S. 881: Renewable Fuel for Ocean-Going Vessels Act

This bill, known as the Renewable Fuel for Ocean-Going Vessels Act, aims to change the definition of renewable fuel under the Clean Air Act. Specifically, it proposes to expand the types of fuels eligible for renewable fuel credits to include fuel used for ocean-going vessels, in addition to the existing categories. Here are the key points of the bill:

1. Amendment of Definitions

The bill seeks to amend Section 211 of the Clean Air Act. It will replace the current wording that only mentions fossil fuel in home heating oil and jet fuel with a new definition that includes fuel for ocean-going vessels. This change suggests that the fuels used to power large ships will be considered in the context of renewable energy credits.

2. Applicability of the Changes

These changes are set to take effect starting from the second calendar year following the bill's enactment. This means that there will be a period before the new classification is officially recognized, allowing time for preparations and adjustments in fuel production and regulation.

3. Regulatory Implementation

The bill mandates that within one year of becoming law, the Environmental Protection Agency (EPA) must establish the necessary regulations to facilitate the implementation of the new definition of renewable fuel. This involves determining how ocean-going vessel fuels will be assessed, monitored, and credited.

4. Reporting Requirements

After the regulations are in place, the EPA is required to submit a report to Congress within one year. This report will outline how the amendment has been implemented and detail the regulations that were created as part of this process. It will provide oversight and transparency regarding the transition to include ocean-going vessel fuels in the renewable fuel program.

Impact on Renewable Fuels

The inclusion of ocean-going vessel fuel as a renewable fuel could encourage the development and usage of alternative fuels for shipping, potentially leading to lower greenhouse gas emissions from this sector. It places emphasis on finding renewable solutions for marine transportation, which has traditionally relied heavily on fossil fuels.

Relevant Companies

• MAERSK: A major player in shipping and logistics, likely to be affected by changes in fuel regulations and potential costs associated with switching to renewable fuels.
• SEACOR Marine Holdings Inc.: Involved in marine services, this company may be impacted as it explores compliance with new fuel regulations and adapts its fuel sources.
• Hapag-Lloyd: Another significant shipping company that could face operational changes and potential costs related to new renewable fuel requirements.