Calif. Cap-And-Trade Auction Is Illegal Tax, Trade Groups Say

Law360, San Diego (April 16, 2013, 9:17 PM EDT) -- A group of businesses and trade associations on Tuesday sued the state of California over its cap-and-trade system for reducing greenhouse gas emissions, claiming the regulation creating the quarterly auction program is an unconstitutional state tax.

Attorneys at conservative legal group the Pacific Legal Foundation filed suit in Sacramento County Superior Court on behalf of Merit Oil Co., the California Construction Trucking Association, Morning Star Packing Co. and others, alleging the California Air Resources Board’s regulation for the cap-and-trade auction constituted an improper tax because it...
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