United States
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| Population: | 298,444,215 (July 2006)1 |
|---|---|
| GDP (PPP): | $12.31 trillion (2005)1 |
| Petroleum – consumption – imports: – Gasoline to diesel ratio: | 20.03 mil. bbl/day (2003)1 13.15 mil. bbl/day (2004)1 80% to 20% |
| Electricity – consumption – Main sources: | 3.656 tri. kWh (2003)1 50% coal, 19% nuclear, 17.5% gas, 7% hydro, 3% oil, 1% biomass2 |
| Renewable energy targets: | 5% to 30% of electricity in 20 states (including DC).3 |
| Ethanol – production: – target: – feedstocks: | 4,855 mil. gal. (2006)6 28.35B liters of biofuels by 20124 corn |
| Biodiesel – production: – target – feedstocks: | 250 mil. gal. (2006)6 see ethanol soy, Canola, Peanuts, waste oil |
| 1: World Factbook, 2: IEA 3: REN21 Renewables Global Status Report 2005 p. 20, 4: UNCTAD (PDF) p.20-21., 5:Earthpolicy.org World Ethanol and Biofuels Report, p. 365. 6:USDA estimate | |
Contents |
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Background
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Liquid biofuel use in the United States
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Ethanol
- The United States is the world's largest producer of ethanol, with an annual production capacity in 2008 of 8.06 billion gallons.[1]
- The United States produced and consumed approximately 5 billion gallons in 2006, an increase of about 28% over 2005, when about 3.9 billion gallons were produced.2
- Almost all of domestically produced ethanol was produced from corn, utilizing 20% of the US total corn crop.1
- By energy, ethanol accounted for approximately 1.5% of US crude oil consumption and 2% of gasoline consumption.1
- There are at least 73 ethanol plants under construction and another 8 facilities expanding. This could bring ethanol capacity in the United States to 11.4 billion gallons per year by 2008-09 or before1.
- E85 use is being promoted, for use in flex-fuel cars. However, E85 is available at less than 0.5% of gasoline retailers.[2]
- Click here for more "Ethanol, Biodiesel and E-85 Statistics" for the United States and the state of Indiana.
- There is concern regarding the environmental implications of increased production of corn for ethanol production (the so-called "corn surge"). For more information, see Corn-based ethanol production compromises goal of reducing nitrogen export by the Mississippi River" (PNAS article).
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Biodiesel
- United States production of biodiesel in 2007 is estimated to have been 85% soybean, 5-12% waste oil, cottonseed, canola, and palm, with the remaining 3-10% coming from animal fats according to the National Biodiesel Board.[3]
- USDA estimates that US biodiesel production was 250 million gallons in 2006.
- Most of the biodiesel in the US is produced from soybeans.1
- About 7% of US soybean production is expected to go into biodiesel production in 2006/2007.1
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Initiatives
- 25x'25 - a multi-sectoral initiative to promote the vision that "By 2025, America's working lands will provide 25 percent of the total energy consumed in the United States while continuing to produce abundant, safe and affordable food, feed, fiber and fuel."[4]
- Impacts on U.S. Energy Expenditures of Increasing Renewable Energy Use by Bernstein, Mark A., Griffin, Jay Lempert, Robert, RAND Corporation, November 2006. Report states that 25% of US electricity and vehicle fuel could be replaced with renewables at little or no cost to the economy.
- Governors' Ethanol Coalition - A coalition of State Governor's who are working towards an increase use of domestic ethanol.
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Policies
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National-level laws and policies
- Biomass Research and Development Act of 2000
- Energy Policy Act of 2005 (P.L. 109-58)
- includes Department of Energy Loan Guarantee program; Production Incentives for Cellulosic Biofuels program; and Integrated Biorefinery Demonstration Projects[5]
- Farm Bill
- Section 9006 - USDA Announces Grant and Loan Guarantee Availability for Renewable Energy and Energy Efficiency Projects.
