As many predicted, November 2nd election results saw Republicans take over control of the US House of Representatives and weaken Democratic presence in the Senate. The Gold Old Party’s (GOP’s) strong opposition to cap-and-trade means that comprehensive climate legislation in the US is off the table, at least in the near term. With federal cap-and-trade effectively dead, Republican focus is now turning to EPA regulation, with a number of Republican Congressmen advocating to reduce or to revert the EPA’s authority to regulate GHGs. Under the EPA’s tailoring rule, a phase-in of GHG emissions control requirements for stationary sources is slated to come into effect on January 2, 2011.
A different story is playing out in California. Voters there voiced strong support for the state’s climate bill, AB32, in November 2nd’s gubernatorial elections with 61.3% voting against proposition 23 (prop 23), a measure that 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 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. Prop 26 requires that certain state fees be reclassified as taxes for legislation passed after Jan. 1, 2010, 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, including, some say, revenue generation from the auctioning of emission allowances (see previous blog post). According to CARB Chairman Mary Nichols, prop 26 “does not impair AB32, signed into law in 2006”.
How prop 26 ultimately impacts AB32 may 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)
