Dear California Friends,

This summer signals a new push in Congress to build on California's progress in fighting global warming -- to simultaneously reduce greenhouse gas pollution and create a robust American economic engine. NRDC has just released a new report, "The Cost of Climate Change," that describes the expensive price tag we'll be faced with if we don't act now.

We are also pleased to feature Rick Duke in this issue since Rick is the director of our Center for Market Innovation, where NRDC is combining corporate leadership with policy and product innovation -- to convert today's marketplace failures into tomorrow's solutions for the planet. We know that the power of the marketplace can be harnessed for positive environmental change for all.

A first important step is passing strong climate legislation that will put America on the path to curbing global warming. The Lieberman-Warner bill coming up for vote in early June will be a critical test for Congress: will they act to set concrete limits on global warming pollution and create a market-based system that provides incentives for innovative companies to deliver new products and lower costs for everyone? We hope so.

Frances Beinecke, NRDC President
Annie Notthoff, California Advocacy Director

In May, NRDC announced our support for the largest land conservation agreement in the history of California. NRDC and other leading environmental groups reached the agreement with the Tejon Ranch Co., providing for the conservation of 240,000 acres of the 270,000-acre ranch property, roughly 90 percent of the property. Through the agreement, 178,000 acres will immediately receive permanent protection, and an additional 62,000 acres will be made available for public acquisition, with limited development reduced to the remaining 30,000 acres of the property. We applaud NRDC senior attorney Joel Reynolds for leading the efforts that resulted in this big win.

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In April, after years of tough and arduous negotiations with NRDC and a number of environmental and community groups, the Port of Los Angeles agreed to implement a long-overdue plan ensuring that as the port expands operations, harbor residents breathe a little easier. The agreement provides millions of dollars to the harbor community during the next five years to lessen health impacts associated with expanding the existing TraPac terminal. When completed, the TraPac terminal will be the equivalent of adding the entire capacity of the Port of Houston to the Port of Los Angeles -- in a single project. While TraPac is the largest project in the works, there are 16 additional major projects on the port's drawing boards. This fund could amount to more than $50 million dollars over the next five years and pay for installing particulate filters in harbor area schools and double-paned windows for port neighbors. In addition, throughout the appeal process, the port adopted several programs aimed at reducing harmful air pollution from trucks, ships, and construction equipment operating there.

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A U.S. delegation of federal and state utility commissioners, led by NRDC and RAP, recently visited many of China's top government agencies regulating electricity, trade, and economic development. The group of commissioners included many California officials: Jon Wellinghoff of the Federal Energy Regulatory Commission, Dian Grueneich of the California Public Utilities Commission, Art Rosenfeld of the California Energy Commission, Bob Lieberman of Illinois Commerce, and Rick Morgan with the Washington D.C. Public Service Commission. The commissioners and their Chinese counterparts discussed many issues including energy efficiency and demand-side management to address China's energy needs and climate change. The U.S. delegation emphasized China's opportunity to design its energy markets to include energy efficiency. U.S. delegation members left with an understanding of power sector reform in China, China's challenges, and some of its impressive policy achievements. Both groups agreed to continued policy exchange. Commissioners Grueneich and Rosenfeld, along with Barbara Finamore of NRDC, also invited leaders of the Economic and Trade Commission of Jiangsu, California's sister province, to visit California and to sign an expanded memorandum of understanding for cooperation on climate change research with the California Public Utilities Commission/California Energy Commission and potentially the California EPA. Jiangsu officials have accepted the invitation.

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Rick Duke is the director of NRDC's Center for Market Innovation, working with government and corporate leaders to accelerate market adoption of clean technologies and practices. Prior to joining NRDC in 2007, Rick was an engagement manager at McKinsey & Company, where his projects included developing a hedging strategy for a leading CO2 credits originator and managing a global assessment of greenhouse gas reduction opportunities, known as the McKinsey/Vattenfall cost curve study. Recently, Rick has led briefings across the country on McKinsey's subsequent year-long, in-depth report on the cost and opportunities for reducing U.S. greenhouse gas emissions. Sponsored by NRDC and six other groups (including leading companies such as Shell and Honeywell), the comprehensive study covers all sectors of the economy, with region-by-region analyses of various abatement options. Rick delves into the report's findings, what it means for business and the economy, and how NRDC's Center for Market Innovation and Environmental Entrepreneurs (E2) play important roles within the market to spur innovation while protecting environment and public health.

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Finally, there's an environmental fight on this month's California ballot that we want to draw your attention to. NRDC is working with a broad bipartisan coalition including cities, business leaders, labor, the governor and Senators Feinstein and Boxer among many others (see the complete list here) to defeat Prop 98 and pass Prop 99. Prop 98 has drawn such widespread opposition because it threatens the very ability of government to regulate harmful activities that threaten public health and the environment.

Backed by the same anti-government groups that have been working for years to wipe out environmental protections under the guise of eminent domain reform, Prop 98 closely resembles Prop 90, which California voters wisely rejected in 2006. The good news is that Prop 99 is also on the ballot and it contains legitimate eminent domain reform to protect homeowners without the hidden agendas and adverse consequences of Prop 98.

NRDC is opposing Prop 98 and supporting Prop 99, and we need your help to spread the word. Go to http://www.no98yes99.com/ to find out more about these propositions and to learn how you can get involved.