Ricketts, Klobuchar Introduce Renewable Fuel for Ocean-Going Vessels Act

WASHINGTON, D.C. – Today, U.S. Senators Pete Ricketts (R-NE) and Amy Klobuchar (D-MN) introduced the Renewable Fuel for Ocean-Going Vessels Act. The bipartisan bill would allow companies to preserve Renewable Identification Number credits (RINs) under the Renewable Fuel Standard (RFS) program, when the fuel for use is in ocean-going vessels.

“Expanding the use of biofuels like renewable diesel strengthens American energy independence, supports Nebraska agriculture, and reduces emissions,” said Senator Ricketts.“This bipartisan bill will deliver new market opportunities for Nebraska farmers who have played a crucial role creating a strong renewable diesel economy.”

“Domestically produced biofuel strengthens our energy independence, supports our farmers, and boosts rural economies,” said Senator Klobuchar. “This common sense legislation will expand markets for farmers and fuel producers by providing ocean-going vessels a lower carbon fuel.”

“Ocean-going cargo ships, tankers, and passenger vessels have a need for low-carbon, low-sulfur biodiesel and renewable diesel which provides an additional market for biofuels,” said Congresswoman Mariannette Miller-Meeks (IA-02), the bill’s lead in the U.S. House of Representatives. “This legislation allows for RINs to be generated for renewable marine fuel without requiring an obligation on any parties. I thank my colleagues for supporting this legislation which opens the door for communities, like farmers in Iowa, to engage, and be involved, in the marine fuel industry and conversation.”

Bill text can be found here.

“This bill is a win for everyone who values stronger markets, cleaner energy, and a stronger, safer America,” said Dawn Caldwell, Executive Director of Renewable Fuels Nebraska. “It’s a commonsense step to put renewable energy to work on the high seas, which will support our country’s farmers and producers while moving us one step closer to energy independence. We’re grateful to Senator Ricketts for leading on this issue that is so crucial to Nebraskans. And we call on his colleagues in Congress to pass it quickly and look forward to President Trump signing it into law.”

“Soybean farmers are constantly looking for new and innovative markets for our crop, including new opportunities for soy-based biofuels,” said Caleb Ragland, President of the American Soybean Association and soybean farmer from Kentucky. “The Renewable Fuels for Ocean-Going Vessels Act seeks to allow biofuels to truly tap into the marine transportation market through the RFS, and we appreciate the work of Senator Rickets, Senator Klobuchar, Congresswoman Miller-Meeks, and Congressman Garamendi as they continue to advocate for soy-based biofuels.”

“Global shipping companies are looking to U.S. farmers and fuel producers to take the lead in providing clean fuels,” said Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “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.”

“Biofuels are an important pathway for future fuels for the maritime industry. And the United States with its vast biofuel feedstocks and resources creates an enormous economic opportunity for the nation’s farmers to produce fuels to meet the growing global demand for alternative fuels,” said Jennifer Garson, Executive Director of the Sustainable Maritime Coalition. “However, in order to match this enormous supply with the maritime sector, the biofuels industry needs the Renewable Fuels for Oceangoing Vessels Act. This Act is critical for compliance, as RINS are the currency of the RFS program and we applaud its reintroduction in this Congress.”

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.