Liquid heating fuels industry share policy principles for building decarbonization

Written on: August 26, 2025 by ICM

At an industry summit held during the Heating & Energizing America Trade Show (HEAT Show) on August 22, heating fuel industry stakeholders ratified policy principles—”Principles for Equitable & Reliable Building Decarbonization”—they say must guide Federal, State or local emissions reduction policies.

Adopted by industry leaders from across the Northeast and Mid-Atlantic regions, the resolution builds on the heating oil industry’s voluntary commitment to reduce carbon emissions, primarily through broad adoption of renewable liquid heating fuels. These fuels have achieved historic, immediate and cost-effective emission reductions and emphasize that successful decarbonization policies should support the nation’s heating oil marketers, many of whom are multigenerational family businesses, according to National Energy & Fuels Institute (NEFI).

Specifically, it calls on Government policies to:

• Protect consumer choice—allowing homeowners to select heating systems based on their family’s needs and budgets.
• Account for full lifecycle emissions—not just point-of-use—ensuring a complete and accurate environmental assessment to avoid shifting rather than reducing emissions.
• Encourage use of renewable liquid fuels—as immediate, cost-effective and scalable solutions to reduce emissions while utilizing existing infrastructure.
• Recognize the time value of carbon reduction—prioritizing immediate emissions reduction through renewable liquid heating fuels over electrification powered via a non-renewable electric grid.
• Prioritize affordability—for vulnerable communities, seniors, and rural U.S. consumers unable to bear the burden of higher electric bills and conversion costs.
• Maintain energy reliability—heeding warnings from grid operators about system constraints and ensuring the U.S. sustains a grid robust enough to win the global race for artificial intelligence (AI).
• Prioritize residential energy efficiency—low-hanging fruit for both environmental performance and lower consumer energy bills.
• Support family businesses—preserving thousands of good-paying jobs.
• Embrace innovation—avoiding prescriptive electrification policies that discourage development and deployment of more effective and affordable solutions.
• Be flexible and adaptive—accounting for differences in climates, energy resources, infrastructure and economic conditions and embracing realistic implementation goals.

“Through investments in biofuels and deployment of high efficiency systems, the U.S.’s liquid heating fuels industry has reduced its emissions by 26%,” said Jim Collura, NEFI President & CEO.

“These businesses are delivering safe and reliable home comfort with superior environmental outcomes, and without extraordinary conversion costs.”

The new resolution comes at a critical juncture, as U.S. power grid watchdogs warn of unprecedented reliability challenges from electrification policies. These warnings were issued before fully accounting for explosive growth in energy demand from data centers, with artificial intelligence alone expected to add the equivalent of 28 million households’ worth of energy demand to the grid by 2028.

Industry leaders also emphasized that the resolution positions them as essential partners in any successful decarbonization effort.

“Our industry is ready to work with anyone who shares our commitment to pragmatic, achievable solutions,” said Charlie Uglietto of Cubby Oil & Energy of Wilmington, MA, Co-Chair of the working group that helped draft the policy principles.

When combined with a modern high-efficiency heating system, renewable liquid heating fuels—a blend of heating oil and biodiesel or renewable diesel—can deliver over 80% lifecycle greenhouse gas reductions. It also supports farmers and rural economies, and tens of thousands of rewarding careers in the agriculture, biofuel and home energy sectors, said NEFI.

The resolution will now be submitted to regional, State and local heating fuel associations throughout the Northeast and Mid-Atlantic, thereby establishing a unified industry voice for engagement with policymakers at all levels of government.

Full resolution and policy principles are available at  https://nefi.com/_files/2025_HEAT_Show_Summit_Resolution.pdf.