SCOTUS Declines LCFS Ruling Review

STREATOR, Ill. (DTN) -- The U.S. Supreme Court said Monday it will not hear a challenge to California's Low Carbon Fuel Standard. The ethanol and oil refining industries have challenged the legal standing of the LCFS.

The LCFS, a regulation with the goal to reduce the carbon intensity of fuels sold in California 10% by 2020, is one of the measures adopted by the California Air Resources Board to reduce greenhouse gases in the state.

"It is designed to help clean the air, protect the environment, and drive the development of clean, low-carbon fuels to improve California's energy security and energy independence," CARB said in its regulations. CARB oversees all air pollution control efforts in California.

In 2011, the Eastern District of California found the LCFS violated the dormant commerce clause of the U.S. Constitution by discriminating against out-of-state ethanol. California appealed the district court's decision to the U.S. Ninth Circuit of Appeals.

In response to the Supreme Court announcement Monday, the Renewable Fuels Association and Growth Energy, two ethanol industry trade groups expressed their disappointment in a joint statement.

"We are extremely disappointed that the Supreme Court has declined to review the Ninth Circuit's decision, despite the broad support for the petition -- including 21 states," the ethanol groups said.

"We will continue our efforts to protect the American biofuel industry and the national interest and will continue to ensure that all consumers have access to low-priced, American-made biofuels."

In a filing with the Supreme Court late last month, California Attorney General Kamala Harris agued claims by ethanol producers and the American Fuel and Petrochemical Manufacturers that the LCFS discriminates against fuels made out of state are not valid.

(BM/AG)

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