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Table of Contents
1. "Biofuels: Ethanol and Biodiesel Explained," U.S. Energy Information Administration, June, 2009 . . . . . . . . . . . . . . . 1
2. "Ethanol Basics," Alternative Fuels and Advanced Vehicles Data Center, U.S. Dept. of Energy. . . . . . 3
3. "Biofuels: Potential Effects and Challenges of Required Increases in Production and Use," U.S. GAO, August 2009 . . . . . . 11
4. "Ethanol and Biofuels: Agriculture, Infrastructure, and Market Constraints Related to Expanded Production," Congressional Research Service (CRS) Report for Congress RL33928, March 16, 2007 . . . . . . 13- Introduction5. "Agriculture-Based Renewable Energy Production," CRS Report for Congress RL32712, October 16, 2007 . . . . . . 29
- Issues with Corn-Based Ethanol Supply
- Overview of Long-Run Corn Ethanol Supply Issues
- Agricultural Issues
- Feed Markets
- Exports
- Food vs. Fuel
- Energy Supply Issues
- Energy Balance
- Natural Gas Demand
- Energy Security
- Infrastructure and Distribution Issues
- Distribution Issues
- Higher-Level Ethanol Blends
- Sugar Ethanol
- Biodiesel
- Cellulosic Biofuels
- Conclusion
- Table 1. U.S. Production of Biofuels from Various Feedstocks
- Introduction6. "Biofuels Incentives: A Summary of Federal Programs," CRS Report for Congress R40110, January 27, 2010 . . . . . . . 91
- Agriculture's Share of Energy Production
- Agriculture-Based Biofuels
- Ethanol
- Ethanol Pricing Issues
- Corn-Based Ethanol
- Ethanol from Cellulosic Biomass Crops
- Methane from an Anaerobic Digester
- Biodiesel
- Wind Energy Systems
- Public Laws That Support Agriculture-Based Energy Production and Use
- Tariff on Imported Ethanol
- Clean Air Act Amendments of 1990 (CAAA; P.L. 101-549)
- Energy Policy Act of 1992 (EPACT; P.L. 102-486)
- Biomass Research and Development Act of 2000 (Biomass Act; Title III, P.L. 106-224)
- Energy Provisions in the 2002 Farm Bill (P.L. 107-171)
- The Healthy Forest Restoration Act of 2003 (P.L. 108-148)
- The American Jobs Creation Act of 2004 (P.L. 108-357)
- Energy Policy Act of 2005 (EPACT; P.L. 109-58)
- Tax Relief and Health Care Act of 2006 (P.L. 109-432)
- Agriculture-Related Energy Bills in 110th Congress
- House-passed New Farm Bill -- H.R. 2419
- State Laws and Programs
- Administration Proposals
- State of the Union (SOU) 2006
- State of the Union (SOU) 2007
- USDA's New Farm Bill Proposal (January 2007)
- For More Information
- Renewable Energy
- Biofuels
- Wind Energy Systems
- Figure 1. U.S. Motor Vehicle Fuel Use, 2006
- Figure 2. Ethanol Versus Gasoline Prices, 2000-2007
- Figure 3. U.S. Ethanol Production: Actual and Projected, Versus the Renewable Fuels Standard (RFS)
- Figure 4. Corn Versus Ethanol Prices, 2000-2007
- Figure 5. U.S. Biodiesel Production, 1998-2007
- Figure 6. Soybean Oil Versus Diesel Fuel Price, 2000-2007
- Figure 7. U.S. Installed Wind Energy Capacity, 1981-2007
- Figure 8. Natural Gas Price, Wholesale, 1994-2007
- Figure 9. U.S. Areas with Highest Wind Potential
- Table 1. U.S. Energy Production and Consumption, 2006
- Table 2. Energy and Price Comparisons for Alternate Fuels, July 2007
- Table 3. Ethanol Production Capacity by State, October 1, 2007
- Table 4. Ethanol Dry Mill Cost of Production Estimates, 2002
- Table 5. U.S. Diesel Fuel Use, 2005
- Table 6. U.S. Potential Biodiesel Feedstock, 2005-2006
- Table 7. Installed Wind Energy Capacity by State, Ranked by Capacity as of December 31, 2006
- Introduction7. "Fuel Ethanol: Background and Public Policy Issues," CRS Report for Congress RL33290, April 24, 2008 . . . . . . 109
