ILTA Comments to the California Air Resource Board (CARB) on SB 253 and 261

California Air Resource Board:

The International Liquid Terminals Association (ILTA) appreciates the opportunity to provide comments on the California Air Resource Board’s (“CARB”) California Corporate Greenhouse Gas Reporting Program, and writes specifically in response to CARB’s implementation question(1)(d):

Should entities that sell energy, or other goods and services, into California through a separate market, like the energy imbalance market or extended day ahead market, be covered?

We write to strongly discourage CARB from including such entities under the definition of entities that “do[] business in California” as including them raises serious constitutional concerns. Specifically, a definition that included these entities would create significant Due Process concerns, as well as violate the Commerce Clause and notions of federalism by attempting to subject out-of-state entities to this law based on actions that have no or at best only a theoretical nexus to the State of California. CARB must adopt a reasonable definition of “doing business” in California in order to provide a clear and workable definition to regulated entities and to ensure its climate disclosure implementation rules are on sound legal footing.

Attached below is a copy of the full comments.