The federal district court for the Eastern District of California ruled that California’s cap-and-trade program for greenhouse gas emissions was not preempted under the Foreign Affairs Doctrine. First, the court found that the United States failed to identify “a clear and express foreign policy that directly conflicts” with the cap-and-trade program. Second, although the court found that California’s regulations and an agreement linking its cap-and-trade program with Quebec’s program had a “broad purpose” that extends beyond the area of traditional state responsibility, the court concluded that the U.S. failed to show that the cap-and-trade program impermissibly intrudes on the federal government’s foreign affairs power. The court therefore granted the defendants’ motions for summary judgment on the Foreign Affairs Doctrine claim. Since the U.S.’s other claims under the Treaty and Compact Clauses had already been dismissed, the court entered judgment in favor of the defendants.

Federal government's lawsuit challenging California's greenhouse gas emissions cap-and-trade agreement with the
provincial government of Quebec, Canada.

United States v. California

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Federal Court Rejected U.S.’s Remaining Claim in Challenge to California’s Cap-and-Trade Program

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

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A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

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Area of the economy in which actors engage in identical or related activities.

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Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

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A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Air pollution involves harmful contaminants in the air, affecting both indoor and outdoor environments. It can lead to health issues like respiratory diseases and heart problems, and climate impacts such as global warming. Pollutants can damage plants, trees, habitats, and water bodies like rivers and lakes.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

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This sector involves the wholesale and retail selling of goods.

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Federal Court Rejected U.S.’s Remaining Claim in Challenge to California’s Cap-and-Trade Program

Policy instrument

Risk

Impacted group

Fossil fuel

Greenhouse gas

Economic sector