Feedstock providers and biofuel producers in the US have been resistant to the proposed amendments by the California Air Resources Board (CARB) to cap the use of canola and soybean oil (SBO) at 20% of a company’s feedstock mix in meeting the goals of the state’s Low Carbon Fuel Standard (LCFS).

If implemented, the cap could limit the amount of vegetable oils being used in biofuel production for the California market, sources told Fastmarkets.

Under the CARB’s proposed cap, “biomass-based diesel produced from soybean oil and canola oil would be eligible for LCFS credits for up to 20% combined of total biomass-based diesel annual production reporting by company,” an industry source said.

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