FIRST-TIME CALIFORNIA CLIMATE RULE TO FACE INDUSTRY CHALLENGE

California air regulators have released a sure-to-be-litigated proposal for the nation's first regulation controlling greenhouse gas emissions from vehicles, estimating the requirements would add $292 to the cost of cars and $308 to light trucks during the first phase of the rule, which would begin in 2009. The auto industry has already threatened to file a lawsuit claiming the state exceeded its authority in developing the standards, and sources say lawyers are going through the 1,000-page proposal and accompanying report...