California Appeals Ruling Blocking Low-Carbon Fuel Standard

California appealed a ruling by a federal judge who blocked the state’s low-carbon fuel standard after finding that it discriminates against out-of-state corn ethanol and crude oil and violates the Commerce Clause of the U.S. Constitution.

The judge’s decision and a related court order blocks the state from enforcing rules discouraging refiners such as Chevron Corp. and Tesoro Corp. from processing types of crude that release more carbon when produced and transported into the state, such as output from Canada’s oil sands.