CEA: 9th Circuit Action Places Jobs and Consumers at Risk

SAN FRANSISCO  – On Monday, the U.S. 9th Circuit Court of Appeals issued a stay of a federal judge’s injunction blocking California’s low-carbon fuel standard.  The action will allow for the continued implementation of a low carbon fuel standard program in California during the appeals process.

In December, U.S. District Judge Lawrence O’Neill ruled that the program is unconstitutional because it violates the commerce clause.  In response to the 9th Circuit’s ruling, CEA Executive Vice President Michael Whatley stated:

“We are disappointed that the 9th Circuit Court of Appeals has chosen to allow, pending resolution of the appeal, a costly and  destructive program to continue while placing countless American jobs and consumers at risk. Even those supporting California’s LCFS have acknowledged its legal risk.  CARB’s claims that ‘the Low Carbon Fuel Standard drives investment and innovation, creates new jobs and provides the next generation of clean fuels to all Californians,’ have been debunked by study after study.  At the end of the day the LCFS will fail to reduce CO2 emissions, double gas prices, place thousands of jobs at risk, and will cost our economy billions of dollars.”

“As the Court moves forward with the appeals process, CEA will continue to pursue our challenge to this unconstitutional and costly state program that will have little to no impact on global carbon emissions.”

Even those spearheading the program’s development have recognized the legal uncertainty surrounding the LCFS. In the Northeast, NESCAUM executive director Arthur Marin expressed concern this week in an interview about the constitutionality of California’s LCFS program, pushing NESCAUM to examine alternative models for a low carbon fuel standard.