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What is RFS?
RFS mandates oil refiners and oil importers and exporters to blend certain amount of new and renewable energy fuel into their transportation fuels. The industry has been given 2 years of grace period since the program was promulgated on July 30, 2013. The RFS program will be implemented from July 31, 2015.
History
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- Pilot program: KEA ran pilot program in capital area in 2002~2005 to assess current situation in the market and implemented nationwide RFS program with diesel in July 2006.
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- Voluntary blending: Related government agencies co-established The 1st Medium and Long-Term Biodiesel Promotion Plan in 2007. The plan sets the blending ratio of diesel and encourages voluntary participation by offering incentives.
- The 1st Medium and Long-Term Biodiesel Promotion Plan (Sept 2007): oil tax exemption (’07~’11), strengthen waste cooking oil collection efforts
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- Mandatory RFS: The 2nd Medium and Long-Term Biodiesel Promotion Plan was established in 2010 and the oil tax exemption ended in 2011. It has become mandatory to mix biodiesel for 2~5% of the total transportation fuel since 2012 under the Notification on Quality of Diesel of Petroleum and Petroleum Substitute Fuel Business Act (Dec 30, 2011).
- The 2nd Medium and Long-Term Biodiesel Promotion Plan (Dec 2012): RFS for diesel, plans to utilize animal oil and fat
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- Amendment of the law: The Act on the Promotion of the Deployment, Use and Diffusion of New and Renewable Energy which included RFS was amended on July 2013 (will be implemented in 31 July 2015)
- Construction of infrastructure such as storage tanks and supply pipelines, 2 years of grace period to adjust related policies
