Supreme Court declines to review California’s low-carbon fuel standard
The court let stand a federal appeals court ruling that rejected claims the standard was unfair to Midwest ethanol producers and amounted to an illegal regulation of business outside California.
By LAURIE ASSEO
The US Supreme Court sidestepped a dispute over whether
Californias low-carbon fuel standard discriminates
against out-of-state ethanol producers.
The court let stand a federal appeals court ruling that
rejected claims the standard was unfair to Midwest ethanol
producers and amounted to
an illegal regulation of business outside California.
The standard is intended to reduce greenhouse gases linked to
climate change by encouraging use of low-carbon
fuels such as ethanol
, natural gas and
biodiesels. Companies that sell transportation fuel in
California are required to reduce their so-called carbon
intensity by 10% by 2020.
They can buy and sell credits to meet the standard.
Fuels are assigned so-called carbon-intensity ratings based
that will be caused by
their production, distribution and use in a vehicle. Ethanol
produced in the Midwest is
given a higher number than identical fuel produced in
California because the transportation and processing creates
more emissions, state officials say.
The fuel standard also discourages refiners such as Chevron
and Tesoro from processing types of crude that release more
when produced and
transported into the state, such as output from Canadas
Farm and oil-industry groups sued in 2011 to overturn the
standard. A San Francisco-based appeals court in September
2013 refused to block use of the rule and returned the case
to a lower court to consider other arguments by the groups
The California Air Resources Board, which monitors air
quality and administers the standard, told the Supreme Court
that the standard has been revised since 2011.