Understanding Biofuel Regulations in the United States

The United States has established a regulatory framework to promote the production and use of biofuels, with the primary objective of reducing greenhouse gas emissions, enhancing energy security, and supporting rural economies. The cornerstone of federal biofuel regulation is the Renewable Fuel Standard (RFS), first introduced under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007.

The RFS mandates that transportation fuel sold in the U.S. contains a minimum volume of renewable fuel. Each year, the Environmental Protection Agency (EPA) sets Renewable Volume Obligations (RVOs), which define how much renewable fuel must be blended into the national fuel supply. These volumes are broken down into categories such as cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel.

Compliance is tracked using Renewable Identification Numbers (RINs)—credits assigned to each gallon of renewable fuel produced or imported. Obligated parties, such as refiners and importers, must submit enough RINs to prove compliance annually.

Additional regulations apply at the state level. For example, California’s Low Carbon Fuel Standard (LCFS) sets carbon intensity targets for fuels used in the state, encouraging the adoption of biofuels with lower lifecycle emissions. Oregon and Washington have similar programs.

To qualify for federal or state programs, biofuel producers must meet specific sustainability criteria related to feedstock sourcing, land use, and lifecycle GHG performance.

Together, these regulatory mechanisms aim to foster innovation, lower emissions in the transportation sector, and accelerate the transition toward a more sustainable fuel economy.