Comments Submitted to the Maryland Department of the Environment Re: Clean Heat Standard

February 27, 2026

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(Clean Fuels Alliance America) Clean Fuels Alliance America (Clean Fuels) is the U.S. trade association representing the entire supply chain for biomass-based diesel. Our members produce and distribute biodiesel, renewable diesel, sustainable aviation fuel, and Bioheat® fuel for thermal space heating. Our membership includes over 100 farmers, producers, marketers, distributors, and technology providers, and many are members of environmental organizations supportive of state and local initiatives to achieve a sustainable energy future.

We congratulate Maryland for being the first state in the nation to develop – and soon implement - a Clean Heat Standard (CHS). We agree with The Regulatory Assistance project’s presentation several years ago which opined that a CHS would be “the largest arrow in the state’s quiver” to decarbonize the state’s thermal heat sector. We applaud MDE for its open and inclusive CHS stakeholder process and offer these brief comments in reference to the most recent presentation on GREET. We look forward to offering more specific comments when the draft CHS regulations are released. We are optimistic that the draft will incorporate lessons learned from current LCFS programs and proposed CHS programs in other states – lessons that show that a CHS, properly drafted, will be the most cost-effective option in immediately reducing carbon emissions from the building sector.

We heartily endorse MDE’s proposed use of the so-called GREET model for lifecycle carbon inventory accounting. Argonne National Laboratory’s GREET model is the gold standard for GHG Accounting and is the methodology used by the United States Environmental Protection Agency, it is recommended by the UN IPCC and used by virtually every jurisdiction with climate policies that require inventory reporting. In order to ensure affordability, the program must not choose winners and losers and instead rely on accurate and peer-reviewed science and technology-based information to guide the Department as it strives to meet its carbon reduction targets.

Furthermore, the Argonne GREET model has been extensively peer-reviewed and cited in numerous, well-established scientific papers. Variance from well-established GHG accounting methodologies can result in significant and unintended consequences. For instance, the New York State Climate Leadership and Community Protection Act (CLCPA)requires its own GHG accounting methodology which does not credit the biogenic uptake of emission reductions from biofuels produced out-of-state. Crediting biogenic uptake is a standard part of well-established GHG accounting protocols in California, Oregon, Washington, and New Mexico, and virtually every other state and jurisdiction with climate change programs. They do this because it is a scientifically sound practice that meets IPCC accounting requirements. Ignoring the peer-reviewed science behind GHG accounting is a significant impediment to reducing consumer costs, as well as reporting consistency with GHC accounting in other states (should Maryland decide to link with other state programs) and will have no correlation to carbon reduction programs relative to federal programs. A “go it alone” approach is counter to a collaborative, multi-jurisdictional approach to tackling climate change, which virtually all jurisdictions agree is the only feasible way to make meaningful progress toward reducing GHG emissions. Clean Fuels is urging New York to reassess their accounting methodology and, in fact, the New York State Energy Plan, released at the end of last year, recommends the state utilize the GREET model in some applications in place of the CLCPA requirements.

We also applaud the apparent decision not to include ILUC provisions which we believe are based on inexact scientific research and evidence. ILUC was not included in recent Section 45Z production credit regulations proposed by the IRS for biofuels produced after December 31, 2025. We suggest that MDE consider following the RFS rules which use aggregate compliance for US and Canada pathway compliance for any other countries of origin.

As we have in the past, Clean Fuels is happy to provide assistance to MDE as it develops this important program. We look forward to offering additional comments when the draft package is released. READ MORE

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Excerpt from Clean Fuels Alliance America: Thank you for the opportunity to provide comments to the MDE CHS GREET presentation. The comments below are in line with the comments we had previously submitted (attached) on GREET. We are pleased that Maryland – like most other jurisdictions (including now apparently New York) - utilize the general concepts of the GREET model in determining life-cycle emissions.

Several references to ILUC were made during the April 22^nd presentation. We believe that a Maryland CHS will not induce any change in the global lipids market thereby negating the need to implement any ILUC calculations. The Technical Advisory Group (TAG) to the Vermont PUC (Clean Fuels was represented on the TAG) voted to exclude the ILUC penalty from its consideration of recommendations to the VT PUC for similar reasons (i.e., VT’s consumption of liquid heating fuel is too small to induce a meaningful change in global lipids market dynamics). We have attached the comments Clean Fuels submitted to the Vermont PUC on several matters including ILUC (see page 3, The Treatment of Indirect Land Use for Biodiesel and Renewable Diesel). Congress also voted not to include ILUC relative to the 45Z tax incentive regulations. The Maryland 100 million gallon market is just too small to induce any land-use changes, therefore ILUC should not be included in CI calculations.

Additionally, we question the reference to the 2008 Searchinger study. Has MDE and/or the University of Maryland considered additional sources of scientific analysis on the topic of ILUC beyond Searchinger (2008) and Lark (2022)? We know others have questioned the Lark study. Regarding the dated Searchinger study, he did not consider agricultural yield improvements or benefits of co-products from fuel production processes. Secondly, the actual U.S. ag footprint is shrinking not growing as the research predicted. As you know, the RFS prohibits ag feedstock from being derived from land to converted to cropland after Dec. 19, 2007.

Lastly, the regulations should also clarify what is meant by “End-user must own the fuel and own and retire any renewable attributes.” Who will be the regulated entity and how will that entity – if it is to be the end-user – be regulated?

Thank you for taking the time to review these comments in addition to the comments we previously submitted. We look forward to seeing the draft CHS regulations, and we congratulate Maryland for being on track to being the first state to adopt a CHS. READ MORE

Excerpt from Advanced Biofuels USA: Thank you for the opportunity to provide comments to the MDE CHS GREET presentation. Advanced Biofuels USA, a nonprofit educational organization headquartered in Frederick, MD, appreciates the careful work being done by the Maryland Department of the Environment on its pioneering Clean Heat Standard.

We also support the use of the Argonne National Laboratory’s GREET (Greenhouse Gases, Regulated Emissions and Energy Use in Transportation) model as part of the monitoring, reporting and verification system for this new standard.

We are, however, troubled by the reference during the April 22 presentation to the very dated 2008 Searchinger study. Certainly, more recent studies must include responses to this work and analysis of how predictions made nearly 20 years ago panned out, now that we have actual data. Those assessments should be included in your analysis and list of references on this topic.

Similarly, regarding the 2022 Lark study, his 2024 work seems to update and revise the previous study and should also be included for consideration.

I heartily commend Maryland for doing the hard work involved in taking the lead on this important, and sometimes overlooked, part of living in Maryland and for your efforts especially to bring cleaner, greener fuels to rural communities. READ MORE