Index
California Global Warming Solutions Act (AB 32)
Summary
AB 32 was a landmark 2006 law that mandated California to drastically reduce its greenhouse gas emissions to 1990 levels by the year 2020 (a goal it met early), creating the state's massive cap-and-trade program.
Rights & Rules
- 01.The state government is legally required to regulate and limit the amount of greenhouse gases (like carbon dioxide) emitted by large industrial facilities, power plants, and fuel distributors.
- 02.The law created a 'cap-and-trade' market where companies must buy allowances for the right to pollute.
- 03.In 2016, the law was expanded (SB 32) to require the state to reduce emissions to 40% BELOW 1990 levels by the year 2030.
Penalties
- 01.Companies that fail to report their emissions or fail to buy enough allowances to cover their pollution face millions of dollars in fines from the California Air Resources Board (CARB).
Verified Citations
California Health and Safety Code Section 38500
Source"The state board shall... determine what the statewide greenhouse gas emissions level was in 1990, and approve in a public hearing, a statewide greenhouse gas emissions limit that is equivalent to that level, to be achieved by 2020."