US appeals court upholds California’s low-carbon fuels standard

A federal appeals court reversed a district court’s finding and ruled that California’s low-carbon fuel standard is constitutional. The standard does not discriminate against out-of-state crude oil nor violate the extraterritorial regulation prohibition in the US Constitution’s Commerce Clause, the US Ninth District Appeals Court said on Sept. 18.

It vacated the lower court’s preliminary injunction and asked it to reconsider whether the standard’s ethanol provisions discriminate in purpose or effect. The American Fuel & Petrochemical Manufacturers Association and the Rocky Mountain Farmers Union were lead plaintiffs in the lawsuit.

AFPM Pres. Charles T. Drevna criticized the appeals court’s decision, saying the district court “explained compellingly” why California’s LCFS violates the US Constitution’s commerce provision.

“Although the LCFS is a California law, its broad reach and intended scope means that implementing the LCFS will have adverse consequences throughout the nation’s fuel refining facilities and supply chain far beyond California’s borders,” Drevna said on Sept. 18. AFPM will evaluate its options regarding further court proceedings in the next few weeks, he indicated.

The appeals court’s ruling also drew fire from the Consumer Energy Alliance, which was a co-plaintiff. “This is bad news for energy consumers,” said Michael Whatley, the group’s executive vice-president.

‘Untested program’

“The court is upholding an untested program that even the [US Environmental Protection Agency] has no plans to pursue,” Whatley maintained. “Study after study has concluded that an LCFS would unnecessarily raise gasoline and diesel prices, leading to significant decline in [gross domestic product].”

Environmental organizations were elated. “This is a great day for public health and the economy of California,” Tim O’Connor, who directs the Environmental Defense Fund’s California Climate Initiatives, said on Sept. 18.

“The court clearly upheld a groundbreaking policy that will protect consumers and the environment by diversifying our fuel mix and providing more choices for a clean energy future,” he observed.

“Today’s victory ensures Californians are given better, cleaner choices at the fuel pump, which is something everyone can support,” noted David Pettit, a senior attorney at the Natural Resources Defense Council.

“This policy will spur American ingenuity to produce cleaner fuels with fewer impacts to our environment,” he said. “The standard is working to reduce pollution while decreasing the state's reliance on oil.”

Contact Nick Snow at nicks@pennwell.com.

Related Articles

WOTUS rule implementation uncertain after conflicting court decisions

08/28/2015 The US Environmental Protection Agency and Army Corps of Engineers reportedly began to implement their controversial Waters of the United States (W...

South Africa’s Engen wraps annual refinery turnaround

08/28/2015 Engen Petroleum Ltd. has restarted its 125,000-b/d Enref refinery in Durban, South Africa, following a 4-week period of planned maintenance activit...

Keystone XL decision isn’t imminent, White House press secretary says

08/28/2015 A presidential decision on TransCanada Corp.’s cross-border permit application for its proposed Keystone XL crude oil pipeline is not imminent, Whi...

PDVSA restarts FCCU at Amuay refinery

08/28/2015 Petroleos de Venezuela SA (PDVSA) has restarted the fluid catalytic cracking unit (FCCU) at its 645,000-b/d Amuay refinery in northwestern Venezuel...

Extension sought for Mackenzie Gas Project

08/28/2015 The earliest possible construction start for the Mackenzie Gas Project, which would connect natural gas fields in the Canadian Arctic with northwes...

Tap Oil signs PSC for block offshore Myanmar

08/28/2015 Tap Oil Ltd. reported its entry into Myanmar following the signing of the production-sharing contract for shallow-water Block M-7 in the Moattama b...

EIA: US oil, gas supply less vulnerable to hurricanes in 2015

08/28/2015 A relatively light hurricane season anticipated for 2015 and an overall decline in the Gulf of Mexico’s share of US crude oil and natural gas produ...

Rosneft, Egas sign master LNG supply, purchase deal

08/28/2015

Rosneft Group unit Rosneft Trading SA and Egyptian Natural Gas Holding Co. (Egas) have signed a master LNG supply and purchase agreement.

MARKET WATCH: NYMEX, Brent crude oil prices both surge in one-day rally

08/28/2015 The crude oil price for October delivery settled up nearly $4/bbl on the New York market Aug. 27, marking its biggest single-day gain in more than ...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


Operating a Sustainable Oil & Gas Supply Chain in North America

When Wed, Oct 7, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.

register:WEBCAST


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected