The Facts on Ethanol

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> Renewable Fuel Standard

The Facts on Ethanol - Renewable Fuel Standard

The Renewable Fuels Standard (RFS) was part of the Energy Independence and Security Act of 2007 and sets annual requirements for the amount of renewable fuels produced and used in motor vehicles. Under the bill, the RFS requires 9 billion gallons of renewable fuels in 2008 and progressively increases to a 36 billion gallon requirement by 2022. Beginning in 2016, an increasing portion of renewable fuels must be advanced biofuels, such as cellulosic ethanol, starting at 3 billion gallons in 2016 and increasing to 21 billion gallons in 2022.

Why is it important?

Ethanol is an available solution to two of our country's most pressing challenges: energy security and global warming. Despite the obvious benefits of ethanol, we believe the RFS is needed in order to ensure that ethanol has market access. Without the RFS, it would be difficult for biofuels to become much more than simply a blending agent, since biofuels rely on competitors to get their product to the market.

The RFS helps to create a market for cellulosic ethanol. Two-thirds of the RFS are slated to be from advanced biofuels like cellulosic ethanol. Cellulosic ethanol already faces challenges for commercialization. Without an ensured market, it would be even more difficult.