Opponents of California’s low carbon fuel standard (LCFS) were dealt a setback on Wednesday as a federal appeals court refused to rehear last year’s decision to uphold the law. The LCFS, which was struck down by the state in 2011 after a lawsuit by out-of-state producers, requires life-cycle fuel emission reductions. The majority opinion in today’s decision affirmed the state’s right to regulate in-state commerce.
It remains to be seen whether the plaintiffs will take the case to the Supreme Court. Among them is the American Fuel & Petrochemical Manufacturers (AFPM), which vowed to evaluate further legal options and concurred with the dissenting judges’ view that the LCFS is inconsistent with precedents set by the high court.
“The broad reach and intended scope of the California LCFS mean that the Ninth Circuit’s decision will have adverse consequences throughout the nation’s fuel supply chain far beyond California’s borders, and ultimately a negative impact on consumers,” Richard Moskowitz, general counsel at AFPM, said in a statement on the decision.
