On the eve of the first auction for carbon-emission permits in
California, the state's Chamber of Commerce filed a lawsuit that slams
the plan as a "money grab."
By auctioning carbon allowances to entities responsible for the majority of the state's pollution, the California Air Resources Board has created an unconstitutional tax, according to the complaint filed Tuesday in superior court.
"This action brought by an unelected state board to use regulatory statutes to raise tens of billions dollars from taxpayers is unprecedented in our state's history," the powerful business lobby claims. "Even the elected and democratically accountable Legislature and governors of California have never imposed such a massive tax/fee.
"What is shocking about this money grab, in addition to the fact it exceeds the authority granted to the regulatory agency by the Legislature, is the agency's admission that this revenue-raising component of its regulations is unnecessary to achieve the purposes of the regulatory scheme."
The agency's cap-and-trade method of reducing greenhouse gas emissions was enacted by AB 32. Signed by the governor in 2006, this law allows the board to cap the amount greenhouse gases that can be emitted every year by individual polluters.
This law does not, however, allow the board to hoard a portion of the emission allowances so that it can sell them to the highest bidder at an auction scheduled for Nov. 14, the Chamber of Commerce insists.
Read more: http://www.courthousenews.com/2012/11/14/52261.htm
By auctioning carbon allowances to entities responsible for the majority of the state's pollution, the California Air Resources Board has created an unconstitutional tax, according to the complaint filed Tuesday in superior court.
"This action brought by an unelected state board to use regulatory statutes to raise tens of billions dollars from taxpayers is unprecedented in our state's history," the powerful business lobby claims. "Even the elected and democratically accountable Legislature and governors of California have never imposed such a massive tax/fee.
"What is shocking about this money grab, in addition to the fact it exceeds the authority granted to the regulatory agency by the Legislature, is the agency's admission that this revenue-raising component of its regulations is unnecessary to achieve the purposes of the regulatory scheme."
The agency's cap-and-trade method of reducing greenhouse gas emissions was enacted by AB 32. Signed by the governor in 2006, this law allows the board to cap the amount greenhouse gases that can be emitted every year by individual polluters.
This law does not, however, allow the board to hoard a portion of the emission allowances so that it can sell them to the highest bidder at an auction scheduled for Nov. 14, the Chamber of Commerce insists.
Read more: http://www.courthousenews.com/2012/11/14/52261.htm
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