Dozens of area farmers gathered in Durham to learn about a legal challenge filed against the state over the Global Warming Solutions Act.
At issue is the California Air Resource Board's plan for a cap and trade system under AB 32.
The plan creates limits on the amount of green house gas emissions during a given year.
The board then allots credits for about half of that amount to large businesses and auctions the other half off to the highest bidder.
The system is meant to increase investment in clean technology, but attorneys with the Pacific Legal Foundation say the auctions are unconstitutional because they were not approved by a two thirds vote in the state legislature.
"What we've asked the court to do is set aside those auctions and what that would do is requiring the air board to find a legal way to distribute those allowances," Pacific Legal Foundation attorney Tony Francois said.
The case is expected to be heard in Sacramento County court next month with a decision expected by the end of the year.
Attorneys for the foundation say they expect the case to go to an appeals court following that decision.