depends on sound federal policy that reduces – not increases – regulatory burdens. Wholesale and retail marketers of these fuels are looking for assurances from the agency that it is serious about promoting deployment of larger volumes and higher blends of biofuels. Robust implementation of the RFS is one area in which the administration can signal this commitment and thereby inject confidence into the entire value chain, from farmers and biofuel producers all the way down to American homeowners and Main Street businesses. The heating oil market can accommodate extremely high concentrations of biofuels into its fuel supply. America’ s residential heating oil market serves 4.79 million households with a robust infrastructure that has demonstrated the capacity to handle billions of gallons annually. Approximately four billion gallons were used in the most recent winter of 2024-2025.
Also consider that in most cases, homeowners can utilize blends of 20 %( B20) or higher with nominal system modification, achieving superior environmental performance without costly heating system conversions.
Because of the outsized role heating oil plays in the Northeast relative to other parts of the country, our industry has become an essential partner as states and localities look to fulfill their goals of reducing emissions without increasing household energy costs. Indeed, states throughout the Northeast and Mid-Atlantic regions have enacted or are actively considering an array of policies to require or incentivize increased use of biofuels in the heating oil sector. The RFS helps ensure these American-produced fuels can compete dollar-for-dollar against petroleum fuel and incentivizes fuel suppliers and distributors to invest in related infrastructure and supplant conventional heating oil with biodiesel or other advanced biofuels. Thus, to further the goals of Congress and this administration’ s commitment to unleashing American energy, NEFI supports the proposed increases in the volume requirements for biomass-based diesel but strongly opposes the proposed changes to the definition of“ heating oil” and the new definition of“ renewable fuel oil.” The proposed regulatory changes make significant changes to the regulations that the heating oil industry has been operating under for 15 years without explanation beyond a claim that EPA is“ clarifying” requirements. But the proposed regulatory language could be read to impose burdensome requirements on fuels that have long been used in the heating oil market and to restrict innovation in the sector, moving backwards from the advances the industry has made to incorporate biofuels into“ home heating oil” as Congress provided and intended.
Imagine asking millions of American homeowners to sign affidavits about their heating oil use – this is the type of impractical burden these changes could impose. We further urge EPA to revise the regulations related to fuels used in the heating oil market to ensure sufficient availability and choice and to continue to support innovation and growing volumes of American biofuels for use in the heating oil market.
… Additionally, NEFI aligns itself with comments submitted by the Advanced Biofuels Association( ABFA) regarding EPA’ s proposed 50 percent RIN discount for foreign fuels and domestic fuels produced from foreign feedstocks. This provision would further constrain access to renewable fuel supplies in the Northeast, particularly given our geographic constraints. The Northeast liquid fuels market relies heavily on waterborne fuel delivery and is distant from regions where most domestic feedstocks and biofuels are produced.
Moreover, as ABFA notes, the recently enacted One Big Beautiful Bill( PL 119-21) already provides substantial incentives for domestic feedstock use, making EPA’ s proposed RIN discount both redundant and counterproductive. Trade policy tools are better suited to address concerns about foreign competition while preserving the flexibility needed for effective negotiations with trading partners. The RIN discount would result in substantial market uncertainty and disruption and potentially increase fuel costs for our members and their customers. NEFI urges EPA to withdraw this provision entirely and allow existing tax incentives and trade policy to address domestic production priorities.
ON SECTION 401 OF THE CLEAN WATER ACT
Here, slightly edited for clarity and length, is the Aug. 6 NEFI letter to EPA, commenting on proposed reforms to expedite natural gas pipeline expansion:
We are closely monitoring the debate over Section 401 [ of the Clean Water Act ] and evaluating its impact on our industry, especially its role in preventing or delaying the buildout of new natural gas pipelines in New York and New England. With respect to this matter, there is a recurring misconception used to justify these projects and the broader need for Section 401 reforms: that more natural gas is needed to displace so-called“ dirty” home heating oil in the Northeast. Respectfully, this view is outdated and misleading. These comments serve to address this misinformation.
The transformation of our industry over the past decade represents one of the most successful environmental achievements in the energy sector, driven largely by private-sector innovation rather than government mandates. Since 2012, Northeast states from Maryland to Maine, where 85 percent of the nation’ s home heating oil is used, averaging four billion gallons annually, have transitioned to ultra-low sulfur heating oil( ULSHO) with a sulfur content of 15 parts per million( ppm) or less. This shift has achieved a 99 percent reduction in sulfur content and sulfur dioxide emissions relative to earlier benchmarks, while effectively eliminating particulate emissions, which are primarily sulfate-based.
Research from Brookhaven National Laboratory confirms that ULSHO systems are engineered for“ Zero Smoke” performance, rendering them roughly as clean as natural gas. Additionally, the dramatic sulfur reduction minimizes buildup within heating systems, promoting cleaner, safer, and more efficient operation. Modern high-efficiency liquid-fuel-fired systems dramatically outperform older equipment, offering potential fuel savings of 25 to 30 percent or more.
Our industry has also led the way in integrating renewable fuels into residential oilheat. Blending ULSHO with advanced biofuels such as biodiesel or renewable diesel lowers greenhouse gas emissions, supports American agriculture, enhances regional
www. fueloilnews. com | FUEL OIL NEWS | SEPTEMBER 2025 27