The California Global Warming Solutions Act of 2006

The California Global Warming Solutions Act of 2006, also known as AB 32, is a landmark piece of legislation that established the first economy-wide cap-and-trade program in the United States. The law requires California to reduce its greenhouse gas (GHG) emissions to 1990 levels by 2020 and to continue reducing emissions beyond that date. This article will explore the key provisions of AB 32 and its impact on California's efforts to combat climate change.

Background and Key Provisions

AB 32 was signed into law by then-Governor Arnold Schwarzenegger on September 27, 2006, and was amended in 2016 by SB 32, which extended the state's GHG reduction targets to 40% below 1990 levels by 2030. The law requires the California Air Resources Board (CARB) to develop and implement regulations to achieve the state's GHG reduction targets.

The law includes several key provisions, including:

Establishment of a cap-and-trade program: The law requires CARB to establish a cap-and-trade program that sets a statewide limit on GHG emissions and allows regulated entities to buy and sell emission allowances. The program covers the electricity, industrial, transportation, and residential and commercial sectors.

Renewable portfolio standard (RPS): The law requires utilities to increase their use of renewable energy sources, such as wind and solar, to 33% by 2020.

Low carbon fuel standard (LCFS): The law requires a 10% reduction in the carbon intensity of transportation fuels by 2020.

Energy efficiency standards: The law requires the state to adopt energy efficiency standards for buildings and appliances.

Reporting and monitoring: The law requires businesses to report their GHG emissions and to monitor their emissions over time.

Impact and Challenges

AB 32 has had a significant impact on California's efforts to combat climate change. According to CARB, California's GHG emissions were 430 million metric tons in 2016, which is below the 2020 target of 431 million metric tons. The state is on track to meet its 2030 target of 260 million metric tons, although significant reductions in transportation emissions will be needed to achieve this goal.

The cap-and-trade program has been a key driver of emissions reductions in California. The program has generated billions of dollars in revenue, which has been used to fund renewable energy projects, public transit, and other programs that reduce GHG emissions. However, the program has also faced legal challenges, including a lawsuit that argued that the program violates California's constitutional limits on taxation.

The RPS and LCFS programs have also been successful in driving emissions reductions in the electricity and transportation sectors, respectively. However, the LCFS program has faced challenges in meeting its targets due to a lack of low-carbon fuel sources.

 

Conclusion

AB 32 is a landmark piece of legislation that has established California as a leader in the fight against climate change. The law has successfully driven emissions reductions in California and has served as a model for other states and countries seeking to establish their own climate policies. However, the law has also faced legal and implementation challenges, and continued efforts will be needed to meet California's ambitious GHG reduction targets.