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CARB readies LCFS for full supply chain auditing

Full biofuel supply chain auditing and stricter legal definitions surrounding eligible feedstocks are set to become key requirements for LCFS credit generation alongside current carbon intensity and technical checks, JIm Aguila, chief of the Air Resource’s Board’s Industrial Strategies Division, told a regional stakeholder dialog held by the world’s largest sustainability auditor ISCC in Las Vegas Thursday.

With California’s galloping demand for low-carbon intensity fuels already stoking west coast interest in global waste supply chains, CARB is keen to safeguard against potential fraud in its system, Aguila said. The introduction of full traceability on supply chains stretching back to waste collection points through production facilities and wholesale market trade documentation are all fast heading down the track as CARB prepares to publish its policy document on supply chain verification before an upcoming October workshop.

CARB’s proposed verification system will rely heavily on recognized third party auditors to satisfy the scheme’s checks. CARB at the same time is reviewing ISCC’s existing sustainability auditing scheme to avoid unnecessarily doubling up on supply chain standards which already effectively police international biofuel and food supply chains. The verification program will also need to work with external parties to ensure that gallons of waste supply aren’t “double counted” into California as well as overseas obligations, Aguila said.

“We can see the potential for mutual recognition of ISCC certification,” Aguila said.

CARB will retain the right to perform “random” enforcement checks on registered facilities to ensure supply chain consistency, Aguila said. The ruling meanwhile will introduce “new nomenclature” to the LCFS program, defining for example what qualifies as used cooking oil under the LCFS scheme.

MS – 29/09/2016


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