Argus reported that a California state judge has called for a delay in the implementation of California's greenhouse gas cap and trade program.

As per report, San Francisco Superior Court judge Mr Ernest Goldsmith issued a final court order in a lawsuit that alleges that the state's environmental analysis of the trading program was inadequate. Goldsmith said the California Air Resources Board cannot move ahead with its cap and trade program until it has issued an environmental analysis covering alternatives and defending its decision not to pursue other greenhouse gas reduction mechanisms.

The suit was brought by a coalition of environmental justice groups that believe cap and trade would not be as protective of human health as direct regulation, such as a carbon tax.

Mr Goldsmith wrote that "ARB committed a prejudicial abuse of discretion when it failed to proceed in a manner required by law by inadequately describing and analyzing project alternatives sufficient for informed decision making and public participation."

But Mr Goldsmith denied the environmental justice advocacy's groups call to entirely overturn the board's scoping plan for meeting the reduction goals of AB 32. The agency can move ahead with other programs such as its low carbon fuel standard and light duty vehicle efficiency standards. But ARB intends to use the trading program to achieve a large chunk of the greenhouse gas reductions called for under the state's landmark climate law.

Mr Goldsmith in January 2011 issued a preliminary ruling in the case, after which the market for offsets issued by the Climate Action Reserve and forward trades for California issued allowances largely dried up. The undefined delay is likely to constrain the market further.

Mr Goldsmith said that the board must submit a peremptory writ of mandate on its proceedings within 15 months. Mr Goldsmith's court will maintain jurisdiction over the case until the environmental analysis and public participation process is brought into compliance with California's Environmental Quality Act.

But the board has repeatedly said it will appeal the case and seek to get the order's effect stayed until the case is decided. A stay on Goldsmith's order would allow the agency to move forward with the public rulemaking process and develop details of the cap and trade program.

According to Stanley Young spokesman at ARB, the agency is already working to expand and improve the environmental analysis the judge found to be inadequate staff. Although the agency will not release the new analysis before it knows the full extent of the court's objections, its early work could help speed the process.

(Sourced from www.argusmedia.com)