Gas Not Paid At the Pump In California, "AB32"

Picture provided by:  David McNew/Getty Images

For the benefit of the world, California will be implementing and executing a new state climate law known as "AB32" as soon as Jan. 1, 2013.  This new state law will govern how much green house gases can be emitted by businesses by issuing permits; some free, but additional permits will go up for auction if businesses need to cover their emission of green house gases.  The prices of these permits have not been released, but as soon as this law is in effect, businesses will have another expense to cough up if they want their businesses to stay alive.

Some businesses have already put their foot inside by adopting more energy efficient technology into their businesses.  These include using solar panels, energy efficient lights, bigger windows that open, decrease the usage of machinery, and the usage of less water.  The University of California known to have a big power plant to supply power for dorms, labs, and hospitals says that they will need to purchase these permits due to their high output of green house gases.  This means that the state will be able to generate some sort of revenue while limiting green houses gases. 

The uncertainty that will erupt from this law could have businesses leaving the state and relocating to areas where there are less strict law governing carbon emissions.  This could possibly mean that many businesses, if not already, will relocate into countries such as Mexico. 

http://www.npr.org/2012/11/13/165052181/calif-to-begin-rationing-greenhouse-gas-emissions