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NBB awards California Air Resources Board as court rules against RFA and Growth Energy

SAN DIEGO — Divisions within the renewable fuels industry were apparent today as the National Biodiesel Board gave its “impact” award to the California Air Resources Board for its low carbon fuel standard, the same day that a federal appeals court ruled against an appeal from the Renewable Fuels Association and Growth Energy and others that the standard discriminates in favor of California industry.

“The state of California continues to serve as a national and world leader in regulations related to environmental sustainability, and the California Air Resources Board is at the heart of those efforts,” NBB CEO Joe Jobe said in a statement.

“In January of 2010, Air Resources Board staff successfully implemented the first ever market-oriented carbon reduction policy for transportation fuels, a policy known as the low carbon fuel standard,” Jobe said.

“Since that time, use and production of biodiesel and other renewable fuels has increased significantly. Californians have since enjoyed the benefits of cleaner air, growth in green jobs, and increased fuel diversity.”

Meanwhile, a panel of three judges on the Ninth U.S. Circuit Court of Appeals denied a new hearing by the entire bench (en banc) in the litigation regarding the LCFS.

“Today’s decision by the Court of Appeals to allow a clearly discriminatory LCFS to stand is a blow to California consumers,” RFA and Growth Energy said in a joint statement.

“We will continue to evaluate all our options moving forward to assure that sound science and fair play ultimately prevail in this case,” the statement said.

The statement cited a dissenting opinion, joined by seven appeals court judges, that said the matter merited further review:

“The majority opinion in this case upholds a regulatory scheme that, on its face, promotes California industry at the expense of out-of-state interests. The majority opinion also sanctions California’s clear attempt to project its authority into other states," the dissenting opinion said. “Because the Constitution forbids such an expansive and discriminatory exercise of state power over interstate commerce, I respectfully dissent from our failure to rehear this case.”

Shelby Neal, director of state governmental affairs at NBB, said, “From the perspective of the biodiesel industry, the fact that court decisions continue to be made in favor of the Air Resources Board gives the industry continued confidence to make investments related to the LCFS. The LCFS has driven significant growth in the California market and this is just one more signal that growth and investment should continue.”