On December 29, 2011, the U.S. District Court for the Eastern District of California issued several rulings in the federal lawsuits challenging the California's Low Carbon Fuel Standard (LCFS) stating that the regulation is unconstitutional. One of the court’s rulings preliminarily enjoins the Air Resources Board (ARB or Board) from enforcing the regulation during the pendency of the litigation. ARB appealed these rulings and sought an order staying the preliminary injunction. In seeking a stay of the preliminary injunction, ARB requested an order that all requirements of the LCFS in 2011 and 2012 are enforceable for the entire period.
On January 23, 2012 Judge Lawrence J. O'Neill denied the California Air Resources Board's (CARB) motion to stay the decision he issued on December 29, 2011 that had halted the enforcement of the (LCFS) regulation.
CARB has stated it will continue the appeal. As long as the injunction remains in effect, ARB cannot enforce the LCFS requirements.
Conversation with CARB personnel indicates that affected parties should continue reporting activities using the LCFS Reporting Tool until such time as the litigation is concluded.
Anyone wishing further information should contact either Ron Chapman or Bill Newman with Weaver.