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ATA, others sue California over CARB’s new fuel standard

The American Trucking Associations is suing California over a new fuel standard regulation implemented by the California Air Resources Board.

On Tuesday, Feb. 2, ATA joined petroleum refiners and others in a civil lawsuit challenging California’s low-carbon fuel standard – a first of its kind requirement that the state reduce the carbon intensity of its fuels by at least 10 percent by the year 2020 through alternative fuels and ethanol blends.

The suit was filed in federal court in California. ATA seeks an injunction and claims that the shuffling of low-carbon fuel to California will burden fuel sellers and consumers without “any net change in fuel’s carbon intensity … resulting in no reduction and a likely increase in greenhouse gas emissions,” an ATA statement read.

“The (low-carbon fuel standard) would essentially ban imports to California of fuels derived from unconventional sources such as oil sands from Canada, oil shale from the Western U.S., or domestic coal supplies that can be converted into transportation fuels,” said Rich Moskowitz, ATA vice president, in a written statement. “Discouraging these fuels will simply increase costs while failing to prevent their export to and consumption by other nations.”

The suit claims that the fuel standard violates the Commerce Clause of the United States Constitution by “imposing substantial burdens on interstate commerce that are clearly excessive in relation to the claimed local benefits.”

Named in the suit are CARB Chairman Mary Nichols, CARB board members, Attorney General Jerry Brown and Gov. Arnold Schwarzenegger.

Reaction from CARB offices was swift.

 “Their (ATA’s) actions are shameful,” CARB Chairman Mary Nichols said in a written statement. “This is a critical tool to help us break our dependence on fossil fuels. It will protect us from volatile oil prices and provide consumers with cleaner fuels and provide the nation with greater energy security.”

Nichols said the agency’s analysis showed that alternative fuels that met the low-carbon fuel standard “can save consumers as much as” $10 billion during the next 10 years.

“Instead of fighting us in court, they should be working with us to provide consumers in California and the rest of the nation with the next generation of cleaner fuels,” Nichols said.

Other plaintiffs in the suit include the Center for North American Energy Security, Consumer Energy Alliance and the National Petrochemical and Refiners Association.

– By Charlie Morasch, staff writer
charlie_morasch@landlinemag.com

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