- Environmental Protection Agency (EPA)-Renewable Fuel Standard
- Internal Revenue Service (IRS)
- Volumetric Ethanol Excise Tax Credit
- Small Ethanol Producer Credit
- Biodiesel Tax Credit
- Small Agri-Biodiesel Producer Credit
- Renewable Diesel Tax Credit
- Credit for Production of Cellulosic Biofuel
- Special Depreciation Allowance for Cellulosic Biofuel Plant Property
- Alternative Fuel Station Credit
- Department of Agriculture (USDA)
- Biorefinery Assistance
- Repowering Assistance
- Bioenergy Program for Advanced Biofuels
- Feedstock Flexibility Program for Producers of Biofuels (Sugar)
- Biomass Crop Assistance Program (BCAP)
- Rural Energy for America Program (REAP)
- Biomass Research and Development
- Other USDA Programs
- Department of Energy (DOE)
- Biorefinery Project Grants
- Loan Guarantees for Ethanol and Commercial Byproducts from Cellulose, Municipal Solid Waste, and Sugar Cane
- DOE Loan Guarantee Program
- Cellulosic Ethanol Reserve Auction
- U.S. Customs and Border Protection--Import Duty for Fuel Ethanol
- Department of Transportation--Manufacturing Incentive for Flexible Fuel Vehicles
- Table A-1. Federal Biofuels Incentives by Agency- Introduction8. "Alcohol Fuels Tax Incentives," CRS Report for Congress RL32979, July 6, 2005 . . . . . . . 137
- Ethanol Basics
- Ethanol and the Agricultural Economy
- Ethanol Refining and Production
- Fuel Consumption
- E85 Consumption
- Development of Cellulosic Feedstocks
- Economic Effects
- Air Quality
- Before the Energy Policy Act of 2005
- Following the Energy Policy Act of 2005
- E85 and Air Quality
- Energy Consumption and Greenhouse Gas Emissions
- Energy Balance
- Greenhouse Gas Emissions
- Policy Concerns and Congressional Activity
- Renewable Fuel Standard (RFS)
- "Boutique" Fuels
- Alcohol Fuel Tax Incentives
- Ethanol Imports
- Fuel Economy Credits for Dual Fuel Vehicles
- The 2008 Farm Bill
- Conclusion
- Table 1. Corn Utilization, 2007-2008 Forecast
- Table 2. Top 10 Ethanol Producers by Capacity, March 2008
- Table 3. Estimated U.S. Consumption of Fuel Ethanol, Gasoline, and Diesel
- Table 4. Wholesale Price of Pure Ethanol Relative to Gasoline
- Table 5. Expanded Renewable Fuel Standard Requirements Under P.L. 110-140- Introduction9. "Intermediate-Level Blends of Ethanol in Gasoline, and the Ethanol 'Blend Wall'," CRS Report for Congress R40445, January 28, 2010 . . . . . . 153
- The Alcohol Fuel Mixtures Excise Tax Credit
- The Credit for Methanol
- How the New Tax Credit Works
- The Structure of Motor Fuels Excise Taxes
- Excise Tax Exemption
- Example
- Revenue and Highway Trust Fund Implications
- Revenue Effects of the New Alcohol Fuels Mixtures Tax Credit
- Revenue Losses Under the Proposed Renewable Fuels Standard
- Other Possible Tax Subsidies for Alcohol Fuels
- Tax Credits for Pure Alcohol Fuels
- Small Ethanol Producer Tax Credit
- Income Tax Deduction for Alcohol-Fueled Vehicles
- Section 29 Production Tax Credit
- Technical Appendix
- Table 1. Comparison of the Net, After-Tax Subsidy Value of the New Mixtures Tax Credit With the Old Excise Tax Exemption
- Table 2. Projections of Revenue Losses to the General Fund (and Increases to the HTF) from the New Alcohol Fuels Mixtures Excise Tax Credit ($millions)
- Table 3. Projected Ethanol Use and Corresponding Revenue Losses to the General Fund (and Increases to the HTF), Baseline vs. the Renewable Fuels Standard (RFS), FY2006-2012- Background10. "Selected Issues Related to an Expansion of the Renewable Fuel Standard (RFS)," CRS Report for Congress R40155, January 28, 2010 . . . . . . 167
- What Is the "Blend Wall"?
