SOLUTIONS Capping Emissions

California's Landmark Legislation to Cap Global Warming Emissions: AB 32
AB 32 was passed by the state legislature and signed by Governor Schwarzenegger in 2006. AB 32 sets in place the nation’s most comprehensive, economy-wide global warming emissions reduction program.

AB 32 requires the state’s global warming emissions to be reduced to 1990 levels by 2020. This reduction will be accomplished through an enforceable statewide cap on global warming emissions that will be phased in starting in 2012.

In order to effectively implement the cap, AB 32 directs the California Air Resources Board (CARB) to develop appropriate regulations and establish a mandatory reporting system to track and monitor global warming emissions levels. CARB is also the agency that will enforce the new regulations.

Mandatory Emissions Reporting
By January 1, 2008, CARB must adopt regulations creating a statewide global warming emissions reporting and monitoring system. The state's largest emitters will be required to report their emissions on an annual basis.

Setting the Cap
Also by January 1, 2008, CARB must determine what the level of global warming emissions was in 1990. That level will become the emissions cap that must be met by 2020.

The Details—A Plan for Making Real Reductions
On June 30, 2007, CARB adopted a list of early
action measures to be adopted by January 1, 2010 that can reduce emissions in the short term.

By January 1, 2009, CARB must prepare a plan for how the 2020 cap can be met in the most cost-effective manner. This plan may include a recommendation for a “cap and trade” system, in which carbon emissions credits or "allowances" in the amount of the cap are distributed and carbon emitters may buy and sell these credits.

If a cap and trade system is developed, the system must be designed to prevent any increase in the emission of toxic or criteria air pollution, and must maximize benefits to California.

CARB will hold a series of public workshops on the plan and give interested parties a chance to make comments.

Implementing Regulations
On or before January 1, 2011, CARB must officially put into place specific regulations to achieve the global warming emission reductions. These regulations must be in effect by the start of 2012. The bill requires CARB to ensure that regulations to reduce global warming emissions meet several criteria.

The regulations must:
• not disproportionately impact low-income
communities;
• complement, and not interfere with, efforts to
achieve and maintain federal and state air quality standards and to reduce toxic air pollution emissions;
• minimize leakage (where reductions in global
warming emissions within California are offset
by increases in emissions outside the state);
• ensure that global warming emissions reductions are real, permanent, quantifiable, and verifiable, and enforceable by CARB; and
• count only emissions reductions that are new—not those that would otherwise occur.

The regulations may also include setting declining annual emissions reduction targets, starting in 2012.