Federal policy has played a key role in the emergence of the U.S.
biofuels industry. Policy measures include minimum renewable fuel
usage requirements, blending and production tax credits, an import
tariff, loans and loan guarantees, and research grants. This report
focuses on the mandated minimum usage requirements-referred to as
the Renewable Fuel Standard (RFS)- whereby a minimum volume of
biofuels is to be used in the national transportation fuel supply
each year. It describes the general nature of the RFS mandate and
its implementation, and outlines some emerging issues related to
the sustainability of the continued growth in U.S. biofuels
production needed to fulfill the expanding RFS mandate, as well as
the emergence of potential unintended consequences of this rapid
expansion.
General
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