- Approval of New Fuels and Fuel Additives
- What Studies or Data Must Accompany a Section 211(f) Waiver Request?
- What Actions Are Federal Agencies Such as the Department of Energy and EPA Taking to Study the Compatibility of Higher Blends of Fuel in Non-flex Fuel Vehicles? What Are the Timelines of These Studies, and Will They Be Comprehensive Enough to Support a Section 211(f) Waiver Request?
- What Are the Potential Outcomes of a Waiver Request?
- What Entity Can Make a Request?
- Other Than a Successful Section 211 Waiver Request, Are There Other Means to Approve Higher Blends of Ethanol, Such as an Executive Order or Other Administrative Action?
- Growth Energy's Waiver Application
- Other Issues
- Figure 1. Renewable Fuel Standard Under the Energy Independence and Security Act- Introduction11. Renewable Fuel Standard Program (RFS2): Final Rule, U.S. EPA, February 3, 2010 . . . . . . 193
- Biofuels Defined
- The Renewable Fuel Standard (RFS)
- Energy Independence and Security Act of 2007 (EISA; P.L. 110-140)
- The Expanded RFS Defined
- Usage Volume Requirements
- Required Reduction in Greenhouse Gas Emissions
- Implementation of the RFS
- RFS as Public Policy
- Proponents' Viewpoint
- Critics' Viewpoints
- The Increasing Cost of Biofuels Policy
- Potential Issues with the Expanded RFS
- Overview of Long-Run Corn Ethanol Supply Issues
- Corn Prices
- Corn Yields
- Corn Area
- Corn-Soybean Rotation
- Overview of Non-Corn-Starch-Ethanol RFS Issues
- Potential Advantages of Cellulosic Biofuels
- Cellulosic Biofuels Production Uncertainties
- Unintended Policy Outcomes of the "Advanced Biofuels" Mandate
- Energy Supply Issues
- Energy Balance
- Natural Gas Demand
- Energy Security
- Energy Prices
- Greenhouse Gas Emissions
- Ethanol Infrastructure and Distribution Issues
- Distribution Issues
- Higher-Level Ethanol Blends
- Vehicle Infrastructure Issues
- Conclusion
- Figure 1. Renewable Fuels Standard (RFS2) vs U.S. Ethanol Production Since 1995
- Figure 2. Annual Minimum Liability for Biofuel Tax Credits Under the RFS2
- Figure 3. Ethanol Uses an Increasing Share of U.S. Corn Production, Particularly Since 2005, While Feed Use Has Fallen Sharply
- Figure 4. U.S. Annual Corn Planted Acres and Yield
- Figure 5. Monthly U.S. Corn Prices Have Trended Upward Since Late 2005
- Table 1. U.S. Production of Biofuels from Various Feedstocks
- Table 2. EISA 2007 Expansion of the Renewable Fuel Standard
- Table 3. Federal Tax Credits Available for Qualifying Biofuels- Key Actions12. E85 and Flex Fuel Vehicles, U.S. EPA, October 2009 . . . . . 201
- New Renewable Volume Standards
- EISA Expands Coverage to Include Diesel and Nonroad Fuels
- 2010 Standards
- Setting the 2010 Cellulosic Standard
- Treatment of Biomass-based Diesel in 2010
- Greenhouse Gas Reduction Thresholds
- Requirements for Feedstock Producers
- Overview of Impacts of Increasing Volume Requirements in the RFS2 Program
- Petroleum Consumption, Energy Security and Fuel Costs
- Greenhouse Gas Emissions
- Emissions and Air Quality
- Agriculture Sector and Related Impacts- E85 Fuel13. "Renewable Energy Programs in the 2008 Farm Bill," CRS Report for Congress RL34130, September 30, 2009 . . . . . . . 205
- Flex Fuel Vehicles
- Affordability
- E85 and Conventional Vehicles
- Benefits- Background14. "Renewable Energy: Background and Issues for the 110th Congress," CRS Report for Congress RL34162, December 10, 2008 . . . . . . . 223
- Major Energy Provisions in the 2008 Farm Bill
