Regulatory Announcement

EPA Finalizes Regulations for the 

National Renewable Fuel Standard 

Program for 2010 and Beyond

The U.S. Environmental Protection Agency is finalizing revisions 

to the National Renewable Fuel Standard program (commonly 

known as the RFS program). This rule makes changes to the Renewable 

Fuel Standard program as required by the Energy Independence and 

Security Act of 2007 (EISA). The revised statutory requirements 

establish new specific annual volume standards for cellulosic biofuel, 

biomass-based diesel, advanced biofuel, and total renewable fuel that 

must be used in transportation fuel. The revised statutory requirements 

also include new definitions and criteria for both renewable fuels and 

the feedstocks used to produce them, including new greenhouse gas 

(GHG) emission thresholds as determined by lifecycle analysis. The 

regulatory requirements for RFS will apply to domestic and foreign 

producers and importers of renewable fuel used in the U.S.

Key Actions

This final action lays the foundation for achieving significant reductions of greenhouse 

gas emissions from the use of renewable fuels, reductions of imported petroleum and 

further development and expansion of our nation’s renewable fuels sector.

This action is also setting the 2010 RFS volume standard at 12.95 billion gallons 

(bg). Further, for the first time, EPA is setting volume standards for specific categories 

of renewable fuels including cellulosic, biomass-based diesel, and total advanced 

renewable fuels. For 2010, the cellulosic standard is being set at 6.5 million gallons 

(mg); the biomass-based diesel standard is being set at 1.15 bg, (combining the 2009 

and 2010 standards as proposed).

Office of Transportation and Air Quality

EPA-420-F-10-007

February 2010
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In order to qualify for these new volume categories, fuels must demonstrate that they meet 

certain minimum greenhouse gas reduction standards, based on a lifecycle assessment, in 

comparison to the petroleum fuels they displace. 

For its final determinations, EPA is using the best available models and has incorporated updated information based on:

•	 significant new scientific data available to the agency

•	 rigorous independent peer review

•	 extensive public comments

For the fuel pathways modeled, the following meet or exceed the respective required minimum 

GHG reduction standards: 

•	 corn based ethanol plants using new efficient technologies

•	 soy based biodiesel

•	 biodiesel made from waste grease, oils, and fats

•	 sugarcane based ethanol

Fuels derived from cellulosic materials meet, and generally significantly exceed, the minimum 

GHG reduction standard.

Additional information on these and other key changes can be found below. 

New Renewable Volume Standards 

This final rule revises the annual renewable fuel standards (RFS2) and makes the necessary program modifications as set forth in EISA. Of these modifications, several are notable. First, the 

required renewable fuel volume continues to increase under RFS2, reaching 36 bg by 2022. The 

following chart shows the volume requirements from EISA: 
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EISA Renewable Fuel Volume Requirements (billion gallons)

Year

Total renewable 

fuel requirement

Cellulosic 

biofuel 

requirement

Biomassbased diesel 

requirement

Total Advanced 

biofuel 

requirement

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023+

n/a

n/a

0.1

0.25

0.5

1.0

1.75

3.0

4.25

5.5

7.0

8.5

10.5

13.5

16.0

b

n/a

0.5

0.65

0.80

1.0

a

a

a

a

a

a

a

a

a

a

b

n/a

0.6

0.95

1.35

2.0

2.75

3.75

5.5

7.25

9.0

11.0

13.0

15.0

18.0

21.0

b

9.0

11.1

12.95

13.95

15.2

16.55

18.15

20.5

22.25

24.0

26.0

28.0

30.0

33.0

36.0

b a

 To be determined by EPA through a future rulemaking, but no less than 1.0 billion gallons.

 b To be determined by EPA through a future rulemaking.

EISA Expands Coverage to Include Diesel and Nonroad Fuels

EISA expanded the RFS program beyond gasoline to generally cover all transportation fuel. 

This now includes gasoline and diesel fuel intended for use in highway vehicles and engines, 

and nonroad, locomotive and marine engines. These provisions continue to apply to refiners, blenders, 

and importers of transportation fuel (with limited flexibilities for small refiners), and their percentage 

standards apply to the total amount of gasoline and diesel they produce for such use. 

2010 Standards

For 2010, EISA set a total renewable fuel standard of 12.95 billion gallons. This total volume, 

presented as a fraction of a refiner’s or importer’s gasoline and diesel volume, must be renewable 

fuel. The final 2010 standards are shown in below.
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Standards for 2010

Fuel Category Percentage of 

Fuel Required to 

be Renewable 

Volume of 

Renewable Fuel

(in billion gal)

Cellulosic biofuel 0.004% 0.0065

Biomass-based diesel *1.10% *1.15

Total Advanced biofuel 0.61% 0.95

Renewable fuel 8.25% 12.95

*Combined 2009/2010 Biomass-Based Diesel Volumes Applied in 2010

Setting the 2010 Cellulosic Standard

EISA requires the Administrator to evaluate and make an appropriate market determination 

for setting the cellulosic standard each year. Based on an updated market analysis considering 

detailed information from pilot and demonstration scale plants, an Energy Information 

