United States biofuel policies
United States policy in regard to biofuels, such as ethanol fuel and biodiesel, began in the early 1990s as the government began looking more intensely at biofuels as a way to reduce dependence on foreign oil and increase the nation's overall sustainability. Since then, biofuel policies have been refined, focused on getting the most efficient fuels commercially available, creating fuels that can compete with petroleum-based fuels, and ensuring that the agricultural industry can support and sustain the use of biofuels. Introduction. Case for biofuels. In 2010, the United States imported about of crude oil . Add to this about produced in the United States, and the total consumption in the United States is of crude for 2010. Imported oil accounted for 2/3 of the oil supply in the US, with about 42% of imported oil coming from OPEC countries. According to the British Petroleum Statistical Review, world oil reserves are considered to be . Of this, , or close to 60% of the world's oil supply, are located in the Middle East. The United States contains about 2.1% of the world's oil supply, about . About 1/3 of U.S oil consumption comes from domestic supplies, and  with current trends in production, U.S. oil reserves are expected to be depleted in about 10 years. The world's two largest developing economies, China and India, are expected to deplete their reserves in about 10 and 21 years, respectively. At current rates of production, the oil reserves in the Middle East are expected to be depleted in 85 years. Once the reserves in the U.S., China, and India are depleted, these countries will have to rely much more heavily on oil importation, putting more pressure on oil exporting areas of the world, and thus draining reserves in at a  faster rate. The BP Statistical Review predicts the depletion of all the world's proven oil reserves in 45.7 years. In 2009, the world consumed of crude oil per day, which translates to a year. This is a vast mount of nonrenewable energy, and numerous alternative fuel options are being explored to replace this fossil fuel. Of all the options for new fuels, biofuels stand out as the most compatible. The other possible alternatives have a number of technological and economical hurdles that prevent them from being as feasible as biofuels. One option being considered is hydrogen. Hydrogen burns clean , and is an extremely abundant atom on Earth. The problem is that hydrogen does not exist by itself on Earth. Instead, it is locked in hydrocarbon molecules and water molecules. Collecting hydrogen, either from reformed methane or electrolysis of water, is a very expensive and energy intensive. Hydrogen cars, either as hydrogen combustion or fuel cells, require the installation of new infrastructure for hydrogen production, transportation, storage, distribution, and vehicle refueling. The current gasoline infrastructure is designed to operate around a liquid fuel, not a gaseous fuel. Current vehicles are not designed to use hydrogen fuel, which would require existing  cars to be retrofitted and future cars to be redesigned. Another option being considered is battery powered electric vehicles. Though they do not directly consume fossil fuels, they do rely on an external source to provide the necessary electricity, and the most widely used fuel for electricity generation is coal. As with hydrogen cars, current cars would need to be retrofitted and future cars would need to be redesigned with electric drive trains. Currently there is no large-scale recharging network for plug in vehicles. Battery technology also hampers the feasibility of electric vehicles. Lead acid batteries are heavy and  hold less charge than their competitors, lithium-ion batteries. Lithium-ion batteries hold more charge and are lighter than lead acid batteries, but are also more expensive. Biofuels on the other hand, do not require new pumping infrastructure. With slight modifications, biofuels, which are a liquid fuel, can be compatible with the storage, transportation, distribution, and vehicle refueling infrastructure currently in existence. Since they are a combustible liquid, biofuels can be used in current internal combustion engines with some modifications. Presidential orders. Goals for biofuel policy have usually been led or motivated by orders and recommendations from those in power . During his term as president George W. Bush discussed specific goals for biofuels in his State of the Union address in 2006 and 2007. In his 2006 speech he called for cellulosic ethanol to be cost competitive and on the market with corn based ethanol by the year 2012. A year later President Bush called for a complete reduction of 20% in U.S. gasoline consumption in 10 years. This goal was to be met by setting a Renewable Fuel Standard of by 2017 and by reforming and modernizing Corporate Average Fuel Economy (CAFE) standards. President Bush also called for increased  investment in hydrogen fuels, advanced batteries, biodiesel fuels, and new fuel production methods. Recently Barack Obama has also echoed these sentiments, calling for a reduction in petroleum usage and an increase in biofuel production. In September 2014, The American Petroleum Institute on Thursday accused the White House accused of attempting to use 2014 biofuel targets to influence a tight U.S. Senate race, stating that increase in the targets could raise the price of gasoline. The Renewable Fuel Standard requires increasing amounts of ethanol and biodiesel to be mixed into U.S. fuel supplies each year until 2022. Legislative history. Energy Policy  Act of 1992 (EPAct 1992). One of the first legislative documents to directly address the need of biofuels and their development was the Energy Policy Act of 1992 (). This Act directed more studies to be done on biofuels as well as gave some guidance for federal programs for the increased implementation of biofuels. Title III – Alternative fuels: general. Title III addresses alternative fuels in a general sense. This title amends the Energy Policy and Conservation Act of 1975 () and sets a number of guidelines for and requirements of the