The Renewable Fuels Association says proposed regulations updating California’s Low Carbon Fuel Standard are “fundamentally flawed” and could significantly restrict the future use of low-carbon ethanol in the state.
In comments submitted last week to the California Air Resources Board (CARB), RFA Chief Economist Scott Richman asserts that renewable fuel producers and California consumers will both suffer if CARB moves ahead with its proposal for new “sustainability” requirements and an arbitrary new method for assigning hypothetical land use change penalties.
CARB says the onerous new sustainability requirements are necessary to mitigate the “rapid expansion of biofuel production and biofuel feedstock demand.” However, the data clearly show that there is no “rapid expansion” in U.S. corn ethanol production and historical growth has been accommodated with existing cropland and higher productivity. Applying the sustainability criteria to U.S. corn ethanol makes no sense in light of the hard evidence documenting the efficiency and sustainability associated with the industry’s growth, according to RFA’s comments. Moreover, the proposed changes are unworkable for U.S. farmers and ethanol producers, RFA said. The proposal includes overreaching language that appears to extend beyond CARB’s authority, along with unrealistic requirements for commodity traceability.
“CARB should seriously reconsider such a broad and sweeping mandate that could result in an invalidation of LCFS credits due to an unrelated violation that occurs outside of both a fuel provider’s control and CARB’s jurisdiction,” wrote Richman.
RFA also argues that the development and assignment of land use change penalties should be based on scientific data and modeling and must be subject to an appropriate public rulemaking process.
“If CARB had its thumb on the scale against ethanol before, now they are trying to give themselves the authority to put their whole fist on the scale,” said RFA President and CEO Geoff Cooper. “This proposal is completely disconnected from reality and, if finalized, will very likely result in shortages of low-carbon fuels and higher fuel prices for California consumers.”