Educational Series: What is The Renewable Fuel Standard?
RFS Educational Series Briefing No. 1: What is The Renewable Fuel Standard?
Written by Clayton McMartin for Televent DTN
The Renewable Fuel Standard or RFS is a federal program which promotes the use of renewable fuels in the nation’s motor fuel pool. The initial RFS, now known as RFS1 was established as a result of the 2005 Energy Policy Act (EPACT) and went into effect on Sept. 1, 2007. Fundamental to the RFS is the mandated use of renewable fuels, such as ethanol and biodiesel, throughout the continental United States and Hawaii (1).
The first year of the new fuel standard required that a minimum of 4.7 billion gallons of renewable fuel, prorated to the months September through December, be blended into the nation’s on-road gasoline and diesel fuels. The actual standard is expressed as a percentage, based upon the American motorist’s fuel use in any given year. In 2007 the RFS value was 4.02 percent of the nation’s total on-road gasoline consumption, excluding Alaska. Working together with the Department of Energy, EPA is required to calculate and publish the coming year’s standard by Nov. 30th of each preceding year.
An advanced fuel standard, known now as RFS2, was enacted into law with the passage of the 2007 Energy Independence and Security Act (EISA), and signed by President George W. Bush on Dec. 19, 2007. The new RFS2 dramatically increases the mandated use of renewable fuels. This is accomplished through an increasing schedule of approximately 30 percent annually at which point it peaks at 36 billion gallons per year in 2022.
Originally scheduled to take effect on Jan. 1, 2009, RFS2 has been plagued with delays. Through the formal rulemaking process, EPA proposed a new effective date of Jan. 1, 2010, which will almost certainly be delayed even further.
In our next article we will investigate the renewable identification number also known as the RIN.
(1)Non-contiguous states and territories had the choice to opt into the renewable fuel standard as it was originally promulgated. Hawaii petitioned EPA on June 22, 2007 to opt into the RFS program, and EPA approved their request on July 22, 2007.
Click here to download a PDF of Educational Series Briefing No 1: What is The Renewable Fuel Standard?.
Tags: Clayton McMartin, Educational Briefing Series, Renewable Fuel Standard, RFS2, RINS
Televant DTN & CFCH Launch Educational Briefings Series on RFS2
How will New Fuel Standards Impact Your Profitability?
History has shown time and time again that the most successful businesses in any sector recognize and adapt to change sooner than their competition. Without a doubt, the Renewable Fuel Standard represents one of the biggest changes faced by both the petroleum and the agriculture industries in their histories. This fuel standard went into effect on Sept. 1, 2007 and has changed the way business is now done. And with the impending advanced standard, known as RFS2, the most successful operators in the supply chain will need to prepare now for even more changes in the coming months and years.
Recognizing the importance of these issues, and the needs of our readers, Telvent DTN is launching a series of educational briefings on the RFS. Clayton McMartin, founder of the RINSTAR® renewable fuel registry, is our guest editor for this informative series. Hundreds of companies conduct business through RINSTAR’s registry each day, representing billions of gallons of renewable fuel products every year.
McMartin is recognized as the industry expert on the RFS and the renewable fuel credit known as the RIN. During this series, he will share his valuable knowledge and unique insight into the biofuel supply chain and the world of RIN trading.
The series will highlight too how and why the motor fuel and agriculture industries are tied more closely together through regulations and how this fact will change the business environment forever.
Today starts the twice weekly series of briefings. The educational briefings will start with the basics and then build upon that foundation, providing a clearer picture of the changing business arena and better positioning you and your organization to compete.
Tags: Clayton McMartin, DTN, Educational Briefing Series, RFS2, RINS