California first state to cap and trade on January 1

Sacramento – The first state to do so, California's Air Resources Board adopted Cap-and-trade Thursday.

The law will take effect on January 1.

The last major regulation the board considered to meet requirements of AB32, a greenhouse gas reduction law passed by the State Assembly in 2006, the regulations will require a return to 1990 carbon dioxide emissions by the year 2020. Cap and trade is supposed to cover 20% of the goal.

The other 80% is to be adjusted through limiting the amount of carbon in fuel, requiring more energy efficient vehicles, and mandating renewable energy and efficiency requirements.

Ms. Nichols is the chairwoman of the California Air Resources Board