NEW YORK, Dec 3 (Reuters) - Consumption of renewable

diesel on the U.S. East Coast has been on the rise, the U.S.

Energy Information Administration said on Tuesday, but the

upcoming Clean Fuel Production Tax Credit could shift trade

dynamics and weigh on importers that supply over half of the

fuel to the region.

Renewable diesel is primarily consumed on the West Coast in

states with active clean fuel programs like California, Oregon,

and Washington. The East Coast relies heavily on imports and

interregional shipments to meet demand.

However, the Clean Fuel Production Tax Credit (PTC), a

provision in the Inflation Reduction Act of 2022 that will take

effect next year, would make biofuel imports ineligible for tax

credits.

More than half of the fuel supplied to the East Coast this

year has come from imports, notably from overseas plants

operated by Neste, the world's largest producer of

renewable diesel.

Of the renewable diesel imported into the East Coast, about

two-thirds has been destined for New Jersey.

Consumption of renewable diesel on the East Coast from May

to September was within the range of 5,000-7,000 barrels per

day, the EIA said, above the previous record high.

The East Coast now holds almost 10% of renewable diesel

inventories in the United States and attracts almost 10% of U.S.

imports, the EIA said.