The ethanol industry is proceeding with its lawsuit against the state of California over a rule that they claim would shut corn ethanol out of that state.

Late yesterday, the Renewable Fuels Association and Growth Energy filed papers in U.S. District Court in California asking the federal court to declare that California’s low carbon fuels standard (LCFS) violates the U.S Constitution.

The groups filed their suit on December 24, 2009. On June 16, the federal court overruled a motion to dismiss the lawsuit, permitting the ethanol groups to proceed with their claims.

The two groups issued a joint statement on the filing. “With these papers filed in federal court, the ethanol industry is seeking a preliminary injunction, as well as summary judgment, to halt implementation of the regulation. Our argument is that the regulation as written is unconstitutional and injurious to the domestic ethanol industry, and we don’t believe a full trial is needed to decide that.”

A hearing on the motions is scheduled for February 23, 2011.