SAN FRANCISCO — A federal judge on Thursday blocked
enforcement of a California regulation favoring producers
of gasoline, diesel fuel and biofuelswhose methods generate
fewer greenhouse gas emissions.
enforcement of a California regulation favoring producers
of gasoline, diesel fuel and biofuelswhose methods generate
fewer greenhouse gas emissions.
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The ruling by the judge,
Lawrence J. O’Neill of United
States District Court in Fresno,
said the rule unconstitutionally
discriminates against out-of-state
producers and tries to regulate
activities that take place entirely
outside state boundaries, from
producers’ choice of farming
methods to refiners’ use of
coal-fired electricity.
Lawrence J. O’Neill of United
States District Court in Fresno,
said the rule unconstitutionally
discriminates against out-of-state
producers and tries to regulate
activities that take place entirely
outside state boundaries, from
producers’ choice of farming
methods to refiners’ use of
coal-fired electricity.
By granting a preliminary injunction,
which had been sought by ethanol
producers, the judge dealt a blow
to the state’s much-trumpeted effort to
reduce its greenhouse
gas emissions to 1990 levels by 2020.
The low-carbon fuel rule
had been expected to account for
10 percent of the overall
reduction in emissions, or about
16 million metric tons.
which had been sought by ethanol
producers, the judge dealt a blow
to the state’s much-trumpeted effort to
reduce its greenhouse
gas emissions to 1990 levels by 2020.
The low-carbon fuel rule
had been expected to account for
10 percent of the overall
reduction in emissions, or about
16 million metric tons.
California’s fuel standard “impermissibly treads into the
province and powers of our federal government, reaches
beyond its boundaries to regulate activity wholly outside
of its borders,” the judge said.
province and powers of our federal government, reaches
beyond its boundaries to regulate activity wholly outside
of its borders,” the judge said.
The federal Constitution grants Congress the power to regulate
interstate commerce, and court rulings over the decades have
interpreted that language to restrain states from interfering
with interstate commerce. Judge O’Neill said that California’s
fuel standard rule “offends” that doctrine, referred to as
“the dormant commerce clause.”
interstate commerce, and court rulings over the decades have
interpreted that language to restrain states from interfering
with interstate commerce. Judge O’Neill said that California’s
fuel standard rule “offends” that doctrine, referred to as
“the dormant commerce clause.”
A spokesman for the California Air Resources Board, which
issued the rule in 2009, said it would appeal the decision.
issued the rule in 2009, said it would appeal the decision.
The California rule is one of the first in the country to use a
“life cycle” analysis to determine the total amount of greenhouse
gases emitted in the course of producing and transporting a fuel,
or its “carbon intensity.” By setting a carbon intensity standard,
producers and distributors who emit less are rewarded with
marketable credits; those who exceed the standard must buy
credits, driving up the costs of their fuel.
“life cycle” analysis to determine the total amount of greenhouse
gases emitted in the course of producing and transporting a fuel,
or its “carbon intensity.” By setting a carbon intensity standard,
producers and distributors who emit less are rewarded with
marketable credits; those who exceed the standard must buy
credits, driving up the costs of their fuel.
Separate lawsuits against the California regulation were brought
by the ethanol producers and by refiners and truckers. The Air
Resources Board had asked Judge O’Neill to dismiss the claims,
saying that provisions of the Clean Air Act give California
special authority to control air pollution. These provisions shield
the state from any claim of interference with interstate commerce,
the regulators argued.
by the ethanol producers and by refiners and truckers. The Air
Resources Board had asked Judge O’Neill to dismiss the claims,
saying that provisions of the Clean Air Act give California
special authority to control air pollution. These provisions shield
the state from any claim of interference with interstate commerce,
the regulators argued.
In three separate rulings issued Thursday, Judge O’Neill rejected
the regulators’ defense, accepting the refiners’ claim that the state
acted unconstitutionally and granting the injunction.
the regulators’ defense, accepting the refiners’ claim that the state
acted unconstitutionally and granting the injunction.
The fuel refining industry welcomed the judge’s action. “Today’s
decision is a victory for the millions of Californians,” said
Charles T. Drevna, the president of the National Petrochemical
and Refiners Association. “California’s low-carbon fuel standards
would have raised gasoline and diesel fuel costs for all Californians,
who already pay the highest fuel prices in the nation.”
decision is a victory for the millions of Californians,” said
Charles T. Drevna, the president of the National Petrochemical
and Refiners Association. “California’s low-carbon fuel standards
would have raised gasoline and diesel fuel costs for all Californians,
who already pay the highest fuel prices in the nation.”
