ASA this week submitted comments to the California Air Resources Board on its proposed changes to the Low Carbon Fuel Standard.
ASA’s comments focused on:
- Serious Feedstock Cap Concerns and Proposed Solutions: ASA still has significant concerns with the vegetable oil feedstock cap that was included in the initial 15-Day Changes posted in August. The current proposal still restricts the amount of soybean oil that is allowed to generate credits in the program at an inequitable 20% by company, which adds additional limitations to soybean oil market share while not having limitations on imported feedstocks. CARB is essentially putting the feedstocks from foreign countries (e.g.: China) above those of the United States. ASA reiterated its concerns with the feedstock cap concept generally and highlights potential unintended consequences of the proposal, urging CARB to eliminate the cap.
- Sustainability Guardrails and Traceability Concerns: ASA remains very concerned about the sustainability guardrails and highlights that much of what CARB is requiring in terms of traceability and reporting is not something that can be easily achieved given current biofuel value chain infrastructure. The sustainability guardrails are more onerous than the specified source requirements used for non-U.S. waste feedstock imports. ASA strongly encourages CARB to adopt enforceable traceability and verification standards, including origin disclosures, documentation audits, and physical testing ensuring fraud and adulteration is mitigated from foreign based feedstocks.
- Modernized, Accurate, Climate Smart Carbon Intensity Modeling and Scoring: ASA once again urged CARB to conduct a comprehensive update of the GTAP-BIO model which currently uses outdated data to assign soybean oil an arbitrarily high CI score. ASA proposes this issue to be solved by proactively addressing via a CARB Indirect Land Use Change (ILUC) modeling work group as soon as possible.
- Equitable Entities Eligible to Apply for Fuel Pathways: ASA highlights concerns with CARB’s proposal giving the Executive Officer the authority to stop accepting new pathways for biomass-based diesel starting in 2031. In essence, an increase in pathways can only serve to improve GHG benefits in California. Singling out a single fuel for prejudicial treatment is baffling given the goals of the LCFS and the authority that establishes it. ASA urges CARB to continue to allow equitable pathways forward with no date of denial.
- Recommendations to CARB: ASA offers a list of several recommendations to CARB, including:
- Eliminating the feedstock cap from domestically produced feedstocks.
- Convening an expert working group to provide recommendations related to indirect land use change and sustainability reporting requirements.
- Reconsider its proposed sustainability requirements and work with USDA to develop an aligned scheme to quantify climate-smart agricultural practices for the purposes of biofuel feedstocks, equitably allowing soybean growers the opportunity to participate in the California biofuels market through innovative and climate smart agriculture practices.
- Undertaking a comprehensive update to the GTAP-BIO model for soybean oil used in biofuel production.
Background: Earlier this month, CARB issued a third 15-day notice for public comment after the California Office of Administrative Law remanded the LCFS changes back to CARB for further revisions.
This is the final document related to the LCFS amendment process that began over three years ago. While this document was limited in changes to the final LCFS amendments, it provided ASA an additional opportunity to highlight serious concerns with the amendments approved in November.
Why it matters: ASA and coalition partners have engaged multiple times with CARB board members and staff to address concerns regarding the proposed virgin vegetable oil cap, indirect land use change scores, foreign feedstock importation, and sustainability reporting requirements. Many of those provisions were unfortunately included in the final LCFS package that CARB approved in November.
What’s next: Once comments are reviewed, CARB and OAL will target approval and finalize by June 30.
