Thanks for the chance to offer written feedback relating to the proposed Low Carbon Gasoline Customary (LCFS) amendments. Progress Vitality is the world’s largest affiliation of biofuel producers, representing 97 U.S. crops that every yr produce greater than 9.5 billion gallons of renewable gas; 121 companies related to the manufacturing course of; and tens of 1000’s of biofuel supporters across the nation. Collectively, we’re working to deliver higher and extra reasonably priced selections on the gas pump to shoppers, enhance air high quality, and defend the setting for future generations. We stay dedicated to serving to our nation diversify our vitality portfolio as a way to develop extra inexperienced vitality jobs, decarbonize our nation’s vitality combine, maintain household farms, and drive down the prices of transportation fuels for shoppers.
Progress Vitality has beforehand submitted in depth feedback demonstrating the important function low carbon biofuels and better biofuel blends can play in assembly California’s bold local weather targets. As we now have beforehand famous, biofuels have been among the many largest contributors to the success of the LCFS program up to now and are poised to proceed to take action with acceptable updates to this system.
As our feedback in response to the April workshop additionally famous, we proceed to have severe issues over the proposed amendments. Of specific concern are the main points added to the sustainability certification necessities, the California Air Assets Board (CARB) neglecting to contemplate farm-level carbon discount practices and applied sciences, the unilateral discretion given to the Government Officer on new gas pathway functions, and the authority given to the Government Officer to change land use change (LUC) penalty values in desk 6 for the needs of figuring out a gas’s carbon depth (CI).
Continued Considerations Over Proposed Sustainability Certification
In our feedback on the April tenth workshop, we reiterated our issues over the onerous and dear necessities on biofuels producers and farmers and the way CARB’s Financial Affect Evaluation (EIA) of the proposal doesn’t focus on the sustainability certification requirement’s monetary burden of implementation. Within the recirculated EIA, this influence continues to be not sufficiently addressed. Reasonably, the EIA acknowledges potential direct and oblique land use change “is at the very least partially (and probably absolutely) accounted for by the LUC scores added to crop-derived pathways.” This acknowledgement renders the necessity for a sustainability certification moot as potential LUC issues for crop-based feedstocks are addressed in Desk 6. Corn starch bioethanol is given an automated 19.8 gCO2e/MJ penalty for oblique land use change (ILUC). Including the sustainability certification requirement to the present ILUC rating quantities to an unfair and pointless double penalty for corn starch bioethanol.
As we now have beforehand commented, the issues over LUC components are unfounded relative to corn starch bioethanol. In actual fact, the US is planting grain corn on roughly the identical variety of acres as was planted in 1900. On the similar time, the per acre yield has elevated greater than 600%. As proven within the graph beneath, the variety of acres harvested yearly have persistently hewn to the typical since 1900.
Whereas the newest proposal particulars the “greatest environmental administration practices” required for biomass utilized in gas pathways and people climate-smart agriculture (CSA) practices end result within the discount of carbon emissions, CARB continues to ignore these and different practices when factoring CI scores. A few of these practices embrace precision software of fertilizer, use of low CI fertilizer, no or low-till farming practices, and the usage of cowl crops. Using these practices for measured carbon discount will not be new. Different state businesses are utilizing a few of these similar practices to cut back the discharge of soil carbon within the state’s pure and dealing lands.
CSA practices are an vital part to bioethanol’s continued efforts to get to net-zero. We urge CARB to acknowledge these practices and their carbon-reduction potential and permit CSA practices to be thought-about when figuring out a pathway’s CI. Lastly, with respect to the proposed sustainability audit, the proposal’s audit necessities handle points that, whereas vital to environmental and social justice, fall exterior the scope of the LCFS. In line with the April 10 employees presentation, the proposed sustainability audit course of would require auditors to conduct: “assessment of administration methods”, “assessment of social practices”, and an evaluation of the “financial sustainability of the applicant.” The proposed amendments require authorized certification methods for the sustainability requirement to take “social and financial standards” into consideration alongside environmental issues. Whereas vital and laudable targets themselves, “social and financial standards” haven’t any bearing on GHG discount. Moreover, many facets of those audit provisions are addressed by federal packages. As an example, the Honest Labor Requirements Act has clear employment pointers particularly for the agriculture business. Moreover, if the proposal is adopted, crop-based biofuels can be the one feedstock for which these standards can be audited.
