CRTA and several organizations that include the dairy sector, agricultural interests and renewable fuel producers have rallied in opposition to Senate Bill (SB) 709 by California State Senator Ben Allen (D-Santa Monica).
This recent “gut and amend” not only threatens to undermine California’s methane emissions reduction strategy but also will chill investments in dairy methane capture projects and potentially all other carbon-reducing incentive programs offered under the Low Carbon Fuel Standards (LCFS) program. That’s because investors won’t commit billions of dollars to finance projects without the certainty they will realize a return.
Additionally, the bill circumvents the discussion currently underway at the California Air Resources Board (CARB) on future modifications to the LCFS.
Dairies account for 45% of methane emissions in California. Incentives are available under the LCFS to encourage dairies to reduce these emissions. Due to the success of the LCFS program and the Short-Lived Climate Pollutant (SLCP) Reduction Strategy required under SB 1383 (Chapter 395, Statutes of 2016), dairies are on track to meet the aggressive state goal of 40% reduction in industry methane emissions by 2030, according to a 2022 report released by the California Dairy Research Foundation and University of California, Davis CLEAR Center.
However, SB 709 threatens to undo this progress by severely restricting and handicapping the LCFS incentive programs targeted at reducing dairy methane.
As stated in the dairy industry’s coalition letter, “SB 709 will dramatically reduce important [LCFS] incentives that enable methane capture and beneficial use projects. Projects such as dairy digesters will not be able to be financed and implemented under SB 709. The development of dairy digesters is widely recognized by the California Air Resources Board and the Legislative Analyst Office as the most productive and cost-effective climate investment currently being implemented. Without these critical incentives, new projects will not be developed, and existing projects will not remain economical and will cease operating. As a result, not only will additional progress be hindered, but more than 2.2 million tons of GHG (methane) will be added to the atmosphere each year.”
CARB continues to recognize the need for dairy and swine feedstock to be included under the LCFS and acknowledge the significant greenhouse gas (GHG) emissions reductions being achieved through the operations. In fact, CARB has twice rejected recent efforts to limit or remove credits under the LCFS for renewable natural gas produced by dairies.
SB 709 will be heard in Senate Environmental Quality Committee on Wednesday, April 19th. You can follow the discussion under “Today’s Events” on the State Senate homepage.