SCE seeks incentives for emissions-cutting program

LOS ANGELES, May 16 (Reuters) - Southern California Edison on Friday proposed to California clean air regulators what it calls the first major "early action" greenhouse gas reduction projects since the state's ambitious emissions-cutting plan was passed in 2006.

If the plan is approved, SCE's plan could reduce about 3.7 million metric tons of carbon dioxide (CO2) in eight separate projects that use cleaner methods of making or saving energy.

The costs of the program is about $23 million, which will be passed to ratepayers to the tune of 20 cents for every $100 of current utility bills.

SCE is the main subsidiary of Edison International (EIX.N: Quote, Profile, Research) based in the Los Angeles suburb of Rosemead, California.

California Gov. Arnold Schwarzenegger in late September signed the Global Warming Solutions Act of 2006, which mandates caps on emissions to reduce climate-changing greenhouse gas emissions by 25 percent by 2020.

The program is called an "early action" because it seeks to cut greenhouse gas emissions ahead of the state enacting final rules on the cuts by Jan. 1, 2012. The state rewards entities like SCE that file for "early actions."

Projects include cutting emissions from idling trucks at large truck stops, advancing plug-in hybrid electric cars and converting livestock waste to fuel.

"SCE's program calls for independent state validation, before we begin these projects, of the specific greenhouse gas reduction methods proposed plus strict results measurements after the projects are in operation," said Michael Hertel, SCE environmental policy director.

The state clean air regulator, California Air Resources Board, must confirm the soundness of the SCE program and the utility's calculations before the California Public Utility Commission can decide whether to allow costs of the program to be passed on to home and business owners. (Reporting by Bernard Woodall; Editing by Christian Wiessner)