SB 32, the California Global Warming Solutions Act, which sets the state’s climate goals and policy through 2030, yesterday passed another milestone after passage in the State Assembly.

SB 32 extends greenhouse gas emissions reductions for California from 2020 to 2030. The bill also confirms the California Air Resources Board’s (ARB) authority to be the lead agency for ensuring that at least 40% reductions below 1990 are met by 2030.

After a vote of 42-29, the bill returns to the Senate where it originally passed last summer. Language in SB32, however, states that the provisions will come into effect only if a companion bill, AB 197, also comes into effect.  AB 197 provides additional legislative oversight of ARB and was passed by the Assembly today by a vote of 44-28.

The next step is for the two bills to be reconciled and approved by legislators, which is expected in the coming days. Governor Jerry Brown is expected to sign these measures, should they make it to his desk.

Taken together both bills will provide much needed long-term certainty for the climate change program in California, in general, and the cap-and-trade program, more specifically.

If you have any questions regarding the California carbon trading program, please contact our U.S. Carbon Markets team at: uscarbon@evomarkets.com or +1 415.963.9138 and +1 914.323.0265.