Virtually every business in California will be affected when the state's climate change bill, AB 32, kicks in next year. But one of the bill's co-authors says it's not likely to be as painful as many people fear.

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Compliance with the new rules for reducing greenhouse gas emissions will come in three forms: incentives, regulations, and some form of trading of emission costs and credits. Joe Nation explains that such a mechanism will reward those businesses that have already taken steps to reduce their carbon footprint.

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Joe Nation

California Gov. Arnold Schwarzenegger was joined by international leaders with a consistent record of addressing the global threat of climate change, New York Governor George Pataki and other environmental and industry leaders at the bill signing for AB 32 on Treasure Island in San Francisco on Tuesday, September 27, 2006.

Now, as the state's businesses prepare to work under the law's provisions, Joe Nation offers the following 11-point to do list to help them cope:

AB 32 "To DO" List

Action Item	Specific Steps to Take
1. Don't panic.	Think long term. AB 32 implementation will result in some modest economics challenges, but over several years, it will help more than it hurts.
2. Know your energy and carbon footprint.	Knowing what you use and emit will help you create a reduction plan. Even if you don't have to reduce, you may have to report emissions.
3. Make energy management and carbon management a priority.	Create your own company's version of the "Prius" effect. Energy users typically reduce consumption 10 percent just by monitoring their use.
4. Become even more energy efficient.	Energy efficiency is usually the most cost-effective way to reduce energy costs. Do this before sinking scarce dollars in shiny new toys and technology.
5. Reduce the carbon content of the energy you use.	After energy efficiency, then invest in renewables.
6. Invest in new carbon reduction technologies and projects, including sequestration projects.	Businesses across California are hungry for carbon credit and other reduction projects, including forestry, dairy, and other efforts. If you build it in the North Bay, the rest of California will come.
7. Think beyond electricity and natural gas reductions.	A majority of North Bay GHG emissions come from transportation. Focus on reducing your transportation footprint by implementing programs that offer pre-tax benefits to employees who take transit or carpool. Consider subsidized transit fares and guaranteed rides home.
8. Think about your supply chain.	Work with your suppliers to help reduce their GHG emissions. It will lower their costs and ultimately yours.
9. Take advantage of government, other assistance.	Use free utility audits and take advantage of forthcoming financing programs like AB 811, which make renewable energy projects more affordable.
10. Start items 1-9 yesterday and have a timeline or goal for completion.	Set realistic internal targets and ensure that you meet them.
11. Market your green accomplishments.	Consumers and your employees want to know you are reducing your GHG footprint. After you do, tell them and the rest of the world.