California Passes Climate Change Bills, Extending Cap-and-Trade to 2030

On July 17, 2017, the California State Legislature passed bills extending the cap-and-trade program and creating a new community air monitoring program. The cap-and-trade bill (AB 398) was passed by a 2/3 majority vote which will resolve outstanding legal questions about whether the cap-and-trade program comports with Prop. 26. The Cap-and-Trade bill will extend the program until 2030 and lock in free allocation of cap-and-trade allowances for certain industrial sectors. The Community Air Monitoring Program requires new monitoring protocols of criteria pollutants at existing sources located in or near disadvantaged communities. The bill will also require air districts to set an expedited schedule for setting new permit limits that incorporate Best Available Retrofit Control Technologies (“BARCT”). Finally, the legislature passed a constitutional amendment that will require a supermajority vote to make future appropriations of funds from the Greenhouse Gas Reduction Fund (i.e., money from the Cap-and-Trade auctions). Here are the two climate change bills and the Constitutional Amendment that passed last night. Please contact Brian Biering at Ellison, Schneider, Harris & Donlan with any questions.

AB 398 – extends cap-and-trade

AB 617 – community monitoring program

ACA 1 – limits future appropriations of the GGRF