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WORLD> America
Calif. adopts tough greenhouse gas restrictions
(Agencies)
Updated: 2008-12-12 09:01

California drivers will see more expensive cars on showroom floors and should expect to pay higher power bills as utilities increase their use of renewable energy.

Republicans, small businesses and major industries that will be forced to transform operations beginning in 2012 say jobs will be lost, companies might leave the state and energy prices will skyrocket. Many demanded the board perform more economic analysis before committing to policies they warned could worsen the economy.

"The deepening recession has affected businesses throughout the state," Amisha Patel, a policy advocate at the California Chamber of Commerce, told the board. "The reality of climate regulation is there will be costs."

The air board's background work has been criticized in reviews by California's nonpartisan legislative analyst and independent scientists, with both groups saying the costs to the state could be greater than projected.

Republican state lawmaker Roger Niello of Fair Oaks has asked the board to postpone its vote and complete a more thorough economic review.

An air board analysis published in September projected California's economy would grow at a faster rate by cutting emissions. It also estimated 100,000 more jobs would be created and the average California household would save $400 a year by driving more fuel-efficient vehicles and living in more energy-efficient homes.

Nichols said her board had done a thorough job of assessing the plan but vowed Thursday the board would conduct more studies as the regulations are developed over the next few years.

Most of the reductions in California's emissions will come from more detailed regulations that will be written over the next few years, including rules governing a cap-and-trade program that launches in 2012 to help the largest polluters achieve emission cuts.

But allowing businesses to buy their way out of the problem is another contentious part of the plan. Representatives of California's poor communities say the polluting power plants, refineries and factories in their neighborhoods could write a check rather than cut emissions.

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