Northeast Liquid Fuel Providers Put Higher Bioblends in Focus

by Rhonda Gerson, Oil & Energy Magazine

Three Northeast states continue to support consumer energy choice while creating paths to net-zero 

For more than a decade, the liquid fuels industry in the Northeast has been touting the benefits of biofuel blends to reduce carbon emissions, support consumer choice, and offset the influence of imported fuels. It was the local fuel associations in New York, Rhode Island, and Connecticut, supported by their member retailers, wholesalers, producers, and affiliated businesses, that reached out to municipal leaders and elected officials, outlined the benefits of higher blends over and over (and over) again, and succeeded in getting the laws passed that now require increasing blends of biofuel in heating fuels.

As of July 1, 2025, the biofuel minimum blend in heating oil in the states of New York and Connecticut increased to ten percent (B10); and to twenty percent (B20) in Rhode Island.

These associations are expanding the scope of reductions by promoting energy efficiency upgrades, supported by robust equipment and safety direct-to-consumer rebates.

You need biofuels and equipment upgrades to reach net-zero emissions goals. You need biofuels and equipment upgrades to implement an all-of-the-above emissions reduction strategy. You need biofuels and equipment upgrades to expand consumer choice options.

These statements are not hyperbole. New York Governor Hochul recently acknowledged that the state would not reach the net-zero emission electricity by 2040 as laid out in its Climate Leadership and Community Protection Act (CLCPA), and would be “slowing things down.” This reality was echoed by the CEO of the New York State Energy Research and Development Authority (NYSERDA), when she admitted that the state would continue to rely on fossil fuels for at least the next 15 years, as the state builds its renewable energy resources.

Kris DeLair, Executive Director of the Empire State Energy Association (ESEA), said of NYSERDA’s comments, “The statement highlights the disconnect between aspirational goals and exigent realities. Our members have always supported a cleaner energy future, but it has to be grounded in affordability, reliability, and consumer choice. NYSERDA’s statement validates our position.”

Rocco Lacertosa, CEO of the New York State Energy Coalition (NYSEC) added, “Kris (DeLair) and I had a great meeting with NYSERDA. They were upfront. To paraphrase, it boiled down to: ‘they need us. Fossil fuels are not going away tomorrow.’ A lot of people, including the Governor, have realized she needs to put the brakes on. The grid is not ready for a total change to electrification. They’re getting the point. I’ve said to them, if I have something here that can help the CLCPA get there in terms of emissions reduction, why not use it? I’m not anti-electrification – go build your grid, but we are here now and we can help you.”

Shortly after Oil & Energy spoke with Lacertosa and DeLair, the New York State Energy Planning Board published its draft New York State Energy Plan for public comment, with hearings scheduled in August and September. The plan outlined the state’s goals to provide:

• Abundant, reliable, resilient, and clean energy for New Yorkers;
• Affordable energy for households and equitable clean energy benefits;
• Economic growth and competitiveness;
• Innovation; and
• Continued progress toward decarbonization and a clean energy economy

The Plan draft goes on to report that “through the 2040 planning period, New York will continue supporting the safe and reliable provision of natural gas and petroleum fuels to electric, residential, commercial, industrial and transportation sectors.”

The inability of the electric grid to handle the demand of each state’s legislation and incentives to promote heat pumps (aka, “clean heat”) is being addressed across the country. In mid-July, the governors of Delaware, Illinois, Kentucky, Maryland, Michigan, New Jersey, Pennsylvania, Tennessee, and Virginia submitted a letter to the PJM Board of Managers, stating, “Today, as our regional grid confronts intertwined reliability and affordability crises, PJM itself faces an unprecedented crisis of confidence from market participants, consumers, and the states. In the past, other regions looked to join PJM due to its many strengths; today, across the region, discussions of leaving PJM are becoming increasingly common. These unwelcome developments reflect legitimate concerns about PJM’s trajectory.”

“At a time of rapidly rising load growth, PJM’s multi-year inability to efficiently connect new resources to its grid and to engage in effective long-term transmission planning has deprived our states of thousands of jobs and billions of dollars in investment that may flow to other regions. Now these deficiencies threaten the bedrock reliability and affordability our consumers expect and deserve,” the letter continued.

