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Renewable Fuels Standard (RFS)/Biofuels Mandates

More Information on Renewable Fuel Standard/Biofuel Mandates

Energy Policy Act of 2005

Key RFS provisions in the Energy Policy Act of 2005 (section 1501) include:

  • The RFS will be an obligation for gasoline refiners, blenders, and importers. It will not initially apply to Alaska or Hawaii, but they could opt-in. A RFS credit trading system will be included.
  • Small refineries are exempt until 2011. They may opt-in early to the RFS program and can generate RFS credits beginning in the calendar year following the date of notification.
  • The RFS regulations will not restrict geographic areas in which renewable fuels may be used and will not impose any per-gallon obligation for the use of renewable fuels. The applicable annual RFS percentage will be a single value for all refiners, gasoline importers, and gasoline blenders, and will be expressed as a percentage of gasoline sold or introduced into commerce in the United States. Gasoline produced at U.S. refineries for export will not incur any RFS liability.
  • The RFS compliance period will be a calendar year. A RFS credit deficit may be carried over to the following calendar year, but there cannot be a RFS credit deficit for two consecutive years; the liable party must be in full compliance at the end of the second year.

The legislation defines the term "renewable fuel" to mean motor vehicle fuel that is used to reduce the amount of fossil fuel present in a fuel mixture used to operate a motor vehicle and -

  • is produced from grain, starch, oil-seeds, vegetable, animal, or fish materials including fats, greases, and oils, sugarcane, sugar beets, sugar components, tobacco, potatoes, or other biomass; or
  • is natural gas produced from a biogas source, including a landfill, sewage waste treatment plant, feedlot, or other place where decaying organic material is found.
In addition, the legislation explicitly includes cellulosic biomass ethanol, waste derived ethanol, biodiesel and any blending components derived from renewable fuel in the term "renewable fuel."

Senate Hearings in 2006

The Senate Committee on Energy and Natural Resources held a hearing on June 19, 2006, to review the implementation of the Renewable Fuel Standard and the future potential and technology of biofuels, such as biodiesel, cellulosic ethanol and E-85. To view witness testimonies:
http://energy.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=1565

The Senate Agriculture, Nutrition and Forestry Committee held a hearing on April 26, 2006, on the state of the biofuels industry. To view witness testimonies:
http://agriculture.senate.gov/Hearings/hearings.cfm?hearingId=1850

The Senate Environment and Public Works Committee held a hearing on September 6, 2006, to examine federal renewable fuels programs. To view witness testimonies:
http://epw.senate.gov/hearing_statements.cfm?id=262529

Other

For EPA information on the RFS: http://www.epa.gov/otaq/renewablefuels/index.htm

Click here to view the NPRA summary of state and local gasoline and diesel fuel requirements.
This includes information on state biofuel mandates.