Oil firms try to kill Schwarzenegger billDecember 2010
Oil companies are attempting to scupper a California global warming law that would take effect in 2012.
California’s Global Warming Solutions legislation, a bill from the Democrats but seen as a landmark achievement of the Republican governor Arnold Schwarzenegger, would introduce rules requiring cuts in greenhouse gas emissions to 1990 levels over the next decade.
The bill is under threat from Proposition 23, a campaign supported by a number of out-of-state oil companies, which demands that the law be postponed until California’s unemployment rate is reduced from 12 to 5.5 per cent and stays there for a year.
US oil groups have contributed funds to the campaign. So far the Texas-based Valero and Tesoro corporations have stumped up $4million (£2.5m, €3m) and $1.5m respectively. Others have donated smaller amounts. California’s utility companies, however, have not supported Proposition 23.
Flint Hills Resources, another oil company backing the campaign against Schwarzenegger’s bill, also known as AB32, said the company ‘is concerned about the bad precedent that AB32 sets, that would potentially result in regulation by other states or the federal government’.
The legislation will impose limits on emissions generated by industry, and is expected to call for a third of energy to come from renewable resources by 2020.
Schwarzenegger has accused Proposition 23 companies of ‘self-serving greed’. California is one of the world’s most polluting areas based on per capita consumption.
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