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March 28, 2014

Industry Urges Review Of California Low Carbon Fuel Standard


On March 20, 2014, Growth Energy and the Renewable Fuels Association (RFA), which represent the ethanol industry, and the American Fuel and Petrochemical Manufacturers (AFPM), along with the American Trucking Association and the Consumer Energy Alliance, filed petitions for writ of certiorari with the U.S. Supreme Court to make a final determination on the constitutionality of the California Low Carbon Fuel Standard (LCFS).

The groups are challenging the January 2014 decision of the U.S. Court of Appeals for the Ninth Circuit (the Ninth Circuit) to deny rehearing en banc in Rocky Mountain Farmer's Union v. Corey. On September 18, 2013, the Ninth Circuit issued its opinion in Rocky Mountain Farmer's Union v. Corey reversing a lower court opinion which found that the LCFS violated the dormant Commerce Clause of the U.S. Constitution by discriminating against ethanol produced outside of California. The LCFS assigns higher carbon intensity values to ethanol produced in the Midwest than in California. The press releases of Growth Energy and RFA (joint) and AFPM are available here and here.

One of the goals of the LCFS is to reduce the carbon content of transportation fuel by ten percent by 2020. It is significant to the biofuels industry, especially since several other states are considering similar programs and look to California's LCFS as an example.