U.S. renewable fuels legislation could garner bipartisan support under
Biden
Send a link to a friend
[November 10, 2020]
By Stephanie Kelly and Laura Sanicola
NEW YORK, (Reuters) - Renewable fuels are a
niche market for now, but with Democratic President-Elect Joe Biden set
to enter office with a divided Congress, legislation supporting demand
for products like renewable diesel could garner bipartisan support.
Biden, elected president last week, defeating Republican Donald Trump,
has pledged to move the United States to a zero-carbon emissions scheme
by 2050. Under a divided Congress, however, ambitious plans to tackle
rising emissions may be put on ice.
Renewable fuels, however, may be different: their development is
supported by some in both the oil and green energy industries.
Some refiners have been investing in cleaner fuels derived from
feedstocks like cooking oil, taking advantage of state subsidies
designed to reduce carbon emissions. State and federal incentives could
expand that market, giving energy companies revenue opportunities while
reducing carbon emissions.
![](http://archives.lincolndailynews.com/2020/Nov/10/images/ads/current/castlemanor_sda_FINANCIAL_2017.png)
"I don't see any reason why a divided Congress would have a problem
encouraging renewable fuels, as it affects key states that Democrats and
Republicans are motivated in," said Bill Barnes, director of energy
consultancy Pisgah Partners.
The United States consumes roughly 21 million barrels of renewable
diesel per year, compared with 4.1 million barrels used every day for
conventional distillate fuel oil, according to U.S. Energy Department
data.
Legislators from Farm Belt states such as Minnesota, Iowa and Illinois
could see the market as a way to help boost demand for their
constituents' products.
It is unclear whether renewable fuels legislation could pass a
Republican-led Senate. Senators representing oil states would be less
likely to push for legislation that transitions away from the oil
industry.
The U.S. oil market has been hit hard by the coronavirus pandemic.
Demand for motor gasoline has dropped 13% so far in 2020, forcing
several refineries to close or convert operations to produce more
biodiesel.
[to top of second column]
|
![](../images/111020PIX/news_e9.jpg)
A decal stating "This Aircraft Flies On Renewable Fuel" is seen on a
Gulfstream 650ER business jet at the National Business Aviation
Association (NBAA) exhibition in Las Vegas, Nevada, U.S. October 21,
2019. REUTERS/David Becker
![](../images/ads/current/fitzpatrick_lda_SPONSOR_2017.png)
Many refiners announced plans this year to convert facilities for
renewable diesel production, supported by state incentives. In
California, refiners can generate tradable credits by producing
renewable diesel because it has a lower carbon intensity than fossil
fuels, and sell them on to other fuel producers.
Oregon has a similar program, and several other U.S. states are also
developing standards for renewable diesel.
The oil industry was braced for more federal incentives for
renewables if Biden won the presidency.
In August, Biden stated that "a Biden-Harris Administration will
promote and advance renewable energy, ethanol, and other biofuels to
help rural America and our nation's farmers, and will honor the
critical role the renewable fuel industry plays in supporting the
rural economy and the leadership role American agriculture will play
in our fight against climate change."
Producing renewable diesel also helps refiners reduce their exposure
to costs to comply with U.S. biofuel blending obligations.
"If you have something optically ESG-friendly, that probably carries
more weight today than it used to," said Stewart Glickman, energy
equity analyst at CFRA Research.
![](http://archives.lincolndailynews.com/2020/Nov/10/images/ads/current/Peasley_lda_PPP_2018.png)
(Reporting by Stephanie Kelly and Laura Sanicola; Editing by Kenneth
Maxwell)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |