California Greenhouse Gas Auction is challenged by California Chamber of Commerce One Day Before the Auction

The California Chamber of Commerce on November 13 filed a suit in Sacramento Superior Court in order to challenge the auction of Green House Gas (“GHG”) allowances that were scheduled for auction on November 14.  This is the key section of the AB 32 cap and trade program that allocates allowances and then reduces those allowances over years to create a subsequent reduction in GHG emissions. The planned auction was intended to cut greenhouse gas emissions to 1990 levels by the year 2020.  The suit is based on writ of mandate and declaratory relief causes of action based on violations of the GHG Control Law, AB 32 and for violations of the state constitution as an illegal tax.  Although no injunctive relief was requested that would stop the auction it is assumed that the suit would affect the extent to which some of the parties would particpate. Stand by for the results of the November 14, 2012 auction which will be published on the ARB website at 12:00 pm pacific Time on Monday, November 19, 2012. Once results are posted on the ARB website, auction participants will also be notified by the Auction Administrator via email of the availability of their auction results in the Auction Platform. The auction results will be accessed by logging into the participant’s account in the Auction Platform at: https://www.wci-auction.org/.