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.
Continue Reading California Air Resources Board Issues AB 32 Report
California Issues 2012 Bioenergy Action Plan
The California Bioenergy Interagency Working Group has released its 2012 Bioenergy Action Plan, with the goal of facilitating the development of bioenergy in California on a variety of levels, including research and development support, streamlining and consolidating permitting, facilitating access to transmission, pipelines, and other distribution networks, and policies and laws to monetize the
D.C. Circuit Rejects EPA’s Transport (Cross-State Air Pollution) Rule
Yesterday, the D.C. Circuit Court of Appeals issued a decision in EME Homer City Generation, L.P. v. EPA that rejects the U.S. Environmental Protection Agency’s approach to regulating upwind pollution from coal- and natural gas-fired power plants, among other sources. The so-called Transport Rule, also known as the Cross-State Air Pollution Rule, had sought to
D.C. Circuit Upholds EPA Greenhouse Gas Rules
Yesterday, the D.C. Circuit Court of Appeals issued a decision in Coalition for Responsible Regulation v. EPA, upholding the U.S. Environmental Protection Agency’s approach to the regulation of greenhouse gas (GHG) emissions against claims from a variety of interests. The opinion addressed challenges to three EPA rulemakings: (1) the agency’s “Endangerment Finding,” where it
Injunction on California’s Low Carbon Fuel Standard Lifted Pending Appeal
The Ninth Circuit Court of Appeals has lifted an injunction that prevented the California Air Resources Board (CARB) from enforcement of the state’s low carbon fuel standard (LCFS), pending appeal of a lower court decision enjoining the LCFS. In December 2011, a federal district court found the LCFS in violation of the dormant commerce clause
DRECP EIS/EIR Scoping Meeting at the Energy Commission
It’s a double header at the California Energy Commission (CEC) today. The Renewable Energy Action Team – comprised of the CEC, the California Department of Fish and Game, the Bureau of Land Management (BLM), and the U.S. Fish and Wildlife Service (FWS) – is holding two public scoping meetings for the combined environment impact statement/environmental
Compliance with California Cap-and-Trade May Be Deferred Until 2013
California greenhouse gas emitters may be granted a reprieve. The Executive Director of the California Air Resources Board (CARB), Mary Nichols, testified before the California Senate Select Committee on the Environment, the Economy, and Climate Change yesterday that CARB is proposing to delay requirements for compliance with the state cap-and-trade program for a year. Nichols
CARB Issues Supplement to A.B. 32 Scoping Plan Environmental Review
Yesterday, the California Air Resources Board (CARB) released a Supplement to its Functional Equivalent Document (FED) for the A.B. 32 Climate Change Scoping Plan – the environmental review document for the Scoping Plan. The Supplement was prepared as a result of a ruling against CARB in Association of Irritated Residents, et al. v. California Air