Renewable Fuel Standard : Potential Economic and Environmental Effects of U.S. Biofuel Policy

In the United States, we have come to depend on plentiful and inexpensive energy to support our economy and lifestyles. In recent years, many questions have been raised regarding the sustainability of our current pattern of high consumption of nonrenewable energy and its environmental consequences. Further, because the United States imports about 55 percent of the nation's consumption of crude oil, there are additional concerns about the security of supply. Hence, efforts are being made to find alternatives to our current pathway, including greater energy efficiency and use of energy sources that could lower greenhouse gas (GHG) emissions such as nuclear and renewable sources, including solar, wind, geothermal, and biofuels. The United States has a long history with biofuels and the nation is on a course charted to achieve a substantial increase in biofuels. Renewable Fuel Standard evaluates the economic and environmental consequences of increasing biofuels production as a result of Renewable Fuels Standard, as amended by EISA (RFS2). The report describes biofuels produced in 2010 and those projected to be produced and consumed by 2022, reviews model projections and other estimates of the relative impact on the prices of land, and discusses the potential environmental harm and benefits of biofuels production and the barriers to achieving the RFS2 consumption mandate. Policy makers, investors, leaders in the transportation sector, and others with concerns for the environment, economy, and energy security can rely on the recommendations provided in this report. Table of ContentsFront MatterSummary1 Introduction2 Biofuel Supply Chain3 Projected Supply of Cellulosic Biomass4 The Economics and Economic Effects of Biofuel Production5 Environmental Effects and Tradeoffs of Biofuels6 Barriers to Achieving RFS2APPENDIXESAppendix A: Statement of TaskAppendix B: Biographical SketchesAppendix C: Presentations to the CommitteeAppendix D: GlossaryAppendix E: Select Acronyms and AbbreviationsAppendix F: Conversion FactorsAppendix G: Petroleum-Based Fuel EconomicsAppendix H: Ethanol Biorefineries in Operation or Under Construction in the United States in 2010Appendix I: Biodiesel Refineries in the United States in 2010Appendix J: Economic Models Used to Assess the Effects of Biofuel Production in the United StatesAppendix K: BioBreak Model: Assumptions for Willingness to AcceptAppendix L: BioBreak Model AssumptionsAppendix M: Summary of Literature EstimatesAppendix N: Blend WallAppendix O: Safety and Quality of Biofuel Coproducts as Animal Feed