Increasing production of advanced biofuels to meet or exceed the goals of the United States’ Renewable Fuel Standard (RFS) can significantly reduce its reliance on petroleum, says the Biotechnology Industry Organization (BIO).  These comments were made by Brent Erickson, executive vice president of BIO’s Industrial and Environmental Section in reference to yesterday’s (December 25) release by the U.S. Energy Information Administration’s (EIA) 2009 Energy Outlook.

RFS is a provision of the US Energy Policy Act of 2005 and as amended by the Energy Independence and Security Act of 2007  that mandates that 36 billion gallons of renewable fuels be produced and used domestically by 2022.   This legislation seizes on the potential that renewable fuels offer to reduce foreign oil dependence and greenhouse gas emissions as well as provide meaningful economic opportunity across this country, putting America firmly on a path toward greater energy stability and sustainability.

According to a January 2008 study, the economic impact of a 36 billion gallon RFS will:

  • Add more than $1.7 trillion to the Gross Domestic Product between 2008 and 2022;
  • Generate an additional $436 billion of household income for all Americans during the same time period;
  • Support the creation of as many as 1.1 million new jobs in all sectors of the economy; and,
  • Generate $209 billion in new Federal tax receipts. 

U.S.-produced biofuel combined with fuel efficiency will allow the nation to meet growing transportation energy needs without increasing imports of oil, according the the EIA.  The current projection demonstrates that if the United States were to meet or exceed the targets set in the Renewable Fuel Standard, the US could begin to decrease its reliance on all petroleum, create jobs and boost rural economies, and significantly cut greenhouse gas emissions.

The EIA also reports that there are more than 30 existing and planned cellulosic biorefineries set to begin production of advanced biofuels in the next few years. Many other projects and promising technologies are on the drawing board. These pioneer cellulosic biofuel facilities will prove that the technology works and that the industry can meet the goals established in the Renewable Fuel Standard. With oil prices set to rise again, per the projections, the need for domestically produced advanced biofuels should remain a priority for U.S. policymakers and consumers.

(Photo: Technical University of Denmark, Danish Center for Biofuels)