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New tax rule threatens East Coast's renewable diesel import system

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East Coastʼs renewable-diesel use hits new peaks with heavy reliance on foreign supplies. Coming tax changes next year might re-shape current import-based fuel delivery system

The U.S East Coastʼs renewable-diesel market shows big changes with record-high usage numbers. From May to Sept last year consumption reached 5‚000-7‚000 barrels per-day which makes this region an important player in green-fuel distribution

The area now holds about 10% of U.S renewable-diesel stocks and gets same share of imports. Neste‚ worlds top maker of this fuel sends most supplies through its off-shore plants (mainly to New Jersey which takes two-thirds of East Coast imports)

West Coast states like California Oregon and Washington lead in renewable-diesel use due to their clean-fuel rules; however East Coast depends on out-of-region deliveries. The regions import-heavy system might face issues when new rules start: Clean Fuel Production Tax Credit coming in early 2025 wont give tax breaks to imported biofuels

  • California leads consumption
  • Oregon follows with strong demand
  • Washington shows growing usage

The East Coasts reliance on foreign supplies - more than half of its total needs - could create supply-chain problems when tax rules change. This shift might force local markets to find new ways to get renewable-diesel from domestic producers instead of traditional import routes

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