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ARTICLE · 23 MAY 2012

Environmental Groups Challenge California's "Cap And Trade" Regulations

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On March 27, 2012, two public interest groups filed suit in San Francisco Superior Court against the California Air Resources Board ("CARB"), challenging the offset credits allowed under California's "cap and trade" regulations.

United StatesEnvironment
Thomas Donnelly
Thomas Donnelly
Charles Hungerford
Charles Hungerford
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On March 27, 2012, two public interest groups filed suit in San Francisco Superior Court against the California Air Resources Board ("CARB"), challenging the offset credits allowed under California's " cap and trade" regulations. Citizens Climate Lobby and Our Children's Earth Foundation v. California Air Resources Board.

As discussed in previous editions of The Climate Report, CARB's cap and trade regulations are a key component of California's effort to implement the Global Warming Solutions Act of 2006 (AB 32). Emission sources subject to the program must annually surrender "compliance instruments" equal to their emissions of specified greenhouse gases, collectively expressed as CO2e. Compliance instruments can be obtained in several ways, including the purchase of offset credits, which can be generated from projects that reduce greenhouse gas emissions from activities that are not otherwise regulated under the cap and trade program. To qualify as offset

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