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California looking to enact its own Kyoto like law

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Old 04-04-06, 07:38 AM
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Default California looking to enact its own Kyoto like law

(I wonder what this will mean for car regulations in CA, not to mention its economy)

California Bill Seeks to Limit Global-Warming Gases

April 3 (Bloomberg) -- California would become the first state in the U.S. to require power plants, oil refineries and other businesses to cut their emissions of gases that contribute to global warming under a bill introduced by Democrats today.

The legislation would require California, the most-populous U.S. state, to cap the emissions of so-called greenhouse gases to 1990 levels by 2020. The rules are meant to provide an incentive for investments in new technologies and spur similar moves in other states, supporters said.

``It's time for California to take a leadership role in the challenge that is global warming,'' Assemblyman Fabian Nunez, the Democrat who leads the Assembly, told reporters in his capitol office. ``This is not just about the future, it's about the impacts that global warming is already having.''

California Governor Arnold Schwarzenegger, a Republican who is running for re-election this year, has said the state should move toward cutting its emissions to 1990 levels and charged state environmental officials with studying how to achieve it. One state lawmaker said it was necessary to make the emission cuts mandatory, as opposed to crafting incentives to encourage businesses to meet the targets.

``We're sending a signal that we're serious,'' Fran Pavley, a Democrat and co-sponsor of the bill, told reporters. ``It's important that we get out in front of this issue.''

Bill Maile, a spokesman for the governor, said that while the governor hasn't seen the legislation, he is looking forward to working with lawmakers.

``It's a positive sign that so many people are moving forward on this important issue,'' Maile said.

Kyoto Protocol

The California bill would be the toughest in the nation, making businesses there subject to mandatory emission cuts that President George W. Bush has resisted implementing nationwide. The U.S. has declined to participate in the Kyoto Protocol, which calls for industrial nations to reduce emissions below 1990 levels by 2010. Bush, a Republican, has said compliance would cost at least 5 million jobs.

California's effort to regulate emissions in the absence of federal policy may harm its economy by providing an incentive for businesses to move elsewhere, said Cathy Reheis-Boyd, the chief operating officer of the Western States Petroleum Association, which represents oil companies in the west and is critical of the bill.

``We think it should be best addressed at a national level,'' she said.

Governor's Report

Also today, Schwarzenegger's Environmental Protection Agency issued a report calling for greater controls on car pollution, more use of renewable energy and other steps, such as a market-based system for trading emissions, to meet the governor's goals.

Implementing the goals may cost $7.9 billion in investment through 2020, the EPA said, while producing $9 billion in savings for consumers.

``Global warming and the pollution from fossil fuels are threats here in California and around the world,'' said Schwarzenegger in a statement after the release of the EPA report. ``I'm very proud of California's leadership in the movement to reduce greenhouse gases. We are an environmental partner not only to our nation, but to nations around the world.''

Automobile Fight

California is the world's 12th-largest source of greenhouse gasses, which trap heat in the atmosphere and are considered a major source of the rise in global temperatures. Cars are California's single-largest source of the emissions, accounting for 41 percent. By comparison, 23 percent come from industrial sites and 20 percent from power stations.

California has already advanced measures to curb tailpipe emissions from cars. In 2004, it became the first state to pass rules requiring cars to produce less carbon dioxide beginning with 2009 models. The rules have since been challenged by the automobile industry, which argued that only the U.S. government has the power to set the fuel economy standards that would follow from the rules.

Backers of the bill said global warming, if left unchecked, threatens state industries such as agriculture, tourism and timber production.

The measure would target the emissions of companies such as PG&E Corp. and Edison International, the state's two largest utilities, as well as the operators of oil refineries including BP Plc and Chevron Corp.

Under the legislation, the California Air Resources Board would develop a system for reporting and tracking emissions. The bill allows for regulators to coordinate with other U.S. states and countries to reduce emissions.

To contact the reporter on this story:
William Selway in San Francisco at at wselway@bloomberg.net.

Last Updated: April 3, 2006 16:25 EDT
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