California Sets the Stage for Reducing Greenhouse Gas Emissions

Governor Arnold Schwarzenegger of California

Marking the beginning of his second term as Governor of California, Arnold Schwarzenegger used his State of the State speech on Tuesday, January 9, to call for reduced greenhouse gas emissions from motor vehicle fuels to help curb global warming. The plan would direct regulators to require the state’s petroleum refiners and gasoline sellers to cut by 10 percent the emissions of heat-trapping gases associated with the production and use of their products.

"I propose that California be the first in the world to develop a low-carbon fuel standard that leads us away from fossil fuels," Schwarzenegger said in his address. "Our cars have been running on dirty fuel for too long," he said. "California has the muscle to bring about such change. I say use it."

The plan gives the gasoline and diesel fuel producers discretion in how they reach the target. They can either reformulate their fuel or increase use of alternative fuels such as ethanol, natural gas, and hydrogen.

In the absence of action at the federal level, states and some localities have begun to take the lead. Schwarzenegger’s proposal represents one of the first examples of a state or a national government regulating fuel as part of a strategy to reduce emissions that contribute to climate change as well as dependence on foreign oil. Due to the sheer size of California’s economy (ranking between 6th and 10th in the world, depending on the source) the Governor’s proposal could become a model for other states to follow.