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Renewable Fuels Program


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Recently the EPA announced the establishment of the nation's first comprehensive Renewable Fuel Standard (RFS) program -- an action officials said would help reduce the nation's dependence on foreign oil. The program is estimated to cut petroleum use by up to 3.9 billion gallons and cut annual greenhouse gas emissions by up to 13.1 million metric tons by 2012 -- the equivalent of preventing the emissions of 2.3 million cars. The RFS is part of the effort toward meeting President Bush's goal reduce gasoline use by 20 percent within 10 years, officials said.

The RFS program will promote the use of fuels such as ethanol and biodiesel, which are largely produced from American crops. The RFS program establishes special incentives for producing and using fuels produced from cellulosic biomass, such as switchgrass and woodchips.

The RFS program requires major American refiners, blenders and importers to use a minimum volume of renewable fuel each year between 2007 and 2012. The minimum level or "standard," which is determined as a percentage of the total volume of fuel a company produces or imports, will increase every year. For 2007, 4.02 percent of all the fuel sold or dispensed to U.S. motorists will have to come from renewable sources, roughly 4.7 billion gallons.

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