Comment Log Display

The Honorable Liane M. Randolph, Chair
California Air Resources Board
1001 I Street
Sacramento, CA 95814
Re: Proposed Amendments to the California Low Carbon Fuel Standard
Dear Chair Randolph,
Canada appreciates the opportunity to submit the following comments
on the proposed amendments to the California Low Carbon Fuel
Standard (LCFS). Canada is writing today to express concerns with
the proposed amendments as they relate to oilseed feedstocks.
Canada and California share a longstanding and strong agricultural
trading relationship, with bilateral trade in 2023 totaling USD $9
billion. California exported USD $4.9 billion to Canada in 2023,
making Canada the state's top agriculture and agri-food export
market. One of Canada's top exports to California is canola oil,
with California importing USD $525 million worth of Canadian canola
oil in 2023, a portion of which would have been used for biofuel
production. In 2023, 15% of Canada's canola oil was exported to
California and represented 95% of all canola imported to the state
of California. Similarly, Canada is one of the top exporter of
soybeans seeds into California, a portion of which may be processed
further into biomass-based diesel production. Like California,
Canada recognizes the valuable opportunities to reduce the
lifecycle greenhouse gas emissions of biofuels, including by
adopting climate smart agricultural practices. Canada supports
harnessing innovative solutions that encourage and reward the
adoption of sustainable practices by producers while pursuing our
shared sustainability objectives. Clean fuels create jobs, support
rural communities and provide opportunities for a more sustainable
future.
Canada supports the production and use of low-carbon fuels,
including agricultural biofuels, through the Canadian Clean Fuel
Regulations (CFR). The Land Use and Biodiversity (LUB) criteria are
incorporated into the CFR to ensure the sustainability of biofuel
feedstocks and prevent adverse land use and biodiversity impacts
related to cultivation and harvesting. This LUB Criteria recognizes
the strong sustainability record of Canadian and U.S. farmers.
Under the CFR, Canadian and U.S. agricultural feedstocks are deemed
compliant with Land Use and Biodiversity criteria, through
Legislative Recognition and recognition of the US EPA aggregate
compliance approach. The LUB criteria set requirements that must be
met for participation in the CFR. The LUB criteria aim to reduce
cost and administrative burden for farmers and the agricultural
supply chain
by leveraging existing mechanisms and regulations within respective
jurisdictions through Legislative Recognition and aggregate
compliance. Canada believes that the LUB criteria sufficiently
meets the sustainability objectives that California's proposed
amendments would require.
Canada is concerned with California's proposed amendments to limit
credit creation for canola, soybean, and sunflower oilseeds to
twenty percent of total biomass-based diesel annual production per
company. The twenty percent limit being proposed appears to be
arbitrary and duplicative of carbon intensity scoring, especially
due to the lack of transparent, science-based justification or data
supporting these limitations. Likewise, the choice of canola,
soybean, and sunflower oilseeds appears contrary to the significant
amount of data globally that highlights the critical role of
oilseed feedstocks in reducing emissions.
To ensure reliable and stable trade, Canada supports policy
development that is transparent, science-based, recognizes the
highly integrated nature of the North American agricultural sector,
reduces administrative burden on our supply chains and minimizes
trade disruptions. Due to the size and scale of the California
market, limiting feedstocks in California biofuel production could
have unforeseen impacts on North American's supply chain and
markets. Canadian oilseeds are exported to California for further
processing and value-added use, creating and sustaining high paying
jobs that contribute to the implementation of California's energy
policy objectives. Canada is concerned that without the recognition
of national approaches (e.g. Canada's Clean Fuel Regulations or the
U.S. Renewable Fuel Standard), California's amendments will create
a disruptive sub national patchwork of regulations that would
negatively impact the biofuel market and undermine our shared
commitment to sustainability. To avoid potential economic impacts
from misalignment and to ensure continued growth, it is important
that California promote ongoing collaboration, coordination, and
consistency with internationally recognized standards and their
close trading partners such as Canada.
To avoid inadvertently minimizing the effectiveness of the biofuel
sector, Canada suggests that California consider the two following
LCFS amendments:
•
Remove the twenty percent limitations on biomass-based diesel
produced from soybean, canola, and sunflower oil.
•
Reduce administrative burden and support the recognition of
Canadian oilseed in compliance with the CFR LUB criteria that is
consistent with California's proposed sustainability certification
requirement.
Should California proceed with certification requirements on
oilseeds, Canada would appreciate additional guidance on
implementation to assist in streamlining the
requirements, especially as it relates to the biomass input
geographic shapefiles and coordinates of plot boundaries.
To discuss this important issue, Canada would like to request a
meeting with Chair Randolph prior to the final approval of the
proposed amendments to the LCFS.
Canada thanks California for the opportunity to submit comments and
looks forward to further information sharing, collaboration, and
coordination on this important topic.
Should you have any questions, please contact
Holly.McCoubrey@agr.gc.ca
Sincerely,
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Michelle Cooper
Director General
Market Access Secretariat
Agriculture and Agri-Food Canada
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Rana Sarkar
Consul General of Canada
Head of Mission
Canadian Consulate of San Francisco