While the federal government continues to tangle with Congress over a climate change law, the California Air Resources Board on Dec. 16 went ahead and endorsed its own cap-and-trade regulation.
The measure was a major component in AB 32, California’s climate change law signed by Gov. Arnold Schwarzenegger (R) in 2006. The regulation sets a statewide limit on the emissions from sources responsible for 80% of California’s greenhouse gas emissions and establishes a price signal needed to drive long-term investment in cleaner fuels and more efficient use of energy, according to CARB. It is also designed to provide covered entities the flexibility to seek out and implement the lowest-cost options to reduce emissions.