The California Air Resources Board (CARB) updated its Low Carbon Fuel Standard (LCFS) regulations proposal. CARB is maintaining its proposal from August to limit credit generation for certain crop-based biofuels, while expanding the scope of feedstocks affected. The original proposal in August included a 20% cap on credit generation for biofuels made from soybean and canola oil. CARB has added sunflower oil to this 20% cap. Companies would be eligible for LCFS credits for no more than 20% of their biomass-based diesel that comes from soybean, canola or sunflower oil.
CARB’s decision to include sunflower oil appears to be preemptive. Currently, there are no approved users of sunflower oil for biofuel production in California’s LCFS program. CARB states this addition is “responsive to public feedback that limiting this provision to soy and canola could lead to incentives to increase use of other oilseeds for biofuel production.â€
Despite the expanded feedstock restrictions, CARB is maintaining other key aspects of its August proposal. The program’s annual targets will still become 9% tougher in 2025. The 2030 goal remains a 30% reduction in transportation fuel carbon intensity from 2010 levels. CARB is keeping to its adoption schedule for these changes.
The proposed changes have received mixed reactions. Environmental groups argue the restrictions don’t go far enough to protect against cropland expansion and food supply competition. Agribusiness and some fuel producers warn that the concept goes against the program’s carbon-neutral focus. The Iowa Soybean Association opposes stringent field-level certification for corn and soybeans, arguing it fails to take a risk-based approach.
CARB has proposed a grace period for facilities already using the restricted feedstocks. Facilities certified to use soybean, canola or sunflower oil before the new rules are adopted can continue generating credits until 2028. This is an extension from the previously proposed 2026 cutoff.
