California greenlights cap-and-trade emission rules

December 17, 2010 - California's regulators Thursday voted in favor of the first cap-and-trade rules in the United States to tame greenhouse gas emissions.

The rules, adopted by the Air Resources Board (ARB), are expected to put a cap on emissions of greenhouse gases, such as carbon dioxide by allowing businesses to trade permits to pollute.

The move was meant to "fill the vacuum created by the failure of Congress to pass any kind of climate or energy legislation for many years now," said Mary Nichols, ARB's chairwoman.

The cap-and-trade idea aims to provide financial incentives to businesses to be greener as those which are under its pollution allowance can make a profit by trading their unused portion.

The ARB, the state's climate change regulator, voted 9-1 to pass the key piece of California's Global Warming Solutions (OOTC:GWSO) Act, also known as AB 32, after listening to more than 170 witnesses.

"It's an exciting program, and it's a very big step forward," Nichols told a press conference after the voting. {continued}