California's cap-and-trade initiative, scheduled to be implemented next year by the state's Air Resources Board (ARB) as part of the state's A.B.32 climate-change law, has encountered a legal obstacle. Judge Ernest Goldsmith of the San Francisco Superior Court has ruled that the ARB must first consider alternatives to the program.
This ruling does not necessarily mean that the ARB must delay or cancel its rollout of the program, according to the San Francisco Chronicle. However, Goldsmith stated that the ARB has not sufficiently examined other options, such as a tax on carbon emissions, before approving the cap-and-trade initiative, which was officially endorsed last December. Under the ruling, he ARB will be required to present its reasons for rejecting alternatives to cap-and-trade.
The ARB plans to appeal the decision.
For the full text of the court document, click here. For details on the ARB's cap-and-trade program, which would apply to 360 businesses representing 600 facilities, click here.
SOURCE: San Francisco Chronicle