Cap and trade program questioned by state appellate court

Cap and trade program questioned by state appellate court

In 2013, a state trial court found against the California Chamber of Commerce and Morning Star Packing Company in a case challenging the constitutionality of California’s cap-and-trade program. While parties in the case wait to present oral arguments before the 3rd Appellate Court, the justices issued a request to parties with a series of questions that has many wondering if the court is considering undoing cap-and trade. The questions appear unfavorable to the Air Resources Board (ARB) with a focus on how the court might consider implementing a decision against ARB, specifically looking at how to back out the funds paid into the auction and returning them to payers.

The appellate court also wants to know how close the parties believe the expenditure of the funds should be to actual reductions in greenhouse gas emissions and what standards the court should use in evaluating such expenditures.

Briefs in the case are due by May 23, 2016 and oral arguments may take place later in the summer. However, it is expected that this case will ultimately go before the California Supreme Court regardless of the outcome at the appellate level. Read more

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