- Energy Policy Issues in the 2008 Farm Bill
- Cellulosic Biofuels
- Tax Credits and Tariffs
- Economic Impacts of Ethanol Production
- Funding for Energy Programs
- Table 1. 2008 Farm Bill (P.L. 110-246): Authorized Funding for Energy Provisions, FY2008-FY2012
- Table 2. 2008 Farm Bill Energy Funding (Presidential Request, Authorization, and Enactment), by Provision, FY2008 to FY2010
- Appendix. Comparison of the Enacted 2008 Farm Bill (P.L. 110-246) with Previous Law- History and Background15. "Background on Sugar Policy Issues," CRS Report for Congress RL33541, July 26, 2007 . . . . . . . 265
- Fuels Production
- Electricity Production
- Action in the 110th Congress
- Budget and Funding Issues and Action
- EPACT Implementation (P.L. 109-58)
- Loan Guarantee Program
- Biofuels and Other New Program Authorizations
- Energy Independence Act Implementation (P.L. 110-140)
- Accelerated Research and Development
- International Energy Programs
- Green Jobs
- FY2009 DOE Budget
- Energy Efficiency and Renewable Energy
- Electricity Delivery and Energy Reliability
- FY2009 Department of Agriculture (USDA) Request
- Congressional Action on FY2009 Appropriations (P.L. 110-329)
- House Passes H.R. 2638, Continuing Appropriations Resolution
- House Passes H.R. 7110, Supplemental Appropriations
- Senate Adopts H.R. 2638
- Tax Credit Issues and Action (P.L. 110-343)
- Debate over Proposed Incentives
- Renewable Energy Electricity Production Tax Credit (PTC)
- Background and History
- Current Status and Past Significance
- Revenue Effects
- Impact on Resource Development
- Combined Impact with State Renewable Portfolio Standards
- Credit Design Issues
- Debate Over PTC Extension
- Solar Investment Tax Credits
- Residential Credit
- Business Credit
- Other Business Tax Credits
- Clean Renewable Energy (Tax Credit) Bonds
- Revenue Offsets Debate
- Regulatory Issues and Action
- Renewable Portfolio Standard (RPS)
- State RPS Debate
- Federal Tax Credit (PTC) Supports State RPS Policies
- Federal RPS Debate
- Other Regulatory Issues
- Wind Energy
- Marine (Tidal, Wave, and Ocean) Energy and Hydrokinetic (River Current) Energy
- Renewable Fuels and Energy Security
- Types of Renewable "Biofuels"
- Corn Ethanol
- Corn Ethanol Impacts and Debate
- Cellulosic Ethanol
- Renewable Fuel Standard (RFS)
- New Goals Set By the Energy Independence Act
- Implementation Concerns
- Potential to Reduce Oil Imports
- Biofuels Funding and Tax Issues
- Biofuels Technology Funding Initiative
- Tax Incentives Provided in P.L. 110-343 (Division B)
- Climate Change
- CO2 Emissions Reduction Estimates
- Support for Renewables to Curb CO2
- Climate Security Act (S. 3036)
- Legislation
- Major Laws Enacted in the First Session
- FY2008 Appropriations (P.L. 110-161)
- Energy Independence and Security Act (P.L. 110-140)
- Major Laws Enacted in Second Session
- Farm Bill (P.L. 110-246) Provisions
- FY2009 Appropriations (P.L. 110-329)
- Emergency Economic Stabilization Act (P.L. 110-343)
- Other Laws and Bills
- Table 1. DOE Loan Guarantee Program Funding
- Table 2. Selected Wind Production Tax Credit (PTC) Extension Proposals
- Table 3. Clean Renewable Energy Bonds History
- Table 4. DOE Renewable Energy Budget for FY2006-FY2009
- Table 5. Production Tax Credit Value and Duration by Resource
- Table 6. Production Tax Credit Claims, History and Projections
- Table 7. Renewable Fuels Compared with Persian Gulf Imports- Recent Developments16. "Sugar Policy and the 2008 Farm Bill," CRS Report for Congress RL34103, January 30, 2009 . . . . . . . 295