Secretary of Energy. It establishes guidelines for the Secretary of Energy  to acquire alternative fueled vehicle for the Federal Fleet. It also requires the Secretary of Energy to study and report to Congress the Federal experience with alternative fueled heavy duty vehicles. The Secretary of Energy is also required to set a fiscal-year schedule for minimum Federal Fleet requirements for alternative fuel vehicles. Finally, it directs the Secretary to provide guidance and technical assistance to Federal agencies for the procurement and placement of alternative fueled vehicles. Title III requires two other changes within the federal government related to alternative fuels. First, it directs the Administrator of General Services (the Administrator ) to establish an annual recognition and incentive awards program for Federal employees who demonstrate the strongest commitment to the use of alternative fuels and fuel conservation in Federal motor vehicles. Second, it directs the Administrator and the Postmaster General to report to the Congress on the alternative-fueled vehicle program within their respective agencies. Title IV – Alternative fuels: non-federal programs. Title IV makes 2 changes to existing laws in terms of alternative fuels. First, it amends the Energy Policy and Conservation Act of 1975 () to authorize appropriations for FY 1993 through 1995 for the alternative fuels truck commercial application  program. Second, it amends the Motor Vehicle Information and Cost Savings Act of 1972 () to reflect the provisions of this Act regarding the use of alternative motor fuels. Title IV directs the Secretary of Energy (the Secretary) to establish a public information program on the use of alternative fuels in motor vehicles, and requires the Secretary to establish a data collection program for persons engaged in certain activities related to alternative-fuel vehicles and facilities. This order also requires the Federal Trade Commission to formulate and issue rules for labeling requirements for alternative fuels and alternative fueled vehicles. Also, the  Secretary is instructed to promulgate guidelines for comprehensive State program plans and incentives to accelerate the introduction and use of alternative fuels and alternative-fueled vehicles. Title IV also makes changes for the Secretary of Transportation. It authorizes the Secretary of Transportation to enter into cooperative agreements and joint ventures with governmental and regional transit authorities of certain-sized urban areas to demonstrate the feasibility of commercial application of alternative fuels for motor vehicles used for mass transit (including school buses). The Secretary is directed to do 4 things: Title V – Availability and use of replacement fuels, alternative fuels, and  alternative fueled private vehicles. Title V sets forth a timetable for the acquisition of alternative-fueled vehicles by specified persons engaged in fuels transactions. It also sets forth specified fleet program purchase goals for alternative-fueled vehicles for specified calendar years (including mandatory State fleet programs), and sets forth civil penalties for violations of this Act. This title also instructs the Secretary of Energy to: Energy Policy Act of 2005 (EPAct 2005). The next major legislative document to specifically deal with biofuels was the Energy Policy Act of 2005 (). It recommended new studies as well as gave Congress some more  power in regulating the biofuel industry. It also made some large steps in encouraging the use of biofuels such as ethanol and biodiesel. Title VII – Vehicles and fuel. Title VII makes changes for government agencies and vehicle fleets in relation to alternative fuels. First, in Section 701, the Energy Policy and Conservation Act () is amended to cite circumstances that permit an agency to qualify for a waiver of the alternative fuel use requirement applicable to dual fueled federal light duty vehicles. Second, in Section 702, changes from discretionary to mandatory the authority of the General Services Administration (GSA), and any  other federal agency that procures motor vehicles for distribution to other federal agencies, to allocate the incremental cost of alternative fueled vehicles over the cost of comparable gasoline vehicles across the entire fleet of motor vehicles distributed by such agency. Third, section 705 changes from November 13, 1999, to February 15, 2006, the deadline for the first annual report by each federal agency on its compliance with alternative fueled vehicle purchasing requirements. Fourth, Section 707 exempts from the alternative fuel requirements of the Energy Policy Act of 1992 ()vehicles directly used in the emergency repair of transmission lines and in  the restoration of electricity service following power outages. Title VII makes a number of changes for the Secretary of Energy. First, section 703 amends the Energy Policy Act of 1992 () to authorize the Secretary of Energy to waive compliance with the fleet requirement program governing federal and state motor vehicle fleets. This applies only if it is shown that the fleet will achieve a reduction in annual petroleum fuel consumption, and complies with all applicable vehicle emission standards. Second, the Secretary of Energy is instructed by section 706 to establish a program to improve technologies for the commercialization two classifications  of vehicles: 1) Combination hybrid/flexible fuel vehicle, 2) Combination plug-in hybrid/flexible fuel vehicle. This section also authorizes funds for FY2006-FY2009 for establishing this program. Third, section 704 directs the Secretary to study and report to Congress on the effect that certain alternative fueled vehicle requirements have had on three areas: 1) The development of alternative fueled vehicle technology, 2) The availability of that technology in the market, 3) The cost of alternative fueled vehicles. Title IX – Research and development. Subtitle C: Renewable energy. Section 932 of Subtitle C directs the Secretary to conduct a program of  research, development, demonstration, and commercial application for bioenergy. Areas of