New York renewable diesel market: How Section 45Z can turn waste into local low-carbon fuel

An op-ed in Crain's New York argues that New York should stop exporting waste oils and instead refine them locally into renewable diesel. The author points to the federal Section 45Z clean fuel production tax credit as a key incentive that could make local renewable diesel plants economically viable. This would reduce the region's exposure to volatile diesel and jet fuel prices while cutting emissions from trucking and aviation. The piece highlights that New York generates large volumes of used cooking oil and animal fats that currently get shipped overseas for processing. Building local refining capacity would create jobs, lower fuel costs, and improve energy security. The author calls on state policymakers to complement the federal credit with state-level support to jumpstart the market. For readers tracking low-carbon fuel policy and regional decarbonization, this op-ed provides a concrete example of how tax credits and local supply chains could work together. The key question is whether New York will move fast enough to capture this opportunity before other states or regions do.