The OilSpot News by DTN
Tuesday, January 19, 2010 VOLUME 8 ISSUE 386  

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RFA Disappointed by California’s Approval of LCF Standard

The Renewable Fuels Association said it was disappointed with a move by the California State Office of Administrative Law to approve the Low Carbon Fuels Standard for implementation.

RFA said the approval was granted for LCFS despite examples of violations of California law by the Air Resources Board.

“Pursuing this strategy runs counter to the stated goals of Gov. Schwarzenegger and the State Assembly to reduce carbon emissions from motor vehicles,” the RFA President Bob Dineen.

It added, “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.”

The RFA said CARB failed to fulfill its statutory obligations under California law. In more than one instance, RFA added, 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 state Office of Administrative Law to reject the LCFS standard said the RFA.

“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,” added Dinneen.

The RFA sent a letter to the Office of Administrative Law in December detailing the numerous failures of CARB to appropriately address a number of concerns dealing with the assumptions, modeling and methodology employed in drafting the standard.

Also, the RFA, Growth Energy and others filed suit in the federal court in Fresno, Calif., challenging the LCFS on the grounds it violates both the Supremacy and Commerce Clause of the U.S. Constitution.


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