Does LCFS discriminate against out-of-state businesses?

By CMTA Staff

Capitol Update, Feb. 8, 2013 Share this on FacebookTweet thisEmail this to a friend

The 9th Circuit Court of Appeals decision in a lawsuit challenging the low carbon fuel standard (LCFS) is still pending. At stake is the question of whether the LCFS discriminates against out-of-state businesses and if that amounts to protectionism. Attorneys representing the state claim the LCFS is scientifically sound and seeks to not only benefit California’s economy, but will help foster innovation and cleaner fuels in all marketplaces. Plaintiff’s attorneys, however, counter such claims and argue that the fuel standard “penalizes out-of-state conduct in an effort to control in-state emissions,” thereby violating federal interstate commerce protections. 

The Court has yet to indicate a timeframe for a decision on the appeal. Several media outlets report that two out of the three justices on the appeals board have challenged the LCFS – suggesting that they may rule against the state by declaring the standard unconstitutional.   

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