to protect the environment, there is legitimate concern that implementation of the groundbreaking legislation can trigger unintended consequences, including lost jobs and economic production.

The Chamber and its coalition partners believe that the CARB must reduce the overall carbon footprint while balancing industry compliance obligations, mitigating negative impacts on the economy and supporting California competitiveness.

Many companies have already implemented measures to reduce their carbon footprints voluntarily. As the CARB develops its greenhouse gas inventory and baseline industry numbers, these companies that have reduced their emissions already should not be penalized.

The Chamber and its coalition partners have developed a set of principles around which specific comments on proposed regulations will be structured going forward. These principles include the need to establish market-based mechanisms for GGE reduction, such as cap-and-trade. Under such a system, the government sets a cap on business or industry emissions, but some businesses or industries by necessity are allowed to operate above the caps by purchasing credits from other businesses and industries on the open market. The result is that GGE overall are reduced while some businesses necessarily operate above the caps.

Other issues to address include: 1) how interstate trade will be affected if California GGE regulations are more strict than other states'; 2) that penalties collected from local businesses be funneled back into compliance programs in that area; 3) that reduction targets be based on reasonably feasible technology; and 4) that adjustments to regulatory requirements be made as better alternatives appear.

 ABOUT THE AUTHOR: Angelika Villagrana is Executive Director of Public Policy for the Chamber. She can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

                                        

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