Cornhusker State News

U.S. Senator Pete Ricketts (R-NE), a member of the Senate Environment and Public Works Committee, discussed the significance of increasing renewable fuel production and usage during a recent committee hearing. The focus was on his bipartisan Renewable Fuel for Ocean-Going Vessels Act, which he introduced with Senator 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.”

Ricketts added: “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. 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.”

The Senate Environment and Public Works Committee reviewed both the Renewable Fuel for Ocean-Going Vessels Act and another measure called the Wildfire Emissions Prevention Act.

Introduced in March, Ricketts’ bill aims to allow companies to keep Renewable Identification Number credits (RINs) under the Renewable Fuel Standard when supplying fuel used by ocean-going vessels—a category currently excluded from such benefits. At present, refiners and blenders must retire RINs tied to biodiesel and renewable diesel used in large engines operating internationally, including those on Great Lakes routes. In 2024 alone, companies retired 13.7 million D4 RINs related to biomass-based diesel consumed by these vessels.

Currently, while companies can generate and use RINs for additional renewable fuels like heating oil and jet fuel as permitted by the Environmental Protection Agency, they cannot do so for marine uses under existing rules. The proposed legislation seeks to broaden this definition within federal standards so that companies could use or sell credits associated with marine biodiesel and renewable diesel consumption.