Clean Fuels, ASA, NARA Applaud Bipartisan Renewable Fuel for Ocean-Going Vessels Act

(Clean Fuels Alliance America) Small change to RFS rules would open marine fuel markets to biodiesel and renewable diesel -- Today (December 7, 20923), Clean Fuels Alliance America, the American Soybean Association, and the North American Renderers Association (NARA) thanked Reps. Mariannette Miller-Meeks (R-IA) and John Garamendi (D-CA) 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” (similar to jet fuel) under the Renewable Fuel Standard. This will enable companies to preserve Renewable Identification Number credits (RINs) in the program.

Joining Clean Fuels, ASA and NARA in supporting the legislation are the Iowa Biodiesel Board, Iowa Soybean Association, the American Waterways Operators and other groups seeking to increase use of low-carbon fuels and reduce carbon emissions in international shipping and travel.

“International shipping companies and cruise lines are increasingly seeking low-carbon biodiesel and renewable diesel to meet climate goals and consumer demand,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “This commonsense legislation will remove a regulatory roadblock and enable biodiesel and renewable diesel producers to meet the low-carbon fuel needs of shipping companies at a competitive price. It will allow refiners and blenders to keep RINs for fuel used in ocean-going vessels that are currently being sacrificed.”

American Soybean Association President Daryl Cates, soybean farmer from Illinois, added, “American Soybean Association and its farmer leaders are pleased to see Reps. Miller-Meeks and Garamendi introduce this legislation that would expand the biomass-based diesel portfolio in the Renewable Fuel Standard and applaud their bipartisan effort to acknowledge marine vessels as a new and exciting market opportunity for agriculture.”

“NARA lauds Reps. Miller-Meeks and Garamendi for sponsoring this important legislation to incentivize the use of biofuel and renewable fuels in ocean-going vessels,” said Kent Swisher, president & CEO of the North American Renderers Association (NARA). “I bet cruise line travelers would be thrilled to learn that they are contributing to the circular economy because the cooking oil used to fry their French fries is getting a second life as renewable fuel that powers their ship.”

Background: 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 the first ten months of 2023, more than 5 million D4 RINs were retired under this rule.

The Environmental Protection Agency, 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.

ABOUT CLEAN FUELS ALLIANCE AMERICA
Made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil, and animal fats, the clean fuels industry is a proven, integral part of America’s clean energy future. Clean Fuels Alliance America is the U.S. trade association representing the entire biodiesel, renewable diesel and sustainable aviation fuel supply chain, including producers, feedstock suppliers and fuel distributors. Clean Fuels receives funding from a broad mix of private companies and associations, including the United Soybean Board, Nebraska Soybean Board and other state checkoff organizations. READ MORE

Excerpt from Argus Media: Legislation proposed in the US House of Representatives on Thursday would allow ocean-going ships to consume renewable fuels without forcing the retirement of associated RIN credits.

RIN credits currently cannot be used for compliance purposes and must be retired if the biofuel is burned outside of US waters. This leads to higher biofuels purchasing costs for vessel owners who do not operate solely in US waters, as they must make up the lost RIN revenue for parties that would otherwise capture it. The only vessels that can avoid the additional costs are littoral and harbor vessels that do not leave US waters.

Passage of the proposed legislation would lower the cost of using biodiesel and renewable diesel for marine fuel, likely increasing demand.

The bipartisan bill was introduced by representatives Mariannette Miller-Meeks (R-Iowa) and John Garamendi (D-California) with co-sponsorships from representatives Nikki Budzinski (D-Illinois) and Carlos Gimenez (R-Florida). The bill's final text will be submitted early next week, according to Miller-Meeks' office. READ MORE