Biodiesel Heating Plans To Be Mulled

By BENJAMIN SARLIN, Special to the Sun
January 24, 2008

Homeowners, businesses, and city government could be forced to switch to heating fuel containing biodiesel under two City Council bills being debated today. While a tax credit announced this week by Governor Spitzer would cover the cost for residential buildings, private businesses and city buildings would see an increase in heating expenses using the more expensive bioheat.

The two pieces of legislation, one from Council member Jim Gennaro and the other from Council member David Yassky, would require heating oil suppliers in the city to deliver fuel containing increasingly higher levels of biodiesel — a carbon-based fuel derived from vegetable oils and animal fat that generates less carbon emissions than regular heating oil. Under each bill, all heating oil delivered to buildings would have to contain 5% biodiesel by 2009, 10% by 2011, and 20% by 2013.

Buildings operated by the city would have to adjust to the requirements faster. While Mr. Gennaro's bill contains the possibility of waivers for buildings that could provide excuses for not complying with the requirements, Mr. Yassky does not offer such an out. Mr. Gennaro's bill would also limit the amount of sulfur allowed in heating oil.

"It's the most significant bioheat bill in the country," Mr. Gennaro said of his proposal. "There are a lot of benefits to it. We have a concrete blueprint as to how we'll be the best bioheat city in the nation. In New York City, 79% of greenhouse gas emissions come from buildings so it's important to go there and get those carbon reductions." He added that bioheat also reduces the amount of soot in the air, a trigger of asthma.

The legislation comes on the heels of Mr. Spitzer's new budget proposal, which includes a tax credit for bioheat used for residential purposes that would reduce the cost of the fuel for many consumers. It is not immediately clear, however, how much the price differential would be for private and government buildings using the new bioheat. According to the state policy director of the New York League of Conservation Voters, Josh Nachowitz, fuel with biodiesel can cost between 15 cents and 30 cents more a gallon than standard home heating oil, depending on the quality of the fuel. Mr. Gennaro says he expects the difference to be smaller — three to four cents a gallon — and that prices would come down further as the new demand for fuel creates an economy of scale.

Biodiesel Heating Plans To Be Mulled

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