U.S. States & Regions
States and regions across the country are adopting climate policies, including the development of regional greenhouse gas reduction markets, the creation of state and local climate action and adaptation plans, and increasing renewable energy generation. Read More
On October 5, 2006, Illinois Governor Rod Blagojevich signed an executive order launching a new global warming initiative and mandating a 6 percent cut in the state government’s greenhouse gas emissions by 2010. The Governor also announced that Illinois will become the second state (after New Mexico) to join the Chicago Climate Exchange, a voluntary emissions trading market, and that the state will buy credits on the exchange should it fail to reach its emissions goals. The executive order directed the formation of a Climate Change Advisory Group to consider strategies and make recommendations on how the state can best reduce its greenhouse gas emissions. The Advisory Group, which includes scientists and representatives from business, industry, and the environmental community, must present its findings and recommendations to the Governor by June 30, 2007.
Schwarzenegger Signs Historic Global Warming Legislation, Electricity Emissions Standard Bill, Renewable Energy Bill
As September 2006 drew to a close Governor Arnold Schwarzenegger signed three pieces of legislation that will reduce California’s greenhouse gas emissions. Governor Schwarzenegger signed the most comprehensive of the new laws, the landmark Global Warming Solutions Act (AB 32) at an official ceremony on September 27. The law caps the state’s greenhouse gas emissions at 1990 levels by 2020. This emissions target is approximately equal to a 25% reduction from current levels and is the first statewide program in the country to mandate an economy-wide emissions cap that includes enforceable penalties. The bill requires the State Air Resources Board to establish a program for statewide greenhouse gas emissions reporting and to monitor and enforce compliance with this program. It also authorizes the state board to adopt market-based compliance mechanisms including emissions cap-and-trade, and allows a one-year extension of the targets under extraordinary circumstances.
Two days later, on September 29, Governor Schwarzenegger signed SB 1368, authored by State Senator Don Perata. The new law directs the California Energy Commission to set a greenhouse gas performance standard for electricity procured by local publicly owned utilities, whether it is generated within state borders or imported from plants in other states, and will apply to all new long-term electricity contracts. The standard – to be adopted by June 30, 2007 – will discourage the purchasing of electricity produced from high-emissions sources, whether instate or out-of-state. It will push utilities to rely more on clean sources, including coal with carbon capture and sequestration, and renewables. This will help California to achieve its new economy-wide emissions targets.
Earlier in the same week, on September 26 Governor Schwarzenegger signed SB 107, which requires California’s three major utilities – Pacific Gas & Electric, Southern Edison, and San Diego Gas & Electric – to produce at least 20 percent of their electricity using renewable sources by 2010.
SB 1368 (pdf)
SB 107 (pdf)
List of Emissions Reduction Targets Worldwide
Map of States with GHG Emissions Targets
On September 8, 2006, Arizona Governor Janet Napolitano issued an executive order to implement recommendations included in the Climate Change Advisory Group’s Climate Action Plan. The Governor established a statewide goal to reduce Arizona’s GHG emissions to 2000 levels by 2020, and 50% below this level by 2040. The executive order directs the Arizona Department of Environmental Quality to develop a GHG emissions reporting mechanism, to establish a GHG registry with other Western states, and to coordinate with the Arizona Department of Transportation to adopt and implement California’s vehicle GHG standards. The Executive Order also creates a Climate Change Executive Committee to develop a strategy to implement the other recommendations contained in the Climate Action Plan.
On August 21, 2006, California Governor Arnold Schwarzenegger signed a bill expanding the state’s $3.2 billion solar subsidy program to include incentives to customers of municipally owned utilities. The bill provides for the installation of 1 million rooftop solar panels, which would generate approximately 3,000 megawatts of solar electric power and reduce greenhouse emissions by 3 million tons per year. The new legislation requires homebuilders to offer rooftop solar panels to prospective home buyers beginning in 2011, and increases the cap on the number of customers who can sell excess energy back to power companies from 0.5 to 2.5 percent.
Regional Greenhouse Gas Initiative Releases Final Model Rule
On August 15, 2006, the seven Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI) released the final model rule for the program. RGGI is a mandatory cap-and-trade program designed to reduce CO2 emissions from power plants. The model rule provides a set of regulations for the structure and function of RGGI. Each state that intends to participate in RGGI must adopt this rule through legislation or regulation. The final model rule incorporates public comments received on earlier drafts from formal stakeholders and interested parties. The participating states also agreed to amend their December 2005 Memorandum of Understanding, simplifying the safety valve and offset provisions of the program. Currently, Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont have signed the memorandum of understanding, and Maryland has committed to joining the initiative by 2007.
On August 11, 2006, Indiana Governor Mitch Daniels signed an executive order creating the Interagency Council on Energy. The council will provide energy policy advice to the governor and General Assembly, oversee the implementation of a plan to improve energy efficiency, and promote in-state production of clean energy. In particular, the plan encourages use of clean coal and biomass to produce electricity and transportation fuels. Governor Daniels also signed Executive Order 06-14 mandating that at least 10 percent of electricity used in state government buildings come from domestically produced, renewable energy by 2010, and increase to 25% by 2025. In addition, state fleet vehicle replacements must be able to use alternative fuels.
Market Mechanisms for Greenhouse Gas Emissions Reductions: Lessons for California
Prepared by the Pew Center on Global Climate Change
California is currently considering legislation that would establish state-wide caps on greenhouse gas emissions. This paper is based on extensive research by the Pew Center and others on the use of market mechanisms to reduce greenhouse gas emissions. It begins with a summary of possible solutions for the state, and then provides more detailed background on market mechanisms, with particular attention to relevant lessons for California.
On July 31, 2006, California Governor Schwarzenegger and British Prime Minister Tony Blair signed an agreement to act collaboratively to address climate change. The agreement commits both California and the United Kingdom to: enhance linkages between their respective scientific communities to assess the impacts of climate change at the regional level; share information on the economic impacts of climate change and of potential mitigation strategies and adaptation measures; collaborate on technology research, especially for the energy sector; evaluate and implement market-based mechanisms and explore the potential for linkages between such mechanisms in California and the UK. Blair and Schwarzenegger announced the agreement at a meeting with prominent Californian and European business leaders on climate issues.
On July 25, 2006, Connecticut Governor Jodi Rell signed “An Act Concerning Clean Cars” into law. This legislation, which goes into effect in October 2007, requires automobile manufacturers to affix a label to vehicles sold in the state detailing the vehicle’s greenhouse gas (GHG) emissions. The law bars both the sale and the lease of 2009 or later models without the required GHG label. The labeling program will be funded through a $5 fee on new car registrations. The new law also requires Connecticut’s Department of Environmental Protection and Department of Motor Vehicles to create an education program to disseminate information about global warming and the effect of vehicle choice on GHG emissions.
On July 7, 2006, Michigan Governor Jennifer Granholm signed into law legislation creating incentives for the production, distribution, and purchase of alternative fuels. The seven-bill package lowers the state tax on each gallon of ethanol-blended fuel from 19 cents to 12 cents and on biodiesel fuels from 15 cents per gallon to 12. The legislation also allows for the creation of new agriculture renaissance zones (i.e. regions of the state set aside as virtually tax-free) for companies producing ethanol and biodiesel and it provides grants to renovate or expand existing service stations to make E-85 and biodiesel available.