California, NY governors agree to link GHG reduction efforts

California, NY governors agree to link GHG reduction efforts

Washington (Platts)--16Oct2006

California Governor Arnold Schwarzenegger and New York Governor George
Pataki have agreed to explore ways to link California's future greenhouse gas
emission credit market with the Northeastern and Mid-Atlantic states' Regional
Greenhouse Gas Initiative (RGGI) upcoming market, Schwarzenegger's office said
Monday.

"I recently signed legislation giving California the most ambitious
greenhouse gas reduction goal in the country. But no one state can do it
alone. It truly is a global problem where states, regions and nations must
work together to find a solution," Schwarzenegger said. "So I am happy to
announce today that as we implement our new law we will form a greenhouse gas
trading partnership with RGGI, the multi-state greenhouse gas cooperative
spearheaded by Governor Pataki."

Schwarzenegger also said he issued an executive order directing
California Secretary for Environmental Protection Linda Adams to coordinate
state climate change policy.

The executive order, which will formally be signed on Tuesday, also
instructs the secretary to work with the California Air Resources Board to
seek to develop a framework that would allow California to work with RGGI.
Such an arrangement would help build a large, robust carbon trading market
that would dramatically reduce emissions, the governor's office said.

RGGI is a cooperative effort by Northeast and Mid-Atlantic states to
discuss the design of a regional cap-and-trade program initially covering
carbon dioxide emissions from power plants in the region. In the future, RGGI
may be extended to include other sources of greenhouse gas emissions, and
greenhouse gases other than CO2.

Currently, Connecticut, Delaware, Maine, New Hampshire, New Jersey, New
York and Vermont are participating in the RGGI effort. Legislation was signed
in April 2006 that requires Maryland to become a full participant in the
process by June 30, 2007. In addition, the District of Columbia,
Massachusetts, Pennsylvania, Rhode Island, the Eastern Canadian Provinces and
New Brunswick are observers in the process.

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http://www.platts.com/Coal/Resources/News%20Features/kyoto/

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