Good News for California Businesses and Consumers: Court Upholds California’s Low Carbon Fuel Standard.

by Susan Frank, Director California Business Alliance for a Green Economy

Earlier this week, the Ninth Circuit Court of Appeals upheld the Low Carbon Fuel Standard (LCFS), a key provision of California’s landmark clean energy and climate law, AB 32. Overall, the court provided a strong opinion in favor of the legality, intention and effectiveness of the LCFS in determining that the standard does not discriminate against out-of-state fuel producers, reversing a 2011 U.S. District Court ruling. It was a clear and decisive win.

Californians consume nearly 20 billion gallons of gasoline and diesel each year. The ruling means that the low carbon fuel marketplace will continue to expand, thus providing more clean fuel choices such as electricity and advanced biofuels to meet consumer demands. The ruling also is likely to lead to more market certainty for alternative fuel companies that are creating jobs and investing in the technologies and fuels that diversify our state’s transportation system.

“California, if it is to have any chance to curtail greenhouse gas emissions, must be able to consider all factors that cause those emissions when it assesses alternative fuels,” wrote Judge Ronald Gould in the majority opinion.

The significance of the court ruling has been widely covered by national media and legal scholars also have weighed in.

California is charting a course that other states and the nation will follow – our pioneering LCFS is another feather in California’s diverse clean energy cap.

© California Business Alliance for a Clean Economy

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