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HB2460 repeals federal Renewable Fuel Standard

Repeals the RFS and amends related statutes to remove federal mandates and references, signaling a major policy shift.

The Brief

The Eliminating the RFS and Its Destructive Outcomes Act would repeal the federal Renewable Fuel Standard by repealing Section 211(o) of the Clean Air Act. It then makes conforming amendments to remove RFS references in related law, notably Clean Air Act Section 211(d) and the Petroleum Marketing Practices Act.

The bill preserves a precise baseline for regulatory references by inserting a clause that treats 40 CFR Part 80 as it existed the day before enactment.

This is a targeted deregulatory move that shifts federal energy policy away from mandated renewable fuel volumes. Because the RFS framework tied blending requirements to fuel volumes and credit markets, its repeal would eliminate those mandates and the associated regulatory regime, changing the landscape for ethanol, biodiesel, and other biofuels as well as for downstream fuel distributors.

The bill does not propose a replacement policy or alternative support; it simply removes the existing federal program and its cross-references from key statutes.

At a Glance

What It Does

The bill repeals Section 211(o) of the Clean Air Act, removing the federal Renewable Fuel Standard. It also trims references to the RFS in related statutes through conforming amendments. In PMPA, it adds a clause preserving the 40 CFR Part 80 reference as it stood before enactment.

Who It Affects

Directly affects refiners, fuel marketers, and downstream distributors who previously operated under the RFS. Biofuel producers and farmers relying on RFS demand will face reduced federal market signals. Regulatory agencies will need to adjust implementing rules and compliance expectations.

Why It Matters

This is a fundamental shift away from a federally mandated biofuel program toward a regulatory baseline that no longer compels renewable blending. The move has wide implications for energy markets, rural economies tied to biofuels, and federal climate policy signals.

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What This Bill Actually Does

The bill aims to wipe out the federal Renewable Fuel Standard by repealing the provision that created it, Section 211(o) of the Clean Air Act. By doing so, it eliminates the mandatory quotas and the associated regulatory machinery that govern renewable fuel blending and the credit market.

To keep regulatory references coherent, the bill also trims cross-references to the RFS in related laws, notably making conforming amendments to the Clean Air Act’s 211(d) and to the Petroleum Marketing Practices Act.

In addition, the bill inserts language in the PMPA to preserve the version of 40 CFR Part 80 that was in effect immediately before enactment. In practical terms, this means the law would reference a pre-enactment baseline, avoiding a post-enactment change in that particular regulatory anchor.

The overall effect is a narrowing of federal support for renewable fuels and a simpler regulatory landscape for fossil-fuel producers and fuel marketers, without offering a substitute policy framework for energy or carbon emissions reductions.

The Five Things You Need to Know

1

The bill repeals Section 211(o) of the Clean Air Act, ending the federal Renewable Fuel Standard.

2

It removes RFS references from the Clean Air Act’s Section 211(d) by conforming amendments.

3

It adds a clause to PMPA to preserve 40 CFR Part 80 as it existed the day before enactment.

4

The short title is the Eliminating the RFS and Its Destructive Outcomes Act.

5

Introduced in the 119th Congress on March 27, 2025 by Rep. Perry (with cosponsors Brecheen and McClintock).

Section-by-Section Breakdown

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Section 2(a)

Repeal of the Renewable Fuel Standard (Section 211(o))

Section 2(a) repeals Section 211(o) of the Clean Air Act, which established the federal Renewable Fuel Standard (RFS). The practical effect is to terminate the federal mandate for renewable fuel volumes and dismantle the program’s regulatory framework. No replacement policy is specified in this bill, so the federal policy signal toward biofuels would shift to other, non-RFS mechanisms or to a absence of a federal mandate.

Section 2(b)(1)

Conforming amendments to Clean Air Act

Section 2(b)(1) amends Section 211(d) of the Clean Air Act by removing references to subsections (n) and (o) wherever they appear and adjusting the text to reflect the repeal of the RFS. This ensures internal consistency within the statute after the RFS is repealed, but it also reduces the scope of the section in a way that could affect how related provisions are interpreted or applied in the future.

Section 2(b)(2)

Conforming amendments to Petroleum Marketing Practices Act

Section 2(b)(2) amends the Petroleum Marketing Practices Act (PMPA) by inserting, after ‘(40 CFR, part 80)’, the clause ‘as in effect on the day before the date of enactment of the Eliminating the RFS and Its Destructive Outcomes Act.’ This preserves the pre-enactment baseline for the regulatory reference in PMPA, limiting any transitional effects from the RFS repeal on how the PMPA interacts with fuel standards.

At scale

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Who Benefits and Who Bears the Cost

Every bill creates winners and losers. Here's who stands to gain and who bears the cost.

Who Benefits

  • Fossil-fuel refiners and marketers who previously faced RFS compliance costs and credit market exposure, reducing regulatory burden and uncertainty.
  • Large energy companies with exposure to RIN markets who would be less constrained by the RFS regime.
  • Gasoline distributors and retailers seeking lower regulatory complexity and compliance costs.
  • Petroleum product importers who would no longer face RFS-related constraints.

Who Bears the Cost

  • Biofuel producers and feedstock farmers reliant on RFS demand and credit markets, facing reduced federal demand signals.
  • Rural economies tied to ethanol production could experience revenue declines as federal backing wanes.
  • RIN market participants and biofuel supply chains that benefited from RFS liquidity and policy incentives.
  • Communities dependent on biofuel industry for jobs and economic activity may face transitional disruption.

Key Issues

The Core Tension

The central dilemma is whether eliminating a federally mandated program that propelled biofuel production should be pursued despite potential negative impacts on rural biofuel economies and climate policy signals, or whether preserving some level of federal support would better align energy policy with environmental and rural development goals.

The bill’s explicit focus on repealing the RFS and trimming cross-references reduces the federal policy footprint for renewable fuels, but it does not specify any replacement incentives or supports for the biofuel sector. A key tension is whether the removal of a federal mandate will be offset by market-driven or state-level policies, or whether it will lead to reduced investment in biofuels and a reallocation of capital toward other energy pathways.

Implementation will hinge on agency rulemaking and how EPA, the Department of Energy, and state regulators interpret and apply the new baseline created by the repeal and the conforming amendments. The absence of a transitional policy raises questions about short-term market volatility in biofuel demand, credit markets, and related supply chains as the system re-equilibrates to a post-RFS environment.

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