California rule takes aim at soybean oil

I shouldn't be surprised at regulations coming out of California that don't make sense to the rest of us, but nearly every week there seems to be some new law or proposal impacting agriculture that's not grounded in science.

Last week, news came out that California's Air Resources Board (CARB), a governing body in charge of the state's air quality rules, wants to limit the amount of biodiesel produced from soybean oil and canola oil. Under the proposal, beginning in 2028 companies would only be eligible for low carbon fuel standard credits on up to 20% of their annual production for biomass-based diesel produced from soybean oil or canola oil. Any quantities above that amount would be assigned a higher carbon intensity score. I'm not a lawyer, but that doesn't seem too scientific to me.

But don't take my word for it. Corey Lavinsky, a biofuels consultant and attorney, said "California's proposed limits on biodiesel and renewable diesel made from soybean oil or canola oil are shocking. Days like today are the reason you pay dues to industry organizations to advocate for you."

Meanwhile, the USDA reports that renewable diesel imports surged 29% higher than last year in the first five months of the year to take advantage of federal and state tax credits. In addition, imports of "used cooking oil" from China are also flowing into the U.S. like never before to capture biofuel tax credits.

Farm Bureau and other biofuel advocates are pressing regulators to close that loophole so that only domestic producers are eligible for the tax credits. Hopefully, California can also be convinced to drop its arbitrary limits and support U.S. biofuel producers.