California's cap and trade regulations

The Associated Press:

Sacramento, California — California regulators on Thursday approved the first system in the nation to give polluting companies such as utilities and refineries financial incentives to emit fewer greenhouse gases.

The Air Resources Board voted 9-1 to pass the key piece of California's 2006 climate law – called AB32 – with the hope that other states will follow the lead of the world's eighth largest economy. State officials also are discussing plans to link the new system with similar ones under way or being planned in Canada, Europe and Asia.

California is launching into a "historic adventure," said Mary Nichols, chairwoman of the state's air quality board.

"We're inventing this," she said. "There is still going to be quite a bit of action needed before it becomes operational."

California is trying to "fill the vacuum created by the failure of Congress to pass any kind of climate or energy legislation for many years now," said Nichols.

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