Questions And Answers On The Renewable Fuel Standard Program

RENEWABLE FUEL STANDARD: Program Unlikely to Meet Its Targets for Reducing Greenhouse Gas Emissions

Federal policy has played a key role in the emergence of the U.S. biofuels industry. Policy measures include minimum renewable fuel usage requirements, blending and production tax credits, an import tariff, loans, and research grants. This report focuses on the mandated minimum usage requirements, the RFS, whereby a minimum volume of biofuels is to be used in the national transport. fuel supply each year. It describes the general nature of the RFS mandate and its implementation, and outlines some emerging issues related to the sustainability of the continued growth in U.S. biofuels production needed to fulfill the expanding RFS mandate, as well as the emergence of potential unintended consequences of this rapid expansion. A print on demand report.

The fed. gov¿t. supports the use of biofuels -- transportation fuels produced from renewable plant matter, such as corn -- in the pursuit of energy, environ., and agr. policy goals. Tax credits (TC) encourage the prod¿n. and sale of biofuels in the U.S., lowering the costs of producing biofuels, such as ethanol or biodiesel, relative to the costs of producing their substitutes -- gasoline and diesel fuel. Fed. mandates require the use of specified minimum amounts and types of biofuel. This study assesses the incentives provided by the TC for producing different types of biofuels and analyzes whether they favor one type of biofuel over others. Estimates the cost to consumers of reducing the use of petroleum fuels and emissions of greenhouse gases through those TC. Illus.