Judge Blocks California From Enforcing Low-Carbon Fuel Standard

The judge wrote that the regulations showed prejudice against biofuel and crude oil producers that are not in California.

January 04, 2012

FRESNO, Calif. - A U.S. District Court judge ruled last week that California??s global warming law gives preferential treatment to biofuels produced in the state, the Associated Press reports. A coalition of groups, including the Consumer Energy Alliance and the National Petrochemical & Refiners Association, had filed the lawsuit in federal court in 2010 contesting the 2006 state regulations for low-carbon fuel standards.

U.S. District Court Judge Lawrence O'Neill wrote that the regulations showed prejudice against biofuel and crude oil producers not in California, which went against the U.S. Constitution??s commerce clause. The fuel rule "discriminates against out-of-state and foreign crude oil while giving an economic advantage to in-state crude oil," the judge said in his decision.

The California Environmental Protection Agency Air Resources Board will ask the judge to issue a stay on the ruling and will likely appeal to the 9th U.S. Circuit Court of Appeals, said Dave Clegern, spokesman. The mandate is "an evenhanded standard that encourages the use of cleaner low carbon fuels by regulating fuel-providers in California," said Clegern. It "does not discriminate against any fuels on the basis of geography."

The court "decision ... struck down a misguided policy that would have resulted in even higher fuel costs for Californian consumers while increasing the cost of business throughout the state," said Michael Whatley, executive vice president for Consumer Energy Alliance.

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