Trade groups applaud bipartisan, bicameral Renewable Fuel for Ocean-Going Vessels Act

Clean Fuels Alliance America and other groups representing agriculture and maritime fleets thanked Senate and House champions March 6 for introducing the bipartisan Renewable Fuel for Ocean-Going Vessels Act.

The legislation designates renewable fuel used in ocean-going vessels as an “additional renewable fuel” eligible for credit under the Renewable Fuel Standard.

It will enable companies to preserve renewable identification number (RIN) credits in the RFS program when renewable fuel is used in certain maritime vessels.

“Global shipping companies are looking to U.S. farmers and fuel producers to take the lead in providing clean fuels,” said Kurt Kovarik, Clean Fuels’ vice president of federal affairs. “This commonsense legislation will remove a regulatory roadblock and enable U.S. biodiesel and renewable diesel producers in partnership with soy and canola growers to meet the needs of shipping companies at a competitive price. It will allow refiners and blenders to keep RFS credits for fuel used in ocean-going vessels that are currently being sacrificed.”

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 and 2024, 11.2 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.

Sens. Pete Ricketts, R-Nebraska, and Amy Klobuchar, D-Minnesota, sponsored the legislation in the Senate.

Reps. Mariannette Miller-Meeks, R-Iowa, John Garamendi, D-California, and six others sponsored identical legislation in the House of Representatives.

Joining Clean Fuels in supporting the legislation are the National Oilseed Processors Association, North American Renderers Association, World Shipping Council, Iowa Biodiesel Board, California Advanced Biofuels Alliance, and other groups seeking to increase use of low-carbon fuels and reduce carbon emissions in international shipping and travel.

“Biodiesel and renewable diesel produced from U.S. oilseeds such as soybeans and canola present practical, immediate, affordable and abundant solutions to reduce the environmental impact of marine transportation,” said NOPA President and CEO Devin Mogler. “Their adoption can help support the transition to a more sustainable maritime sector while growing the U.S. economy and supporting American agriculture.”

NARA President and CEO Kent Swisher added, “NARA supports the Renewable Fuel for Ocean-Going Vessels Act, which boosts low-carbon marine biofuels and strengthens the circular economy. This legislation advances cleaner shipping, energy security and sustainability. We look forward to working with stakeholders to drive these solutions forward.”

Joe Kramek, the president and CEO of the World Shipping Council, said, “The U.S. needs to remove the unintended regulatory barrier for supplying renewable fuels to marine vessels and to make the necessary infrastructure investments to supply gas and liquid fuels to ships directly from the existing pipeline network. If we do both, we open a very significant opportunity for the U.S. energy sector.”

In challenging times for biodiesel producers, expanding the marine fuel market presents a vital opportunity, according to IBB Executive Director Grant Kimberley.

“A legislative change like this would break down a regulatory barrier that hinders U.S. biodiesel producers from meeting demand for affordable, accessible clean fuel in the marine market,” he said. “Iowa’s farmers stand ready to unleash American energy with the fuel they help produce.”