California’s recent proposals to cap biofuel credits, particularly those derived from soybean and canola oils, represent a significant shift in the state’s approach to reducing carbon emissions through its Low Carbon Fuel Standard (LCFS).
The California Air Resources Board (CARB) has introduced amendments aiming to limit the use of these virgin crop oils in biofuel production. Under these new rules, starting in 2028, companies will only be eligible for LCFS credits for up to 20% of their annual production of biodiesel or renewable diesel from soybean or canola oil. Pathways for these biofuels are grandfathered in until 2027, providing a buffer period for adaptation. This is designed to steer the industry towards feedstocks like used cooking oil, thereby reducing the demand for crops that have larger ‘carbon footprints.’
the hits just keep coming at the biofuels sector ♻️
California is implicitly targeting the soybean and canola crushing industry in the US (farmers included)🌱👀
now we’ll have to find other homes for these biofuel products and many compliance systems do not like agricultural… https://t.co/21YRL5D1zJ
— GrainStats 🌾 (@GrainStats) August 13, 2024
The move has sparked varied reactions. While ‘climate change’ activists see this as a step towards ‘sustainability,’ others, especially in the biofuels and agricultural sectors, view it as detrimental. The cap could lead to a significant shift in market dynamics, potentially reducing demand for soy and canola oils in California, negatively affecting farmers and biofuel producers. Biobased Diesel Daily says the proposals are “worse than anticipated.”
California’s proposed LCFS cap on soy, canola biofuels ‘far worse than anticipated’https://t.co/aaRsOUWh4Y#soybeans #canola #biofuels #biodiesel #renewablediesel #California #CARB #LCFS #policy #biobaseddiesel @ASA_Soybeans @CleanFuelsAA
— Biobased Diesel Daily (@BiobasedDiesel) August 15, 2024
The cap could lead to increased credit prices under the LCFS due to reduced supply, potentially affecting the economic viability of biofuel production in California. This might encourage innovation in feedstocks or biofuel production methods, but the immediate impact on agriculture and the biofuel industry remains a point of contention.
California gives #soybean farmers another punch in the gut as it proposes capping soybean and canola oils in green diesel at 20%, favoring more used cooking oil and other feedstocks instead. #oatt
— Arlan Suderman (@ArlanFF101) August 13, 2024
On the other side, environmental groups and some scientists argue that while the cap addresses one issue, it might not go far enough in overhauling the LCFS to meet California’s ambitious ‘climate’ goals. While many outsiders may be a little confused, as biofuels were once hailed as a ‘green’ alternative to ‘fossil fuels’, championed by environmentalists for reducing carbon emissions and promoting agricultural ‘sustainability.’ However, the narrative has shifted as the focus has increasingly moved towards electric vehicles (EVs), which promise zero tailpipe emissions, aligning more closely with California’s ultimate goal of eliminating all forms of vehicle exhaust. The state’s unpopular EV mandate, which aims for all new cars sold to be zero-emission by 2035, has cast a shadow over the biofuel industry. This mandate not only diverts investment and policy support towards EV infrastructure but also directly impacts biofuel producers by reducing the demand for their products.
The proposed policy shift in California, a trendsetter in environmental policy, underscores a broader trend where biofuels, once seen as a bridge to cleaner energy, are now viewed as an interim solution, with EVs being the ultimate goal. This shift has left biofuel producers facing a future with diminishing market prospects, as the emphasis on electrification grows. The same thing happened with hybrid cars like the Prius, which were once embraced ‘green’ advocates, but are now shunned, as these energy-efficient cost-saving vehicles still run on ‘icky’ fuel. Even Teslas are not ‘clean’ enough for these people anymore, not because of anything to do with the cars, but because Elon Musk holds positions they don’t like.
It should also be noted that EVs are not nearly as ‘clean’ and ‘green’ as many proponents have made them out to be.
Shock: Why electric cars are NOT green machines: The environmental benefit of EVs may never be felt as their production creates up to 70% more emissions than petrol equivalents https://t.co/2J3sHT2wpm via @MailOnline
— Climate Realists🌞 (@ClimateRealists) July 3, 2023
Another big issue is that most people do not want to buy EVs for various reasons, which is why politicians like Gavin Newsom are pushing so hard to mandate them.
The zero-carbon utopia is “dead” as politicians retreat in the face of reality.
Even big business is trying to stop the billions they’re losing on green tech. Led by EV’s, where no company outside Tesla can actually make a product that people want to buy.
One study from TPPF… pic.twitter.com/ILd5N4tccn
— Peter St Onge, Ph.D. (@profstonge) November 13, 2023
People do not want to give up their internal combustion engines (ICEs originally ran on ethanol, by the way), but since when have politicians and their corporate partners in crime ever cared about the will of the people? If persuading people doesn’t work, they implement their mandates “for the greater good.”
If policy changes were not bad enough for farmers and producers, the propaganda campaign against biofuels has been ramping up. TV talking heads like ultra-liberal Chris Hayes from MSNBC have chimed in over the past few years to bash biofuels. In this case, in favor of solar panels, which have been increasingly taking over American farmland.
"It takes about 100 acres worth of biofuels to generate as much energy as a single acre of solar panels;"
Just an utterly deranged policy that exists for no other reason than rent-seeking.https://t.co/tMcV4aHAeg
— Chris Hayes (@chrislhayes) June 7, 2023
If the goal is to reduce carbon emissions, biofuels offer an immediate and affordable solution. Biofuels can be blended with or replace gasoline, and this does not require a complete overhaul of existing infrastructure. Already EV charging is straining electric grids in many parts of the country, which are still largely powered by coal and produce plenty of emissions. Also, unlike EVs, which require a complete shift in vehicle design and infrastructure, biofuel blends can be used in almost all new engines, and even in older engines with minor modifications. This makes them a practical solution for sectors like aviation, shipping, and heavy machinery, where electrification remains a distant prospect.
The production of biofuels also supports agricultural economies, providing farmers with an additional revenue stream. This is absolutely essential now, with grain prices so low. Biofuels support our farmers, and helping our farmers is always a big win.