WO R L DWAT C H R E P O RT 180 Red, White, and Green: Transforming U.S. Biofuels ja n e e a r l e y a n d a l i c e mc k e ow n W O R L D WAT C H R E P O R T 18 0 Red, White, and Green: Transforming U.S. Biofuels jane earley and alice mckeow n l i s a m a s t n y, e d i t o r w o r l d wat c h i n s t i t u t e , wa s h i n g t o n , d c © Worldwatch Institute, 2009 ISBN 978-1-878071-90-3 The views expressed are those of the authors and do not necessarily represent those of the Worldwatch Institute; of its directors, officers, or staff; or of its funding organizations. On the cover: Advances in technology can help improve current biofuels and develop new alternatives. This near-infrared spectrometer, promoted by the National Renewable Energy Laboratory, enables researchers to chemically analyze plants and trees in the field, increasing the speed of the analysis and cutting down costs. Photograph by Bonnie Hames, courtesy NREL Reprint and copyright information for one-time academic use of this material is available by contacting Customer Service, Copyright Clearance Center, at +1 978-750-8400 (phone) or +1 978-750-4744 (fax), or by writing to CCC, 222 Rosewood Drive, Danvers, MA 01923, USA. Nonacademic and commercial users should contact the Worldwatch Institute’s Business Development Department by fax at +1 202-296-7365 or by email at wwpub@worldwatch.org. Table of Contents Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The Promise of Biofuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Biofuels in the United States Today . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Climate and Environmental Impacts of Current Biofuels . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Benefits of “Advanced” Biofuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Making Biofuels Sustainable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Federal and State Biofuel Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 The Road Ahead: Policy Options for Sustainable U.S. Biofuels . . . . . . . . . . . . . . . . . . . . . 30 Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Figures, Tables, and Sidebars Figure 1. U.S. Biofuel Production, 1990–2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Figure 2. U.S. Corn Used in Ethanol Production, 1980–2008 . . . . . . . . . . . . . . . . . . . . . . . 10 Figure 3. U.S. Corn and Soybean Prices, 2000–09 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Figure 4. U.S. Ethanol and Gasoline Prices, 2005–09 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Figure 5. GHG Emissions Reduction Potentials for Ethanol, by Feedstock Type . . . . . . . . 13 Figure 6. Biofuel Requirements Under the U.S. Renewable Fuel Standard, 2009–22 . . . . 26 Table 1. Biofuel Production by Country/Region, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Table 2. Selected Biofuel Sustainability Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Sidebar 1. Biofuel Basics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Sidebar 2. Algae for Biodiesel: Third-Generation Biofuels . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Sidebar 3. Technologies for Advanced Biofuels: Biochemical and Thermochemical Platforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Sidebar 4. Biomass and Biofuels: Transitioning Transportation Fuels . . . . . . . . . . . . . . . . 24 Sidebar 5. California’s Low Carbon Fuel Standard: A Model for National Policy? . . . . . . . 29 Acknowledgments This report has been through many reinventions, benefiting from a range of experts and researchers who have made this timely update possible. We are thankful for the continued guidance and expertise of Christopher Flavin, President of Worldwatch, and Janet Sawin, Director of the Institute’s Energy and Climate Change Program. We also appreciate the contributions of Raya Widenoja, who laid much of the early groundwork for the report, and the numerous outside experts, who provided thoughtful input on the report and its recommendations. Special thanks also to Stanford MAP Fellow Amanda Chiu, who researched the figures and tables and contributed an informative sidebar. Antone Neugass showed great flexibility in his research skills and in finding new data that pulled the paper together. Senior Editor Lisa Mastny played an essential role in commenting on early drafts and moving the draft through production, and Art Director Lyle Rosbotham provided the clean design and layout. The authors also appreciate the support of Juliane Diamond, who helped with the important tasks of fact checking and filling in last-minute research holes. Support for this project and the Worldwatch Institute over the past year was provided by the American Clean Skies Foundation, the Heinrich Böll Foundation, the Blue Moon Fund, the Casten Family Foundation, the Compton Foundation, Inc., the Bill & Melinda Gates Foundation, The Goldman Environmental Prize, the Richard and Rhoda Goldman Fund, the Good Energies Foundation, the W. K. Kellogg Foundation, the Steven C. Leuthold Family Foundation, the Marianists of the USA Sharing Fund, the Netherlands Environment Ministry, the Norwegian Royal Ministry of Foreign Affairs, the V. Kann Rasmussen Foundation, The Shared Earth Foundation, The Shenandoah Foundation, the Sierra Club, Stonyfield Farm, the TAUPO Fund, the United Nations Population Fund, the United Nations Environment Programme, the Wallace Genetic Foundation, Inc., the Wallace Global Fund, the Johanette Wallerstein Institute, the Winslow Foundation, and the World Wildlife Fund–Europe. Support was also provided by the generous contributions of more than 3,000 Friends of Worldwatch. About the Authors Jane Earley is an attorney and the managing partner of Earley & White Consulting Group, LLC, where she specializes in the international trade and environmental aspects of standards in international law. She is currently working on emerging standards for biofuels and agricultural carbon credits and on efforts to address sustainable agriculture in U.S. and international standards. Jane has broad experience in the public and private sectors and with both voluntary and regulatory standards. She has served as a trade negotiator with the Office of the U.S. Trade Representative, as director of the Sustainable Agriculture Unit of the World Wildlife Fund, and as CEO of the Marine Stewardship Council. Alice McKeown is a research associate at the Worldwatch Institute and the director of Vital Signs Online. She has followed and written about environmental issues for many years and currently writes about climate change, energy, and agriculture issues. Her recent publications include a “Climate Change Reference Guide” for Worldwatch’s State of the World 2009 report and articles on genetically modified crops, aquaculture, compact fluorescent light bulbs, and coral reefs. Alice has a background in environmental advocacy and grassroots organizing, including more than five years of lobbying and policy experience. She has worked extensively on issues surrounding the use of coal, including climate change, air pollution, and community destruction caused by mountaintop removal coal mining. Alice supports the local foods movement and is proud to know her farmer. 4 Red, White, and Green w w w. w orldwatch.org Summary O ver the last decade, biofuels have been championed in the United States as a new source of income for rural communities, as a way to reduce dependence on foreign oil, and most recently as a solution to the country’s energy and climate change problems. These latter concerns are now the main driver behind the promise of biofuels, leading the United States and other governments across the world to encourage greater production and use. But as the market for biofuels expands, so too do the social, economic, and environmental impacts. Rapid growth in biofuels use in the past five years has contributed to a sharp increase in food, feed grain, and soybean prices in the United States and abroad. These price fluctuations have fueled a global debate over “food versus fuel.” At the same time, the global economic recession has led the U.S. biofuels industry to contract, threatening jobs and livelihoods. Studies suggest that the environmental costs of producing “first-generation” biofuels such as corn-based ethanol on a large scale likely outweigh the benefits. These costs include increased water pollution, the loss of wildlife habitat, and declining freshwater resources. Of particular concern is the link between biofuels expansion and the global conversion of land for agriculture, as biofuel crops compete with forests and food crops for limited land and other resources. Corn ethanol leads to only minimal, if any, reductions in greenhouse gas emissions, an ofttouted benefit and justification for expanding biofuels production. Current best estimates suggest that corn ethanol provides only a 12 to 18 percent net reduction in emissions, on aver- www.worldwatch.org age, compared to gasoline. If land that is rich in carbon is converted from forests or other natural ecosystems to biofuels production, these benefits can fall away completely. These concerns point to a crossroads for the U.S. biofuels industry. The country must now choose between a business-as-usual approach that worsens environmental and climate problems, or a more cautious approach during which decision makers take the time to “get biofuels right” before rushing forward with more production. Taking the more sustainable path includes an immediate transition to “second-generation” biofuels while phasing out reliance on unsustainable first-generation fuels. Advanced biofuels can be produced not just from annual crops, but also from fastgrowing trees and grasses as well as from a range of organic wastes and potentially even algae. The feedstocks can be grown on marginal land that does not have to compete with food production and that can be cultivated in ways that minimize harmful effects on water quality and wildlife habitat. These feedstocks may also require fewer fossil fuel inputs and retain more carbon in their soils than corn and soybeans, enhancing their ability to mitigate climate change. Research is now under way on the conversion of cellulose to biofuel, and dozens of entrepreneurs are working to commercialize this and other advanced biofuel technologies. There is no guarantee, however, that the production of advanced biofuels at a large scale will be environmentally beneficial, although current assessments show much promise. Three broad efforts in U.S. policy would make biofuels production more environmenRed, White, and Green 5 Summary tally sustainable and help ensure that the use of biofuels for transportation contributes to both energy security and global efforts to reduce greenhouse gas emissions: 1. Spur the rapid development of cellulosic and other advanced biofuels that significantly reduce greenhouse gas emissions, using existing economic instruments and other tools. 2. Develop sustainability standards and make government support for biofuels conditional on meeting these standards. 3. Create a holistic energy policy across all transportation-related sectors. Reforming U.S. biofuel policies will require overcoming an array of economic forces that uphold the current industry structure. Present policies reward the least promising biofuels, and if they are not reformed, rising damage to 6 Red, White, and Green the landscape and climate will fuel greater opposition. Although second-generation biofuels are not a panacea, they offer the prospect of a more sustainable energy future. Getting there will require careful analysis of biofuel production, distribution, and use, including alternate ways to grow feedstock, power refineries, and use byproducts. Decision makers should also consider wider transportation solutions such as more fuel-efficient vehicles, investments in public transportation, ways to reduce congestion, and urban planning that promotes biking and walking. The solution to the biofuels challenge is not simply a matter of substituting different feedstocks. Rather, it is about finding a new model that takes the United States down a truly red, white, and green path. w w w. w orldwatch.org The Promise of Biofuels E very day, the U.S. transportation sector uses an estimated 14 million barrels of oil to power more than 244 million cars, trucks, and other vehicles.1* As concerns about energy security and the nation’s self-proclaimed “addiction to foreign oil” escalate, the impetus for reducing dependence on petroleum and other fossilbased transport fuels grows stronger.2 Worries about climate change add to the alarm, as the transportation sector now accounts for nearly 30 percent of U.S. greenhouse gas emissions.3 Biofuels, which have long been popular with farmers who see a new market for their crops, are now touted as a solution to the country’s energy and climate problems. The two most popular biofuels nationwide are corn-based ethanol and soy-based biodiesel, although biofuels can theoretically be produced from a wide range of plant and animal feedstocks.4 (See Sidebar 1.) Biofuels research and development has been under way in the United States since the late 1970s, but the industry came into its own only in the last decade. As the promise of renewable fuels has been more widely advertised, governments around the world have moved to produce and promote wider use of biofuels. Globally, production of ethanol and biodiesel increased from some 4.8 billion gallons in 2000 to 21 billion gallons in 2008.5 Ethanol accounts for the bulk of global biofuels production, and the United States and Brazil are the two leading producers, generating the fuel from corn and sugar cane, respectively.6 (See Table 1.) As production has Sidebar 1. Biofuel Basics The terms biofuel, ethanol, and biodiesel are sometimes used interchangeably, but they have important distinctions. In the United States “biofuel” is most often used in reference to cornbased ethanol, the main biofuel produced domestically. But there are many other potential biofuels, including biodiesel, cellulosic ethanol, biobutanol, and biogas. When used for transportation, biofuels are not typically stand-alone fuels but are blended into conventional fuel sources, such as gasoline and petroleum diesel. Biofuels can be derived from an array of feedstocks using astonishingly diverse technologies. Currently, the primary feedstocks fall into three main categories of agricultural crops that are also used for food: • sugar crops, including sugar cane, sugar beets, and sweet sorghum; • starch crops, including corn, wheat, barley, cassava, and milo (grain sorghum); and • oilseed crops, including rapeseed, canola, soybean, sunflower, and mustard. Biofuels are just one form of “bioenergy,” or energy derived from biological plant and animal matter, which is known collectively as biomass. In the United States, biofuel usually refers to liquid fuels for transport, whereas bioenergy or biomass energy is commonly used to describe electricity or heat generated from renewable biomass sources. Conventional or “first-generation” ethanol (e.g., corn ethanol) is made by fermenting sugars from plants with high starch or sugar content into alcohol, using the same basic methods that brewers have relied on for centuries. “Second-generation” ethanol (e.g., cellulosic ethanol) is made from more advanced and nonfood crop feedstocks, using more sophisticated technological processes that have to first break down cellulose into sugars. Ethanol is typically found as a blend with petroleum gasoline, although certain modified vehicles (“flex-fuel”) can run on a higher E85 (85 percent ethanol) blend. Biodiesel is made by reacting oils with alcohols in a process known as esterification. In addition to plant feedstocks, biodiesel can be made from animal fats and waste oils. Biodiesel can be used in pure form (B100) or as a blend with petroleum diesel. Source: See Endnote 4 for this section. * Endnotes are grouped by section and begin on page 34. www.worldwatch.org Red, White, and Green 7 The Promise of Biofuels Table 1. Biofuel Production by Country/Region, 2008 Country/ Region Ethanol Biodiesel Total million gallons million tons of oil equivalent (mtoe) million gallons mtoe million gallons mtoe United States Brazil European Union (EU-27) China Canada Thailand Colombia India Australia Rest of World 8,982 6,472 734 502 238 90 79 66 26 128 17.08 12.31 1.40 0.95 0.45 0.17 0.15 0.13 0.05 0.24 711 308 2,113 41 26 123 30 6 18 512 2.13 0.92 6.33 0.12 0.08 0.37 0.09 0.02 0.05 1.53 9,693 6,780 2,846 542 264 213 109 72 44 640 19.21 13.23 7.73 1.08 0.53 0.54 0.24 0.14 0.10 1.78 World 17,317 32.93 3,888 11.66 21,205 44.59 Source: See Endnote 6 for this section. increased, so too has the fuel ethanol trade. In 2000, exports represented only some 2.5 percent of global production, but by 2007 this share had climbed to 8 percent.7 Biofuels account for an estimated 1 percent of global transport fuel consumption.8 Global production of biodiesel has grown rapidly as well, although starting from a much smaller base. Biodiesel output expanded from 230 million gallons in 2000 to 3.9 billion gallons in 2008.9 The European Union produces nearly 80 percent of the world’s biodiesel, largely from rapeseed (Germany is the single largest biodiesel producer), followed by the United States, which produces the fuel mainly from soybeans.10 Indonesia and Thailand are significant producers of biodiesel from palm oil.11 Expanding biofuels development has triggered worldwide concern about the economic, environmental, and social impacts of this boom. Rapid growth in biofuels use in the past five years has contributed to a sharp increase in food, feed grain, and soybean prices.12 Of particular concern is the link between biofuels expansion and the global conversion of land to agriculture, as biofuel crops compete with forests and food crops for limited land and other resources. These “indirect” effects of bio8 Red, White, and Green fuels are only beginning to be understood.13 In the United States, it is clear that the current biofuels industry, based primarily on corn ethanol, is creating a host of problems while failing to deliver measurable reductions in greenhouse gas emissions. Yet U.S. policies continue to support the rapid increase in biofuels production. The nation’s Renewable Fuel Standard (RFS), updated in 2007, requires that 36 billion gallons of biofuels be included in the U.S. liquid fuel mix by 2022, including a maximum of 15 billion gallons of corn ethanol from 2015 on.14 But industry experts predict that corn ethanol production could surge well beyond this level if oil and fuel prices continue to rise, supporting greater industry expansion.15 The U.S. biofuels industry is at a crossroads. In order to become sustainable over the long term, it must take aggressive and concerted action to address the serious environmental, social, and economic concerns that stem from current biofuels production. It must also work to speed the transition to so-called “secondgeneration” biofuels derived from agricultural and forestry wastes and other non-food sources, which hold greater promise for the environment and global climate. w w w. w orldwatch.org Biofuels in the United States Today T * 1.5 gallons of ethanol are needed to displace 1 gallon of gasoline because of ethanol’s lower energy content. www.worldwatch.org Figure 1. U.S. Biofuel Production, 1990–2008 10,000 Source: RFA, F.O. Licht, NBB 8,000 Million Gallons he U.S. biofuels industry has really taken off only in the last decade or so. In the late 1990s, strong initial growth in ethanol production stemmed from the need to find a less toxic substitute for the gasoline additive MTBE (methyl tertiary butyl ether), a known groundwater contaminant.1 Since then, U.S. agricultural regions have lobbied successfully for policies to increase domestic biofuels use as a way to shore up corn prices and stimulate rural development. U.S. ethanol production has expanded rapidly over the past decade, although the market has changed considerably in just the last two years as economic conditions have changed. In 2002, producers generated some 2.1 billion gallons of ethanol, and demand