(National Energy and Fuels Institute/Biobased Diesel Daily) At an industry summit held during the Heating & Energizing America Trade Show Aug. 22, heating-fuel industry stakeholders ratified policy principles they say must guide federal, state or local emissions-reduction policies.
These “Principles for Equitable and Reliable Building Decarbonization” come as the costs and consequences of electrification mandates are becoming clear to policymakers and consumers alike.
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.
Specifically, it calls on government policies to:
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Protect consumer choice—allowing homeowners to select heating systems based on their family’s needs and budgets.
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Account for full lifecycle emissions—not just point-of-use, ensuring a complete and accurate environmental assessment to avoid shifting rather than reducing emissions.
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Encourage use of renewable liquid fuels—as immediate, cost-effective and scalable solutions to reduce emissions while utilizing existing infrastructure.
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Recognize the time value of carbon reduction—prioritizing immediate emissions reduction through renewable liquid heating fuels over electrification powered via a nonrenewable electric grid.
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Prioritize affordability—for vulnerable communities, seniors and rural Americans unable to bear the burden of higher electric bills and conversion costs.
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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.
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Prioritize residential energy efficiency—low-hanging fruit for both environmental performance and lower consumer energy bills.
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Support family businesses—preserving thousands of good-paying American jobs.
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Embrace innovation—avoiding prescriptive electrification policies that discourage development and deployment of more effective and affordable solutions.
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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, America’s liquid heating-fuels industry has reduced its emissions by 26 percent,” said Jim Collura, the president and CEO of the National Energy & Fuels Institute. “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, Massachusetts, 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 percent 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.
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.
The full resolution and policy principles are available here. READ MORE
by James Ochoa (AutoBlog) Industry leaders urged European Commission President Ursula von der Leyen to reconsider plans for phasing out fossil fuel-powered vehicles by the mid-2030s. -- According to new reports published by Bloomberg and Reuters, Europe’s automotive giants are sounding the alarm, warning that the European Union’s planned ban on combustion engines is no longer realistic and that climate rules could undermine the auto industry and the region’s supply chain.
In a joint letter, the leaders of both the European Automobile Manufacturers’ Association (ACEA) and the European Association of Automotive Suppliers (CLEPA) said that the European auto industry is “being asked to transform with our hands tied behind our backs,” as they urged European Commission President Ursula von der Leyen to reconsider the plans to phase out combustion-engined vehicles by the mid-2030s in the region.
They argue that the European car industry faces several issues, including higher manufacturing costs, an almost entirely dependent battery supply chain on Asia, unevenly distributed EV charging infrastructure, and the Trump Administration’s tariff policies against automotive imports.
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“Europe’s transformation plan for the auto industry must move beyond idealism to acknowledge current industrial and geopolitical realities. Meeting the rigid car and van CO2 targets for 2030 and 2035 is, in today’s world, simply no longer feasible,” Mercedes CEO and ACEA President Ola Källenius and Schaeffler executive CLEPA President Matthias Zink said in the letter.
“Instead, the current CO2 reduction path in road transport must be recalibrated to ensure it delivers on EU climate goals whilst also safeguarding Europe’s industrial competitiveness, social cohesion, and the strategic resilience of its supply chains.”
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“Technology neutrality should be the core regulatory principle, which safeguards that all technologies can contribute to decarbonization. EVs will lead the charge, but there must also be space for (plug-in) hybrids, range extenders, highly efficient internal combustion-engine (ICE) vehicles, hydrogen and decarbonized fuels,” they said.
“Better leverage of key transition technologies, such as plug-in hybrid vehicles, will be critical in meeting decarbonization goals, engaging consumers in the green transformation and serving export markets where demand for this technology will remain high.”
Final Thoughts
The letter comes a few months after the European Commission amended the CO2 emission reduction targets set for 2025 on May 8. The body voted 458 to 101, with 14 abstentions, to give automakers extra time to meet the targets, which has angered environmental organizations like the International Council on Clean Transportation (ICCT). READ MORE
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Text of the letter: The EU risks missing the turn on its automotive transition – September’s Strategic Dialogue is the chance to correct course
Dear President of the European Commission,
As automotive manufacturers and suppliers, we are committed to helping the EU achieve the net zero goal in 2050. Together, we have launched hundreds of new electric vehicle models and committed to invest more than €250 billion towards the green transition by 2030.
We want to make this transition work—but we’re frustrated by the lack of a holistic and pragmatic policy plan for the automotive industry's transformation.
