2021
The National Biodiesel Board FY 2021 State Regulatory and Technical Support - Northeast
Category:
Fuel
Keywords:
Renewable energyRenewable fuels
Parent Project:
This is the first year of this project.
Lead Principal Investigator:
Brad Shimmens, Clean Fuels Alliance America
Co-Principal Investigators:
Project Code:
SYBN 21 005
Contributing Organization (Checkoff):
Institution Funded:
Brief Project Summary:
The Northeastern United States has become an important market for biodiesel, primarily due to growing market acceptance of Bioheat®, a mixture of biodiesel and conventional diesel fuel used to heat homes and commercial buildings. In recent years, several states have adopted biodiesel requirements in addition to greenhouse gas reduction programs. To meet the significant technical needs associated with new and evolving biodiesel programs in this region it would be highly advantageous to continue retaining a contract representative located in the area.
Unique Keywords:
#biodiesel, #biodiesel/bioheat, #bioheat, #northeast, #renewable diesel
Information And Results
Project Summary

The Northeastern United States has become an important market for biodiesel, primarily due to growing market acceptance of Bioheat®, a mixture of biodiesel and conventional diesel fuel used to heat homes and commercial buildings. In recent years, several states have adopted biodiesel requirements in addition to greenhouse gas reduction programs. To meet the significant technical needs associated with new and evolving biodiesel programs in this region it would be highly advantageous to continue retaining a contract representative located in the area.

Project Objectives

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.

Project Deliverables

The objective of this project is to ensure that staff from state regulatory agencies and environmental organizations have access to technically accurate information about biodiesel and its feedstocks, helping facilitate fact-based decision making. It has been our experience that proactive educational and outreach programs lead to improved results during regulatory proceedings.

We expect a three-year regulatory process for the Climate Leadership and Protection Act to begin this fall in New York State. We will need to do a significant amount of technical education with regulators and environmental groups so that biodiesel’s sustainability benefits are understood. Education about other key issues that are likely to arise will also be needed, including issues such as cold flow performance, compatibility with engines and heating oil burners, criteria pollutant emissions, and lifecycle greenhouse gas emissions associated with soybean oil.

If New York State alone adopted B50 Bioheat by 2030, as is the goal of the state’s heating oil trade association and likely mandated by the CLCPA, a new 500 million gallon per year market for biodiesel would be created.

Progress Of Work

Updated April 21, 2021:
January - March 2021 State Regulatory and Technical Support - Northeast

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Updated July 20, 2021:
April - June 2021 State Regulatory and Technical Support - Northeast

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Updated October 19, 2021:
July - September 2021 State Regulatory and Technical Support - Northeast

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Final Project Results

Updated January 21, 2022:
October - December 2021 State Regulatory, Environmental, and Technical Support - Northeast

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Benefit To Soybean Farmers

Growth of biodiesel and renewable diesel production and use will be key to profitability at the soybean producer level as well as throughout the value chain. As a soybean producing state, New York will benefit directly from an increase of biodiesel and renewable diesel use. Informa Economics, in 2015, concluded that biodiesel and renewable diesel had added roughly 63 cents per bushel for producers. Based on last year’s acreage that means a strong and growing biodiesel and renewable diesel market added $6,804,000 in revenue for New York soybean producers. At an individual producer level, a New York farm with 500 acres of soybeans benefited an additional $15,120 compared to prices that would have been received if there were no biodiesel and renewable diesel sales. More recently, FCStone concluded that without biodiesel and renewable diesel demand from the Renewable Fuel Standard, farmgate prices for soybean producers would be 13% less. Sustained demand from biodiesel and renewable diesel positively impacts oilseed crush margins and enhances profitability of US animal agriculture; the soybean industry’s number one customer.

The United Soybean Research Retention policy will display final reports with the project once completed but working files will be purged after three years. And financial information after seven years. All pertinent information is in the final report or if you want more information, please contact the project lead at your state soybean organization or principal investigator listed on the project.