Administration analysis, and other publically and privately available market information, we 

are setting the 2010 cellulosic biofuel standard at 6.5 million ethanol-equivalent gallons. While 

this volume is significantly less than that set forth in EISA for 2010, a number of companies and 

projects appear to be poised to expand production over the next several years. Since the cellulosic 

standard is lower than the level otherwise required by EISA, we will also make cellulosic 

credits available to obligated parties for end-of-year compliance, should they need them, at 

a price of $1.56 per gallon (gallon-RIN). In addition, while we have lowered the cellulosic 

standard below the level otherwise required in the Act, we have maintained the advanced 

biofuel and total renewable standards as that set in EISA for 2010. We are continuing to assess 

the growth of the cellulosic biofuel industry and intend to issue a notice of proposed rulemaking 

(NPRM) each spring and a final rule by November 30 of each year to set the renewable fuel 

standards for each ensuing year. 

Treatment of Biomass-based Diesel in 2010

This rule also includes special provisions to account for the 2009 biomass-based diesel volume 

requirements in EISA. As described in the final rule, in November 2008 we used the new total 

renewable fuel volume of 11.1 billion gallons from EISA as the basis for the 2009 total renewable 

fuel standard that we issued under the RFS1 regulations. While this approach ensured that the 

total mandated renewable fuel volume required by EISA for 2009 was used, the RFS1 regulatory 

structure did not provide a mechanism for implementing the 0.5 billion gallon 2009 requirement 

for biomass-based diesel. We are addressing this issue in this rule combining the 2010 biomassbased diesel requirement of 0.65 billion gallons with the 2009 biomass-based diesel requirement 

of 0.5 billion gallons to require that obligated parties meet a combined 2009/2010 requirement 

of 1.15 billion gallons by the end of the 2010 compliance year. 

Greenhouse Gas Reduction Thresholds

EISA established new renewable fuel categories and eligibility requirements, including setting 

the first mandatory GHG reduction thresholds for the various categories of fuels. A significant 

aspect of the RFS2 program is the requirement that the lifecycle GHG emissions of a qualifying 
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renewable fuel must be less than the lifecycle GHG emissions of the 2005 baseline average 

gasoline or diesel fuel that it replaces. Four different levels of reductions are required for the four 

different renewable fuel standards. These lifecycle performance improvement thresholds are 

listed in the table below: 

Lifecycle GHG Thresholds Specified in EISA 

(Percent reduction from 2005 baseline)

Renewable fuela

Advanced biofuel

Biomass-based diesel

Cellulosic biofuel

20%

50%

50%

60%

a

 The 20% criterion generally applies to renewable fuel from new facilities that 

commenced construction after December 19, 2007. 

Compliance with each threshold requires a comprehensive evaluation of renewable fuels, as well 

as the baseline for gasoline and diesel, on the basis of their lifecycle emissions. As mandated by 

EISA, the greenhouse gas emissions assessments must evaluate the aggregate quantity of greenhouse 

gas emissions (including direct emissions and significant indirect emissions such as significant 

emissions from land use changes) related to the full lifecycle, including all stages of fuel and 

feedstock production, distribution and use by the ultimate consumer. 

EPA’s lifecycle methodology required breaking new scientific ground and using analytical tools 

in new ways. Throughout the development of EPA’s lifecycle analysis, the Agency employed 

a collaborative, transparent, and science-based approach. EPA recognizes that as the state of 

scientific knowledge continues to evolve in this area, the lifecycle GHG assessments for a variety 

of fuel pathways are likely to be updated. Therefore, while EPA is using its current lifecycle assessments 

to inform the regulatory determinations for fuel pathways in this final rule, as required by the 

statute, the Agency is also committing to further reassess these determinations and lifecycle 

estimates. 

Based on the Agency’s current modeling of specific fuel pathways, which incorporated comments 

received through the third-party peer review process, and data and information from new studies 

and public comments, EPA has determined that:

•	 Ethanol produced from corn starch at a new (or expanded capacity from an existing)

natural gas-fired facility using advanced efficient technologies that we expect will be 

most typical of new production facilities complies with the 20% GHG emission reduction 

threshold

•	 Biobutanol from corn starch complies with the 20% GHG threshold

Ethanol produced from sugarcane complies with the applicable 50% GHG reduction 

threshold for the advanced fuel category

•	 Biodiesel from soy oil and renewable diesel from waste oils, fats, and greases complies

with the 50% GHG threshold for the biomass-based diesel category 

•	 Diesel produced from algal oils complies with the 50% GHG threshold for the biomassbased diesel category

•	 Cellulosic ethanol and cellulosic diesel (based on currently modeled pathways) comply

with the 60% GHG reduction threshold applicable to cellulosic biofuels 
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In addition to finalizing a threshold compliance determination for those pathways shown above 

that we specifically modeled, our technical judgment indicates certain other pathways are likely 

to be similar enough to modeled pathways that we are also assured these similar pathways qualify. 