interest include: (1) biopower energy systems; (2) biofuels; (3) bioproducts; (4) integrated biorefineries that may produce biopower, biofuels, and bioproducts; and (5) cross-cutting research and development in feedstocks; (6) integrated biorefineries. Subtitle D: Agricultural biomass research and development programs. Subtitle D creates of number of duties for the Secretaries of Energy and Agriculture. In Section 941 of Subtitle D, the Secretaries of Agriculture and of Energy are instructed to direct research and development toward three areas related to biofuels. First, feedstock production through the development of crops and cropping  systems relevant to production of raw materials for conversion to biobased fuels and biobased products. Second, developing technologies for converting cellulosic biomass into intermediates that can subsequently be converted into biobased fuels and biobased products. Third, product diversification through technologies relevant to production of a range of biobased products (including chemicals, animal feeds, and cogenerated power) that eventually can increase the feasibility of fuel production in a biorefinery. This section authorizes funds for the program for FY2006-FY2015. For the Secretary of Energy, section 942 Instructs the Secretary to establish an incentive program for the production of cellulosic biofuels. This  section prescribes procedural guidelines including auction and reverse auction procedures. For the Secretary of Agriculture, section 944 directs the Secretary to make available on a competitive basis grants for entities that meet any of three classifications. First, certain small manufacturers for biobased product marketing and certification purposes. Second, a certain regional bioeconomy development association, agricultural or energy trade association, or Land Grant institution. Third, enterprises owned by agricultural producers, for the purposes of demonstrating cost-effective, cellulosic biomass innovations for feedstock preprocessing and crop harvesting, with a requirement to produce ethanol, or for another energy purpose. This section authorizes funds  for the program for FY2006-FY2015. The Secretary of Agriculture is also instructed in Section 947 to carry out two actions. First, establish a program of education and outreach on biobased fuels and biobased products. Second, report to certain congressional committees on the economic potential for the United States of the widespread production and use of commercial and industrial biobased products through calendar year 2025. Title XIII – Energy policy tax incentives. Subtitle D: Alternative motor vehicles and fuels incentives. Subtitle D of Title XIII created a number of tax incentives for production of biofuels and other alternative fuel technologies. Two  sections of Subtitle D address investing in alternative fuel technologies and installing small-scale infrastructure for alternative technologies. First, section 1341 allows a tax credit for investment in alternative motor vehicles technology, including qualified fuel cell, advanced lean burn technology, hybrid, and alternative fuel motor vehicles. Bases the amount of such credit on criteria relating to vehicle weight and fuel efficiency. Terminates such credit after 2014 for qualified fuel cell motor vehicles and after 2010 for advanced lean burn, hybrid, and alternative fuel motor vehicles. Second, section 1342 allows a tax credit for 30% of the cost of installing a  commercial or residential refueling property for dispensing certain alternative fuels consisting of at least 85% by volume of ethanol, natural gas and petroleum gases, hydrogen, or biodiesel. Limits the dollar amount of such credit to $30,000 for commercial property and $1,000 for residential property. Terminates such credit after 2009 (after 2014 for property relating to hydrogen). Four sections of Subtitle D address production of biofuels. First, section 1344 extended the biodiesel tax credit. Producers of biodiesel can claim a tax credit of $1.00 per gallon. As of this bill, the $1.00 credit applied to new agricultural -based biodiesel. A credit of 50 cents per gallon was applied to used feedstocks, such as fryer grease. Expired December 31, 2009. Second, section 1345 establishes the Small Agri-Biodiesel Producer Credit. This tax credit, valued at 10 cents per gallon of biodiesel produced directly from agricultural crops or livestock fats. Credit can be claimed on the first and applies to producers with a production capacity below per year. This credit, as with other biofuel tax credits, is administered by the Internal Revenue Service (IRS). Expired on December 31, 2009. Third, section 1346 established the Renewable Diesel Tax Credit. $ 1.00 per gallon tax credit per gallon of biomass-based/renewable biodiesel Renewable diesel if produced through different processes. Expired December 31, 2009. Fourth, section 1347 Revises the definition of eligible small ethanol producer for purposes of the tax credit for alcohol used as fuel to increase the limit on a producer's alcohol production capacity from 30,000 to . Title XV – Ethanol and motor fuels. Subtitle A: General provisions. Subtitle A of Title XV addresses ethanol and fuels for motor vehicles. This section created new programs and duties for federal agencies. The new program created by this Act in Section  1501 of this subtitle was the Renewable Fuel Standard. The Renewable Fuel Standard (RFS) requires the blending of renewable fuels such as ethanol and biodiesel in transportation fuels. It was later expanded upon by the Energy Independence and Security Act of 2007 (). For government agencies, Subtitle A requires the Federal Trade Commission (FTC) to report annually to Congress and the Administrator on a market concentration analysis to determine whether there is sufficient competition among ethanol production industry participants to avoid price-setting and other anticompetitive behavior. In addition, Sec. 1506 directs the Administrator to study and report to Congress on  the effects of ethanol content in gasoline on permeation, the process by which fuel molecules migrate through