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Green Light for AB32, But,

Voters in California voiced strong support for the state’s climate bill in yesterday’s gubernatorial elections with 61.3% voting against proposition 23 (prop 23). Prop 23 would have suspended the bill until California's unemployment rate dropped to 5.5 percent or less for four consecutive quarters. The roll out of the climate bill was also bolstered by the election of democratic candidate Jerry Brown as the golden state’s new governor, who expressed his support for AB 32’s current framework throughout his hard-fought campaign.

The defeat of prop 23 is being hailed by some as a win for “big green” over “big oil”. However others may feel that it is still too early to determine the fate of the climate bill. Proposition 26 also passed with a 52.7% majority in yesterday’s vote, and has the potential to impact how AB32 gets rolled out.

Prop 26 requires that certain state fees be reclassified as taxes and as such be approved by a two-thirds vote of Legislature rather than the simple majority previously required. This has the potential to impact a wide range of California’s environmental initiatives (see previous blog post) including revenue generation through the auctioning of emission allowances that forms the cornerstone of AB32’s cap-and-trade program. And while 55% of voters also voted in favour of proposition 25, which reduces the quorum required to pass the state budget and spending bills related to the budget from a two thirds majority to a simple majority, prop 25 retains the two thirds vote requirement for taxes.

The interplay between prop 25 and 26 and how both are ultimately implemented is likely to feature in the state’s legal arenas for some time to come. In the meantime, opportunities from a green economy have clearly resonated with voters. They have provided Jerry Brown with a clear mandate to forge ahead on AB32, whatever future legislative challenges may come its way.

By Eva Berton, .(JavaScript must be enabled to view this email address).