Renewable fuels groups to keep opposing California's fuel standards

24 January 2012 21:56  [Source: ICIS news]

HOUSTON (ICIS)--US renewable fuels groups said on Tuesday they will continue to oppose the California Air Resources Board's (CARB) efforts to reinstate a low-carbon fuel standard (LCFS), after a court denied the state agency’s motion to stay a decision issued in December.

On 29 December 2011, Judge Lawrence O’Neill of the Eastern District of California said the LCFS violates the commerce clause of the US Constitution because it regulated out-of-state farmers and ethanol producers. The commerce clause forbids the regulation of out-of-state goods.

On 20 January, CARB filed papers asking the 9th Circuit Federal Court of Appeals to reverse its decision and allow the state to continue implementing the LCFS in 2012. 

Judge O'Neill ruled on Monday that CARB "improperly seeks to re-litigate issues this court resolved in its order granting the preliminary injunction and orders on the summary judgment motions.”

O’Neill added that CARB sought not to preserve the "status quo" but rather to "allow enforcement that imposes higher restrictions that had been imposed previously" without citing any authority to show why the court would have jurisdiction to grant that type of relief.

"Judge O'Neill's decision demonstrates the strength of our claims against the LCFS," said Renewable Fuels Association chief executive Bob Dinneen and Growth Energy chief executive Tom Buis in a joint statement. "The California LCFS seeks to regulate conduct outside its borders and is blatantly discriminatory and unconstitutional.”

($1 = €0.77)

For more on renewable fuels go to ICIS chemical intelligence

By: Brian Balboa
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