Realizing the Promise of CLEAN BIOFUELS

The Union of Concerned Scientists argues that current U.S. biofuels tax credits, particularly the Volumetric Ethanol Excise Tax Credit (VEETC), are ineffective because they primarily benefit oil companies and fail to stimulate additional production beyond the requirements of the Renewable Fuel Standard (RFS). The document proposes a Biofuels Performance Tax Credit of $10 per million Btu, which would reward producers based on their ability to reduce global warming emissions and replace oil. This proposed shift could save $5 billion annually starting in 2011 and reduce global warming emissions by up to 50 million metric tons per year by 2022.

• Current biofuels tax credits, specifically the Volumetric Ethanol Excise Tax Credit (VEETC), do not increase production or provide economic aid to farmers because the Renewable Fuel Standard (RFS) already mandates the purchase of large biofuel volumes. These credits cost taxpayers over $5 billion annually and primarily benefit oil companies that blend the fuels.
• Existing tax policies disproportionately support conventional corn ethanol. If extended through 2014, conventional biofuels would receive nearly $22 billion (76% of the total), while biodiesel would receive $3.4 billion (12%) and cellulosic biofuels would receive 11%.
• The proposed Biofuels Performance Tax Credit would offer $10 per million Btu based on the replacement of oil and the reduction of global warming emissions. A biofuel with zero life-cycle emissions could receive a maximum credit of $1.15 per gallon of gasoline replaced.
• Implementing the Biofuels Performance Tax Credit could result in annual taxpayer savings of $5 billion starting in 2011 and reduce global warming emissions by up to 50 million metric tons per year by 2022, which is equivalent to removing approximately 8 million cars and light trucks from the road.

APA

Union of Concerned Scientists (2010). Realizing the Promise of CLEAN BIOFUELS. https://www.ucs.org/sites/default/files/2019-09/The-Promise-of-Clean-Biofuels.pdf

Chicago

Union of Concerned Scientists. Realizing the Promise of CLEAN BIOFUELS. 2010. https://www.ucs.org/sites/default/files/2019-09/The-Promise-of-Clean-Biofuels.pdf.

Wikipedia

{{cite report |author=Union of Concerned Scientists |title=Realizing the Promise of CLEAN BIOFUELS |date=May 2010 |url=https://www.ucs.org/sites/default/files/2019-09/The-Promise-of-Clean-Biofuels.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{unionofconcernedscientists2010realizing, author = {{Union of Concerned Scientists}}, title = {{Realizing the Promise of CLEAN BIOFUELS}}, institution = {Union of Concerned Scientists}, year = {2010}, month = may, url = {https://www.ucs.org/sites/default/files/2019-09/The-Promise-of-Clean-Biofuels.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }