Ricketts Highlights Bipartisan Bill to Expand Renewable Fuels

WASHINGTON, D.C. - This week, U.S. Senator Pete Ricketts (R-NE), a member of the Senate Environment and Public Works Committee, highlighted the importance of expanding the production and use of renewable fuels. Ricketts' comments came during a hearing examining his bipartisan Renewable Fuel for Ocean-Going Vessels Act, introduced with Amy Klobuchar (D-MN).

"At its core, the Renewable Fuel Standard supports American agriculture," said Ricketts. "It directly impacts what farmers receive for what they grow. However, because the RFS excludes ocean-going vessels, the shipping industry is missing out on a proven cleaner fuel. The Renewable Fuel for Ocean-Going Vessels Act would clear a major roadblock by allowing U.S. biodiesel and renewable diesel producers to meet the needs of ocean-going vessels while preserving RFS credits. It would expand agricultural marketplaces, enhance American energy security, and create parity for maritime fuels with over-the-road and aviation fuel types in the Renewable Fuel Standard."

"The vast majority of ocean-going vessels that are operating today were originally designed to use liquid fuels derived from crude oil, meeting the International Organization for Standardizations (ISO) Marine Fuel Standard," continued Ricketts. "The ISO recently modified the standard to allow ship owners to utilize blends of up to 100% biodiesel or renewable diesel in their existing ships. This change would help make these fuels a cost-competitive option for ship owners who want to decarbonize using domestically produced fuel in their existing ships without the need to invest in new vessels or undergo extensive retrofitting."

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The Committee on Environment and Public Works hearing examined the Renewable Fuel for Ocean-Going Vessels Act and the Wildfire Emissions Prevention Act.

BACKGROUND:

Ricketts' Renewable Fuel for Ocean-Going Vessels Act was introduced in March. 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. Currently, the Renewable Fuel Standard 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 2024, companies retired 13.7 million D4 RINs for biomass-based diesel used in ocean-going vessels.

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 Actwould 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.