Raising The Stakes With Higher Blend Minimums

What works for New York, Connecticut, and Rhode Island will not necessarily work in Vermont or Virgina. To get a better idea of one potential path to reducing emissions, increasing biofuel blends, and expanding consumer choice, Oil & Energy spoke with the leaders of the Connecticut Energy Marketers Association, Energy Marketers Association of Rhode Island, Empire State Energy Association, and New York State Energy Coalition, as well as representatives for producers, wholesalers, and distributors in the region.

What these leaders are seeing is widespread acceptance of higher blends of biofuels among their members, coupled with aggressive marketing of equipment upgrades and the NORA-funded Upgrade & Save Energy Efficiency and Safety Rebates.

“Rhode Island was the first state to implement blend mandates,” said Diane Quesnelle, Executive Director of the Energy Marketers Association of Rhode Island (EMARI). “In 2017, we moved to a 5 percent biofuel blend, and by 2021, we had successfully legislated a 10 percent blend. July 1 of this year, we reached 20 percent. By 2030, we’ll be at 50 percent – and those next five years are going to fly by! Ultimately, our goal is net-zero by 2050.”

Quesnelle noted that while the biofuel industry is ready to meet these challenges, the biggest hurdle remains educating both consumers and policymakers. “Our members are committed to these changes because they know it’s how our industry will thrive. But we’re still working hard to help people understand that our industry is part of the solution. The challenge lies in getting everyone on board,” she added.

Connecticut increased its biofuel blend minimum to 10 percent (B10) as of July 1, and, according to CEMA President Chris Herb, “most of our retailers see the move to B10 as sort of neutral – a lot of them look toward the operational aspects, the economic aspects, supply aspects, and no one has offered up any concerns. The members who have actively marketed the environmental benefits of B5 will continue to do so, the ones who haven’t used it as an opportunity to communicate with customers will not do it now because of the increase. B10 has not changed the environment as to how retailers manage the fuels.”

New York also increased to a statewide B10 minimum. “We’ve been working on this issue since 2010,” Lacertosa said. “The legislation in New York City first became effective for B2 in 2012 and it’s ramped up from there. In terms of what we’ve been doing for blend levels, for the most part, we’re ahead of schedule. Many members have embraced biofuel blends and are delivering B50 or higher. There are members that are blending at the minimum – but no matter what works for each member, we’re here to work with them to make them successful.”

In Northern and Western New York, DeLair is also seeing progress. “Many of our members have embraced the higher blend percentages and are actively promoting the environmental and performance benefits of bioheat. As an association, our goal is to ensure all members, no matter where they are in accepting and using biofuels, have access to the guidance and tools they need. Several companies have been delivering B10 and beyond for a while. At the same time, the transition may present some challenges for others. We continue to encourage open dialogue and urge any members with concerns to use the association as a resource. We’re here to help them navigate compliance, technical questions, and consumer education so that no one is left behind as the industry evolves.”

Producers and distributors do not appear concerned about the increase in demand. Jason Lawrence, Business Consultant – Unbranded Fuels, Chevron, noted that “Chevron has always been supportive of higher blends of biofuels in the Northeast. We will continue to produce barrels within our network and make them available for distribution in the marketplace. Supply and demand will dictate where the flows will ultimately land, and we feel good about the position that the Northeast is taking regarding renewable fuels. We look forward to future growth in the region and policies that support bio-mass based fuels.”

“Many folks that are committed to using biofuels continue to surpass the minimum blend levels. We see heating fuel retailers starting to prepare for the season, and they are looking to capture value along the supply chain. Market dynamics continue to be complex as we navigate unchartered territory in the renewable fuels space,” Lawrence continued. 

According to Bobby Brown, President of Broco Oil, a distributor of petroleum products, propane, and lubricants in Massachusetts, supply will not be an issue. “We are prepared with the infrastructure and build-out of our terminals over the last two years – we can accommodate 85 oil cars in our facility; and with Class 1 CFX railroad service, we are in an extremely greater position to support the market, especially Rhode Island and central and northeastern Connecticut, economy-wise. We’re well positioned through our partner, Chevron, formerly Renewable Energy Group. That partnership is strong; and we’ve also diversified a little bit, because we have so much rail space storage wise, we allow others to store their fuels here. We’re trying to get as many bioblend feedstocks, or Massachusetts Advanced Biofuels feedstocks – get all types of blends that will help meet the mandates across the board from New York to Rhode Island and Connecticut.

