Update on AB 32: California Market Advisory Committee Releases Final Report

On June 29, 2007, California’s Market Advisory Committee (MAC) released its final report and recommendations for the design of a greenhouse gas cap and trade system in the state. The report addresses the major questions and challenges involved in program design. The California Air Resources Board will ultimately decide whether and how to implement a market-based system as part of the state’s efforts to reduce greenhouse gases under AB 32, the Global Warming Solutions Act. The 14-member Committee was formed in December 2006 to support the state with implementation of AB 32. Among its members is Judi Greenwald, Director of Innovative Solutions for the Pew Center on Global Climate Change. Josh Bushinsky, Western Policy Coordinator for the Pew Center, serves on the staff to the committee.

Press Release [1] (pdf)
Read the Market Advisory Committee Report [2] (pdf)

Background on the Global Warming Solutions Act (AB 32)

On September 27, 2006, Governor Schwarzenegger signed AB 32, the Global Warming Solutions Act. The Act caps California’s greenhouse gas emissions at 1990 levels by 2020. This legislation represents the first enforceable state-wide program in the U.S. to cap all GHG emissions from major industries that includes penalties for non-compliance. It requires the State Air Resources Board to establish a program for statewide greenhouse gas emissions reporting and to monitor and enforce compliance with this program. The Act authorizes the state board to adopt market-based compliance mechanisms including cap-and-trade, and allows a one-year extension of the targets under extraordinary circumstances.

Statement by Eileen Claussen, President, Pew Center on Global Climate Change:

"California has achieved the right balance, the goals they have established are reasonable enough to meet, and ambitious enough to spur innovation. This is a big deal and a beautiful example of leadership and bi-partisanship at work."

Governor Schwarzenegger's Press Release [3]

Read the Legislation [4]

Statement from PG&E on AB 32 [5]

Find out what's being done in other states [6] to combat climate change