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ARTICLE · 12 FEBRUARY 2013

California Continues To Implement "Cap And Trade" While Defending Program In Court

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The California Air Resources Board has taken several recent steps to amend, implement, and defend its regulations establishing a state greenhouse gas "cap and trade" program.

United StatesEnvironment
Thomas Donnelly
Thomas Donnelly
Charles Hungerford
Charles Hungerford
Sarah Rauh
Sarah Rauh
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The California Air Resources Board ("CARB") has taken several recent steps to amend, implement, and defend its regulations establishing a state greenhouse gas "cap and trade" program, which sets a declining cap on such emissions and requires covered sources to have sufficient "compliance instruments," which include emission allowances and offset credits, to cover their emissions.

On December 14, 2012, CARB announced its approval of two offset registries. The registries are authorized to list offset projects that comply with protocols approved by CARB. On January 25, 2013, the San Francisco Superior Court denied a petition for writ of mandate filed by two environmental groups challenging the offset protocols. The court concluded that the protocols' standards-based approach to additionality is consistent with A.B. 32, the authorizing statute, and that the four approved protocols are neither arbitrary nor capricious.

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