US appeals court says California can set its own Low Carbon Fuel Standard

Enlarge / Ethanol Plant, Milton, Wisconsin. (credit: Education Images/UIG via Getty Images)
Late last week, the US Court of Appeals for the 9th Circuit published an opinion (PDF) stating that California's regulation of fuel sales based on a lifecycle analysis of carbon emissions did not violate federal commerce rules.
Since 2011, California has had a Low Carbon Fuel Standard (LCFS) program, which requires fuel sellers to reduce their fuel's carbon intensity by certain deadlines. If oil, ethanol, or other fuel sellers can't meet those deadlines, they can buy credits from companies that have complied with the standard.
California measures 'fuel intensity' over the lifecycle of the fuel, so oil extracted from tar sands (which might require a lot of processing) would be penalized more than lighter oil that requires minimal processing. Ethanol made with coal would struggle to meet its carbon intensity goals more than ethanol made from gas.
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