Closing the Loophole in California's Global Warming Program
AB 1404 and the California Air Resources Board
Work to implement California’s Global Warming Solutions Act (AB 32) is underway, with a goal of reducing statewide global warming pollution to 1990 levels by 2020. Currently, a loophole in the state’s global warming program would let some polluters buy “offsets"—credits that allow big polluters to avoid reducing their own emissions by paying for emission reductions elsewhere. Because offsets could come from anywhere in the world, California ratepayers and consumers who would indirectly be paying for the offsets may not be able to reap the side-benefits of cleaning up global warming pollution within the state—benefits such as cleaner air, green job creation, and technology innovation.
UCS has helped write state legislation (AB 1404) to limit the use of offsets for compliance with the state’s global warming policies. By limiting the use of “offsets,” AB 1404 will ensure that polluters invest in solutions here in California. By transforming the ways Californians transport themselves, produce and use electricity, and manufacture industrial goods—instead of buying offsets from other areas—we can cut our own global warming pollution while simultaneously spurring clean technology innovation, creating local jobs, and protecting public health.
Governor Arnold Schwarzenegger vetoed AB 1404 on October 11, 2009. However, his veto message did not dispute the substance of the bill. Instead, in his veto message he claimed that the bill was simply premature because the California Air Resources Board (CARB) has not yet made its final recommendations on how to design the state’s global warming policies. Although the veto was disappointing, the fact that the state legislature voted in favor of AB 1404 sends a clear signal to CARB that offsets should be further limited to protect public health and ensure polluters actually reduce their own pollution. UCS will take this powerful message with us as we continue to engage CARB to set an appropriate limit on offsets.
