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The article reports on a lawsuit filed by California and other states on January 2, 2008 to reverse U.S. Environmental Protection Agency's decision on December 19, 2007. The EPA reporteldy denied the request of California and other states for a Clean Air Act preemption waiver on greenhouse gas (GHG) emissions. Arguments for and against the EPA decision are offered.

The article reports on the decision of the U.S. Environmental Protection Agency (EPA) to deny the request of California for a Clean Air Act waiver. The waiver would have allowed the state to enforce its regulations to control greenhouse gas emissions from motor vehicles. EPA administrator Stephen L. Johnson said the administration will focus on implementing new fuel economy standard included in energy legislation.

The article reports on California Governor Arnold Schwarzenegger's call for a state greenhouse gas emissions trading scheme which is compatible with the European Union's (EU) program. According to Linda Adams, secretary of the California Environmental Protection Agency, the governor asked them to design a market that can be linked to the emissions market of EU as well as other trading programs. The state of California wants the proposed trading scheme to be a model for the rest of the U.S., adds Adams.