US Takes Historic Energy Steps

A Watershed Moment for Renewable Fuels
The impact of this new legislation would seem obvious at first blush. It ensures that a significant market will exist for renewable fuels like ethanol and drives technology to more sustainable processes. Certainly, a requirement to blend 36 billion gallons of renewable fuel annually provides solid footing from which the American cellulosic ethanol industry will grow.

The real importance of this legislation, and the reason it will be looked back upon as a watershed moment in United States history, is the pragmatic approach it takes in beginning to ensure a more stable and sustainable energy and environmental future.

Recognizing that there are limits to ethanol production from grain given today’s technology, this legislation reasonably limits the amount of grain-based ethanol to 15 billion gallons annually by 2015. This is an important number as anyone who has looked at the issue of food and fuel responsibly has said that American ethanol producers could produce 15 billion gallons from corn without damaging other world markets for grain.

More importantly, the legislation recognizes that to achieve the kind of renewable fuel production needed in the United States and around the globe, next generation technologies like cellulosic ethanol will be required. By providing a meaningful market for ethanol from non-grain sources, it signals ethanol producers and investors alike that the time is right to accelerate the research and development of next generation technologies. It allows them to take greater financial risks that will lead to commercialization of cellulosic ethanol technology much sooner than conventional wisdom suggests.

The renewable fuels industry, both in the United States and around the globe, is far from a mature industry. It continues to face opposition from established interests who are desperately seeking to maintain the control over world energy markets they have enjoyed for decades. To fully realize the benefits of a robust global renewable fuels industry, it is incumbent upon nations to develop, implement and use renewable fuel technologies that most appropriately meet their needs. By enacting the Energy Independence and Security Act of 2007, the United States is sending a signal to the world that it is committed to the promise of renewable fuels.