barely topped 2 billion gallons.2 By comparison, in 2008 domestic ethanol production was estimated at 9 billion gallons, and demand topped 9.6 billion gallons, including some 500 million gallons of imports.3 (See Figure 1.) The increase in ethanol consumption reduced U.S. demand for motor gasoline by about 5 percent in 2008.4 * While the nation’s ethanol market experienced a significant downturn at the end of the year, and projections for 2009 are more conservative, there is still considerable potential for growth over the next few years. As of September 2008, 160 companies were producing ethanol in the United States, 57 more than the year before.5 The addition of the new companies contributed to a decline Biodiesel Ethanol 6,000 4,000 2,000 0 1990 1993 1996 1999 2002 2005 in the market share of industry leaders such as POET, VeraSun, and Archer Daniels Midland.6 In early 2009, the country was home to 193 ethanol plants with a combined nameplate capacity of 12.4 billion gallons.7 Rising ethanol production has led to a sharp increase in U.S. demand for corn. The U.S. Department of Agriculture (USDA) predicts that farmers will plant some 85 million acres of corn in 2009–10, down slightly from the year before but still the third largest acreage since 1949 (following 2007 and 2008).8 As much as one-third of this corn crop, or 4.2 billion bushels, will be used to produce ethanol in 2009–10, up from only 5 percent in 2000.9 (See Figure 2.) But ethanol’s share of annual U.S. gasoline use is expected to remain relatively small: about 10 percent by 2020 and 15–17 percent by 2030.10 U.S. biodiesel production has lagged far behind ethanol in volume, but the industry Red, White, and Green 9 2008 Biofuels in the United States Today Figure 2. U.S. Corn Used in Ethanol Production, 1980–2008 4,000 100 3,200 80 Corn used in ethanol production Ethanol share of U.S. corn production 2,400 60 1,600 40 800 20 0 0 1980 1984 1988 1992 1996 2000 September–August Market Years has expanded rapidly as well. The nation’s biodiesel producers rely mainly on soybeans and waste cooking oil as feedstocks, although some are using canola or cottonseed oil.11 As of September 2008, there were 176 biodiesel plants nationwide, with a combined annual capacity of some 2.6 billion gallons.12 Yet production remains well below capacity: in 2008, domestic biodiesel output was only 711 million gallons.13 Another 850 million gallons of capacity is slated to come online by the end of 2009.14 The rapid expansion in biofuels—particularly corn ethanol—has had mixed economic impacts. One of the more cited effects is the higher volatility of corn and soybean prices triggered both by demand-induced price increases and by sharp jumps in the price of oil, a significant input to current systems of food production.15 * (See Figure 3.) Estimates indicate that the high U.S. demand for corn for ethanol production accounted for 20 percent of the rise in corn prices in 2008.16 The rising price of corn has caused hardship for other U.S. agricultural sectors that rely heavily on corn for animal feed and other products, such as livestock and poultry production and the manufacturing of high-fructose corn sweeteners.17 In 2009, the Congressional Budget Office estimated that the increased * All dollar amounts are expressed in U.S. dollars. 10 Ethanol Share of Corn Production (%) Corn Used in Ethanol Production (million bushels) Source: USDA Red, White, and Green 2004 2008 demand for corn ethanol was responsible for 10–15 percent of the rise in food prices for the year ending in April 2008.18 Rising food costs due to ethanol production are projected to cost the government an additional $600–900 million in expenditures on federal food assistance programs in fiscal year 2009.19 More recently, a sharp decline in oil prices has put pressure on biofuel producers by squeezing their profit margins. When oil prices were high—up to $147 a barrel in July 2008— corn ethanol continued to flourish.20 But as oil fell to $36 a barrel in early 2009, ethanol blending became less attractive and producers were faced with expensive feedstocks and lower profits.21 Domestic demand for gasoline dropped late in 2008 as well—down 7.1 percent for the year, the largest one-year decline since records began in 1950—and the market for ethanol blending eroded further.22 All of these factors led to high volatility in 2008 in both the wholesale price of ethanol and in the per-gallon profit.23 (See Figure 4.) The volatility in feedstock prices, demand, and profits, compounded with the global economic downturn and credit crisis of 2008, led to a shakeup in the U.S. ethanol industry. In October 2008, VeraSun, the country’s second largest producer with 1.64 billion gallons of capacity, filed for bankruptcy, even though it had been a rising star earlier in the year.24 Other U.S. w w w. w orldwatch.org Biofuels in the United States Today www.worldwatch.org Figure 3. U.S. Corn and Soybean Prices, 2000–09 15 Source: USDA Soybeans Corn Dollars per Bushel 12 9 6 3 0 2000 2002 2004 2006 2008 2010 Figure 4. U.S. Ethanol and Gasoline Prices, 2005–09 6 Ethanol Unleaded gasoline 5 Dollars per Gallon companies also declared bankruptcy.25 Estimates indicate that more than 24 ethanol plants were shut down or idled between late 2008 and March 2009, accounting for about 21 percent of U.S. annual capacity, and the trend was expected to continue through 2009.26 Because many ethanol companies are privately owned, the full extent of problematic debt and other financial instability remains largely unknown.27 Although investment in corn ethanol was profitable for many investors initially, industry consolidation in recent years has resulted in the transfer of many locally owned plants from farmer cooperatives to large companies.28 Estimates show that only some 34 percent of U.S. ethanol facilities were locally owned in 2006— down significantly from earlier years—and this share has continued to plummet to no more than 21 percent in 2009.29 Additional consolidation in both the ethanol and biodiesel industries is expected, especially with a worsening economy, low or moderate oil prices, and large sell-offs of biofuel assets.30 The loss of local ownership can translate into fewer benefits for local communities. One study in the state of Minnesota, where as many as 80 percent of ethanol facilities remain locally owned, suggests that local ownership can increase local economic benefits by 5 to 30 percent.31 Local ownership may be particularly beneficial to farmers, who may earn up to 10 times more per bushel from ethanol-related dividends than from selling the crop without dividends and under absentee ownership.32 Another study from Iowa indicates that every quarter-share of local ownership at an ethanol plant supports some 29 jobs in the local economy (beyond plant operations) during a period of high returns.33 The effects of ethanol plants on U.S. job creation have been mixed. Industry reports initially promised the creation of nearly 700 permanent jobs in an area near an ethanol plant, but more realistic estimates may be 130–250 permanent jobs during a boom year.34 However, these numbers do not take into account the possible adverse impacts on the food and livestock industries from the diversion of corn to ethanol.35 The Renewable Fuels 4 3 2 1 Source: Platts 0 2005 2006 2007 2008 2009 2010 Association estimates that the ethanol industry supported the creation of some 238,000 jobs during 2007.36 By comparison, U.S. biodiesel plants were estimated to support more than 20,000 new jobs nationwide in 2007 and some 52,000 jobs in 2008.37 This translates into about 635 new direct and indirect jobs for every 10 million gallon plant.38 Future prospects for U.S. job creation from ethanol, biodiesel, and other advanced biofuels are positive. One study estimates that renewable transportation fuels could lead to more than 1.2 million new “green” energy jobs by 2038, assuming that infrastructure development and feedstock growth will support a 30 Red, White, and Green 11 skidrd Biofuels in the United States Today Bioidiesel blends available at a station in Seattle, Washington. percent share of renewable fuel demand by the same year.39 Another study estimates that investment in green jobs, including in the biomass and advanced biofuel and cellulosic ethanol sectors, could lead to the creation of 2 million jobs if the country achieves 25 percent low-carbon fuels content by 2025.40 The U.S. Department of Energy (DOE) projects that for every 1 billion gallons of cellulosic ethanol that comes online, up to 20,000 jobs may be created.41 Lastly, a study released in early 2009 predicts that meeting the advanced biofuels requirements of the Renewable Fuel Standard will create 123,000 jobs (including 29,000 direct jobs) by 2012.42 U.S. ethanol producers continue to receive generous subsidies (amounting to an estimated $8 billion in 2008) to help maintain production, but some proponents argue that addi- tional support is necessary to maintain a viable industry.43 The global recession and credit crunch are often cited as hampering the development of advanced biofuels such as cellulosic ethanol.44 One estimate indicates that the number of investment banks with a history of supporting ethanol development over the last decade has dropped from around 20 to only five today.45 Some investors are also reluctant to invest during a time of low or moderate oil prices and weak demand for oil and ethanol.46 These financial uncertainties have been a leading factor in calls to increase the nation’s ethanol blending limit, currently set at a maximum blend level of 10 percent ethanol into conventional gasoline (known as E10). Limiting the level of ethanol that can be blended restricts the overall amount of ethanol that can be sold in the United States to about 12.5 billion gallons per year because of the total amount of transportation fuels used.47 * Many ethanol proponents have argued that this virtual production cap—often called the “blend wall”— will soon be reached, necessitating higher blending limits of 15–20 percent to guarantee a larger domestic market for ethanol and encourage more development and investment.48 Changing the blend level is more than a formality, and the U.S. Environmental Protection Agency and DOE are studying the effects on vehicle engines and the environment of raising the blending limit.49 With mounting pressure from industry groups and potential support from the heads of both agencies, however, some experts predict that the blend level may be raised to 12 or 13 percent in the short term, before the full effects are known.50 * A higher-level blend of 85 percent (E85) can be used only in specially modified engines and is sold at only a small number of filling stations across the United States. Including ethanol in every gallon of gasoline in the country is currently impossible due to limitations in production, distribution, and other issues. 12 Red, White, and Green w w w. w orldwatch.org Climate and Environmental Impacts of Current Biofuels www.worldwatch.org a strong energy return, in large part because the refining process is fueled by sugar cane bagasse, the stalks that remain after sugar cane has been pressed to make sugar.4 The energy balance for some biofuels is expected to improve over time with increased yields, more efficient processing, and other developments.5 Current best estimates suggest that corn ethanol provides only a 12–18 percent net reduction in greenhouse gas emissions, on average, compared to gasoline (the Environmental Protection Agency estimates a 22 percent reduction).6 (See Figure 5.) As a result, ethanol consumption reduced total emissions from the U.S. transportation sector by only 0.7 percent in 2008.7 In places where coal, a carbon-intensive fuel, is used to power the refinery, the lifecycle emissions for ethanol can be as high as or higher than those associated with gasoline.8 Figure 5. GHG Emissions Reduction Potentials for Ethanol, by Feedstock Type 0 Emissions Reduction Potential (%) B iofuels are considered to be an environmentally friendly alternative to fossil fuels in part because they have the potential to emit fewer greenhouse gases per mile traveled than gasoline and petroleum diesel, when evaluated over the entire fuel lifecycle (from field to tank). In theory, biofuels could be a “zero-carbon” or “carbon-negative” energy source because many potential feedstocks (grasses, trees, and other plants) continually store carbon in their root systems and the soil. In reality, however, current U.S. biofuels depend on significant fossil fuel inputs that release a variety of greenhouse gases, including carbon dioxide and nitrous oxide. These emissions occur when fertilizers and pesticides are manufactured, transported, and applied; when fossil energy is used to run farm machinery, pump irrigation water, and operate refineries; and when the processed fuel is transported and used.1 Greenhouse gases are also released during changes in land use, such as when crops are tilled and when new land is cleared for feedstock cultivation. One way to analyze a biofuel’s climate contribution is by assessing its “fossil energy balance,” or the amount of energy contained in the biofuel compared to the amount of fossil fuel used to produce it. Estimates of energy balance vary widely among and even within fuel types, depending on such factors as where and how the fuel is produced and on specific assumptions used in the studies.2 Most research indicates that biodiesel and other advanced biofuels such as cellulosic ethanol display some of the highest lifecycle energy balances.3 Ethanol from sugar cane also offers -20 Corn Ethanol -40 Sugarcane Ethanol -60 -80 Cellulosic Ethanol -100 Note: Ranges are based on scientific literature and do not include emissions from changes in land use. Point markers indicate best estimates made by EPA. Red, White, and Green 13 Climate and Environmental Impacts of Current Biofuels jimparkin/stockxpert Land use changes will also affect the climate impact. Studies indicate that the emissions from land use changes made to accommodate greater corn production—such as converting forests to cropland—would take decades to “repay” through any reductions that corn ethanol brings by displacing fossil fuels, and could shift the fuel from reducing greenhouse gases by 20 percent to doubling them instead.9 An ethanol production plant surrounded by corn in South Dakota. Biodiesel, in contrast, has more than double the climate benefits of corn ethanol. Current best estimates for soy-based biodiesel show a 41 percent improvement in lifecycle greenhouse gas emissions over conventional diesel.10 The EPA puts the average emissions reductions even higher—at 68 percent—based on a combination of soybean and yellowgrease feedstocks.11 Clearing land for new crop production can release large amounts of greenhouse gases, especially when carbon-rich ecosystems such as forests, savannahs, and grasslands are converted.12 One study estimates that clearing tropical forests to plant oil palm plantations for biodiesel will incur a “carbon debt” of 75 to 93 years—the amount of time needed for the biofuels made from the palm oil to offset as much greenhouse gas emissions as was released during land clearing.13 If native peatlands are cleared, the carbon debt rises to 600 years.14 Dedicating U.S. croplands and food crops to biofuel production can cause land use changes 14 Red, White, and Green not only in the United States but also in other countries, as land is converted to make up for the overall loss in food crops.15 Estimates indicate that using first-generation biofuels to meet 10 percent of global fuel consumption by 2030 would require an additional 291–1,255 million acres of cropland depending on feedstock and productivity: the equivalent of 8–36 percent of the world’s current arable land.16 Other factors that will increase the demand for cropland include rising populations and the expanding global appetite for meat. The use of chemical inputs also contributes to a biofuel’s energy and climate footprint, although application rates vary significantly by crop. A 2006 study from the University of California at Berkeley found that, on average, about 40 percent of corn ethanol’s greenhouse gas emissions occur during the agricultural phase of production.17 Nitrogen fertilizer in particular is often over-applied, and it degrades into nitrous oxide, a potent greenhouse gas.18 Recent studies suggest that the nitrous oxide released during biofuels production may in fact be four times greater than was previously estimated.19 Many U.S. corn farmers have had to increase their fertilizer use in recent years because they chose to boost their profits by skipping annual rotations of corn with a legume crop, such as soybeans, which can help to restore soil nitrogen levels.20 Producing soybean biodiesel, in contrast, requires only 2 percent of the nitrogen and 8 percent of the phosphorus, per unit of energy gain, that corn ethanol does.21 Low-input perennial plants such as prairie grasses also require fewer chemical inputs than corn.22 Climate change impacts from farming also occur when soils degrade over time and lose their organic carbon stores, such as during extensive tilling. Land that is cropped annually stores very little carbon in its vegetation, and the soil is both deprived of a fresh carbon source and exposed to air and sunlight that causes it to release carbon that was stored.23 Continuous corn cropping in particular has been criticized for reducing soil carbon.24 In addition to releasing greenhouse gases, biofuels contribute to the emissions of other w w w. w orldwatch.org Climate and Environmental Impacts of Current Biofuels air pollutants, including smog-forming compounds and particulates. Some of the pollutants are released during the refining stage, while others result from fuel combustion in the vehicle engine. A study from the University of Minnesota indicates that corn ethanol— regardless of how the refinery is powered—will always increase particulate pollution compared to conventional gasoline, while cellulosic biofuels will reduce particulate pollution.25 Other research points to air pollution problems from low-level ethanol blends and shows mixed results with high-level (E85) blends.26 Air quality impacts for biodiesel have been unclear, with studies showing both small increases and small decreases in nitrogen oxides (NOx) pollution.27 A report from the U.S. National Academy of Sciences concludes that expanding corn ethanol production to meet the Renewable Fuel Standard will also result in considerable additional harm to domestic water quality, mainly from increased nitrogen and phosphorous loading in surface and ground waters.28 Other research predicted that planting more corn to meet ethanol targets in the United States alone would increase nitrogen pollution to the Mississippi River by 37 percent.29 The Gulf of Mexico “dead zone,” caused by nitrogen and other water pollution, was its second largest on record in 2008, with the bulk of the pollution estimated to come from agriculture in the Mississippi River basin.30 Growing soybeans for biodiesel also adds to the problem.31 Biofuels are contributing to water supply concerns as well, at both the local and regional levels.32 Corn ethanol is very water intensive— not just at the refinery stage, where each gallon of fuel produced requires 3–4 gallons of water, but also in the field.33 One study estimates that irrigating corn for ethanol requires some 780 gallons of water per gallon of fuel produced, or about 200 times the water used at the ethanol refinery.34 U.S. water consumption for ethanol is likely to increase as corn cultivation expands to drier areas: between 2005 and 2008, ethanol’s water demand more than tripled, despite only a doubling in production.35 www.worldwatch.org Biodiesel, in contrast, requires about one gallon of water per gallon of fuel produced, although the amount of water required for irrigation varies significantly.36 Biofuels production is also expanding in regions where non-renewable aquifers are shrinking.37 In the southern Great Plains, agriculture depends heavily on