IRFA celebrates 20 years of US Renewable Fuel Standard

Aug. 8 marked the 20th anniversary of the U.S. Renewable Fuel Standard, a landmark policy established under the Energy Policy Act of 2005 and signed into law by President George W. Bush.  

The RFS has played a pivotal role in shaping America’s energy landscape by cracking the petroleum monopoly and allowing increasing volumes of renewable fuels to be blended into the nation’s fuel supply.  

“The RFS is the most profoundly positive and transformative energy policy since the Clean Air Act amendments of 1990,” said Monte Shaw, executive director of the Iowa Renewable Fuels Association.  

“The RFS has been instrumental in driving emissions reductions, enhancing American energy dominance and strengthening rural economies across the country,” Shaw said. “It literally changed the landscape of American agriculture from two decades of government support into a market-driven juggernaut.”  

When the “Great RFS Compromise” was struck between the American Petroleum Institute and the Renewable Fuels Association in 2002, production of ethanol was barely over 2 billion gallons per year.  

Despite the historic agreement, it took until 2005 for Congress to enact the RFS, setting a goal of 7.5 billion gallons.  

In 2007, the RFS was greatly expanded and diversified to include conventional (corn ethanol), biobased diesel and cellulosic ethanol categories.  

Last year, the U.S. produced over 16 billion gallons of ethanol—an eight-fold increase, and over 5 billion gallons of biobased diesel.  

“I was there for the RFS compromise and ultimate enactment, and I can assure you that our critics didn’t think we could ever achieve these production levels,” Shaw added. “Quite frankly, I’m not sure many of us in 2005 would have felt totally confident predicting today’s immense production. It just goes to show that you should never underestimate the American farmer. Open up the market and then get out of the way because they will get the job done. As we look ahead, the most exciting thing is that we’re just getting started. IRFA remains dedicated to fostering market access and growth for the renewable fuels industry and ensuring the RFS continues to delivery benefits for future generations.”