Original Version 1:

Statement by Gov. Schwarzenegger on Historic Agreement with Legislature to Combat Global Warming

Gov. Schwarzenegger released the following statement regarding a deal struck between the Administration and the legislature on AB 32:

“Today, I am happy to announce we have reached a historic agreement on legislation to combat global warming.

“We can now move forward with developing a market-based system that makes California a world leader in the effort to reduce carbon emissions. The success of our system will be an example for other states and nations to follow as the fight against climate change continues. AB 32 strengthens our economy, cleans our environment and once again, establishes California as the leader in environmental protection.

“Throughout the negotiations, my primary concern was that the Legislature passed a bill that provided the flexibility to address unforeseen circumstances. AB 32 will ensure that the state can make adjustments throughout its implementation.

"When I ran for office, I promised to not only help protect the environment, but also help turn back the clock to make sure that the environment we leave for our children is better than the one we have today. The state is the 12th largest carbon emitter in the world despite leading the nation in energy efficiency standards and its lead role in protecting its environment. Reducing greenhouse gas emissions is an issue we must show leadership on.

“It’s amazing the work that can be done for the people of California when Democrats and Republicans work together. I want to thank Assembly Speaker Fabian Nunez, Senator Don Perata and Assemblymember Fran Pavley for the hard work they have put in to make this agreement something we can all be proud of.”

Original Version 2:

AB 32 in the Sacramento Bee

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Governor, lawmakers strike deal on greenhouse gases By Judy Lin -- Bee
Capitol Bureau Published 4:16 pm PDT Wednesday, August 30, 2006
Democratic lawmakers and Gov. Arnold Schwarzenegger on Wednesday struck
a deal on legislation to reduce the state's greenhouse gas emissions by

25 percent over the next two decades.
Assembly Speaker Fabian Nunez, D-Los Angeles, hailed the long-bargained
agreement as a ground-breaking bill that has the potential to influence
the rest of the nation.

"This is the most important day of my brief legislative career," Nunez said.

Schwarzenegger has pledged to sign Assembly Bill 32, which is expected
to be voted on in the Senate later Wednesday.

"We can now move forward with developing a market-based system that
makes California a world leader in the effort to reduce carbon
emissions," he said in a statement. "The success of our system will be
an example for other states and nations to follow as the fight against
climate change continues. AB 32 strengthens our economy, cleans our
environment and once again, establishes California as the leader in
environmental protection."

His fellow Republicans in the Legislature said the bill was the wrong
approach.

"Adopting costly and unattainable regulations will drive businesses and
jobs out of California into other states - and even into other countries
with no commitment to improve air quality," said assembly Republican
leader George Plescia, R-La Jolla. "We need a national consensus to
truly have an impact on this problem, not a state-by-state approach that
will harm businesses and make matters even worse."

Under the bill, California would take the lead in limiting greenhouse
gas by reducing emissions to 1990 levels by the year 2020.

Starting in 2012, the state would enforce a statewide cap on industries'
emissions.

The bill directs the California Air Resources Board to develop
regulations, as well as establish a mandatory reporting system to track
emissions.

"California is acting while Washington drags its feet," said Jim Marston
senior attorney with Environmental Defense. "This bill sets the stage
for Governor Schwarzenegger to make history and get America's global
warming policy on track with the rest of the world."

According to the Union of Concerned Scientists, California is the
world's 12th largest source of carbon dioxide - the chief heat-trapping
gas that causes global warming.

Advocates argue that by restricting greenhouse gas emissions, the state
would motivate more businesses to develop and use more green technology
- creating more jobs and wealth for the state's economy.

Two economic analyses suggested the state could generate 83,000 jobs and
$4 billion in income by 2020.

Advocates estimate the state will reduce 174 million metric tons of
greenhouse gases.

Reaching the deal involved a tremendous amount of negotiating. On
several occasions, Nunez said he was "ready to throw in the towel."

At issue was the governor's request for mandatory market trading on
carbon emissions, which would help businesses meet their quotas at the
lowest cost.

Some environmental groups opposed such trading, fearing it would enable
businesses to sidestep emission requirements.

In the end, the bill does not require trading, but instead directs the
Air Resources Board to set up a roadmap for trading.

Administration officials also want broad oversight, arguing that the Air
Resources Board lacked the expertise to regulate so many industries. But
lawmakers prevailed in the end, and the board retains oversight under
the bill.

At one point, amendments to the bill had called for a council made up of
five seats appointed by the governor and four appointed by the
Legislature.

Schwarzenegger had expressed concern that the bill lacked an escape
clause that would allow the government to lift caps in case of
unexpected circumstances. Administration officials cited the state's
energy crisis as a prime example of why the state needs to have the
power to intervene.

Under the agreement, the governor has one year to lift the cap under
extreme circumstances.

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Original Version:

Calif. proposes anti-global warming bill

By SAMANTHA YOUNG, Associated Press Writer 6 minutes ago

SACRAMENTO, Calif. - California will impose broad caps on its greenhouse-gas emissions under a landmark plan that marks a clear break with the federal government and which backers hope will become a national model.

The plan came after weeks of difficult negotiations and was sent to the state Senate, which approved it late Wednesday with a 23-14 vote. If approved by the Democratically-controlled Assembly, which is expected, the bill would then go to the governor's desk.

"My main objective was getting a bill that the environmental community can champion around the country and say, 'California did this, and you should be too.' And we did that," said Assembly Speaker Fabian Nunez, a Democrat.