irrigation from the Ogallala Aquifer, which is being tapped at an unsustainable level.38 Several new ethanol refineries are slated for construction near the aquifer, including in areas where the water table has already dropped significantly.39 Further expansion of U.S. corn acreage will come at the expense of land and wildlife conservation.40 The corn ethanol boom poses a particular threat to the U.S. Department of Agriculture’s Conservation Reserve Program (CRP), which encourages farmers to “set aside” or retire marginal lands from production as a way to reduce soil erosion, improve wildlife habitat, and restore watersheds.41 In 2008, some 2 million acres were removed from the program, and more than 20 million acres of CRP land are up for renewal in the next few years.42 With a guaranteed market for 15 billion gallons of ethanol through 2022, landowners will have a continued incentive to turn much of this land back to production, especially if the net revenues from growing ethanol feedstocks continue to be higher than those associated with keeping the land in conservation.43 A variety of animal species rely on the habitat provided by CRP lands for their survival, including grassland birds such as the Grasshopper sparrow, Baird’s sparrow, Lark bunting, and Bobolink, as well as mallard ducks.44 A loss in CRP lands, combined with the impacts of climate change on U.S. ecosystems, is likely to reduce the habitat available for some of these species, constraining their range and reproduction. The current or future cultivation of non-native biofuel crops presents a further threat to biodiversity conservation, as these crops have the potential to cross-breed with native plants to produce invasive weeds—or to become invasive species themselves.45 Red, White, and Green 15 Benefits of “Advanced” Biofuels A kurmis/stockxpert lthough ethanol and other biofuels have become more sophisticated in the years since U.S. federal support was first levied in the late 1970s, they need to develop much further if they are to be a sustainable energy solution. Nearly all studies on the role of biofuels in mitigating climate change and boosting energy security conclude that the transition to so-called “second-generation” or “advanced” biofuels is necessary to make the wider use of biofuels feasible. Wood chips from timber waste come off a shredder’s conveyor belt. Advanced biofuels rely on non-food feedstocks and offer dramatically improved energy and greenhouse gas profiles over conventional biofuels such as corn ethanol. But large-scale development of advanced biofuels has not yet taken place. While many of these feedstocks and technologies are promising, the broad economic and environmental effects of the fuels at commercial scale are not yet known. The most widely cited second-generation 16 Red, White, and Green biofuels are “cellulosic” biofuels, derived from the fibrous—or cellulosic—material in plants. Potential cellulose sources include perennial grasses and fast-growing trees, some of which are being developed as dedicated “energy crops” that can be converted to ethanol or biodiesel. Of the many possible perennial feedstocks, switchgrass has received the most attention in the United States. Other potential feedstocks being tested include blue grass, gammagrass, the tropical Asian grass Miscanthus, and energy cane, a variety of sugar cane bred to produce high sugar levels.1 Advanced biofuels can also be made from non-plant biomass sources, such as fats, manure, and the organic material in urban wastes. Crop residues, in the form of stems and leaves, represent another substantial source of cellulosic biomass. Corn stover—the stalks and cobs that remain after harvesting—is actively being promoted by corn interests as a feedstock for second-generation refineries. However, some studies suggest that removing just 25 percent of the corn stover from fields will reduce soil quality and decrease carbon content, even on prime agricultural land.2 Corn stover also yields relatively few gallons per acre: 180–270, compared with 425 gallons from conventional corn ethanol.3 Fast-growing trees are being considered as potential feedstocks as well, including hybrid willow and poplars that can grow well with few chemical inputs.4 But there are downsides to the use of these trees, especially in locations where the species are non-native and may be invasive.5 A closely related potential feedstock is forest waste from the timber industry and more-aggressive clearing of underbrush for fire w w w. w orldwatch.org Benefits of “Advanced” Biofuels Sidebar 2. Algae for Biodiesel: Third-Generation Biofuels As research continues on second-generation advanced biofuels, some researchers and industry groups are taking a look at microalgae—often called the “third generation” of biofuels. Microalgae are photosynthesis-based single-celled organisms that can combine energy from the sun with carbon dioxide and other nutrients to produce biomass that is rich in natural oils. These oils can be separated and used to produce biodiesel and other biofuels. Microalgae offer many potential benefits as a feedstock. They grow rapidly, with some species doubling their mass in a single day. This translates into producing as much as 100 times more oil per acre than standard oil crops such as soybeans. Algae can also be carbon neutral if the biomass residue after oil collection is converted and used to power the processing system. Like second-generation feedstocks, microalgae do not compete with food crops. They may also confer additional environmental benefits, including cleaning wastewater. Microalgae have drawbacks, however. For the biofuel to be competitive, the current high costs of production (primarily a result of energy inputs) must be reduced. Although some experts estimate costs as high as $33 per gallon, the U.S. Department of Energy (DOE) puts the price at roughly $8 per gallon. Costs could be lowered by using waste heat as a power source and by selling byproducts for other uses, including in the fermentation of ethanol and as a supplement in animal food. Another potential drawback of algae is the high water demand, especially with the use of outdoor ponds that have high evaporation rates (although closed systems or the use of wastewater streams minimize this risk). Researchers are also considering genetic manipulation of algae to improve performance, which could pose environmental threats if grown in open systems where the organisms could spread to natural ecosystems. Early U.S. research on microalgae for biofuels began in the early 1980s under the DOE’s Aquatic Species Program. However, during budget cuts in the late 1990s the program was discontinued in favor of pursuing research on ethanol. In the last two years, interest has grown again, with hundreds of companies now working to commercialize microalgae for biofuels. The DOE has resumed research, and it hosted a workshop in December 2008 to discuss both barriers to commercial development and the release of an Algal Biofuels Roadmap. Despite limited government funding, private research and testing has continued. One of the latest developments to garner media attention is the testing of a commercial jet plane fueled in part by algae biofuel. Several companies have developed systems to divert carbon dioxide emissions from industrial operations into algae production, including a Solix Biofuels plant in Colorado connected to a beer brewery and plans by GreenFuel Technologies to build a site linked to a cement plant in Spain. By using emissions that would otherwise be vented to the atmosphere, these systems may be able to provide significant greenhouse gas benefits. Other recent advances include a breakthrough in light immersion that allows algae biomass to grow to depths of one meter (10–12 times deeper than before), and the recent decoding of the genes of two widely available ocean-dwelling microalgae, which could help further microalgae research. Source: See Endnote 7 for this section. prevention. The U.S. Departments of Energy and Agriculture estimate that 368 million dry tons of these wastes could be harvested sustainably every year.6 Another advanced and even more cutting-edge “third-generation” feedstock is algae for biodiesel.7 (See Sidebar 2.) One of the most compelling advantages of advanced biofuels over conventional biofuels is the potential to provide a more positive energy balance, resulting in reduced greenhouse gas emissions. Whereas corn ethanol yields about 25–35 percent more energy than is invested in www.worldwatch.org its lifecycle production (from field to tank), cellulosic ethanol has the potential to provide 4–9 times more energy than is required to produce it.8 One study has shown that sustainable, low-input, low-management switchgrass ethanol in three Midwestern states can yield 5.4 times more energy than invested, although the yield could theoretically be much higher.9 Research from the Argonne National Laboratory showed that the useful energy provided by the ethanol is approximately nine times the energy required to produce it.10 Red, White, and Green 17 Benefits of “Advanced” Biofuels Colorado State University These energy gains represent climate benefits for second-generation biofuels. Current estimates suggest that fueling vehicles with cellulosic ethanol could reduce emissions by 86–94 percent compared to gasoline (the U.S. Environmental Protection Agency estimates 91 percent) versus a reduction of only 12–18 percent on average for corn ethanol.11 Many of these climate-gain estimates are based on the need for fewer agricultural inputs as well as increased soil carbon storage.12 For example, research shows that some perennial crops, such as switchgrass, may store enough carbon in the soil and root mass to overcompensate for carbon released during the rest of the lifecycle, meaning they could help take carbon dioxide out of the air on a net basis.13 The Solix Biofuels test site for algal biofuel research at Colorado State University, Fort Collins, Colorado. Advanced biofuels also offer potential emissions benefits during refining, such as in instances where waste byproducts are used to help power the biomass conversion process. Processing cellulosic ethanol, for example, generates residues of lignin that can be used as a process fuel, making the refining process largely independent of fossil-based power such as coal and natural gas.14 In terms of projected fuel yields, secondgeneration feedstocks vary widely. U.S. test plots planted with switchgrass have yielded enough biomass to produce nearly 1,200 gallons of ethanol per acre annually.15 (In con18 Red, White, and Green trast, an average crop of 155 bushels of corn per acre will provide less than 500 gallons per acre.16) In practice, however, it makes sense to grow switchgrass and other perennial biofuel crops on more marginal lands than in the test plots to avoid competition for good farmland. Under these conditions, switchgrass, like corn, will produce less than 500 gallons an acre, and perhaps as little as 300 gallons, unless yields are improved with breeding or by using a combination of high-yielding grasses.17 One issue that deserves closer analysis is the potential advantage of cellulosic biofuels for soil, land, and wildlife conservation. For example, in a simulation of the impacts on soil and water quality in a central Iowa watershed over 20 years, researchers found that planting all available land with switchgrass reduced sediment flows (and thus erosion potential) by 84 percent, nitrogen concentrations by 53 percent, and phosphorous by 83 percent.18 Other research confirms that lower inputs of agrochemicals for second-generation feedstocks can have potentially positive effects on soil and water quality.19 Using a combination of high-yielding perennial grasses rather than monocultures may improve benefits to wildlife as well.20 The environmental advantages of cellulosic biofuels can be amplified further with the use of appropriate management practices. Perennial crops such as switchgrass and other prairie grasses can be harvested annually with minimal increases in soil erosion (and, if the grass is not cut too low, it can still provide habitat for small animals and birds).21 But if fastgrowing trees are cultivated, more-complex selective harvesting would be needed to avoid substantial soil erosion and to leave sufficient habitat for large wildlife.22 Harvesting on fragile soils, wetlands, waterways, and high-diversity habitats, meanwhile, will incur much higher environmental costs and may mirror some of the same problems seen with firstgeneration biofuels. Several estimates of the amount of harvestable biomass in the United States assume that much of the existing Conservation Reserve Program land will be used for energy crop production—posing a potential threat to these lands.23 w w w. w orldwatch.org Benefits of “Advanced” Biofuels Sidebar 3. Technologies for Advanced Biofuels: Biochemical and Thermochemical Platforms Second-generation production of cellulosic biofuels currently follows one of two technology platforms. The first, biochemical, refers to a process that uses chemicals, enzymes, and microorganisms to break down plant feedstocks into components that can be converted to fuels. Pretreatment and hydrolysis are used to separate the cellulose from other plant fibers such as lignin and hemicellulose. Once separated, the cellulose must be broken down further into sugars, which can be fermented into alcohols that are then distilled into ethanol or other fuels. The ethanol produced through the biochemical process is identical to ethanol generated through first-generation production, such as that based on corn. Although the biochemical process is normally associated with ethanol production, it may be used to make other fuels, too. For example, some researchers are investigating the use of modified E. coli to convert cellulosic feedstocks to microdiesel, which is compatible with biodiesel. The second platform, thermochemical, works by applying heat and chemicals to convert almost any kind of biomass into a variety of fuels. The feedstock is heated until it converts into a syngas, which is then run through a catalyst that changes it into a liquid fuel. The type of fuel that results is determined by which catalyst is used, but it most often includes Fisher-Tropsch liquids (FTLs), which are similar to biodiesel, as well as a range of alcohols, including ethanol. One alternative being explored is to use fermentation with the syngas rather than a catalyst, which would allow for direct production of ethanol. The potential benefits of the thermochemical process include its ability to better convert cellulosic materials, including wood and forest wastes that are difficult to convert through the biochemical platform. Also, because the thermochemical platform is similar to the way petroleum is refined, it can use currently available technologies that help reduce the cost. The flexibility of feedstocks offers advantages as well. While both of these platforms are understood today, more research is needed to make second-generation biofuels more cost-competitive with first-generation biofuels and to bring advanced biofuels to commercial production. Potential areas for further research include developing better pretreatment processes and enzymes for hydrolysis, improving microorganisms for fermentation, developing feedstocks that are easier to break into components, finding technologies to better clean syngas, and discovering efficiencies that can help make more fuel at a lower cost. Source: See Endnote 28 for this section. The two biggest limitations for cellulosic biofuels are arguably the cost and the challenges associated with transporting and storing massive quantities of cellulosic feedstock. As of late 2008, production cost estimates for cellulosic ethanol were $2.40 per gallon—more than double the costs for corn and sugarcane ethanol.24 Cellulosic refineries also require large amounts of feedstock, estimated at 700 tons per day for a facility producing 10–20 million gallons of fuel per year.25 Producing such large quantities will require advances in harvesting, collection, transporting, and storage to help lower the overall cost.26 The U.S. Departments of Agriculture and Energy hope to lower total feedstock costs, including these factors, from the estimated $60 per ton in 2007 to $47 per ton by 2012.27 A variety of second-generation processing technologies have the potential to improve the www.worldwatch.org efficiency of biofuel processing and make cellulosic ethanol cost-competitive with first-generation biofuels and gasoline. These processes can be divided into two main approaches: the “biochemical platform,” which relies on enzymes or biological processes to break down the feedstocks, and the “thermochemical platform,” which relies on heat, pressure, and chemical catalysts. Both approaches can be used to produce a wide variety of fuels. They also have their advantages and disadvantages with regard to feedstock flexibility, cost, and associated emissions reductions.28 (See Sidebar 3.) As of July 2008—before the recent economic downturn—an estimated 55 cellulosic biorefineries were completed, under construction, or in the planning stages in 31 U.S. states, with a total projected capacity of 630 million gallons per year.29 In April 2009, there were 25 cellulosic ethanol demonstration or pilot Red, White, and Green 19 Benefits of “Advanced” Biofuels plants in operation, although only nine were producing at a significant level.30 There were also two cellulosic diesel plants in operation, one at the pilot level and one at the demonstration level.31 These facilities are embracing a wide diversity of feedstocks, including agricultural residues, wastes, woody biomass, and dedicated energy crops.32 Unlike corn ethanol refineries that are concentrated in the Midwest, cellulosic ethanol refineries are located across the country.33 Federal agencies are providing funding for most of these ventures.34 In January 2009, the USDA approved its first-ever guaranteed loan for a commercial-scale cellulosic ethanol plant—a wood-chip facility in Georgia—under 20 Red, White, and Green the U.S. Farm Bill’s “Biorefinery Assistance Program.”35 In May 2009, President Barack Obama directed the Secretary of Agriculture to increase investments in advanced biofuels production, including refinancing, loan guarantees, and additional funding.36 The DOE is also providing significant funding, including up to $385 million for six cellulosic ethanol plants as part of a goal to make cellulosic ethanol costcompetitive with gasoline by 2012.37 Individual states are funding projects as well.38 However, a recent report from the Sandia National Laboratories concluded that as much as $250 billion in investments is needed to achieve production levels of 60 billion gallons a year.39 w w w. w orldwatch.org Making Biofuels Sustainable www.worldwatch.org most efforts to define “biofuel sustainability” are being pursued at a relatively small scale. So far, only a handful of them address social and economic considerations, such as protecting workers’ rights, contributing to local development, and guaranteeing fair compensation for land use or land transfers.3 Many more efforts, however, incorporate environmental considerations, including lifecycle greenhouse gas emissions and energy balance.4 There is a general consensus that biofuels should produce less greenhouse gas emissions than conventional petroleum fuels and produce more energy than is required for cultivation and processing. Achmad Rabin Taim M any second-generation biofuels show the potential to be more sustainable than conventional biofuels. But there is no guarantee that this will be the case, especially when the fuels are produced at a large scale. As the demand for biofuels increases, some analysts fear that the market will simply adjust, supporting increased production while ignoring the environmental and social costs. Fortunately, many people who work with biofuel supply chains now realize that nearly all stages of the biofuel process—from production to processing to the choice of fuel available—could be improved. These improvements