The American Trucking Association and Truckload Carriers Association disagree with the potential impact of a bill floating in Congress called the Renewable Diesel and Sustainable Aviation Fuel Parity Act. Lawmakers seem to indicate the legislation — if passed — would help increase diesel fuel production while maintaining a regulatory status quo. Trucking industry advocates say it will create confusion, make meeting emissions regulations more difficult, and cost fleets money.
“In light of the recent Securities and Exchange Commission proposed rule that requires certain companies to report climate-related risks, it is imperative that truck drivers have seamless access to information regarding the environmental characteristics of the fuel that they purchase,” a joint letter sent to lawmakers reportedly said. “The renewable diesel label provides that information. Were it to be eliminated, it would be exceedingly complicated and expensive for retailers and trucking firms to ascertain the carbon footprint of their activities.”
The bill appears to have surprising bipartisan support in the U.S. Senate. California Sen. Dianne Feinstein and Wyoming Sen. John Barrasso led the charge to introduce the bill in April. It also has co-sponsors, including senators Bill Cassidy, Ben Ray Luján, and Steve Daines.
According to Sen. Feinstein’s website, the bill tasks the Department of Energy with tracking the production of foreign and domestic renewable diesel and sustainable aviation fuel. The measures would include incentives to produce more domestically and roll back some of the red tape impeding the use of renewable diesel in California.
“Diesel trucks and airplanes are two of the largest sources of carbon emissions, which is why I’m joining Senator Barrasso in introducing this legislation to help promote the development and deployment of renewable diesel and sustainable aviation fuels,” Sen. Feinstein reportedly said.
According to the California senator, the act would encourage the following three things.
- Require the Energy Information Administration to report on U.S. production and foreign imports of renewable diesel and sustainable aviation fuel, including the type, origin, and volume of feedstocks used for these fuels.
- Allow renewable diesel and sustainable aviation fuel production facilities to qualify for the Department of Energy’s Title XVII loan guarantees under the Energy Policy Act of 2005.
- Exempt renewable diesel that meets the same technical specifications as petroleum-based diesel from the labeling section of the Energy Independence and Security Act of 2007.
The last bullet point appears to be where the road diverges for trucking industry advocacy organizations. Glen Kedzie, the American Trucking Association’s energy and environmental counsel, contends that eliminating the renewable diesel label would prompt refineries to commingle the product with petroleum brands. His thinking revolves around oil refinery industry practices and profits.
“But removing the RD label would cut into the fuel cost discounts that trucking companies get at retail. The label ensures that every gallon of renewable diesel is segregated from petroleum diesel through the supply chain. If they can commingle the fuel, fleets won’t know what they are buying and the cost will be higher because renewable diesel will then need to be priced the same as petroleum diesel,” Kedzie reportedly said. “If producers can commingle the fuel, they would be able to access a tax credit. However, fleets would lose out. Fleets would pay a higher price for fuel, and it would not be completely transparent as to what is going in the truck tank.”
Sources: ttnews.com, feinstein.senate.gov
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