Regulation of Fuels and Fuel Additives: Renewable Fuel Standard ...

I. Background
This section describes the required elements of the renewable fuel program, also
known as the Renewable Fuel Standard (RFS) program, as stipulated in Section 211(o) of
the Clean Air Act (CAA) as amended by the Energy Policy Act of 2005 (the Energy Act
or the Act).
A. The Role Of Renewable Fuels In The Transportation Sector
Renewable fuels have been an important part of our nation’s transportation fuel
supply for many years. Following the CAA amendments of 1990, the use of renewables
fuels, particularly ethanol, increased dramatically. Several key clean fuel programs
required by the CAA established new market opportunities for ethanol. A very
successful mobile source control strategy, the reformulated gasoline (RFG) program, was
implemented in 1995. This program set stringent new controls on the emissions
performance of gasoline, which were designed to significantly reduce summertime ozone
precursors and year round air toxics emissions. The RFG program also required that
RFG meet an oxygen content standard. Several areas of the country began blending
ethanol into gasoline to help meet this new standard, such as Chicago and St. Louis.
Another successful clean fuel strategy required certain areas exceeding the national
ambient air quality standard for carbon monoxide to also meet an oxygen content
standard during the winter time to reduce harmful carbon monoxide emissions. Many of
these areas also blended ethanol during the winter months to help meet this new standard,
such as Denver and Phoenix. As a result of these programs, and other factors, currently
all areas requiring RFG or winter oxygenated fuels are blending ethanol at some level to
support meeting the clean fuel requirements.
Today, the role and importance of renewable fuels in the transportation sector
continues to expand. In the past several years as crude oil prices have soared above the
lower levels of the 1990's, the relative economics of renewable fuel use has improved
dramatically. In addition, since the vast majority of crude oil produced in or imported
into the U.S. is consumed as gasoline or diesel fuel in the U.S., concerns about our
dependence on foreign sources of crude oil has renewed interest in renewable
transportation fuels. The passage of the Energy Policy Act of 2005 demonstrated a
strong commitment on the part of US policymakers to consider additional means of
supporting renewable fuels as a supplement to petroleum-based fuels in the transportation
sector. The RFS program is such a program.
The RFS program was debated by the U.S. Congress over several years before
finally being enacted through passage of the Energy Policy Act of 2005. The RFS
program is first and foremost designed to increase the use of renewable fuels in motor
vehicle fuels consumed in the U.S. In this context, it is expected to simultaneously
reduce dependence on foreign sources of petroleum, increase domestic sources of energy,
and diversify our energy portfolio to help in moving beyond a petroleum-based economy.
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