http://www.cnn.com/2006/POLITICS/08/31/glo...g.ap/index.html

California takes on global warming

SACRAMENTO, California (AP) -- California will impose broad caps on its greenhouse-gas emissions under a landmark plan that marks a clear break with the federal government and which backers hope will become a national model.

Republican Gov. Arnold Schwarzenegger, who helped assemble the plan, called Wednesday's agreement "an example for other states and nations to follow as the fight against climate change continues."

The plan came after weeks of difficult negotiations and was sent to the state Senate, which approved it late Wednesday with a 23-14 vote. If approved as expected by the Democrat-controlled Assembly, the bill would then go to the governor's desk.

"My main objective was getting a bill that the environmental community can champion around the country and say, 'California did this, and you should be too.' And we did that," said Assembly Speaker Fabian Nunez, a Democrat.

25 percent cut by 2020
The bill requires the state's major industries -- such as utility plants, oil and gas refineries, and cement kilns -- to reduce their emissions carbon dioxide and other greenhouse gases by an estimated 25 percent by 2020.

One of the key mechanisms designed to drive the reductions is a market program that will allow businesses to buy, sell and trade emission credits with other companies.

"Today it feels as if the whole world is watching, and I hope they are," said Ann Notthoff of the Natural Resources Defense Council, one of the environmental groups involved in the negotiations.

The agreement was announced simultaneously by the governor's office and Democratic leaders in the Senate and Assembly. It gives the governor a key environmental victory as he seeks re-election this fall.

The bill states that the California Air Resources Board -- an 11-member panel appointed by the governor -- must identify "market-based compliance mechanisms" that might be used as part of its plan to reach the cap.

Environmentalists praise bill
The cap was praised by environmentalists as a step toward fighting global climate change. It was criticized by some business leaders, who say it will increase their costs and force them to scale back their California operations.

Republicans blasted the bill, saying the bill would have little effect and make California an expensive place to do business. "This bill is the road to economic ruin for California," Sen. Dennis Hollingsworth said.

The nation's most populous state is the world's 12th largest emitter of greenhouse gases and could suffer dire consequences if global temperatures increase only a few degrees. (The process of global warming)

In the absence of federal action, much of the effort to combat climate change has been focused in the states. More than 100 climate-related bills have been held up in Congress, including one that calls for a national cap on greenhouse gas emissions.

State a leader in cutting auto emissions
California has led the country in reducing greenhouse gas emissions through its renewable energy policies and a 2004 law reducing tailpipe emissions from vehicles.

Ten other states are poised to enact California's auto rule, while more than 20 states have required utilities to eventually generate some power from renewable sources such as solar, wind and geothermal.

The bill includes a so-called "safety valve" sought by Schwarzenegger that would allow California's governor to delay the emission-cap mandate if the state is hit with a natural disaster, terrorist attack or some other emergency.

In addition to the emissions cap, California lawmakers voted to approve related global warming legislation. That bill would prohibit the state from entering long-term contracts with any out-of-state utility that fails to reduce its carbon dioxide emissions. The bill passed by a 43-30 vote in the Assembly. It goes to the Senate for final approval.

http://abcnews.go.com/Politics/wireStory?id=2380553&page=1

Schwarzenegger Makes Deals With the Dems

Schwarzenegger, Up for Re-Election This Fall, Makes Common Cause With California's Democrats

By LAURA KURTZMAN
The Associated Press

SACRAMENTO, Calif. - Gov. Arnold Schwarzenegger's plan to cap California's greenhouse gas emissions is just the latest in a string of recent deals with the Democrats that could help him win back the moderate voters so vital to his re-election bid this fall.

The deal announced Wednesday between the Republican governor and leaders of the Democratic-controlled Legislature would make California the first state to limit carbon dioxide and other heat-trapping gases from factories and other industrial sites.

Earlier in the week, the two sides agreed to raise the state's minimum wage and create a prescription drug discount program.

Democrats have been playing ball with Schwarzenegger since they passed a $37.3 billion bond package in May that the governor had sought. The money would go toward transportation, levee repairs, school buildings and affordable housing.

The deals have opened up Schwarzenegger to charges that he is jettisoning his Republican principles as he seeks re-election. But they are political treasure for Schwarzenegger because they appeal to the moderates who dominate the state.

Schwarzenegger alienated them last year with his polarizing special election in which he clashed with the state's powerful teachers union.

At a news conference Wednesday to announce the global warming deal, Assembly Speaker Fabian Nunez, a Democrat from Los Angeles, pronounced it "a huge victory for the governor."

Democrats are eagerly working with the governor, despite the potential political damage to their own candidate for governor, state Treasurer Phil Angelides.

"For Democrats, if you're here to do public policy and the governor is offering a deal, you have to take a look at it," said Assemblyman Dario Frommer, a Los Angeles Democrat.

The Democrats' willingness to strike deals that hurt Angelides could mean they do not believe he can win in November, said Democratic strategist Chris Lehane, who is not affiliated with the Angelides campaign.

"Their interest and desire to pursue these subjects is an indication of how strong a campaign they think Angelides is running," Lehane said.

And they are more than willing to take advantage of the governor's political need to compromise. "Arnold has been willing to literally give everyone in Sacramento their particular Christmas gift early this year," Lehane said.

In pursuing some of the legislation that could endear him to moderates, Schwarzenegger clearly risks alienating conservatives and business leaders.

Business leaders warned that the greenhouse gas measure could drive away business and kill jobs.

As for the minimum wage deal, Schwarzenegger opposed any increase when he was elected. But this time he agreed to raise it by $1.25 an hour.

On the prescription drug deal, the governor's election-year turnaround was even more dramatic. He agreed to impose sanctions on drug companies that do not offer discounts to people who otherwise have to pay full retail price, a position he flatly rejected two years ago.

Schwarzenegger's compromises leave him open to charges he is flip-flopping to win support beyond his Republican base, which makes up just 38 percent of the electorate.

"He's absolutely willing to prostitute himself on anything," said Angelides adviser Bill Carrick. "How humiliating it must be to be a Republican in this state."

Schwarzenegger press secretary Margita Thompson said Schwarzenegger was influenced only by the improved economy.

"The governor has been consistent in fighting to bring affordability of health care to consumers," she said. "And now that he's gotten the budget on a better footing, we can sustain an increase in the minimum wage, ensuring that workers share in the economic expansion."

Mark Baldassare a pollster for the nonpartisan Public Policy Institute of California, said Democrats would lose credibility if they refused to work with the governor on issues that are important to their constituencies.

"Global warming, raising the minimum wage these are pretty popular things in California right now," Baldassare said.

But, he said, handing the governor victories on key Democratic issues can't help Angelides.

"It takes away one of the most potent messages for a Democratic candidate, which is Republicans don't care about working people and the environment," he said.

Now I have a question. Do you think Schwarzenegger really gives a damn or is he just looking for votes for himself in an election year?