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Market Trends Minimize
Market Trend - Tuesday, June 22, 2010

Since 2006 there have been many changes in the biodiesel marketplace both in government and industry. The EPA will now enforce RFS2 beginning in July 2010 mandating 1.15 Billion Gallons of biodiesel use for 2009 and 2010 as we move towards the goal of 1 Billion gallons per year (BGY) in 2012. The IRS incentive of $1 per gallon in effect since 2004 encouraged the production capacity of biodiesel plants in the U.S. to grow to over 2 BGY, but it expired in Dec 2009. When the incentive is reinstated the marketplace will come out of its funk which has been in place since early 2009 as market uncertainty grew and tens of thousands of workers were laid off and plants closed.

 
Regulatory Infrastructure - Tuesday, June 22, 2010

The National Conference on Weights and Measures (NCWM) is divided into four regional associations(CWMA, NEWMA, SWMA, WWMA). Since the mid 1800’s, NCWM provides a state based forum assisted by the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) to enforce “equity in the marketplace”. State Weights and Measures (W&M) organizations develop standards for conducting commerce and provide guidelines to legislatively adopt and enforce a level playing field for buyer and sellers to conduct business. Standards for fuels are regulated (by most states) to insure that manufactures produce products “fit for use” .

  Follow your states' progress by selecting it on this page.

 
State Mandates for Ultra Low Sulfur BioHeat - Tuesday, June 22, 2010
In September 2009, oil heat leaders met in Baltimore to discuss how they were to compete against the natural gas industry, having lost over a billion gallons of market share in the last ten years. The current heating oil market in the National Oilheat Research Alliance (NORA) states, predominantly consumed in the Northeast and Mid Atlantic, is under competitive pressure because of the comparative cleanliness and lower cost of natural gas. The new focus is on cleaning up the 7 billion gallon heating oil market in the 23 NORA states of MA, NH, VT, MA, RI, CT, NY, NJ, PA, DE, DC, MD, VA, NC, SC, KY, OH, IN, MI, WI, NV, ID, OR and WA.
 
The alliance is promoting the reduction of sulfur content and increasing the biodiesel content in heating oil. They plan to use the state mandate process to accomplish the introduction of this improved fuel into the marketplace. These NORA states voted to introduce legislation in their states to lower the sulfur content in their fuel to 15 ppm sulfur (ULSD) and to increase their biodiesel content by up to 20%. By achieving these levels of sulfur and biodiesel they plan to market a product that is cleaner than natural gas (1).  
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