CARB

Subscribe to CARB via RSS

CARB doubles down on LCFS Program and liquid transportation fuels.

By Joshua T. Bledsoe and Jennifer Garlock

On May 10, 2022, the California Air Resources Board (CARB) released its Draft 2022 Scoping Plan Update (Draft Scoping Plan) for public review and comment. Assembly Bill (AB) 32, the California Global Warming Solutions Act of 2006 (AB 32), requires CARB to develop and update every five years a scoping plan that describes the approach California will take to reduce greenhouse gas (GHG) emissions to achieve the goal of reducing emissions to 1990 levels by 2020. Senate Bill (SB) 32 subsequently strengthened the state’s GHG emissions reductions target to at least 40% below 1990 levels by 2030. Our first post in this series discusses CARB’s Proposed Scenario to achieve the state’s GHG targets, which adopts a carbon neutrality target for 2045. Our second post explores how the Cap-and-Trade Program features in the Draft Scoping Plan. In this third post, we examine how California’s Low Carbon Fuel Standard (LCFS) Program factors into the state’s GHG reduction goals and how the LCFS Program may be amended in the near future. The Draft Scoping Plan states that CARB will initiate a rulemaking on the LCFS to ensure it continues to support low-carbon fuels that will displace petroleum fuels.[1]

CARB opts to stay the course on Cap-and-Trade Program.

By Joshua T. Bledsoe, Michael Dreibelbis, and Alicia Robinson 

On May 10, 2022, the California Air Resources Board (CARB) released its Draft 2022 Scoping Plan Update for public review and comment. Assembly Bill (AB) 32, the California Global Warming Solutions Act of 2006 (AB 32), required CARB to develop a scoping plan, to be updated at least once every five years, that describes the approach California will take to reduce greenhouse gas (GHG) emissions to achieve the goal of reducing emissions to 1990 levels by 2020.  In developing the 2022 Draft Scoping Plan Update (Draft Scoping Plan), CARB evaluated four scenarios to identify the most viable path to achieve the state’s 2030 interim GHG reduction and GHG neutrality targets. Our first post on this topic discusses CARB’s ultimate selection of the third scenario, which adopts a carbon neutrality target for 2045 instead of 2035, as the best among the four. In this second post, we discuss how the Cap-and-Trade Program (the Program) features in the Draft Scoping Plan.

The Draft 2022 Scoping Plan Update takes an all-of-the-above approach to decarbonize California.

By Joshua T. Bledsoe and Brian McCall

On May 10, 2022, the California Air Resources Board (CARB) released its Draft 2022 Scoping Plan Update for public review and comment. Originally, the California Global Warming Solutions Act of 2006 required CARB to develop a scoping plan, to be updated every five years, that describes the approach California will take to reduce Greenhouse Gas (GHG) emissions to achieve the goal of reducing emissions to 1990 levels by 2020.

Subsequently, Senate Bill 32 strengthened the state’s GHG emissions reductions target to at least 40% below 1990 levels by 2030 and former Governor Jerry Brown’s Executive Order B-55-18 established a second statewide goal to achieve carbon neutrality as soon as possible, and no later than 2045. Recognizing the need to achieve GHG emissions reductions more quickly, in July 2021, Governor Gavin Newsom directed CARB to accelerate efforts to achieve the state’s climate stabilization and GHG reduction goals, including to “identify a pathway for achieving carbon neutrality a full decade earlier than the existing target of 2045.” The Draft Scoping Plan Update identifies CARB’s proposed path for how California can reach both its interim goal of reducing GHGs by at least 40% below 1990 levels by 2030, and its ultimate goal of carbon neutrality by 2045 along with pathways that would achieve carbon neutrality by 2035.

If adopted, the Senate bill would require large US companies doing business in California to report Scopes 1, 2, and 3 emissions as of January 2024.

By Jean-Philippe Brisson, Marc T. Campopiano, Jennifer K. Roy, Joshua T. Bledsoe, Julie Miles, and Alicia Robinson

The California Legislature is considering a bill to impose corporate sustainability reporting requirements that would substantially expand corporate greenhouse gas (GHG) emissions reporting obligations and, according to the bill’s co-author, impact “the vast majority of the country’s largest corporations, who almost all conduct business in California.” If adopted, Senate Bill 260 (SB 260) would establish a first-of-its-kind mandatory GHG emissions reporting framework requiring regulated entities to report all emissions “scopes,” including Scope 3 emissions (discussed below). The bill could also have impact well beyond California given the state’s ambitious climate policies and the number of large companies that do business in California.

The State and eNGOs seek to defend an emissions rule that trucking and airline trade groups are challenging in federal court.

By Joshua T. Bledsoe and Jennifer Garlock

On October 13, 2021, the State of California, on behalf of the Office of the Attorney General and the California Air Resources Board (CARB, and together, the State), filed a motion to intervene in a federal lawsuit challenging the South Coast Air Quality Management District (SCAQMD or the District) adoption of Rule 2305. Rule 2305 is the Warehouse Indirect Source Rule (ISR) – Warehouse Actions and Investments to Reduce Emissions (WAIRE) Program. Plaintiff, the California Trucking Association (CTA), filed a complaint in the US District Court for the Central District of California on August 5, 2021, to which the District filed an answer on October 7, 2021.[i] In addition to the State, Airlines for America filed a motion to intervene as a proposed plaintiff, while a group of environmental NGOs seek to intervene as proposed defendants. Each proposed intervenor is discussed further below.

