How the BILLION GALLON CHALLENGE Can Get Cellulosic Biofuels Off the Ground

The Union of Concerned Scientists argues that cellulosic biofuel production in the U.S. is failing to meet government mandates due to a lack of investment capital and high risks for first-movers. To address this, they propose the 'Billion Gallon Challenge,' which would provide a 30-percent investment tax credit and loan guarantees to establish 10 to 20 commercial-scale facilities with a combined capacity of 1 billion gallons per year. This initiative aims to bridge the gap between current Energy Information Administration forecasts and the Renewable Fuel Standard's 2022 goal of 16 billion gallons, potentially saving 7 billion gallons of gasoline and reducing global warming emissions by 45 million metric tons annually by 2022.

• Cellulosic biofuel production in the United States is significantly trailing government mandates. The Environmental Protection Agency reduced the 2010 requirement from 100 million gallons to 6.5 million gallons, and the Energy Information Administration predicts that annual production will not reach 1 billion gallons until 2017, resulting in a projected shortfall of over 10 billion gallons by 2022.
• Existing financial supports, such as a $1.01 tax credit and loan guarantees, are insufficient because they are better suited for mature industries and do not address the high initial capital costs and risks faced by companies building the first commercial-scale facilities.
• The proposed 'Billion Gallon Challenge' aims to establish 10 to 20 commercial-scale facilities to achieve an initial capacity of 1 billion gallons per year. The package includes a 30-percent investment tax credit—which would decrease by 6 percent for every additional billion gallons of capacity—and loan guarantees that phase out as technology is proven.
• Implementing the Billion Gallon Challenge is estimated to cost approximately $4 billion over four or more years. If successful in aligning production with RFS mandates by 2022, it could displace 7 billion gallons of gasoline consumption and avoid 45 million metric tons of global warming pollution annually.

APA

Union of Concerned Scientists (2010). How the BILLION GALLON CHALLENGE Can Get Cellulosic Biofuels Off the Ground. https://www.ucs.org/sites/default/files/2019-09/How-to-Get-Cellulosic-Biofuels-Off-the-Ground.pdf

Chicago

Union of Concerned Scientists. How the BILLION GALLON CHALLENGE Can Get Cellulosic Biofuels Off the Ground. 2010. https://www.ucs.org/sites/default/files/2019-09/How-to-Get-Cellulosic-Biofuels-Off-the-Ground.pdf.

Wikipedia

{{cite report |author=Union of Concerned Scientists |title=How the BILLION GALLON CHALLENGE Can Get Cellulosic Biofuels Off the Ground |date=May 2010 |url=https://www.ucs.org/sites/default/files/2019-09/How-to-Get-Cellulosic-Biofuels-Off-the-Ground.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{unionofconcernedscientists2010how, author = {{Union of Concerned Scientists}}, title = {{How the BILLION GALLON CHALLENGE Can Get Cellulosic Biofuels Off the Ground}}, institution = {Union of Concerned Scientists}, year = {2010}, month = may, url = {https://www.ucs.org/sites/default/files/2019-09/How-to-Get-Cellulosic-Biofuels-Off-the-Ground.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }