Agri-Pulse reports:
The California Air Resources Board is proposing to cap the amount of renewable diesel made from soybean or canola oil that would qualify for the state’s low carbon fuel standard.
CARB’s proposed amendments to rules for the California LCFS also would require feedstocks such as soybeans to be certified as meeting sustainability criteria.
CARB also is proposing to continue an exemption from LCFS requirements for jet fuel; removing the exemption as the board had originally proposed could encourage the use of sustainable aviation fuel.
Under CARB’s proposals, released Monday, companies would be eligible for LCFS credits for no more than 20% of their biomass-based diesel that comes from soybean or canola oil.
Scott Gerlt, an economist for the American Soybean Association, said the 20% cap on credit eligibility “could be quite restrictive.”
During the first quarter of this year, biofuel sourced from soybean and canola oil accounted for about 30% of the renewable diesel that qualified for credits, he said.
The proposal also would likely increase credit prices and boost fuel costs in the state, he said. The cap “will lower the amount of credits that can be generated, which will pull back the supply somewhat and increase the credit price,” he said.
CARB will take comments on the proposed amendments through Aug. 27.
To read the entire report click here.