- The "President's Biofuels Initiative"
- President's Twenty in Ten - The President's plan, announced at the 2007 State of the Union address, calls for reducing US gasoline consumption by 20% in ten years. It includes a fuel standard of 35 billion gallons of renewable and alternative fuels in 2017, including corn ethanol, [cellulosic ethanol]], biodiesel, methanol, butanol, and hydrogen. This would displace 15% of US gasoline consumption.
- Research Support
- Funds to Increase Renewable Energy Production, Promote Energy Saving - Department of Agriculture selected 12 projects "to receive over $9 million in loan guarantees and grants to fund renewable energy and energy efficiency projects."
- The Sun Grant Initiative - "a national network of land-grant universities and U.S. Department of Energy laboratories partnering to build a biobased economy."[6]
- Renewable Fuel Standards; included in the Energy Policy Act of 2005, which promotes expanded use of renewable energy.
- .A World Resource Institute report from September 2006, entitled Beyond the RFS: The Environmental and Economic Impacts of Increased Grain Ethanol Production in the U.S. examines the impact of the RFS on ethanol production and the possible impact of increase corn for ethanol production on the economy and the environment.
- Subsidies
- Tax credits
- Production Tax Credit (PTC)
- Volumetric Ethanol Excise Tax Credit (VEETC)
- A federal tax credit instituted in 2004 that provides a tax credit of $0.51 per gallon of renewable fuel sold through the end of 2010.
- Tariffs
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Proposed laws and policies
- Proposed national laws and policies:
- Vehicle and Fuel Choices for American Security Act (S. 2025 & H.R. 4409).
- Intended to reduce demand for oil "by 36% in 25 years" through "1) boosting efficiency in heavy trucks, tires and cars; 2) dramatically ramping up production and distribution of alternative fuels; and 3) funding for more transit in targeted areas." (Source: "The Heat Is On" by Deron Lovaas, Natural Resources Defense Council)
- Vehicle and Fuel Choices for American Security Act (S. 2025 & H.R. 4409).
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State-level laws and policies
- California: Executive Order S-06-06: establishes "targets for the use and production of biomass products," including "for California to produce a minimum of twenty percent of its own biofuels by 2010 and forty percent by 2020." (Reference: Western Milling Press Release)
- The California Biomass Collaborativewith the California Energy commission has released A Roadmap for the Development of Biomass in California (Draft)(PDF) to meet their biofuel targets.
- Proposed state laws:
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Detailed information on individual states
- See California and New York .
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Organizations
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Government Organizations
- Department of Agriculture (USDA)
- US Forest Service (USFS)
- Woody Biomass Users Group (Woody BUG) - The Woody BUG is an interagency group involving five federal departments and at least seven agencies (including USDA and the Forest Service). The Woody BUG is chartered under the Biomass R&D Board, an executive level interagency group working to coordinate biomass research, development and deployment.
- Department of Commerce (DOC)
- Department of Defense (DOD)
- Diversified Energy Team wins Department of Defense Renewable Fuel Production Contract, Biopact, 12 December 2007, The contract is for the development of a portable renewable fuel system based on a gasification technology developed by these companies. The technology will use the waste products of military installations as a feedstock.
- The DOD-affiliated Cebrowski Institute hosts "Energy Conversations"
- The website of the Cebrowski Insitute states that "Just as the Defense Department played a critical role in forging the information revolution in past decades, so can the Department play a similar critical role in fueling the energy revolution in coming decades."
- Department of Education
- Department of Energy (DOE)
- Department of the Interior (DOI)
- Department of Transportation (DOT)
- Environmental Protection Agency (EPA)
- Federal Trade Commission (FTC)
- U.S. Congress
- House of Representatives
- Senate
- Environment and Public Works (EPW) Committee
- Also to be added, list of congressional statements. See publications.
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Companies
- Go to Companies in the United States for a list of US bioenergy companies.
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Non-profit Organizations
- Click here for a list of non-profit organizations in the US active on bioenergy issues.