the elastomeric materials (rubber and plastic parts) that make up the fuel and fuel vapor systems of a motor vehicle. Subtitle A also addresses the Department of Energy. In Section 1508, this act amends the Department of Energy Organization Act to instruct the Administrator of the Energy Information Administration to survey and publish monthly the renewable fuels demand in the motor vehicle fuels market. Section 1510 of this Act directs the Secretary to establish a program to provide guarantees of loans by private  institutions for the construction of facilities for the processing and conversion of municipal solid waste and cellulosic biomass into ethanol fuel and other commercial byproducts. Subtitle A also addresses existing pieces of legislation. Section 1511 of this Act amends the Clean Air Act () in two ways. First, it authorizes funds for certain loan guarantees to implement commercial demonstration projects for cellulosic ethanol and sucrose-derived ethanol. Second, it directs the Secretary of Energy to issue loan guarantees for up to four projects to commercially demonstrate the feasibility and viability of producing cellulosic biomass ethanol or sucrose-derived ethanol (including use  of cereal straw and municipal solid waste as a feedstock). The Clean Air Act () is further amended but Section 1513. This amends the Clean Air Act () to cite circumstances under which it shall not be a violation of the Act for a gasoline retailer to blend, at a retail location, batches of ethanol-blended and non-ethanol-blended reformulated gasoline. Section 1515 amends the Energy Policy Act of 1992 () to redefine biodiesel to include biodiesel derived from: (1) animal wastes, including poultry fats and poultry wastes, and other waste materials; or (2) municipal solid waste and sludges and oils derived  from wastewater and the treatment of wastewater. Subtitle A also provides funding opportunities for areas related to biofuels. It provides for the generation of credits: Also provided are funding opportunities for research centers and universities. It authorizes appropriations for FY2005-FY2007 for a resource center to develop bioconversion technology using low-cost biomass for the production of ethanol at the Center for Biomass-Based Energy at the Mississippi State University and the Oklahoma State University. Subtitle A provides instructions for two government agencies to fund research. The first agency addressed is the Environmental Protection Agency, directing the Administrator of the  EPA to provide grants for research, development, and implementation of renewable fuel production technologies in specified states with low rates of ethanol production, including low rates of production of cellulosic biomass ethanol. In addition, Section 1514 directs the EPA Administrator to: The second agency addressed is Department of Energy with ways to provide funding. Section 1512 authorizes the Secretary of Energy to provide grants to merchant producers of cellulosic biomass ethanol, waste-derived ethanol, and approved renewable fuels in the United States to assist them in building eligible production facilities for the production of ethanol or approved renewable fuels. Authorizes  appropriations for FY2006-FY2008. Also, Section 1516 authorizes funds for, and authorizes the Secretary to issue, loan guarantees to projects to demonstrate commercially the feasibility and viability of producing ethanol using sugarcane, sugarcane bagasse, and other sugarcane byproducts as a feedstock. Energy Independence and Security Act of 2007 (EISA 2007). The Energy Independence and Security Act of 2007 (, H.R. 6) is an omnibus energy policy act. Of the sixteen titles contained within EISA four of them can be related to alternative fuels. Title I – Energy security through improved fuel economy. Part of promotion of alternative fuels is ensuring consumers understand  the applicability of various fuels. This is done supported by EISA Title I which requires that the Secretary of Transportation to promulgate rules to require fuel compartments of alternative fueled vehicles to be labeled to indicate the types of fuels suitable for use in these vehicles, a final rule is to be issued by June 2011. The Corporate Average Fuel Economy (CAFE) allows automobile producers to receive credits towards CAFE requirements from production of alternative fueled vehicles. EISA Title I amends this program by extending issuance of credits for alternative fueled vehicles through 2019. Additionally, it Allows vehicles operating on  a blend of 20% biodiesel and 80% petroleum to be considered for CAFE credits; these vehicles were previously excluded. Title II – Energy security through increased production of biofuels. Of particular importance in Title II is the promotion of alternative fuel production much of which is supported by improved funding mechanisms. As such, the Secretary of Energy is to establish a grant program for advanced biofuels which have at least 80% less GHG emissions than current fuels. In addition, Title II authorizes funds to encourage states with low ethanol and cellulosic ethanol production to increase production. and requires the Secretary of  Agriculture is to establish a research and development program to promote small-scale production and local on-farm use of biofuels. To monitor these policies effectiveness the Secretary of Energy is required to report to Congress on the challenges to expanding biodiesel and biogas use. Promotion of alternative fuels is also demonstrated through the Renewable Fuel Standard (RFS), which was set in EPAct 2005, in increased by EISA Title II to a total of in 2008 and in 2022. Title II also allows amends the RFS by allowing for inclusion of all transportation fuels, except for those used in oceangoing  vessels, to be used to meet these new requirements. Beginning in 2009, an increasing amount of these fuels must be sourced from something other than corn starch with 50% fewer greenhouse gas (GHG) emissions. This requirement is increased to of advanced biofuel by the year 2022. To evaluate the influence of the RFS the Secretary of Energy, in cooperation with the