# California’s Proposed Cap on Crop-Based Biofuels and What it Means for Fuel Prices and Biofuel Producers - Giannini Foundation of Agricultural Economics

> The California Air Resources Board plans to cap the share of Low Carbon Fuel Standard credits that can come from crop oils over land-use change concerns. The Giannini Foundation analysis expects small short-run effects on fuel prices but a larger negative impact on Midwestern biofuel producers that rely on crop oils.

- Date: 2024-12-19 · published 2024-12-19T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/15159-california-s-proposed-cap-on-crop-based-biofuels-and-what-it-means-for-fuel
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Canola Meal](https://feedsoft.ai/c/CANMEAL.md)

## Why it matters

A cap on crop-oil LCFS credits would reduce the value of soybean oil and canola-based biofuel feedstock, weighing on vegetable oil demand and prices.

## Read by commodity

- SBO: bearish ▼
- CANMEAL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2024-09-04 | [Biofuel groups, fuel retailers fight California’s proposed restrictions \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/15185-biofuel-groups-fuel-retailers-fight-california-s-proposed-restrictions-agri.md) | -2.4% | -0.4% |
| SBO | 2024-08-27 | [NOPA Calls Proposed Vegetable Oil Cap Unwarranted; Warns of Impact on Fuel Prices, Air Quality, and Consumers - NOPA](https://feedsoft.ai/events/15192-nopa-calls-proposed-vegetable-oil-cap-unwarranted-warns-of-impact-on-fuel.md) | +2.0% | +1.6% |
| SBO | 2019-07-08 | [EPA’s Proposed Biofuels Volumes a Big Miss for Soybean Farmers - American Soybean Association](https://feedsoft.ai/events/57956-epa-s-proposed-biofuels-volumes-a-big-miss-for-soybean-farmers-american-soybean.md) | +2.4% | +2.7% |
| SBO | 2024-01-30 | [A Cap on Vegetable Oil-Based Fuels Will Stabilize and Strengthen California’s Low Carbon Fuel Standard - Union of Concerned Scientists](https://feedsoft.ai/events/15248-a-cap-on-vegetable-oil-based-fuels-will-stabilize-and-strengthen-california-s.md) | +0.0% | -1.4% |
| SBO | 2024-08-13 | [California may cap credits for soy or canola-based renewable diesel \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/15189-california-may-cap-credits-for-soy-or-canola-based-renewable-diesel-agri-pulse.md) | -3.5% | -1.4% |

## Sources

- giannini.ucop.edu: https://giannini.ucop.edu/publications/are-update/issues/2024/28/2/californias-proposed-cap-on-crop-based-biofuels-an/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.