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,British Petroleum's 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: First, to ensure that a Federal certification program is established for technician training programs for converting conventionally fueled motor vehicles into dedicated or dual-fueled vehicles. Second, to conduct a study to determine whether the use of alternative fuels in non-road vehicles and engines would contribute substantially to reduced reliance on imported energy sources. Third, to report to the Congress on how Federal purchasing policies and governmental traffic control policies affect the use of alternative-fueled vehicles. Fourth, to establish a low-interest loan program to increase the use by small businesses of alternative-fueled vehicles.
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: First, establish a program to promote the development and use in light duty motor vehicles of domestic replacement fuels in lieu of petroleum motor fuels. Second, estimate annually the use and supply of alternative and replacement fuels, and their effect upon greenhouse gas emissions. Third, require suppliers of replacement and alternative fuels to submit specified supply and greenhouse gas-related information to the Secretary. Fourth, obtain voluntary commitments from specified persons to make available to the public replacement fuels and alternative-fueled vehicles (and attendant services).
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