Senate Introduces Ocean-Going Renewable Fuels Bill

U.S. Senators Pete Ricketts (R-NE) and Sherrod Brown (D-OH) this week introduced the Renewable Fuel for Ocean-Going Vessels Act to allow companies to preserve Renewable Identification Number credits (RINs) under the RFS program for renewable fuel, when the fuel for use is in ocean-going vessels. 

The legislation designates renewable fuel used in ocean-going vessels as an “additional renewable fuel” (similar to jet fuel) under the Renewable Fuel Standard. This will enable biodiesel and renewable diesel producers to preserve Renewable Identification Number credits (RINs) in the RFS program, when the fuel is used in ocean-going shipping.

Clean Fuels Alliance America strongly supports the legislation, along with the Nebraska, Ohio, Illinois, Michigan, and Indiana Soybean Associations, and other groups seeking to increase use of low-carbon fuels and reduce carbon emissions in international shipping and travel.

“The international shipping industry is seeking to decarbonize and clean fuels like biodiesel and renewable diesel are available today to help,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “This commonsense legislation will enable biodiesel and renewable diesel producers to meet the low-carbon fuel demand from shipping companies operating on both coasts and the Great Lakes. It will open new markets to American clean fuel producers and their farmer partners.”

The RFS currently excludes “fuel used in ocean-going vessels” from the definition of transportation fuels and from refiners’ and blenders’ obligations. Refiners and blenders are currently required to retire RINs from any biodiesel and renewable diesel used in vessels with Class 3 engines operating in international waters, including the Great Lakes. In 2023, 6.8 million D4 RINs were retired under this rule.

Kovarik talked about the legislation, which has already been introduced in the House, during his policy update at the recent Clean Fuels Conference.

Clean Fuels Conference – Kurt Kovarik Remarks 8:52

Originally shared by Energy Ag-wired, February 29, 2024.

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