Nebraska Panhandle News

U.S. Senator Pete Ricketts (R-NE), a member of the Senate Environment and Public Works Committee, has emphasized the need to expand renewable fuel use in the shipping industry. During a committee hearing this week, Ricketts discussed 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 also noted recent changes in international standards that could facilitate wider adoption of renewable fuels by ship owners: “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.”

The Senate committee hearing reviewed both the Renewable Fuel for Ocean-Going Vessels Act and another measure focused on wildfire emissions prevention.

The proposed legislation was introduced in March as a bipartisan effort aimed at enabling companies to retain Renewable Identification Number credits (RINs) under the federal Renewable Fuel Standard program when using renewable fuels on ocean-going vessels. Currently, such vessels are excluded from being counted as transportation fuel under this standard, requiring refiners and blenders to retire any associated credits if used on ships with Class 3 engines operating internationally or within areas like the Great Lakes.

In 2024 alone, companies retired 13.7 million D4 RINs tied to biomass-based diesel used by ocean-going vessels—a practice not required for other forms of transportation like heating oil or jet fuel under Environmental Protection Agency rules.

If enacted, Ricketts’ bill would broaden eligibility so that companies could generate and sell credits linked with biodiesel and renewable diesel used aboard ocean-going ships.