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

The Center for Biological Diversity filed another lawsuit yesterday in Alameda County Superior Court against the California Department of Conservation, Division of Oil, Gas, and Geothermal Resources (DOGGR) challenging permits issued for oil and gas well operations that allow hydraulic fracturing. The Center alleges in the complaint that DOGGR’s issuance of permits for well operations that include fracking violates the state’s Underground Injection Control (UIC) program and Public Resources Code.
Continue Reading Center for Biological Diversity Files Another Fracking Suit Against DOGGR

California’s Proposition 65 (“Prop 65”) is notable for many reasons, one of which is that the Prop 65 list of chemicals known to the State of California to cause cancer or reproductive harm is long (over 800 chemicals) and is ever-growing.  That being said, the vast majority of Prop 65 lawsuits and alleged violations only involve a handful…

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…

On December 20, the Alaska Oil and Gas Conservation Commission (AOGCC) released proposed regulations governing hydraulic fracturing. The regulations would require AOGCC approval to conduct fracking activities. This is in contrast to the California Department of Conservation’s Division of Oil, Gas, and Geothermal Resources Division (DOGGR) recently proposed “discussion draft” of potential fracking regulations (see…

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…

Yesterday, the California Department of Conservation’s Division of Oil, Gas, and Geothermal Resources (DOGGR) released what they are calling a “discussion draft” of a rule regulating hydraulic fracturing. The draft rule imposes new requirements specific to fracking operations, including testing, monitoring, disclosure and fluid handling obligations.
Continue Reading DOGGR Releases Draft Fracking Rule

New bills were introduced in the state Assembly (AB 7) and Senate (SB 4) to require disclosure of the chemicals and the amount of water used in hydraulic fracturing operations. This is at least the third attempt at fracking disclosure legislation, the last of which was tabled during the last session (see August 17 post).
Continue Reading Another Attempt at Fracking Disclosure Legislation in California

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.
Continue Reading DOGGR Announces Plans for UIC Rulemaking re Fracking

In the continuing legal battle between Central Valley agricultural interests and California’s high-speed rail (“HSR”) project, plaintiffs in three separate lawsuits in Sacramento County Superior Court requested a preliminary injunction to stop all work associated with the initial segment of the HSR between Merced and Fresno until a ruling on the lawsuits’ merits.  On November…

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