December 5, 2025
Understanding how the Renewable Fuel Standard (RFS) began, how much the program has changed, and why it even exists in the first place can be challenging. The RFS didn’t simply appear fully formed. It has been reshaped repeatedly by Congress, the courts, market forces, and each presidential administration. Taking a step back to understand the evolution helps explain many of the complexities we navigate today.
Origins: Energy Security, Rural Development, and Early Biofuel Policy
The RFS was enacted with the Energy Policy Act of 2005 (EPAct), which is rooted in Section 211(o) of the Clean Air Act. At the time, the U.S. was heavily focused on reducing dependence on imported oil and supporting domestic agriculture. It sought to address energy efficiency, coal, nuclear matters and security, vehicles and motor fuels, climate change technology, and a whole host of other energy production issues facing the United States in the early 2000s.
The Act was passed in the wake of 9/11, which provided a greater urgency across both aisles to reduce reliance on imported oil and protect infrastructure such as electrical grids, fuel supply chains, and refining capacity. While 9/11 didn’t directly cause Congress to enact the RFS, it accelerated its formation, influenced its framing, and united legislators to pass such a major energy bill.
EPAct established the first version of the RFS, which is now called “RFS1”. It was relatively simple compared to today’s program.
Soon, the rapid growth of the biofuels industry outpaced the framework Congress had created. In response, Congress dramatically expanded and overhauled the program in the Energy Independence and Security Act of 2007 (EISA). This law created what we now know as “RFS2” with:
- Five renewable fuel categories (D3, D4, D5, D6, D7)
- Lifecycle greenhouse gas thresholds
- Larger renewable fuel blending targets with defined increases through 2022
- Stronger incentives for advanced and cellulosic technologies
RFS2 is still the governing structure we use today.
Evolution Through Administrations
Bush Administration (2001–2009): Building the Foundation
Although only the last few years of the Bush Administration operated under the RFS, this period established the program’s initial direction. EPAct 2005 was signed into law under President George W. Bush, and EISA 2007, was also signed during his tenure.
Key features of this era:
- Bipartisan support for energy security initiatives
- Early development of RIN trading systems
- Initial build-out of the biofuel production landscape
- Release of foundational RFS regulations (RFS1 and preparations for RFS2)
Professionals who have been in the industry since the 2000s will remember how basic the early reporting and enforcement mechanisms were compared to today.
Obama Administration (2009–2017): Scaling, Setbacks, and Court Challenges
The Obama Administration oversaw the bulk of the RFS volume ramp-up and much of the regulatory structure we use today. This period was marked by attempted growth in advanced biofuels, increasing complexity in implementation, and legal battles which still influence EPA decision-making.
What defined this era:
- Increases in annual volume obligations (RVOs)
- Introduction of the waiver credit and use of cellulosic waivers
- Increased scrutiny of RIN markets after the early RIN fraud cases, including the adoption of a voluntary quality assurance program to ensure RIN integrity and prevent fraud
Trump Administration (2017–2021): SRE Expansion and Volatility
The Trump Administration brought significant changes, especially around Small Refinery Exemptions (SREs). Issuance of SREs increased dramatically, creating volatility in the RIN market and years of compliance uncertainty.
Major features of this era:
- Surge in SRE petitions and approvals, blanket-like approvals
- Court decisions (e.g., Renewable Fuels Association v. EPA) challenging EPA’s approach to exemptions
- Strong political divide between agricultural interests and refining interests
- RIN market fluctuations
- Delayed RVO rulemakings and increased retroactive corrections
For daily RFS practitioners, this era was often defined by unpredictability and rapid shifts in obligated party expectations.
Biden Administration (2021–2025): Market Stability, Compliance Tightening, and the “Set Rule”
The Biden Administration transitioned to the post-2022 “Set” era, where EPA now determines volumes based on statutory factors rather than fixed congressional schedules. It marked one of the most significant structural transitions since RFS2 was created.
Key characteristics:
- Multi-year RVO packages aimed at reducing uncertainty
- Pursued a policy of largely denying small refinery exemptions in response to court rulings overturning Trump era blanket approvals
- Increased interest in sustainable aviation fuel (SAF) and long-term decarbonization
- Policy debate around eRINs, biomass-based diesel growth, and advanced feedstocks
While this era took place during the peak/tail end of COVID, it still seemed aimed at providing certainty and stability to the RFS. However, this was often met with legal challenges, many of which are still working their way through the courts, and political opposition.
The RFS Today: A Mature but Still Evolving Program and Trump Administration 2.0 (2025-Present)
Now twenty years old, the RFS is no longer the young, rapidly expanding program it once was, but it is not static either. The post-2022 Set authority gives EPA more discretion, which in turn creates new questions about long-term policy direction:
- How aggressively will volumes rise?
- Will Congress revisit the program as electric vehicles, LCFS programs, and new climate policies accelerate?
- How will SREs continue to be addressed?
- How will EPA handle the reallocation of millions of gallons from its backlog of SREs?
- Will Trump’s approach to SREs be litigated once again, especially with the half RIN concept?
- What kind of impact will the growing volumes of SAF have?
The Trump Administration has clearly stated it is set on advancing American production, focusing on reducing the reliance on foreign oil, promoting U.S. energy independence, and prioritizing American-produced biofuels and feedstocks. This has come with the proposal to reduce the value of RINs for imported biofuels and feedstocks, to incentivize domestic production, a move which has ramped up the tension between refiners and farmers.
Today, the RFS program now requires a deep understanding not just of annual volumes, but of administrative priorities, court rulings, petitions, public comments, and EPA interpretations which continually shape the ever-changing landscape.
Looking Ahead
The RFS, though initially born out of concerns about energy security, domestic dependance, and rural economic development, has grown into a powerful market driver for biofuels. Every administration has left its mark, sometimes through stable growth, sometimes through policy swings and legal battles. While much is still up in the air, one thing is clear, as we move further into the Set era, the RFS will continue to evolve.
By Tori Reese, Compliance Advisor