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OLR Bill Analysis
sHB 6412 (File 54, as amended by House "A")*
AN ACT CONCERNING A LOW -CARBON FUEL BLEND OF
HEATING OIL AND THE ESTABLISHMENT OF A BIOHEAT
ADVISORY BOARD.
SUMMARY
This bill requires heating oil sold in the state to be a low-carbon fuel
blend with a specified percentage of biodiesel that increases over time,
beginning July 1, 2022. The bill sets the minimum amount of biodiesel
in heating oil at 5% in 2022 and increases it on a schedule to 50% in
2035. These requirements replace a similar provision in current law
that requires an increasing proportion of biodiesel in heating oil, but
only if surrounding states adopt a similar requirement, a condition that
was never met.
The bill allows the Department of Energy and Environmental
Protection (DEEP) commissioner to temporarily waive the blending
requirements if she determines that they, at any time, (1) are not
feasible due to a lack of adequate biodiesel supply or (2) would result
in a financial hardship to consumers.
Under the bill, low-carbon fuel blended with heating oil must be
produced in accordance with industry-accepted quality control
standards. The bill requires low-carbon fuel marketers and producers
to provide a certificate of analysis before blending low-carbon fuel
with heating oil. The certificate must verify conformity with critical
specifications of designation D6751 of ASTM International or another
applicable ASTM specification for low-carbon fuel blends (see
BACKGROUND).
The bill allows the DEEP commissioner to adopt regulations, by July
1, 2022, on disclosure requirements for heating oil retailers regarding
the percentage or approximate range of low-carbon fuel blend
contained in the home heating oil delivered to consumers. The bill also 2021HB-06412-R01-BA.DOCX
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requires DEEP’s Comprehensive Energy Strategy (CES) to consider
several factors related to low-carbon fuel blends for heating oil and
effects on greenhouse gas emissions, beginning with the next CES
approved after October 1, 2021.
The bill eliminates the Distillate Advisory Board, which, under
current law, is a six-member board within the Department of
Consumer Protection (DCP). Under current law, if biodiesel blending
requirements take effect, the board is tasked with advising the DCP
commissioner on related issues, receiving petitions to waive biodiesel
blending requirements in certain circumstances, and annually
reporting to the Energy and Technology and Environment committees
on related issues.
*House Amendment “A” replaces the underlying bill, which
included the same schedule for biodiesel blending but retained the
Distillate Advisory Board (renamed as the “Bioheat Advisory Board”)
and related provisions on DCP’s administration of the requirements.
EFFECTIVE DATE: July 1, 2021
BIODIESEL REQUIREMEN T SCHEDULE
Under the bill, minimum biodiesel percentage requirements take
effect on the following schedule, each July 1:
1. 5% in 2022,
2. 10% in 2025,
3. 15% in 2030,
4. 20% in 2034, and
5. 50% in 2035.
Under the bill, heating oil meeting these requirements is a low-
carbon fuel blend, meaning a fuel meeting the standards for advanced
biofuels under the federal Renewable Fuel Standard Program,
requiring a 50% reduction in lifecycle greenhouse gas emissions, 2021HB-06412-R01-BA.DOCX
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including qualifying biodiesel meeting the most recent version of
ASTM International designation D6751 (see BACKGROUND).
COMPREHENSIVE ENERGY STRATEGY (CES)
Beginning with the next CES approved after October 1, 2021, the bill
requires DEEP’s CES to consider the following:
1. the reduction in greenhouse gas emissions resulting from low-
carbon fuel blends used in home heating oil on a life-cycle basis
and its possible contributions to the state’s greenhouse gas
emissions mandated levels;
2. the ability of a thermal portfolio standard to further emission
reductions on a lifecycle basis;
3. the relative value of the life-cycle emissions reductions achieved
by biodiesel and other low-carbon blends used currently in the
state compared to the value of future projected life-cycle
emissions reductions achieved by the retail heating oil industry
five, 10, and 20 years into the future using DEEP’s
contemporaneous projection of renewable energy utilized.
By law, the CES is required every four years and must be submitted
to the Energy and Technology Committee.
BACKGROUND
Federal Renewable Fuel Standard Program
The federal Renewable Fuel Standard program is a national policy
that requires a certain volume of renewable fuel to replace or reduce
the quantity of petroleum-based transportation fuel, heating oil, or jet
fuel. The program designates four renewable fuel categories, including
“advanced biofuels,” which are renewable fuels, other than ethanol
derived from cornstarch, that have lifecycle greenhouse gas emissions
that are 50% less than a 2005 petroleum baseline (40 CFR § 80.1401).
Advanced biofuels include fuels derived from soybean oil, distillers
corn oil and sorghum, and oil from annual cover crops.
ASTM International Designation D6751 2021HB-06412-R01-BA.DOCX
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ASTM International (formerly known as the American Society for
Testing and Materials) is a standards development organization.
Designation D6751 covers biodiesel fuel blend stock for use as a blend
component with certain distillate fuels. The specification generally
prescribes the fuel’s required properties at the time and place of
delivery.
COMMITTEE ACTION
Energy and Technology Committee
Joint Favorable Substitute
Yea 25 Nay 1 (03/02/2021)
Appropriations Committee
Joint Favorable
Yea 37 Nay 11 (05/03/2021)