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Industry organizations
Go here for a list of industry organizations.
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News
- U.S. will fail to meet biofuels mandate -EIA, 17 December 2008 by Reuters: "The United States will fall well short of biofuels mandates on the uncertain development of next-generation fuels made from grasses and wood chips, the government's top energy forecasting agency said on Wednesday."
- "The country, the world's top producer of the main biofuel ethanol, will only blend about 30 billion gallons of fuels like corn-based ethanol and the advanced fuels into gasoline by 2022. That is about 17 percent short of the U.S. mandate of 36 billion gallons by that year, the [Energy Information Agency (EIA)] said in the forecast."
- "It calls for corn ethanol, but also an increasing amount cellulosic ethanol made from fast-growing grasses and trees, and biodiesel made from non-food sources. Cellulosic is not yet made commercially."
- "For the moment U.S. ethanol capacity is too high, which is helping to make distilling ethanol barely profitable. U.S. capacity to make ethanol is slightly above the 2009 mandate for blending of 11.1 billion gallons of biofuels into gasoline."[8]
- U.S. biofuels sector sees ally in Obama, 5 November 2008 by The Guardian: "U.S. biofuel makers, struggling to make a profit at a time of tumbling oil and gasoline prices, look upon President-elect Barack Obama as a staunch ally for growth."
- Economy Shifts, and the Ethanol Industry Reels, 4 November 2008 by the New York Times: "As producers of ethanol navigate a triple whammy of falling prices for their product, credit woes and volatile costs for the corn from which ethanol is made, an economic version of 'Survivor' is playing out in the industry."
- "Last week, VeraSun, one of the nation’s largest ethanol producers, announced that it had filed for bankruptcy protection after its bets on the price of corn turned out to be wrong — and costly."
- "Fewer than 10 of the country’s ethanol plants have stopped operating, according to Matt Hartwig, a spokesman for the Renewable Fuels Association, an industry group. But construction times have slowed and some plants in the planning stage have been halted."[10]
- Economy Shifts, and the Ethanol Industry Reels, 4 November 2008 by the New York Times: "As producers of ethanol navigate a triple whammy of falling prices for their product, credit woes and volatile costs for the corn from which ethanol is made, an economic version of 'Survivor' is playing out in the industry."
- "Last week, VeraSun, one of the nation’s largest ethanol producers, announced that it had filed for bankruptcy protection after its bets on the price of corn turned out to be wrong — and costly."
- "Fewer than 10 of the country’s ethanol plants have stopped operating, according to Matt Hartwig, a spokesman for the Renewable Fuels Association, an industry group. But construction times have slowed and some plants in the planning stage have been halted."[11]
- Biofuel plants hit economic road block, 12 October 2008 by the Associated Press: "[W]eeds have begun to encroach on the [Lilbourn, MO] Great River Soy biodiesel plant, which produced just 94,000 gallons over two weeks before it ran out of money and was shuttered."
- "It's a scene that has been repeated throughout the United States."
- "Hopes ran high in many small towns amid an explosive interest in biofuels and a rush to build large plants. Unseen by planners, however, was the coming spike in crop prices and a financial meltdown unlike any that America has seen since the Great Depression."[12]
- U.S. announces 'Biofuels Action Plan', 7 October 2008 by Science News: "U.S. government officials have released the National Biofuels Action Plan (PDF file), an interagency plan to accelerate development of a sustainable biofuels industry."
- "U.S. Department of Agriculture Secretary Ed Schafer and Department of Energy Secretary Samuel Bodman said the plan is in response to President George Bush's goal of cutting U.S. gasoline consumption by 20 percent in the next 10 years.
