Deal is reached to cut CO₂ emissions in California

Under a deal reached on Aug. 30 between Gov. Arnold Schwarzenegger (R) and Democrats in the state legislature, California will probably become the first U.S. state to impose strict limits on greenhouse gas emissions. The bill to curb emissions was passed in the Senate on Aug. 30 and is expected to pass in the Assembly on Aug. 31. It requires automobile makers and major industries-power plants, oil and gas refineries, and cement kilns-to reduce CO₂ emissions to 1990 levels by 2020. Businesses could reach this reduction goal partly by buying, selling, and trading emissions credits with other companies. If California achieves these cuts, it will have a significant impact because among all nations and states, California is the 12th largest CO₂ emitter in the world. "I am happy to announce we have reached a historic agreement on legislation to combat global warming," Schwarzenegger said in a statement. Many of California's Republican legislators oppose the bill, saying it will put the state's businesses at a competitive disadvantage, but they are not expected to prevail.