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- 12/07/2021
What is the Renewable Fuels Standard? Why is it important?
Congress enacted the Renewable Fuel Standard, first in 2005 and an updated version in 2007, to increase American energy independence, to promote cleaner air policies, and to boost the U.S.’s rural economy. The program, which mandates that oil companies blend a certain amount of renewable fuel into the transportation fuel supply annually, has successfully built an American advanced biofuels industry and helped America move toward each of these objectives.
The program has a multi-purpose design. It increases the development and production of renewable fuels from both crop and non-crop based feedstocks, supports the rural economy through the use of agricultural products, delivers lower carbon fuels into the liquid transportation fuels system, and increases domestic energy security.
The RFS was most recently updated in June 2023 and established biofuel volume requirements through 2025. While the ruling acknowledged the progress the advanced biofuel industry has made, it undervalued the sector’s production potential.