Expanding LCFS markets
Expanding and instating LCFS markets and policies on the West Coast, in the Midwest, in New England and in Canada
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We actively support lower carbon fuel programs to combat climate change at a lower cost to consumers and assist with air pollution reduction. These programs could expand our current market reach.
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We engage with legislatures, build industry coalitions, provide expert testimony and engage key stakeholders.
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Multiple states and provinces have passed or expanded rulemaking, while others have introduced or discussed similar legislation. State of Washington passed the Clean Fuel Standard in 2021.
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Support for higher blends
Establish minimum blend standards, higher blend use and 100% biodiesel use
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We want to enable fleets to use higher to accelerate their lower carbon efforts. We believe certain challenges, such as OEM limitations and concerns, are inflated and potentially inhibiting fuel user GHG reduction..
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We work alongside business leaders, policy makers and industry bodies to educate and introduce best practices for biofuel use.
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Certain states require and incentivize the use of bio-based diesel through minimum blend rates. Many states and municipalities encourage the purchasing of vehicles which use high blends of bio-based diesel.
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U.S. Renewable Fuel Standard (RFS)
Sets Renewable Volume Obligation (RVO) levels on an annual basis for producers and importers of diesel and gasoline
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We believe that there is sufficient feedstock and production capacity to support the RFS and grow the RVO to drive help industry growth and GHG emissions reductions.
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We engage with U.S. Senators & Representatives, the Administration and other elected officials and staff, as well as leaders in EPA and trade associations to amplify support for RVO growth. Several Chevron Renewable Energy Group executives gave testimony at the EPA hearing on the 2020, 2021, and 2022 proposed RVOs. We also submitted written testimony that the RVO for biomass-based diesel should be increased to 4 billion gallons (actual) and the RVO for advanced biodiesel should be increased to 7 billion gallons (ethanol-equivalent gallons or RINs).
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We expect a final ruling on 2022 RVO levels and a proposed rule for 2023 volumes from EPA by mid-2022.
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Tax incentives
Continuation of the Biodiesel Mixture Excise Tax Credit (BTC) which provides a $1.00 refundable excise tax credit per gallon to the first blender of record for bio-based diesel with petroleum diesel and growing and extending Midwest retail and tax incentives
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We support incentives that will help grow the bio-based diesel industry, support higher blend usage and lower carbon intensity and encourage local production and consumption.
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We engage in lobbying, grassroots and public opinion efforts, educational engagements and coalition building to establish reliable, long-term incentives.
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U.S. federal efforts currently offer greater visibility than ever before, with anticipated phasing out of current incentives. Illinois, Iowa and Missouri recently passed supportive legislation for bio-based diesel.
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Europe’s “Fit for 55” package
References a climate target of 55% GHG reduction by 2030 in the European Union, and includes Chevron Renewable Energy Group-relevant legislation: RED for road transport, ReFuelEU aviation and FuelEU Maritime as well as Fuels Quality Directive
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We advocate for a level playing field across all transport sectors (road, marine, aviation) and technology neutrality, as well as maximization of GHG reduction per feedstock molecule.
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We conduct direct advocacy with European and Dutch representatives of parliament, coordinate with industry associations and other industry players and leverage media coverage.
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An initial proposal to offer extra incentivization for the use of waste lipids in aviation biofuels vs. terrestrial biofuels has been changed.
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Other International
Exemption for used cooking oil (UCO) as an animal byproduct (ABP)
Establish new specs for fatty acid methyl esters (FAME) for inland-shipping
Increase public fuel station bio-blend levels
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We want to help fuel users have access to high quality product that advances lower carbon solutions and minimize regulatory confusion. We are supportive of UCO being exempt from ABP rules; supportive of improved FAME quality for the inland-shipping market; and supportive of increasing bio-blend levels from 7% to 10% (B7 to B10). |
We work with governmental bodies and partner with other industry players to collaborate with Dutch Oils and Fats Industry.
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There has been positive momentum on these topics, with further clarity expected by mid-2022.
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Fair incentivization for Sustainable Aviation Fuel (SAF) and competitive technologies
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We are supportive of GHG reduction efforts across industries and specifically recognize the lack of options available to the aviation industry. However, with a global goal to reduce carbon emissions, we believe no solution should unfairly disadvantage other lower carbon options. |
We use both grassroots and grasstops efforts, in addition to earned and paid media to educate and engage across the industry to promote a level playing field for lower carbon solutions. |
Proposed legislation that would over-incentivize SAF is currently stalled in the U.S. Senate. We are continuing our grasstops efforts to educate on this issue.
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