Farm Policy News says 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.
Some of the proposed changes for California’s LCFS would also require feedstocks like soybeans to be certified as meeting sustainability criteria.
The California board also wants to continue an exemption from LCFS requirements for jet fuel.
That may promote the increasing use of sustainable aviation fuel.
Under the proposals, companies would be eligible for LCFS credits for no more than 20% of their biomass-based diesel made from soybean or canola oil.
In the first quarter of 2024, biofuel from soybean and canola oil accounted for about 30% of the renewable diesel that qualified for the credits.
The American Soybean Association says the proposal would likely increase credit prices and boost fuel costs throughout California.
