California adopts Cap-n-Trade

[Landslide Lyndon]

http://online.wsj.com/article/SB10001424052748703395204576024650186378260.html?mod=WSJ_WSJ_US_News_5

By CASSANDRA SWEET

SAN FRANCISCO --California regulators late Thursday adopted the first large-scale cap-and-trade program in the U.S., in a move officials say will protect the environment without hurting the state's still-struggling economy.

In a 9-1 vote, the state Air Resources Board voted to adopt rules, scheduled to start in 2012, that place a limit on greenhouse-gas emissions for the state that will decline over time.

Power plants, refineries and other industrial facilities that emit carbon dioxide and can't cut their emissions by the required amount will be able to obtain pollution allowances from the state or buy them from other emitters with excess allowances.

Gov. Arnold Schwarzenegger said the cap-and-trade rules will help fight climate change and also boost California's clean-technology industry and overall economy.

"Billions of dollars are being poured into California in clean technology venture capital investment," Mr. Schwarzenegger said. "Of course, we have to be sensitive because it's an economic downturn, and this Air Resources Board knows they have to be sensitive. But we have to reach our goals by 2020."

Companies with facilities that emit carbon dioxide could also purchase carbon credits, or offsets, tied to emission-reduction projects, such as forests that are managed to contain carbon dioxide, to comply with required emission cuts.

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[Landslide Lyndon]

What happened to the idea of States as Laboratories of Democracy and political experiment?