NEFI is on track to achieve significant policy victories for the liquid heating fuel industry in the forthcoming reconciliation bill. We still have major concerns about the bill and there is still much work to be done, but thanks to your support, we have claimed a seat at the table in an otherwise difficult policy environment.
As a quick refresher, liberal and moderate Democrats are in deep negotiations over a reconciliation bill, including massive climate and energy provisions, which they can pass without a single Republican vote. Fighting an extremely uphill battle and against all odds, a NEFI-led coalition of heating fuel suppliers, equipment manufacturers, and biofuel producers has successfully secured a place for all three of our industry's legislative priorities in the latest draft of the reconciliation bill.
- A consumer tax credit of up to $1,200 for the installation of high-efficiency oil-fired heating equipment, including any boiler or furnace that meets 2021 Energy Star® standards and is rated for use with a minimum 20% biofuel blends; this would be in place for five years, after which minimum efficiency standards would increase
- Extension through 2026 of the biodiesel blenders' tax credit as well as the credit for cellulosic fuels like ethyl levulinate
- A $960 million, 10-year expansion of the Higher Blends Infrastructure Incentive Program, which has already awarded nine Northeast heating fuel suppliers $11 million for projects that are expected to increase blended biodiesel sales in the region by about 474 million gallons
These major victories notwithstanding, the bill presents many challenges and opportunities. NEFI's primary concern with this bill remains massive subsidies for residential electrification, including rebates for the installation of electric heat pumps.
There is still much work to be done, but for now, it is important that we take a moment to acknowledge how much you have helped us achieve in such a short period of time and against such incredible odds. Because of you, the liquid heating fuel industry's voice is being heard at the highest levels of government. To all NEFI members, and to everyone who has sent a letter to Congress using our online advocacy platform or contributed to the NEFI Advocacy Bridge Fund, thank you for your continued support. Today's news shows these grassroots efforts are able to make a real and significant difference in our industry's future.
NEFI promises to continue leading the fight for Main Street heating fuel businesses like yours. We will remain engaged with our members, supporters and policymakers to ensure that our industry's voice continues to be heard at the federal level.