NEFI & Clean Fuels Alliance: Working Towards a Brighter Future

Dear Friends and Colleagues:

As we approach the end of 2024, we reflect on the progress our industries have made together. In an era of rapid change and evolving political and energy landscapes, the partnership between the National Energy & Fuels Institute (NEFI) and Clean Fuels Alliance America has served as a beacon of innovation. Our collaborative pursuit of a sustainable and competitive future for the heating oil industry has yielded remarkable results that position us at the forefront of residential decarbonization.

The Providence Resolution of 2019 marked a pivotal turning point. This landmark commitment by the heating oil industry to voluntarily reduce greenhouse gas emissions, achievable through the adoption of low-carbon fuels and high efficiency equipment, set ambitious targets: a 15% reduction by 2023, 40% by 2030, and net-zero carbon emissions by 2050. This historic resolution drew attention from the press and policymakers at all levels of government.

A recent analysis by the National Oilheat Research Alliance (NORA) shows we have exceeded our initial goals. Together, we have achieved a nearly 26% reduction in greenhouse gas emissions, surpassing our 2023 target well ahead of schedule. The report also finds that we are on track to achieve the 2040 milestone as well.

This success is a testament to the power of our partnership and the innovative spirit of our industries. The combination of energy efficiency improvements and the increased use of Bioheat® fuel continues to propel us forward.

Burner manufacturers now offer equipment capable of burning 100% renewable fuel, while furnace and boiler manufacturers are marketing systems designed specifically for these sustainable fuels. NEFI secured a federal tax credit of 30% (up to $600) for the installation of these advanced systems, making clean heating technology even more accessible to homeowners.

Through the advocacy of Clean Fuels, NEFI, and our state association partners, state governments are recognizing the necessity of Bioheat® fuel to achieve their ambitious climate goals. With the support of their respective state oilheat associations, Connecticut, Rhode Island, and New York enacted laws requiring blending in all heating oil statewide, starting at 5% and increasing in future years. Massachusetts has implemented incentives for blending and many Northeast states are developing clean heat standards that are expected to allow generation of credits for the sale of renewable liquid heating fuels.

Even in states without blending requirements or incentives, the adoption of renewable fuels has allowed dealers to rebrand as environmentally conscious businesses, enhancing their competitiveness and helping to stave off harmful anti-combustion policies.

Clean Fuels continues to work at the federal level to ensure recognition and quantification of the lifecycle carbon and criteria pollutant reductions achieved by biodiesel, renewable diesel and Bioheat® fuel. This recognition is important to incentivize continued growth in production that will serve both long-standing partners and new markets.

Our collaboration has also been instrumental in advocacy efforts. Together, we’ve:

• Successfully defended against proposals that would have limited biodiesel blends through the EPA’s Renewable Fuels Standard (RFS).
• Called on the administration to increase renewable fuel volumes under the RFS to ensure the Northeast and Mid-Atlantic heating fuel markets have access to reliable supplies of clean fuels needed for residential decarbonization.
• Fought back against proposals to exclude renewable fuels from building codes and zero-emissions building standards, or that would ban or otherwise restrict consumers’ ability to purchase liquid-fuel heating systems.

As we look to the future, we face new challenges, particularly the political uncertainty surrounding federal incentives for renewable fuels. This includes the transition from the biodiesel and renewable diesel blender tax credit to a clean fuel production tax credit poised to begin at the end of this year. NEFI and Clean Fuels Alliance America are working tirelessly to ensure that heating fuels qualify under these new incentives and that the Renewable Fuels Standard is managed effectively to support our industry’s growth.

Our partnership is a unique alliance of mostly family-run businesses – Northeast fuel dealers and Midwestern farmers – that continue to flourish. We remain committed to offering a pathway to residential decarbonization that is sustainable, equitable, and economically viable. By working together, we are not just adapting to change; we are driving it, ensuring that renewable liquid heating fuels secure a prominent role in the future of American energy.

Please know that NEFI and Clean Fuels remain deeply committed to the home heating community. Our unwavering focus on advocacy, education, communication, and technical advancement, in collaboration with the farming community, has allowed us to embrace the challenges faced by family-run businesses in our industries. Together, we’re ensuring that home heating oil enjoys a renaissance built on innovation and sustainability. Through these joint efforts, we continue to drive progress, positioning renewable liquid heating fuels at the forefront of residential decarbonization and ensuring a brighter, more sustainable future.

While obstacles lie ahead, we see tremendous opportunity for those willing to embrace change and progress. We hope you will join us and be an active participant in this transformative journey to shape a cleaner, more prosperous future for our businesses and the communities they serve.

Warmest regards,

Donnell Rehagen
Clean Fuels Alliance America
CEO

Jim Collura
National Energy & Fuels Institute
Acting President & CEO

Related Posts