First from the article:
Poet’s lawsuit is one of two cases by out-of-state ethanol producers challenging the low-carbon fuel rule, which assigns a higher carbon intensity score to ethanol produced outside California. While the fuel is chemically and physically identical to ethanol produced in the state, more emissions are produced by corn farming, transportation and processing elsewhere, California officials say.California has perverted the ethanol market. Whether you like subsidies or not, the entire purpose of using the ethanol was to reduce our dependence on foreign oil imports. If we're forced to import ethanol because of some bogus "carbon reduction" we have accomplished absolutely nothing!
From the Financial Times:
Another US policy encouraging Brazil to export ethanol is set by California. The state, known for standard-setting vehicular pollution controls, welcomes the use of sugar cane ethanol to satisfy its low carbon fuel standard programme.
There is nonetheless an irony in the fact that biofuels promoted to reduce greenhouse gases are being ferried between the US and Brazil in ships belching petroleum exhaust. As the EPA notes: “This two-way trade of ethanol engenders additional transport-related emissions.”
I'm avoiding the whole issue of subsidies which, of course, pervert the market as well.