Major U.S. Biodiesel and Renewable Fuel Producers Announce New Purchasing Requirements.

Urgent News for Used Cooking Oil Vendors

Pursuant to CARB’s LCFS GREET 3.0 Carbon Intensity modeling tracking system, all Used Cooking Oil vendors selling to biofuel producers must now agree to Quarterly and/or Annual collection record audits.  Additionally, utility information and collection mileage data are being requested to determine if more lucrative CI values can be attained.

THIS DOES NOT JUST AFFECT WEST COAST COLLECTORS.  

Substantially, all major U.S. bio-diesel and renewable diesel producers participate in the CARB regulated marketplace.  This means that these new requirements apply to you, regardless of your location if you wish to continue doing business with these fuel producers.  Generally speaking, these producers have historically paid very well for UCO, and the inability to access these buyers could have a very negative affect of UCO marketability.

What CARB’s LCFS GREET 3.0 Actually Tracks

The Low Carbon Fuel Standard (LCFS) rewards fuels with a low carbon intensity (CI), measured in grams of CO2-equivalent per megajoule of energy. GREET 3.0 is the updated model CARB uses to calculate that score. Fuel made from used cooking oil earns one of the lowest CI scores available, which is exactly why biofuel producers pay a premium for UCO. To claim that low score, though, they have to prove where the feedstock came from and how it moved through the supply chain. GREET 3.0 pushes that proof requirement back onto the collectors who supply the oil.

What UCO Collectors Need to Document

If you want to keep selling into the LCFS market, your records need to stand up to a quarterly or annual audit. At a minimum, plan to track:

• Collection records per pickup. Date, location, and volume collected from each account.
• Point of origin. The specific restaurants or facilities the oil came from, so it can be verified as genuine used cooking oil.
• Transport and mileage data. How far the material traveled, which feeds directly into the CI calculation.
• Chain of custody. An unbroken paper trail from the kitchen to the producer.
• Audit-ready summaries. Records organized so a quarterly or annual review takes minutes, not weeks.

How to Stay Compliant and Keep Selling

The collectors who handle this well will keep their access to the highest-paying buyers. The ones who cannot produce the records risk being cut off from the biofuel producers who pay the most. Gantry Ops logs every pickup automatically, so your documentation is built as you run your routes instead of reconstructed at audit time. If you want help getting set up, Reiter Consulting works with collectors on compliance and growth, and you can sell your verified UCO to Reiter Trading at a fair market price. To see where values are headed, check our market data page.

Reiter Software is urgently developing new features to ensure that you can continue to sell to these biofuel producers.  The features we have in development allow you to EASILY track and maintain all necessary data, and to PROTECT this data from your counterparties while still providing them the data necessary for them to mitigate their risks.

For additional information pertaining to these new CARB regulations, we released a video podcast talking about how these new changes can and will affect the current marketplace.

If you are a UCO collector, please contact sales@reiterusa.com to discuss individual company licensing.  If you are a biodiesel producer, please contact kristof@reiterusa.com to discuss bulk licensing for your entire supply chain.

CARB LCFS Documentation FAQ

Does CARB’s LCFS only apply to used cooking oil collectors in California?

No. Because nearly all major U.S. biodiesel and renewable diesel producers participate in the CARB-regulated LCFS market, these documentation requirements reach collectors nationwide who want to sell to those producers.

What is carbon intensity (CI)?

Carbon intensity measures the greenhouse gas emissions tied to a fuel, in grams of CO2-equivalent per megajoule. Fuel made from used cooking oil has a very low CI, which is what makes UCO a premium feedstock.

What happens if I can’t provide collection records?

You risk losing access to the biofuel producers who pay the most for UCO. Buyers need verified, documented feedstock to claim LCFS credits, so undocumented oil sells at a discount or not at all.