California Court Rules Against CARB-Halts AB 32 Implementation

Manatt, Phelps & Phillips, LLP
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On Friday March 18, 2011, California Superior Court Judge Ernest Goldsmith finalized his earlier tentative ruling on the validity of the California Air Resources Board (CARB) environmental analysis. Judge Goldsmith found that CARB did not comply with the California Environmental Quality Act (CEQA) when it finalized and approved the AB 32 Scoping Plan (Plan). Though the tentative decision left some uncertainty about the actual intent of the ruling, this time around the court was much clearer. This decision states that CARB is enjoined from "any further implementation of the measures contained in the Scoping Plan."

The implications of this decision are broad, and depending on how quickly CARB can remedy the situation, may have long-lasting effects. The Scoping Plan laid out California’s blueprint or roadmap to meeting the goals of the California Global Warming Solutions Act of 2006, or AB 32. The Plan contained 69 distinct measures for reducing greenhouse gas emissions (GHGs), including a Cap and Trade market, the Low Carbon Fuel Standard, a 33% Renewable Energy Standard, and others. Some of these measures are already adopted and implementation has begun, others are in the final stages of regulatory adoption.

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