A court victory for ethanol producers in Nebraska.

A judge has ruled that California's "low carbon fuel standard" violates Nebraska's right to sell ethanol to California.

Nebraska's Corn Board believed it was being unfairly singled out by the California law...and as a result was losing out on a huge fuel market.

California, however, had maintained that some ethanol from certain parts of the country, including the Midwest, is too "carbon intensive."

They also claimed their law was focused on the carbon intensity of the process of producing ethanol, and not a function of geography.

California will appeal.