California climate bills signed into law

OREANDA-NEWS. September 13, 2016. California governor Jerry Brown (D) today signed into law legislation extending the state's greenhouse gas emission reduction targets through 2030.

Brown called the two measures "the most aggressive benchmark enacted by any government in North America" to address climate change. One of the bills, SB 32, requires the state to cut GHG emissions by 40pc from 1990 levels, while AB 197 puts in place new legislative oversight of how it meets that target.

"SB 32 and AB 197 are far-reaching moves that continue California on its path of vast innovation and environmental resilience," Brown said.

Brown said the measures will ultimately help the state achieve a long-term goal of cutting GHG emissions by 80pc under 1990 levels by 2050.

SB 32 helps extend the reach of the state's landmark climate law, AB 32, which required the state to cut emissions to 1990 levels by 2020 and gave regulators the authority to create a cap-and-trade program to help meet that target.

"SB 32 sends an unmistakable message that California is resolute in its commitment to remain on that healthy and prosperous course," said state senator Fran Pavley (D), who authored the bill and its predecessor.

But the state legislature approved SB 32 last month with simple majority votes, falling short of the two-thirds support needed to provide legal certainty for the program. The California Chamber of Commerce and others are challenging the legality of the state's use of the program's allowance auctions to raise money for projects that help reduce GHG emissions.

The chamber and other plaintiffs in the lawsuit say the auctions act as a tax, which under state law much be approved by a two-thirds majority. AB 32 passed in 2006 with a simple majority.

The court hearing the case has not set a date for oral arguments, and the groups differ on what they think should happen if they win the case. The chamber has asked the court to stop the sale of allowances to raise money for the state, while allowing other CCAs to be auctioned.

Brown has said he may ask the legislature next year to explicitly authorize an extension of the cap-and-trade program with super-majority votes, or he may ask voters to support a ballot initiative to accomplish the same objective in 2018.

The Air Resources Board is moving ahead with a package of amendments that would extend the cap-and-trade program to help meet the 2030 target, as well as make other changes to help comply with federal CO2 standards and link it to Ontario's carbon market in 2018. The amendments may go before the board for an initial hearing later this month.