Iowa Biodiesel Board welcomes California’s decision to sunset outdated biodiesel restrictions

The Iowa Biodiesel Board welcomed the late December decision by the California Air Resources Board to sunset an outdated Nox-mitigation requirement for biodiesel blends.

Grant Kimberley, executive director of the Iowa Biodiesel Board, said this ruling—based on CARB’s own emissions data—removes an unnecessary regulatory barrier that has artificially suppressed biodiesel blend levels in California, the nation’s largest diesel market.

“The state’s decision to align its regulations with current science opens the door for increased biodiesel demand, particularly at least 20 percent biodiesel (B20), providing much-needed market access for Iowa’s biodiesel industry and soybean farmers,” Kimbereley stated. “This comes at a critical time as we continue to face headwinds due to a challenging environment in both federal energy policy and trade.” 

He continued, saying, “This move by CARB demonstrates what happens when regulators base decisions on current data rather than outdated assumptions. The evidence clearly supports biodiesel’s role in helping the state achieve its climate objectives under the Low Carbon Fuel Standard, and this will open up more opportunities for B20 to become the gold standard in California—as it should be.”  

Kimberley reiterated that despite the positive development, the real key to market certainty remains the finalization of guidance on the 45Z federal tax incentive as well as volumes under the federal Renewable Fuel Standard.

As noted in a recent statement on EPA’s proposed RFS volumes, finalizing strong RFS standards by Jan. 31 is absolutely critical for Iowa’s biodiesel industry and the farmers who depend on these markets, he said.