The Northeastern Region has become an important market for biodiesel (biodiesel and renewable diesel), primarily due to growing demand for Bioheat®, a mixture of biodiesel and conventional diesel fuel used to heat homes and commercial buildings. In recent years, several states have adopted biodiesel and/or Bioheat requirements. These include Connecticut, Massachusetts, New York, Pennsylvania, Rhode Island, and Vermont. Municipalities have also been active. Following a successful pilot program in 2019, New York City is in the process of transitioning its entire diesel fleet of more than 11,000 vehicles to B100. Moreover, the New York League of Conservation Voters (NYLCV) and Clean Fuels New York Coalition (CFNYC) are working hard to establish a low carbon fuel standard in New York. In California and Oregon, where low carbon fuel standard programs have been in place for 10 and 5 years, respectively, the biomass-based diesel has been wildly successful, providing 45% or more of the carbon reductions under those programs, and growing to 22% and 12% of the diesel fuel pool in those states.
The most significant challenge in fiscal year 2021 will be determining how biodiesel’s sustainability benefits position it within New York State’s Climate Leadership and Community Protection Act (CLCPA), which requires all industries to reduce greenhouse gas emissions by 40% by the year 2030. The three-year regulatory process that will shape program implementation is scheduled to begin early in FY2021. Notably, other states in the region such as Connecticut and Rhode Island are embarking on similar programs, though they are not as far along in the process. To meet the significant technical needs associated with development of these new programs, it would be highly advantageous to continue retaining technical contractors located in the area.