- "Bodman said the plan is a 'strategic blueprint' showing the way to increasing biofuels production by 2022. He said the plan shows how to accomplish that goal 'in cost-effective, environmentally responsible ways that utilize a science-based approach to ensure the next generation of biofuels that are made primarily from feedstocks outside the food supply that are produced sustainably.'"[13]
- World needs to rethink biofuels - U.N. food agency, 7 October 2008 by Reuters: "The Western world needs to rethink its rush to biofuels, which has done more harm pushing up food prices than it has good by reducing greenhouse gases, a United Nations report said on Tuesday."
- "The U.N. Food and Agriculture Organisation (FAO) said policies encouraging biofuel production and use in Europe and the United States was likely to maintain pressure on food prices but have little impact on weaning car users away from oil."
- "Biofuels' rise could provide an opportunity for farmers in developing countries to develop the new cash crops, the report said, but that would only happen if subsidy regimes were changed to favour poorer countries rather than richer ones."[14]
- Biofuels surge slows in Southeast, 30 September 2008 by Southeast Farm Press: "'If each of the 171 completed biodiesel plants in the Southeast ran at full capacity, we would use 26.9 billion pounds of raw material. The U.S. produces 24.6 billion gallons of vegetable oil and another 11 billion pounds of animal fats. At current full capacity, Southeastern plants would use over 70 percent of all the fats produced across the U.S. That is not realistic,'" according to Don Camden, a Southeast regional manager for Cargill."[15]
- Republicans break with Bush on ethanol, 2 September 2008 by Reuters: "U.S. Republicans called on Monday for an end to a controversial requirement that gasoline contain a set amount of ethanol, a policy backed by the Bush administration that critics say has helped drive up world food prices."[16]
- Miscanthus can meet U.S. biofuels goal using less land than corn or switchgrass, 30 July 2008 press release by University of Illinois at Champaign-Urbana: "Using corn or switchgrass to produce enough ethanol to offset 20 percent of gasoline use – a current White House goal – would take 25 percent of current U.S. cropland out of food production, the researchers report. Getting the same amount of ethanol from Miscanthus would require only 9.3 percent of current agricultural acreage."[17]
- Uprising Against the Ethanol Mandate, 23 July 2008 by the New York Times: "The ethanol industry, until recently a golden child that got favorable treatment from Washington, is facing a critical decision on its future."
- "Gov. Rick Perry of Texas is asking the Environmental Protection Agency to temporarily waive regulations requiring the oil industry to blend ever-increasing amounts of ethanol into gasoline. A decision is expected in the next few weeks."[18]
- Biofuel policies in OECD countries costly and ineffective, says report, 16 July 2008 press release by the Organization for Economic Cooperation and Development (OECD): "Government support of biofuel production in OECD countries is costly, has a limited impact on reducing greenhouse gases and improving energy security, and has a significant impact on world crop prices, according to a new study of policies to promote greater production and use of biofuel in OECD countries."
- "OECD’s Economic Assessment of Biofuel Support Policies (PDF file) says biofuels are currently highly dependent on public funding to be viable. In the US, Canada and the European Union government support for the supply and use of biofuels is expected to rise to around USD 25 billion per year by 2015 from about USD 11 billion in 2006."
- "The report calls on governments to refocus policies to encourage lower energy consumption, particularly in the transport sector. It also calls for more open markets in biofuels and feedstocks in order to improve efficiency and lower costs."[19]
- US and EU urged to cut biofuels, 7 July 2008, BBC World News. "World Bank President Robert Zoellick has called for reform of biofuel policies in rich countries, urging them to grow more food to feed the hungry."
- Secret report: biofuel caused food crisis, 4 July 2008 in The Guardian: "Biofuels have forced global food prices up by 75% - far more than previously estimated - according to a confidential World Bank report obtained by the Guardian."
- "The figure emphatically contradicts the US government's claims that plant-derived fuels contribute less than 3% to food-price rises."
- U.N. Chief to Prod Nations On Food Crisis, 2 June 2008 by the Washington Post: "U.N. Secretary General Ban Ki-moon will issue an urgent plea to world leaders at a food summit in Rome on Tuesday to immediately suspend trade restrictions, agricultural taxes and other price controls that have helped fuel the highest food prices in 30 years, according to U.N. officials....The United Nations will also urge the United States and other nations to consider phasing out subsidies for food-based biofuels -- such as ethanol".
