[Moral Hazard]

"The other is a strikingly original bill that would bar long-term contracts with any out-of-state utility that failed to meet strict standards for pollution."

Last I heard it was the Federal government's constitutional role to regulate interstate commerce. I have a tough time believing such a law wouldn't be thrown out in court.

[Jeff Chandler]

Any state can regulate who it signs contracts with. California depends on a string of natural gas fired power plants built in Arizona. Burning natural gas produces carbon dioxide. Refusing to sign longterm contracts for power produced by these plants will result in skyrocketing utility costs when spot market prices go up. As a matter of fact, failure to procure longterm energy contracts is what caused the California blackouts a few years ago, and here they might actually codify that kind of folly!