Bioenergy

Bioenergy—produced from recently living organic materials, or biomass—can be used to generate fuel, electricity, heat, and other products. For decades, federal support for bioenergy has included billions in subsidies through tax incentives, loan guarantees, grants, and production mandates. These subsidies often shift costs and liabilities to taxpayers and come with unintended consequences for consumers, farmers, and food-related industries.

Bioenergy subsidies—particularly for corn ethanol and other food- and feed-based fuels—distort markets, raise food and fuel prices, increase emissions, and frequently undercut other federal priorities. Reducing or eliminating these subsidies would help avoid future taxpayer liabilities and focus federal resources on more cost-effective, beneficial energy solutions.