Today is the big day. The California Air Resources Board released the draft proposal for California's cap-and-trade program to allocate carbon emissions permits to large polluting companies. The program is the flagship proposal of the legislation and the principle legislative success Governor Schwarzenegger is clutching onto for his "environmental" legacy. It is also the remnant of former Assembly Speaker Fabian Nunez's legacy, who pushed the legislation through the legislture in 2006 with then Assembly member and now Senator Fran Pavley .
At stake is the environmental and economic future of the state. A recent report commissioned by the Natural Resource Defense Council on the American Clean Energy and Security Act which passed out of the House of Representatives earlier this year, identified $300 billion in investment that could be redirected to clean jobs. If California's emissions program is aggressive enough to stimulate the innovation and economic development of California's clean energy sector, California could reap the benefits and jobs that come from the federal effort. Even if the feds don't pass the legislation, California could see the economic boon from its own program.
The danger that remains to be seen is if the business community will be successful in securing free pollution permits under the program. The business lobby has been pushing hard and this program is the only bill the Governor has signed that the CA Chamber of Commerce has actively opposed. Known for broken promises and half hearted policy goals, this program could be the last hope for a Governor in search of a box office legacy.
