The Fate Of Calif.'s LCFS Under The Commerce Clause
May 25, 2012, 1:39 PM EDT
Law360, New York (May 25, 2012, 1:39 PM EDT) -- California’s Global Warming Solutions Act of 2006 (AB 32) is part of a comprehensive and innovative program to reduce greenhouse gases (GHGs) in California. Two of its most important components are the market-based cap-and-trade emissions trading program and the low carbon fuel standard (LCFS), which regulates the carbon content in fuels.
One of the primary policy objectives of AB 32 is to reduce “leakage.” Leakage, by definition, is the shifting of GHG-producing sources within California to outside the state to avoid California GHG regulation.