California’s Superior Court may have delayed the state’s cap-and-trade implementation by ruling in favour of a lawsuit filed by environmental justice advocates. 

The suit alleges that California’s Air Resources Board (CARB) did not sufficiently research alternatives to cap-and-trade in developing its greenhouse gas reduction strategy. The court’s decision does not contest CARB’s ultimate authority to regulate GHGs. CARB is expected to appeal the ruling.

Before the court’s final statement was announced, CARB chairwoman Mary Nichols said “the lawsuit is not a factor in terms of delay. It’s just part of what you have to go through to implement a program.” However, CARB is required to finalize the draft cap-and-trade regulations before Nov. 2011. If this decision delays the finalization, CARB may be unable to meet its Jan. 2012 program start.