Schwarzenegger Announces Executive Order (Landmark Greenhouse Gas Legislation Implementation)

Governor's Website ^ | 10/16/2006

[calcowgirl]

10/16/2006         GAAS:760:06           FOR IMMEDIATE RELEASE

Gov. Schwarzenegger Announces Executive Order to Begin Implementation of Landmark Greenhouse Gas Legislation; Focuses on Developing Market-Based Solutions

In conjunction with his meetings with New York Gov. Pataki and New York Mayor Bloomberg, Gov. Schwarzenegger announced an executive order that directs state agencies to begin implementation of AB 32, California's landmark global greenhouse legislation signed last month.

Some of the highlights of the executive order include:

• The Secretary for Environmental Protection shall be the statewide leader for California's greenhouse gas emission reduction programs for state agencies, continuing the leadership role EPA played in the Climate Action Team.

• The Secretary for Environmental Protection shall create a Market Advisory Committee of national and international experts to make recommendations to the State Air Resources Board on or before June 30, 2007, on the design of a market-based compliance program.

• The State Air Resources Board shall collaborate with the Secretary for Environmental Protection and the Climate Action Team to develop a comprehensive market-based compliance program with the goal of creating a program that permits trading with the European Union, the Regional Greenhouse Gas Initiative and other jurisdictions.

Below is the text of the executive order. The Governor is expected to sign it upon his return to California on Tuesday.

WHEREAS California has taken a leadership role in reducing greenhouse gas emissions through its motor vehicle emission standards, the Renewable Portfolio Standard that requires 20 percent electricity to be supplied by renewable power by 2010, world leading energy efficiency standards and programs, solid waste diversion and reuse programs, expanding the use of alternative fuels and investing in the Hydrogen Highway; and

WHEREAS California collaborated with the United Kingdom and signed an historic agreement to partner and work collaboratively to address climate change and promote energy diversity; and

WHEREAS California, through the Western Governors’ Association, has urged the President, Congress, the U.S. Department of State, and other federal agencies to include the interests and expertise of the states as part of any national debate on the impacts of and efforts to reduce greenhouse gas emissions to ensure fully coordinated policies; and

WHEREAS on June 1, 2005 Governor Schwarzenegger signed Executive Order S-3-05 which established the following climate change emission reduction targets for California: By 2010, reduce emissions to 2000 levels; By 2020, reduce emissions to 1990 levels; and By 2050, reduce emissions to 80 percent below 1990 levels; and

WHEREAS the Secretary for Environmental Protection, in order to achieve the climate change emission reduction targets created the Climate Action Team in June 2005. The Climate Action Team is composed of the Secretary of the Business, Transportation and Housing Agency, Secretary of the Department of Food and Agriculture, Secretary of the Resources Agency, Chairperson of the Air Resources Board, Chairperson of the State Energy Resources and Conservation Development Commission and President of the Public Utilities Commission. The Climate Action Team issued a report to the Governor and the Legislature in March 2006; and

WHEREAS on August 27, 2006 Governor Schwarzenegger signed Assembly Bill 32, Núñez and Pavley, Health and Safety Code, Division 25.5, and which requires a cap on greenhouse gas emissions by 2020, mandatory emissions reporting, and the development of a market-based compliance program to achieve the emissions cap in the most cost effective and technologically feasible manner with the least impact on California consumers and business; and

WHEREAS numerous studies, including studies conducted by the University of California, Berkeley, Stanford University, and the Pew Center on Global Climate Change, have determined that market-based mechanisms, including emissions trading, provide an important means for California to reduce greenhouse gas emissions in the most efficient and effective manner possible; and the University of California, Berkeley released a report on the economic benefits of climate action in California and specifically found that regulatory and market-based strategies are complementary; and

WHEREAS existing law directs the Secretary for Environmental Protection to coordinate greenhouse gas emission reduction activities in the State, and the requirements contained in Assembly Bill 32, Health and Safety Code, Division 25.5 will require maximum coordination and input to ensure successful and timely implementation; and

WHEREAS the California Climate Action Registry has developed greenhouse gas emission reporting and/or reduction protocols that ensure accurate reporting of emissions, and the members of the California Climate Action Registry have demonstrated their commitment to reducing greenhouse gas emissions.

NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of California, by virtue of the power vested in me by the Constitution and statutes of the State of California, do hereby order effective immediately:

1. The Secretary for Environmental Protection shall continue to be the statewide leader for California’s greenhouse gas emission reduction programs, shall work with the Climate Action Team, and shall coordinate with the State Air Resources Board in the development of all ongoing efforts related to the implementation of greenhouse gas emission reduction policies and Assembly Bill 32, Health and Safety Code, Division 25.5; and

2. The Secretary for Environmental Protection shall coordinate with the State Air Resources Board, State Energy Resources and Conservation Development Commission, Public Utilities Commission, Integrated Waste Management Board, Resources Agency, Department of Forestry and Fire Protection, Department of Water Resources, Department of Food and Agriculture, Business, Transportation and Housing Agency, and State and Consumer Services Agency to further implement the recommendations in the March 2006 Climate Action Team report; and

3. The Secretary for Environmental Protection shall create a Market Advisory Committee of national and international experts to make recommendations to the State Air Resources Board on or before June 30, 2007, on the design of a market-based compliance program; and

4. The State Air Resources Board shall work with the Secretary for Environmental Protection and the Climate Action Team to bring both regulatory measures and market-based mechanisms forward on a concurrent and expeditious schedule; and

5. The State Air Resources Board shall collaborate with the Secretary for Environmental Protection and the Climate Action Team to develop a comprehensive market-based compliance program with the goal of creating a program that permits trading with the European Union, the Regional Greenhouse Gas Initiative and other jurisdictions. The State Air Resources Board shall consider the recommendations of the Market Advisory Committee in the development of the market-based compliance program; and

6. The Secretary for Environmental Protection will oversee the transition of the greenhouse gas emission inventory development responsibilities and the California Climate Action Registry responsibilities from the State Energy Resources and Conservation Development Commission to the State Air Resources Board; and

7. The State Air Resources Board in coordination with the Secretary for Environmental Protection shall work with the California Climate Action Registry to develop reporting and reduction protocols, including reporting and reduction protocols for local governments and agriculture, and shall support the California Climate Action Registry efforts to develop a multi-state registry; and

8. The State Air Resources Board shall consult with the California Public Utilities Commission and the State Energy Resources and Conservation Development Commission as they develop regulations that will affect electricity and natural gas providers in order to avoid duplicative or inconsistent regulatory requirements. The Secretary for Environmental Protection will facilitate and coordinate these efforts; and

9. The Secretary for Environmental Protection and the Climate Action Team shall coordinate with the State Air Resources Board to develop an economic analysis of efforts to reduce greenhouse gas emissions, including a cost-effectiveness analysis; and

10. The Secretary for Environmental Protection shall coordinate with the Climate Action Team to develop a plan by June 1, 2008 which is based on input from the Economic and Technology Advancement Advisory Committee, that will incentivize investment and compliance, enhance research, and develop and demonstrate greenhouse gas emission reduction technologies through a variety of options including, but not limited to: research tax credits, monetary and non-monetary incentives, public/private partnerships, investment tax credits, and accelerated depreciation.

This Order is not intended to create, and does not create, any right or benefit, whether substantive or procedural, enforceable at law or in equity against the State of California, its agencies, departments, entities, officers, employees, agents, or any other person.

I FURTHER DIRECT that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this Order.

IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 17th day of October 2006.

__________________________________
ARNOLD SCHWARZENEGGER
Governor of California

ATTEST:

__________________________________
BRUCE McPHERSON
Secretary of State

[calcowgirl]

10/16/2006   GAAS:761:06   FOR IMMEDIATE RELEASE   Print Version

California, New York Agree to Explore Linking Greenhouse Gas Emission Credit Trading Markets; Gov. Schwarzenegger Tours Carbon Trading Floor

.

In order to more efficiently reduce greenhouse gas emissions, Gov. Arnold Schwarzenegger and New York Gov. George E. Pataki agreed to explore ways to link California's future greenhouse gas emission credit market and the Northeastern and Mid-Atlantic states' Regional Greenhouse Gas Initiative (RGGI) upcoming market.

