CA: Governor backpedals on emissions - Schwarzenegger: Caps before 2010 would scare off businesses

SAN FRANCISCO — After pushing the nation's most aggressive goals for cutting greenhouse gases, Gov. Arnold Schwarzenegger on Tuesday disappointed many environmentalists by backing a go-slow approach, making industry report its greenhouse emissions but not capping those emissions until 2010. "I think we should start without the caps," Schwarzenegger said at a hearing on greenhouse-gas reductions at San Francisco City Hall. "I think we can accomplish a lot without the caps. I think with the caps we could really scare the business community, and they mightleave California."

Environmentalists said setting a ceiling on releases of greenhouse gases was essential for getting industry to buy cleaner technologies and build more energy-efficient plants.

"What we're hearing today is a lot of talk and no action," said Bill Magavern of the Sierra Club.

Others said it probably would take years for California to set up a regulatory cap, as well as a carbon market, so that hundreds of power plants, cement factories, refineries and other major sources could buy, sell and trade permits to release greenhouse gases at levels under the cap. But they agreed industry needs to know emissions reductions will be required.

"We think a cap is essential and needs to be put into law now, even if it is not implemented now," said Karen Douglas, director of the California Climate Initiative for Environmental Defense. "To get industry to be serious about how does this work, we think there needs to be a commitment to a cap right now."

Advocates for greenhouse-gas reductions at the Union of Concerned Scientists and the Natural Resources Defense Council chalked up the governor's new position to "a matter of timing."

"We just hope the governor doesn't get stalled by some business interests who don't want to do anything," said Dan Kalb, coordinator of California policy for UCS.

Flanked by twin, giant photos of an Austrian glacier, full of ice in 1875 and vanished to reveal grassy alps in 2004, Schwarzenegger asked corporate executives, economists and state lawmakers for advice on curbing emissions in California, the world's 12th largest source.

PG&E president and chairman Peter Darbee said the "problem of global warming is urgent and something we need to deal with."

He prefers uniform federal regulation rather than a patchwork of state limits. But if California is moving toward regulation, Darbee said, "What we think is important is to get the right balance between moving ahead and doing it thoughtfully, so we know that it works."

But some manufacturers and industries warned that greenhouse gas regulations will cost California growth and jobs. Tom Tietz, head of the California-Nevada Cement Promotion Council, said his energy-intensive industry is growing but would be at risk. "We fear that a cap system would effectively force us to import more cement from foreign nations and other states," he told Schwarzenegger.

Three studies of California's goals for greenhouse gas reductions have found little or positive economic impact, with the governor's own advisory team reporting a net gain of 83,000 jobs.

But Margo Thorning, chief economist for the American Council for Capital Formation, said those studies use "non-mainstream" assumptions. Other studies of greenhouse regulations in the U.S. Northeast and Europe found substantial costs, including higher heating and vehicle fueling costs for families.

"If they spend more to insulate their houses, they might not be able to spend as much money on other things," she said.

Thorning also voiced doubts that creating a cap-and-trade program will nudge ahead the kind of technological advances needed to capture greenhouse emissions from fossil fuel burning or find new, carbon-free energy sources.

Manufacturers said much the same thing in 1959 when California led the nation in regulating air pollutants, said Mike Peevey, president of the California Public Utilities Commission.

"Everyone said, 'Oh, you can't do this, you'll screw up the economy,'" Peevey said. "We can deal with the cement industry and not thwart its growth. There are things we can do that are thoughtful and logical. But I do think we need caps."

Assemblywoman Fran Pavley of Southern California authored California's law requiring vehicles to cut greenhouse gas emissions 30 percent and is co-sponsoring legislation that would firm up Schwarzenegger's goals — cuts to 2000 emissions by 2010 and to 1990 levels by 2020 — by ordering the air-pollution agency to come up with reduction strategies.

Climate change is happening faster than many scientists predicted, she said, and California can reap economic benefits by inventing and selling solutions.

"California needs to seize this economic opportunity," Pavley said. "A cap right now would signal the marketplace that we're serious, that we're going to be the home of clean tech to export to other communities."

Associated Press

Gov. Arnold Schwarzenegger answers questions at a climate change summit Tuesday at San Francisco City Hall.

Is it me or did we just witness a 'moderate' climate change. Dang, that was quick. ;-)

How is this really a slowing down? They can't implement caps right now because they have no basis for determining what the caps should be. They will spend two years mandating that businesses start monitoring their emissions, then establish caps, and then their cap-and-trade program.

I don't care if it's 2010 or 2015--it's still bad for California!

Being from California I cannot express to you how much fun it is having Arnold as our Governor.

I woke up this morning to read his nutty-ness and in the space of a few house, he now "backpedals" from stupid ideas he never should have embraced in the 1st place.

I know, we have a language problem with our governor here and he is tone deaf to everyone outside of Sacrament or the Billionaire Boys club but come-on - he does give us some comic relief just when it is needed.

Call it socialism on the installment plan. But hey, this is the Chamber Of Commerce's candidate. I have zero sympathy for them.

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

Speaking of the Chamber of Commerce, I just got spam under that label, the U.S. Chamber of Commerce anyway. It read:

Turning California Around
A U.S. Chamber of Commerce Issue Advocacy Program
Chamber Unveils the "Golden State Action Plan"
What are the seven core competitive challenges California must meet to sustain its prosperity, create opportunities for all residents, and restore its once unsurpassed leadership and quality of life?
You can find out in a new report just released today by the U.S. Chamber of Commerce. The Chamber’s Golden State Action Plan documents the fiscal and economic progress California has made over the past three years and then identifies the key issues the state must confront to remain on the comeback trail.
The Golden State Action Plan is available for downloading at no cost by visiting our Turning California Around website. Go to the site, review the plan carefully, and in the comments section of the website let us know what you think.
Help the California and American business community turn California around!
The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector and region. To find out more, visit the US Chamber of Commerce online.

The report reads like an Arnold campaign flyer... build, build, build so we can sustain growth and provide public programs.

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