LCFS ILUC Amendments Unlikely Anytime Soon, Engagement Process Needed: Corey
SAN DIEGO – Despite a recent workshop on indirect land use change (ILUC) factors, the California Air Resources Board (CARB) is not likely to update the methodology in the near future, a speaker said Wednesday at the 14th Annual OPIS LCFS & Carbon Markets Workshop.
“I don’t think people want to revisit a major amendment to the carbon fuel standard anytime soon,” said Richard Corey, a partner at AJW who previously served as executive officer for CARB.
“Do I think they’re going to update the ILUC factors over the course of next year? I just don’t see that happening, certainly not in 2026,” he added.
People hold “very strong opinions when it comes to ILUC,” Corey noted.
“Some folks are informed by facts and science; some, not so much,” he stated. “It’s pretty divisive. It requires a very thoughtful process. I think it’s going to go on for years in terms of, ‘Do they really update?’
“I think a few years out, maybe. I think it’s going to be a long process incoming.”
Corey said that the Low Carbon Fuel Standard (LCFS) “probably has become the most significant policy in California, not just in terms of supporting cleaner fuels, renewable diesel, sustainable aviation, renewable natural gas; it’s probably the most significant electrification supporting program out there, particularly now.”
He added, however, that “incentives, given the state budget, are going to be much, much more modest.”
Corey indicated that he expects CARB to initiate a rulemaking process concerning the E15 direction in AB30 “kind of re-establishing the renewable fuel program at E15 versus E10” or as an alternative fuel.
“Many believe that many of the systems are fully compatible with E15,” he stated. “I think CARB probably even thinks that is supportable in most cases, certainly with the newer systems. But it’s not actually CARB’s call. They cannot actually certify to vapor recovery systems E15 until several other agencies weigh in, including the State Fire Marshal.”
Turning to a different topic, Corey said that dairy digester projects have become a “very divisive issue” while noting the significant reductions in methane the projects have unequivocally delivered.
“Many in the environmental justice community petitioned CARB when I was there multiple times to cease issuing LCFS credits that were completely complying with the law,” he stated. “And then they challenged them through subsequent petitions and processes.”
He added that he is unsure “whether or not there are future regulations directed at methane in the agricultural sector,” noting the significant reductions that have continued voluntarily to generate credits under the LCFS and support meeting the state’s methane reductions called for under SB 1383.
Corey also stressed the need for “effective partnering” with sustainable aviation fuel (SAF) producers.
“I expect over the course of this year strategies to be developed … opportunities to incentivize SAF use, production and consumption in California and beyond,” he said. “Some of those may be legislative strategies that play themselves out later this year or the following year.”
Reporting by Michael Schneider, mschneider@opisnet.com; Editing by Jordan Godwin, jgodwin@opisnet.com