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California compliance with the EPA's new emissions rules

Earlier this month, the Obama administration announced that it is instituting sweeping new regulations which will soon govern various greenhouse gas emissions nationwide. Those entities which do not comply with these new regulations will be targeted for severe penalties in connection with their environmental violations. Thankfully, California companies will almost certainly have an easier time meeting these new regulatory guidelines than many companies located elsewhere in the United States because of reforms already instituted in the Golden State.

Broadly, the Environmental Protection Agency is insisting on a 30 percent reduction in greenhouse gas emission rates by power plants and other related businesses by 2030 as compared to emissions levels reached nationally in 2005. But because California has led the nation in renewable energy reform and reduction in fossil fuel use, California entities affected by the new EPA rules should have an easier time complying than many others will.

The director of the Precourt Energy Efficiency Center at Stanford University recently confirmed that, “California is ahead of the curve. That's clear. The gnashing of the teeth will come mostly in other states." In addition, the reforms that many other states and businesses will need to implement may result in direct profits to many Silicon Valley companies which produce clean technology, solar paneling and energy efficiency software.

Although the new EPA guidelines may create some temporary headaches for Californians, it certainly seems that California is not only more prepared to comply than other states are, the new federal reforms may result in numerous economic benefits for several California industries.

Source: San Jose Mercury News, “Historic EPA global warming rules: How will they affect California?” Paul Rogers, June 2, 2014

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