Biofuel Use: An Analysis in California

California continues to lead the United States in bio-fuel utilization

Renewable Diesel Adoption

Renewable diesel has become a substantial component of California's diesel fuel market. By mid-2023, over 50% of the state's diesel demand was met by non-petroleum-based alternatives, primarily renewable diesel. This shift is largely attributed to the incentives provided by the LCFS, which encourage the production and use of low-carbon fuels.

Regulatory Developments

In November 2024, the California Air Resources Board (CARB) approved amendments to the LCFS, aiming to reduce the carbon intensity of transportation fuels by 30% by 2030, up from the previous target of 20%. These changes are designed to accelerate the transition to cleaner fuels and align with the state's broader climate goals. Additionally, CARB has proposed capping the use of crop-seed oils, such as soybean and canola, in bio-fuel production to mitigate environmental and food supply concerns. The proposed amendments would limit the generation of LCFS credits from these feed-stocks to 20% of a compa…