New York legislation expands biodiesel blending in heating oil

Houston (Platts)--24Jun2013/439 pm EDT/2039 GMT


Biodiesel industry leaders and market sources Monday applauded new legislation in New York that will encourage expanded use of biodiesel.

The New York State Assembly and Senate passed legislation Friday that sets a new standard for all heating oil sold in the state, requiring it to contain at least 2% biodiesel by 2015. The product is also known as B2 or by its commercial name, Bioheat.

"America's advanced biofuel and Bioheat are a great fit for New York's heating oil market," said Shelby Neal, National Biodiesel Board Director of State Governmental Affairs. "Creating a standard that includes at least 2% biodiesel will replace about 30 million gallons of petroleum annually with a cleaner burning, renewable fuel."

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Roughly half of the biodiesel produced in the US is soy methyl ether, which uses soybean oil as the primary feedstock. In the first quarter of 2013, 51.86% of product was soy methyl ether, according to the US Energy Information Administration's latest monthly biodiesel production report.

"New York State's crop farmers are growing more and more soybeans every year," said Julia Robbins, executive director, New York Corn and Soybean Association. "This policy will help provide New York farmers with a new market for the state's soybean oil."

New York, the largest municipal consumer of heating oil in the country, previously instituted a citywide 2% biodiesel requirement in October 2012.

"Extensive testing has clearly shown that biodiesel blended with traditional heating oil is safe, seamless, and actually improves fuel efficiency through cleaning and preserving equipment," said John Maniscalco, CEO of the New York Oil Heating Association. "This law extends these tremendous benefits to all New Yorkers and will provide the state with the cleanest, most sustainable heating oil in the country."

The legislation calls for all heating oil sold in the city of New York, Nassau, Suffolk, Westchester and Rockland counties to contain at least 2% biodiesel by October 1, 2014, and all heating oil sold statewide to meet this standard by July 1, 2015. The legislation will become effective upon the governor's signature.

--Jordan Godwin, jordan.godwin@platts.com
--Edited by Carla Bass, carla.bass@platts.com




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