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Cellulosic Biofuels: Analysis of Policy Issues for Congress
Introduction
Cellulosic biofuels are produced from cellulose' derived from renewable biomass feedstocks such
as corn stover (plant matter left in the field after harvest), switchgrass, wood chips, and other
plant or waste matter. Current production consists of a few small scale pilot projects-and
significant hurdles must be overcome before industrial-scale production can occur.
Ethanol produced from corn starch and biodiesel produced from vegetable oil (primarily soybean
oil) are currently the primary U.S. biofuels.2 High oil and gasoline prices, environmental
concerns, rural development, and national energy security have driven interest in domestic
biofuels for many years. However, the volume of fuel that can be produced using traditional row
crops such as corn and soybeans without causing major market disruptions is limited; to fulfill
stated goals, biofuels must also come from other sources that do not compete for the same land
used by major food crops. Proponents see cellulosic biofuels as a potential solution to these
challenges and support government incentives and private investment to hasten efforts toward
commercial production. Some federal incentives-grants, loans, tax credits, and direct
government research-attempt to push cellulosic biofuels technology to the marketplace.
Demand-pull mechanisms such as the renewable fuel standard (RFS) mandate the use of biofuel
blends-creating an incentive for the development of a new technology to enter the marketplace.
In contrast, petroleum industry critics of biofuel incentives argue that technological advances
such as seismography, drilling, and extraction continue to expand the fossil-fuel resource base,
which has traditionally been cheaper and more accessible than biofuel supplies. Other critics
argue that current biofuel production strategies can only be economically competitive with
existing fossil fuels in the absence of subsidies if significant improvements to existing
technologies are made or new technologies are developed. Until such technological
breakthroughs are achieved, critics contend that the subsidies distort energy markets and divert
research funds from the development of other renewable energy sources not dependent on internal
combustion technology, such as wind, solar, or geothermal, which offer potentially cleaner, more
bountiful alternatives. Still others debate the rationale behind policies that promote biofuels for
energy security, questioning whether the United States could ever produce and manage sufficient
feedstocks of starches, sugars, vegetable oils, or even cellulose to permit biofuel production to
meaningfully offset petroleum imports. Finally, there are those who argue that the focus on
development of alternative energy sources undermines efforts to score energy savings through
lower consumption.
The Renewable Fuel Standard: A Mandatory Usage Mandate
Principal among the cellulosic biofuels goals to be met is a biofuels usage mandate-the
renewable fuel standard (RFS) as expanded by the Energy Independence and Security Act of
2007 (EISA, P.L. 110-140, Section 202)-that includes a specific carve-out for cellulosic
biofuels.3 The RFS is a demand-pull mechanism that requires a minimum usage of biofuels in the
nation's fuel supply. This mandate can be met using a wide array of technologies and fuels.
1 Cellulose is the structural component of the primary cell wall of green plants.
2 For more information on ethanol, see CRS Report R40488, Ethanol: Economic and Policy Issues, by Randy Schnepf.
s For more information on the RFS, see CRS Report R40155, Selected Issues Related to an Expansion of the
Renewable Fuel Standard (RFS), by Randy Schnepf and Brent D. Yacobucci.Congressional Research Service
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Bracmort, Kelsi; Schnepf, Randy; Stubbs, Megan & Yacobucci, Brent D. Cellulosic Biofuels: Analysis of Policy Issues for Congress, report, February 1, 2010; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc806727/m1/5/: accessed July 17, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.