The South Coast Air Quality Management District has scheduled its fifth working group meeting on the District’s proposed Rule 1304.1 for May 8, 2013. The proposed Rule would impose substantial new fees for the replacement or repower of electrical generating facilities within the District, by charging developers who obtain air emissions offsets from the District’s
Energy
Supreme Court Rejects Logging Road Permit Requirement
On March 20, 2013, the Supreme Court ruled in Decker v. Northwest Environmental Defense Center 586 U.S. (2013) reversing a ruling from the U.S. Court of Appeals for the Ninth Circuit that would have required Clean Water Act permits (CWA) for stormwater running off logging roads. The decision turns largely on deference to EPA’s interpretation…
South Coast Air Quality Management District Holds Third Rule 1304.1 Working Group Meeting
The South Coast Air Quality Management District held its third working group meeting yesterday for the District’s proposed Rule 1304.1. The proposed Rule would impose substantial new fees on developers repowering electrical generating facilities within the District, which encompasses Orange County and parts of Los Angeles, Riverside, and San Bernardino Counties. Under the proposed…
California Air Resources Board Issues Results of Quarterly Cap and Trade Allowance Auction
On February 19, 2013, the California Air Resources Board held its second auction of greenhouse gas (GHG) emission allowances for its Cap and Trade Program. This was the first quarterly auction for 2013; the first auction was held November 14, 2012. All ‘covered entities’ – GHG emitters regulated under Cap and Trade – were…
California Air Resources Board Issues AB 32 Report
The California Air Resources Board has released its first semi-annual report to the California Legislature on the agency’s AB 32 programs, designed to meet the state’s goal of reducing greenhouse gas emissions to 1990 levels by 2020. The report details recent developments and anticipated milestones for three of CARB’s major AB 32 initiatives: the cap and trade program, the low carbon fuel standard (LCFS), and the advanced clean cars program. For our primer on the cap and trade program, see our earlier post. Some highlights from these programs in 2012 and things to look for in 2013:
- The first auction of cap and trade greenhouse gas emission allowances was held in November 2012, raising $233 million for the state’s investor-owned utilities (for the benefit of ratepayers) and $55 million for the state Greenhouse Gas Reduction Fund. The next auction will take place February 19, 2013 and the first allowance price containment reserve sale will be on March 8, 2013.
- A trial court decision is expected in 1Q 2013 in the lawsuit challenging the offset protocols adopted for the cap and trade program, Citizens Climate Lobby and Our Children’s Earth Foundation v. CARB.
- Sacramento Superior Court will hear arguments at the end of May 2013 in California Chamber of Commerce v. CARB, which challenges the cap and trade auction mechanism.
- In early 2013, Governor Brown will consider the proposed linkage between California’s cap and trade program and Quebec’s program. Public comments will be accepted on the package considered by the Governor.
- Proposed amendments to the cap and trade regulation will be released summer 2013.
- Development of new offset protocols is anticipated for spring 2013.
- Further study has been initiated on several hot topics in cap and trade – leakage, industry benchmarks for efficiency, and affects of cap and trade on the agricultural sector, including food processors.
- For the LCFS, hearings will be held in spring 2013 to add fuel pathways and crude oil carbon intensities.
- Expect amendments to the LCFS in fall 2013, with rulemaking workshops to begin in the first half of 2013. Workshops topics will include specifications for alternative diesel fuel blends, including biodiesel.
- Related to the advanced clean cars program, CARB withdrew its Clean Fuels Outlet regulation in December 2012, which would have required fuel providers to build hydrogen stations once a certain number of fuel cell vehicles were in the California market. Proposed legislation – AB 8 – would reauthorize various clean air fees to fund the hydrogen fueling network. The Assembly Transportation Committee held its first hearing on AB 8 today.
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Stoel Rives Publishes Primer on the Basics of California’s Cap and Trade Program
California’s Cap and Trade Program is now a reality. Businesses needs answers to questions arising from this complex program. Now that the State of California has held its first auction of carbon allowances under the Program and the initial compliance period of 2013-2014 is now underway, Stoel attorneys Michael Mills, Tom Henry and Allison…
Fresno Court Denies Farm Bureau Challenge to Williamson Act Cancellation for Solar Project
The Fresno County Superior Court has denied the California Farm Bureau Federation’s challenge to Fresno County’s cancellation of a Williamson Act contract to accommodate a solar generating project. The decision is the first to take on the interplay between the Williamson Act’s goals to protect agricultural land and the State’s directive to increase reliance on…
DOGGR Announces Plans for UIC Rulemaking re Fracking
In an action plan provided to EPA on November 16, the California Division of Oil, Gas, and Geothermal Resources (DOGGR) committed to initiate rulemaking in 2013 to increase groundwater protection relating to fracking through its underground injection control (UIC) program. DOGGR developed the plan in response to EPA’s request to address concerns relating to EPA’s 2011 review of DOGGR’s UIC program. In the plan, DOGGR indicates the rulemaking will address the UIC program as well as well construction and plugging and abandonment regulations.
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California Lawmakers Table Fracking Bills.
On Thursday, the Senate Appropriations Committee shelved two bills relating to fracking, AB 972 and AB 591. AB 972 would have placed a moratorium on fracking in California pending issuance of state regulations governing the practice (See August 14 post). AB 591 would have required operators to disclose fracking activities and chemicals (See…
State Senate Postpones Vote on Bill to Ban Fracking
After the California Senate Appropriations Committee cancelled an August 13 hearing on AB 972 (see August 8 post), the Committee moved the bill to the suspense file to take up again this Thursday, August 16. The bill would place a moratorium on fracking in the state until the Division of Oil, Gas and Geothermal…