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240 CALIFORNIA SOLAR INITIATIVE PROGRAM

global warming and have adversely impacted the terrestrial ecology and our life style.
In order to mitigate the devastating effects of fossil fuels, the international community
has in the recent past taken steps to minimize the excess use of fossil fuels in electric
energy production.
The state of California Assembly has recently introduced an act known as AB32 that
mandates the entire state industry by year 2020 to reduce their carbon dioxide CO 2
footprint to 1990 levels.

California Assembly Bill 32

The following is a summary of California Assembly Bill AB 32, a complete text of
which can be accessed at www.environmentcalifornia.org/html/AB32-finalbill.pdf. The
legislated act addresses health and safety codes relating to air pollution. Under this act,
also known as the Global Warming Solutions Act of 2006, the law mandates the State
Air Resources Board, the State Energy Resources Conservation and Development
Commission (Energy Commission), and the California Climate Action Registry to
assume responsibilities with regard to the control of emissions of greenhouse gases.
The Secretary for Environmental Protection is also mandated to coordinate emission
reductions of greenhouse gases and climate change activity in state government.
To implement the bill, the state board is required to adopt regulations to require the
reporting and verification of statewide greenhouse gas emissions and to monitor and
enforce compliance with this program, as specified. The bill requires the state board
to adopt a statewide greenhouse gas emissions limit equivalent to statewide green-
house gas emissions levels in 1990 to be achieved by 2020, as specified. The bill
would require the state board to adopt rules and regulations in an open public process
to achieve the maximum technologically feasible and cost-effective greenhouse gas
emission reductions, as specified. It also authorizes the state board to adopt market-
based compliance mechanisms. Additionally the bill requires the state board to moni-
tor compliance with and enforce any rule, regulation, order, emissions limitation,
emissions reduction measure, or market-based compliance mechanism adopted by the
state board, pursuant to specified provisions of existing law. The bill authorizes
the state board to adopt a schedule of fees to be paid by regulated sources of greenhouse
gas emissions, as specified. Because bill AB 32 requires the state board to establish
emissions limits and other requirements, the violation of which would be a crime, this
bill would create a state-mandated local program.
The California constitution requires the state to reimburse local agencies and school
districts for certain costs mandated by the state. Statutory provisions also establish
procedures for making that reimbursement.

IMPACT OF CALIFORNIA ASSEMBLY BILL 32

At present, California produces 50 percent of its electric energy mainly through coal,
natural gas turbines, and nuclear power–generating stations. Hydroelectric and nuclear