Legislative Challenges Have Not Gone Away

As states push forward with biofuel blend mandates, they also grapple with clean energy and electrification laws.

As already noted, New York has had a “Cap-and-Invest” plan under consideration for over a year. In January, Governor Hochul postponed implementation for additional study. “I would say that if it’s not designed carefully, Cap-and-Invest will unfairly burden the low- or middle-income households that have limited options in terms of heating resources. It will raise energy prices – for home heating, electricity. and transportation – which will raise the cost of goods and services, and put pressure on consumers and businesses throughout the state,” DeLair opined.

“The Governor, in her energy summit last September, said we need an all of the above approach to energy solutions in New York, and she’s slowed down on Cap and Invest, which we’re happy to see. Next year, hopefully we’ll get our bill passed setting B50 by 2040 bill and B100/RD100 by 2050,” Lacertosa added.

In Rhode Island, both the State House and Senate had been considering bills for decarbonization. The state has projected a possible start for October 2025, rather than the traditional January start.

“This could create an unpredictable landscape,” Quesnelle explained. “With the legislature reconvening earlier than expected, there may be opportunities for bills to move more quickly. We’re staying proactive and monitoring the situation closely. As part of the Rhode Island Business Leaders Alliance, we work with partners across the state to ensure we’re all moving forward together.”

Herb and his team had their hands full in Connecticut, as well. “Some of the things that were most concerning: the Big Brother government utility control of the temperature in your home was defeated; some anti-deliverable fuel legislation that would have devalued a home that uses oil or propane we were able to defeat; and a bill that was a back door attempt to end fossil fuels through code changes was also defeated,” Herb states.

“We were very successful for our members for the third straight year. The last two years we were able to defeat 100 percent of the bills. This year, some things passed at the end of the legislative session on the EV side – but it can only be accessed by those in low income categories, and those are people unlikely to own a home to install an EV charger. I consider it disappointing that it got included, but I don’t think it has an impact on our members,” Herb continued. “It’s disappointing that the New England Heat Pump Accelerator program is looming over us. That will have the biggest impact – so that is our biggest target. We’ve worked locally to try to inform the Governor and regulators that Bioheat® fuel is a demand side strategy fuel. We can alleviate the strain on the grid – and that the Heat Pump Accelerator dollars should not be deployed because it would put more demand on the grid. The truth of the matter is that regulators in Connecticut are eager to get that money, but we hope the administration can hold that off for a while so realities can bring that to bear.”

Diversification For Growth

It appears that many fuel dealers in these states truly embrace an all-of-the-above strategy for their customers. Quesnelle and DeLair commented that their members are expanding their services to offer heat pumps and mini-splits to work alongside renewable fuel boilers and furnaces in response to consumer demand. EMARI is building classes for HVAC/heat pump installation and services alongside their NORA technician training. “You’re going to be putting in a heat pump for air conditioning and shoulder season heating. You have to look at them as being complementary. The customer has the heat pump, but keeps the boiler or furnace as their main source of heat,” said Quesnelle. “Heat pumps are perfect for air conditioning and shoulder-season heating, but they work best when paired with a boiler or furnace as the primary heat source.”

EnergizeCT has the “Home Energy SolutionsSM” program, which offers in-home energy performance assessments for a $75 copay. Herb is seeing his members looking at the profit opportunities in addressing home energy efficiency and harnessing the available state funding to help their customers increase efficiency. He is also seeing a surge in companies investing in HVAC professional training. “Members are sending their technicians to us at a higher rate than I’ve seen in 25 years,” he said. “I think that’s an indication that HVAC is in high demand from the public – people want their systems running at peak efficiency, their new equipment installed at its highest effectiveness. It shows our members have embraced market demand, selling homeowners better efficiency through high efficiency equipment. It’s probably the biggest contribution our members have provided to lowering costs through efficiency.”

