Mayor Antonio Villaraigosa and LADWP General Manager  Ronald O. Nichols Applaud Approval of AB 32 Final Regulations by the California Air Resources Board

Mayor Antonio Villaraigosa and Los Angeles Department of Water and Power General Manager Ronald O. Nichols today issued the following statement regarding the California Air Resources Board’s adoption of the Final AB 32 Regulations. “Today, the California Air Resources Board (CARB) has taken the important step of adopting the final regulations to implement the California Global Warming Solutions Act (AB 32) and establishing an economically viable and balanced cap-and-trade program.

We applaud the members of CARB and want to especially thank Chairwoman Mary Nichols for the tremendous effort in moving our state forward on carbon reduction while ensuring a fair and equitable cap-and-trade program. The final regulations adopted today will allow the City of Los Angeles and the LA Department of Water and Power to continue on its aggressive path toward reducing greenhouse gas emissions. 

The final regulations will protect LADWP customers from undue financial hardship, while still ensuring that the landmark environmental goals of AB 32 are met. This has been achieved through the administrative allocation of allowances to electric utilities that also implement the state-mandated 33% renewable portfolio standard (RPS) and energy efficiency measures. Without this allocation, our electric customers would experience an unreasonable double burden of paying for emissions allowances while simultaneously paying to expand renewable energy and energy efficiency.

The City and LADWP continue to strongly support the goal of AB 32 to reduce statewide greenhouse gas emissions to 1990 levels. LADWP has made significant strides toward reducing GHG emissions as well as increasing renewable energy. In 2010, LADWP provided 20% of its energy from renewable sources, achieving this level faster than any other utility in the state, reduced its carbon emissions to 22% below 1990s levels, implemented energy efficiency programs to reduce power usage, and enacted conservation measures that, together with the efforts of our customers, have reduced water use to the lowest level of any major U.S. city.  

With this significant progress, LADWP recently increased its GHG reduction target from 35% to 50% below 1990 levels in its Power Integrated Resource Plan and is committed to meeting the state mandate of 33% renewables by 2020, as well as increasing energy efficiency to reduce energy use to help offset carbon-based generation.

Environmental sustainability and conservation efforts must be based on economically sustainable and affordable rates. The regulations adopted by CARB today will support these ongoing efforts.”