The Renewable Fuel Standard establishes annually increasing requirements for renewable fuels to be produced and used in the United States – rising to 36 billion gallons in 2022. Broadly, the goals of the statute are to reduce both greenhouse gas emissions from the U.S. transportation sector and the nation’s reliance on imported oil by displacing petroleum fuels. The program, which is part of the Clean Air Act, is administered by the U.S. Environmental Protection Agency (EPA). Specifically, the statute establishes a set of nested Renewable Volume Obligations (RVOs) for use of cellulosic biofuels, biomass-based diesel, and unspecified advanced and conventional renewable fuels.
Figure 1 depicts the nested structure of the RVOs.
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