The lawsuits were filed by both the California Chamber of Commerce and the Pacific
Legal Foundation.
Legal Foundation.
The groups had argued that state-run carbon auctions amounted
to an unconstitutional tax on businesses.
to an unconstitutional tax on businesses.
More than 400 businesses are required to participate in the auction. The judge said while AB 32 doesn’t explicitly authorize a carbon auction, it does give the Air Resources Board the discretion to adopt a cap and trade program and design a system.
The judge called the dollars spent at carbon auctions more like regulatory fees than a tax.
The judge had tentatively ruled in favor of the Air Resources Board in August.
In a statement, the California Chamber of Commerce said it believes the decision is
ripe for review and reversal by the appellate court. The Pacific Legal Foundation says it will appeal.
ripe for review and reversal by the appellate court. The Pacific Legal Foundation says it will appeal.
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