Refinery Turns Cooking Grease into Green Fuel with Duty Breaks
Published Date: 3/13/2026
Notice
Summary
Valero’s Premcor Refining Group in Port Arthur, Texas, wants to expand its Foreign-Trade Zone activities to include making renewable fuels like renewable diesel and synthetic kerosene using materials like used cooking oil and animal fats. This change could save money on import duties and boost clean fuel production. Public comments are open until April 22, 2026, so folks have a chance to weigh in!
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
FTZ Adds Renewable-Fuel Production
Valero’s Premcor facility in Port Arthur, TX, asked to add production of renewable naphtha, renewable diesel, synthetic paraffinic kerosene, propane and butane mix, mixed gas stream, and hydrogen sulfide to FTZ Subzone 116C. The notice says conducting production under FTZ procedures could save money on import duties and boost clean fuel production.
Duty Ranges for Products and Feedstocks
The notice lists duty rates: the proposed finished products have duty rates ranging from duty-free to 52.5 cents per barrel, and the proposed foreign-status feedstocks (inedible animal fats, inedible fish fats and oils, used cooking oil, yellow grease) have duty rates ranging from duty-free to 8%.
Some Feedstocks Require Privileged FTZ Status
The request says certain materials may be subject to duties under section 122, section 232, or section 301 depending on country of origin, and those decisions require the merchandise to be admitted to FTZs in privileged foreign status under 19 CFR 146.41.
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Key Dates
Department and Agencies
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