On April 29, 2015, California Governor Jerry Brown issued an Executive Order setting stricter greenhouse gas emissions limits for the state. The Order directs state agencies with appropriate jurisdiction to implement measures to reduce GHG emissions to 40 percent of 1990 levels by 2030, in order to achieve the ultimate requirement (imposed by former Governor Schwarzenegger by Executive Order) of reducing GHG emissions by 80 percent from 1990 levels by 2050. The California Air Resources Board ("CARB") has not yet announced what regulations it will adopt or amend to achieve the required additional reductions. Governor Brown's January 2015 Inaugural Address provides some clues. In that Address, the Governor made three proposals for reducing GHG emissions by 2030: increase to 50 percent California's electricity derived from renewable sources, reduce the state's petroleum use in cars and trucks by up to 50 percent, and double the efficiency of existing buildings and make heating fuels cleaner. He also proposed reducing emissions of short-lived climate pollutants and managing farms, rangelands, forests, and wetlands to increase their storage of carbon. These proposals "align" with the new 40 percent reduction requirement, according to the Air Resources Board.

CARB plans to update its Climate Change Scoping Plan by 2016, which will provide a framework for achieving the 40 percent reduction target. We would expect CARB to promulgate new regulations to comply with the governor's Executive Order as well. Senate Bill 32 is pending in the California Legislature. This bill, if adopted by the Legislature and signed by Governor Brown, would codify the required 80 percent reduction by 2050 into California law and would authorize CARB to set interim limits for 2030 and 2040.

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