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NYC 2% Bioheat® Mandate is Here

October 2nd, 2012 | by: Steve Brenner

NYC – Proud 2B2

Leading the Movement

Beginning October of 2012 all heating oil sold within New York City will contain at least 2% biodiesel, also known as B2. New Yorkers are “Proud 2B2” with this mandate, which will annually replace up to 20 million gallons of petroleum with an equal volume of renewable, sustainable, domestically produced biodiesel.

New York City Mayor, Michael Bloomberg, signed this groundbreaking mandate into law on August 16, 2010. The legislation is known as “Local Law 43 of 2012.” Since then, legislation is being considered in Albany to expand the city’s 2 percent biodiesel mandate to the entire state on July 1, 2013. New York City is already the nation’s largest municipal user of biodiesel and has now become the catalyst for positive change in all neighboring states. Paul Nazzaro, founder of Advanced Fuel Solutions and Bioheat® advocate states, “New York City’s B2 mandate exemplifies their leadership both locally and globally as a community in proactively improving our environment and economy through their commitment to Bioheat® and biodiesel in general.”
U.S. refiners will be required to produce 1.28 billion gallons of biodiesel in 2013, increased by the EPA from the current 1 billion gallons. The Obama Administration approved the EPA’s recommended increase under the Energy Independence and Security Act of 2007, which required a minimum 1 billion gallon volume annually and calls on the EPA to increase requirements, as needed, after considering environmental, market and energy-related factors.
Biodiesel mandates around the world are growing in quantity, as is the percentage of biodiesel required in the blend:

Americas

  • Argentina
has a B7 biodiesel mandate in place and is mulling moves to increase this to at least B10 by 2015.
  • Brazil has a B2 biodiesel mandate, scheduled to increase to B5 in 2013.
  • Canada
 has a Renewable Fuel Standard for B2 biodiesel. Canada introduced the 2 percent biodiesel mandate as of July 1, and the Canadian Renewable Fuels Association and the Canadian Truckers Alliance are locked in a debate over it.
  • Chile
has a B5 biodiesel target in place, no mandates.
  • Costa Rica
has a B20 biodiesel mandate in place.
  • Paraguay
has a B1 biodiesel mandate in place.
  • Peru
has a B2 biodiesel mandate in place and was expected to move towards B5 biodiesel by 2012.
  • Uruguay
has a B2 biodiesel mandate in place, expected to move to B5 in 2012.

Europe

  • EU-27 currently has a 5.75 percent mandate directive in place, and will move to 10 percent by 2020, but 30 percent of the target would be met by electric cars or trains, with the remainder to come from biofuels.

Asia-Pacific

  • Australia New South Wales has a B2 biodiesel mandate in place.
  • China
 seeks to move to a 10 percent biofuels mandate by 2020, and currently has a 15 percent overall target for 2020.
  • Fiji has recently approved a voluntary blend of 5% biodiesel with an eye on a mandate within the next 12 months. Oil companies are pulling out of the country because they’re finding that supplying islands so far from oil sources isn’t profitable.
  • India
 has set a goal of 20 percent for all biofuels content by 2017 – it is highly doubtful that they will reach the target.
  • Indonesia
has an on-and-off 2.5 percent biodiesel mandate.
  • Malaysia’s B5 blending mandate kicked off in June, 2011. The program begins in Putrajaya and will be phased in over time throughout the rest of the country. biodiesel will be price controlled while the government has recently removed the subsidy on fossil diesel.
  • New Zealand’s national government said it may scrap a $36 million biofuels subsidy program because, with only $700,000 paid out in tax credits, it is concerned that biofuels are uneconomic. The government previously had moved away from a biofuels mandate in 2008 and instead offered tax credits on biofuels that lower the price of the fuels.
  • South Korea
currently has a B2 biodiesel mandate in place. The 2011 introduction of a B2.5 biodiesel mandate is expected to boost demand for imported Malaysian palm oil for use as fuel. Malaysian palm oil imports accounted for 32.2% of South Korea’s oil imports during 2010. Palm oil is beginning to make in-roads in the Korean market for cooking as well.
  • Taiwan
has had a B1 biodiesel mandate in place since 2008.
  • Thailand’s energy ministry raised the mandatory biodiesel blend to 3% in April 2011 from the previous 2%, based upon an increased supply of crude palm oil available.

Africa

  • Mozambique
 policy mandating the blending of biodiesel has been sent to the President’s Cabinet for approval that includes both blend levels and deadlines for implementation.

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