Arizona: State chamber scales back in wake of budget crisis

One of the first battles will be whether Arizona proceeds with the "cap and trade'' program being pushed by Napolitano as part of the Western Climate Initiative. It would require businesses, beginning in 2012, to reduce emissions of greenhouse gases to specified levels or purchase credits from companies that exceed their goals.

Hamer said the chamber believes climate change is an international problem that should be addressed internationally, including limits on the emissions of technologically emerging nations like China and India. If nothing else, he said, there should be a single national program so that companies in areas without these emission standards do not have competitive advantages over Arizona firms that will face higher costs.

Lawmakers approved a measure backed by the chamber last session to ban new greenhouse gas regulations without specific legislative authority. That bill, however, was vetoed by Napolitano.