We're sure the timing is a coincidence, but after yesterday's story about the White House's immature response to the EPA's decision to regulate CO2 emissions, California's announcement of a comprehensive cap-and-trade program seems like a big, green middle finger to the Bush Administration.

Undeterred by the federal government's refusal to grant California its waiver request to institute tougher CAFE standards, the state has gone one step further and developed an economy-wide plan to reduce emissions from current levels 10 percent by 2020. The state would need to reduce the carbon footprint of the average Californian from 14 tons to 10 in just 8 years, as most aspects are not proposed to go into effect until 2012.

The plan calls for a multi-pronged approach that includes forest management to reduce wildfires, increased efficiency for appliances and new buildings, and a plan to generate 33 percent of electricity from renewable sources.

The state has yet to estimate how much the plan will cost businesses, but officials expect it to save consumers hundreds annually in reduced energy needs, and for the state to realize economic benefits from its incentives by 2020. Plus, people will also get to enjoy cleaner air and reduced risk of asthma.

California's CO2 reduction plan is based on Europe's Emissions Trading Scheme, where some industries face emissions limits, while others like coal plants have the option of buying more credits to emit. Always modest, the California Air Resources Board expects that its plan will not only influence domestic climate legislation, but also that in China and India. We say, good luck with that.