California would become the first US state to impose a limit on all greenhouse gas emissions, including those from industrial plants, under a landmark deal reached by Governor Arnold Schwarzenegger and legislative Democrats.
The accord, concluded on Wednesday, will give the state the toughest greenhouse laws in the nation and possibly spur a reluctant Washington to take similar action.
Schwarzenegger, who has accused fellow Republican President George W. Bush of failing to demonstrate leadership on climate change, said he reached a "historic agreement" with Democrats to make California a world leader in reducing carbon emissions.
PHOTO: AFP
"The success of our system will be an example for other states and nations to follow as the fight against climate change continues," Schwarzenegger said in a statement after weeks of often difficult negotiations.
The bill now seems certain to win approval this week in a vote in the state Senate and Assembly, where Democrats hold majorities.
Despite opposition from within his own party, Schwarzenegger was expected to support the bill since he has made much of his environmental record in his re-election bid.
Green policies are popular among voters in environmentally conscious California, the world's eighth-largest economy and 12th largest producer of greenhouse gas emissions.
California's Global Warming Solutions Act aims to cut emissions to 1990 levels, or around 25 percent, by 2020 with an enforceable cap and mandatory reporting for top polluters like oil and energy companies.
The US is the world's largest producer of the heat-trapping gases that many scientists link to extreme weather like violent hurricanes and rising sea levels.
But Bush pulled the US out of the 160-nation Kyoto Protocol to cut greenhouse gas emissions in 2001, arguing that it would hurt the economy and unfairly excluded developing nations like China.
California's breakthrough on global warming could have a "huge" impact on policy in Washington, said Fred Krupp, president of environmental advocacy group Environmental Defense. "This adds tremendous momentum to the already growing momentum and makes it more likely than ever that Washington will act."
He said companies are ahead of politicians on global warming and have expressed a preference for a national framework on cutting emissions rather than "a patchwork quilt of state regulations."
Worried about the impact on business, Schwarzenegger pushed for a market-based system that will eventually give companies tools to meet emissions targets, like carbon credit trading.
"We created a clear path to allow California to enter into that market-based system and we're very proud we were able to reach that agreement with the governor," said bill author and Assembly Speaker Fabian Nunez, a Los Angeles Democrat.
But there was still considerable opposition in industrial and energy circles.
"It is unfortunate such important legislation is being put together at the last minute without proper review and scrutiny, especially because of its great potential to harm the economy," said Tupper Hull, a spokesman for the Allied Western States Petroleum Association.
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