California's greenhouse gas emissions cap-and-trade program, which is expected to go into effect in 2012, was unveiled in a final draft form last week, provoking mixed reactions from state businesses.
Supporters of the measure, which is a part of the state's AB 32 law passed in 2006, claim the restrictions on emissions help to spur green tech entrepreneurship and innovation. However, opponents claim the bill is too much to ask for during difficult economic conditions.
When the program is launched, the state will issue pollution "allowances" or credits that can be traded throughout industry, with the goal of reaching 1990 level emissions by 2020. But new rules to the program are being viewed as a relaxation of the initial plan - one of which allows businesses to offset credits through eco-friendly projects such as tree planting.
"It also provides a gradual approach in the early years that will allow California businesses the time needed to meet the 2020 goals," Shelly Sullivan, executive director of the AB 32 Implementation Group, told BusinessGreen.com.
California voters will decide Tuesday on a proposition to suspend AB 32 until unemployment reaches 5.5 percent for 12 months. With so much on the line, many entrepreneurs and green tech startups are waiting and wondering if it is a good idea to launch their LLC in California.
Tags : business licenses & permits, ca, small business management, taxes
Posted: Nov 1st, 2010