California Air Resources Board

Our latest post provides updates on environmental and legal developments in Los Angeles and adjacent counties, as well as the Southern San Joaquin Valley.  We welcome your comments and contributions.

Legislation and Ordinances  

Implementation of AB 617, CARB’s Community Air Protection Program. AB 617 requires the California Air Resources Board (CARB) by October 1, 2018 to identify the highest priority communities affected by a high cumulative air emissions exposure burden (“impacted communities”); to establish the criteria for air monitoring and local emissions reduction programs; and to develop a statewide strategy for reducing emissions, to be updated every 5 years.  Additional timeline for required actions:Continue Reading SOUTHERN CALIFORNIA ENVIRONMENTAL UPDATE – NEW AIR QUALITY AND OIL & GAS REGULATORY DEVELOPMENTS

Governor Jerry Brown signed Assembly Bill 1132 (“AB 1132”) into law on August 7, 2017.  The bill, authored by Democratic Assemblymember Cristina Garcia, adds Section 42451.5 to the Health and Safety Code which authorizes air districts to issue interim orders for abatement pending an abatement hearing for non-vehicular sources of air pollution.  The South Coast Air Quality Management District sponsored the bill.

Existing law permits the governing boards and the hearing boards of California air districts to issue orders for abatement, after notice and an abatement hearing, whenever the air districts find a violation of any order, rule, or regulation prohibiting or limiting the discharge of air contaminants into the air.  Health & Safety Code § 42451.  AB 1132 goes one step further.  Effective on and after January 1, 2018, AB 1132 permits an air pollution control officer to issue an interim abatement order, without a hearing, if the officer finds there is an “imminent and substantial endangerment to the public health or welfare, or the environment.”  Id. § 42451.5(a) (emphasis added).  It is not hard to imagine that most air pollution control officers will exercise this new power with zeal and impunity.Continue Reading How Due Process Will Wither and Die under California’s New Air Contaminant Law: AB 1132 Authorizes Air Districts to Shut Down Facilities Without a Hearing

California’s cap-and-trade program withstood a battle in court, and now the Legislature is proposing changes to the controversial program.  Senator Bob Wieckowski (Democrat – District 10), Chair of the Environmental Quality Committee, has authored Senate Bill 775 (“SB 775”) which would extend the cap-and-trade program to 2030 with modifications.  The existing cap-and-trade program, established under Assembly Bill 32 (2006) or the California Global Warming Solutions Act (“Act”), expires in 2020.  The Act requires the State Air Resources Board (“ARB”) to approve a statewide greenhouse gas emissions limit equivalent to 1990 greenhouse gas emissions level to be achieved by 2020, and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030, as outlined in Senate Bill 32 (2016).
Continue Reading Senate Bill Proposes Major Market-Based Remodel of Cap-and-Trade Program

Late Tuesday, the California Air Resources Board (ARB) released draft amendments to the state’s cap and trade regulation, including revisions to the current program in place through 2020, an extension of the program through 2030, and setting the stage for continued emissions reductions under the program through 2050.  ARB’s proposed amendments come in the middle of a recent milieu of uncertainty:  pending litigation challenging the legality of the existing program, an opinion from Legislative Counsel that ARB lacks authority under AB 32 to continue cap and trade past 2020, unprecedented weak demand at the most recent allowance auction, and legislation to establish a statutory emissions reductions mandate for 2030 still in process this session.  With all of these balls in the air, ARB has doubled down and drafted regulations dropping the program’s emissions cap from 334.2 million metric tons (MMT) of CO2e in 2020 to 200.5 MMT in 2030, with major elements of the cap and trade regulation continuing in effect past 2020 to achieve the emissions reductions.
Continue Reading What You Need to Know about the Proposed Revisions to Cap and Trade

February 27, 2015 was the deadline for lawmakers to introduce legislation to the 2015-2016 California Legislative Session and several bills related to oil and gas activities were introduced.  Below is a summary of those bills. Stoel Rives is monitoring these bills and will provide periodic updates as the bills move through the legislative process.

SENATE BILLS

SB-13 (Pavley):  Groundwater

This bill would specify that the State Water Resources Control Board is authorized to designate a high- or medium-priority basin as a probationary basin. This bill would provide a local agency or groundwater sustainability agency 90 or 180 days, as prescribed, to remedy certain deficiencies that caused the board to designate the basin as a probationary basin. This bill would authorize the State Water Resources Control Board to develop an interim plan for certain probationary basins one year after the designation of the basin as a probationary basin.Continue Reading Status of Oil and Gas-related Bills Proposed in California’s 2015-2016 Legislative Session

Today, the U.S. Supreme Court denied petition for review in Rocky Mountain Farmers Union v. Corey. In Rocky Mountain Farmers, the Ninth Circuit addressed the constitutionality of California’s Low Carbon Fuel Standard (LCFS), focusing specifically on whether the LCFS discriminates against out-of-state businesses and thus violates the dormant Commerce Clause. Read our September

This week, the Ninth Circuit Court of Appeals issued its decision in Rocky Mountain Farmers Union v. Corey, ruling on the constitutionality of California’s Low Carbon Fuel Standard (LCFS).  The Court of Appeals reversed the District Court’s holdings in large part, in particular finding that the LCFS does not on its face violate the

In Poet, LLC et al. v. California Air Resources Board et al., the Fifth Appellate District held the Air Resources Board (“ARB”) violated CEQA and the APA with its approval of the Low Carbon Fuel Standards (“LCFS”) regulations, and ordered the lower court to issue a peremptory writ of mandate, requiring ARB to take certain CEQA-related actions in any re-approval of the regulations. In doing so, however, the Court concluded that the LCFS regulations could remain in effect while ARB took the actions necessary to comply with CEQA and the APA. The Court also ordered that if those corrective actions were not taken, ARB would be ordered to set aside and suspend operation and enforcement of the LCFS regulations.

The LCFS regulations were adopted by ARB to reduce emissions from transportation and implement measures to achieve the goals of the California Global Warming Solutions Act of 2006 ( “AB 32”). In enacting the regulations, ARB was required to comply with AB 32, California’s Administrative Procedures Act (“APA”), and the California Environmental Quality Act (“CEQA”).Continue Reading California Appeals Court: Air Resources Board Low Carbon Fuel Standards Regulations Violate CEQA

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