Secretary of Agriculture and the Environmental Protection Agency's (EPAs) Administrator, is required to agree with the National Academy of Sciences (NSA) to study the impacts of the RFS on industries related to alternative fuels production and make recommendations  to limit adverse economic impacts of the RFS. To evaluate the environmental and resource impacts of the RFS Title II also requires that the administrator of the EPA, the Secretary of Agriculture, and the Secretary of Energy study the effects that the RFS may have on environmental and resource conservation issues and invasive or noxious species. EISA Title II introduces a number of requirements intended to promote technological advancement. The Secretary of Energy and the EPA Administrator are required to study the effects of biodiesel on engine performance and durability. Additionally, the Secretary of Energy is required to determine if  optimization of FFVs would increase fuel efficiency and the potential for running natural gas fueled vehicles with biogas. Also, the EPA Administrator is required to investigate the feasibility of issuing RFS credits for electric vehicles powered by electricity from renewable sources. In addition to requiring these studies to be performed the Secretary of Energy is to establish a competitive grant-awarding program for research on renewable energy technologies at institutes of higher education and report to Congress on progress toward using algae as a biofuel feedstock. Lastly, Section 932 of is to include research on biorefinery efficiency and conversion to  cellulosic material use at existing corn-based ethanol plants while Section 977 of to include at least seven bioenergy focused research centers. Evaluation and development of fuel production and distribution infrastructure is also considered in Title II. More specifically, the Secretary of Energy is to conduct research and development on the impact of biofuels on existing fuel transportation infrastructure. Also, the Secretary is to report to Congress on the market penetration of FFVs and the feasibility of requiring installation of E85 infrastructure by retailers and provide grants to expand infrastructure for ethanol/gasoline blends. Title II amends the Petroleum Marketing  Practices Act (15 USC 2081) to make it illegal for a franchiser to prohibit installation of E85 or B20 tanks and pumps. > To evaluate transportation infrastructure the Secretary of Energy in cooperation with the Transportation is to report on the adequacy of transportation of domestically produced renewable fuel and, in cooperation with the Secretary of Transportation, report on the feasibility of construction of a dedicated ethanol pipeline. With the promotion of alternative fuels, concerns arise regarding their impact on the environment. To address these concerns Title II makes a number of specific changes to existing policies. Changes include the  extension of EPAs authority under the Clean Air Act (CAA) to control engines, vehicles, fuels, and fuel additives to include effects on water pollution. Additionally, the EPA administrator is to study adverse effects on air quality resulting from the expansion of the RFS and to promulgate regulations to mitigate said effects. Another area of particular interest is greenhouse gas emission reductions and energy consumption during production and use of alternative fuels. As such, EISA Title II requires the Department of Energy (DOE) to expand biological research and development program to include environmental effects, GHG reduction potential, and sustainable agriculture potential . > Furthermore, The Secretary of Energy is to develop tools for evaluating life cycle energy consumption and GHG emissions from biofuels. In an effort to promote adoption of alternative fuels Title II includes requirements pertaining to consumer information including the establishment of an information center on biofuels and biorefineries by the Secretary of Energy. Also, the Federal Trade Commission (FTC) must promulgate rules requiring retailer to label diesel pumps with percentage of biomass-based diesel for sale. Title V – Energy savings in government and public institutions. EISA Title V prohibits federal agencies from procuring transportation fuels if their lifecycle emissions  exceed those of petroleum-based fuels. Title VIII – Improved management of energy policy. In Title VIII Congress expresses its wish that renewable resources from agriculture and forestry provide at least 25% of all U.S. energy needs. The Food, Conservation, and Energy Act of 2008 (2008 U.S. Farm Bill). The Food, Conservation, and Energy Act of 2008 (), also called the U.S. Farm Bill, is a five-year agricultural policy bill that was passed into law by the United States Congress on June 18, 2008. The bill was a continuation of the 2002 Farm Bill. It addresses numerous areas, such as energy , and provides increased support for the production of cellulosic ethanol. Title VII – Research and related matters. Title VII provides for increased funding for advanced biofuels research through the Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension Initiative (Section 7207). Additionally, the Sun Grant Program (Section 7526) found in Title VII provides support for and coordinate advanced biofuels research, extension, and development between government agencies, universities, and research institutes. Title IX – Energy. Title IX provides for two programs to be implemented including the Biomass Crop Assistance Program (BCAP, Section 9001) and the Biorefinery Assistance Program (Section 9001). The BCAP supports  the production of dedicated crop and forest cellulosic feedstocks and provides incentives for harvest and post-production storage and transport. The Biorefinery Assistance Program (Section 9001) provides grants and loans for the development, construction, and retrofitting of commercial-scale refineries to produce biofuels. Also included are requirements for funding and evaluation of these programs. More specifically $1.1 billion in mandatory funding is to be allocated for FY2008 through FY2012. Provisions are in place requiring a series of