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ARTICLE · 23 AUGUST 2017

California Governor Signs Climate Change Law Extending The Cap-And-Trade Program Until 2030

•California Governor Jerry Brown signed Assembly Bill (AB) 398 into law on July 25, 2017. The legislation extends California's cap-and-trade program, which would have expired in 2020, until December 31, 2030.

United StatesEnvironment

Tara Kaushik is a Partner and Genna Yarkin is an Associate in our San Francisco office.

HIGHLIGHTS

  • California Governor Jerry Brown signed Assembly Bill (AB) 398 into law on July 25, 2017. The legislation extends California's cap-and-trade program, which would have expired in 2020, until December 31, 2030. AB 398 aims to ensure California meets its target to reduce greenhouse gas emissions to 40 percent below 1990 levels by 2030.
  • It authorizes the California Air Resources Board (CARB) to establish declining emissions limits for businesses that are subject to state emissions regulations.
  • It reduces the amount of carbon offsets businesses can use to comply with the program, and requires that half of the offsets provide direct environmental benefits in California.

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