Clean fuel standards driving biofuel industry

Within the next decade, the U.S. biofuel market could be worth more than $60 billion with 26 biorefineries expected to open by 2015, according to research by environmental policy advocates Environmental Entrepreneurs (E2).

According to E2, U.S. and Canadian biofuel production capacity increased from 427 million gallons in 2011 to more than 685 million gallons in 2012 and is expected to increase to 2.6 billion gallons by 2015.

States that will benefit the most from the biofuel industry are those that support sound clean fuel policies. The Federal Renewable Fuel Standard creates incentives for fuel companies to diversify their offerings beyond petroleum based fuels. In order to integrate clean fuels into the mix, some states use tax incentives while others like California and Oregon have mandates like the Low Carbon Fuel Standard. Programs like California's Alternative and Renewable Fuel and Vehicle Technology (AB 118) have been helpful in getting companies to open new operations inside California.

California is home to nearly 30 advanced biofuel companies. Combined, there are now more than 80 advanced biofuel companies, refineries and related operations located in at least 27 states.

"We've got the resources, the knowledge and the technology to put our country on a path to meet our transportation needs with cleaner fuels," said Mary Solecki, clean fuels analyst at E2. "In addition to benefiting the economy, the clean fuel industry benefits the environment by lowering the carbon content of our nation's fuel mixture. And by reducing our dependence on foreign oil, the clean fuel industry also is helping bolster our national security."

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