While the U.S. ethanol industry has been trying to expand its markets, it’s also been fighting a proposal to save one in California — which has actually been importing ethanol from Brazil, at the same time that Brazil is importing ethanol from the Midwest. Last year, the California Air Resources Board found that Midwestern ethanol production emits too much carbon dioxide, and proposed requiring California gas distributors to use less carbon-intensive ethanol.CA has lost all ability at governance.
The attorneys general of seven states sued the board, calling the measure an interference with interstate commerce. In December a federal judge ruled that the proposed regulation was unconstitutional; California is appealing the decision.
Another article on the situation:
California’s Air Quality Board (CARB) has established very strict Greenhouse Gas (GHG) emissions standards and these may be an influence on U.S. ethanol imports. The standards restrict imports of Midwest corn-starch ethanol into the state and favor imports of Brazilian sugar cane ethanol. (7) A lower court has affirmed the acceptability of these regulations. However, they may be tested again in a higher court. The regulations encourage imports of Brazilian and Caribbean-Basin sugar cane ethanol into California to reduce GHGs. Sugar cane ethanol imports are considered an advanced biofuel and help to meet the U.S. advanced biofuels mandate. Biodiesel is the only U.S.-produced advanced biofuels available in significant commercial quantities. Imports of Brazilian and Caribbean-Basin ethanol thus do not do not compete with corn-starch ethanol in meeting the conventional ethanol mandates. However, they do reduce the amount of the blend-wall restricted ethanol market that is available for corn starch ethanol.
Brazil’s exports of ethanol to California may tighten Brazilian ethanol supplies and may create an opportunity to export U.S. corn starch ethanol to Brazil. Thus, California’s policies have the potential to create uneconomical trade patterns and may not reduce global GHG emissions as much planned.
Stupid, stupid CA. I'm sorry. I generally try to stay away from words like this. But I just need to be blunt.