After months of CEQA litigation and political lobbying, including an appeal to the California Supreme Court (previous article can be found here), California's landmark climate change bill, the Global Warming Solutions Act of 2006 ("AB 32"), has been modified and appears ready to be implemented starting in January 2012.

As reported in prior blogs (which describe the mechanics of cap-and-trade in more detail), on July 25, 2011 the California Air Resources Board ("ARB") issued modifications to the cap-and-trade program, the primary greenhouse gas ("GHG") emission reduction strategy for achieving AB 32's mandate of cutting emissions to 1990 levels by 2020. The public comment period for these modifications ended August 11, 2011. On September 12, 2011, ARB staff proposed additional modifications addressing public comments and reflecting as additional staff analysis and stakeholder engagement. The public comment period for the second round of modifications ended September 27, 2011.