New York State Enacts Low-Carbon Heating Fuel Law

In New York, the state took a major step forward on the path to net-zero emissions, when Governor Kathy Hochul signed a bill phasing in a requirement for all heating oil sold in state to contain 20% biodiesel. Once fully implemented, the new law will reduce New York’s annual petroleum diesel consumption by approximately two hundred million gallons per year, cutting the state’s annual carbon emissions by approximately 1 million metric tons.

Biodiesel is an alternative fuel made from domestically produced low-carbon resources such as soybean oil or used cooking oil. On average, biodiesel reduces CO₂e greenhouse gas emissions by 74% versus petroleum diesel. The new law calls for increasingly higher blends, starting with 5% statewide by July 1, 2022, then phasing up to 10% in 2025 before the 20% requirement takes effect in 2030. A 5% standard has been in place for New York City and Long Island since 2017, and some fuel dealers are already selling blends as high as 50% (B50).