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The Renewable Fuel Standard (RFS): An Overview (CRS Report for Congress)

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Release Date Revised July 31, 2023
Report Number R43325
Report Type Report
Authors Kelsi Bracmort, Specialist in Agricultural Conservation and Natural Resources Policy
Source Agency Congressional Research Service
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Summary:

The Renewable Fuel Standard (RFS) requires U.S. transportation fuel to contain a minimum volume of renewable fuel. The RFS—established by the Energy Policy Act of 2005 (P.L. 109-58; EPAct05) and expanded in 2007 by the Energy Independence and Security Act (P.L. 110-140; EISA)—began with 4.0 billion gallons of renewable fuel in 2006 and aims to ascend to 36.0 billion gallons in 2022. The Environmental Protection Agency (EPA) determines the volume amounts after 2022. The total renewable fuel statutory target consists of both conventional biofuel and advanced biofuel. Since 2014, the total renewable fuel statutory target has not been met, with the advanced biofuel portion falling below the statutory target by a large margin since 2015. Going forward, it is unlikely that the United States will meet the total renewable fuel target as outlined in statute. EPA administers the RFS and is responsible for several tasks. For instance, within statutory criteria EPA evaluates which renewable fuels are eligible for the RFS program. Also, EPA establishes the amount of renewable fuel that will be required for the coming year based on fuel supply and other conditions (waiver authority in the statute allows the EPA Administrator to reduce the statutory volumes given certain conditions). Further, EPA now has the option to “reset” the RFS whereby it can modify the fuel volumes required for future years if certain conditions are met. EPA monitors compliance for the RFS using a system of tradable credits referred to as renewable identification numbers (RINs). Some stakeholders have concerns about various facets of the RFS. These concerns include  the costs incurred by some stakeholders (e.g., refiners) in order to comply with the mandate,  the use of small refinery exemptions,  whether the mandate has produced an environmental benefit (e.g., greenhouse gas emission reduction), and  the pace at which some advanced biofuel pathways are approved for the RFS. Congress has expressed ongoing interest in the RFS, particularly as the mandate relates to other legislative efforts (e.g., Reid Vapor Pressure requirements for ethanol-gasoline fuel blends containing greater than 10% ethanol, a national octane standard) and about oversight of the RIN market, among other things. Some proclaim it is time to amend or repeal the RFS, while others contend the best course of action is to maintain the status quo.
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