The novel regulation aims to reduce GHG emissions from ride-sharing vehicles in California.

By Joshua T. Bledsoe and Jen Garlock

The California Air Resources Board (CARB) is developing the Clean Miles Standard, a regulation to reduce greenhouse gas (GHG) emissions from ride-sharing vehicles and encourage broader adoption of zero-emission vehicles (ZEV), pursuant to Senate Bill (SB) 1014.

The regulation will include two primary requirements related to: (1) increasing the percentage of total miles driven by ride-sharing companies using ZEVs, and…

The Governor has issued an Executive Order with sweeping implications for the oil and gas industry and others.

By Jean-Philippe Brisson, Joshua T. Bledsoe, Nikki Buffa, and Brian F. McCall

On September 23, 2020, California Governor Gavin Newsom signed Executive Order N-79-20, which will have sweeping implications for the oil and gas industry, automakers, low-carbon fuel producers, the logistics industry, and public transit agencies, among others (the Executive Order). Newsom announced the Executive Order against the backdrop of what he called “simultaneous crises,” none of which he argued is more impactful and forceful as the climate crisis. The press conference included Mary Nichols, Chair of the California Air Resources Board (CARB), standing before a small fleet of zero-emission vehicles.

In what will likely be viewed as the most far-reaching measure, the Executive Order requires all passenger vehicle sales starting in 2035 to have zero emissions — a mandate that essentially bans sales of new internal-combustion-powered passenger vehicles in California. As discussed below, the Executive Order raises several significant issues.

In recent LCFS amendments, CARB introduced a new price cap on all LCFS credit transfers and authorized limited future credit borrowing.

By Joshua T. Bledsoe, Brian F. McCall, and Kevin A. Homrighausen

On November 21, 2019, the California Air Resources Board (CARB) passed Resolution 19-27, approving several amendments to the Low Carbon Fuel Standard (LCFS) program designed to foster stability in the LCFS market and promote access to electric vehicle (EV) transportation for disadvantaged and low-income communities in California.

Concerns of Credit Price Run-up

The LCFS is a key pillar of California’s efforts to reduce greenhouse gas (GHG) emissions in the transportation sector. As discussed in previous posts, regulated entities must either: (1) ensure that fuels supplied in California meet annual, decreasing carbon intensity (CI) targets (e.g., by blending biofuels into gasoline and diesel); or (2) procure and surrender credits to CARB. Regulated entities can buy LCFS credits in the bilateral market or in the Credit Clearance Market (CCM), a CARB-administered market intended to supply cost-controlled credits in the event of a market shortage. The rulemaking appears to reflect CARB’s acknowledgment of long-held concerns in the LCFS market that deficit generation will outstrip credit generation, and the CCM will be unable to adequately cap credit prices. The steady advance of LCFS credit prices since the summer of 2017 is well documented in CARB’s Credit Transfer Activity Reports. The most recent LCFS amendments are intended to ensure that the CCM will continue functioning in the event of a credit shortage and to safeguard against a potential LCFS credit price run-up.

CARB’s revised discussion draft removes a previously proposed de minimis exemption for owners of SF6 GIE.

By Aron Potash and Christopher C. Antonacci

On August 15, 2019, California Air Resources Board (CARB) staff published a revised discussion draft (Revised Draft) of potential changes to the Regulation for Reducing Sulfur Hexafluoride Emissions from Gas Insulated Switchgear (SF6 Regulation). The Revised Draft takes into account comments received from stakeholders in the past several months. Notably, it proposes several significant changes to the SF6 Regulation, including removing a previously proposed de minimis exemption to compliance with the SF6 Regulation emissions limit and revising the phase-out schedule for SF6 gas-insulated equipment (GIE). Latham & Watkins examined the previous discussion draft in this March 4, 2019, blog post.

CARB held a workshop in Sacramento the same day it released the Revised Draft, during which staff presented an overview of the changes, answered stakeholders’ questions, and solicited any questions or concerns stakeholders may have. CARB is accepting public comments on the Revised Draft through August 29, 2019.

California proposes phasing out the use of SF6 in GIE and further reducing allowable GHG emissions from such equipment.

By Aron Potash and Kimberly D. Farbota

California Air Resources Board (CARB) staff recently published a discussion draft (Draft Amendments) of potential changes to the current Regulation for Reducing Sulfur Hexafluoride Emissions from Gas Insulated Switchgear (SF6 Regulation).

Key proposed changes to the SF6 Regulation include:

  • Phasing out sulfur hexafluoride (SF6) gas-insulated equipment (GIE)
  • Further reducing allowable emissions from GIE
  • Expanding the regulation to encompass greenhouse gases (GHG) other than SF6

CARB held a workshop in Sacramento on February 25, 2019, during which staff presented an overview of changes proposed in the Draft Amendments and answered stakeholders’ questions. During the workshop, staff stated that CARB would like to hear any questions or concerns stakeholders may have about the Draft Amendments.