Renewable Fuel for Ocean-Going Vessels Act introduced in US Senate

Sens. Pete Ricketts, R-Nebraska, and Sherrod Brown, D-Ohio, introduced the Renewable Fuel for Ocean-Going Vessels Act in the U.S. Senate Feb. 27.

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 (RIN) credits in the RFS program when the fuel is used in ocean-going shipping.

Companion legislation was introduced in the U.S. House in early December.

“This legislation will drive demand for biofuels and provide more opportunities for Nebraska farmers who have played a crucial role creating a strong renewable diesel economy,” Ricketts said. “These kinds of solutions strengthen American energy independence, support American jobs and reduce emissions.”

Brown added, “Ohio can be a leader in producing more sustainable marine fuels—creating new markets for Ohio farmers. From ships crossing the Atlantic to vessels delivering goods to ports along Lake Erie, Ohio soybean farmers can produce the renewable fuel of the future that drives this industry. This bill is a win for Ohio farmers and producers.”

Clean Fuels Alliance America and several state soybean associations including those from Nebraska, Ohio, Illinois and Michigan applauded introduction of the legislation in the Senate.

“The international shipping industry is seeking to decarbonize and clean fuels like biodiesel and renewable diesel are available today to help,” said Kurt Kovarik, Clean Fuels’ vice president of federal affairs. “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 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.

The U.S. EPA, however, allows companies to generate and use RINs for “additional renewable fuel,” which includes heating oil and jet fuel.

The Renewable Fuel for Ocean-Going Vessels Act would expand the RFS definition of additional renewable fuel and allow companies to use or sell the RINs associated with biodiesel and renewable diesel used in ocean-going vessels.