[Vision2020] Terminator Terminates Greenhouse Gases

[Ted Moffett]

*http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/08/31/WARMING.TMP*
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*(08-31) 04:00 PDT Sacramento* -- California will become the first state in
the country to require industries to lower greenhouse gas emissions under a
deal struck Wednesday by Gov. Arnold Schwarzenegger and Democrats that could
dramatically reshape the state's economy.

After weeks of intense negotiations between the administration and
legislative leaders, and just a few hours after Schwarzenegger threatened to
veto the bill, Democrats and the governor announced an agreement on
legislation that sends the state on a markedly different environmental path
from the federal government.

By 2020, when industries would have to lower carbon dioxide and other
greenhouse gases by 25 percent, solar panels, alternative fuels and electric
cars could be commonplace, according to advocates of the legislation.

The deal marks a major political victory for Schwarzenegger, who will use
the first-of-its-kind legislation as a centerpiece of his re-election
campaign. It was hailed by environmentalists, some business groups and
lawmakers as a revolutionary step in the country's nascent efforts to combat
global warming. Assembly Speaker Fabian Núñez, who is carrying the
legislation, called Wednesday the "most important day of my legislative
career."

"The fact is that if we do not do something to stop carbon emissions in this
world, we are going to see a diminution of the quality of life and,
eventually, all life," declared Senate President Pro Tem Don Perata,
D-Oakland, at a celebratory press conference.

The legislation will require all businesses, from automakers to cement
manufacturers, to reduce emissions beginning as early as 2012 to meet the
2020 cap. The state's 11-member Air Resources Board, which is appointed by
the governor, will be charged with developing targets for each industry and
for seeing that those targets are met. The board now will embark on a
years-long process to fully develop regulations. The board could impose fees
on some industries to pay for new programs that could do everything from
requiring truckers to use bio-diesel fuels to forcing farmers to handle
animal waste differently.

The board is likely to set up a trading system that will allow companies to
buy and sell emission credits, which would allow a company that made more
emission reductions than required to sell credits to another business that
hasn't reached its emission goal.

While some business groups argued that a cap on greenhouse gas emissions
would hurt the economy and drive up energy prices, both the governor and
Democrats have long agreed on the main principles of the bill. But
differences on a few points threatened to kill a deal, and the agreement
came Wednesday only after sometimes-tense talks involving the
administration, Democrats, environmentalists and businesses of all kinds.

Núñez was seen screaming at a Senate staffer about the bill in a crowded
Capitol hallway Monday. The measure went through more than 30 drafts in the
past two weeks, as various groups demanded changes. In the end,
Schwarzenegger agreed to a deal after Democrats warned him Wednesday that
they would not accept any further alterations.

As late as Wednesday morning, the governor and aides were telling some in
the Capitol that they would veto the bill, but a few hours later they
announced they were happy with it. Democrats believed the governor would not
veto the bill in its latest incarnation for fear of looking like a hypocrite
-- he had, after all, announced greenhouse gas reduction goals for the state
last year in a major speech in San Francisco.

Schwarzenegger had insisted on creating an escape clause that would allow
for a delay in the deadlines in case of a natural or economic disaster. He
got that.

The governor also demanded that the bill require that a trading system be
created to help industries meet the targets. While the final version of the
legislation points the way toward a trading system, some argued it was not
specifically required and that the governor did not get what he wanted.
British Petroleum announced late Wednesday it would not support the bill
because it seemed unclear as to whether a trading system would actually
develop.

The legislation was expected to be voted on in the state Senate late
Wednesday and in the Assembly Thursday, the last day of the legislative
session. The majority Democrats have enough votes to pass the bill on their
own and it was clear Wednesday that Schwarzenegger would win little support
from Republican lawmakers.

Assembly Republican Leader George Plescia of San Diego condemned the
agreement shortly after it was announced.

"Adopting costly and unattainable regulations will drive businesses and jobs
out of California into other states -- and even into other countries with no
commitment to improve air quality," he said in a statement.

The legislation split the business community, with the state Chamber of
Commerce leading the opposition.

But some venture capitalists and businesses, including Pacific Gas and
Electric Co., support the bill and argue it will be a boon to the economy by
creating an entirely new clean-tech sector that could rival the high-tech
boom.

"Both the environment and the economy win," said Andrew Michael, vice
president of sustainable energy for the Bay Area Council, a business group
that includes the 275 largest employers in the Bay Area.

Michael argued that new companies developing environmentally clean
technologies will create jobs in California, and companies could save money
by becoming more energy efficient.

When he signs the bill next month, Schwarzenegger will take action on an
issue that has largely been ignored by President Bush and Congress.
Supporters of the legislation noted that California has often led the way in
making major environmental changes and they predicted other states would
pass their own versions of the new law. Illinois lawmakers spent an hour
with one of the bill's authors, Assemblywoman Fran Pavley, D-Agoura Hills,
last week asking questions about the bill, Pavley said Wednesday.

"This is the tipping point in the country's climate-change debate,"
predicted Bob Epstein, head of the business group Environmental
Entrepreneurs.
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What it does

California's groundbreaking global warming legislation would:

-- Require a 25 percent reduction in greenhouse gas emissions by 2020.

-- Require the state's Air Resources Board to be the lead agency in
developing caps and regulations for industries.

-- Require the board to develop rules for a cap and trade system, which
would allow companies to buy and sell emission credits in order to reach
industry-wide caps.

-- Allow the governor to delay the deadline for up to one year in the event
of natural disasters or other extraordinary circumstances. Page A - 1
URL: http://sfgate.com/cgi-bin/article.cgi?file=/c/a/2006/08/31/WARMING.TMP

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Vision2020 Post: Ted Moffett
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