Written on: September 15, 2025 by Paul J. Nazzaro
The time to come together is now. At the heart of this shift is the rise of Bioheat® fuel, and more importantly, the domestic biodiesel that makes it possible. Whether you’re a fuel dealer, wholesaler, terminal operator, association leader or a producer, we all have a shared stake in getting this right. The good news is we already have many of the pieces in place—we just need to align them.
Why now? One of the biggest catalysts for this moment is the transition from the long-standing Blender’s Tax Credit (BTC) to the Clean Fuel Production Credit (CFPC), which officially took effect in January 2025. Unlike the BTC, which primarily rewarded blending activity, the CFPC takes a more forward-looking approach, focusing on lifecycle carbon intensity. This puts the spotlight on cleaner, traceable and verifiable fuel supply chains, which puts biodiesel producers in a new position of influence—and selectivity.
Producers now must think more like data scientists than just blenders. They’re building models, optimizing feedstocks and evaluating logistics with a new level of precision. With the announcement of increases to Renewable Volume Obligations (RVOs), this sets the stage for increased blending activity across the board.
That’s where we come in.
Heating Oil’s Moment to Lead
Historically, producers have sent the bulk of their biodiesel westward—thanks largely to California’s lucrative Low Carbon Fuel Standard (LCFS) program. However, the landscape is shifting. Demand is heating up across a wider swath of sectors: heating oil, marine, rail, fleet transportation and even aviation. Markets that may not have California’s credits offer something just as powerful: infrastructure, seasonality and trusted partnerships.
This is our sweet spot. In the heating oil sector, we already have so much of the foundation in place:
We’re not starting from scratch. We’re standing on decades of experience and hard-earned market position. What’s needed now is to signal to producers that we’re serious, we’re ready and we’re in this for the long run.
Busting the Supply Myth
Let’s clear the air on something: The idea that biodiesel is difficult to source is outdated. Supply is out there, but like any good business transaction, what producers want is certainty—and that starts with communication.
They want to know:
This is our opportunity to step up and show them that our market is worth investing in.
Take the First Step
Start with a self-assessment. Where are you today? Are you blending B5? B10? B20? Higher? What are your seasonal volume requirements, especially during your peak delivery months—November through March?
Run those numbers and use them as a conversation starter with your wholesale partner. From there, you can approach producers together and speak with a clearer, unified voice.
You don’t need to go it alone. In fact, you shouldn’t. Pull in neighboring dealers. Work with your State association. Coordinate your outreach and messaging so that biodiesel producers hear not just individual voices, but a regional chorus. That’s how you get attention. That’s how you build leverage.
Producers Want Partners, Not Purchasers
Here’s something important to remember: Producers aren’t looking for one-off deals or short-term wins. They’re looking for ratable demand—predictable, steady orders that allow them to plan rail shipments, allocate inventory and operate efficiently.
That’s what makes the East Coast heating oil market such a compelling opportunity—we offer repeatable demand, consistent usage patterns and existing infrastructure. We just need to speak with clarity—and confidence.
It’s also worth asking your wholesaler and terminal partners:
These aren’t confrontational questions, they’re partnership-building conversations, and the sooner they start, the better positioned we’ll be come heating season.
Time Is Not On Our Side
Let’s be honest—Fall is not the time to begin these conversations. By October, most of the supply chain has already committed their barrels. If we want to be taken seriously by producers, we need to engage in Spring and Summer—when planning happens, when railcars are allocated and when terminals still have space to consider storage and blending adjustments.
The CFPC is already beginning to shape producer behavior. Meanwhile, Federal programs, such as the Dept. of Energy’s Decarbonizing Off-Road, Rail, Marine & Aviation (DORMA) initiative, are allocating resources to the very sectors we share. These programs aren’t abstract—they’re pointing directly to the markets we touch.
On the State level, we’re seeing continued momentum:
Internationally, carbon reduction requirements in maritime shipping—especially in the EU—are pushing demand for sustainable fuels even higher. This means the competition for clean gallons is only going to grow. We can’t expect to grab what’s left over. We need to stake our claim now.
Let’s Not Miss Our Window
Think about where we are today: We have the policy tailwinds, the logistics infrastructure and customers ready for cleaner fuels without the burden of new equipment. All we need is the collective will to make it happen. If we align, we unlock new supply. If we stay fragmented, we risk getting left behind. It’s really that simple.
A Message to Every Link in the Chain
To the fuel dealers out there: Talk to your wholesalers. Ask the tough questions. Share your volume estimates. Push the conversation forward.
To the wholesalers: Coordinate with terminals. Explore new supply sources and facilitate connections to producers looking east.
To the producers: Raise your hand. Make yourselves known. The heating oil industry is ready to engage—and we’re looking for partners who want to go the distance.
To our associations: Now is the time to amplify this message. Aggregate data. Educate your dealer members and act as the voice of a region that is ready, willing and able to become a national model for low-carbon heating fuel adoption.
A Final Thought
Bioheat® fuel isn’t just a product—it’s a movement toward cleaner energy, a stronger domestic supply chain and a better legacy for our industry. Still, we won’t get there with business as usual. We’ll get there by speaking up, reaching out, and showing up—together.
Let’s not wait for the market to shape us. Let’s shape it ourselves.
Stronger together. Let’s secure our future—one gallon and one relationship at a time. ICM
Paul Nazzaro, a pioneer in transitioning home heating oil to Bioheat®, has a proven track record of elevating middle distillate fuel quality from average to high performing. Through intelligent oversight and advanced fuel additive technologies, Nazzaro has empowered the industry to adopt cleaner, more efficient solutions, redefining heating oil’s role in a sustainable, low-carbon future. Learn more at yourfuelsolution.com.
