CARB Targets UCO Fraud, Cracks Down on Palm Oil Blending

The California Air Resources Board (CARB) issued a Request for Proposals (RFP) in early March to identify contractors capable of detecting whether biodiesel and renewable diesel feedstocks or finished fuels are adulterated with virgin oils such as palm oil. The initiative falls under the Fuel Reporting Program (FRP) and aims to strengthen enforcement of the Low Carbon Fuel Standard (LCFS).

CARB highlighted growing concerns that rising subsidies for low-carbon feedstocks like used cooking oil (UCO) have incentivized fraudulent practices. These include blending cheaper virgin oils with UCO and falsely claiming them as waste-based fuels to maximize credits. Selected contractors will develop standardized laboratory methods to identify chemical or physical markers that distinguish authentic UCO from adulterated materials.

The move comes as U.S. UCO imports surged from less than 200 million pounds in 2020 to over 3 billion pounds in 2023, with more than half sourced from China. Rapid supply growth, combined with strong policy incentives, has heightened the risk of fraud. CARB’s action signals tighter scrutiny on UCO supply chains and stricter compliance requirements across the biofuels market.