Renewable Fuel for Ocean-Going Vessels Act
Summary
S. 881 would amend the Renewable Fuel Standard (RFS) program to allow U.S. fuel producers and shipping companies to generate and preserve renewable fuel credits when biofuels like biodiesel and renewable diesel are used in ocean-going vessels. Currently, these credits must be retired and cannot be kept or sold, which limits the market incentive for producing renewable marine fuels. The bill would designate marine biofuels as "additional renewable fuel" under the RFS, similar to how jet fuel and heating oil are already treated.
Proponents argue the bill would create new market opportunities for U.S. farmers and biofuel producers by expanding demand for renewable diesel and biodiesel in the shipping industry. Supporters contend that biofuels can reduce particulate matter and emissions from cargo ships that transport over 80 percent of international goods. However, critics raised concerns during Senate committee hearings that the bill may have limited climate impact, noting that a similar provision for jet fuel in 2014 did not significantly increase sustainable aviation fuel production. The bill is currently under consideration by the Senate Environment and Public Works Committee and has not yet been voted on by the full Senate.