Rebates Make a Difference

All four association executives agreed that the NORA-funded Upgrade & Save rebates they offer have made a big difference in promoting equipment upgrades. The Upgrade & Save Rebate Program launched on Long Island and in New York City and Upstate New York in 2015, and has since expanded to Connecticut, New Jersey, Virginia, Rhode Island, Pennsylvania, and North Carolina. In the past 10 years, the Upgrade & Save Rebate program has delivered more than $10.2 million in rebates directly to more than 24,405 property owners.

While CEMA, EMARI, NYSEC and ESEA have all promoted the $600 Energy Efficiency Equipment tax credit offered under the Inflation Reduction Act of 2022 alongside their rebates, none expressed concern that the loss of that $600 would affect future rebate programs.

“Upgrade & Save has been very successful since we began it. I came on the scene in 2015 – we shortly got in on the Upgrade & Save program. It has grown exponentially over the years,” Lacertosa said of the NYSEC program, which currently offers $300 for boilers or furnaces and $200 for aboveground storage tanks. “I often wish we had more money to give to consumers. It has been the thing that helped consumers get off the fence to upgrade or not. We’re keeping customers with us longer, we have them for life practically, the new equipment lasts so long. The member companies are very happy as it has helped them increase their equipment sales.”

In addition to promoting $600 tax credits under the Inflation Reduction Act, Quesnelle expressed confidence that EMARI’s strong rebate offerings – $1,000 for new equipment and $400 for tanks – will continue to motivate upgrades even after the federal credits expire. “We’re already pushing for a $2,000 rebate with tax credits, and I don’t anticipate the loss of the federal credit will affect our efforts,” she said.

CEMA offered one of the highest combined rebates under the Upgrade & Save program: up to $1,000 for boilers and furnaces and up to $600 for aboveground tanks. “Upgrade & Save provides enough of an incentive that customers are proactively replacing equipment, We’ve seen such an increase in tank replacements this year – for the first time we sold out on the tank side for rebates. We still have rebates for boilers and furnaces, but used up all the funding for tank replacements. Upgrade & Save provides enough of an incentive to push someone over the top to be proactive to replace systems instead of waiting for a failure or significantly inefficient system to be pieced together for another season. It has been a real success in saving money and lowering emissions; a perfect marriage of a program in its effectiveness to sell more equipment and deliver for the homeowners,” Herb states. “It was nice that the tax code recognized the importance of upgrading heating equipment, but this wasn’t a game changer. I don’t think one person decides not to upgrade because the tax credit goes away. It’s nice it was there, but it won’t affect people deciding to upgrade.”

“Upgrade and Save is one of our most effective tools for encouraging the modernization of home heating systems,” DeLair added. “We offer rebates to customers to replace older, inefficient equipment – our rebate for furnaces or boilers is $900, for tanks it is $500. The cost savings and emissions reductions has made it extremely popular. If you look at our program before the 25C tax credit, it was highly successful. I imagine it will continue to be very successful – I don’t think it will affect the rebate program, as our members market Upgrade & Save effectively. The core value of our program will stand strong on its own.”

Renewable Diesel – Another Route For Some

Renewable diesel (RD) is produced through processes similar to traditional diesel, utilizing the same renewable feedstocks as biodiesel. It is used primarily as a transportation fuel, at the moment, but NORA is currently conducting research on the efficacy of RD/BD blends for heating (read our June 2025 interview with Dr. Tom Butcher, Director, NORA Laboratory, “What’s Next in Boiler Technology”).

The availability of RD varies based on location. Chris Herb noted that a large distributor had announced they would be selling RD at a Connecticut terminal, which had begun to “whet the appetites” of members and corporate operations looking to reduce emissions. However, the company changed course and stopped offering RD, leaving members to travel to Albany for the nearest terminal location. Herb did note that there was a service station offering renewable propane for transportation, but that it doesn’t seem to be scalable at this time. “But it shows how our industry is preparing for the future,” Herb added, “when you add renewable diesel and renewable propane into the mix for the future of lower-carbon and net-zero fuels.”

DeLair commented that her members are looking at renewable diesel for transportation because of its drop-in properties, noting that fleets using RD typically need less maintenance, which can help offset the fuel’s higher cost. She also referenced NORA’s exploration of renewable diesel for heating, saying, “Our industry’s commitment to innovation is stronger than ever – much of the progress has been made possible through the research and development of NORA. Our members are using higher efficiency equipment, the integration of low carbon fuels – we always have to give NORA credit where credit is due. We wouldn’t be here without them.”

New York City, which is part of NYSEC’s coverage area, has embraced renewable diesel for transportation, as well as biofuels for heating. “Some of our members are marketing renewable diesel on a grand scale. They’ve surely embraced renewable diesel, as evidenced by New York City using renewable diesel in the ferries and municipal fleets. The City has been all in on biodiesel and now renewable diesel, and my members are supplying a portion of that fuel. In terms of having a city like New York using renewable diesel and biodiesel in its vehicles and schools, it’s certainly an endorsement of how well the product works, and the wisdom and vision to use something like this to reduce emissions.”

Chevron and Broco have partnered with NORA in the field testing of 100 percent renewable liquid heating fuels in the Northeast. “In this project, field trials will be completed with blends of 80RD/20BD as well as blends of 50RD/50BD. The reason for the use of biodiesel in the blend is to improve properties such as lubricity and elastomer swell,” Lawrence explained. “In addition, a blend of this type and not 100 percent renewable diesel would make use of already-built biodiesel production capacity, increase fuel availability, and potentially reduce cost. Other blend levels could also be considered. Tests at NORA with the RD80/B20 and RD50/B50 blends have shown very good results and blends of this type have also proven successful in truck applications.”

Brown notes that he is seeing great results with his customers using B50/RD50 blends, as the fuel is leaving heat exchangers so clean the result is virtually net-zero. “We’ll be able to showcase this to other state entities looking for movement on this. You can take two different renewable products, adjust the blend based on the economy, and still reach a net-zero goal. With RD/BD blends, the industry is offering a ‘plug-and-play’ fuel solution that, combined with appropriate equipment, significantly decreases carbon emissions for states’ reduction plans.

This Season’s Outlook on Pricing and Supply

With state standards increasing demand for biofuels in the region, distillate supplies at or below the bottom of the 5-year average, uncertainty over the Renewable Fuels Standard, pending guidance on the federal 45Z producers’ credit (and continued hope for a renewed 40A blenders’ credit), as well as pending or potential tariffs, international sanctions on Russian fuels, and the ongoing geopolitical crises in the Middle East and Ukraine, conversations naturally shifted to the cojoined issues of pricing and supply for the upcoming season.

All in all, our participants noted the potential for upheavals, but noted that this was nothing new for the industry. “We’ve been here before and it always works out,” was a common theme.

Chevron’s Lawrence put it succinctly, “We think the market will continue to evolve as the summer/fall season progress. Markets will find equilibrium, as they always do, and we look forward to helping our customers and partners continue to navigate this dynamic market.”

Brown reiterated that his company is prepared and stocked up, adding, “The real pressure is that the demand is so high, that we’ve seen creep in the price, which is real common, with the new mandates that were put out. A lot of production that has been reallocated – there’s a scramble for the supply; the demand is overwhelming with the increases from the states. That has raised prices a bit, but in time, when you see a quick hit from a mandate, with so many moving parts with the energy policies from the federal level – no one was going to be proactive from a production standpoint, waiting to see what was going to happen. But July 1, now it’s real – it takes a few months for large producers to keep up – I see it will make for a small term pinch in the market but by Q4 this year, prices will fall in line.”

Jonathan Hackett, Senior Director, Environmental Products of Global Partners, noted that “higher proposed volumes associated with the RFS, if finalized at similar levels, should encourage more production to come online. We also recently began offering customers the option of offsetting their fuel, helping organizations pursue their sustainability initiatives even as policy support for renewable energy, such as subsidies, declines. This provides a lower-cost path for customers to continue making an environmental impact.”

“This constant state of below average inventory of distillate is something built into the market; retailers and wholesalers are able to plan for it, and the history of our industry is that we’ve never failed in 100 years, and we won’t fail this year because supplies are low,” CEMA’s Herb said. “We have a century of experience – when electricity or natural gas fails; our industry never fails!”

Herb pivoted to tax credits, saying, “I think the federal government fumbled the transition from a blenders’ credit to a producers’ credit. It’s very unfortunate that our industry partners who represent producers wanted this change; now we are all suffering from it. The hope now is that there is more certainty and the RINS will start to compensate for some of this. Timing is an issue; it’s going to get tight toward the end of the year. We’re going to have little bit of a ride to get to the other side of this price potential and tightness in supply that the federal government has caused. We couldn’t all get on the same page. The wholesalers and distributers wanted a blenders credit, but the producers won. And now I think everyone is losing.”