Increasing Specified Supply Feedstocks
We acknowledge CARB’s recognition of the usage of a wide range of “waste, residue, by-product or comparable materials in a gas pathway”, significantly the inclusion of distiller’s corn oil, and its consideration as specified supply feedstock. Biofuels producers are pushing improvements to make use of each a part of the corn crop. Whereas historically thought-about waste, corn stover and corn kernel fiber have more and more been used as a feedstock for bioethanol manufacturing. As a byproduct of corn bioethanol manufacturing, we encourage CARB to acknowledge and embrace corn stover and corn kernel fiber within the listing of specified supply feedstocks.
Biofuel Cap and Government Officer Discretion on Gasoline Pathways and LUC Values Betrays Know-how Neutrality
CARB has made clear its intentions to extend the function and marketplace for zero emissions autos (ZEVs) within the state. Nonetheless, the revised amendments give the Government Officer discretion to reject new gas pathway functions for specific crop-based fuels solely primarily based on reaching a threshold of 132,000 registered Class 3-8 ZEVs. It endows the Government Officer with such an authority and not using a correct rulemaking. This, mixed with a 20 % cap on the usage of particular biofuels for credit score technology alternatives units a harmful precedent for the usage of all GHG decreasing feedstocks and applied sciences, violating the LCFS’ dedication to expertise neutrality. This system already requires the usage of a lifecycle mannequin and assesses penalties for land use change, additional limits make little to no sense. Utilizing the total vary of Class 3-8 vans permits for the very actual chance this threshold could be met with smaller lighter autos (Class 3-4), thus leaving the bigger, heavier autos (Class 7-8) reliant on liquid gas which will solely be accessible in fossil fuels if new biofuels pathways will not be allowed. This could possibly be very true after an replace to CA-GREET the place legacy pathways are termed out. This case would end in environmental backsliding and lack of GHG advantages.
Equally, the proposed discretion of the Government Officer to revise LUC values in Desk 6 if such a price is deemed not “conservatively consultant of a selected area/feedstock/gas mixture” additionally betrays the Customary’s expertise neutrality. This proposed provision, very like the sustainability certification requirement, singles out crop-based feedstocks.
Not solely are issues over LUC values unwarranted for cornstarch bioethanol, however the proposal doesn’t present any alternative for a LUC worth to be revised down, even when the Government Officer had been offered with “the most effective accessible empirical information” indicating a decrease worth. As an example, information exhibiting corn bioethanol with a LUC worth lower than the 19.8 gOC2/MJ wouldn’t be thought-about. To that finish, we additionally imagine the 19.8 gCO2e/MJ rating is outdated and never primarily based on the freshest analysis. A assessment of newer science signifies a lowering pattern in land use values with the newer information indicating values nearer to 4 gCO2e/MJ.
Approval of E15
We acknowledge CARB’s consideration of the function E15 can play in decreasing the state’s greenhouse fuel (GHG) emissions whereas additionally offering a cost-savings alternative for California drivers. Customers have embraced E15’s repute as a extra environmentally useful, extra reasonably priced gas. For the reason that US EPA authorized E15 in 2011, at which period there have been zero retailers providing it, its availability quickly expanded to now 3,400 retail websites in 33 states. Since then, drivers in America have relied on E15 to drive 100 billion miles.