reports assessing how ethanol production may be impacting the farm economy, environment, and consumer food prices (Section 15322). Studies include: Title XV  – Trade and tax provisions. Title XV includes a number of trade and tax provisions including a tax credit of $1.01 per gallon for fuel blenders using certain cellulosic feedstocks. Also included is an amendment to the ethanol blender tax credit for general ethanol, reducing the tax credit from $0.51 to $0.45 per gallon (Section 15331). Finally, Title XV extends ethanol import tariff of $0.54 per gallons from its original expiration date of the end of 2008 to the end of 2010 (Section 15333). Public Law 110-353. Public Law 110-343 is an Act of Congress  signed into law by U.S. President George W. Bush on October 3, 2008. The act was designed to mitigate the growing financial crisis of 2007–2010. Its formal title is "An Act To provide authority for the Federal Government to purchase and insure certain types of troubled assets for the purposes of providing stability to and preventing disruption in the economy and financial system and protecting taxpayers, to amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes." The Act created  a $700 billion Troubled Asset Relief Program (TARP). Public Law 110-343 contained three acts, which were classified as divisions of the larger act. These included The Emergency Economic Stabilization Act of 2008 (Division A), the Energy Improvement and Extension Act of 2008 (Division B), and the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (Division C). American Recovery and Reinvestment Act of 2009 (The Recovery Act). The American Recovery and Reinvestment Act of 2009, (), known as the Stimulus or The Recovery Act, is an economic stimulus package enacted by the 111th United States Congress in February  2009. The stimulus was intended to create jobs and promote investment and consumer spending during the recession. Division A: Appropriations provisions. Title IV – Energy and water. Makes supplemental appropriations for FY2009 to the Department of Energy (DOE) for: Section 406 amends the Energy Policy Act of 2005 () to set forth a temporary program for rapid deployment of renewable energy and electric power transmission projects. Restricts federal guarantees to: (1) specified renewable energy systems; (2) electric power transmission systems; and (3) leading edge biofuel projects that will use technologies performing at the pilot or demonstration scale that are likely to become  commercial and will produce transportation fuels that substantially reduce life-cycle greenhouse gas emissions compared to other transportation fuels. Division B: Tax, unemployment, health, state fiscal relief, and other provisions. Title I – Tax provisions. Subtitle B: Energy incentives. Part I: Renewable energy incentives. Section 1101 extends for three years the tax credit for producing electricity from wind, biomass, geothermal or solar, solid waste, and qualified hydropower facilities. Extends such credit for two years for marine and hydrokinetic renewable energy resources. Part III: Energy conservation incentives. Section 1123 increases in 2009 and 2010 the tax credit for residential and commercial alternative  fuel vehicle refueling property expenditures. Proposals in the 112th Congress on the United States. Bills in the Senate. S.152 – Dual Fuel Vehicle Act of 2011. The Dual Fuel Vehicle Act of 2011 was introduced to Congress on January 25, 2011. This act requires automobile manufacturers to ensure that at least 50% of automobiles and light duty trucks manufactured for sale in the United States are dual fueled (capable of operating on alternative fuel and on gasoline or diesel fuel or a mixture of biodiesel and diesel fuel). This requirement is increased to 90% duel fueled vehicles for later model years . Automobiles and light duty trucks that operate only on electricity are excluded from these requirements. S.187 – Biofuels Market Expansion Act of 2011. Biofuels Market Expansion Act of 2011 Federal programs. Renewable fuel Standard. One of the many policy tools used to promote biofuel fuels is a minimum renewable fuel usage requirement. In the United States, this usage requirement is known as the Renewable Fuel Standard (RFS), whereby a minimum volume of biofuels is to be used in the national transportation fuel supply each year. Congress established the RFS in Title XV, Subtitle A, Section 1501 of the Energy Policy Act  of 2005 (). This initial RFS (referred to as RFS1) mandated that a minimum of be used in 2006, and that this minimum usage volume rise to by 2012. Two years later, Congress passed the Energy Independence and Security Act of 2007 () The provisions in the act amended the provisions in EPAct 2005 and expanded the biofuels blending mandate. The expanded RFS (referred to as RFS2)required the annual use of of biofuels in 2008 and expanded the mandate to 36 billion gallons annually in 2022. The Act included the provision that of the used, no more than could be corn-based  ethanol. In addition, of the , no less than 16 billion must be from cellulosic biofuels. The act also contained provisions setting usage requirements for biodiesel. Congress delegated the powers of establishing and implementing regulations relating to the RFS to the Environmental Protection Agency (EPA). The EPA is responsible for ensuring that the nation's transportation fuel supply contains the mandated biofuel volumes. EPA's initial regulations for administering RFS1 (issued in April 2007) established detailed compliance standards for fuel suppliers, a tracking system based on renewable identification numbers (RINs) with credit verification and trading, special treatment of small refineries, and  general waiver provisions. EPA rules for administering RFS2 (issued in February 2010) built upon the earlier RFS1 regulations, but with four major distinctions: With the expansion of the RFS under EISA 2007 came a system for categorizing biofuels. Each category has a specific volume mandate and lifecycle GHG emission reduction threshold. These categories are also subject to strict biomass feedstock criteria. EISA