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Around the country, in blue states and red, policymakers are engaging in climate action planning, guided by a far-seeing Inflation Reduction Act funding program — the Carbon Pollution Reduction Grant (CPRG) program — which has devoted $250 million to state, metropolitan, and Tribal planning efforts. A new report from the Center for Progressive Reform, Environmental Justice in State Climate Planning: Learning from California, offers critical insights to help policymakers and advocates working on these plans translate climate goals into action and advance environmental justice.

States like California face sobering budget shortfalls, and their governors and legislatures are grappling with how and where to make cuts. These debates cast a spotlight on the critical importance of state budgets to an equitable clean energy future.

The bad news is that we’re not yet on track to avoid dangerous climate change. But there’s also good news: We’ve taken important steps that will ease further progress. We should resist the allure of easy optimism, given the scale of the challenges. Neither should we wallow in despair. There’s a good basis for hope.

State climate policy is a big deal. State governments began cutting emissions at a time when the federal government was essentially doing nothing about climate change. Since then, more states have become involved, and state policies have become more aggressive. It’s not for nothing that 2023 was called a banner year for state climate action. The state developments in just the second half of the year make up an impressive list. Part I of this post covers state climate action from California to Michigan.

A recent Commonwealth Court of Pennsylvania decision has thrown Pennsylvania’s actions on climate change into further disarray. In 2021, through regulatory action by its Department of Environmental Protection, Pennsylvania became a member of the Regional Greenhouse Gas Initiative (RGGI). RGGI is a collection of Northeastern and Mid-Atlantic states that have agreed to cap emissions of carbon dioxide (CO2) from electric power plants with 25 megawatts or more of generating capacity. The cap includes an overall regional limit and a cap for each state. Power plants must purchase allowances or offset their emissions (or pursue other options noted below) to collectively meet the state cap. But lawsuits have challenged Pennsylvania’s entry into RGGI, and on November 1, a memorandum opinion of the Commonwealth Court declared that Pennsylvania’s scheme for auctioning CO2 allowances under the state’s RGGI cap was an unconstitutional tax. The court voided the rulemaking.

On November 15, I joined Member Scholar and University of San Francisco School of Law professor Alice Kaswan in releasing an in-depth analysis of California’s climate and clean energy funding programs for the state’s historically marginalized and underserved communities. The set of reports and fact sheets, "Funding a Clean and Equitable Energy Transition: Lessons from California," follows the recent publication of the Center’s California Climate Justice Index, which details the laws, executive orders, agencies, funding processes, and funding programs that shape climate policy for the nation’s most populous state.

This week, the D.C. Circuit hears three cases challenging the use of federal regulations to push adoption of electric vehicles and to allow California to forge a path toward zero-emission cars. If all three cases go badly, the regulatory system would be disabled from playing a role in this area. This would be a huge setback, though there are reasons to think that it would only delay, rather than prevent, the transition to clean cars.

Nero fiddled, and I really don’t know how white powder made its way into the White House. But I do know that the California Supreme Court just issued an opinion in Kuciemba v. Victory Woodworks that will be incredibly hurtful to the working class during the next pandemic. I wonder how the California legislature will react.

Although the U.S. Constitution does not say so directly, the U.S. Supreme Court has said there are implied limits on state regulations that interfere with interstate commerce. This is known as the dormant commerce clause doctrine. State clean energy laws have been bedeviled by challenges based on this doctrine. The Supreme Court has just made it easier for states to fend off those claims.