can best happen if producers and policies give preference to biofuels that are produced in an environmentally and socially sustainable manner, that offer the highest lifecycle emissions-reduction values, and that are processed using technologies that deal with wastes responsibly and even utilize these byproducts as energy sources. One way to address the potential consequences of ongoing biofuels development is by developing broadly applicable sustainability standards for the fuels (similar to measures that exist in the forestry and organic food sectors) that go beyond existing quality-control and technical standards.1 Such criteria would enable biofuel producers to engage in thirdparty certification of their practices and products and help end-users determine whether the fuels they use were produced in a sustainable manner. Elements of existing sustainability standards for forestry, agriculture, and energy products are already being applied to biofuels.2 However, An oil palm plantation on former forest land in West Java, Indonesia. Developing widely accepted sustainability criteria for biofuels is difficult due to the range of variables involved and because the environmental effects of biofuels are often highly specific to the crop type, location and climate, or production process. For example, oil palm can Red, White, and Green 21 Making Biofuels Sustainable USDA/NRCS/Gene Alexander have an adverse effect on biodiversity if it is grown on land that is newly converted from primary forest, but it can have a positive effect if it is grown on degraded land.5 Other practices that can determine the degree of environmental impact include the use of fertilizers and pesticides, which affects water quality, soil quality, and greenhouse gas emissions; the use of irrigated water, which affects water supply; the use of crop rotations to preserve soil carbon; and the use of different fuels to power the refining process.6 For some crops, there may be a positive net energy yield only if the benefits from byproducts are included in the analysis, such as the use of processing wastes to generate energy or to serve as an animal feed.7 No-till planting of corn on the contour in a field in northwest Iowa. Sustainability criteria can be applied to biofuel processing as well. For conventional biofuels, improvements in processing include enhanced energy efficiency and a greater reliance on renewable energy as a power source. A 2007 analysis from the Argonne National Laboratory showed that corn ethanol produced in a facility fired by wood chips could achieve emissions reductions of 52 percent compared to gasoline, versus a 3 percent emissions increase if powered by coal.8 Ethanol plants could also burn distiller’s grains, an ethanol byproduct, as a process fuel to lower their emissions (although for now the grains are more 22 Red, White, and Green valuable as livestock feed).9 Some plants are exploring the use of biogas from cattle manure to power the process, which has the added climate benefit of preventing methane, a greenhouse gas more powerful than carbon dioxide, from entering the atmosphere.10 For biodiesel processing, there is interest in using the byproduct glycerin as an energy source.11 Even with first-generation biofuel technologies, it may be possible to significantly reduce the environmental impacts of biofuels simply by using different feedstocks. For example, grain sorghum—a crop that requires low resource inputs, grows on marginal lands, and is highly efficient—can be substituted at corn ethanol refineries.12 For biodiesel, possible substitutes for soybeans include the oilseed plants camelina and jatropha.13 Jatropha requires few water or fertilizer inputs, is able to grow on land unsuitable for food crops, and is inedible, so its expansion would not compete with traditional food production; however, the plant requires special handling and processing because it is toxic to humans.14 Better management practices on farms are also an important component of biofuel sustainability and can be built into sustainability standards and criteria. Climate-friendly choices include avoiding fragile lands and practicing no-till cultivation, a method of sowing crops without disturbing the topsoil. Because no-till cultivation minimizes the number of passes over a field needed to establish and harvest a crop, it requires 50–80 percent less fuel than tillage-based agriculture.15 Notill farming also helps minimize the release of carbon from soils, and the Chicago Carbon Exchange now grants “carbon credits” to U.S. farmers who practice the method continuously for at least five years.16 No-till is currently being used on one-fifth of the nation’s farmland, but only some 20 percent of corn producers have embraced the practice, suggesting more room for adoption.17 Among the most prominent efforts to develop voluntary sustainability criteria for biofuels are those coordinated by the Roundtable on Sustainable Biofuels and a variety of other multi-stakeholder groups.18 (See Table w w w. w orldwatch.org 2.) Mandatory standards are also under development, including requirements under the U.S. Renewable Fuel Standard to consider the climate impacts of indirect land use changes. California recently adopted a regulation that requires the use of lower-carbon-intensity fuels over time and plans to incorporate additional environmental and social standards in the future. (See Sidebar 5 on page 29.) The European Union has attempted to integrate sustainability criteria into national biofuels policy as well. In early 2009, the EU finalized climate regulations that require 10 percent of the region’s transport fuels to come from renewable sources, including biofuels, by 2020.19 Under the directive, biofuels must demonstrate a 35 percent savings in greenhouse gas emissions compared to their fossil fuel counterparts, based on a lifecycle analy- Cyndy Sims Parr Making Biofuels Sustainable A field of ripening sorghum in Arkansas. Table 2. Selected Biofuel Sustainability Initiatives Group Description Roundtable on Sustainable Biofuels (RSB) The most prominent international multi-stakeholder initiative, the RSB has developed draft sustainability principles and criteria for sustainable biofuels production and processing. The guidelines address climate change, human and labor rights, food security, land rights, biodiversity, air, water, soil, and economic and development issues. The group also envisions a certification mechanism or purchasing guidelines to follow the criteria. Roundtable on Sustainable Palm Oil (RSPO) Officially established in 2004 in response to increasing concerns over palm oil plantations, the RSPO brings together industry and organization representatives to work toward a sustainable supply chain for palm oil, a common biodiesel feedstock. The program’s first certified “sustainable” oil was shipped to Europe in 2008. Roundtable on Responsible Soy (RTRS) Initiated in 2004, the RTRS is working to create sustainability criteria and principles for global soybean production that cover a range of environmental and social issues. The group is also working on a corresponding verification program. Council on Sustainable Established in 2007, CSBP is working to develop sustainability criteria for the production Biomass Production (CSBP) of feedstocks for second-generation cellulosic biofuel refineries in North America. Members include government agencies, environmental groups, and biofuel producers. European Committee for Standardization (CEN) Known for creating voluntary European standards on a range of items, the CEN established a technical committee in 2008 to establish sustainability criteria for biomass, including biofuels. Sustainable Biodiesel Alliance (SBA) SBA, a U.S. nonprofit, is striving to create a consensus among stakeholders on a certification program for sustainably produced biodiesel. The alliance’s draft sustainability standards include environmental, economic, and social best practices. Source: See Endnote 18 for this section. www.worldwatch.org Red, White, and Green 23 Making Biofuels Sustainable Sidebar 4. Biomass and Biofuels: Transitioning Transportation Fuels Substituting biofuels for fossil fuels in transportation is usually an assumed part of any energy solution to address climate change. But evidence shows that there might be better alternatives for our transportation needs and that the best use of biomass may be for electricity and heating, not biofuels. Many of the same feedstocks currently used to make biofuels—such as crop and wood residues, trees and grasses, and urban wastes—can also be used to generate electricity and heat. Research indicates that in the long term, using biomass for electricity and heat is likely a more sustainable option than using it to produce biofuels to meet energy and transportation needs because of higher efficiencies, greater emissions reduction potential, and considerably lower costs. Today, biomass is being used to generate electricity at a large scale via two main methods: “combined heat-andpower” (CHP), where exhaust heat from electricity generation is used to provide an additional energy service, and “cofiring,” a process that burns a combination of biomass and coal. CHP operates at efficiencies of between 75 and 90 percent and generates two products: electricity and useful heat. The heat is used either to warm residential and commercial buildings or to fuel industrial processes. Biomass is considered one of the most promising fuels for CHP applications because it is one of the few renewable energy resources that can be transported and stored relatively easily. Biomass-fueled power generation can also be ramped up when needed. Co-firing holds the most potential out of all renewables for reducing a significant amount of emissions in the near term, according to a study by the Oak Ridge and Lawrence Berkeley National Laboratories. While conventional coal plants emit about 1 metric ton of carbon dioxide per megawatt-hour, biomass can substitute for up to 20 percent of the coal in co-firing plants, which leads to linear reductions in carbon dioxide and sulfur dioxide emissions. (Changes in nitrous oxide emissions, another greenhouse gas, are less certain.) Many countries and cities already rely or plan to rely on biomass for electricity and heating. In Sweden, where as much as 22 percent of the electricity supply is generated from biomass, the city of Kalmar plans to replace its fossilfueled electricity and heating infrastructure with biomass CHP, with the goal of phasing out all fossil fuel use by 2030. CHP is also a high priority in Denmark, where traditional biomass accounts for nearly 14 percent of the electricity supply and half of the energy derived from renewable sources. In the United States, in contrast, biomass is the second largest source of renewable electricity after hydropower yet accounted for only 1.3 percent of electricity generation in 2007. In the transportation sector, biofuels are currently the only near-term alternative to fossil fuels, particularly for use in passenger vehicles, and they might have a more prolonged presence in fueling heavy-duty vehicles. Over the long term, however, biomass-fueled electricity could play a more critical transportation role, especially when the electricity is used to power plug-in hybrid-electric and electric vehicles. Electricity is a more versatile form of energy than liquid biofuels, with power providers able to choose from a wide variety of low-carbon energy options, including wind, solar, and biomass power. Electricity could therefore be a more climate-friendly “transport fuel” than biofuels, provided the electricity is generated from renewable sources. Using biomass for electricity and heat in both transport and non-transport applications could significantly lower the costs of reducing emissions. According to one study, using biomass for biofuels would cost up to three times more than using biomass for electricity and heat, for the same amount of reductions. And using biomass for electricity to power vehicles reduces greenhouse gas emissions by 108 percent more on average than if biofuels had been used, while providing 81 percent more mileage. (As with biofuels, the land use efficiency of producing biomass for electricity and heat remains uncertain.) Biofuels have tremendous value as a “transition” fuel as the world moves away from its current reliance on fossil fuels and toward a low-carbon future. There are also many non-fuel options to reduce the environmental impacts of the transport sector, most of which bring additional societal benefits. Advancements in vehicle technology, such as higher fuel efficiency, lighter weight, and electric motors, as well as greater investment in public transit, could reduce fossil fuel demand. And increased use of non-motorized vehicles such as bicycles as well as the adoption of more pedestrianfriendly urban planning could shift dependence away from transport fuels altogether. —Amanda Chiu Source: See Endnote 24 for this section. 24 Red, White, and Green w w w. w orldwatch.org Making Biofuels Sustainable sis.20 The regulations also require that these emissions savings increase over time, rising to 50 percent by 2017.21 Feedstocks cannot be grown on lands that have a high biodiversity value, on lands considered to have a high carbon stock, or on peatlands, and biannual reports must address the sustainability of regional biofuels use, covering both environmental issues such as air, soil, and water protection as well as social issues such as food prices and land rights.22 The EU will also study the effects of indirect land use changes by the end of 2010.23 Many bioenergy analysts argue that if the end goal is sustainability—in particular the www.worldwatch.org mitigation of climate change—then producing liquid biofuels for transportation may not be the most optimal use of the world’s biomass resources. These experts argue that a better, more cost-effective use of energy crops, woody trees, crop residues, and other biomass is for electricity and/or heat production.24 (See Sidebar 4.) Current and expected limitations in ethanol infrastructure and production—such as difficulties transporting ethanol, the lack of pipelines, and problems with biomass collection and storage—may also force the United States to rethink the future of biofuels in its energy mix.25 Red, White, and Green 25 Federal and State Biofuel Policies P olicy choices are instrumental in determining the direction of national, as well as global, biofuels development. The United States has supported ethanol since the late 1970s and currently has an extensive federal mandate and support system for biofuels, particularly corn ethanol. The most important piece of legislation that affects domestic biofuels development is the Renewable Fuel Standard (RFS), promulgated in 2005 but amended under the Energy Independence and Security Act (EISA) of 2007.1 This is supported by a variety of additional federal and state incentives. The revised RFS (known as RFS2) calls for the increased blending of biofuels into conventional motor fuels. Specifically, it mandates the production of 36 billion gallons of biofuels annually by 2022, derived from a mix of both conventional biofuels and second-generation Figure 6. Biofuel Requirements Under the U.S. Renewable Fuel Standard, 2009–22 40 30 Billion Gallons Source: EISA Unspecified Advanced Biofuels Biodiesel Cellulosic Biofuels Unspecified Biofuels/Corn Ethanol 35 25 20 15 10 5 0 2009 2011 26 2013 2015 Red, White, and Green 2017 2019 2021 biofuels.2 Twenty-one billion gallons of this is to come from “advanced biofuels,” with 16 billion gallons of that from cellulosic biofuels.3 (See Figure 6.) Through these targets and associated funding, the RFS2 provides an overall incentive for producing cellulosic and other advanced biofuels. It also charges the U.S. Environmental Protection Agency with assessing cellulosic production targets annually, based on the projected available volume for a given year.4 If the projected volume is less than the minimum level established by the revised RFS2, the EPA must lower the volume requirements for cellulosic biofuels and may decide to reduce the targets for advanced biofuels and total renewable fuel.5 Recent estimates from the Energy Information Administration suggest that the mandate to use 21 billion gallons of advanced biofuels by 2022 will not be met until at least five years later.6 Perhaps more significantly, the revised RFS includes some degree of sustainability criteria, including feedstock restrictions that help protect sensitive lands such as old-growth forests.7 In an effort to address climate change concerns, the RFS2 requires that biofuels produced under the mandate meet specified greenhouse gas reduction targets.8 To qualify for the RFS, corn ethanol must achieve at least a 20 percent reduction in lifecycle emissions compared to gasoline, and biodiesel and advanced biofuels must achieve a 50 percent reduction compared to the petroleum fuels they would replace. For cellulosic biofuels, the requirement is at least 60 percent lower emissions. The EPA has the authority to lower these reduction requirements for any of the w w w. w orldwatch.org Federal and State Biofuel Policies www.worldwatch.org gress on the environmental effects of the federal biofuels measures, including effects on air, water, and soil quality.16 The EPA Administrator must also undertake periodic reviews on existing technologies and the feasibility of meeting the targets established by the RFS2. To report on these wide-ranging effects, the EPA will need to establish measurable assessment criteria, essentially creating a working definition of sustainable biofuels production. petrr advanced biofuels by up to 10 percent, which it proposed to do for advanced biofuels in its draft RFS2 implementation rules released in May 2009.9 These greenhouse gas reductions must be calculated on the basis of a lifecycle analysis, including feedstock production, refining, and fuel use.10 The legislation also requires the EPA to consider indirect emissions, such as those from land use changes.11 Numerous scientific studies and a recent assessment from the state of California show that including land use changes could substantially alter the greenhouse gas profiles of many biofuels.12 In early May 2009, the EPA outlined methods for calculating these effects in draft rules and began seeking scientific peer reviews as well as public comments.13 Although it is unclear which methodology will ultimately be used to determine greenhouse gas reductions for different biofuels, one of the areas that is likely to draw controversy is the timeframe over which reductions are considered. According to EPA’s calculations, using a 30-year timeframe would mean that corn ethanol produced using natural gas would emit 5 percent more greenhouse gas emissions than petroleum fuels. But that same ethanol considered over a 100-year timeframe would put the emission changes at a 16 percent decrease.14 Using the longer 100-year time period minimizes the effect of land use changes such as deforestation because most carbon is emitted by land clearing. Emissions are gradually reduced over time, and over time land cleared for biofuel production can actually make positive contributions to carbon sequestration, depending on the crop. The differences between the two periods are explained by the estimated greenhouse gas savings at the tailpipe when petroleum is displaced: a longer time period means more gallons are used and more carbon dioxide is avoided. Critics of the longer timeframe argue that greenhouse gas reductions are needed as soon as possible, and not several decades in the future.15 The revised RFS also requires the EPA Administrator and the Secretaries of Agriculture and Energy to report periodically to Con- An American SUV marked for use of E85 ethanol fuel. It is important to note, however, that the RFS2 greenhouse gas reduction requirements apply to new ethanol plants, and not to facilities that were online before the law went into effect.17 Because the capacity of current U.S. ethanol plants is estimated at 12 billion gallons annually, it appears