Mass. Oil Dealers Add Biofuel To Product Lines
Some heating oil dealers are selling bioheat fuel oil in Massachusetts, but by choice, not by requirement.
Massachusetts passed a law in 2008 - the first of its kind in the country - that would require increasing percentages of the bioheat fuel in every gallon of heating oil and diesel fuel sold in the state.
Bioheat fuels are blends of petroleum-based home heating oil and fuel that are produced using organic matter such as corn, soy, switchgrass, wood, vegetable oils and animal fats, according to the state’s website.
The law was supposed to kick in last year with a 2 percent bioheat requirement for each gallon. Under the law, the percentage was to increase to 5 percent by 2013.
But the state Department of Energy Resources, acting on a clause contained in the law, announced in June 2010 that the program would present an “unreasonable cost” to heating oil dealers.
The expiration of a federal tax credit for blended biofuels also played a role in the decision, the department said.
The department said it’s pursuing a voluntary bioheat program with the state’s oil dealers.
Market Opportunity
Michael Ferrante, president of the Massachusetts Oil Heat Council, said some dealers have chosen to include bioheat fuels in their product lines because they see a market for greener fuels.
“Some are using this is a way to reshape their business,” Ferrante said.
Ferrante thinks it would be difficult to regulate shipments of heating oil that cross state lines into Massachusetts to ensure they’re complying with minimum biofuel levels.
If 2 percent of every gallon of heating oil sold in Massachusetts was bioheat fuel, Ferrante said, that consumption would be reduced by 16 million gallons a year.
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