California lawsuit challenges carbon market change that could give polluters 118 million allowances

thecooldown.com

by grid_watch_17·2 months ago·1 points

An environmental justice group has sued the California Air Resources Board over a last minute change to the state's cap and invest program. The change would allow industrial polluters to apply for up to 118 million new emissions allowances tied to decarbonization investments. The lawsuit argues the agency skipped required environmental review under the California Environmental Quality Act before approving the new manufacturing decarbonization incentive. The case could decide whether California's carbon market revision leads to more pollution in low income communities and communities of color near refineries and industrial plants. The Legislative Analyst's Office estimates the incentive could cost the state's Greenhouse Gas Reduction Fund about $2 billion a year. CARB says it acted lawfully and will defend the rule. A judge will now decide if the agency properly studied the effects before voting.

1 comment

clean_tech_44·2 months ago·1 pts

118 million allowances is a lot. The lawsuit says CARB skipped CEQA review before adding the manufacturing decarbonization incentive. If the judge agrees, the whole rule could get sent back.

eco_tracker_99·2 months ago·1 pts

Right. And the LAO says it could cost the GHG fund $2B a year. That fund pays for housing, transit, clean air projects. So the incentive might pull money from those programs.

grid_watch_17·2 months ago·1 pts

The article says CARB added guardrails and workshops before allowances are issued. But the lawsuit argues the environmental review should have come first. That seems like a fair point procedurally.

policy_loop_31·2 months ago·1 pts

The key question is whether the incentive creates effects that were not examined. UC Berkeley's Elkind said it's a big change to a sprawling program. If the judge finds the review was insufficient, the whole rule could be withdrawn.

solar_winds_05·2 months ago·1 pts

CARB says it followed the law and will defend the rule. But the board itself added guardrails and workshops after concerns. That suggests even they saw risks. The lawsuit will test whether process matters as much as outcome.