that the RFS2 target of 15 billion gallons of renewable fuels by 2015 will be met largely with corn ethanol produced in “grandfathered” facilities, without any required emissions reductions.18 The EPA proposed a few measures that would tighten the loophole for existing plants in May 2009, although it remains to be seen whether any of these will take effect.19 Moreover, although the revised RFS sets minimum production requirements for renewable and advanced biofuels, these are not caps on production. Therefore, if corn ethanol continues to be profitable, it will be produced Red, White, and Green 27 Federal and State Biofuel Policies Lawrence Berkeley National Laboratory above and beyond the 15-billion-gallon (and 20 percent greenhouse gas reduction) cap for 2015. Even though this additional production would not count toward the mandate, blenders would still profit from the tax credit they receive under current law. A Lawrence Berkeley National Laboratory researcher investigates the lignocellulose deconstruction of switchgrass. The so-called “blender’s tax credit” (or production tax credit) is the most important federal support for ethanol after the RFS. Known technically as the volumetric ethanol excise tax credit (VEETC) and currently effective through 2010, the credit provides a tax break to registered blenders for every gallon of pure ethanol blended into gasoline, in an effort to keep ethanol priced competitively with gasoline.20 The VEETC was previously set at 51 cents per gallon but was lowered to 45 cents in the 2008 Farm Bill.21 A related tax credit is the small ethanol producer credit of 10 cents per gallon for facilities that produce less than 60 million gallons per year.22 Another available credit—the cellulosic biofuel tax credit—allows producers to claim up to $1.01 per gallon of qualified ethanol through 2012.23 In addition to these tax credits, the U.S. biofuel industry benefits from a 54-cent per gallon tariff on imported ethanol that is currently in place through 2010, as well as an “ad 28 Red, White, and Green valorem” tariff of 2.5 percent on imported ethanol.24 The tariff effectively reduces the amount of foreign ethanol that is imported into the country by raising the price of these fuels (a limited amount of tariff-exempt fuel is allowed in through the Caribbean Basin Initiative).25 In early 2009, several members of Congress introduced a bill to lower the tariff, which could help the United States shift to more sustainable sources of biofuels from countries such as Brazil.26 Biodiesel receives similar incentives, including the biodiesel tax credit which is now set at $1 a gallon through 2009.27 There is also a small agri-biodiesel producer credit of 10 cents per gallon.28 However, in March 2009 the European Union imposed a new tax on biodiesel imports, creating a disincentive to U.S. production.29 (The “splash-and-dash” loophole, by which U.S. blenders received the tax credit for blending imported biodiesel with even tiny amounts of petroleum diesel and then re-exporting it, was ended in 2008.30) In addition to biofuels mandates and tax credits, federal policy provides support for biofuels research, development, and infrastructure through direct funding grants and loan guarantees. The American Recovery and Reinvestment Act of 2009, for example, authorizes loan guarantees for advanced biofuels research and commercialization.31 In late 2008, the Department of Energy announced grants of more than $4 million to six universities for advanced ethanol research.32 The previous year, the DOE announced funding for six ethanol companies of up to $385 million to bring cellulosic ethanol to commercial production.33 Other federal funding supports research into enzymes, improvements to biofuel refining, and improvements to gasification.34 These federal biofuel incentives are supplemented by state blending mandates and other incentives. Florida, for example, adopted a mandate in 2008 that requires all gasoline sold in the state to contain 9–10 percent ethanol by the end of 2010.35 California’s Low Carbon Fuel Standard, established in 2007, calls for the introduction of low-carbon w w w. w orldwatch.org Federal and State Biofuel Policies Sidebar 5. California’s Low Carbon Fuel Standard: A Model for National Policy? Proposed in 2007 and adopted in April 2009, California’s Low Carbon Fuel Standard (LCFS) is part of a broader effort to reduce the state’s greenhouse gas emissions to 1990 levels by 2020, based on the principle that a balanced mix of strategies is the best way to cut emissions by approximately 30 percent. In addition to the LCFS, other proposed greenhouse gas emission reduction programs include a cap-and-trade program linked with the Western Climate Initiative, expanding energy efficiency programs, and achieving a 33 percent renewable energy mix. California’s LCFS calls for staged reductions in the carbon intensity of transportation fuels of 10 percent by 2020, with separate yearly requirements for gasoline and diesel. The standard also covers alternative vehicles such as electric vehicles and those running on compressed natural gas. The measure is projected to curb some 16–23 million tons of carbon dioxide equivalent annually by 2020 and will require reductions starting in 2012. The LCFS requires analysis of the full lifecycle impacts of fuels, including direct effects such as farm inputs, feedstock transportation, refining and production, and combustion in vehicles. The analysis will also eventually incorporate indirect effects such as land use changes, which can be a significant source of greenhouse gas emissions. The California Air Resources Board (ARB) staff will further evaluate the effects of land use changes by 2011 so these can be incorporated into the carbon measurements under the rule, although industry proponents have vowed to protest the results, and the effects of the measure on the ethanol industry are unknown. So far, the regulation covers only one sustainability factor: land use change. However, ARB plans to develop and propose additional sustainability criteria—including environmental and socioeconomic variables—and argues that international cooperation and enforceable certification standards are essential. ARB also hopes the new LCFS will serve as a model for other jurisdictions, including 11 states that are considering similar standards. Source: See Endnote 36 for this section. fuels—including ethanol and biodiesel—into the state fuel supply.36 (See Sidebar 5.) And Iowa has adopted a state-level Renewable Fuel Standard that requires 25 percent renewable fuels in the state by 2020, including ethanol and biodiesel.37 Meanwhile, eight Midwestern states have adopted a regional biofuels promotion plan that spurs local production, increases the number of high-ethanol-blend fueling stations, and requires at least 50 percent of all transportation fuels consumed in region to be regionally produced.38 Procurement preferences and purchase www.worldwatch.org mandates are also a form of U.S. support to biofuels. Under the EISA, for example, federal fleets are required to increase their consumption of alternative fuels by 2015.39 Many cities and states also require their fleets or transport services to use particular kinds of fuels: so far, 11 states have such mandates for ethanol, according to the Renewable Fuels Association.40 Together, state and federal mandates and incentives ensure that U.S. demand for biofuels will remain high—regardless of price and consumer choice. Red, White, and Green 29 The Road Ahead: Policy Options for Sustainable U.S. Biofuels M ounting evidence of the pitfalls of first-generation biofuels, growing pressure to address climate change, and the global economic crisis are putting the United States at a crossroads in energy policy. The country now faces a choice: continue with the current policies and hope for the best, or take the opportunity to learn from past mistakes and rethink the role of biofuels for the future. If the wrong decisions are made today, the nation—and the world—could miss out on important opportunities for change for years to come. The big challenge for the United States now is to accelerate the transition to second-generation biofuels. But can the country reach its goal of 36 billion gallons of biofuels by 2022, while also ensuring environmentally and socially sustainable growth? Three broad efforts in U.S. policy would make biofuel production more sustainable and ensure that the use of biofuels contributes to the global effort to reduce greenhouse gas emissions without sacrificing environmental or social standards. These are: (1) spur the rapid development of cellulosic and advanced biofuels; (2) develop sustainability standards; and (3) create a holistic energy policy across all transportation-related sectors. 1. Spur the rapid development of cellulosic and other advanced biofuels that significantly reduce greenhouse gas emissions, using existing economic instruments and other tools. Even though the Energy Independence and 30 Red, White, and Green Security Act (EISA) provides incentives for cellulosic and other advanced biofuels, there is no guarantee that these technologies will become attractive investments at a time when current, mature technologies are struggling. Best-case scenarios aim for broadly available secondgeneration biofuels within 10 to 15 years, but in the interim U.S. biofuel policies continue to provide incentives for corn ethanol, even though it is plagued with environmental, social, and economic problems. This continued support makes it difficult to jumpstart advanced technology solutions and diversify the U.S. fuel supply, and should be phased out systematically to free up support for second-generation fuels and processes. Announcements made in the first half of 2009 about federal funding opportunities for advanced biofuels are a muchneeded step in the right direction but will not in themselves solve the fundamental problems. Experts have suggested a range of solutions to bring advanced biofuels to market sooner, including rethinking the revised RFS mandate levels and requirements to avoid supporting increased corn ethanol. Another proposal is to tie existing support, such as tax credits for biofuels, to the overall sustainability of a fuel.1 For example, support could be provided only for biofuels with lifecycle greenhouse gas emissions reductions of at least 50 percent relative to petroleum fuels, with additional incentives provided for higher emission reductions. A related proposal that would also help moderate food prices is to tie the tax credit to the price of corn, lowering it to zero w w w. w orldwatch.org The Road Ahead: Policy Options for Sustainable U.S. Biofuels when corn prices reach a certain level.2 This may help keep food and grain prices in check by moderating the demand for corn ethanol when prices are high but providing incentives when prices are low. Exemptions from other taxes could be made contingent on the use of cellulosic or other advanced biofuels that meet goals for reducing greenhouse gas emissions. For instance, the Massachusetts Clean Energy Biofuels Act, signed in July 2008, exempts cellulosic ethanol from the state’s gasoline tax if it achieves a 60percent reduction in greenhouse gas emissions relative to gasoline.3 The same could be done on the federal level. Looking beyond the U.S. production base, some observers have recommended eliminating or suspending the ethanol import tariff as a way to moderate pressure on domestic land resources and ethanol prices and spur the production and use of non-corn ethanol.4 There is evidence, for example, that expanding the U.S. ethanol supply to include more sugarcane ethanol imports from Brazil could reduce pressure on U.S. cropland, reduce the costs of corn, and provide greater climate benefits.5 Recommendations for spurring rapid development of cellulosic and advanced biofuels: • Use existing and new economic instruments, such as the blending tax credits, to spur development of advanced biofuels, and phase out incentives for corn ethanol. • Base the tax credits for ethanol and biodiesel on performance, with fuels that achieve deeper greenhouse gas emissions reductions eligible for greater support. Or, set a floor for government support that requires lifecycle reductions of at least 50 percent or better. • Revisit the Renewable Fuel Standard mandate to ensure that it will promote second-generation biofuels instead of propping up first-generation biofuels. • Lower or eliminate the ethanol import tariff for fuels that meet sustainability criteria. www.worldwatch.org 2. Develop sustainability standards and make government support conditional on meeting these standards. While the revised Renewable Fuel Standard does not directly acknowledge the need for sustainability standards, it requires minimum greenhouse gas emissions reductions from biofuels based on a complete lifecycle analysis, including indirect effects. The mandate also requires that biofuel production not harm the environment or natural resources. The EPA released its proposed rules for implementing the revised RFS in early May 2009, and final rules were not expected before the end of the year at the earliest. Although the agency has outlined ways to include land use effects in greenhouse gas estimates, some biofuels proponents have made it clear that they are opposed to including these measures, in part because of concerns about whether indirect land use impacts should be viewed globally, and in part because of how other pressures on land—rising populations, for example—are accounted for in calculations. The EPA has clarified that the final rules must be transparent, based on the best available science, and include a clearly articulated methodology. They should also be flexible enough to accommodate future updates as scientific understanding of indirect effects improves. Several federal agencies, including the U.S. Departments of Energy and Agriculture, are contemplating the role of sustainability standards for biofuels under the auspices of the Biomass Research and Development Board. In October 2008, the Board released a National Biofuels Action Plan designed to promote interagency coordination and realize significant second-generation biofuels production within 15 years.6 According to the plan, the Board seeks to develop sustainability criteria, benchmarks, and indicators that will help determine best practices in agriculture and land use practices, efficient production, and economic viability, among other areas. However, the plan does not envision mandatory requirements or a certification program. Establishing these two elements would help strengthen the system and guarantee that bioRed, White, and Green 31 The Road Ahead: Policy Options for Sustainable U.S. Biofuels fuels meet minimum criteria. The California Low Carbon Fuel Standard plans to address sustainability issues stemming from land use and may offer a model for lowering greenhouse gas emissions over time. One specific policy option is to encourage biofuel producers and processors to adopt sustainable production and processing practices. Compliance with the sodbuster and swampbuster programs, which are designed to prevent grassland and wetland conversion, is a requirement for farmers to qualify for direct payments under USDA regulations.7 Compliance with these two programs and with new ones developed specifically for feedstock crops could be recognized in this context, with individual producers rewarded for their participation or excluded from incentives if they do not participate. Including biofuels in the programs developed under the recently established Office of Ecosystem Services and Markets could also help encourage more sustainable production.8 Sustainable production could also be recognized at the refinery level or even at the retail level, with the feedstocks identified in terms of percentage volume or a lifecycle greenhouse gas estimate, giving consumers a role in demanding cleaner and greener fuels. Recommendations for developing sustainability standards for biofuels: • Adopt a federal low-carbon fuel standard that reduces the carbon content of transportation fuels over time. • Work with ongoing multi-stakeholder processes to establish internationally accepted sustainability standards and certification mechanisms for biofuels. • Create incentives for sustainable production of biofuel feedstocks in current and future farm support and other programs by making government support conditional on performance and compliance with sustainability standards. • Acknowledge production of sustainable biofuels through labeling at the retail level. 32 Red, White, and Green 3. Create a holistic energy policy across all transportation-related sectors. Biofuel production affects and is affected by a wide range of policies, including those related to agriculture, energy, the environment, and climate change, as well as those promoting national security, rural development, and job creation. While the EISA touches on many diverse policy areas, it does not deal with the relative importance of biofuels in a renewable energy portfolio, their long-term significance in U.S. energy use, or their role in a new energy economy. The new Biofuels Interagency Working Group, announced in May 2009, is tasked with addressing the range of policy issues and obstacles related directly to biofuels, such as production, supply, flex-fuel vehicles, and sustainability. But this narrow approach fails to situate biofuels as part of a larger transportation and energy system and may allow important opportunities to remain unexplored. In the transport sector, liquid biofuels can serve as a temporary bridge to a more efficient system based on electric vehicles and powered by renewable energy. Plug-in hybrid-electric vehicles (PHEV) emit 30–60 percent fewer emissions per mile compared to similar conventional vehicles, and pure electric vehicles are expected to perform even better due to highly efficient motors.9 An electric transport system is not possible with the current electricity transmission system and requires a transition to a more flexible, responsive, and smarter grid. Complementary policies include adopting ambitious national renewable energy targets and advanced feed-in laws that make it easier for small, clean energy producers to sell their surplus electricity into the grid. By transitioning to electricity as an energy source for transportation, transport fuels would be relying on a far more diverse energy market. The amount of renewable energy in the world, including solar, wind, geothermal, biomass, hydropower, and ocean power, is six times greater than the world’s energy use, and every region of the world has at least one, if not more, of these resources.10 And, as discussed in Sidebar 4 (page 24), using biomass w w w. w orldwatch.org The Road Ahead: Policy Options for Sustainable U.S. Biofuels iofoto/stockxpert to provide electricity and heat rather than liquid transportation fuels offers clearer environmental benefits. Improvements in vehicle efficiency are needed as well to reduce demand for fuels, but any fuels that are used should be as sustainable as possible. The country should also focus on improving public transit options and other transportation alternatives to further minimize fuel demand. Recommendations for ensuring policy coherence across all transportation-related sectors: • Create a broad transportation policy that looks beyond biofuels to more-efficient vehicles, electric/plug-in vehicles, better urban design, and investments in good public transportation systems and rail. • Increase investment in electric vehicle technologies, including a national smart-grid to encourage vehicle-to-grid net metering and development of improved batteries. • Reconsider the best use of biofuels and biomass, looking specifically at lifecycle greenhouse gas studies on biomass used for electricity and heat. • Adopt ambitious national renewable energy targets and advanced feed-in laws that enable small producers to sell their surplus electricity into the grid at a fair price and set a carbon performance standard for electricity. The costs of expanding U.S. corn ethanol production have been felt in food and fuel prices, and prospects are not good for suffi- www.worldwatch.org Aerial view of sugarcane fields on Maui, Hawaii. cient sustained private investment in moresustainable alternatives in the absence of additional incentives. Given the country’s current policy and economic structures, there is a large probability that corn ethanol will continue to dominate domestic biofuel production, even though other biofuels might deliver much greater climate, environmental, and social benefits. The United States has a real opportunity to adjust course and ensure that clean and sustainable biofuels, rather than just more biofuels, are a priority. The experience of recent years has demonstrated the dangers of pushing blindly for increased biofuel production without considering the unintended consequences. The challenge for a red, white, and green path is to ensure that second-generation biofuels are developed quickly while avoiding the mistakes of the past. Red, White, and Green 33 Endnotes The Promise of Biofuels 1. Oil use from U.S. Energy Information Administration (EIA), “Table 5.13c Estimated Petroleum Consumption: Transportation Sector, 1949–2007,” in Annual Energy Review (Washington, DC: 2009); vehicles data from U.S. Government Accountability Office, DOE Lacks a Strategic Approach to Coordinate Increasing Production and Infrastructure Development and Vehicle Needs (Washington, DC: June 2007), p. 32. 