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212   LEED—LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN


                Statement by Cal/EPA Secretary

                Regarding Assembly Bill 32


                 The main objective of SB 32 is an aggressive measure to control emission of greenhouse gases.
                 The governor has set aggressive goals to reduce emissions to 1990 levels by 2020, which means
                 that Californians must legislate regulations to create an emission reduction standard that allows
                 for flexibility, using a combination of multi-sector market-based programs, incentive measures,
                 best management practices and regulatory measures.

                  Present measures proposed are complex and affect the entire economy of
                California. Therefore, it’s essential that the proposals have an economic safety valve
                to ensure that programs intended to reduce greenhouse gases do not have unintentional
                consequences that could be detrimental to the economy. The highlights of SB 32 and
                its intended goals include the following key components:

                 ■ Establishes a GHG cap to reduce emissions to 1990 levels by 2020, with enforceable bench-
                   marks beginning in 2012 that includes a multi-sector market-based program to reduce GHG
                   emissions in the most cost-effective manner.

                 ■ Requires mandatory reporting of GHG emissions for the largest sectors (oil and gas extrac-
                   tion, oil refining, electric power, cement manufacturing, and solid waste landfills).
                 ■ Includes a consolidated, accurate emissions inventory in order to determine 1990 GHG emis-
                   sions baseline.
                 ■ Continues the California Climate Action Registry and gives credit to businesses that volun-
                   tarily joined the Registry.
                 ■ Creates an umbrella entity to develop and coordinate the implementation of a state GHG
                   reduction plan to reduce GHG emissions to 1990 levels by 2020.

                 ■ Does not weaken existing environmental or public health requirements.
                 ■ Ensures public review and comment, with specific consideration for minority and low-income
                   communities.
                 ■ Contains an economic safety valve to ensure the state GHG emission reduction plan protects
                   public health and the environment, is technologically feasible, and is not detrimental to the
                   California economy.
                 ■ Allows a one-year review period by the Legislature of the adopted state GHG emission
                   reduction plan.

                Conclusion



                In summary, the main objective of LEED is a combination of energy-saving and envi-
                ronmental protection measures that are intended to minimize the adverse effects of con-
                struction and development. Some of the measures discussed in this chapter represent a
                significant financial cost impact, merits of which must be weighed and analyzed carefully.
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