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The US Biofuel Policy

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The US Biofuel Policy

Category: Essay

Subcategory: Economics

Level: University

Pages: 2

Words: 1100

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The U.S. Biofuel Policy
One of the policy issues related to emerging energy economics is the US Biofuel policy. There have been major national initiatives to general renewable fuels from organic matter which have taken shape in the country to minimize the dependency of foreign oil and also to achieve reduction of greenhouse gases. The Department of Energy (DOE) is one of the key stakeholders when it comes to formulating energy policies hence this report is addressed to the Secretary of DOE. The growing concerns of environmental quality and energy consumption have led to the evolution of policies relating to Clean Air Act to mandate the large-scale use of alternative fuels aimed at minimizing the reliance on imported oil. It also aims at providing a larger market for various agricultural products like soybeans and corn and reducing the emission of GHG from the US transport sector. The policy has emphasized on ethanol and biodiesel. The US has tried to develop the viable biofuel industry in two different ways. They include imposing quantity-based restraints on the productions of biofuels and offering the producers of biofuels financial packages of tax-related incentives.
The Congress passed various energy legislations to put in place Renewable Fuels Standards. The standards require production and blending of various classes of biofuels, ultimately requiring thirty-six billion gallons of biofuels per year to be blended with petroleum fue…

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