The EU currently regulates manufacturers on the supply of new vehicles yet fails to provide the conditions to enable the transition. Europe faces near-total dependency on Asia for the battery value chain, an uneven distribution of charging infrastructure, higher manufacturing costs—including electricity prices—and burdening tariffs from key trade partners, such as the 15% duty on EU vehicle exports to the US. We are being asked to transform with our hands tied behind our backs.
As a result, the battery-electric vehicle market share is still far from where it needs to be—around 15% for cars, roughly 9% for vans, and 3.5% for trucks. Some EU markets are showing signs of progress, but a large chunk of customers remain wary of switching to alternative powertrains.
To make switching an obvious choice for a critical mass of European consumers and businesses, much more ambitious, long-term, and consistent demand-side incentives are needed—including lower energy costs for charging, purchase subsidies, tax reductions, and favourable access to urban space. Multiple drivetrain technologies, too, accelerate market acceptance and achieve decarbonisation targets in real-world conditions. Other markets are successfully using this approach already.
Europe’s transformation plan for the auto industry must move beyond idealism to acknowledge current industrial and geopolitical realities. Meeting the rigid car and van CO2 targets for 2030 and 2035 is, in today’s world, simply no longer feasible. Instead, the current CO2 reduction path in road transport must be recalibrated to ensure it delivers on EU climate goals whilst also safeguarding Europe’s industrial competitiveness, social cohesion, and the strategic resilience of its supply chains.
Successful decarbonisation means going beyond new-vehicle targets—it requires tackling emissions from the existing fleet (e.g. by accelerating fleet renewal), expanding fiscal and purchase incentives (including for company cars and vans), and introducing targeted measures for trucks and buses to level the total cost of ownership.
Successful economics means keeping manufacturers and suppliers profitable and competitive to fuel future investments and strengthen the automotive ecosystem. It also calls for simpler, more streamlined EU regulations to cut red tape.
Successful resilience means fostering conditions to invest smartly along the battery, semiconductor, and critical raw materials value chains. It also means developing longterm, strategic partnerships with reliable global allies to reduce dependencies.
If one of these dimensions fails, the whole transition breaks down.
The upcoming revision of the CO2 standards for cars and vans is an opportunity to correct the course and anchor in law much-needed flexibility, industrial perspective, and a market-driven approach. It is clear by now that penalties and legal mandates alone will not drive the transition.
Technology neutrality should be the core regulatory principle, which safeguards that all technologies can contribute to decarbonisation. EVs will lead the charge, but there must also be space for (plug-in) hybrids, range extenders, highly efficient internalcombustion-engine (ICE) vehicles, hydrogen and decarbonised fuels.
Better leverage of key transition technologies, such as plug-in hybrid vehicles, will be critical in meeting decarbonisation goals, engaging consumers in the green transformation and serving export markets where demand for this technology will remain high. But if the EU tightens existing rules that account for the driving distance plug-in hybrids (PHEVs) cover using electric power—the so-called ‘utility factor’, this could counterproductively give an advantage to our competitors. Dropping the potential utility factor restriction is the logical option, opening the industrial perspective for manufacturing technologies in Europe.
Beyond tailpipe emissions, manufacturers and suppliers have also made sizeable investments in driving down emissions from the manufacturing of vehicles and components. It’s worth considering if and how these efforts could be recognised as part of a more flexible decarbonisation approach. Incentivising innovation typically 3 creates stronger and broader value-chain contributions, strengthening the ecosystem. Options could include long-term solutions such as carbon storage and removal as well.
The CO2 regulation for heavy-duty trucks and buses must be reviewed as soon as possible, too. This distinct segment of the market needs robust business cases for all stakeholders in the commercial road transport sector to set the transformation off. This cannot wait until 2027.
Finally, the Commission must ensure that Europe retains its vital production capacity and technological know-how. Without policies that enhance European competitiveness to maintain manufacturing, the transition risks hollowing out our industrial base, putting innovation, quality employment, and supply chain resilience at risk.
The world has changed drastically since the current direction has been set—and the EU’s strategy for the automotive sector must change with it. We must move beyond the narrow assumption that this transition hinges solely on CO2 targets for new vehicles.
That’s why the upcoming Strategic Dialogue on the future of the automotive industry on 12 September is the moment for a change of tack. This is the EU’s last-chance saloon to adjust its policies for today’s market, geopolitical, and economic realities—or risk jeopardising one of its most successful and globally competitive industries.
We share a common destination, yet the journey requires more pragmatism and flexibility to keep the motor of Europe’s automotive sector running.
Yours sincerely,
Ola Källenius, President of the European Automobile Manufacturers’ Association (ACEA), CEO of Mercedes-Benz
Matthias Zink, President of the European Association of Automotive Suppliers (CLEPA), CEO Powertrain and Chassis at Schaeffler
READ MORE (emphasis added)