The plan accelerates already ambitious climate goals for California and charts a course to carbon neutrality by 2045.

By Joshua Bledsoe, Jen Garlock, and Brian McCall

On December 15, 2022, the California Air Resources Board (CARB) adopted its Final 2022 Scoping Plan for Achieving Carbon Neutrality (Final Scoping Plan). Assembly Bill (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 emissions (GHGs) to combat climate change. AB 32 originally set a target of reducing emissions to 1990 levels by 2020. After California met this goal, Senate Bill (SB) 32 strengthened the state’s GHG reduction target to at least 40% below 1990 levels by 2030. California committed to even greater targets this year with adoption of AB 1279, which directs the state to become carbon neutral no later than 2045.

The 2020 wildfire season alone released more carbon dioxide than what California reduced through years of emission cuts.

By Marc Campopiano and Joshua Bledsoe

California is a recognized leader in climate policy, but a wildfire crisis is threatening to unwind progress towards the state’s ambitious climate goals. In 2006, with the passage of AB 32, California set a then-unprecedented target of reducing the state’s greenhouse gas emissions (GHGs) to 1990 levels by the year 2020. Having achieved this goal, California dramatically upped the ante with the passage of SB 32, requiring a 40% reduction of GHGs, and again earlier this year with AB 1279, which requires the state to become carbon neutral by 2045 or earlier. Despite notable progress to date, a recent university study found that GHGs emitted from California’s 2020 wildfire season alone equated to more than double of all the GHG reductions the state achieved since 2003.[1]

The Final Report recommends five themes that financial institutions should incorporate into their net zero transition strategies.

By Paul A. Davies, Michael D. Green, and James Bee

On 1 November 2022, the Glasgow Financial Alliance for Net Zero (GFANZ) issued its Final Report on the Fundamentals, Recommendations, and Guidance for Financial Institution Net Zero Transition Plans (the Report). The Report sets out a framework for transition planning, identifying financing strategies for financial institutions to effectively transition to net zero, and makes recommendations for implementing these strategies.

California continues to push toward its statewide carbon-neutrality goals.

By Arthur F. Foerster and Joshua Bledsoe

On August 25, 2022, the California Air Resources Board (CARB) unanimously approved regulations that require all new 2035 and later passenger vehicles to be zero-emission vehicles. The agency’s “Advanced Clean Cars II” regulations require manufacturers to deliver an increasing percentage of zero-emission vehicles each year, starting with 35% of new vehicle sales for cars, pickup trucks, and SUVs in 2026, and ramping up each year to reach 100% new vehicle sales by 2035.[1]

Governor Newsom introduces five ambitious proposals that could alter California’s climate policy for years to come.

By JP Brisson, Nikki Buffa, Marc Campopiano, Jennifer Roy, Michael Dreibelbis, Aron Potash, and Alicia Robinson

On August 12, 2022, California Governor Gavin Newsom submitted five climate proposals (the Climate Proposals) to the California legislature in the waning days of California’s legislative cycle. In his statement following the transmittal, Newsom explained that “[w]e’re taking all of these major actions now in the most aggressive push on climate this state has ever seen because later is too late.”[1]

The system aims to stimulate innovation in GHG-reduction activities as part of the country’s 2030 Emissions Reduction Plan.

By JP Brisson, Michael Dreibelbis, and Alicia Robinson

On June 8, 2022, Canada launched the Greenhouse Gas (GHG) Offset Credit System (the System) to create a “market-based incentive to undertake innovative projects that reduce greenhouse gases.”[1] The System, which will be administered by Environment and Climate Change Canada (ECCC) and will apply across the country, represents a key element of Canada’s 2030 Emissions Reduction Plan to reduce GHG emissions to 40–45% below 2005 levels by 2030.

The decision will limit EPA’s options for future regulation of existing power plant GHG emissions and may have broader implications for other federal agency rulemakings.

By Stacey L. VanBelleghem, Karl A. Karg, and Malorie R. Medellin

On June 30, 2022, the US Supreme Court issued its long-awaited ruling in West Virginia v. EPA — the consolidated petitions addressing EPA’s authority to regulate existing power plant greenhouse gas (GHG) emissions under Section 111(d) of the Clean Air Act (CAA). In a 6-3 opinion drafted by Chief Justice Roberts, the Court ruled against EPA, holding that EPA’s attempt to force an overall shift in power generation from higher-emitting to lower-emitting sources exceeded EPA’s statutory authority. Indeed, the Court noted that such a sweeping transformation of the nation’s power sector implicated a “major question” requiring explicit congressional authorization, that the Court argued the CAA did not provide.

CARB addresses California’s increasingly severe climate impacts.

By Joshua T. Bledsoe and Kevin Homrighausen

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 32, the California Global Warming Solutions Act of 2006, 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 32 subsequently strengthened the state’s GHG emissions reductions target to at least 40% below 1990 levels by 2030.

Latham & Watkins’ 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. The second post discusses how the Cap-and-Trade Program features in the Draft Scoping Plan. The third post discussed 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. This fourth and final post describes how the Draft Scoping Plan responds to some of California’s most significant climate impacts, like wildfires, drought, and extreme heat.

CARB addresses California’s increasingly severe climate impacts.

By Joshua T. Bledsoe and Kevin Homrighausen

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 32, the California Global Warming Solutions Act of 2006, 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 32 subsequently strengthened the state’s GHG emissions reductions target to at least 40% below 1990 levels by 2030.

Latham & Watkins’ 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. The second post discusses how the Cap-and-Trade Program features in the Draft Scoping Plan. The third post discussed 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. This fourth and final post describes how the Draft Scoping Plan responds to some of California’s most significant climate impacts, like wildfires, drought, and extreme heat.

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]