AFPM: Oregon’s proposed low-carbon fuel standard unconstitutional

Nov. 20, 2014
Oregon’s proposed low-carbon fuel standards (LCFS) program is unconstitutional, the American Fuel & Petrochemical Manufacturers said in comments submitted in response to the state’s Department of Environmental Quality’s (DEQ) Clean Fuels Program Phase 2 rulemaking and proposed rule changes.

Oregon’s proposed low-carbon fuel standards (LCFS) program is unconstitutional, the American Fuel & Petrochemical Manufacturers said in comments submitted in response to the state’s Department of Environmental Quality’s (DEQ) Clean Fuels Program Phase 2 rulemaking and proposed rule changes.

“It discriminates against out-of-state gasoline and diesel fuel providers in order to promote the development of an in-state biofuels program, and imposes more stringent requirements on out-of-state ethanol producers,” explained AFPM General Counsel Richard Moskowitz.

The national association that represents refiners and petrochemical manufacturers argued that if Oregon adopts the proposals, it would:

• Establish a fuel standard that is expressly preempted by the Clean Air Act (CAA).

• Discriminate against out-of-state and foreign commerce in violation of the US Constitution’s Commerce Clause.

• Raise serious policy questions that Oregon’s DEQ has not addressed, and that undermine the state legislature’s objective to reduce greenhouse gas emissions.

Oregon’s proposed LCFS program also would hit consumers in the pocketbook, Moskowitz said. “Numerous LCFS studies show that such programs will drive up fuel costs substantially,” he said. “It’s simply what happens when you have a government mandate that tries to force the use of fuels that either don’t exist, or that consumers don’t want, or—in this case—both.”

AFPM’s comments came as Oregon’s DEQ prepared to hold a second hearing on the proposed clean fuels requirements on Nov. 20 in Portland. Citing high interest, it announced that the public comment deadline has been extended to Nov. 25 at 5 p.m.

Contact Nick Snow at [email protected].