California Adopts Cap-and-Trade

California is still leading the way on environmental politics. On Thursday, it became the first state to adopt a large-scale cap-and-trade program to limit greenhouse gas emissions, beginning in 2012. And, the state believes that the measure will not put a strain on its already dire finances. "Billions of dollars are being poured into California in clean technology venture capital investment," Gov. Arnold Schwarzenegger said. "Of course, we have to be sensitive because it's an economic downturn, and this Air Resources Board knows they have to be sensitive. But we have to reach our goals by 2020." Companies with facilities that emit carbon dioxide and can’t reduce their emissions enough will be required to buy allowances from the state, or other companies who have allowances to spare. California’s goal is to roll back emissions to 1990 levels by 2020.