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California’s Cap-and-Trade Program Just Won a Major Legal Challenge

California’s four-year-old cap-and-trade program, which sets a cap on greenhouse gas emissions and incentivizes the state’s biggest polluters to lower emissions, has won a substantial legal battle. On Wednesday afternoon, the state’s Supreme Court rejected an appeal of a lower court’s ruling over a legal challenge from a group of businesses initiated four years ago. Back then the Chamber of Commerce sued, alleging that the state is imposing an illegal tax on businesses through the cap-and-trade program.
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