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California Agency to Appeal Decision Halting Cap-And-Trade

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May 20 (Bloomberg) -- The California Air Resources Board will appeal a court ruling that suspends work on a cap-and-trade program to cut greenhouse gases, the agency said.

The notice of appeal will be filed May 23, Stanley Young, a spokesman for the agency, said in an e-mail today.

Superior Court Judge Ernest Goldsmith in San Francisco today ordered the board to halt further rulemaking or implementation of the program until alternatives are properly reviewed.

The board violated the “informational requirements” of the California Environmental Quality Act when it began to make rules “without first responding to comments, completing the environmental review process, and approving” the program, Goldsmith said in the ruling.

The decision is the latest development in a 2009 lawsuit filed against the board by a coalition that includes Communities for a Better Environment and the Association of Irritated Residents. Today’s judgment follows a March 18 ruling in which the court also said the board failed to adequately consider alternatives to the program to buy and sell pollution permits, such as a carbon tax.

To contact the reporter on this story: Andrew Herndon in San Francisco at aherndon2@bloomberg.net; Simon Lomax in Washington at slomax@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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