changed the definition of renewable fuel to require that it be made from feedstocks that qualify as "renewable biomass." This includes not just the types of feedstocks that can be used, but also the land that these feedstocks  are grown on. EISA excludes new farm land cultivated after December 19, 2007, as well as tree crops, tree residues, biomass materials obtained from federal lands, and range land. Existing agricultural land includes three land categories: cropland, pastureland, and Conservation Reserve Program (CRP) land. The EPA determined that fuels produced from five categories of feedstocks qualify as renewable biomass: As part of its final rule determination, the EPA included an analysis of the market and environmental impact of the increased use of renewable fuels under the RFS2 standards. The results include: The RFS is subject to arguments both for and  against the policy. Supporters of the RFS claim it serves several public policy interests. The RFS reduces the risk of investing in renewable biofuels by guaranteeing demand for a projected period. It enhances U.S. energy security by promoting production of a liquid fuel from renewable, domestic sources. This, in turn, results in a decreased reliance on imported fossil fuels. The RFS acts as a boost to the US agricultural sector by providing an additional source of demand for U.S. agricultural products, and increases rural incomes and rural employment opportunities. Supporters argue that renewable biofuels go unrecognized for the full extent  of their environmental benefits. Unlike gasoline and gasoline additives, biofuels are non-toxic and biodegradable, and emit substantially lower volumes of direct greenhouse gases than fossil fuels when produced, harvested, and processed under the right circumstances. The RFS has received a fair amount of criticism, particularly of the EISA expansion of the original RFS. Opponents argue that by picking the biofuels as a sort of "winner" alternative fuel, policymakers may exclude or slowed down the development of other, potentially preferable alternative energy sources. Critics contend that biofuels are given an advantage through the billions of dollars of annual subsidies. This  distorts the market and investment incentives, redirecting venture capital and other investment dollars away from competing alternative energy sources. Instead, these critics have argued for a more "technology-neutral" policy. The argument also states that continued large federal incentives for ethanol production are no longer necessary since the sector is no longer in its "economic infancy" and would have been profitable during much of 2006 and 2007 without federal subsidies. The expanded mandate could have substantial unintended consequences in other areas of policy importance, including energy/petroleum security, pollutant and greenhouse gas emissions, agricultural commodity and food markets, land use  patterns, and soil and water quality and conservation. Though biofuels are a liquid fuel that can be incorporated into the current storage, distribution, and pumping infrastructure, the ability to do so has its limits. Biofuels have a number of properties that will make it difficult to fully and effectively incorporate them into the gasoline infrastructure and vehicle fleet. Biofuels can differ from gasoline in a number of ways, depending on the particular fuel: lower energy content, different physical and combustion characteristics, and corrosive properties. These differences would require modifications to current infrastructure and vehicle design. Opponents also argue that taxpayers  are being asked to finance ever-increasing biofuels subsidies that have the potential to affect future federal budgetary choices. Biomass Crop Assistance Program (BCAP). In the Renewable Fuel Standard (RFS), the federal government set up a program to guarantee a demand for biofuels and thus promote the biofuels industry. This demand can only be met if there is a steady, readily available supply of biomass feedstocks for producing biofuels. In the Food, Conservation, and Energy Act of 2008 (), the federal government created a program to help guarantee this supply, called the Biomass Crop Assistance Program (BCAP). As with the RFS , investors in the market are reluctant to place money in a currently unproven technology, or are reluctant to dedicate other resources to some endeavor, without a guarantee of a market to sell the eventual products. Such technologies and resources include the ability to convert cellulosic biomass to biofuels and cropland for feedstocks. The Biomass Crop Assistance Program (BCAP) was created for two purposes: One of the difficulties associated with bioenergy is the need for a steady supply of biomass feedstocks. The BCAP was created with the intention of helping to relieve this problem. In 2009, the U.S. Department of Agriculture  began to implement the program. In June 2009, the USDA's Farm Service Agency (FSA) began the Collection, Harvest, Storage, and Transportation (CHST) payment portion of BCAP with a Notice of Funds Availability in the Federal Register. On February 8, 2010, the USDA began the rulemaking process for implementing of the rest of the BCAP program. On October 27, 2010, the USDA issued the BCAP final rule which will implement both components of the program. Payment for these components are split into two forms: Annual and Establishment Payments: Created to assist producers with establishing new dedicated biomass crops for bioenergy  production and to cover any lost income and additional risk from shifting away from traditional crop production. This includes such things as clearing, planting, and seeding new, purely feedstock crops. Annual payments would be made to eligible producers of biomass crops within a specific project area. Establishment payments would cover the cost associated with establishing these crops within a project area. Matching Payments: Created to provide incentives for collecting underutilized biomass for bioenergy production. This would remove existing biomass where it might not currently be profitable to do so, such as from crop