Gov. Schwarzenegger Celebrates Fourth Anniversary of AB 32

Press Release

Governor Arnold Schwarzenegger today issued the following statement in celebration of the fourth anniversary of AB 32, the world's first comprehensive law to reduce greenhouse gas (GHG) emissions and boost economic growth:

"California's bold and innovative policies have made us a world leader in renewable energy, green jobs and environmental protection. Because of our forward-thinking policies, the Golden State is home to the world's largest wind project, the world's largest solar power plant and hundreds of other renewable energy projects that are working to do business in California. We are also home to more clean businesses than any other state and have seen billions in clean technology investment since AB 32 was signed four years ago. This is great news for Californians because it means jobs, jobs, jobs as we work towards a cleaner, healthier environment. And we're not slowing down; we're going to continue moving forward with groundbreaking policies that grow our economy, reduce our country's dangerous dependence on oil and coal and ensure the California we love will be the California we hand over to the next generation."

Passed in 2006, the landmark law mandates a reduction in California's GHG emissions to 1990 levels by 2020 and calls for an 80 percent reduction from 1990 levels by 2050. Among other policies to reduce harmful GHG emissions and grow California's green economy, the state has approved an AB 32 Scoping Plan as a blueprint for reducing GHG emissions, adopted measures including the Low Carbon Fuel Standard and the Pavley Vehicle Standards to address 40 percent of its overall goals and is working on more than 20 additional measures, such as a cap-and-trade system.

Being a leader in environmental and clean energy standards, such as AB 32, has made California a leader in clean energy investment and green jobs. According to Next 10's 2009 California Green Innovation Index, clean technology investment in California hit an all-time high of $3.3 billion in 2008, increasing nearly $1.5 billion over 2007 and over seven times total clean tech investment in 2005. Additionally, California is the national leader in the number of clean businesses, with nearly 13,000, and has led all states in patent registrations for green technologies, with 1,400 over the last decade. Green jobs have also skyrocketed, growing 10 times faster in California than in other areas, and this growth is expected to continue. According to the Next 10 Index, green job growth has grown by 10 percent, while jobs statewide have increased by only 1 percent.

California is also a leader in renewable energy development. The state currently has over 200 renewable energy projects interested in building and running facilities in the Golden State. The California Energy Commission (CEC) has recently approved four large-scale solar projects totalling nearly 2,000 megawatt (MW) in clean, renewable energy that will likely start construction in California by the end of this year. This includes the world's largest solar energy project that is expected to reach 1,000 MW. The CEC is also expected to vote on two more large-scale projects this week adding up to 1,000 MW. These projects are part of a group of nine solar thermal projects scheduled to go before the CEC for decisions by the end of the year in order to qualify for federal stimulus dollars. If all nine projects are approved, more than 4,300 MW of solar power will be added to our grid while providing more than 8,000 construction jobs and more than 1,000 operational jobs.

Additionally, the world's largest wind energy project, the Alta Wind Energy Center, just started construction this last July in Tehachapi. According to Terra-Gen Power, the Alta Wind Energy Center will increase wind industry jobs in California by 20 percent, creating more than 1,500 domestic manufacturing, construction and operation and maintenance jobs, and contributing more than $600 million to the local economy in Kern County. The Center will also increase the installed wind power capacity in California by 30 percent. Generating 1,550 MW of clean, renewable energy, it will reduce carbon dioxide emissions by more than 52 million metric tons, the equivalent to taking 446,000 cars off the road, and result in $1.2 billion direct local economic benefits over the life of the project.

Governor Schwarzenegger has a strong and proven commitment to protecting the environment, growing our economy, creating jobs and influencing national policies. In addition to signing AB 32, the Governor has championed the following major actions to create jobs and work towards a clean energy future:

* Renewable Energy Portfolio Standard (RPS): In 2009, the Governor signed an Executive Order directing the California Air Resources Board (ARB) to adopt regulations increasing the state's RPS to 33 percent by 2020. The ARB adopted regulations last week that place the highest priority on renewable resources that will provide the greatest environmental benefits that can be developed quickly and support reliable, efficient and cost-effective electricity system operations including resources and facilities located in California and throughout the Western Interconnection.
* Increased Collaboration with Federal Government and State Agencies to Speed Up Renewable Energy Facility Development: In October of 2009, the Governor and Secretary of Interior Ken Salazar signed a historic MOU so that the state and federal government could work together to ensure timely permitting of renewable energy projects. Earlier this year, the Governor signed into law a new program to make it easier to conserve land for endangered species and for developers to build renewable energy projects in California. The program, created by SB X8 34, by Senator Alex Padilla (D-Pacoima), will help further streamline and expedite the permitting and siting process for large-scale renewable energy projects that will provide jobs and greater energy independence and attract investment.
* Low Carbon Fuel Standard (LCFS): In 2007, the Governor established the world's first LCFS. California's LCFS requires fuel providers to reduce the carbon intensity of transportation fuels sold in the state, dramatically expanding the market for alternative fuels. To start, the LCFS will reduce carbon content in all passenger vehicle fuels sold in California by at least 10 percent by 2020 and more thereafter.
* Million Solar Roofs Initiative: The Governor's $2.9 billion incentive plan for home and building owners who install solar electric systems, now known as the California Solar Initiative, will lead to 1 million solar roofs in California by the year 2018, provide 3,000 megawatts of clean energy and reduce greenhouse gas emissions by 3 million tons.
* Green Tech Sales Tax Exemption: Governor Schwarzenegger championed and signed SB 71 by Senator Alex Padilla (D-Pacoima) earlier this year exempting all clean technology manufacturing equipment from sales tax, allowing California to maintain a competitive edge by expanding the range of projects. This targeted sales tax exemption does not cost the state tax dollars and increases revenue by expanding the number of clean technology manufacturing companies with sites in California.

California's landmark green policies have also influenced national and international action and spurred environmental commitments from other subnational governments:

* Last September, the Obama Administration announced the U.S. Environmental Protection Agency will adopt a vehicle emissions standard modeled after California's first-in-the-nation standard and the International Code Council announced the state's newly adopted Green Building Standards Code will serve as a foundation for commercial buildings worldwide. Furthermore, California participated in the launch of China's first GHG emissions registry earlier this year.
* Governor Schwarzenegger joined other state and provincial leaders in 2007 to launch the Western Climate Initiative (WCI) in February 2007. WCI started with the states of Arizona, California, New Mexico, Oregon and Washington to develop regional strategies to address climate change. The initiative expanded to include the states of Montana and Utah and the Canadian provinces of British Columbia, Manitoba, Ontario and Quebec. With a goal to reduce GHG emissions by 15 percent below 2005 levels by 2020, the WCI program will be the most comprehensive carbon-reduction strategy adopted anywhere in the world. Together, the seven states and four provinces that make up the WCI represent over 20 percent of the U.S. economy and 70 percent of the Canadian economy.
* At the Copenhagen Climate Change Conference last December, Governor Schwarzenegger joined other subnational leaders from Canada, Nigeria, France and Algeria in announcing an agreement to advance the concept of a new regional coalition to fast track green projects and grow the economies of both developed and developing subnational governments. The goal is to push their respective national governments into more rapid actions and stronger commitments to fight climate change. The founding members will develop the coalition's principles, formulate a shared vision of global security and prosperity and recruit other subnational members for an official launch of the Club of 20 Regions (R20) later this year. The R20 coalition is an extension of the Global Climate Solutions Declaration signed at Governor Schwarzenegger's Governors' Global Climate Summit 2 last October.

Governor Schwarzenegger has worked to bring world leaders together at all levels of government to partner on ways to help reduce greenhouse gas emissions, create a healthier environment and build green economies. The Governor and United Nations officials welcomed more than 1,200 attendees from more than 70 states, provinces and countries to the Governors' Global Climate Summit 2 in Los Angeles last fall. As the largest gathering of regional leaders focused on climate solutions, the Summit helped to develop cooperative partnerships and promote collaborative actions needed to reduce greenhouse gas emissions, build green economies and fight global climate change. The Governor will also host the Governors' Global Climate Summit 3 at the world renowned Mondavi Center at the University of California, Davis on November 15 and 16. The third annual summit will bring together leaders from around the world to collaborate on environmental protection and will further the global fight against climate change with collaborative actions to help reduce emissions and build green economies.

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