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Low Carbon Fuels Standard Approved in California

The state of California's Office of Administrative Law has approved the Low Carbon Fuels Standard for implementation. Bob Dinneen, president of the Renewable Fuels Association, says that serious and substantial concerns remain about the methodology and motives of Air Resources Board staff in drafting this standard. According to Dinneen, ARB failed to fulfill its statutory obligations under California law.

Dinneen says in more than one instance, ARB staff failed to fully and appropriately address the valid concerns and comments provided by stakeholders, including the RFA. These failures are in direct violation of California statute and should have prompted California's OAL to reject the standard.

"Pursuing this strategy runs counter to the stated goals of Governor Schwarzenegger and the State Assembly to reduce carbon emissions from motor vehicles," said Renewable Fuels Association President Bob Dinneen. "As crafted, the LCFS would virtually eliminate domestic ethanol,the only viable low-carbon alternative to gasoline, from the California marketplace in favor of imported ethanol and futuristic fuel technologies such as hydrogen and the electric car."

Dinneen says that the decision has left the industry no choice but legal action to prevent this unfair action from moving forward. The RFA, Growth Energy, and others have filed suit in federal district court in Fresno, Calif., challenging the LCFS on the grounds it violates both the Supremacy and Commerce Clause of the U.S. Constitution.