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In CA, AB32 Legislation at a Crossroads

By Daniel Stouffer

Republish: EasyPublish™ Published: 04Jul2010 Word count: 603 Viewed: 237 time(s) Get Free Content For Your Site

When the state of California opted to run with a far-reaching climate protection initiative, promising significant reductions of greenhouse gas emissions within state borders, legislators were fairly confident that other jurisdictions would also act aggressively. In concert, such actions would indeed make a significant difference to carbon emissions going forward. However, as is often the problem when looking into a crystal ball, this ideal scenario has not materialized and this has presented a problem for CA, AB32 legislation likely to have to stand alone, with all its consequences.

For the state of CA, AB32 was a groundbreaking initiative when it was proposed in 2006 and indeed as part of the bill's declarations; the state noted that AB32 would encourage "other states, the federal government and other countries to act." Many would argue that the effectiveness of AB32 is indeed dependent on the actions of other jurisdictions, most notably as it proposes a restriction of carbon emissions, but that its effectiveness will be measured according to emissions leakage, should other neighbouring locations be regulation free.

When the state of California opted to run with a far-reaching climate protection initiative, promising significant reductions of greenhouse gas emissions within state borders, legislators were fairly confident that other jurisdictions would also act aggressively. In concert, such actions would indeed make a significant difference to carbon emissions going forward. However, as is often the problem when looking into a crystal ball, this ideal scenario has not materialized and this has presented a problem for CA, AB32 legislation likely to have to stand alone, with all its consequences.

The federal government has been painfully slow to push contentious climate bills through and whereas a nationwide carbon emissions trading scheme was engaged when the House of Representatives passed their own bill, it now looks as if it will be significantly watered down before the Senate will pass its own climate care bill.

As the nations who were party to the Kyoto Protocol noted, greenhouse gas emissions cannot be adequately managed unless and until all jurisdictions have some kind of regulatory policy in place. To date, the largest carbon emissions scheme in existence is the European Union's version. As greenhouse gas emissions are of course a global problem, regional initiatives are all well and good, but not the answer. A unified regulatory program is essential before carbon emissions can be curtailed to a point where they can be reduced by 80% through 2050. If the U.S. Senate does not advocate a cap and trade trading scheme, California may be essentially "going it alone" in the United States and there are many risks for CA; AB32's policies may indeed end up being punitive to the state's economy.

It is possible that the implementation of CA AB32 will cause organizations in the state to seek business locations elsewhere. In this respect, those emissions sources could negate the reductions achieved in California. Those organizations that remain within the state could be at a competitive disadvantage, as other companies could operate restriction free.

Despite considerable opposition in CA, AB32 is likely to go ahead, but there is still room for a relaxation of some of the more onerous limitations to allow flexibility in the timing of emissions reductions through the year 2020, which is the target date set within the legislation.

Organizations should pay particular attention to CA AB32, regardless of their physical location in the country. This law is an indication of the growing call for legislation to curtail energy consumption and consequent carbon emissions and each organization is well advised to implement its own efficiency and monitoring system to put itself ahead of the game.

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