- History of and Background on the Sugar Program
- Main Features of U.S. Sugar Policy
- Price Support Loans
- Loan Rates
- Effective Support Levels
- Marketing Allotments
- Allotments Required When Sugar Imports Are Below 'Trigger' Level
- Allotments Suspended When Imports Exceed Trigger Level
- Exception to Suspending Allotments
- FY2006 and FY2007 Allotment Announcements
- Import Quotas
- FY2006 Import Quota Decisions
- FY2007 Import Quota Decisions
- Sugar Imports, the Allotment Suspension Trigger Level, and DR-CAFTA
- Legislative Activity in the 109th Congress
- House Amendment to FY2007 Agriculture Appropriations
- Senate Oversight Hearing
- Administration's FY2007 Budget Proposal
- Sugar Trade Issues
- Sugar in Trade Agreement Negotiations
- Key Interest Group Views
- Sugar in DR-CAFTA
- Sugar Deal to Secure Votes
- FTA Negotiations with Australia
- Sugar in the Peru, Colombia, and Panama FTAs
- Sugar in WTO Negotiations
- Sweetener Disputes with Mexico
- 2006 Sweetener Agreement
- Reactions to Agreement
- Potential Impact
- 2007 Farm Bill Debate on the Sugar Program
- Sugar Program Options
- Factors That Will Affect the Debate
- Interest Group Positions
- USDA's Farm Bill Proposal
- Status of Sugar in 2007 Farm Bill Debate to Date
- Figure 1. Implementation of Sugar Marketing Allotments, FY2006
- Figure 2. U.S. Sugar Imports Compared to Allotment Suspension Trigger: Trade Agreement Commitments; FY2003-FY2006 Actual; and FY2007-FY2008 Estimates- Overview of Sugar Program17. "Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill: A Side-by-Side Comparison," CRS Report for Congress RL34239, January 26, 2009 . . . . . . . 313
- Issues in 2008 Farm Bill Debate
- Level of Sugar Price Support
- Implementation
- Controlling Sugar Supply to Protect Sugar Prices
- Import Quotas
- Marketing Allotments
- Sugar for Ethanol
- Sugar Program Costs
- Table 1. Annual U.S. Sugar Import Commitments When the 2002 Farm Bill Was Enacted
- Table 2. Comparison of National Sugar Allotment to USDA-Projected Sugar Production, FY2009
- Appendix. Comparison of 2008 Farm Bill Sugar Program Provisions with Previous Law and House and Senate Bills- Introduction18. "Ethanol and a Changing Agricultural Landscape," by Scott A. Malcolm, Marcel Aillery, and Marca Weinberg, ERS Report Summary, USDA Economic Research Service, November 2009 . . . . . . . 337
- Key Elements of EISA and the 2008 Farm Bill
- Table 1. Comparison of Current or Prior Law with Biofuels Provisions in EISA and the Enacted Farm Bill
19. "Cellulosic Biofuels: Analysis of Policy Issues for Congress," CRS Report for Congress RL34738, February 1, 2010 . . . . . . . 339- Introduction20. "Food Price Inflation: Causes and Impacts," CRS Report for Congress RS22859, April 10, 2008 . . . . . . . 365
- The Renewable Fuel Standard: A Mandatory Usage Mandate
- Challenges Facing the Industry
- Cellulosic Feedstock Supplies
- Crop Residues
- Prairie Grasses
- Forest Sources of Biomass
- Secondary and Tertiary Feedstocks
- Feedstock Issues
- Volumes Required
- Impacts on Food Supplies
- Establishment Costs and Contracting Arrangements
- Extracting Fuel from Cellulose: Conversion
- Production Processes
- Acid Hydrolysis
- Enzymatic Hydrolysis
- Thermochemical Gasification and Pyrolysis
- Distribution and Absorption Constraints
- Distribution Bottlenecks
- The Blend Wall
- Economic and Environmental Issues
- Economic Efficiency
- Energy Balance
- Environment
- Greenhouse Gas Emissions
