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5.21 Climate Change

               Greenhouse Gas and Climate Policies of the Trump Administration.  President Trump
               and  his  senior  advisors  and  appointees,  including  US  Environmental  Protection  Agency
               Secretary Scott Pruitt, have stated their intent to halt various regulatory activities to reduce
               greenhouse gas emissions, including for example, the Climate Action Plan, the Clean Power
               Plan,  and  a  waiver  program  allowing  California  to  mandate  more  stringent  emission
               standards for passenger cars and light duty trucks.  Representatives from various states,
               including California’s Governor and Legislative leaders, along with national environmental
               advocacy groups such as the Natural Resources Defense Council, have stated their intent to
               sue  to block federal agency  actions  that would postpone  or eliminate  GHG  reduction
               measures approved by former President Obama, and to consider expansions of state-level
               GHG reduction measures that are not dependent on federal action.  The timing, emission
               consequences,  litigation  outcome,  and  implementation  consequences  of  these  types  of
               federal GHG decisions, and the potential for and consequences of enhanced GHG reduction
               regulatory programs by other entities such as the state of California, remain speculative at
               this time.


               Multi-State/Regional Area

               Western Regional Climate Action Initiative

               The Western Regional Climate Action Initiative (WCI) is a partnership among seven States,
               including California, and four Canadian provinces to implement a regional, economy-wide
               cap-and-trade system to reduce global warming pollution. The WCI will cap GHG emissions
               from the region's electricity, industrial, and transportation sectors with the goal to reduce
               the heat trapping emissions that cause global warming to 15 percent below 2005 levels by
               2020. When the WCI adopted this goal in 2007, it estimated that this would require 2007
               levels to be reduced worldwide between 50 and 85 percent by 2050. California is working
               closely with the other States and provinces to design a regional GHG reduction program that
               includes a cap-and-trade approach.  CARB's planned  cap  and-trade  program,  discussed
               below, is also intended to link California and the other member States and provinces. As of
               January 1, 2014, California's Cap-and-Trade program is linked to Quebec's pursuant to the
               Agreement Between the California Air Resources Board and the Gouvernement du Québec
               Concerning  the  Harmonization  and  Integration  of  Cap-and-Trade  Programs  Reducing
               Greenhouse Gas Emissions, in accordance with the direction in CARB Board Resolution 13-7
               (CARB 2013).


               Pacific Coast Action Plan on Climate and Energy
               On October 28, 2013, the Governors of California, Oregon, and Washington and the Premier
               of British Columbia signed a clean energy pact, known as the Pacific Coast Action Plan on
               Climate and Energy (Pacific Coast Action Plan). Although the Action Plan does not impose
               legally enforceable obligations and lacks a specific schedule for implementation, the pact sets
               out a number of goals and aspirational measures. The Action Plan calls upon each of the
               parties to undertake a number of measures to address the use of carbon-based fuels in the
               transportation sector, including the adoption or maintenance of low-carbon fuel standards;
               the  development  of  targets  and  action  plans  in  order  to  encourage  public  and  private
               investment in low-carbon commercial fleets that use alternative fields; and the expansion of



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