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1. CLIMATE:

Judge rejects lawsuit on Calif. offsets

A state judge has rejected a challenge to California's carbon offsets program, ruling that regulators have the authority to include the mechanism in their landmark cap-and-trade program for greenhouse gases. Two environmental groups sued the state last year, alleging that California's system for approving offset projects would allow companies to get credit for emissions reductions that would have occurred regardless of the extra incentives, a concept known as "additionality."

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