- Private Investment
- Federal Cellulosic Biofuels Policies
- Direct Federal Spending on R&D
- Federal-Private Partnerships
- Renewable Energy Provisions in the 2008 Farm Bill (P.L. 110-246)
- Tax Credit for Cellulosic Biofuels (Section 15321)
- Ethanol Tariff Extension (Section 15333)
- Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension Initiative (Section 7207)
- Biorefinery Assistance (Section 9003)
- Repowering Assistance (Section 9004)
- Bioenergy Program for Advanced Biofuels (Section 9005)
- Biomass Research and Development Initiative (Section 9008)
- Biomass Crop Assistance Program (Section 9011)
- Forest Biomass for Energy (Section 9012)
- Energy Improvement and Extension Act of 2008 (P.L. 110-343)
- Expansion of the Allowance for Cellulosic Ethanol Property (Division B, Section 201)
- Legislative Proposals
- Legislative Changes in the RFS Volume
- Expanding Biomass Eligible under the RFS
- Time Frame for Cellulosic Biofuels Production
- Figure 1. Renewable Fuel Standard Under EISA as of November 2009
- Figure 2. Annual Biomass Resource Potential According to USDA
- Table 1. Potential Cellulosic Feedstock Sources
- Table 2. Basic Steps Required to Produce Ethanol- Summary21. "Livestock Feed Costs: Concerns and Options," CRS Report for Congress RS22908, September 17, 2008 . . . . . . . 371
- Introduction
- Key Factors Behind Higher Commodity Prices
- How Do Higher Commodity Prices Impact Consumers?
- Energy Costs
- Food Price Changes Vary by Food Type
- Impact on Low-Income Households
- Federal Spending for Domestic Food Assistance Programs
- Foreign Food Aid- Summary22. "Ethanol and Other Biofuels: Potential for U.S.-Brazil Energy Cooperation," CRS Report for Congress RL34191, September 27, 2007 . . . . . . . 377
- Economic Situation
- Reasons for Higher Feed Costs
- Outlook and Options- Introduction23. "Ethanol Imports and the Caribbean Basin Initiative," CRS Report for Congress RS21930, March 18, 2008 . . . . . . . 405
- Biofuels: A Definition
- Biofuels: A Potential Solution to Latin America's Oil Dependency?
- Brazil and the United States: Hemispheric Leaders in Ethanol Production
- Ethanol Production Process
- U.S. Ethanol Industry and Market
- Brazil's Ethanol Industry and Market
- The Role of Ethanol and Gasoline in the United States and Brazil
- U.S. Ethanol Imports
- U.S.-Brazilian Memorandum of Understanding on Biofuels
- Policy Considerations
- Import Tariffs and Duties
- Energy Bill and Farm Bill Considerations
- Energy Bill
- Farm Bill
- Food vs. Fuel Debate
- Environmental Concerns
- Greenhouse Gas Emissions
- Water Contamination
- Water Consumption
- Land Use/Soil Quality
- Labor Issues
- Biofuels and Geo-politics in Latin America
- Congressional Action
- Legislation
- Outlook
- Figure 1. Annual Ethanol Production in Brazil and the United States
- Figure 2. Fuel Consumption in the United States and Brazil (billion gallons)
- Figure 3. Vehicles Per 1,000 People in the United States and Brazil
- Figure 4. Ethanol as a Share of Fuel Demand in the United States and Brazil
- Figure 5. Annual Ethanol Imports to the United States- Summary24. EPA Lifecycle Analysis of Greenhouse Gas Emissions from Renewable Fuels, U.S. EPA, February 3, 2010 . . . . . . . 411
- Fuel Ethanol
- Ethanol Imports
- Ethanol and the CBI
- Growing U.S. Ethanol Market
- Duty Drawback
- Congressional Action
- Conclusion- Background25. Other Resources From TheCapitol.Net . . . . . . . . . . 415
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