Renewable Fuels

Renewable Fuels Standard
On December 19, 2007, the Energy Independence and Security Act of 2007 (H.R. 6) was signed into law. This comprehensive energy legislation amends the Renewable Fuels Standard (RFS) signed into law in 2005, growing to 36 billion gallons in 2022. By doing so, the bill seizes on the potential that renewable fuels offer to reduce foreign oil dependence and greenhouse gas emissions and provide meaningful economic opportunity across this country, putting America firmly on a path toward greater energy stability and sustainability.

According to a January 2008 study, the economic impact of a 36 billion gallon RFS is as follows:

will add more than $1.7 trillion to the Gross Domestic Product between 2008 and 2022;
generate an additional $436 billion of household income for all Americans during the same time period;
support the creation of as many as 1.1 million new jobs in all sectors of the economy; and,
generate $209 billion in new Federal tax receipts.

Summary of the Biofuels Provisions - Title II
DEFINITIONS (Sec. 201)

Establishes definitions for the renewable fuels program, including conventional biofuel, advanced biofuels, cellulosic biofuels and biomass-based diesel.
Conventional biofuel is ethanol derived from corn starch. Conventional ethanol facilities that commence construction after the date of enactment must achieve a 20 percent greenhouse gas (GHG) emissions reduction compared to baseline lifecycle GHG emissions. The 20 percent GHG emissions reduction requirement may be adjusted to a lower percentage (but not less than 10 percent) by the U.S. Environmental Protection Agency (EPA) Administrator if it is determined the requirement is not feasible for conventional biofuels.
Advanced biofuels is renewable fuel other than ethanol derived from corn starch, that is derived from renewable biomass, and achieves a 50 percent GHG emissions reduction requirement. The definition – and the schedule -- of advanced biofuels include cellulosic biofuels and biomass-based diesel. The 50 percent GHG emissions reduction requirement may be adjusted to a lower percentage (but not less than 40 percent) by the Administrator if it is determined the requirement is not feasible for advanced biofuels. (Cellulosic biofuels that do not meet the 60 percent threshold, but do meet the 50 percent threshold, may qualify as an advanced biofuel.)
Cellulosic biofuels is renewable fuel derived from any cellulose, hemicellulose, or lignin, that is derived from renewable biomass, and achieves a 60 percent GHG emission reduction requirement. The 60 percent GHG emissions reduction requirement may be adjusted to a lower percentage (but not less than 50 percent) by the Administrator if it is determined the requirement is not feasible for cellulosic biofuels.