See brief excerpt from AP:
Hoping other states will follow suit, California regulators overwhelmingly approved the nation's most extensive system giving owners of power plants, refineries and other major polluters financial incentives to emit fewer greenhouse gases.
The Air Resources Board voted 9-1 Thursday to pass the key piece of California's 2006 climate law — called AB32.
California has already enacted the strictest climate-related regulations in the country involving renewable energy mandates for utilities, tighter fuel-efficiency standards for automobiles and low-carbon fuel standards.
The state's landmark climate law had a Jan. 1, 2011, deadline for devising and enacting the so-called cap-and-trade system.
Here's how it would broadly work:
A company that produces pollution, such as a utility or a refinery, buys a permit from the state
that allows it to send a specified amount of carbon dioxide and other greenhouse gases into the air each year.
Those permits could then be bought and sold by the polluters in a marketplace.
If a company in Fresno is 15 percent under its pollution allowance, it can sell the unused portion to a company in Long Beach that has exceeded its quota. The Fresno company gets to keep the money.
Polluters can even make a profit, if the marketplace sets a price above the initial cost of the permit.
See more... http://news.yahoo.com/s/ap/20101217/ap_on_bi_ge/us_california_greenhouse_gases