As part of the comprehensive Energy Independence and Security Act of 2007 that was signed into law Dec. 2007, the Renewable Fuels Standard (RFS) helps define the role that renewable fuels such as ethanol and biodiesel will play in America’s quest to improve homeland security through increasing our use of renewable, domestically produced transportation fuels—and improve our environment by reducing toxic exhaust emissions.

The RFS provides stable demand for the use of renewable fuels such as ethanol while providing refiners with the flexibility to blend ethanol more efficiently in areas of the country where it makes the most sense economically and environmentally. The measure sets the minimum annual level of renewable fuel blended into the nation’s fuel supply at 36 billion gallons per year by 2022. The legislation guarantees a robust future market for corn and allows for continued opportunities for farmer investment in new ethanol plants.

The RFS schedule requires 9 billion gallons of renewable fuels to be blended into the national gasoline supply in 2008, with incremental increases each successive year.

In December, President Bush signed the Energy Independence and Security Act (EISA) of 2007, which responded to his "Twenty in Ten" challenge in last year's State of the Union Address to improve vehicle fuel economy and increase alternative fuels.  

• The Renewable Fuels Mandate will increase the use of renewable fuels by 500 percent – requiring fuel producers to supply at least 36 billion gallons of renewable fuel in the year 2022.
• The Vehicle Fuel Economy Mandate specifies a national mandatory fuel economy standard of 35 miles per gallon by 2020, which will save billions of gallons of fuel and increase efficiency by 40 percent. (Click Here) for more information

An RFS will also reduce the cost of the farm bill by slightly raising the price of corn, creating more value-added opportunities for farmers and strengthening rural economies.