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AB 32 Scoping Plan Beneficial

By Daniel Stouffer

Republish: EasyPublish™ Published: 19May2010 Word count: 488 Viewed: 353 time(s) Get Free Content For Your Site

In 2006, the California state legislature, prompted by Gov. Schwarzenegger, passed landmark legislation, entitled the Global Warming Solutions Act. Code-named AB-32, the legislation sought to implement stringent restrictions on the amount of greenhouse gas emissions that major organizations could emit within state borders. The legislation had a lengthy ramp up period before displaying any real "teeth" but this preliminary journey is almost complete.

California's AB-32 scoping plan was approved by the state legislature at the beginning of 2009. It is now clear that a cap and trade program will be implemented at the beginning of 2012 and that companies must start to gear up and fully understand what implications their compliance will require. It is suggested that the cap and trade program will, through market-based mechanisms, force an overall reduction in carbon emissions.

In 2006, the California state legislature, prompted by Gov. Schwarzenegger, passed landmark legislation, entitled the Global Warming Solutions Act. Code-named AB-32, the legislation sought to implement stringent restrictions on the amount of greenhouse gas emissions that major organizations could emit within state borders. The legislation had a lengthy ramp up period before displaying any real "teeth" but this preliminary journey is almost complete.

The AB-32 scoping plan recognizes the value of voluntary efforts and this is a significant achievement for the renewable energy lobbying regime. The state recognizes that voluntary renewable energy generation can also help to reduce the levels of greenhouse gas emissions and this effort will be given appropriate value under the cap and trade program.

While the Global Warming Solutions Act was seen as far ahead of its time in 2006, a lot has changed since then. We are now even more aware of the damage caused to our world by excess energy use and while the Act still has its detractors, acceptance has grown.

Renewable energy purchases made by individuals on a voluntary basis can be classified and netted against their duties under the cap and trade program. In addition, utilities are encouraged to purchase renewable energy and there are incentives set aside for solar power initiatives.

Credit for voluntary action is now a crucial component of the AB-32 scoping plan and it has been lauded as recognizing the value of private investments in renewable energy. As only approximately 5% of our energy use comes from renewable sources, every effort must be made to encourage its adoption and the revised legislation goes a long way to help this.

If businesses can see that, by purchasing renewable energy certificates under the AB-32 scoping plan, they can reduce their environmental footprint then this could further buoy the renewable energy market. Trading within the voluntary Chicago Climate Exchange, still the United States only real climate cap and trade system, often includes such purchases and registration.

As of January 1, 2010, those organizations that opted to take early action to reduce their emissions are now prompted to do so. The full cap and trade system will come into force at the beginning of 2012.

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