"I recently signed legislation giving California the most ambitious greenhouse gas reduction goal in the country. But no one state can do it alone. It truly is a global problem where states, regions and nations must work together to find a solution," said Gov. Schwarzenegger. "So I am happy to announce today that as we implement our new law we will form a greenhouse gas trading partnership with RGGI, the multi-state greenhouse gas cooperative spearheaded by Gov. Pataki."

Gov. Schwarzenegger also announced an executive order directing California Secretary for Environmental Protection Linda Adams to coordinate state climate change policy. The executive order, which will formally be signed on Tuesday, also instructs the secretary to work with the California Air Resources Board to seek to develop a framework that allows California to work together with RGGI. Such an arrangement would help build a large, robust carbon trading market that will dramatically reduce emissions.

RGGI (pronounced ReGGIe) is a cooperative effort by Northeast and Mid-Atlantic states to discuss the design of a regional cap-and-trade program initially covering carbon dioxide emissions from power plants in the region. In the future, RGGI may be extended to include other sources of greenhouse gas emissions, and greenhouse gases other than CO2.

Currently, Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York and Vermont are participating in the RGGI effort. Legislation was signed in April 2006 that requires Maryland to become a full participant in the process by June 30, 2007. In addition, the District of Columbia, Massachusetts, Pennsylvania, Rhode Island, the Eastern Canadian Provinces and New Brunswick are observers in the process.

Earlier in the day, Gov. Schwarzenegger toured a greenhouse gas emissions credit trading desk at Credit Suisse with New York Mayor Michael R. Bloomberg.

"This morning I went to a trading floor where they were helping companies buy and sell emissions credits because I wanted to learn about this marketplace and how it will work in California," said Gov. Schwarzenegger, who hosted Mayor Bloomberg several weeks ago to tour a fuel cell manufacturing facility in the Silicon Valley. "But it also struck me that these jobs were all new jobs being created in the clean-tech industry.  I have said many times that you do not have to choose between a healthy economy and a healthy environment."

The main market for trading greenhouse gas emission credits globally is the European Union Emissions Trading Scheme. Credit Suisse is one of the only major financial institutions with its greenhouse gas emissions credit trading desk based in the U.S. and provides companies and investors with access to the rapidly growing emissions trading markets.

The Governor also visited NASDAQ to ring the opening bell and celebrate the market's new clean-tech index.

"As Governor of California, I am happy to say that NASDAQ lists more than 600 companies from my state - dynamic companies that are the leaders in entertainment, high-tech, bio-tech and now clean-tech," said Gov. Schwarzenegger just prior to the market's opening. "These clean-tech companies will harness new energy sources that are clean and renewable, slash pollution and help us cut greenhouse gas emissions in the fight against global warming. Once again, NASDAQ is on the leading edge by creating a Clean Energy index to track this emerging industry."

Gov. Schwarzenegger has a record of protecting and enhancing the state's environment.

Last month, the Governor signed AB 32, California's landmark greenhouse gas emissions legislation that established a first-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable, cost-effective reductions of greenhouse gases. By doing so, Gov. Schwarzenegger has made California a model for other states and countries to follow in reducing greenhouse gas emissions.

AB 32 requires the California Air Resources Board (CARB) to develop regulations and market mechanisms that will ultimately reduce California's greenhouse gas emissions by 25 percent by 2020. Mandatory caps will begin in 2012 for significant sources and ratchet down to meet the 2020 goals. 

In the interim, CARB will begin to measure the greenhouse gas emissions of the industries it determines as significant sources of greenhouse gas emissions. The bill also provides the Governor the ability to invoke a safety valve and suspend the emissions caps for up to one year in the case of an emergency or significant economic harm.

The Governor has also worked to forge similar agreements with other states, regions and nations. Two months ago at the 24th Annual Border Governors Conference, Gov.  Schwarzenegger called upon his fellow governors to take up the issue of creating a regional, market-based program to cap greenhouse gas emissions at the next meeting.

In July, the Governor signed a unique agreement with British Prime Minister Tony Blair to become partners and act aggressively to address climate change and promote energy diversity and at June's meeting of the Western Governors Association, Gov. Schwarzenegger presented his Climate Action Team's report on reducing greenhouse gases and called on the Western states to take a regional approach to meeting energy needs while protecting the environment.

Because of California's massive and growing economy, the state is the 12th largest emitter of greenhouse gas in the world despite leading the nation in energy efficiency standards and lead role in protecting its environment.

