Issues: Oil & Energy

SHARE THE SOLUTIONS Badges for your blog or website. MORE ON BIOFUELS Overview Wind, Solar and Biomass Energy Today Business-friendly, cost-competitive and ready to meet a significant portion of America's energy needs. In Depth Studies, Analyses and other Policy Materials on Biofuels Index of NRDC's fact sheets, reports and papers on ethanol and other biofuels. Related A Responsible Energy Plan for America America's Oil Policies Re-Energize America

Americans love automobiles. We love cruising down the open highway and the freedom of movement cars provide. But today, it's beyond argument that our gasoline habit is a road to ruin. Voices from across the political spectrum say oil dependence is bad for America's national security, economy and environment.

But what if there was a viable alternative to petroleum? What if there was a renewable, cost-competitive, global-warming-busting fuel that could be produced from plants grown right here on American soil? It may sound too good to be true, but it's not. Scientists, farmers and auto experts agree that, if they're grown and produced properly, biofuels can help free America from our oil dependence.

Simply put, biofuels are fuels made from plant materials. Right now, the main biofuel on the market is ethanol, made from corn kernels. But in order to maximize biofuels' carbon-cutting potential, we'll have to use more than just kernels. Cellulosic biofuels, made from the leaves, stems and stalks of a plant, promise even bigger global warming-busting benefits. Of course, much depends on how these fuels are produced. Chopping down forests to grow biofuel crops would be counterproductive; on the other hand, perennial prairie grasses like switchgrass can yield a lot of cellulose for biofuels and be good for the land as well.

This is not hypothetical technology of the future. Biofuels are available now, ready to compete in the market with fossil fuels. The biofuels industry relies on real-world technologies that are improving by leaps and bounds every day. With technological advances that we could deploy over the next 10 years, biofuels could bring staggering economic and environmental benefits:

• Biofuels can slash global warming pollution. By 2050, biofuels -- especially cellulosic biofuels -- could reduce our greenhouse gas emissions by 1.7 billion tons per year. That's equal to more than 80 percent of current transportation-related emissions.
  
  
• Biofuels can be cost competitive with gasoline and diesel. Economists estimate that by 2015, we could produce biofuels for sale at prices equal to, or lower than, average gas and diesel prices.
  
  
• Biofuels will provide a major new source of revenue for farmers. At $40 per dry ton, farmers growing 200 million tons of biomass in 2025 would make a profit of $5.1 billion per year. And that's just the beginning. Experts believe that farmers could produce six times that amount by 2050.
  
  
• Biofuels can offer major land-use benefits. Certain biofuels crops could actually improve land that's no longer productive. Switchgrass, a promising source of cellulosic biofuel, is a native, perennial prairie grass that doesn't require a lot of pesticides and fertilizers. It uses water efficiently, has low nitrogen runoff, very low erosion, and increased soil carbon, and also provides good wildlife habitat.
  

Making Biofuels Happen the Right Way: An Action Plan

A goldrush mentality has developed around biofuels, but not all biofuels are created equal. Biofuels producers need encouragement -- in the form of performance-based incentives and standards -- to ensure that the carbon-cutting potential of biofuels is maximized and their potential environmental damage is minimized. The rapid development of cellulosic biofuels will help get more and better fuels in our tanks, fast. Environmental performance standards and requirements can ensure that a jump in biofuels production doesn't destroy native forests or lead to an increase in water pollution from excessive fertilizer use.

Biofuels alone will not solve our energy and climate crises, but they're an important part of a toolkit of solutions that includes more efficient vehicles, more livable, walkable communities, cars that can also plug into electric power and other low-carbon technologies. Here's an overview of what we need to get biofuels to work for us:

• Incentives and standards for biofuels to make sure they deliver on their environmental promise. Just because biofuels can help solve global warming doesn't mean that they will -- unless we require them to. Creating standards based on performance, rather than technology, will unleash the power of competition on the market and result in biofuels that live up to their billing.
  
  
• Aggressive federal investment in research and development of cellulosic biofuels. Producing a cheap and reliable alternative to oil will be lucrative business, but industry needs encouragement to develop technologies that are also sustainable and environmentally sound. The government can spur the development along through strategic investments and incentive programs.
  
  
• Meaningful choices at the pump for consumers. Today, drivers have a choice between oil and oil when they wheel up to the gas pump. Only one percent of gas stations around the country have a biofuel pump. Providing a real choice for consumers will take robust markets and infrastructure. To that end, the government should require that all vehicles sold by 2015 be flex-fuel vehicles that are able to use both traditional fuels and biofuels. Also, one-quarter of the nation's gasoline stations should have at least one biofuel pump. We should also work to give drivers other low-carbon energy choices such as electricity. We need super efficient flex-fuel vehicles that can plug in and run on electricity for at least part of the time.
  
  
• Improved fuel economy in cars and trucks and more independence from driving. We won't break our oil addiction without making our use of fuel more efficient, and so ramped up biofuels production must go hand in hand with improvements in fuel economy performance. We also need to build more livable, walkable communities so that we don't always have to jump in our cars for basic necessities, like getting to work or school, or buying a quart of milk.

last revised 6.19.07