• RFS requires transportation fuel sold in the U.S. to contain a minimum volume of renewable fuels.
• Renewable fuel categories include conventional and advanced biofuel.

The Renewable Fuel Standard (RFS) is a federal program that requires transportation fuel sold in the U.S. to contain a minimum volume of renewable fuels.

The RFS requires renewable fuel to be blended into transportation fuel in increasing amounts each year, escalating to 36 billion gallons by 2022. Each renewable fuel category in the RFS program must emit lower levels of greenhouse gases (GHGs) relative to the petroleum fuel it replaces.

RFS requirements

The Environmental Protection Agency (EPA) establishes the volume requirements for each fuel category based on volumes set by the Energy and Independence and Security Act of 2007 (EISA) and fuel availability. The EPA tracks compliance with the program through the Renewable Identification Number (RIN) system, which assigns a RIN to each gallon of renewable fuel.

Oil refiners and gasoline and diesel importers are typical entities regulated by the RFS. The volumes these industries are required to meet is based on a percentage of its petroleum product sales. Covered entities can meet their renewable fuel obligations (RVOs) by selling required biofuel volumes or by purchasing RINs from parties that exceed their requirements.

Renewable fuel categories include:

• Conventional biofuel: Any fuel derived from starch feedstocks (e.g., corn and grain sorghum). Conventional biofuels produced in plants built after 2007 must demonstrate a 20 percent reduction in life cycle GHG emissions.
• Advanced biofuel: Any fuel derived from cellulosic or advanced feedstocks. This may include sugarcane or sugar beet-based fuels; biodiesel made from vegetable oil or waste grease; renewable diesel co-processed with petroleum; and other biofuels that may exist in the future. Nested within advanced biofuels are two sub-categories: cellulosic biofuel and biomass-based diesel. Both biomass-based diesel and cellulosic biofuel that exceed volumes in their respective categories may be used to meet this category. Fuels in this category must demonstrate a life cycle GHG emissions reduction of 50 percent.
  • Biomass-based diesel: A diesel fuel substitute made from renewable feedstocks, including biodiesel and non-ester renewable diesel. Fuels in this category must demonstrate a life cycle GHG emissions reduction of 50 percent.
  • Cellulosic biofuel: Any fuel derived from cellulose, hemicellulose, or lignin — nonfood-based renewable feedstocks. Fuels in this category must demonstrate a life cycle GHG emissions reduction of at least 60 percent.