RFA Disappointed in Failure to Uphold California Law in LCFS Decision

January 12, 2010

(January 12, 2010)  Sacramento – Ignoring numerous examples of violations of California law by the Air Resources Board (ARB), the state’s Office of Administrative Law (OAL) has approved the Low Carbon Fuels Standard (LCFS) for implementation.

“Pursuing this strategy runs counter to the stated goals of Governor Schwarzenegger and the State Assembly to reduce carbon emissions from motor vehicles,” said Renewable Fuels Association President Bob Dinneen. “As crafted, the LCFS would virtually eliminate domestic ethanol,the only viable low-carbon alternative to gasoline, from the California marketplace in favor of imported ethanol and futuristic fuel technologies such as hydrogen and the electric car.”

Dinneen continued, “While serious and substantial concerns remain about the methodology and motives of ARB staff in drafting this standard, ARB failed to fulfill its statutory obligations under California law. In more than one instance, ARB staff failed to fully and appropriately address the valid concerns and comments provided by stakeholders, including the RFA. These failures are in direct violation of California statute and should have prompted OAL to reject the standard.”

In December, the RFA sent a letter to OAL detailing the numerous failures of ARB to appropriately address a number of concerns dealing with the assumptions, modeling and methodology ARB staff employed in drafting the standard. The full letter can be read here.

“OAL’s decision has left the industry no choice but to continue pursuing legal action to prevent this punitive, unfair,  and unconstitutional standard from moving forward,” said Dinneen.

On December 24, 2009, the RFA, Growth Energy, and others filed suit in federal district court in Fresno, California, challenging the LCFS on the grounds it violates both the Supremacy and Commerce Clause of the U.S. Constitution. Joint statements released at the time can be read here and here.