Regulators have won praise for speed and thoughtfulness with which they have laid the groundwork for implementation of A.B. 32, the landmark bill that aims to bring California's greenhouse gas emissions down to 1990 levels by 2020. But even within a single state, climate change legislation creates winners and losers, and regional tensions are starting to show.
California's climate plan consists of a slew of new efficiency standards, regulations, and reduction measures -- as well as a cap-and-trade system to place a lid on total emissions. It's the cap-and-trade system that is part of the present pushback.
At issue in particular are the long-term contracts that the Los Angeles Department of Water and Power (DWP) has entered into for coal-based electricity. Although coal has kept L.A.'s electricity some of the cheapest in the state, the utility will have to pay enormous sums for carbon allowances under the new law.
It's always instructive to unpack some of the distortions that surround the politics of climate change legislation. Officials from L.A. seem to be trying out three different angles in their resistance to the bill. The first is that the steep cost of the allowances will divert money away from energy efficiency and renewable energy programs.