2. Elisabeth Bumiller and Adam Nagourney, “Bush: ‘America Is Addicted to Oil,’” International Herald Tribune, 1 February 2006. 3. EIA, Emissions of Greenhouse Gases Report (Washington, DC: 3 December 2008). 4. For more information, see U.S. Department of Energy, Energy Efficiency and Renewable Energy, “Alternative and Advanced Fuels,” www.afdc.energy.gov/afdc/ fuels/, viewed 6 March 2009. 5. Joe Monfort, “Despite Obstacles, Biofuels Continue Surge,” Vital Signs Online (Washington, DC: Worldwatch Institute, April 2008); F.O. Licht, World Ethanol and Biofuels Report, 23 October 2008. Conversion from liters to gallons from Oak Ridge National Laboratory (ORNL), “Bioenergy Ethanol and Biodiesel Conversion Factors,” http://bioenergy.ornl.gov/papers/misc/energy_conv.html, viewed 17 February 2009. 6. Table 1 from F.O. Licht, op. cit. note 5, and from F.O. Licht, World Ethanol and Biofuels Report, 26 March 2009. 7. Worldwatch calculations based on F.O. Licht, World Ethanol and Biofuels Report, 10 June 2008, on Monfort, op. cit. note 5, and on F.O. Licht, op. cit. note 5. 8. Peter du Pont, ECO-Asia Clean Development and Climate Program, “Biofuels in Asia: An Analysis of Sustainability Options,” presentation at the Brookings Institution, Washington, DC, 10 April 2009. 9. Monfort, op. cit. note 5; F.O. Licht, op. cit. note 5; F.O. Licht, op. cit. note 6. Conversion factors from ORNL, op. cit. note 5. 10. F.O. Licht, World Ethanol and Biofuels Report, 23 September 2008; R. W. Howarth et al., “Rapid Assessment on Biofuels and Environment: Overview and Key Findings,” in R.W. Howarth and S. Bringezu, eds., Biofuels: Environmental Consequences and Interactions with Changing Land Use, Proceedings of the Scientific Com34 Red, White, and Green mittee on Problems of the Environment (SCOPE) International Biofuels Project Rapid Assessment, 22–25 September 2008, Gummersbach, Germany (Ithaca, NY: Cornell University, 2009), p. 2. 11. Asia-Pacific Economic Cooperation, “APEC Biofuels Activities by Member Economy,” www.biofuels.apec.org/ member_activities.html, viewed 6 March 2009. 12. See, for example, Congressional Budget Office (CBO), The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions (Washington, DC: April 2009). 13. Joseph Fargione et al., “Land Clearing and the Biofuel Carbon Debt,” Science, 29 February 2008, pp. 1235–38; Timothy Searchinger et al., “Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land Use Change,” Science, 29 February 2008, pp. 1238–40. 14. H.R. 6: Energy Independence and Security Act of 2007, 19 December 2007, available at http://frwebgate.access .gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills& docid=f:h6enr.txt.pdf. 15. Simla Tokgoz et al., Emerging Biofuels: Outlook of Effects on U.S. Grain, Oilseed, and Livestock Markets (Ames, IA: Center for Agricultural and Rural Development, Iowa State University, July 2007). Biofuels in the United States Today 1. U.S. Government Accountability Office, DOE Lacks a Strategic Approach to Coordinate Increasing Production and Infrastructure Development and Vehicle Needs (Washington, DC: June 2007), p. 10. 2. Renewable Fuels Association (RFA), “Historic U.S. Fuel Ethanol Production,” www.ethanolrfa.org/industry/ statistics/#A, viewed 17 February 2009. 3. Ethanol data for 2008 from F.O. Licht, World Ethanol and Biofuels Report, 23 October 2008. Figure 1 from the following sources: ethanol data for 1990–2007 from RFA, “Historic Fuel Ethanol Production,” op. cit. note 2; ethanol data for 2008 from F.O. Licht, op. cit. this note, p. 72; biodiesel data for 1990–2007 from National Biodiesel Board (NBB), “Estimated US Biodiesel Production by Fiscal Year,” www.biodiesel.org/pdf_files/fuelfactsheets/ Production_Graph_Slide.pdf, viewed 17 February 2009; biodiesel data for 2008 from F.O. Licht, World Ethanol and Biofuels Report, 26 March 2009. w w w. w orldwatch.org Endnotes 4. Calculation based on U.S. Energy Information Administration (EIA), “Table 11: Liquid Fuels Supply and Disposition,” in Annual Energy Outlook 2009 (Washington, DC: March 2009) and on EIA, “Errata for Biofuels in the U.S. Transportation Sector as of 10/15/07,” www.eia .doe.gov/oiaf/analysispaper/errata_biofuels.html. 5. U.S. Federal Trade Commission, 2008 Report on Ethanol Market Concentration, available at www.ftc.gov/os/ 2008/11/081117ethanolreport.pdf. 6. Ibid. 7. RFA, “Biorefinery Locations,” www.ethanolrfa.org/ industry/locations, updated 5 March 2009. 8. U.S. Department of Agriculture (USDA), National Agricultural Statistics Service (NASS), “Prospective Plantings” (Washington, DC: Agricultural Statistic Board, 31 March 2009), pp. 1, 27. 9. Figure of 4.2 billion bushels from Christopher Doering, “U.S. Corn for Ethanol to Rise, Growth to Slow: USDA,” Reuters, 13 February 2009. Figure 2 from USDA, Economic Research Service (ERS), “Supply and Use: Corn,” in Feed Grains Database, www.ers.usda.gov/Data/ feedgrains, updated 1 December 2008. 10. EIA, Annual Energy Outlook 2008 (Washington, DC: June 2008); EIA, Table A2 in Annual Energy Outlook 2009 Early Release (Washington, DC: December 2008). EIA’s projections assume that the Renewable Fuel Standard enacted in the Energy Independence Security Act of 2007 will be extended indefinitely. 11. NBB, “Commercial Biodiesel Production Plants,” www.biodiesel.org/buyingbiodiesel/producers_marketers/ Producers%20Map-Existing.pdf, updated 29 September 2008. 12. Ibid. 13. F.O. Licht, 26 March 2009, op. cit. note 3. 14. NBB, “Biodiesel Production Plants Under Construction or Expansion (September 29, 2008),” at www.bio diesel.org/buyingbiodiesel/producers_marketers/Produc ers%20Map-Construction.pdf. 15. Sean Hargreaves, “Calming Ethanol-Crazed Corn Prices,” CNN Money, 30 January 2007; Peter Robison, “Ethanol’s Boom Holds Hidden Costs: Higher Food Prices,” International Herald Tribune, 12 February 2007; Robert Siegel, “High Corn Prices Cast Shadow Over Ethanol Plants,” All Things Considered (National Public Radio), 15 July 2008; “Ethanol to Bolster US Corn Price, Plantings–Report,” Reuters, 6 March 2009. Figure 3 from the following sources: data for 2000–07 from USDA, NASS database, www.nass.usda.gov, updated 30 December 2008; data for 2008 from USDA Economics, Statistics and Market Information System (ESMIS), http://usda .mannlib.cornell.edu/usda/current/AgriPric/AgriPric-12 -30-2008.pdf. 16. Congressional Budget Office (CBO), The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions (Washington, DC: April 2009), p. 7. 17. Richard Stillman, Mildred Haley, and Ken Mathews “Grain Prices Impact Entire Livestock Production Cycle,” Amber Waves, March 2009. www.worldwatch.org 18. CBO, op. cit. 16, p. 6. 19. Ibid., pp. 11–12. 20. Kenneth Musante, “Oil Slides to Three-week Low,” CNNMoney.com, 10 February 2009. 21. Ibid.; Clifford Krauss, “Ethanol, Just Recently a Savior, Is Struggling,” New York Times, 11 February 2009. 22. Doering, op. cit. note 9; Russell Gold and Ana Campoy, “Oil Industry Braces for Drop in U.S. Thirst for Gasoline,” Wall Street Journal, 13 April 2009. 23. Don Hofstrand, “Profitability Prospects for the Corn Ethanol Industry,” Renewable Energy Newsletter (Agricultural Marketing Resource Center), January 2009; Kate Galbraith, “Economy Shifts, and the Ethanol Industry Reels,” New York Times, 4 November 2008. Figure 4 from the following source: Robert Sharp, Platts, e-mails to Amanda Chiu, Worldwatch Institute, 28 January 2009 and 15 April 2009. 24. Doering, op. cit. note 9; Jennifer Kho, “U.S. Ethanol Industry Eyes Valero’s Bid for VeraSun,” RenewableEnergy World.com, 24 February 2009. 25. Kho, op. cit. note 24; Jessica Resnick-Ault, “Aventine Bankruptcy Unlikely to Offset Ethanol Oversupply,” Dow Jones Newswires, 8 April 2009. 26. Kho, op. cit. note 24; Krauss, op. cit. note 21; “Pacific Ethanol Suspends Plants In Idaho, California,” Reuters, 2 March 2009. 27. Kho, op. cit. note 24. 28. Based on interviews with Iowa State professors and extension agents conducted by Raya Widenoja, Worldwatch Institute, summer and fall 2007. 29. Estimate of 34 percent from John Farrell, New Rules Project, Institute for Local Self-Reliance, “Ownership & Scale of Renewable Energy,” PowerPoint presentation at Local Energy Initiatives Forum, Cloquet, MN, 13 September 2007; RFA, op. cit. note 7; no more than 21 percent from U.S. Environmental Protection Agency (EPA), “Regulation of Fuels and Fuel Additives: Changes to Renewable Fuel Standard Program,” pre-published draft implementation rules (Washington, DC: 5 May 2009), p. 191. 30. Ben Lefebvre and William Lemos, “Outlook ’09: US Biofuels Industry Expected to Consolidate,” ICIS.Com News, 31 December 2008; Joshua Boak, “Independent Ethanol Producers Face a Tough Future,” Los Angeles Times, 10 April 2009. 31. Farrell, op. cit. note 29. 32. David Morris, Energizing Rural America: Local Ownership of Renewable Energy Production Is the Key (Washington, DC: Center for American Progress, January 2007). 33. David Swenson, “Economic Impact of Locally Owned Biofuels Facilities,” Renewable Energy Newsletter (Agricultural Marketing Resource Center), January 2009. 34. American Coalition for Ethanol, “Ethanol 101: Benefits of Ethanol,” www.ethanol.org/index.php?id=34& parentid=8, viewed 9 March 2009; David Swenson, Department of Economics, Iowa State University ExtenRed, White, and Green 35 Endnotes sion, “Determining Biofuels Economic Impacts Considering Local Investment Levels,” PowerPoint presentation, available at www.leopold.iastate.edu/research/marketing_files/workshop06/presentations/bwg2.pdf; Sarah A. Low and Andrew M. Isserman, “Chapter 5: Ethanol and the Local Economy,” in Corn-Based Ethanol in Illinois and the U.S.: A Report from the Department of Agricultural and Consumer Economics, University of Illinois (UrbanaChampaign, IL: November 2007). 35. See, for example, the discussion of corn prices and livestock production in Robert Wisener, “Impact of Ethanol on the Livestock and Poultry Industry,” Renewable Energy Newsletter (Agricultural Marketing Resource Center), October 2008. 36. U.S. House of Representatives, Appropriations Committee Subcommittee on Energy and Water, Hearing on Gas Prices and Vehicle Technology, “Testimony of Bob Dinneen, President & CEO, Renewable Fuels Association,” 14 February 2008. 37. John M. Urbanchuk, Economic Contribution of the Biodiesel Industry (Wayne, PA: LECG, November 2007); 2008 numbers by Manning Feraci, NBB, as reported in “Biodiesel Industry Stands Ready to Meet 2009 Goals,” Refrigerated Transporter, 12 January 2009. 38. Urbanchuk, op. cit. note 37. 39. Global Insight, U.S. Metro Economies, Current and Potential Jobs in the U.S. Economy, prepared for the U.S. Conference of Mayors and the Mayors Climate Protection Center (Lexington, MA: October 2008). 40. Robert Pollin et al., Green Recovery: A Program to Create Good Jobs and Start Building a Low-Carbon Economy (Amherst, MA: Center for American Progress and Political Economy Research Institute of the University of Massachusetts-Amherst, September 2008). 41. U.S. Department of Energy, Office of Science, “Cellulosic Ethanol: Benefits and Challenges,” genomicsgtl .energy.gov/biofuels/benefits.shtml, viewed 9 March 2009. 42. Bio Economic Research Associates, U.S. Economic Impact of Advanced Biofuels Production: Perspectives to 2030 (Cambridge, MA: February 2009). 43. Doug Koplow, A Boon to Bad Biofuels: Federal Tax Credits and Mandates Underwrite Environmental Damage at Taxpayer Expense (Washington, DC: Friends of the Earth and Earth Track, April 2009), p. 26. 44. Mark Clayton, “The ‘Holy Grail’ of Biofuels Now in Sight,” Christian Science Monitor, 13 February 2009. 45. Ibid. 46. Ibid. 47. F.O. Licht, “U.S. Ethanol Industry at a Crossroads,” World Ethanol and Biofuels Report, 2 March 2009. 48. Ben Block, “United States Considers Ethanol Blend Increase,” Eye on Earth (Worldwatch Institute), 13 February 2009. 36 “Ethanol Producers Press for Higher Limits,” Washington Post, 6 March 2009; Block, op. cit. note 48; Tina Seeley, “Agriculture Secretary in Talks to Raise Ethanol Blend,” Bloomberg, 6 February 2009. Climate and Environmental Impacts of Current Biofuels 1. Worldwatch Institute, Biofuels for Transport: Global Potential and Implications for Sustainable Energy Agriculture (London: Earthscan, 2006). 2. Ibid. 3. Ibid., p. 162. 4. Ibid.; Suani Coelho et al., “Brazilian Sugarcane Ethanol: Lessons Learned,” Energy for Sustainable Development, June 2006. 5. Worldwatch Institute, op. cit. note 1, pp. 183–88. 6. Figure 5 from the following sources: Estimate of 12 percent from Jason Hill et al., “Environmental, Economic, and Energetic Costs and Benefits of Biodiesel and Ethanol Biofuels,” Proceedings of the National Academy of Sciences, 25 July 2006; 18 percent from Alexander E. Farrell et al., “Ethanol Can Contribute to Energy and Environmental Goals,” Science, 27 January 2006, pp. 506–08, corrected in Science, 23 June 2006, p. 1748 (The January 2006 estimate of 13.8 percent was updated to 18 percent in June 2006 due to new information about emissions from limestone and nitrogen applications.); U.S. Environmental Protection Agency (EPA), “Greenhouse Gas Impacts of Expanded Renewable and Alternative Fuels Use,” fact sheet (Washington, DC: April 2007). See also Michael Wang, May Wu, and Hong Huo, “Life-cycle Energy and Greenhouse Gas Emission Impacts of Different Corn Ethanol Plant Types,” Environmental Research Letters, April–June 2007, p. 12, and Emanuela Menichetti and Martina Otto, “Energy Balance & Greenhouse Gas Emissions of Biofuels from a Life Cycle Perspective,” in R.W. Howarth and S. Bringezu, eds., Biofuels: Environmental Consequences and Interactions with Changing Land Use, Proceedings of the Scientific Committee on Problems of the Environment (SCOPE) International Biofuels Project Rapid Assessment, 22–25 September 2008, Gummersbach, Germany (Ithaca, NY: Cornell University, 2009), pp. 81–109. 7. Congressional Budget Office (CBO), The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions (Washington, DC: April 2009), p. 13. 8. Farrell et al., op. cit. note 6; Wang, Wu, and Huo, op. cit. note 6. 9. Joseph Fargione et al., “Land Clearing and the Biofuel Carbon Debt,” Science, 29 February 2008, pp. 1235–38; Timothy Searchinger et al., “Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land Use Change,” Science, 29 February 2008, pp. 1238–40. 10. Hill et al., op. cit. note 6. 49. Krauss, op. cit. note 21. 11. EPA, op. cit. note 6. 50. Clifford Krauss, “Bigger Share of Ethanol Is Sought in Gasoline,” New York Times, 6 March 2009; Steven Mufson, 12. R.W. Howarth et al., “Rapid Assessment on Biofuels and Environment: Overview and Key Findings” and N.H. Red, White, and Green w w w. w orldwatch.org Endnotes Ravindranath et al., “Greenhouse Gas Implications of Land Use and Land Conversion to Biofuel Crops,” in R.W. Howarth and S. Bringezu, eds., op. cit. note 6, pp. 3–4 and pp. 111–25. 13. Finn Danielsen et al., “Biofuel Plantations on Forested Lands: Double Jeopardy for Biodiversity and Climate,” Conservation Biology, April 2009, pp. 348–58. 14. Ibid. 15. Ravindranath et al., op. cit. note 12. 16. Ibid. 17. Farrell et al., op. cit. note 6. 18. Wang, Wu, and Huo, op. cit. note 6, p. 5; EPA, “Chapter 6. Agriculture,” in U.S. Greenhouse Gas Inventory Reports: Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990–2006 (Washington, DC: April 2008). 19. Howarth et al., op. cit. note 12, pp. 3–4. 20. Mike Duffy, “Where Will the Corn Come From?” Ag Decision Maker (Iowa State University Extension), November 2006; Paul C. Westcott, “U.S. Ethanol Expansion Driving Changes Throughout the Agricultural Sector,” Amber Waves, September 2007, pp. 13–14. 21. National Research Council (NRC), Water Implications of Biofuels Production in the United States (Washington, DC: National Academies Press, 2008), p. 34. 22. Ibid. 23. Dan Charles, “Iowa Farmers Look to Trap Carbon in the Soil,” National Public Radio, 15 July 2007. 24. Joseph Pikul et al., “Change in Surface Soil Carbon Under Rotated Corn in Eastern South Dakota,” Soil Science Society of America Journal, 21 November 2008. 25. Jason Hill et al., “Climate Change and Health Costs of Air Emissions from Biofuels and Gasoline,” Proceedings of the National Academy of Sciences, 10 February 2009, pp. 2077–82. 26. Natural Resources Defense Council, “Unlocking the Promise of Ethanol: Promoting Ethanol While Protecting Air Quality,” fact sheet (New York: February 2006); Mark Z. Jacobson, “Effects of Ethanol (E85) versus Gasoline Vehicles on Cancer and Mortality in the United States,” Environmental Science and Technology, 18 April 2007, pp. 4150–57; EPA, “E85 and Flex Fuel Vehicles,” fact sheet (Washington, DC: October 2006). 27. EPA, “Biodiesel,” fact sheet (Washington, DC: October 2006). 28. NRC, op. cit. note 21, pp. 27–36. 29. Howarth et al., op. cit. note 12, pp. 6–7. 30. U.S. National Oceanic and Atmospheric Administration, “Survey Cruise Records Second-Largest ‘Dead Zone’ in Gulf of Mexico Since Measurements Began in 1985,” press release (Washington, DC: 28 July 2008). 31. R. Dominguez-Faus et al., “The Water Footprint of Biofuels: A Drink or Drive Issue?,” Environmental Science and Technology, 1 May 2009, p. 3007. 32. Joe Barret, “How Ethanol Is Making the Farm Belt www.worldwatch.org Thirsty,” Wall Street Journal, 5 September 2007; NRC, op. cit. note 21, pp. 19–26; Carey Gillam, “Ethanol Craze Endangers U.S. Plains Water: Report,” Reuters, 20 September 2007; Martha G. Roberts, Timothy D. Male, and Theodore P. Toombs, Potential Impacts of Biofuels Expansion on Natural Resources: A Case Study of the Ogallala Aquifer Region (Washington, DC: Environmental Defense, September 2007). 33. Dennis Keeney and Mark Muller, Water Use by Ethanol Plants: Potential Challenges (Minneapolis: Institute for Agriculture and Trade Policy, October 2006), p. 4. 34. NRC, op. cit. note 21, p. 51. 35. Yi-Wen Chiu, Brian Walseth, and Sangwon Suh, “Water Embodied in Bioethanol in the United States,” Environmental Science & Technology, 15 April 2009, pp. 2688–92. 36. NRC, op. cit. note 21, p. 51. For soybean irrigation, see: R. Dominguez-Faus et al., “The Water Footprint of Biofuels: A Drink or Drive Issue?,” Environmental Science and Technology, 1 May 2009; Jerry Wright et al., “Predicting the Last Irrigation for Corn and Soybeans in Central Minnesota,” Minnesota Crop eNews (University of Minnesota Extension Service), 1 August 2006; Danny Rogers and William Sothers, “Predicting the Final Irrigation for Corn, Grain Sorghum, and Soybeans,” Irrigation Management Series (Manhattan, KS: Cooperative Extension Service, Kansas State University, May 1996); E.B. Whitty, D.L. Wright, and C.G. Chambliss, Water Use and Irrigation Management of Agronomic Crops (Gainesville, FL: University of Florida Institute of Food and Agricultural Sciences Extension, reviewed November 2008 (revised April 2002)). 37. Barret, op. cit. note 32; NRC, op. cit. note 21, pp. 19–26; Roberts, Male, and Toombs, op. cit. note 32. 38. Roberts, Male, and Toombs, op. cit. note 32. 39. Renewable Fuels Association, “Biorefinery Locations,” www.ethanolrfa.org/industry/locations, updated 5 March 2009; Kris Bevill et al., “Proposed Ethanol Plant List: 2008 United States & Canada PART 1,” Ethanol Producer Magazine, April 2008. 40. Jim Giles, “Can Biofuels Rescue American Prairies?” New Scientist, 18 August 2007, pp. 8–9. 41. U.S. Department of Agriculture, “Conservation Reserve Program and Conservation Reserve Enhancement Program,” Farm Bill Forum Comment Summary & Background (Washington, DC: 2006). 42. Ibid.; Dominguez-Faus et al., op. cit. note 36, p. 3008; Ralph Heimlich, “USDA’s Conservation Reserve Program: Is It Time to Ease into Easements?” (Washington, DC: Resources for the Future, 8 September 2008). 43. Heimlich, op. cit. note 42. 44. Rolf R. Koford, “Density and Fledging Success of Grassland Birds in Conservation Reserve Program Fields in North Dakota and West-central Minnesota,” Studies in Avian Biology, vol. 19 (1999). 45. Global Invasive Species Programme, Biofuel Crops and the Use of Non-Native Species: Mitigating the Risks of Red, White, and Green 37 Endnotes Invasion (Nairobi: May 2008); Christopher Evan Buddenhagen, Charles Chimera, and Patti Clifford, “Assessing Biofuel Crop Invasiveness: A Case Study,” PLoS ONE, 22 April 2009. Benefits of “Advanced” Biofuels” 1. Susanne Retka Schill, “Miscanthus versus Switchgrass,” Ethanol Producer Magazine, 22 October 2007; David Busby et al., “Yield and Production Costs for Three Potential Dedicated Energy Crops in Mississippi and Oklahoma Environments,” paper presentation at the Southern Agricultural Economics Association Annual Meeting, Mobile, AL, February 2007; Louisiana State University Ag Center, “New Varieties, Energy Cane Highlight LSU AgCenter Sugarcane Field Day,” press release (St. Gabriel, LA: 20 July 2006). 2. See, for example, Humberto Blanco-Canqui and R. Lal, “Soil and Crop Response to Harvesting Corn Residues for Biofuel Production,” Geoderma, 15 October 2007, pp. 355–62, and Dan Walters and Haishun Yang, “How Much Corn Stover Can Be Removed for Biofuel Feedstock Without Compromising Soil Quality and Erosion Concerns,” presentation at the 2007 Biofuels and Water Resources Mini-Retreat, University of NebraskaLincoln School of Natural Resources, Lincoln, NE, 19 January 2007. 3. Tom Capehart, Cellulosic Biofuels: Analysis of Policy Issues for Congress (Washington, DC: Congressional Research Service, 7 November 2008), pp. 5–6; Biomass Research and Development Initiative, Increasing Feedstock Production for Biofuels: Economic Drivers, Environmental Implications, and the Role of Research (Washington, DC: December 2008). 4. Martha Groom, Elizabeth Gray, and Patricia Townsend, “Biofuels and Biodiversity: Principles for Creating Better Policies for Biofuel Production,” Conservation Biology, 28 June 2008, pp. 602–09. 5. Global Invasive Species Programme, Biofuel Crops and the Use of Non-Native Species: Mitigating the Risks of Invasion (Nairobi: May 2008). 6. Robert D. Perlack et al., “Biomass as a Feedstock for a Bioenergy and Bioproducts Industry: The Technical Feasibility of a Billion-Ton Annual Supply,” A Joint Study Sponsored by the U.S. Department of Energy (DOE) and the U.S. Department of Agriculture (USDA) (Oakridge, TN: Oak Ridge National Laboratory, April 2005), p. 16. 7. Sidebar 2 from the following sources: National Renewable Energy Laboratory (NREL), A Look Back at the U.S. Department of Energy’s Aquatic Species Program: Biodiesel from Algae (Golden, CO: July 1998); DOE, “Algal Biofuels,” fact sheet (Washington, DC: 2008); DOE, “Algal Biofuels Technology Roadmap Workshop,” www.orau.gov/ algae2008/default.htm, viewed 20 April 2009; Joseph B. Verrengia, NREL, “Algae-to-Fuel Research Enjoys Resurgence at NREL,” Renewable Energy World.com, 16 April 2009; Michael Kanellos, “Algae Biodiesel: It’s $33 a Gallon,” Green Tech Media, 3 February 2009; Solix, “Why Algae,” www.solixbiofuels.com/html/why_algae.html, viewed 20 April 2009; David Biello, “Biofuel of the Future: Oil from Algae,” Scientific American, October 38 Red, White, and Green 2008; “Bionavitas Announces Breakthrough Algae Growth Technology for Biofuels Production,” Reuters, 24 February 2009; “Mass. Firm Opens Algae-Growing Greenhouse,” CNET Tech News, 21 October 2008; David Perlman, “Decoded Algae Could Aid Biofuel, Climate Work,” San Francisco Chronicle, 10 April 2009; Julian N. Rosenberg et al., “A Green Light for Engineered Algae: Redirecting Metabolism to Fuel a Biotechnology Revolution,” Current Opinion in Biotechnology, vol. 19 (2008), pp. 430–36; Yusuf Chrisi, “Research Review Paper: Biodiesel from Microalgae,” Biotechnology Advances, vol. 25 (2007), pp. 294–306; Katie Fehrenbacher, “15 Algae Startups Bringing Pond Scum to Fuel Tanks,” Earth2Tech, 27 March 2008. 8. Jason Hill et al., “Environmental, Economic, and Energetic Costs and Benefits of Biodiesel and Ethanol Biofuels,” Proceedings of the National Academy of Sciences, 25 July 2006, p. 11208; Emanuela Menichetti and Martina Otto, “Energy Balance & Greenhouse Gas Emissions of Biofuels from a Life Cycle Perspective,” in R.W. Howarth and S. Bringezu, eds., Biofuels: Environmental Consequences and Interactions with Changing Land Use, Proceedings of the Scientific Committee on Problems of the Environment (SCOPE) International Biofuels Project Rapid Assessment, 22–25 September 2008, Gummersbach, Germany (Ithaca, NY: Cornell University, 2009), pp. 84–85; Michael Wang, May Wu, and Hong Huo, “Lifecycle Energy and Greenhouse Gas Emission Impacts of Different Corn Ethanol Plant Types,” Environmental Research Letters, April–June 2007, p. 12; M.R. Schmer et al., “Net Energy of Cellulosic Ethanol from Switchgrass,” Proceedings of the National Academy of Science, 15 January 2008, pp. 464–69. 9. Schmer et al., op. cit. note 8. 10. Wang, Wu, and Huo, op. cit. note 8, p. 9. 11. Wang, Wu, and Huo, op. cit note 8 shows an 86 percent reduction in greenhouse gases compared to gasoline; Alexander E. Farrell et al., “Ethanol Can Contribute to Energy and Environmental Goals,” Science, 27 January 2006, pp. 506–08 shows an 88 percent reduction; Schmer et al., op. cit. note 8, shows a 94 percent reduction; EPA, “Greenhouse Gas Impacts of Expanded Renewable and Alternative Fuels Use,” fact sheet (Washington, DC: April 2007); 12 percent corn ethanol reduction from Hill et al., op. cit. note 8, p. 3; 18 percent from Farrell et al., op. cit. this note. 12. See, for example, Schmer et al., op. cit. note 8, and David Tilman, Jason Hill, and Clarence Lehman, “Carbon-Negative Biofuels from Low-Input HighDiversity Grassland Biomass,” Science, 8 December 2006. 13. Lew Fulton et al., Biofuels for Transport: An International Perspective (Paris: International Energy Agency, 2004), pp. 61–62. 14. Schmer et al., op. cit. 8; Farrell, et al., op. cit. 11. 15. Oak Ridge National Laboratory, “Biofuels from Switchgrass: Greener Energy Pastures,” fact sheet (Oak Ridge, TN: 1998) 16. Capehart, op. cit. note 3, p. 5; average 2008 corn yield from USDA, “USDA Forecasts Robust Corn and Soybean Crops, Despite Flooding,” press release (Washington, DC: w w w. w orldwatch.org Endnotes 12 August 2008). Estimate assumes that each bushel yields 2.8 gallons of ethanol, the current average. 17. Schmer et al., op. cit. note 8, pp. 464–69; Tilman, Hill, and Lehman, op. cit. note 12, p. 1598. 18. Bruce A. Babcock et al., “Adoption Subsidies and Environmental Impacts of Alternative Energy Crops,” Briefing Paper 07-BP50 (Ames, IA: Iowa State University Center for Agricultural and Rural Development, March 2007). 19. Tilman, Hill, and Lehman, op. cit. note 12, p. 1598. 20. Ibid. 21. John Kort, Michael Collins, and David Ditsch, “A Review of Soil Erosion Potential Associated with Biomass Crops,” Biomass and Bioenergy, April 1998, pp. 351–59; Les Murray and Louis B. Best, “Effects of Switchgrass Harvest as Biomass Fuel on Grassland-Nesting Birds,” graduate research project supported by the National Resources Conservation Service and Iowa State University, January 2006, available at ftp://ftp-fc.sc.egov.usda .gov/NHQ/ecs/Wild/Biomass.pdf. 22. Kort, Collins, and Ditsch, op. cit. note 21, p. 351. 23. Perlack et al., op. cit. note 6; Schmer et al., op. cit. note 8, pp. 464–69. 24. Capehart, op. cit. 3, pp. 7, 13; Hosein Shapouri and Michael Salassi, Economic Feasibility of Ethanol Production from Sugar in the United States (Washington, DC: USDA and Louisiana State University, July 2006), p. iv. 25. Capehart, op. cit. note 3. 26. Ibid. 27. Ibid. 28. Sidebar 3 from the following sources: Mark Brady et al., “Renewable Diesel Technology,” a white paper from the Renewable Diesel Subcommittee of the Washington State Department of Agriculture Technical Work Group (Olympia, WA: WSDA, 25 July 2007), pp. 4–6, 50; National Renewable Energy Laboratory (NREL), Research Advances: Cellulosic Ethanol (Washington, DC: March 2007); DOE, Advanced Fuels and Advanced Vehicles Data Center, “Cellulosic Ethanol Production,” www.afdc.energy .gov/afdc/ethanol/production_cellulosic.html, viewed 17 April 2009; Rainer Kalscheuer, Torsten Stölting and Alexander Steinbüchel, “Microdiesel: Escherichia Coli Engineered for Fuel Production,” Microbiology, vol. 152 (2006), pp. 2529–36; David I. Bransby, Cellulosic Biofuel Technologies, sponsored in part by the Southern States Energy Board (Auburn, AL: February 2007), pp. 16–22; United Nations Conference on Trade and Development, Biofuel Production Technologies: Status, Prospects and Implications for Trade and Development (New York: 2008), pp. 9–15. 29. Environmental and Energy Study Institute (EESI), “Cellulosic Biofuels,” fact sheet (Washington, DC: July 2008). 30. EPA, “Regulation of Fuels and Fuel Additives: Changes to Renewable Fuel Standard Program,” pre-published draft implementation rules (Washington, DC: 5 May 2009), pp. 196–98. www.worldwatch.org 31. Ibid. 32. See, for example, Biotechnology Industry Organization, “Biofuels Defined,” biofuelsandclimate.wordpress .com/about/, viewed 20 April 2009. 33. EPA, op. cit. note 30, p. 199. 34. H.R. 6: Energy Independence and Security Act of 2007, 19 December 2007, available at http://frwebgate.access .gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills& docid=f:h6enr.txt.pdf; USDA, Economic Research Service, “2008 Farm Bill Side-by-Side. Title IX: Energy,” www.ers.usda.gov/FarmBill/2008/titles/titleixenergy.htm, viewed 18 February 2009; Jesse Caputo, “Federal Biomass Policy: Current and Future Policy Options,” presented at The Heinz Center and the Pinchot Institute for Conservation Symposium, “Ensuring Forest Sustainability in the Development of Wood Biofuels and Bioenergy,” Washington, DC, 9 February 2009. 35. USDA, “USDA Approves First Ever Guaranteed Loan for Commercial-Scale Cellulosic Ethanol Plant,” press release (Washington, DC: 16 January 2009). 36. USDA, “President Obama Issues Presidential Directive to USDA to Expand Access to Biofuels,” press release (Washington, DC: 5 May 2009). 37. DOE, “DOE Selects Six Cellulosic Ethanol Plants for Up to $385 Million in Federal Funding,” press release (Washington, DC: 28 February 2007). 38. See, for example, Verenium, “Verenium Announces First Commercial Cellulosic Ethanol Project,” press release (Cambridge, MA: 15 January 2009). 39. Sandia National Laboratories, “90-Billion Gallon Biofuel Deployment Study: Executive Summary” (Livermore, CA: February 2009). Making Biofuels Sustainable 1. See, for example, Worldwatch Institute, Biofuels for Transport: Global Potential and Implications for Sustainable Energy Agriculture (London: Earthscan, 2006); ASTM International, “New Biodiesel Specifications Published by ASTM International,” press release (West Conshohocken, PA: October 2008). 2. Jinke van Dam et al., “Overview of Recent Developments in Sustainable Biomass Certification,” Biomass and Bioenergy, 19 May 2008, pp. 750–51. 3. See, for example, Roundtable on Sustainable Biofuels (RSB), “Version Zero of the RSB Principles and Criteria,” cgse.epfl.ch/page70341.html, viewed 14 April 2009; Steve Charnovitz, Jane Earley, and Robert Howse, An Examination of Social Standards in Biofuels Sustainability Criteria (Washington, DC: International Food & Agricultural Trade Policy Council, December 2008). 4. See, for example, RSB, op. cit. note 3, and van Dam et al., op. cit. note 2, pp. 749–80. 5. Finn Danielsen et al., “Biofuel Plantations on Forested Lands: Double Jeopardy for Biodiversity and Climate,” Conservation Biology, April 2009, pp. 348–58. 6. See “Climate and Environmental Impacts of Biofuels” section earlier for discussion and references. Red, White, and Green 39 Endnotes 7. See, for example, Alexander E. Farrell et al., “Ethanol Can Contribute to Energy and Environmental Goals,” Science, 27 January 2006, pp. 506–08. 8. Michael Wang, May Wu, and Hong Huo, “Life-cycle Energy and Greenhouse Gas Emission Impacts of Different Corn Ethanol Plant Types,” Environmental Research Letters, April–June 2007, pp. 1, 13. 9. Ibid.; Nicholas Zeman, “Coproducts Energy Value is Rising,” Ethanol Producer Magazine, October 2007. 10. See, for example, Bill Hord, “Mead Ethanol Plant Filing Bankruptcy,” Omaha World Herald, 30 November 2007, and Tony Kryzanowski, “$100 Million Invested in Bio-Energy Expansion and Ethanol Plant,” Manure Manager, undated. 11. See, for example, Center for Applied Energy Research, University of Kentucky, “Development of an Integrated Process to Convert Glycerin to Green Power in a Biodiesel Plant” (Lexington, KY: 12 January 2009), and General Vortex Energy, Inc., “Fuel Sources for the General Vortex Combustion Chamber,” www.generalvortex.com/GVCT _fuel_sources.html, viewed 15 April 2009. 12. U.S. Department of Agriculture, Agricultural Research Service, “Final Report,” International Conference on Sorghum for Biofuels, Houston, TX, 19–22 August 2008. 13. Nicholas Zeman, “Crazy for Camelina,” Biodiesel Magazine, February 2007; Patrick Barta, “Jatropha Plant Gains Steam in Global Race for Biofuels,” Wall Street Journal, 24 August 2007, p. A1. 14. Barta, op. cit. note 13; “Toxic Jatropha Not Magic Biofuel Crop, Experts Warn,” Reuters, 12 September 2007. 15. David R. Huggins and John P. Reganold, “No-Till: How Farmers Are Saving the Soil by Parking Their Plows,” Scientific American, June 2008. 16. Chicago Climate Exchange, “Soil Carbon Management Offsets” (Chicago: September 2008). 17. Huggins and Reganold, op. cit. note 15; Ron Perszewski, “Push Continues for Residue to Be Used in Ethanol Production,” No-Till Farmer News, 9 January 2007. 18. Table 2 from the following sources: RSB, op. cit. note 3; Council on Sustainable Biomass Production Web site, www.csbp.org, viewed 17 February 2009; European Committee for Standardization (CEN), “New Technical Committee on Sustainability of Biomass,” CEN Networking, June 2008, p. 2; Sustainable Biodiesel Alliance, “Principles and Baseline Practices for Sustainability,” www.sustainablebiodieselalliance.com/BPS1015draft.pdf, viewed 17 February 2009; Roundtable on Sustainable Palm Oil Web site, www.rspo.org, viewed 15 April 2009; Roundtable on Responsible Soy Web site, www.respon siblesoy.org, viewed 15 April 2009. 19. European Parliament and Council of the European Union, “Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the Promotion and Use of Energy from Renewable Sources and Amending and Subsequently Repealing Directives 2001/77/EC and 2003/30/EC,” (Brussels: 23 April 2009). 40 Red, White, and Green 20. Ibid., article 17. 21. Ibid. 22. Ibid. 23. Ibid., article 19. 24. Sidebar 4 from the following sources: N.D. Mortimer et al., Evaluation of the Comparative Energy, Global Warming and Socio-Economic Costs and Benefits of Biodiesel (Sheffield, U.K.: Sheffield Hallam University, School of Environment and Development, Resources Research Unit, 2003), pp. 39–41l; Worldwatch Institute, op. cit. note 1, pp. 188–91; Resource Dynamics Corporation, Combined Heat and Power Market Potential for Opportunity Fuels, Distributed Energy Program Report (Washington, DC: U.S. Department of Energy, Energy Efficiency and Renewable Energy, August 2004); Owen Bailey et al., An Engineering-Economic Analysis of Combined Heat and Power Technologies in a Grid Application (Berkeley, CA: Lawrence Berkeley National Laboratory, 2002), pp. 3–5; Interlaboratory Working Group, “Chapter 7,” in Scenarios of U.S. Carbon Reductions: Potential Impacts of Energy-Efficient and Low-Carbon Technologies by 2010 and Beyond (Oak Ridge, TN and Berkeley, CA: Oak Ridge National Laboratory and Lawrence Berkeley National Laboratory, 1997); Dennis Becker, “Forest Biomass and its Role in a National Renewable Electricity Standard,” briefing presentation (Washington, DC: Environmental and Energy Study Institute, March 2009); biomass co-firing efficiency from National Renewable Energy Laboratory, Biomass Cofiring: A Renewable Alternative for Utilities, fact sheet (Golden, CO: June 2000), from European Bioenergy Networks, Biomass CoFiring: An Efficient Way to Reduce Greenhouse Gas Emissions (Jyväskylä, Finland: 2003), pp. 21–22, and from Jesse Caputo and James Hacker, Biomass Cofiring: A Transition to a Low-Carbon Future (Washington, DC: Environmental and Energy Study Institute, March 2009); Sweden from Swedish Energy Agency, “Sweden Has the Highest Proportion of Renewable Energy in the EU,” press release (Eskilstuna, Sweden: 17 December 2008), and from Laurie Goering, “Going Green: Entire Swedish City Switches to Biofuels to Become Environmentally Friendly,” Chicago Tribune, 3 March 2009; Ministry of Foreign Affairs of Denmark, “The Danish Example— Towards an Energy Efficient and Climate Friendly Economy,” October 2008, at http://en.cop15.dk/files/ images/Articles/Danish-example/The-Danish-Example .pdf; U.S. Energy Information Agency (EIA), “Table 3. Electricity Net Generation From Renewable Energy by Energy Use Sector and Energy Source, 2003–2007” and “Table 1.1. Net Generation by Energy Source: Total (All Sectors), 1994 through November 2008,” Electric Power Monthly (Washington, DC: 13 February 2009); J.E. Campbell, D.B. Lobell, and C.B. Field, “Greater Transportation Energy and GHG Offsets from Bioelectricity than Ethanol,” Science, 22 May 2009, pp. 1055–57. 25. See, for example, John Carey, “The Biofuel Bubble,” Business Week, 16 April 2009. Federal and State Biofuel Policies 1. H.R. 6: Energy Independence and Security Act of 2007 (EISA), 19 December 2007, available at www.govtrack.us/ w w w. w orldwatch.org Endnotes congress/bill.xpd?bill=h110-6. 2. Ibid. 3. Figure 6 from ibid. 4. Ibid. 5. Ibid. For more on waivers under the Renewable Fuel Standard, see Brent D. Yacobucci, Waiver Authority Under the Renewable Fuel Standard (RFS) (Washington, DC: Congressional Research Service (CRS), 5 May 2008). 6. Congressional Budget Office (CBO), The Impact of Ethanol Use on Food Prices and Greenhouse-Gas Emissions (Washington, DC: April 2009), p. 14. 7. H.R. 6: Energy Independence and Security Act of 2007, op. cit. note 1. 8. Ibid. 9. U.S. Environmental Protection Agency (EPA), “EPA Proposes New Regulations for the National Renewable Fuel Standard Program for 2010 and Beyond,” fact sheet (Washington, DC: May 2009), p. 3. 10. Ibid. 11. Ibid. 12. Joseph Fargione et al., “Land Clearing and the Biofuel Carbon Debt,” Science, 29 February 2008, pp. 1235–38; Timothy Searchinger et al., “Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land Use Change,” Science, 29 February 2008, pp. 1238–40; California Air Resources Board (ARB), Proposed Regulation to Implement the Low Carbon Fuel Standard Volume I, Staff Report: Initial Statement of Reasons (Sacramento, CA: 5 March 2009). 13. EPA, “Regulation of Fuels and Fuel Additives: Changes to Renewable Fuel Standard Program,” prepublished draft implementation rules (Washington, DC: 5 May 2009). 14. EPA, “EPA Lifecycle Analysis of Greenhouse Gas Emissions from Renewable Fuels,” fact sheet (Washington, DC: May 2009), p. 3. 15. See, for example, Union of Concerned Scientists, “EPA Proposes Rule to Reduce Global Warming Emissions from Biofuels,” press release (Washington, DC: 5 May 2009). 