California Pact Would Place Cap On Emissions

WSJ reported Leaders of the state legislature and Gov. Arnold Schwarzenegger announced a deal yesterday under which California will mandate a reduction in the state's emissions of gases contributing to global warming to 1990 levels by 2020. The cut would target the state's biggest industrial emitters of greenhouse gases, such as power plants, oil refineries and cement factories.

This should be interesting. It will drive up costs, and hurt the California economy, and the interesting thing will be how much business will move to adjacent states before California says oops, we made a big mistake. They already are in danger of rolling blackouts because of the power plants that they did not allow to get built.

California already has passed a law requiring greenhouse-gas-emission cuts from cars and light trucks sold in the state. The cut's effect on individual industries, companies and consumers is unclear, because the state has yet to work out details of how it will implement the broad emissions mandate. But backers of the measure, including Gov. Schwarzenegger, said it won't unduly harm business in the state.