CAP Environmental Law & Regulations 2 — Questions and Answers
Question 1: Under the Clean Air Act, which regulatory mechanism specifically requires major stationary sources in non-attainment areas to install the most stringent emission controls?
- Best Available Control Technology (BACT)
- Lowest Achievable Emission Rate (LAER) (Correct answer)
- Reasonably Available Control Technology (RACT)
- Maximum Achievable Control Technology (MACT)
Correct answer: Lowest Achievable Emission Rate (LAER)
LAER applies in non-attainment areas and is more stringent than BACT, requiring the lowest emission rate achieved by similar sources regardless of cost.
Question 2: The Kyoto Protocol's Clean Development Mechanism (CDM) allows developed countries to meet emission targets by funding projects in which type of nations?
- Other developed (Annex I) countries
- Developing (non-Annex I) countries (Correct answer)
- Least Developed Countries only
- OECD member states
Correct answer: Developing (non-Annex I) countries
CDM enables Annex I countries to invest in emission-reduction projects in non-Annex I (developing) countries and claim the resulting credits.
Question 3: Which U.S. executive order first directed federal agencies to measure and reduce their greenhouse gas emissions and set sustainability goals?
- Executive Order 13423
- Executive Order 13514 (Correct answer)
- Executive Order 13693
- Executive Order 14008
Correct answer: Executive Order 13514
Executive Order 13514 (2009) set the first comprehensive GHG reduction targets for federal agencies, requiring them to report Scope 1, 2, and 3 emissions.
Question 4: Under California's Global Warming Solutions Act (AB 32), which agency is primarily responsible for implementing the state's cap-and-trade program?
- California Energy Commission
- California Air Resources Board (CARB) (Correct answer)
- California Environmental Protection Agency
- State Water Resources Control Board
Correct answer: California Air Resources Board (CARB)
CARB is designated as the lead agency under AB 32 and administers California's cap-and-trade program.
Question 5: The EU Emissions Trading System (EU ETS) Phase IV (2021–2030) introduced the Innovation Fund, which is primarily financed through revenues from auctioning how many allowances?
- 100 million
- 250 million
- 400 million (Correct answer)
- 550 million
Correct answer: 400 million
The Innovation Fund is financed by auctioning approximately 400 million EU ETS allowances over 2020–2030 to support low-carbon technology deployment.
Question 6: Under U.S. SEC climate disclosure rules, which Scope of GHG emissions must be disclosed only if material or if targets include them?
- Scope 1 only
- Scope 2 only
- Scope 3 (Correct answer)
- All Scopes equally
Correct answer: Scope 3
The SEC's 2024 climate disclosure rule requires Scope 3 disclosure only when material or included in the company's climate targets, unlike Scope 1 and 2 which are mandatory.
Question 7: The Montreal Protocol's Kigali Amendment, which entered into force in 2019, targets the phasedown of which substances relevant to climate change?
- Carbon dioxide (CO₂)
- Hydrofluorocarbons (HFCs) (Correct answer)
- Perfluorocarbons (PFCs)
- Sulfur hexafluoride (SF₆)
Correct answer: Hydrofluorocarbons (HFCs)
The Kigali Amendment extended the Montreal Protocol to cover HFCs, potent greenhouse gases used as refrigerants that replaced ozone-depleting substances.
CAP Environmental Law & Regulations 2
Under the Clean Air Act, which regulatory mechanism specifically requires major stationary sources in non-attainment areas to install the most stringent emission controls?