The Renewable Fuel Standard (RFS) program plays a key role in U.S. energy policy, helping to cut greenhouse gas emissions, strengthen energy independence, and support the domestic biofuels industry. Since its launch in 2005, the RFS has evolved over time, experiencing both successes and challenges along the way. After 15 years setting the Renewable Volume Obligation (RVO), the EPA continues to increase their goals year-after-year for the growth of the renewable fuel sector in the USA. In this article, we’ll take a closer look at the history of the RFS—how it came to be, its major milestones, and the impact it has had on the renewable fuels landscape.
The Energy Policy Act of 2005
The RFS program was first established under the Energy Policy Act of 2005 (EPAct05). This initial program, often referred to as RFS1, set a modest target for renewable fuel blending, starting with 4 billion gallons in 2006 and escalating to 7.5 billion gallons by 2012 . The primary focus was on conventional biofuels, mainly corn ethanol. This marked the first step towards integrating renewable fuels into the nation’s transportation fuel supply.
The Energy Independence and Security Act of 2007
The Energy Independence and Security Act of 2007 (EISA) significantly expanded the RFS program, creating RFS2 and setting more ambitious targets for renewable fuel use. RINSTAR’s founder, Clayton McMartin, along with other key industry leaders, shared their insights on RFS2 and played a role in shaping it. You can see his original white paper published in 2010 on RFS2 here.
EISA introduced several key changes:
- Increased Volumes: The blending requirement was raised to 36 billion gallons by 2022.
- Fuel Categories: Four distinct categories of renewable fuels were established, each with specific volume requirements and greenhouse gas (GHG) reduction thresholds. These categories included cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel.
- RINs: The Renewable Identification Number (RIN) system was created to track renewable fuel production, use, and trading. RINs serve as the “currency” of the RFS program, allowing obligated parties to demonstrate compliance with their blending obligations.
- Waivers: The EPA was granted authority to adjust volume requirements based on factors like fuel availability and economic impacts.
Notable Moments and Milestones
The RFS program’s journey has been marked by several notable moments and milestones:
- 2008: RINSTAR Renewable Fuel Registry begins supporting obligated parties with their compliance needs and RIN management requirements as a response to the final ruling of the RFS.
- 2010: The EPA launched the EPA Moderated Transaction System (EMTS), a centralized database for tracking RIN transactions.
- 2013: The “blend wall” for ethanol, limited by the prevalence of E10 gasoline, emerged as a major concern.
- 2016: Controversy over Small Refinery Exemptions (SREs) intensified, leading to legal challenges and policy debates.
- 2023: The EPA set the highest-ever RVOs, exceeding 20 billion gallons for the first time.
- 2024: The EPA releases a final ruling on the Biogas Regulatory Reform Rule, encompassing all biogas, RNG, CNG, and LNG under the RFS.
The RFS program has been a driving force in expanding renewable fuels and cutting down on fossil fuel dependence. Over the years, it has hit major milestones, faced challenges, and evolved to keep up with shifting markets and new technologies. As it continues to shape the future of renewable fuels, its role in energy security, environmental sustainability, and the agricultural economy will stay at the heart of ongoing conversations and policy decisions.
RINSTAR’s team of compliance analysts and software developers has been keeping their finger on the pulse of all the changes and updates to the RFS for 15+ years. Our current focus is adapting to the Biogas Regulatory Reform Rule (BRRR) as the scope of the RFS has expanded to include hundreds of EPA-approved facilities not previously required to report via EMTS.