The California State Supreme Court declined on Wednesday to hear a challenge from business groups on the legality of the State’s Cap-and-Trade auction program. The California Chamber of Commerce has led the way on the legal challenge of the program as a de facto, unconstitutional tax on industries required to participate in the auction, but the State’s highest court denied review of an earlier Court of Appeal decision that upheld the program.
Amid the legal challenges, Governor Brown has continued to work toward an extension of the program beyond its current 2020 sunset, and has refused to allocate any auction proceeds to carbon emissions reductions programs until an extension of the program is negotiated and approved by the Legislature by a two-thirds vote. The extension is expected within the next few weeks.