CUTTING CALIFORNIA EMISSIONS COSTS

California has long been a living laboratory for new ideas in the U.S., the good ones and the bad ones. Here it assumes the "cutting edge" crown again by speaking up about the enormous costs and opportunities in taking on emission-cutting.

California Emission Laws Costly
Rosalie Westenskow, July 6, 2007 (UPI)

WHO
Californians, traditionally the canaries in the U.S. coal mine of trends and behaviors
In crisis is opportunity (click to enlarge)

WHAT
The California Global Warming Solutions Act of requires greenhouse gas (GHG) emissions cut to 1990 levels by 2020 and Gov. Schwarzenegger issued an executive order to cut emissions 80% below 1990 levels by 2050. How these goals are obtained and what impact obtaining them has on business and life in California will be carefully considered.

WHEN
The California Global Warming Solutions Act of 2006. Schwarzenegger’s executive order of the same year. Goals are for 2020 and 2050

WHERE
California

WHY
- According to a California report on the goals, 4 policies get the state to the 2020 goals.
(1) A good cap-and-trade system, by setting strict limits on emissions and forcing the purchase of credits to emit beyond the limits would get to the 2020 goal.
(2) The state’s Renewable Portfolio Standard (RPS) requiring power producers to use 20% renewables by 2020 also gets to the first target.
- Only 2 get it to the 2050 goals.
(3) All current and potential energy sources, including maximum solar, wind and carbon sequestration/storage. Price: $511 billion
(4) Same as (1) plus nuclear. Price: $444 billion


- Nuclear is controversial. Advocates like it because it is large scale, predictable and emission-free. Opponents have questions: What do you do with the waste? What about the dangers of accidents, weapons proliferation and terror attacks? What about the need for massive amounts of water?
- The goals may be more obtainable than this assessment indicates if the state has partners in its efforts. A regional compact is developing with Oregon, Washington, California, Arizona, New Mexico and Utah.
- Many believe the development of renewable energy and emissions cutting programs will grow the economy and significantly cut the projected costs. This is already what is happening.

QUOTES
- Samuel Thernstrom, culture/freedom director, conservative think tank American Enterprise Institute: "The stakes are obviously very high…If California succeeds in this effort, that would be a remarkable achievement. If it fails, then the critics of greenhouse gas regulations will point to it as justification to take a very different approach with national policy."
- David Montgomery, vice president, business consultants CRA International: "There will be a cost ... in all scenarios that meet the targets by 2020…If we look at broad, market-based policies, such as cap and trade, they beat command and control regulations hands down… When you have nuclear power available without emissions, you can provide more energy…"
- Deborah Nelson, spokesperson, pro-nuclear CASEnergy Coalition: "A diverse mix of renewable energy sources, including nuclear power, is our best chance for a real solution to meet our growing energy needs in the U.S."
- Dallas Burtraw, senior fellow, non-partisan think tank Resources for the Future: "There is a good chance that California will not act alone…What is in this report is in some sense a worst-case scenario because it's California going it alone."
- Kit Batten, director of environmental policy, liberal think tank Center for American Progress: "In being a leader in terms of taking a strong stance on reducing the state's emissions, California is also opening up new business opportunities for the state…There's a buzz in California about the low-carbon energy future being the new dot-com boom."
- Nancy Rader, executive director, California Wind Energy Association: "All the considerable progress that we've made toward the 2020 goal indicates that we'll be able to achieve the 20 percent goal with no significant additional cost than if we were getting energy from fossil fuels…"