Supreme Court Decision: Low Carbon Fuel Standard Upheld, Stability for Market Participants Established
In September of 2013, the Ninth Circuit U.S. Court of Appeals overturned an earlier court decision from December 2011 that put the Low Carbon Fuel Standard, or LCFS, on hold. This decision was in recognition of on an underlying tenet of the LCFS: it puts the carbon intensity (or greenhouse gas emissions per unit of energy) front and center in considering how fuels are valued within the standard.
After the Ninth Circuit U.S. Court of Appeals decided to uphold the LCFS, the oil industry continued its fight against cleaner, homegrown fuels by taking it to the Supreme Court. On Monday, June 30th, the Supreme Court declined to hear the case after reviewing the Ninth Circuit’s decision. This effectively silences the oil industry’s primary tactic for opposing the LCFS.
While there is still the chance for litigation in the future, this is a decisive victory and a clear sign that the LCFS can move forward with stable footing and a solid market environment.