Manatt Professional Comments on Chamber of Commerce's Issues with CARB

"Chamber Sues to Void State's Greenhouse Gas Auction"
The Recorder

November 13, 2012 - Manatt's Jon Costantino, a senior advisor in the firm's Climate Change, Environmental and Clean Energy Policy Practice, spoke to The Recorder about the allegations in a lawsuit that the California Chamber of Commerce filed against the California Air Resources Board.

The Recorder reports that the California Chamber of Commerce sued on November 13 to invalidate the results of the state's first-ever auction of greenhouse gas emissions allowances scheduled for the following day. The complaint alleges that the California Air Resources Board has no authority to keep and sell the allowances. It also argues that the regulations are unconstitutional because they effectively impose a tax that was not approved by a two-thirds vote of the Legislature.

" . . When I've served on panels and the question of possible legal challenges came up, this one (the tax issue) is always at the top of the list," said Costantino.