2008 was a landmark year for climate change initiatives in California.  Despite an economic downturn, the California Air Resources Board (CARB) approved an ambitious plan to slash greenhouse gas emissions to 1990 levels by 2020.  This plan, once implemented, will affect every sector in California.  The State Legislature also approved a pioneering bill to encourage “smart growth” regional land use planning.  In addition, Governor Schwarzenegger pushed for increased use of renewable energy and forged new relationships with leaders throughout the world to tackle climate change issues.  Not to be outdone, local agencies adopted measures to, among other things, incentivize the use of solar electricity and reduce emissions from California’s ports.

Looking forward to 2009, California regulators will be busy implementing many of the broad initiatives from 2008; within the next year, CARB must adopt enforceable regulations to implement its “discrete early action” measures to reduce greenhouse gas emissions.  CARB will also begin the rulemaking process to implement other measures set forth in its scoping plan.  Given the deepening economic crisis and criticisms surrounding its prior economic analysis, CARB will most certainly conduct further studies regarding the short and long term costs and benefits of its plan to reduce greenhouse gas emissions.  In addition, in collaboration with the Western Climate Initiative, CARB will fill in many of the gaps regarding how it plans to implement a cap-and-trade program covering 85 percent of the state’s emissions.

California planners can also look forward to receiving additional guidance in 2009 regarding the intersection between climate change and environmental review responsibilities.  By July 1, 2009, the Governor’s Office of Planning and Research must prepare guidelines for the evaluation of greenhouse gas emissions under the California Environmental Quality Act (CEQA).  Notably, as California’s economic woes increase, there will likely be increased pressure to exempt certain job-generating projects from CEQA review in order to speed their approval.  Notably, late last month, Governor Schwarzenegger vetoed a much needed tax package in part because he wanted to exempt additional “shovel-ready” projects from CEQA review.  With the economic downturn, the open question for 2009 appears to be whether policy makers and regulators will delay many of the impressive climate change initiatives of 2008.

For further information about this topic, please contact Akin Gump.