Legislation proposed in the US House of Representatives on Thursday would allow ocean-going ships to consume renewable fuels without forcing the retirement of associated RIN credits.
RIN credits currently cannot be used for compliance purposes and must be retired if the biofuel is burned outside of US waters. This leads to higher biofuels purchasing costs for vessel owners who do not operate solely in US waters, as they must make up the lost RIN revenue for parties that would otherwise capture it. The only vessels that can avoid the additional costs are littoral and harbor vessels that do not leave US waters.
Passage of the proposed legislation would lower the cost of using biodiesel and renewable diesel for marine fuel, likely increasing demand.
The bipartisan bill was introduced by representatives Mariannette Miller-Meeks (R-Iowa) and John Garamendi (D-California) with co-sponsorships from representatives Nikki Budzinski (D-Illinois) and Carlos Gimenez (R-Florida). The bill's final text will be submitted early next week, according to Miller-Meeks' office.
Under the US Renewable Fuel Standard (RFS), obligated parties such as fuel refiners and importers must blend billions of gallons of biofuels with transportation fuels. To prove compliance with the RFS, these obligated parties acquire tradable RIN credits that are then submitted to the EPA.
