June 28, 2010

Oil companies' bid to suspend California law

California headed for a high-stakes battle over global warming Tuesday, as an oil industry-backed measure to suspend the state's aggressive climate-change law qualified for the November ballot.

The fight will pit the state's powerful environmental organizations and clean-tech businesses against the oil and manufacturing industries. It also arrays many conservative political leaders, including the GOP nominee for governor, Meg Whitman, against Gov. Arnold Schwarzenegger, a fellow Republican who regards the global warming law as a key part of his legacy.


The measure, launched...  by Texas oil giants Valero Energy Inc. and Tesoro Corp., comes as the industry has fallen under intense scrutiny in the wake of the Gulf of Mexico oil spill disaster.

Under California's law, known as AB 32, the state is setting limits on greenhouse gas emissions from automobiles, oil refineries and other industries, and will probably require that a third of the state's electricity come from renewable sources by 2020, up from about 15% today. New rules under the law would encourage sales of more fuel-efficient cars.

Supporters of the law say it has spurred a large market for solar, wind and other clean energy sources.


Schwarzenegger lashed back Tuesday, saying, "This initiative sponsored by greedy Texas oil companies would cripple California's fastest-growing economic sector, reverse our renewable energy policy and decimate our environmental progress for the benefit of these oil companies' profit margins."
He added, "I will not allow this to happen on my watch."
Proponents of the measure spent $3 million, more than two thirds of it contributed by the two Texas companies and other energy interests, to...  to place the measure on the ballot. 

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