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The Union of Concerned Scientists argues that current U.S. biofuel policies are costly and ineffective, primarily supporting mature corn ethanol industries while cellulosic biofuels remain stalled. The report proposes 'The Billion Gallon Challenge' to provide investment tax credits and loan guarantees for 10 to 20 new commercial-scale cellulosic facilities. Additionally, it suggests replacing existing tax credits with a 'Biofuels Performance Tax Credit' that rewards fuels based on their ability to replace oil and reduce global warming emissions. Together, these measures could reduce global warming emissions by nearly 100 million metric tons annually by 2022.

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  • Extending existing biofuels tax credits is projected to cost nearly $100 billion (in 2009 dollars) over 10 years, with over 60 percent of those funds supporting mature industries like soybean biodiesel and corn ethanol.
  • An investment of $4 billion in loan guarantees and investment tax credits could enable the construction of 10 to 20 new commercial-scale facilities, reaching an annual production capacity of 1 billion gallons of cellulosic biofuels.
  • The successful commercialization of cellulosic biofuels and adherence to Renewable Fuel Standard (RFS) mandates could lower global warming emissions by 45 million metric tons per year by 2022 compared to status quo projections.
  • Replacing current tax credits with a Biofuels Performance Tax Credit would save $20 billion between 2011 and 2014 and incentivize the adoption of cleaner technologies across all biofuel types.
  • Upgrading technology at all existing corn ethanol facilities has the potential to reduce global warming emissions by more than 20 million metric tons annually.
  • The combined implementation of the Billion Gallon Challenge and the Biofuels Performance Tax Credit could reduce global warming emissions by nearly 100 million metric tons per year by 2022, which is equivalent to removing 15 million cars and light trucks from the road.

Cite the original document

APA
Union of Concerned Scientists (2010). THE BILLION GALLON CHALLENGE. https://www.ucs.org/sites/default/files/2019-10/Billion-Gallon-Challenge-Executive-Summary.pdf
Chicago
Union of Concerned Scientists. THE BILLION GALLON CHALLENGE. 2010. https://www.ucs.org/sites/default/files/2019-10/Billion-Gallon-Challenge-Executive-Summary.pdf.
Wikipedia
{{cite report |author=Union of Concerned Scientists |title=THE BILLION GALLON CHALLENGE |date=May 2010 |url=https://www.ucs.org/sites/default/files/2019-10/Billion-Gallon-Challenge-Executive-Summary.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{unionofconcernedscientists2010billion, author = {{Union of Concerned Scientists}}, title = {{THE BILLION GALLON CHALLENGE}}, institution = {Union of Concerned Scientists}, year = {2010}, month = may, url = {https://www.ucs.org/sites/default/files/2019-10/Billion-Gallon-Challenge-Executive-Summary.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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