CALIFORNIA's state driven low-carbon fuel standard (LCFS) has been legally challenged in the US District Court by the American Trucking Associations and three other organisations including the Centre for North American Energy Security (CEA) as an impediment to interstate commerce.

The regulations set out by the California Air Resources Board stipulate that fuel providers reduce carbon emissions over the next decade, which include domestic fuel derived from oil sands from Canada, oil shale from mid-western US and even domestic coal.

"Discouraging these fuels will simply increase costs while failing to prevent their export to and consumption by other nations," said ATA vice president Rich Moskowitz, who filed the complaint at the US District Court in California.

Additionally the ATA says the regulation would impact end-users and fuel price in what it considers is a "shuffling" of LCF away from other states burdening end-consumers with little reduction and a possible increase of greenhouse gas emissions, reported American Shipper.

In a report from Oil & Gas Journal, CEA vice-president Michael Whatley, a former chief counsel for the US Senate Clean Air and Climate Change Subcommittee, said the standard will not benefit California consumers. "Perhaps it wasn't the state's intent, but as written, the California LCFS is an example of parochial protectionism run amok," Mr Whatley said.