The California Air Resources Board just adopted the nation's first state sponsored cap-and-trade program.  The program contains a set of air pollution controls to address climate change issues and help reduce greenhouse gas emissions.  Much of the cap-and-trade program is geared around Assembly Bill 32, California's climate change legislation which mandates a reduction in carbon emission levels to those of 1990 by the year 2020.

The cap-and-trade program shows that the state can properly regulate greenhouse gas emissions without jeopardizing its industrial economy.  And at the same time foster a new green economy.  Not only does such legislation help California, but the ramifications will be felt across the country.  California being a trend setter, will obviously influence the positions of other states in developing their own programs.  And hopefully put pressure on the federal government to act.

The California Air Resources Board will operate the state;s cap-and-trade market. By 2016, over $10 billion in carbon credits are expected to be traded in the California market, making it the third largest market in the word for such trading.

Though it is expected that some jobs will leave the state due to these laws, new jobs are expected to take their place mainly within the renewable and energy efficiency sector.  In order to function under these environmental regulations, a new industries will emerge to help with compliance.  This will range from environmental consulting to energy efficient manufacturing processes.  The Air Resources Board has indicated their studies show that the increase in "green" jobs will outweigh any job losses in the short.