16. H.R. 6: Energy Independence and Security Act of 2007, op. cit. note 1. 17. Ibid. 18. 12 billion gallon nameplate capacity per U.S. Department of Energy (DOE), Energy Efficiency and Renewable Energy, “Biofuels Data” (Washington, DC: updated 23 March 2009). 19. EPA, op. cit. note 13, pp. 55–61. 20. CBO, op. cit. note 6, p. 2. See also U.S. Internal Revenue Service (IRS), “Chapter 2: Fuel Tax Credits and Refunds or IRS Instructions for Form 720,” in IRS Publication 510: Excise Taxes, available at www.irs.gov/publi cations/p510. 21. U.S. Farm Bill of 2008, Public Law 110-234; Brent D. www.worldwatch.org Yacobucci, Biofuel Incentives: A Summary of Federal Programs (Washington, DC: CRS, 29 July 2008). 22. Yacobucci, op. cit. note 21. See also IRS, op. cit. note 20. 23. U.S. Farm Bill of 2008, op. cit. note 21; Yacobucci, op. cit. note 21. 24. Yacobucci, op. cit. note 21. Extended per the Farm Bill of 2008, op. cit. note 21; CBO, op. cit. note 6, p. 2. 25. Brent D. Yacobucci, Selected Issues Related to an Expansion of the Renewable Fuel Standard (Washington, DC: CRS, 31 March 2008). 26. Ben Geman, “Bipartisan Senate Bill Seeks Lower Tariffs on Ethanol Imports,” New York Times, 18 March 2009. 27. Yacobucci, op. cit. note 21; IRS, op. cit. note 20; Anne Austin, “Industry Welcomes Tax Credit Extension,” Biodiesel Magazine, December 2008. 28. Yacobucci, op. cit. note 21. 29. “Biofuels: E.U. Sets New Tax on Imported U.S. Biodiesel,” E&E News, 13 March 2009. 30. Austin, op. cit. note 27. 31. Fred Sissine et al., Energy Provisions in the American Recovery and Reinvestment Act of 2009 (Washington, DC: CRS, 3 March 2009). 32. DOE, “DOE to Invest up to $4.4 Million in Six Innovative Biofuels Projects at U.S. Universities,” press release (Washington, DC: 10 September 2008). 33. DOE, “DOE Selects Six Cellulosic Ethanol Plants for Up to $385 Million in Federal Funding,” press release (Washington, DC: 28 February 2007) 34. DOE, op. cit. note 32. 35. DOE, Energy Efficiency and Renewable Energy, “Ethanol Incentives and Laws,” www.afdc.energy.gov/ afdc/progs/ind_state_laws.php/FL/ETH, viewed 12 March 2009. 36. Sidebar 6 from the following sources: ARB, Climate Change Proposed Scoping Plan: A Framework for Change (Sacramento, CA: October 2008); ARB, “Low Carbon Fuel Standard Program,” www.arb.ca.gov/fuels/lcfs/lcfs.htm, updated 5 March 2009; ARB, Proposed Regulation to Implement the Low Carbon Fuel Standard Volume I, Staff Report: Initial Statement of Reasons (Sacramento, CA: 5 March 2009); Margot Roosevelt, “California to Limit Greenhouse Gas Emissions of Vehicle Fuels,” Los Angeles Times, 24 April 2009; Timothy Gardner, “ANALYSIS: California Rule Could End Ethanol’s Honeymoon,” Reuters, 27 April 2009. 37. DOE, op. cit. note 35. 38. Ibid. 39. H.R. 6: Energy Independence and Security Act of 2007, op. cit. note 1. 40. Renewable Fuels Association, “Legislative Actions: State,” www.ethanolrfa.org/policy/actions/state/, viewed 4 May 2009. Red, White, and Green 41 Endnotes The Road Ahead: Policy Options for Sustainable U.S. Biofuels 1. See, for example, Clean Air Task Force et al., “America Needs a True Renewable Energy Policy,” press release, (Washington, DC: 9 February 2009). 2. See, for example, Robbin S. Johnson and C. Ford Runge, “Ethanol: Train Wreck Ahead?” Issues in Science and Technology (University of Texas at Dallas), 9 October 2007. 3. Massachusetts Executive Office of Energy and Environmental Affairs, “Clean Energy Biofuels Act,” www.mass.gov/legis/laws/seslaw08/sl080206.htm, viewed 3 March 2009. 4. See, for example, “Bernanke Backs Lower Tariff on Brazil Ethanol,” Reuters, 28 February 2008; Mark Steil, “Rising Corn Prices Heat Up Ethanol Tariff Debate,” Minnesota Public Radio, 15 April 2008. 5. For cropland discussion, see Cole Gustafson, “Biofuel Economics: How Many Acres Will Be Needed For Biofuels? Part II,” North Dakota State University Extension Service, www.ag.ndsu.edu/news/columns/biofuels-economics/biofuel-economics-how-many-acres-will-beneeded-for-biofuels-part-ii/, viewed 3 March 2009; for costs, see Bruce A. Babcock, Iowa State University Center for Agricultural and Rural Development, “Statement 42 Red, White, and Green Before the U.S. Senate Committee on Homeland Security and Government Affairs,” Hearing on Fuel Subsidies and Impact on Food Prices, 7 May 2008; for climate benefits, see U.S. Department of Energy (DOE), “Ethanol Greenhouse Gas Emissions,” Alternative Fuels and Advanced Vehicles Data Center, www.afdc.energy.gov/afdc/ ethanol/emissions.html, updated 4 February 2009. 6. Biomass Research and Development Board, National Biofuels Action Plan (Washington, DC: October 2008). 7. U.S. Department of Agriculture (USDA), “Highly Erodible Land and Wetland Conservation Compliance Provisions,” Farm Bill Forum Comment Summary and Background,” available at www.usda.gov/documents. 8. USDA, “USDA Announces New Office of Ecosystems Services and Markets,” press release (Washington, DC: 18 December 2008). 9. Electric Power Research Institute, Environmental Assessment of Plug-In Hybrid Electric Vehicles Volume 1: Nationwide Greenhouse Gas Emissions (Palo Alto, CA: July 2007), p. 5-5 through 5-7; DOE and U.S. Environmental Protection Agency, “Electric Vehicles (EVs),” www.fuel economy.gov/feg/evtech.shtml, viewed 27 April 2009. 10. Six times greater from Christopher Flavin, LowCarbon Energy: A Roadmap (Washington, DC: Worldwatch Institute, 2008), p. 21. w w w. w orldwatch.org Index A advanced biofuels, see second-generation biofuels agricultural crops, see feedstocks air pollution, 15 Algal Biofuels Roadmap, 17 American Recovery and Reinvestment Act (2009), 28 Aquatic Species Program, 17 aquifers, 15 Archer Daniels Midland, 9 Argonne National Laboratory, 17, 22 Arkansas, 23 Asian grass, 16 B bagasse, 13 biobutanol, 7 biochemical platform, 19 biodiesel algae for, 17 climate impacts of, 14 defined, 7 energy crops, 16 environmental impact of, 15 feedstocks, 7, 10, 14, 17 fossil energy balance, 13 global production, 8 job creation from, 11–12 production incentives, 28 production increases, 7, 9–10 production process, 7, 19 water use, 15 biodiversity conservation, 15, 18, 25 biofuels climate impacts, 13–15 defined, 7 environmental impacts, 13–15 evaluating fuel lifecycle, 13 production by country, 8 promise of, 7–8 Biofuels Interagency Working Group, 32 biogas, 7, 22 biomass advanced biofuels from, 16 www.worldwatch.org defined, 7 microalgae and, 17 reliance on, 24, 32–33 switchgrass and, 18 Biomass Research and Development Board, 31 Biorefinery Assistance Program, 20 blend wall, 12 blender’s tax credit, 28 blue grass, 16 Brazil, 7–8, 28 C California Air Resources Board, 29 California Low Carbon Fuel Standard (2007), 28–29, 32 camelina, 22 Canada, 8 carbon credits, 22 carbon debt, 14 carbon dioxide, 13, 17–18, 24 carbon storage corn stover and, 16 in feedstocks, 13 switchgrass and, 18 Caribbean Basin Initiative, 28 cellulose converting to biofuels, 5 policy options, 6 cellulosic ethanol defined, 7 environmental impact of, 13, 15 evaluating fuel lifecycle, 17 fossil energy balance, 13 greenhouse gas emissions and, 18 job creation from, 12 locations of refineries, 20 production costs, 19 Chicago Carbon Exchange, 22 climate impacts of biofuels, 13–15 mitigating, 16, 25 coal, 24 co-firing process, 24 Red, White, and Green 43 Index Colorado, 17–18 combined heat-and-power (CHP) method, 24 Congressional Budget Office, 10 Conservation Reserve Program (CRP), 15, 18 corn ethanol economic impacts, 10–11, 15 environmental impacts, 5, 13–15 evaluating fuel lifecycle, 17 greenhouse gas emissions and, 8, 13 locations of refineries, 20 policy requirements, 27 production costs, 19 production increases, 9–10 production process, 7 water use, 15 corn production and costs, 9–10 corn stover, 16 Council on Sustainable Biomass Production, 23 D deforestation, 27 Denmark, 24 Department of Energy (DOE) as funding source, 20, 28 on job creation, 12 on microalgae costs, 17 on sustainability standards, 31 distiller’s grains, 22 E E. coli, 19 economic impacts of corn and soybean production, 10–11, 15 of global recession, 12 electricity, 24, 32–33 energy balance, 13, 17 energy cane, 16 energy crops, 16 Energy Independence and Security Act (2007), 26, 29–32 environmental impacts of biofuels, 13–15 first-generation biofuels, 5, 13–15 policy reporting requirements, 27 second-generation biofuels, 18 Environmental Protection Agency biofuel policies, 26–27 implementation rules, 27, 31 on blend levels, 12 on greenhouse gas reductions, 13–14, 18 on Renewable Fuel Standard, 31 esterification, 7 ethanol, see also cellulosic ethanol; corn ethanol biochemical process, 19 defined, 7 44 Red, White, and Green energy crops, 16 feedstocks, 7, 9, 13–14, 16 food costs and, 10–11 fossil energy balance, 13 industry, 9–11 job creation from, 11–12 production increases, 7, 9 production process, 7, 19 production subsidies and incentives, 12, 26–29 sugar cane, 13, 19 tariffs on, 28 thermochemical process, 19 trade, 8 VEETC and, 28 water use, 15 ethanol blending limit, 12 European Union biofuel production, 8 import taxes, 28 land use change study, 25 sustainability criteria, 23 F feedstocks advanced biofuels and, 16 carbon storage in, 13 changing, 22 ethanol production and, 9 land use changes and, 14 microalgae and, 17 producing biofuels from, 5, 7 sustainable production, 32 thermochemical process, 19 fertilizers, greenhouse gases and, 13–14 first-generation biofuels environmental impacts, 5, 13–15 land use changes and, 14 production process, 7 Fisher-Tropsch liquids (FTLs), 19 food costs, ethanol production and, 10–11 fossil energy balance, 13 fossil fuels evaluating fuel lifecycle, 13 transitioning, 24 fuel lifecycle, 13, 17, 27 G gammagrass, 16 gasoline biofuels and, 7 environmental impact of, 15 ethanol blending limit, 12 ethanol displacement, 9 evaluating fuel lifecycle, 13 MTBE additive, 9 w w w. w orldwatch.org Index VEETC and, 28 Georgia, 20 glycerin, 22 grain sorghum, 7, 22–23 GreenFuel Technologies, 17 greenhouse gas emissions advanced biofuels and, 16 corn ethanol and, 5, 8 evaluating fuel lifecycle, 13 fertilizers and, 13–14 microalgae and, 17 pesticides and, 13 policies on, 26–27 reducing, 22 transportation sector and, 7 Gulf of Mexico, 15 H heating, 24, 33 hydrolysis, 19 I Iowa, 11, 18, 22 J jatropha, 22 L land conservation, 15, 18 land use changes biofuel sustainability and, 21–23 climate impact of, 14 feedstocks and, 14 policies and, 25, 27, 29, 31 population increases and, 14, 31 Lawrence Berkeley National Laboratory, 24, 28 lignin, 18 M manure, 22 Massachusetts Clean Energy Biofuels Act (2008), 31 meat consumption, 14 microalgae, 17 Minnesota, 11 Mississippi River, 15 MTBE gasoline additive, 9 N National Biofuels Action Plan, 31 nitrogen, 14–15 nitrous oxide, 13–14 no-till cultivation, 22 O Oak Ridge National Laboratory, 24 www.worldwatch.org Obama, Barack, 20 Office of Ecosystem Services and Markets, 32 Ogallala Aquifer, 15 oil palm, 21–22 P pesticides, greenhouse gases and, 13 petroleum diesel biofuels and, 7 evaluating fuel lifecycle, 13 PHEV (plug-in hybrid-electric) vehicles, 32 phosphorus, 14 POET, 9 policies federal and state, 26–29 for sustainable biofuels, 5–6, 30–33 pollution, biofuel contribution to, 14–15 poplar trees, 16 population, land use changes and, 14 prairie grasses, 18 promise of biofuels, 7–8 R Renewable Fuel Standard (RFS) background, 26 climate impacts and, 23 corn ethanol production and, 15 job creation and, 12 policy options for, 31 requirements, 8, 26 Renewable Fuels Association, 11, 29 Roundtable on Responsible Soy, 23 Roundtable on Sustainable Biofuels, 22–23 Roundtable on Sustainable Palm Oil, 23 S Sandia National Laboratory, 20 second-generation biofuels benefits, 16–20 fossil energy balance, 13 job creation from, 11–12 policy options, 6, 30–33 production process, 5, 7 sustainability of, 5, 21–25 technologies for, 19 sodbuster program, 32 soil erosion, 18 Solix Biofuels, 17–18 soybean production economic impacts, 10–11 environmental impacts, 14 Spain, 17 splash-and-dash loophole, 28 subsidies for ethanol production, 12 sugarcane ethanol Red, White, and Green 45 Index greenhouse gas emissions and, 13 production costs, 19 sulfur dioxide, 24 sustainability developing criteria, 21–22 federal/state policies on, 26–27 policy options for, 5–6, 30–33 of second-generation biofuels, 5, 21–25 Sustainable Biodiesel Alliance, 23 swampbuster program, 32 Sweden, 24 switchgrass, 16, 18, 28 syngas, 19 T tariffs, 28 tax credits, 28 technologies for advanced biofuels, 19 thermochemical platform, 19 third-generation biofuels, 17 transportation sector greenhouse gas emissions and, 7 energy policy, 32–33 transitioning fuels, 24 University of California, 14 University of Minnesota, 15 U.S. Department of Agriculture (USDA) Conservation Reserve Program, 15, 18 on corn production, 9 on sustainability standards, 31 U.S. Farm Bill (2008), 20, 28 U.S. National Academy of Sciences, 15 V VeraSun, 9–10 volumetric ethanol excise tax credit (VEETC), 28 W Washington, 12 water consumption, 15, 17 water quality corn ethanol production and, 15 microalgae and, 17 switchgrass and, 18 Western Climate Initiative, 29 wildlife conservation, 15, 18 willow trees, 16 wood chips, 16, 20, 22 U United States biofuel production, 8–12 biomass usage, 24 ethanol production, 7 46 Red, White, and Green w w w. w orldwatch.org Other Worldwatch Reports Worldwatch Reports provide in-depth, quantitative, and qualitative analysis of the major issues affecting prospects for a sustainable society. The Reports are written by members of the Worldwatch Institute research staff or outside specialists and are reviewed by experts unaffiliated with Worldwatch. They are used as concise and authoritative references by governments, nongovernmental organizations, and educational institutions worldwide. On Climate Change, Energy, and Materials 179: Mitigating Climate Change Through Food and Land Use, 2009 178: Low-Carbon Energy: A Roadmap, 2008 175: Powering China’s Development: the Role of Renewable Energy, 2007 169: Mainstreaming Renewable Energy in the 21st Century, 2004 160: Reading the Weathervane: Climate Policy From Rio to Johannesburg, 2002 157: Hydrogen Futures: Toward a Sustainable Energy System, 2001 151: Micropower: The Next Electrical Era, 2000 149: Paper Cuts: Recovering the Paper Landscape, 1999 144: Mind Over Matter: Recasting the Role of Materials in Our Lives, 1998 138: Rising Sun, Gathering Winds: Policies To Stabilize the Climate and Strengthen Economies, 1997 On Ecological and Human Health 174: Oceans in Peril: Protecting Marine Biodiversity, 2007 165: Winged Messengers: The Decline of Birds, 2003 153: Why Poison Ourselves: A Precautionary Approach to Synthetic Chemicals, 2000 148: Nature’s Cornucopia: Our Stakes in Plant Diversity, 1999 145: Safeguarding the Health of Oceans, 1999 142: Rocking the Boat: Conserving Fisheries and Protecting Jobs, 1998 141: Losing Strands in the Web of Life: Vertebrate Declines and the Conservation of Biological Diversity, 1998 140: Taking a Stand: Cultivating a New Relationship With the World’s Forests, 1998 On Economics, Institutions, and Security 177: Green Jobs: Working for People and the Environment, 2008 173: Beyond Disasters: Creating Opportunities for Peace, 2007 168: Venture Capitalism for a Tropical Forest: Cocoa in the Mata Atlântica, 2003 167: Sustainable Development for the Second World: Ukraine and the Nations in Transition, 2003 166: Purchasing Power: Harnessing Institutional Procurement for People and the Planet, 2003 164: Invoking the Spirit: Religion and Spirituality in the Quest for a Sustainable World, 2002 162: The Anatomy of Resource Wars, 2002 159: Traveling Light: New Paths for International Tourism, 2001 158: Unnatural Disasters, 2001 On Food, Water, Population, and Urbanization 176: Farming Fish for the Future, 2008 172: Catch of the Day: Choosing Seafood for Healthier Oceans, 2007 171: Happier Meals: Rethinking the Global Meat Industry, 2005 170: Liquid Assets: The Critical Need to Safeguard Freshwater Ecosytems, 2005 163: Home Grown: The Case for Local Food in a Global Market, 2002 161: Correcting Gender Myopia: Gender Equity, Women’s Welfare, and the Environment, 2002 156: City Limits: Putting the Brakes on Sprawl, 2001 154: Deep Trouble: The Hidden Threat of Groundwater Pollution, 2000 150: Underfed and Overfed: The Global Epidemic of Malnutrition, 2000 147: Reinventing Cities for People and the Planet, 1999 To see our complete list of Reports, visit www.worldwatch.org/taxonomy/term/40 www.worldwatch.org Red, White, and Green 47 STATE OF TH E WOR LD 2009 Into a Warming World “State of the World 2009 is a research masterpiece, the single most important reference guide to climate change yet published.” —Alex Steffen, Executive Editor, Worldchanging.com “This report is a persuasive call to action.” —Ian Lowe, President, Australian Conservation Foundation “This report is particularly timely. It addresses climate change concerns and provides a wide range of options for tackling this multi-faceted problem.” —Stephen Lincoln, Environmental Chemist, University of Adelaide, Australia “State of the World 2009 is a very timely compendium of up-to-date thinking on climate change." —Bill McKibben, Co-Founder, 350.org • Available Now • $19.95 plus shipping and handling O RD E R TODAY! Four Easy Ways to Order: • Phone: toll free 1-877-539-9946 within the U.S. or 1-301-747-2340 internationally • Fax: 1-301-567-9553 • E-mail: wwpub@worldwatch.org • Online: www.worldwatch.org Visit our website at www.worldwatch.org for information on all of our publications or to sign up for our e-newsletter. www.worldwatch.org This comprehensive guide conveys the profound, long-term consequences of global warming for humanity and our planet and investigates a wide range of potential paths to change, including: new technologies, policy changes, consumption practices, and finance—with the ultimate goal of mobilizing nations and citizens around the world to work together toward combating global warming before it’s too late. Table of Contents: Chapter 1. The Perfect Storm Chapter 2. Safe Landing Chapter 3. Using Land to Cool the Earth Chapter 4. Harnessing Low-Carbon Energy on a Grand Scale Chapter 5. Building Resilience Chapter 6. Sealing the Deal to Save the Climate Special Features: State of the World 2009 includes Climate Connections, 22 essays by experts on topics including: • • • • Biodiversity • Economics of Climate Change • Health Implications Cap and Trade • Green Jobs Carbon Tax • Technology Transfer Carbon Capture and Sequestration (CCS) • Other Greenhouse Gases • Cities: Mitigation and Adaptation Plus a Quick-Reference Climate Change Guide and Glossary of 38 key terms for understanding climate change. F09RWG WO R L DWAT C H R E P O RT 180 Red, White, and Green: Transforming U.S. Biofuels Ethanol demand in the United States is nearing 10 billion gallons per year, enough to displace about 5 percent of domestic gasoline consumption. But government mandates and other incentives envision a much larger role for U.S. biofuels, with a goal of reaching 36 billion gallons of use by 2022. Recent experience has shown that the environmental costs of producing “first-generation” biofuels, such as corn ethanol, likely outweigh the benefits. Large-scale production depends on intensive energy, chemical, and water inputs and can pollute water, destroy wildlife habitat, and degrade soils. First-generation biofuels also result in minimal, if any, reductions in greenhouse gas emissions, and the increased demand for biofuels is contributing to rising food prices and deforestation worldwide. Advanced biofuels such as cellulosic ethanol show promise as a way to overcome many of these problems and to mitigate climate change, but decision makers must take the time to get biofuels right. This includes setting verifiable industry standards that identify more-sustainable production methods and guarantee improvements. The biofuels challenge facing the United States today is to find new transportation and energy policies that take the country down a truly red, white, and green path—before it is too late. www.worldwatch.org