Deep Dive: Bioenergy

Taxpayers and the federal government helped launch the U.S. biofuels and biomass industries. Bioenergy subsidies, along with duplicative and counterproductive biofuels infrastructure tax credits, loan guarantees, and the federal Renewable Fuel Standard (RFS) consumption mandate, helped the industry overproduce and grow to a size that would not have been possible without taxpayer support. Bioenergy was intended to significantly reduce greenhouse gas (GHG) emissions and move the U.S. away from fossil fuels. However, in practice, federal policies and subsidies do not significantly reduce GHG emissions as once intended. Current incentives may even increase and accelerate the impacts of climate change.

Real climate solutions will involve learning lessons from past bioenergy mistakes and forgoing the continuation of status quo, special interest subsidies.

Read more:

Understanding U.S. Corn Ethanol and Other Corn-Based Biofuels Subsidies:  A report on federal subsidies for the mature corn ethanol, corn oil biodiesel, and other corn-based biofuels industries.
Renewable Fuel Standard Program: A fact sheet on the federal biofuels mandate, including how the RFS fails to adequately reduce greenhouse gas emissions as once intended.
Rural Energy for America Program: A fact sheet on the Dept. of Agriculture’s REAP program which was intended to support rural renewable energy projects but has also subsidized the mature biofuels industry.

Pain at the Pump: A weekly wastebasket on why instead of increasing subsidies and mandates for food-based biofuels that do more harm than good, policymakers should zero in on real climate solutions

Political Footprint: Biofuels Industry: A report on the biofuel industry’s lobbying efforts to continue to receive subsidies and preferential treatment.
Letter to Senate Finance Committee on Clean Energy for America Act: A letter detailing how new energy tax incentives could expand subsidies for bioenergy that fails to reduce GHG emissions.
Biodiesel Bonanza: A report on federal biodiesel subsidies, primarily the $3 billion/year market-distorting biodiesel tax credit.
Biomass Subsidy Fact Sheet:  An analysis of federal subsidies and tax credits for the US biomass industry, particularly woody biomass.
Biofuel Infrastructure Subsidies: A factsheet on subsidies to the U.S. biofuels industry through biofuel infrastructure programs, including the Biofuel Infrastructure Partnership (BIP) and Higher Blends Infrastructure Incentive Program (HBIIP).
Top Ten Bioenergy Budget-Busters in Reconciliation Bill: An analysis of bioenergy subsidies created and expanded in the FY22 Budget Reconciliation Bill.