In distinction, with Nevada, Oregon, the Phoenix metro space, and most not too long ago Montana approving E15 on the market, California stays the one state to haven’t authorized this cost-effective, environmentally useful gas that can be utilized in practically all of the state’s 31 million gasoline-powered autos. If CARB not solely authorized E15, however changed E10 with E15, this swap can be chargeable for the GHG-reduction equal of eradicating greater than 400,000 ICE autos from California’s roads with out negatively impacting California drivers. Neither will it have a damaging influence on land use change for bioethanol.
We urge CARB to finish the evaluation of and approval course of for E15 in order that Californians can make the most of this extra reasonably priced, cleaner burning gas that can be utilized to energy greater than 96% of the sunshine responsibility autos on the street immediately.
E85, Flex-Gasoline Autos, and CCUS
Moreover, we recognize CARB’s August 2023 updates to the California Transportation Provide (CATS) Mannequin that acknowledge the worth of carbon seize utilization and sequestration (CCUS) in carbon discount throughout bioethanol manufacturing. By accounting for CCUS, a course of incentivized by the Inflation Discount Act, the pathway carbon depth (CI) for E85—authorized to be used in California—was up to date such that it reduces the assumed CI rating for bioethanol from 66 gCO2e/MJ to 35 gCO2e/MJ. We recognize CARB’s recognition of the bioethanol business’s efforts to additional scale back carbon emissions by way of CCUS, a course of which is incentivized by the Inflation Discount Act of 2022. It is a welcome replace to CATS and a recognition of the optimistic influence bioethanol has on California’s emissions discount targets.
Moreover, California’s current approval of E85 has resulted in important development of its use in flex-fuel autos (FFVs): greater than 118 million gallons have been bought at 375 areas throughout the state in 2023 alone. The present measurement of California’s FFV fleet stands at greater than 1.3 million autos. Using E85 will promote even larger reductions in GHG emissions and reductions of air toxics. We might proceed to encourage CARB to implement insurance policies that strongly incentivize and as obligatory, require the manufacturing and use of flex-fuel autos, in addition to continued funding in infrastructure for expanded entry to E85 within the state. In doing so, the Board can be reaching a number of targets: bettering air high quality and GHG emissions, decreasing the state’s dependence on fossil fuels, and offering shoppers with an reasonably priced option to energy their autos. Once more, this may be carried out with none damaging land conversion influence.
Increase Entry to Low-CI Energy Sourcing for Biofuels Producers
With respect to Low-CI energy sourcing, the proposal fails to acknowledge its carbon-reduction potential in biofuels manufacturing. The proposal at the moment solely permits this mechanism for hydrogen as a transportation gas, Direct Air Seize initiatives, and electrical energy as a transportation gas. Firstly, this fails the LCFS’ basic coverage purpose of carbon depth discount in transportation fuels utilized in California. Permitting bioethanol producers to supply new contracted low-CI energy that isn’t included in a utility useful resource plan by way of an influence buy settlement doesn’t influence electrical energy demand.
Secondly, biofuels manufacturing happens largely in electrical energy markets exterior of California. This renders the argument towards increasing low-CI energy sourcing as a result of purported useful resource shuffling moot. Moreover, by not increasing this provision to biofuels, it denies the state the chance to guide different jurisdictions in the direction of growing their low-CI energy technology functionality.
Lastly, much like different proposed provisions within the amendments, limiting the authorized use of oblique accounting for Low-CI energy sourcing to a handful of fuels and processes violates the LCFS’ dedication to expertise neutrality.
Speed up the Use of Sustainable Aviation Gasoline (SAF)
As producers of some of the scalable feedstocks for SAF manufacturing, we encourage CARB to proceed to work with SAF producers, biofuel feedstock producers, and airways to proceed to hunt methods to speed up use of those vital fuels to assist decarbonize the aviation sector.
Thanks for the chance to offer enter on the current proposed amendments. The LCFS Program is a important software to addressing local weather change, and we stay up for working with CARB to make sure the function of biofuels in making California’s gas combine extra sustainable and assist the state obtain its progressive local weather targets by way of the expanded use of bioethanol.
