US suit against California’s cap-and-trade treaties can proceed, judge says

A federal judge in Sacramento has allowed the U.S. government to move forward with a lawsuit seeking to block California's cap-and-trade deals with the governments of Quebec and Ontario.

U.S. Senior Judge William B. Shubb ruled Wednesday the federal government had jurisdiction and valid claims over most of the named defendants in United State of America v. State of California, 2:19-cv-02142-WBS-EFB (E.D. Cal., filed Oct. 23, 2019).

The complaint filed by Assistant U.S. Attorney General Jeffrey Bossert Clark argued the state's deal with the Canadian provinces violated the federal government's right to "be able to speak with one voice on behalf of the United States in matters of foreign affairs." It cited the treaty and compact clauses of the U.S. Constitution.

The complaint, filed last October, named Gov. Gavin Newsom, California Air Resources Board Chair Mary Nichols and other state officials. It also named Western Climate Initiative Inc., the nonprofit corporation that manages the cap and trade program at issue.

In January, California's Attorney General filed a motion to dismiss, claiming the federal government lacked jurisdiction and failed to state a claim in relation to the Western Climate Initiative and several of the state officials.

Shubb dismissed two state officials -- former longtime Senate environmental consultant Kip Lipper and Assemblyman Richard Bloom, D-Santa Monica -- from the case. Each was appointed as a non-voting board member of the Western Climate Initiative. The rest of the case was allowed to proceed. The sides will meet in court March 9 on the federal government's motion for summary judgment.

In 2018, Shubb ruled in favor of the federal government by enjoining SB 50, a law that would have given the state the right of first refusal over federal land sales in California. United States v. State of California, 2:18-cv-00721-WBS-DB (E.D. Cal., filed 2, April 2018).

-- Malcolm Maclachlan