Further, for other fuels we are establishing a process whereby a biofuel producer can petition the 

Agency to consider whether their product would be eligible for use in complying with an EISA 

standard. For additional information on the lifecycle GHG emissions methodology and results 

for renewable fuel pathways, and details on the petition process, please refer to the Lifecycle GHG 

Analysis Fact Sheet, EPA420-F-10-006 or the RFS2 preamble.

Requirements for Feedstock Producers

EISA changed the definition of renewable fuel to require that it be made from feedstocks that 

qualify as “renewable biomass.” EISA’s definition of the term “renewable biomass” limits the 

types of biomass as well as the types of land from which the biomass may be harvested. The 

definition generally applies restrictions to two feedstock sectors: the agricultural sector (planted 

crops and crop residues) and the non-agricultural sector (planted trees and tree residues, animal 

waste material and byproducts, slash and pre-commercial thinnings). These definitions affect 

feedstock use for production of compliant renewable fuels. 

In the RFS2 rule, EPA is finalizing details applicable to renewable fuel producers which are 

necessary to implement this requirement. For both domestic and foreign non-agricultural sector 

feedstocks, renewable fuel producers can comply with specific recordkeeping and reporting 

requirements for their individual facilities by collecting and maintaining appropriate records 

from their feedstock suppliers that their feedstocks comply with the renewable biomass requirement. Producers may also, as an alternative to these individual recordkeeping and reporting 

requirements, opt to form a consortium to fund an independent third party to conduct annual 

renewable biomass quality-assurance surveys, based on a plan approved by EPA. 

For agriculturally-based feedstocks produced in the U.S., renewable fuel producers will be in 

compliance based on EPA’s aggregate compliance determination. EPA will monitor agricultural 

land data yearly and should the baseline level of approved agricultural land be exceeded, the 

individual recordkeeping and reporting requirements imposed on the non-agricultural sector 

would then be required. The program also provides an option for a similar, future aggregate 

determination for renewable fuel produced from foreign-based agricultural feedstocks, if the 

source region can provide sufficient data to support an effective aggregate analysis and monitoring 

program. Otherwise, foreign producers must verify using one of the approaches applied in the 

non-agricultural sector.

Overview of Impacts of Increasing Volume Requirements in the RFS2 

Program

The increased use of renewable fuels required by the RFS2 standards is expected to reduce 

dependence on foreign sources of crude oil, increase domestic sources of energy, while at the 

same time providing important reductions in greenhouse gas emissions that contribute to 

climate change.
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Petroleum Consumption, Energy Security and Fuel Costs

We estimate that the increased use of renewable fuels needed to reach the 36 billion gallons 

mandated by 2022 relative to market projections in the absence of the mandate will displace 

about 13.6 billion gallons of petroleum-based gasoline and diesel fuel. This represents about 7 

percent of expected annual gasoline and diesel consumption in 2022. Furthermore, we expect 

the rule to decrease oil imports by $41.5 billion, and to result in additional energy security benefits 

of $2.6 billion. By 2022, the increased use of renewable fuels is expected to decrease gasoline 

costs by 2.4 cents per gallon and to decrease diesel costs by 12.1 cents per gallon. 

Greenhouse Gas Emissions

The expanded use of renewable fuels is expected to reduce greenhouse gas emissions by 138 

million metric tons when the program is fully implemented in 2022. The reductions would be 

equivalent to taking about 27 million vehicles off the road. 

Emissions and Air Quality 

The increased use of renewable fuels will also impact emissions with some emissions such as 

hydrocarbons, nitrogen oxides (NOx), acetaldehyde and ethanol expected to increase and 

others such as carbon monoxide (CO) and benzene expected to decrease. However, the impacts 

of these emissions on criteria air pollutants are highly variable from region to region. Overall 

the emission changes are projected to lead to increases in population-weighted annual average 

ambient PM and ozone concentrations, which in turn are anticipated to lead to up to 245 cases 

of adult premature mortality.

Agriculture Sector and Related Impacts

In 2022, the increased use of renewable fuels is expected to expand the market for agricultural 

products such as corn and soybeans and open new markets for advanced biofuels.  We estimate 

that the RFS2 program would increase net farm income by $13 billion dollars in 2022. We also 

expect corn exports to decrease by 8 percent, and soybean exports to decrease by 14 percent.

The rule is expected to increase the cost of food $10 per person in 2022.

For More Information

For more information on the final RFS2 rule please visit the RFS website at:

www.epa.gov/otaq/renewablefuels/index.htm 

Contact EPA’s.Offic.of.Transportation.and.Air.Quality,.Assessment.and.Standards.Division

information line at: asdinfo@epa.gov, or (734) 214-4636

@epa.gov, or (734) 214-4636Contctio