2023
CFAA State Regulatory, Environmental and Technical Support-NE
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 23 004
Contributing Organization (Checkoff):
Institution Funded:
Brief Project Summary:
As New York moves ahead with work to establish aggressive regulatory and legislative pathways to reduce carbon emissions to comply with the CLCPA (Climate Leadership and Community Protection Act), this project will be vital to ensure that both regulators involved with this process and legislators are fully educated on the ability of biodiesel, renewable diesel and sustainable aviation fuel (SAF) to provide immediate carbon and co-pollutant reductions in the transportation and thermal heat sectors. The CLCPA mandates the state reduce economy-wide greenhouse gas emissions by 40% by 2030 and 85% by 2050.

While full electrification (the preferred carbon reduction pathway among many stakeholders)...
Unique Keywords:
#biodiesel/bioheat
Information And Results
Project Summary

As New York moves ahead with work to establish aggressive regulatory and legislative pathways to reduce carbon emissions to comply with the CLCPA (Climate Leadership and Community Protection Act), this project will be vital to ensure that both regulators involved with this process and legislators are fully educated on the ability of biodiesel, renewable diesel and sustainable aviation fuel (SAF) to provide immediate carbon and co-pollutant reductions in the transportation and thermal heat sectors. The CLCPA mandates the state reduce economy-wide greenhouse gas emissions by 40% by 2030 and 85% by 2050.

While full electrification (the preferred carbon reduction pathway among many stakeholders) is one viable pathway to reduce carbon emissions, it cannot be the only pathway as New York seeks to meet its aggressive carbon reduction mandates in both sectors. The assumption that electrification can serve as the primary pathway to carbon reduction must be tempered by science-based data which proves that biomass-based diesel (BMBD) use in both sectors can be a far more cost-effective and more immediate way to reduce emissions. These facts must also be bolstered by robust science and studies which show that biodiesel, renewable diesel and SAF use do not come at the expense of food, and that our industry is well-poised to provide ample supplies when demand increases.

The latter two arguments (food versus fuel and supplies) are often used by our opponents who cite both as a reason for the state not to establish BMBD pathways. This effort must also include continued outreach to dealers, suppliers and other stakeholders (as well as regulators and legislators) that BMBD is compatible with existing burners and that higher blends will very soon be certified for use in heating appliances, satisfying concerns that BMBD is a drop-in fuel that can be used at all blend levels with little or no modifications, thus making it an affordable alternative to costly heat pump installations. This educational effort must also be targeted to environmental justice (EJ) communities, who suffer the most from co-pollutants emitted by petroleum-based diesel used for both transportation and heating.

Project Objectives

Clean Fuels will fully engage with DEC, NYSERDA, the Governor’s staff and CLCA staff (as well as other appropriate agencies and key stakeholders) to ensure that they understand all of the technical, supply and infrastructure aspects associated with BMBD and SAF, especially as it relates to GHG and toxic/criteria co-pollutant emissions and the associated benefits related to both classes of pollutants.

Clean Fuels will attend all regulatory proceedings associated with the CLCPA and provide members with any technical data that is needed or requested.

Clean Fuels will continue to provide outreach to environmental organizations, stakeholders and other interested third parties to educate them about BMBD attributes including carbon accounting, costs, performance and environmental and air quality benefits of BMBD and its feedstocks. Clean Fuels will also explore additional efforts to build on the recent and highly successful plenary session, “Pathways to a Clean Future” – made possible with generous support by NYCSGA and held in Albany, NY – and develop similar platforms for further outreach in NY and to other states in the northeast and mid-Atlantic.

Project Deliverables

Successful growth of the industry is ultimately linked with the success of America’s soybean farmers.
• This project, and others being proposed by Clean Fuels, will help ensure year-over-year growth needed to meet the Clean Fuels vision to use six billion gallons by 2030 with significant increases in the use of soybean oil as the industry’s primary feedstock for production biodiesel, renewable diesel, sustainable aviation fuel and Bioheat® fuel. The planned outcome of these programs will be to increase 2023 soybean oil use in these markets by more than 700 million pounds from 2022 utilization rates, as benchmarked by federal sources such as USDA and DOE’s Energy Information Administration data.

Progress Of Work

Updated April 26, 2023:
January - March 2023 State Regulatory, Environmental and Technical Support - Northeast

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Updated July 20, 2023:
April - June 2023 State Regulatory, Environmental and Technical Support - Northeast

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Updated October 24, 2023:
July - September 2023 State Regulatory, Environmental and Technical Support - Northeast

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Final Project Results
Benefit To Soybean Farmers

Biodiesel and Renewable Diesel Impact on Soy Producers

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. StoneX Financial Inc. (formerly known as INTL FCStone) assisted Clean Fuels in analyzing the impact biodiesel and renewable diesel has had on soybean prices. The StoneX Financial Inc. analysis concluded that, without biodiesel and renewable diesel demand from the Renewable Fuel Standard (RFS), farmgate prices for soybean producers would be initially 11-13% less. This equates to $1.44 based on the national average market price for soybeans last year if reduced by 11%. Based on last year’s acreage that means a strong and growing biodiesel and renewable diesel market added $24,422,400 in revenue for New York soybean producers. At an individual producer level, a New York farm with 500 acres of soybeans benefited an additional $38,160 compared to prices that would have been received if there were no biodiesel and renewable diesel sales.

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.