Lacertosa, of NYSEC, agreed. “We’re always concerned to make sure there’s supply going into the season. I’m hearing there’s been some issues with supply because of the uncertainty of 45Z at the end of the last administration. From what I’ve been hearing, that will at some point clear itself up – that’s a function of the market. There will be product – there just may be some hiccups along the way – but that’s nothing new. All in all, our industry always figures it out.”

“There is concern, but we’ve been through this before,” said ESEA’s DeLair. “When you look at the lower than average distillate supply, political events, it creates uncertainty which could lead to tighter margins, higher costs. We’re watching it closely, and hope that as our members prepare for the season, they’re working through hedging strategies and varied sourcing options. I think it’s a short term issue, the market always has a way of working itself out.”

“We’ve seen disruptions before, but we always adapt,” said Quesnelle. “In Rhode Island, we’re fortunate to have access to fuel terminals in Providence, and our relationships with wholesalers are strong. That gives me confidence that we’re in a good position. But as always, anything can change.”

Looking Forward Toward More Success

There is a lot of enthusiasm for the future among the group of participants. They expect that consumer choice and market strategies will continue to support lower carbon fuels and higher efficiency equipment. They see the tangible benefits of an all-of-the-above energy strategy, and expect that in time, others will as well. They were also united in the need for the individual business owners to become more involved in their associations and their communities, and for them to spread the word about biofuel blends.

“Global’s strategy is to ensure our customers receive the right fuel at the right time to meet their specific needs. We currently offer several low carbon fuels—including biodiesel, E85, and renewable diesel—at select terminal locations for both compliance markets and discretionary blending. We’re continuously evaluating emerging options to best meet the evolving needs of our customers—whether that involves higher-level blends, new fuels, or documentation for environmental attributes,” concluded Global’s Hackett.

Brown urged “everyone across the Northeast and Tristate Regions to reach out and be part of the legislation, be part of the conversation about how these mandates get put in place. Dealers and wholesalers must prioritize learning, attending conferences, association meetings, and training programs. Successfully marketing and delivering higher biofuel blends isn’t just about compliance; it’s the pathway to the industry’s sustained growth and long-term success, and Broco Energy is committed to supporting this transition.”

“I’m proud that Rhode Island led the way with higher blend mandates,” Quesnelle reflected. “As an executive director, my main goal is educating the consumer. They need to understand what these changes mean and feel proud to be part of the solution. I’ve been advocating for biofuels in the statehouse for years. When other groups try to claim that biofuels will make homes smell like French fries, we need to make sure our message gets out. We’re family-owned businesses that are actively diversifying and taking action. We’ve been part of the solution for a long time—we just need to talk about it more.”

DeLair said, “we’ve always believed path to a low carbon future should be all-of-the above – fuel and technology neutral. Our members demonstrate that innovation does not belong to one form of energy over another. With cleaner fuels, high-efficiency equipment, and community engagement, we are making meaningful strides toward decarbonization—right now. We invite policymakers to recognize the value our industry brings to the table and to partner with us in building a practical roadmap that works for all New Yorkers.”

“I think the change in administration on the federal level has brought pause to a lot of people who we were pro-electrification and anti-fossil fuels. For instance, our Governor has made several comments regarding the need for natural gas and fossil fuels to be a part of the Connecticut energy mix, and our Commissioner of the Department of Energy and Environmental Protection has testified several times that Connecticut has adopted an all-of-the-above energy strategy. A year ago, that would have been unheard of. These are olive branches to us and our members,” Herb said. “If it weren’t for biodiesel we wouldn’t have a future. The solutions we have in the blue states is one that will ensure our viability for decades to come.”

“I ask the question to naysayers – how do we get to 2030 or 2050 in states that require emission reductions without biodiesel. Public officials are recognizing that they can’t get there without biodiesels, the fuels we sell. I am optimistic about the future. We are seeing policy opportunities that I haven’t seen in 20 years, and we want to take advantage of them to the benefit of the people we represent,” Herb concluded.

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