The Renewable Energy Standard

On December 19, 2007, the Energy Independence and Security Act of 2007 (H.R. 6) was signed into law. This comprehensive energy legislation amended the Renewable Fuels Standard (RFS), which was signed into law in 2005. The RFS Directs the U.S. EPA to promulgate regulations ensuring that applicable volumes of renewable fuel are sold or introduced into commerce in the United States annually.

RFS requires the use of ethanol and other biofuels in the U.S. fuel supply and creates tax incentives for E85 fueling infrastructure. Specifically, Congress created a Volumetric Ehtnaol Excise Tax Credit of $0.50 for each gallon of ethanol which is blended with gasoline.

The applicable volume for 2008 as set at 9.0 billion gallons, ending at 36 billion gallons in 2022.
The legislation seized 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 the United States firmly on a path toward greater energy stability and sustainability.