1. Reforming the Renewable Fuel Standard
- Author:
- James Stock
- Publication Date:
- 03-2018
- Content Type:
- Special Report
- Institution:
- Center on Global Energy Policy
- Abstract:
- The US Renewable Fuel Standard (RFS) was introduced in the Energy Policy Act of 2005 and expanded in both scope and duration in the Energy Independence and Security Act (EISA) of 2007. The policy goals of the RFS program are threefold: - enhance energy security through additional domestic production of biofuels, - support rural economies by expanding the demand for agricultural products, and - expand the development and production of second-generation low–greenhouse gas transportation fuels. The RFS requires the blending of increasing quantities of biofuels into the US surface vehicle transportation fuel supply. These quantities are specified in the EISA but are subject to modification by the US EPA under certain conditions (“waiver authorities”). The EPA issues annual rules specifying the overall fractions of renewable fuels in the fuel supply. The fractional requirements are specified by fuel category: cellulosic, advanced biomass-based biodiesel, other advanced fuels, and total renewable fuels. Compliance with the blending standards is demonstrated by obligated parties (petroleum refiners and importers) retiring electronic certificates, called renewable identification numbers (RINs), when they sell petroleum fuel into the surface transportation fuel supply. RINs, which become available when a renewable fuel is blended into the fuel supply, are tradable and bankable (with limitations). Thus obligated parties have the choice of either producing RINs themselves through blending operations or purchasing RINs on the open market.
- Topic:
- Energy Policy, International Affairs, and Climate Finance
- Political Geography:
- Global Focus