The IL Clean Fuel Standard (LCFS) Will Hurt Farmers in Illinois

The IL Clean Fuel Standard gives incentives to lower carbon fuels and taxes higher carbon fuels. The policy was originally designed by California to incentivize electric vehicles (EVs) and push gasoline, diesel, and biofuels out of the market. It utilizes carbon intensity modeling that gives soybean oil-based biofuels unfavorable scores and taxes them out of the marketplace.

Lower Soybean Prices

Under the LCFS regulatory scheme, soybean oil will lose its ability to compete in the biomass-based diesel market in Illinois. This will directly harm Midwest soybean farmers who rely on biodiesel as a key demand driver for their crops.

Biofuels

Biofuel volumes are dependent on the Renewable Fuel Standard (RFS), and the policy will not bring additional biofuel gallons onto the national market. However, this will lower the cost of EVs expand the EV marketplace, and incentives the use of non-soy feedstocks.

Tax Exemption

It will result in the elimination of Illinois’ biodiesel sales tax exemption which promotes soy-biodiesel blends and utilizes the soybean oil from over 100 million bushels of Midwest soybeans.