[EagleUSA]

I didn't realize that PANDERING to the leftist greenie-whackos was necessary to be governor...so this will just force MORE industry to relocate out of California....then the socialists will just turn their taxation-mania on the individuals that are remaining in the state...real smart, but they don't care... it isn't their money, even though the socialists think so.

[kinoxi]

This is curious to me.

[oceanview]

what a nightmare.

I don't think the Bush EPA has the guts to stare down CARB, they need an EPA waiver allowing CA to classify CO2 as an auto emission, allowing CARB to regulate it.

[oceanview]

no, its backdoor Kyoto. look at the list of states that are going to participate in this - when enough states with enough population sign on, it will become de-facto law.

[Extremely Extreme Extremist]

California: 09/09/1850 - 10/16/2006 RIP

[EagleUSA]

- when enough states with enough population sign on, it will become de-facto law.
-----
Exactly - then watch what happens to the U.S. trade deficit... all levels of government in this country are fiddling, while AMERICA BURNS TO THE GROUND.

[Extremely Extreme Extremist]

BTTT

[oceanview]

its the auto industry that will be hard it, and automobile consumers, and coal mining and electricity production from coal.

[NormsRevenge]

Has Fabian Nunez asked for his friendship ring back yet? I heard he was upset when he heard of this, this wasn't supposed to be in the script.

[Sacajaweau]

The emissions programs are a lot of crap. You bypass the "ceiling" by buying someone else's allotment. Nothing changes. Kodak did it for years.

[calcowgirl]

its backdoor Kyoto.

That's my take too.

[Extremely Extreme Extremist]

But...but...it's MARKET BASED! How can you oppose envirowacko, er, sensible environmental regulations that's based on the free market? Adam Smith & Thomas Sowell would be proud < /S >

[calcowgirl]

Ping.

[NormsRevenge]

Núñez slams governor on emission law
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/10/17/BAG7ULQPOA1.DTL
Mark Martin

excerpted

(10-17) 04:00 PDT Sacramento -- Assembly Speaker Fabian Núñez and some environmental groups charged Monday that an executive order Gov. Arnold Schwarzenegger plans to sign today undermines an agreement the governor struck with Democrats on the state's landmark global warming law.

--snip--

Núñez said that the executive order gives more power to the executive branch than the law calls for and that the governor's emphasis on a market-based approach to lowering greenhouse gas emissions ignored other aspects of the law. He suggested the governor was reinterpreting the law based on proposals he had suggested to lawmakers during negotiations over the legislation this year but that had been rejected by the Legislature.

"You can't rewrite a law through executive order," said Núñez, D-Los Angeles, who carried the bill. "This is totally inconsistent with the intent of the law and with the way that it is written."

Schwarzenegger spent Monday in New York, where he met with Gov. George Pataki and announced his intent to set up programs with Northeastern states and the European Union that would allow California companies to trade emissions credits with companies in Europe and the Northeast.

The governor also was in New York for a campaign fundraiser hosted by New York Mayor Michael Bloomberg.

Administration officials said the executive order, which the governor announced Monday but can't sign until today, when he returns to California, was intended to clarify the legislation, AB32. Linda Adams, Schwarzenegger's secretary of the EPA, said she would be coordinating many aspects of the new law but that the state's Air Resources Board would ultimately adopt rules governing the state's target of reducing greenhouse gas emissions by 25 percent by 2020.

[concentric circles]

WHEREAS numerous studies have called into question whether climate change is significantly impacted by human activity;

and

WHEREAS numerous studies have demonstrated that no actions by humans will have an impact on the current status of the climate;

It is therefore declared:

I AM A HORSES ASS.

Signed this day, Arnold Schwarzenegger, Governor, California.

[editor-surveyor]

whereas Ahnold is a complete doofus...

[calcowgirl]

Thanks. I was just going to go figure out what you meant by "friendship ring". I guess the honeymoon is over?

Núñez said that the executive order gives more power to the executive branch than the law calls for and that the governor's emphasis on a market-based approach to lowering greenhouse gas emissions ignored other aspects of the law

[oceanview]

yes, but consumers who want SUVs or cars with decent sized engines, will have to "buy credits" from drivers who bought small cars or hybrids. that's where this is heading as far as auto consumers are concerned.