Mid-market values in the California LCFS credit market slipped back by 50 cents to $66.25 from Friday’s finish. Sell side indications kept in line with the previous session at $68.50, with buyers unwilling to bid higher than $64, $1 dollar below Friday’s best indication. The standoff masks increasing interest in the market as California nears an expected decision to reconfirm the scheme this Autumn, reflected in the slowly tightening bid/offer spread. Darling Ingredients on Monday cited LCFS’ carbon intensity reduction methodology as sufficiently attractive to consider building the firm’s third conventional waste oil fed biodiesel plant on the west coast. The firm sees US state and Canadian provincial carbon capping plans as an increasingly important third pillar “green premium” producer support alongside the Federal RFS2 RIN program and annual extension of the $1/gal blenders’ credit.