Senators introduce bipartisan bill to boost US production, use of renewable diesel, SAF

U.S. Sens. Dianne Feinstein, D-California, and John Barrasso, R-Wyoming, led their colleagues in introducing the Renewable Diesel and Sustainable Aviation Fuel Parity Act of 2022. The legislation is cosponsored by Sens. Bill Cassidy, R-Louisiana, Ben Ray Luján, D-New Mexico, and Steve Daines, R-Montana.

The bill would require the U.S. DOE to track foreign imports and domestic production of renewable diesel and sustainable aviation fuel (SAF). It would also provide incentives to produce more of these fuels here at home and eliminate unnecessary regulations that are limiting the use of renewable diesel in California.

“We must do more to curb carbon emissions in order to minimize the worst effects of climate change, which is already causing more devastating wildfires and drought in California,” Feinstein said. “Diesel trucks and airplanes are two of the largest sources of carbon emissions, which is why I’m joining Sen. Barrasso in introducing this legislation to help promote the development and deployment of renewable diesel and sustainable aviation fuels.”

Barrasso added, “Renewable diesel and sustainable aviation fuel are promising ways to reduce greenhouse gas emissions from heavy-duty trucks and airplanes. Wyoming is already a leading producer of renewable diesel and is expected to produce a lot more in the near future. Currently, outdated and unnecessary regulations are limiting the use of this fuel. Our bipartisan bill will eliminate that red tape. It will also offer incentives to boost production of additional renewable diesel and sustainable aviation fuel here in the United States. It’s a win for the environment and a win for America’s economy.”

The Renewable Diesel and Sustainable Aviation Fuel Parity Act of 2022 will:

Require the Energy Information Administration to report on U.S. production and foreign imports of renewable diesel and SAF, including the type, origin, and volume of feedstocks used for these fuels

Allow renewable diesel and SAF production facilities to qualify for the DOE’s Title XVII loan guarantees under the Energy Policy Act of 2005

Exempt renewable diesel that meets the same technical specifications as petroleum-based diesel from the labeling section of the Energy Independence and Security Act of 2007

The full text of the Renewable Diesel and Sustainable Aviation Fuel Parity Act is available here.

Background

On Aug. 26, the California Air Resources Board and the California Energy Commission wrote to Senate leadership, laying out the benefits of renewable diesel and their concerns that federal labeling requirements are limiting its use in California. CARB and CEC explained, “[i]t is infeasible for many operators of fueling stations…to determine the exact concentration of renewable diesel that will be dispensed and to create a new pump dispenser label for each new fuel delivery.” CARB and CEC stated that “given the fungible nature of renewable diesel with petroleum diesel and the fact that it has no bearing on performance the current requirements serve as an artificial barrier to using higher levels of renewable diesel.” CARB and CEC concluded by saying that “As such, we are losing an opportunity to deliver needed public health and climate benefits associated with using higher levels of renewable diesel.”