Environmentalism

CA Sticks With Cap-and-Trade Even as Businesses Flee

Shockingly, companies don't want to shoulder new costs and regulations

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Leakage. It sounds like something dribbling from a broken beer stein. It's also become a buzzword in the implementation of the California Global Warming Solutions Act of 2006, also known as AB 32.

The California Air Resources Board defines leakage in bureaucratese as "a reduction in emissions of greenhouse gases within the state that is offset by an increase in emissions of greenhouse gases outside the state." In other words, some California businesses will be shutting down, downsizing or moving out of state in response to the legislation's exorbitant costs and onerous regulations.