Biofuels: Past, Present, and Future

Biofuels are a fixture of modern US fuels markets due largely to the Renewable Fuel Standard, which was passed 20 years ago. We provide a broad overview of modern federal biofuel policies, highlighting key industry trends and policy controversies. We divide our focus into past versus present issues. Past issues include concerns over food price impacts and land use changes due to the policies, as well as the limited ability of mandates to spur investment and bring down the cost of low-carbon cellulosic ethanol production. Present issues include the increasing importance of state policies and the rise of the renewable diesel industry. We conclude by discussing emerging markets for sustainable aviation fuel and the return of concerns around food price effects, land use change impacts, and the scarcity of low-cost, low-carbon biofuels.