Ag Policy Blog
Chris Clayton DTN Ag Policy Editor

Thursday 03/20/14

California, Ethanol and Eggs

Todd Neeley wrote a small piece Thursday about ethanol groups taking a lawsuit against California to the U.S. Supreme Court.

I felt like I had just read this article and it turns out I had, but with a different lawsuit and another industry.

The ethanol groups suing for market access to California for corn-based ethanol argue the state's low-carbon fuel standard violates the Interstate Commerce Clause of the U.S. Constitution.

"California, through adoption of the LCFS, has violated the most basic, structural features of interstate federalism," the ethanol groups said in a statement released Thursday.

"LCFS not only discriminates against out-of-state commerce, but it seeks to regulate conduct in other states in direct contravention of our constitutional structure and at the direct expense of Midwestern farmers and ethanol producers."

The arguments are comparable to those made by six states attorneys general earlier that filed a lawsuit over California's egg law. Much like ethanol, California plans to restrict the sale of eggs shipped into the state those producers who meet the same hen housing requirements as California.

"This law is an unwarranted burden being imposed on Iowa’s producers by another state and violates the interstate commerce clause of the United States Constitution," said Iowa Gov. Terry Branstad in announcing his state joining the lawsuit.

Iowa has a lot at stake in both cases as both the nation's top state for both ethanol production and eggs.

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Posted at 7:49PM CDT 03/20/14 by Chris Clayton
Comments (4)
California - land of smog, mud-slides, fires, drought, bankruptcy and worst of all political correctness. Makes me think about nuts rolling down hill.
Posted by Curt Zingula at 7:05AM CDT 03/21/14
So states' rights matter sometimes, but not all the time? Those on "the right" can't have it both ways, can they?
Posted by John-Mark Hack at 8:27AM CDT 03/21/14
John Those on "the left" can't determine other states rights although the are sure they know what those rights should be.
Posted by CRAIG MOORE at 8:49AM CDT 03/21/14
People should inform themselves about the LCFS and CA Air Resources Board. The truth is, these programs will probably enhance the use of renewable fuels in California. Recent changes in how the state views indirect land use change related to biofuel crops will greatly increase the use of soy biodiesel in the state--it could soon be 20% or more of all diesel fuel sold in the state--a huge amount. The outcome of this rule is likely to trickle across as other states follow the state�s lead on carbon mitigation. March 12 Quote from from National Biodiesel Board: �We applaud the Air Resources Board for recognizing the need to reduce carbon from transportation and fossil fuels to mitigate climate change,� said Don Scott, National Biodiesel Board Director of Sustainability. �Since America�s Advanced Biofuel, biodiesel, is among the most effective tools for carbon reduction this represents a major step forward. We are hopeful the agency will continue on this path to use the best science to quantify the benefits of biodiesel.�
Posted by chris jones at 10:20AM CDT 03/21/14
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