JEFFERSON CITY, Mo. – Missouri Attorney General Catherine Hanaway has announced that the Center for Individual Rights (CIR), representing Missouri, Iowa, and the American Free Enterprise Chamber of Commerce (AmFree), filed a groundbreaking federal lawsuit against the State of New York for an unconstitutional attempt to regulate businesses, consumers, and individuals beyond its borders.
New York’s “Mandatory Greenhouse Gas Reporting Program” imposes reporting and compliance obligations on businesses and individuals far outside of New York State. Among its complex and burdensome provisions, the New York regulation requires all ethanol and biodiesel manufacturers and distributors in the United States to register with the New York State Department of Environmental Conservation and report the amount of liquid fuel that might be used or sold in the Empire State. Missouri and Iowa are two of the largest producers of ethanol and biodiesel in the United States.
“Missouri’s energy independence is under attack by New York’s radical greenhouse gas mandates,” said Attorney General Hanaway. “We have joined Iowa and CIR to combat bureaucratic GHG over-regulation, and my office will keep fighting to protect Missouri agriculture from out-of-state overreach.
According to New York’s own estimate, the total compliance costs for each business affected by this regulation could exceed $50,000 and subject reporting entities to civil and criminal penalties for omissions or errors. This regulation also requires ethanol and biodiesel producers to agree to allow New York regulators to perform site inspections with no notice and no warrant.
“New York bureaucrats cannot tell Iowa farmers and ethanol and biofuel producers how to do their job or what regulations they need to follow. It’s as simple as that,” said Iowa Attorney General Brenna Bird. “Iowa is the USA’s number one producer of ethanol and biofuels—we know what we’re doing. By forcing a radical green agenda through unrealistic reporting requirements on any biofuel that may unknowingly end up in New York, these unelected bureaucrats are putting excessive financial requirements on producers. That means higher costs of fuel for Iowans and all Americans.”
“Biofuel producers already abide by the state regulations where production occurs,” said AmFree President Gentry Collins. “Now, the state of New York is seeking to apply additional scrutiny and red tape from extreme environmental inspectors or risk ruinous financial penalties. It’s a big government power grab at its worst, and we’re proud to stand with our allies in firm opposition to this effort.”
Individual states can make their own laws and regulate industries that reside within their borders. But one state can’t force a regulatory burden on industries in another state. That’s exactly what New York is doing to biofuel producers across the country.
“The Constitution outlines rules for how the federal government and states interact, but it also outlines rules for how states must interact with each other,” said CIR Senior Litigation Counsel Mike Petrino. “This Horizontal Federalism means that no one state can dictate the laws and regulations for another state. That’s exactly what New York is doing here.”
AmFree’s members who do not do business in New York, and all other Missouri and Iowa residents who rely on and benefit from them, should not be subject to New York’s rules, and their state governments have a right to protect their own policies and economies.
About the Center for Individual Rights: The Center for Individual Rights is a national public interest legal organization that provides free representation to clients whose rights have been violated or are seriously threatened. Founded in 1989, CIR has a record of landmark victories in the Supreme Court and many other courts, setting legal precedents that restore and protect the individual rights that are necessary for a flourishing and free society. Visit cir-usa.org to learn more.