In a revolutionary and bold move to curb the greenhouse gas emissions the state of California is preparing to charge businesses for their carbon footprints. The move was first introduced by the Bay Area Air Quality Management District which decided to levy a fee for greenhouse gas emissions. The charges would be in the tune of 4.5 cents per metric ton of greenhouse gas emissions. The efficacy of the program further encouraged the State to introduce stricter norms to control the amount of greenhouse gas emissions.  Read more about Guide to CO2 Capture, Sequestration, and Storage

Keeping in line with this initiative the California Air Resource Board (CARB) is pushing a new ruling which will impose a fee of 12 cents per metric ton of greenhouse gas emissions on businesses in the area. If approved, the rule will be implemented starting late 2010 or early 2011. The CARB further added that once the greenhouse gas emissions have been successfully controlled with this move the fine will be reduced to 9 cents in three years. This will provide a financial impetus for businesses that are among the largest polluters in California because not only will they have to pay the local fees but also the state fees which will amount to 16.5 cents per metric ton.

The revenue collected through the fines for greenhouse gas emissions will be used to further environmental initiatives like monitoring, measuring and studying greenhouse gas emissions and their effect on the climate. The move comes on the heels of the state’s goals of cutting 20% of their greenhouse gas emission by 2020, a very ambitious plan. The levying of the fine is considered to be the first step towards controlling and reducing greenhouse gas emissions. This is the first step taken by the state to create a carbon tax or cap and trade system.

While environmentalist are hailing the attempts and agree with the state regulatory boards that monitoring indeed plays a pivotal and crucial role in the control of greenhouse gas emissions, the big emitters are less than enthusiastic about the move and have expressed their disdain by saying that there is a risk of creating an unfair bureaucracy of regulations and fines.

The industries which will be the most affected by the move include the major refineries in the area, cement factories and power plants but even other businesses like auto shops, restaurants and coffee roasters will also be fined a nominal amount of $1 or $2 per year. The Bay area program has so far managed to collect $1.7 million. However, the move has raised quite a few hackles at the Western State Petroleum Association which considers the move too punitive.

The district already has rules in place that regulates volatile organic compounds that are associated with smog formation and nitrous oxide from diesel generators, construction equipments and wood burning fireplaces. However, the majority of the greenhouse gas emissions can be attributed to motor vehicles in the area. However the district wants to expand its purview to include greenhouse gas emissions from stationary sources as well.