In the race against climate change, California has emerged as a frontrunner, setting the pace with ambitious climate regulations. But what makes California’s approach so noteworthy, and how might it shape the future of climate policy across the nation? We’re excited to have Jonathan Storper, a partner at Hanson Bridgett LLP and a pioneer in sustainable law practices, provide legal guidance on California’s climate regulations and their potential impact on businesses nationwide in this guest post.
In this two-part series, Jonathan will delve into California’s leadership in climate regulation and its ripple effects across the country.
Meet Jonathan Storper: A champion for sustainable business
As the founder and leader of Hanson Bridgett’s sustainable law practice, I’ve been at the forefront of developing legal frameworks that support a more sustainable economy. Our practice focuses on assisting mission-driven companies and high-impact investors in a variety of industries, aiming to foster a more sustainable economic landscape. As the first law firm recognized as a certified B Corp, we are committed to the communities where our employees live and work and consider it part of our professional obligation to serve justice by encouraging and supporting pro bono and social impact work.
Beyond the courtroom, I chaired the legal working group that drafted and advocated for benefit corporation legislation in California, a move that created a new class of for-profit corporations required to create a material positive impact on society and the environment.
Additionally, I was selected as the California Lawyer Attorney of the Year for my work on benefit corporation legislation, which has now been adopted in 36 states and several foreign countries. Under my guidance, Hanson Bridgett became the first law firm to become a certified B corporation, further cementing its commitment to using business as a force for good. Many of my conversations with clients provide legal guidance on California climate regulations, so let’s dive in.
The California effect: Setting the standard for climate regulation
When it comes to climate regulation, California isn’t just leading the pack—it’s reshaping the playing field. The state’s recent climate bills, including AB 1305, SB 253, and SB 261, are poised to set new standards for emissions reporting and climate risk disclosure.
California legislation and case law precedent by our state supreme court often serves as a model for other states and to some extent the federal government. Scholars have dubbed this phenomenon “The California Effect.” This isn’t a new trend; we’ve seen it play out in various sectors, from auto emissions standards in the 1970s to more recent privacy laws.
The California Air Resources Board: A powerful force for change
At the heart of California’s climate regulation efforts is the California Air Resources Board (CARB). This agency plays a crucial role in setting standards that other states might adopt.
CARB has a unique position: it has a waiver from the US EPA which allows it to issue regulations on air quality and related matters. Because California is so large, its regulations ultimately influence industries nationwide that are regulated.
With the new climate emissions law (SB 253), CARB’s role is set to expand even further. The agency will be responsible for developing and adopting regulations requiring large corporations doing business in California to disclose their greenhouse gas (GhG) emissions. This move is likely to have far-reaching implications, as other states will be watching closely to see how CARB implements these regulations.
Lessons for other states and regulatory bodies
California’s approach to climate regulation offers valuable lessons for other states and regulatory bodies. Beyond legal guidance on California climate laws, here are several key practical takeaways:
- Comprehensive legislative framework: California’s Global Warming Solutions Act of 2006 sets ambitious targets and establishes a cap-and-trade system, providing a model for market-based compliance.
- Science-based decision-making: The state emphasizes using the best available science and economic models to inform policy decisions.
- Inter-agency coordination: CARB’s authority to consult with other state agencies and engage with the public ensures a comprehensive approach to climate regulation.
- Focus on adaptation and resilience: California integrates climate adaptation strategies into its policies, considering impacts on various sectors.
- Leadership by example: By setting ambitious targets and implementing comprehensive regulations, California encourages other states and countries to follow suit.
Hopefully, other states and regulatory bodies can learn from California’s legislative framework, the role of regulatory bodies like CARB, the integration of adaptation and resilience into climate policies, and the broader influence of California’s leadership in climate regulation.
The business impact: What’s next for companies?
California’s climate regulations are more than just local policy—they’re a blueprint for nationwide change. As businesses and policymakers across the country grapple with the challenges of climate change, many eyes are on the Golden State.
In part two of our series, we’ll explore the practical implications of these regulations for businesses. How can companies prepare for and benefit from the shift towards greater sustainability? What legal considerations should businesses keep in mind as they navigate these new regulatory waters? Stay tuned as we dive into these crucial questions and more in our next installment.
If you want to get in touch with Jonathan directly, reach out here: [email protected] or (415) 995-5040.
