January 12, 2022
BY American Coalition for Ethanol
In a cosigned letter, the American Coalition for Ethanol, along with the Great Plains Institute, Low Carbon Fuels Coalition, the National Biodiesel Board, and Canadian Oilseed Processors Association, recommended the California Air Resources Board recognize the climate benefits of farming practices in California’s Low Carbon Fuel Standard. ACE Board Member Ron Alverson separately submitted comments to CARB in response to information requests on land use change.
Alverson draws CARB’s attention to the recent research paper “Biofuel Impacts of Food Prices Index and Land Use Change,” which according to him, shows “there is land use change related soil carbon change from biofuel feedstocks, and it is positive, not negative.” Alverson also explains how the food price index has the highest correlation with crude oil price, not biofuel. After outlining the discrepancies between model predictions and observed data, Alverson urges CARB to revise its assumptions predicting the impact of biofuel on food prices and indirect land use change.
This feedback complements the letter ACE cosigned, which provides principles for farm-level carbon intensity (CI) accounting originally developed through the work of the Midwestern Clean Fuels Initiative.
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“…CARB would take a leading role in incentivizing carbon-smart farming practices in all locations that grow feedstock for LCFS fuel pathways, build knowledge regarding the short- and long-term effectiveness of various SCS [soil carbon sequestration] strategies, and speed fulfillment of California’s aggressive decarbonization goals,” the letter reads.
Quantifying greenhouse gas (GHG) emissions for biofuel feedstocks from farm practices and assigning corresponding CI scores results in major policy benefits, including:
Guiding principles set forth in the group letter to achieve these and other benefits, include:
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Stakeholders are actively leveraging USDA funds to establish a quantification and verification protocol that could support CARB’s inclusion of on-farm carbon benefits. The comments cite the ACE-led Expanding Soil Health Through Carbon Markets Regional Conservation Partnership Program (RCPP) in South Dakota, and broader efforts to replicate the program design to increase scientific robustness of key soil models across a variety of regions that could be used to access LCFS markets.
The USDA maintained its outlook for 2025-’26 soybean oil use in biofuel production in its latest World Agricultural Supply and Demand Estimates report, released Aug. 12. The forecast for soybean oil prices was also unchanged.
U.S. soybean production for 2025 is forecast at 4.29 billion bushels, down 2% when compared to last year, according to the USDA National Agricultural Statistics Service’s latest monthly Crop Production report, released Aug. 12.
Marathon Petroleum Corp. on Aug. 5 released second quarter financial results, reporting improved EBITDA for its renewable diesel segment. The company primarily attributed the improvement to increased utilization and higher margins.
Chevron Corp. on Aug. 1 confirmed the company started production at the Geismar renewable diesel plant in Louisiana during the second quarter after completing work to expand plant capacity from 7,000 to 22,000 barrels per day.
As of July 2025, California’s SCFS requires renewable fuel producers using specified source feedstocks to secure attestation letters reaching back to the point of origin. This marks a significant shift in compliance expectations.