Two vital California energy and environmental agencies are scheduled to consider later this week significant revisions to the state's environmental policies which will result in major implications regarding the future use of renewable fuels like biodiesel and renewable diesel.
The California Air Resources Board (CARB) will be holding a public hearing on November 8 to consider the adoption of proposed amendments to the Low Carbon Fuel Standard (LCSF). These includes a cap on the use of soy and canola oils, and the 2031 prohibition on hydrogen produced from fossil gas feedstocks. If passed, these amendments could have a substantial impact on the market availability of renewables and hydrogen for use in heavy-duty combustion engines and fuel cells.
[Related: Hydrogen combustion could drive down hydrogen costs]
On the same day, the California Energy Commission (CEC) plans to revise its Renewable Portfolio Standard Guidebook, which sets guidelines and credits towards reaching renewable energy goals.
Tug of war
Environmental and other related groups are pushing both bodies to adopt these more stringent measures to eliminate the use of renewables since they still produce CO2, though at levels far lower in comparison to traditional diesel for internal combustion engines.
Meanwhile, the trucking industry is fighting back, claiming the proposed amendments will increase fuel costs and disrupt the eventual transition to zero-emissions.
"Both CARB and the CEC have important obligations in these proceedings this fall to promulgate effective and inclusive policies and guidance that will signal to the marketplace and to consumers that the vehicle owners and businesses alike will have a full array of proven, available and affordable tools to reduce greenhouse gas emissions without harming the economy," said Engine Technology Forum (ETF) Executive Director Allen Schaeffer.
The ETF stated in its comments to CARB that the state's goals for slashing greenhouse gas emissions are already challenging and expensive enough because they aim to completely end the use of internal combustion engines (ICE) as well as liquid and gaseous fossil fuels in favor of battery electric and hydrogen fuel cell technologies, both of which have zero-tailpipe emissions.
The case for renewables
As Clean Trucking previously reported, the buy-in for both technologies is already expensive despite government subsidies, especially for small businesses who already face low profit margins. Furthermore, the must-have charging infrastructure is still lacking across the country, though California and other states, thanks to 2022's Inflation Reduction Act, are continuing to make progress on that front but not at the pace needed to sustain the freight economy.
Joe Rajkovacz, director of governmental affairs & communications for the Western States Trucking Association (WSTA), believes that "There needs to be a bridge between now and the future. CARB's position is fraught with very potential negative consequences for their air quality goods. Not including renewables as viable options sacrifices immediately achievable goals to reduce emissions from all surface transportation. What CARB has been trying to do is force feed zero-emissions vehicles (ZEVs) on everyone without any intermediate steps to get there."
He hints his organization and its allies will take legal action if CARB passes the amendments.
"This does appear identical to the regulatory attempt by the EPA to ban coal fired power plants that the Supreme Court completely rejected [when it] claimed that type of change is to be decided by Congress, not an agency pushing its agenda beyond its legal authority."
As for the CEC, the ETF stated in its comments regarding the proposed changes that there's a significant deficiency in the current Guidebook scope because it lacks appropriate recognition of Hydrotreated Vegetable Oil (HVO), aka renewable diesel, as a qualifying renewable fuel. Not only is it different from biodiesel despite being produced using the same feedstocks, it's a smart "drop in" alternative because it has significant carbon reductions when compared to traditional diesel or lesser blends of biodiesel. It could also play a key role in the decarbonization of the state's electrical grid.
"One would hope [that] in the light of the 2024 election results, CARB would back away from its insistence that [continued use of] internal combustion engines are a non-starter," Rajkovacz cautioned.
[Related: CARB clarifies enforcement of zero-emission truck reg]
In a statement to Clean Trucking, CARB reiterated it "does not and has never predicted fuel prices, nor does the Board or any other state agency set those prices or determine regulatory pass-through costs." There was no comment regarding biodiesel and renewable diesel use as stop-gap measures until the necessary charging infrastructure is in place.
