Today, the sulfur content in heating oil can be greater than 3,000 parts per million and, even though some distributors are selling Bioheat, very little biodiesel overall is blended into the nationˇ¦s heating oil supply. While U.S. EPA regulations for 2007 and 2010 brought about ULSD requirements for on- and off-road diesel fuel, respectively, sulfur content in heating oil is virtually unregulated and varies from location to location.
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Increasing Bio Content
When asked if the decision to incorporate 2 percent biodiesel beginning in July was tailored around the Massachusetts biodiesel mandate, which has the same start date, Jim Townsend of Danvers, Mass.-based Townsend Oil and Propane, says the timing was coincidence.
ˇ§At the summit, no dots were connected between the Massachusetts mandate and this resolution,ˇ¨ Townsend says. In April 2009, Townsend Oil and Propane introduced Biopure, heating oil with 2 percent biodiesel blended by its supplier, which is BQ-9000-certified, he says, adding that Biopure is delivered to between 12,000 and 13,000 accounts in Massachusetts and New Hampshire. ˇ§In our company alone weˇ¦ve replaced 250,000 to 300,000 gallons of heating oil on an annualized basis by going to 2 percent biodiesel heating oil,ˇ¨ Townsend says. As a Massachusetts fuel dealer, Townsend Oil and Propane would have eventually moved to 2 percent biodiesel to comply with the state regulations.
Michael Devine, formerly with Devine Bioheat and now CEO of the Earth Energy Alliance, spoke at the meeting on behalf of the National Biodiesel Board. He says the B2 figure came about because itˇ¦s a conservative jumping off point. ˇ§It gives people the ability to look at the infrastructure, how to integrate it, make sure thereˇ¦s sufficient distribution, and allows entrepreneurship to develop further,ˇ¨ he says, adding that the goal is to begin with B2 but to move to B5 ˇ§as soon as possible.ˇ¨ The heating oil spec, ASTM D396, already allows for up to 5 percent biodiesel without notice.
ˇ§I ran an oilheat company for a number of years, and itˇ¦s no small thing to get a chapter to come together on an issue,ˇ¨ Devine tells Biodiesel Magazine. ˇ§So to get 24 states to come together on a resolution to improve its fuel, to improve its image, is an impressive accomplishment.ˇ¨
Despite how impressive this resolution is, almost everyone agrees that such a private industry commitment cannot be fulfilled without mandatesˇXeither many individual state mandates or one overarching federal standard. Some say the federal route would be the simplest way to achieve a uniform, across-the-board bioheat mandate, but the federal red tape rigmarole of congressional approval plus the mire of EPA implementation as evidenced most recently for RFS2 leads stakeholders to believe that state mandates are really the only practical way to go.
After the Baltimore meeting in which the resolution to incorporate increasing amounts of biodiesel in heating oil was drafted, those in attendance were expected to go back to their respective states to build coalitions and lay the groundwork for expediting a bio mandate. Cota says the goal is for each state to draft its own bill, but many states appear to be working with others to draft the language. ˇ§We all made a commitment to go back to our states and make this happen,ˇ¨ he says.
Ed Burke with the Chelsea, Mass.-based Burke Oil says heˇ¦s heard that many states will hop on the mandate wagon as soon as three other states implement one. In an area such as the Northeast, which is geographically compact yet densely populated, this is an important concept. Townsend says Massachusetts oil dealers can pick up fuel in New Hampshire, Rhode Island, Connecticut or New York, so if any one of those supply points does not have the available mandated fuel (e.g., B2 heating oil), this could mean trouble logistically. ˇ§We would need the [Massachusetts] mandated fuel available outside of Massachusetts,ˇ¨ Townsend says. Cota elaborates on this by saying, ˇ§We all have our own issuesˇXlocal and stateˇXbut we cannot be an island, especially in Vermont, because then we canˇ¦t go out to Massachusetts or New York to receive fuel. We all have to have similar standards. In Vermont, we have 140,000 oilheat customers who use 100 MMgy of heating oil. If we created specs or standards that are different than others, it would be foolish.ˇ¨ He says that the likelihood of any mandates in the Northeast being passed by July 2010 is slim to none, except for Massachusetts, which already has one in placeˇXa contentious one, at that.
After EPA released its proposed rule for RFS2 implementation, in which soy biodiesel was raked over the coals with respect to its lifecycle GHG emissions, Massachusetts made the move to only allow waste-based biodiesel to qualify under its mandate. Burke says, ˇ§It was nuclear war here when the state announced only waste-based biodiesel would qualify.ˇ¨ He adds that biodiesel from waste material is cheaper for him and for his customers though. The state is moving forward with July implementation of its biodiesel mandate, using ˇ§early action credits,ˇ¨ and once EPA does release its final RFS2 rule, state leaders may revise its ˇ§waste-onlyˇ¨ policy. If the state doesnˇ¦t change, however, then it may be tricky to get other Northeast states on the same page if their legislators donˇ¦t feel the same way. ˇ§It will make for some interesting supply situations for a while until everyone is onboard,ˇ¨ says Bob Hedden, executive director for the oilheat manufacturers association, educational director for NORA and independent industry consultant. ˇ§Distribution systems are not set up to respect state lines at all. A lot of Vermont dealers pick up fuel in Albany, N.Y., so if New York State passes a bill but Vermont doesnˇ¦t, it can create some problems.ˇ¨
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