residue or forest undergrowth. Through a matching  payment, USDA would pay dollar-for-dollar, up to $45 per ton, of the price to collect, harvest, store, and transport eligible material to biomass conversion facilities. The payments have different eligibility and sign-up requirements, payment rates, and contract length. State laws. There are a number of states that have implemented laws and programs to influence the economics of alternative fuel production and market penetration. As of 2006, Demand for agriculture-based renewable energy is being promoted in part by state Renewable Portfolio Standards (RPS) which require utilities to produce a percentage of their energy from renewable sources . As of January 2006, 34 states had implemented RPSs requiring, at a minimum, that state vehicles utilize certain volumes or percentages of renewable fuels. Some states have taken the RPS a step further and applied it to all motor vehicles within a state. In addition to the large legislative documents dealing with biofuels there are also many rules and regulations created by federal agencies dealing specifically with biofuel development, creation, infrastructure, economy, efficiency, supply, and types of biofuel. Tax credits. Several states have tax credits specifically geared towards selling and buying more ethanol and biodiesel. These can be applied to  producers trying to make more biofuels and give them bonuses to sell more fuel. They can also be given to buyers to reduce prices at the pump. Since there are only a couple significant federally mandated tax credits for biofuels many states have their own set of incentives. Table 1: The different types of tax credits from different states, as noted from the Department of Energy's State Incentives for Biodiesel database. Grants. Many states have money set aside to specifically encourage the research of biofuels with the goals of increasing fuel efficiency and cost effectiveness. This money is given  out in the form of grants and is usually awarded to universities, private companies, and government facilities conducting research on biofuels. These grants differ greatly by state. Table 2: Grants and grant programs awarded to groups in each state from the US DOE database on Biodiesel Incentives and Laws State regulations. In addition to grants and tax incentives several states have other laws to encourage the use and production of biofuels. Many of these other laws require some type of conversion to alternative fuels for state vehicle fleets, or require some percentage of fuel within a state to come from  a renewable source. Table 3: The various laws and regulations dealing with biofuel standards, state fleets, and other alternative fuels, as pulled from the US DOE's database for state Laws and Incentives for Biodiesel. An "etc." denotes more than 4 specific laws and regulations Rules and regulations. Rule making process. The rule making process differs from the legislative Acts of Congress. It requires much more public involvement and generally requires many rewrites of certain policies. Motives for change. Federal regulations from different agencies are the results of Congress mandating the creation of standards for some type of industry. In  this case Congress will have mandated programs in agencies such as the DOE, DOT, USDA, and FTC to regulate and encourage the production, distribution, and implementation of biofuels throughout the US. Full procedure. The Rule making process usually takes a couple years, and requires public involvement, but is usually done outside of Congress. After the legislature mandates an agency to make a new regulation that agency may make an announcement via the Federal Register that is considering creating a new regulation, call an Advanced Notice of Proposed Rule-making (ANOPR). In this general statement the agency is simply making a  declaration of changes it might make and is letting the public know dates and times of which discussion on these changes may be. Once that agency has decided to make the rule they will send out a new announcement called a Notice of Proposed Rule-making (NOPR) saying that it intends to make a new rule, and the details of what it may be. These NOPRs then ask for public feedback, both in the form of letters, emails, and open forum discussion set up by that agency. The exact date and times of meetings and deadlines will also be detailed . After that deadline the agency will use the public feedback and revise the proposed standards to meet those. Another NOPR will then be sent it out, again, calling for feedback, and more revisions will take place. After this process takes place a few times the agency will send out a final copy of the new regulations and they will take effect as law for that industry. Agency policy. Every agency mandated by the federal government to work with some aspect of biofuel creation and implementation has several different responsibilities in regulating the biofuel industry. These include policies to encourage their  development, regulate the mass production, reduce their costs, and promote biofuel in government vehicles. Department of Energy (DOE). The DOE has created a number of programs intended to disseminate information regarding alternative fuels. The DOE is also responsible for administration of various financial incentive programs including the following. Environmental Protection Agency (EPA). The EPA is responsible for administration of the Renewable Fuel Standard (RFS) established by EPAct 2005 (P.L. 109-58) and amended by EISA 2007 (P.L. 110-140). These responsibilities include promulgating rules detailing compliance standards for fuel suppliers and for establishing a system which allows renewable fuel credits  to be traded between fuel suppliers. Department of Transportation (DOT). The DOT is responsible for administration of the Flexible Fuel Vehicle (FFV) Production Incentive. Internal Revenue Service (IRS). The IRS is responsible for administration of a variety of tax credits and related incentives. United States Department of Agriculture (USDA). The USDA is responsible for programs related to promotion of alternative fuels.