The first generation of renewable fuels had a dramatic impact on the motor fuel industry. The increased use and acceptance of ethanol, and to some degree biodiesel, can be attributed to the Energy Policy Act of 2005 and the resultant fuel standard known now as RFS1. Congress and the EPA set forth the framework required to promote the use of these fuels, and the industry responded with a dramatic growth in renewable fuel production and use.

Prompted by the public’s growing interest in energy independence and climate change, the political machinery has once again raised the bar. The Energy Independence and Security Act of 2007 mandated the evolution of the RFS into the new standard, RFS2. Over two and one half years after President Bush signed the act into law, RFS2 will go into effect on July 1, 2010 under President Obama’s administration. Touted as a move toward greener jobs, the second generation renewable fuels initiative will bring industry and government together in ways never before experienced by the fuels industry. RFS2 provides incentives and opportunities to promote the production and use of renewable fuels throughout America’s transportation fuel supply chain. But with this new and enhanced program that mandates GHG performance standards for the first time, industry participants will experience increased government involvement and the associated complexities.

The complexity and rigor of the program necessitates that market participants develop comprehensive strategies to benefit from the program while minimizing risks of non-compliance and distraction. Opisnet? has drafted a white paper on the subject that is a resource on navigating through RFS2.

External Links

RSF2 Whitepaper Document

Opisnet