Oilseed processors are against California's proposal for a cap on biofuels

The National Oilseed Processors Association has sent comments to the California Air Resources Board opposing the cap on vegetable oils used as feedstocks for biofuels.

CARB released a series of proposed amendments on August 12 to overhaul California’s Low Carbon Fuel Standard Program, which aims at decarbonizing the transportation sector through incentives for the supply of low-emission and renewable fuels.

The amendments include a 20 percent limit on the use soybean oil and canola for the production of biodiesel.

CARB is concerned about the risks of land conversion and deforestation, and wants to avoid sending out a signal that virgin canola and soy oil will be used to meet California's fuel needs.

This has angered agriculture interests such as NOPA. They claim that vegetable oils are the most cost-effective and efficient feedstock at the moment and that a cap would limit the supply of renewable fuel, increasing fuel prices.

NOPA said in a letter sent to CARB as part of the 15-day comment period for the amendments that the cap would lead to an increase in the importation of foreign feedstocks such as used cooking oils (UCOs) and tallows. Some of these may have been sourced fraudulently.

The U.S. has become a net importer of UCO since 2022 due to the boom in renewable diesel production.

The increase in UCO imports has a negative impact on the demand for canola and soybean oils. NOPA reported that a pound of imported feedstock replaces the same amount of domestically-produced soybean oil, or five pounds of soybeans.

Customs data show that the U.S. imported over 2.2 billion pounds (about double) of UCO during the 12 months ending in June.

CARB will hold its public hearing to discuss proposed amendments for the upcoming year on November 8. (Reporting and editing by Kiri Donovan in New York, Shariq Khan is reporting from New York)

(source: Reuters)