California to limit the use of seed oils in renewable diesel fuel
15 August 2024
The California Air Resources Board has proposed a limit on the use of seed oils, including soybean and canola oil, as feedstocks for the production of renewable diesel. The action is part of the proposed Low Carbon Fuel Standard (LCFS) amendments.
Under the proposal, credits will be provided for biomass-based diesel produced from virgin soybean oil and canola oil for up to 20% of annual biomass-based diesel reported on a company-wide basis. Biomass-based diesel from virgin soybean and canola oil in excess of 20% will be assessed the carbon intensity of the applicable diesel pool benchmark for that year, or the certified carbon intensity of the applicable fuel pathway—whichever is higher.
The most recent version of the proposal, released on August 12, 2024, also introduces a number of other changes to the initial proposal for LCFS amendments of December 2023, including:
- A one-time tightening of annual average carbon intensity (CI) benchmarks for gasoline and diesel by 9% in 2025, compared with a 5% year-to-year increase included in the initial proposal. The compliance targets between 2025 and 2030 are adjusted to smooth the curve between the more ambitious 2025 compliance target and the originally-proposed 30% reduction in 2030. (Under the existing LCFS regulation, the CI of gasoline and diesel fuels must be reduced by 20% in 2030.)
- CARB proposes to remove “Fossil Jet Fuel” from the list of transportation fuels that the LCFS applies to. The agency initially proposed to eliminate the LCFS exemption for fossil jet fuel as to intrastate fossil jet fuel. Now, CARB proposes to restore the existing exemption for all fossil jet fuel.
- Hydrogen produced from fossil fuels will no longer be eligible for LCFS credits, effective January 1, 2031. The California 2022 Scoping Plan Update scenario did not include hydrogen produced from fossil fuels—with or without carbon capture—as low-carbon, renewable hydrogen. Instead, it identified as low carbon and renewable hydrogen produced through steam methane reforming of biomethane, electrolysis, and biomass gasification.
The proposed expansion of the LCFS would undoubtedly increase the amount of crop-based fuels and make the program less sustainable, which was a source of criticism [6136]. The cap on seed oils introduced in the modified proposal provides stronger safeguards to limit the use of agricultural crops for the production of automotive fuels.
CARB will accept public comments on the proposal by August 27th, ahead of a public hearing planned for November 8th. The program changes could be in place by the end of the first quarter of 2025.
Source: CARB Proposed LCFS Amendments