The California Low Carbon Fuel Standard (LCFS) faces strong opposition after the National Petrochemical & Refiners Association (NPRA) filed a legal challenge to the US District Court.
The NPRA was joined by the American Trucking Associations (ATA), the Centre for North American Energy Security, and the Consumer Energy Alliance in the suit.
Under the terms of the complaint, the groups state that the LCFS violates the Commerce Clause and the Supremacy Clause of the US constitution. These charges echo similar complaints filed by two ethanol trade groups – the Renewable Fuels Association and Growth Energy, in December 2009.
The California LCFS calls for a 10 per cent reduction from 2006 levels in the carbon intensity of California’s transport fuels by 2020 and levies the calculation of Indirect Land Use Change effects against biofuels.
Now the NPRA claims that the standard directly regulates interstate and foreign commerce and extraterritorial conduct; imposes substantial burdens on interstate commerce; and discriminates both on its face, and as applied, against transportation fuels and fuel feedstocks imported from outside California. According to the complaint, it violates the Supremacy Clause because it conflicts with the Energy Policy Act of 2005 and the Federal Renewable Fuels Standard.
NPRA President Charles T Drevna stated the low carbon fuel standard will have “little or no impact on greenhouse gas emissions nationwide and would harm our nation’s energy security by discouraging the use of Canadian crude oil”. He believes that discouraging the use of North American transportation fuel sources would only create unneeded burdens on California’s consumers and its economy.
Meanwhile, ATA vice president Rich Moskowitz stated that the LCFS would essentially ban imports to California of fuels derived from unconventional sources and discouraging these fuels will only increase costs while failing to prevent their export and consumption by other nations.
In response, Mary Nichols, the California Air Resources Board chairman described the groups’ actions as “shameful” stating that the LCFS is a “critical tool to help us break our dependence on fossil fuels”.
