U.S. Renewable Fuels Legislation Could Garner Bipartisan Support under Biden

by Stephanie Kelly and Laura Sanicola (Reuters) Renewable fuels are a niche market for now, but with Democratic President-Elect Joe Biden set to enter office with a divided Congress, legislation supporting demand for products like renewable diesel could garner bipartisan support.

Biden, elected president last week, defeating Republican Donald Trump, has pledged to move the United States to a zero-carbon emissions scheme by 2050. Under a divided Congress, however, ambitious plans to tackle rising emissions may be put on ice.

Renewable fuels, however, may be different: their development is supported by some in both the oil and green energy industries.

Some refiners have been investing in cleaner fuels derived from feedstocks like cooking oil, taking advantage of state subsidies designed to reduce carbon emissions. State and federal incentives could expand that market, giving energy companies revenue opportunities while reducing carbon emissions.

It is unclear whether renewable fuels legislation could pass a Republican-led Senate. Senators representing oil states would be less likely to push for legislation that transitions away from the oil industry.

Many refiners announced plans this year to convert facilities for renewable diesel production, supported by state incentives. In California, refiners can generate tradable credits by producing renewable diesel because it has a lower carbon intensity than fossil fuels, and sell them on to other fuel producers.

In August, Biden stated that “a Biden-Harris Administration will promote and advance renewable energy, ethanol, and other biofuels to help rural America and our nation’s farmers, and will honor the critical role the renewable fuel industry plays in supporting the rural economy and the leadership role American agriculture will play in our fight against climate change.”

Producing renewable diesel also helps refiners reduce their exposure to costs to comply with U.S. biofuel blending obligations. READ MORE

Excerpt from Brownfield Ag News: RFA president and CEO Geoff Cooper tells Brownfield Ag News they would have been pleased with either election outcome but they have had continued struggles with Trump’s EPA over the Renewable Fuels Standard, “We know that the challenges we’ve faced the last several years have been at the EPA. And there has been an obvious disconnect between the White House and EPA when it comes to renewable fuels.”

Cooper says Biden committed on the campaign trail to put an end to the Trump Administration’s EPA small refinery waivers on day one.

While he’s hopeful the EPA will reject pending small refinery waivers and publish 2021 RFS volumes during the Lame Duck session, Cooper says, “I think the most likely course of action is going to be that EPA continues to kick the can on these decisions and actions and sort of leaves the mess they’ve created for the next administration to clean up.” READ MORE includes AUDIO

Excerpt from S&P Global: D6 ethanol RINs rise to highest since February 2018; Biden campaigned against Trump's 'reckless' waivers; Uncertain timing for setting final 2021 blending levels READ MORE