- The article notes that a "World Bank analyst estimated that biofuel production has accounted for 65 percent in the rise of world food prices, while the IMF has concluded that biofuel production is responsible for 'a significant part of the jump in commodity prices.'"
- "But the United States has defended the production of biofuels, saying it has driven down oil consumption over the past three years. 'According to our analysis, the increased biofuels production accounts for only 2 to 3 percent of the overall increase in global food prices,' said Agriculture Secretary Ed Schafer".[20]
- The article notes that a "World Bank analyst estimated that biofuel production has accounted for 65 percent in the rise of world food prices, while the IMF has concluded that biofuel production is responsible for 'a significant part of the jump in commodity prices.'"
- The World Food Crisis, 10 April 2008, editorial by the New York Times: "Last year, the food import bill of developing countries rose by 25 percent as food prices rose to levels not seen in a generation....The increases are already sparking unrest from Haiti to Egypt....The rise in food prices is partly because of uncontrollable forces — including rising energy costs and the growth of the middle class in China and India....But the rich world is exacerbating these effects by supporting the production of biofuels."
- "The International Monetary Fund estimates that corn ethanol production in the United States accounted for at least half the rise in world corn demand in each of the past three years."
- "At best, corn ethanol delivers only a small reduction in greenhouse gases compared with gasoline. And it could make things far worse if it leads to more farming in forests and grasslands. Rising food prices provide an urgent argument to nix ethanol’s supports."[21]
- Corn-Based Biofuels Spell Death for Gulf of Mexico, 13 March 2008 by Wired Magazine: "If the United States makes corn-based ethanol the centerpiece of its biofuel portfolio, the Gulf of Mexico's vast dead zone will expand and become impossible to control, says a study published this week in the Proceedings of the National Academy of Sciences."
- Corn "is almost universally regarded as an environmentally unfriendly crop that compares poorly to other biofuel sources and requires enormous quantities of fertilizers and pesticides to grow."
- Link to the scientific article: "Corn-based ethanol production compromises goal of reducing nitrogen export by the Mississippi River"
- Study: biofuels industry added 10% to Iowa's GDP in 2007, 1 February 2008, Biopact. The study, published by the Iowa Renewable Fuels Association finds that the construction of new biorefineries for both biodiesel and ethanol has driven growth in the agricultural economy, especially in rural areas.
- $114m investment in four biorefineries by US DoE, 29 January 2008, Biofuel Review, four facilities for producing cellulosic ethanol will be constructed. The facilities are small scale, only ten percent of commercial size.
- "Corn... fuel... fire! U.S. corn subsidies promote Amazon deforestation", 8 January 2008 press release from the Smithsonian Tropical Research Institute: According to STRI researcher William Laurance, "Amazon deforestation and fires are being aggravated by US farm subsidies...that promote American corn production for ethanol." Corn subsidies also result in farmers reducing production of soy -- thus increasing global soy prices, which in turn promotes burning of forests in the Brazilian Amazon in order to clear land for soy cultivation.
- According to Laurance, "The evidence of a corn connection to the Amazon is circumstantial, but it's about as close as you ever get to a smoking gun."[22]
2007 News:
- San Francisco Fleet is All Biodiesel from the New York Times, 14 December 2007, the mayor announced that the city has completed a year-long project to convert its entire vehicle fleet to biodiesel created from midwestern soy oil.
- Diversified Energy Team wins Department of Defense Renewable Fuel Production Contract, Biopact, 12 December 2007, The contract is for the development of a portable renewable fuel system based on a gasification technology developed by these companies. The technology will use the waste products of military installations as a feedstock.
- US and China sign biofuels cooperation pact, Biopact, 11 December 2007, The two governments have signed a memorandum of understanding that they will share technology through scientific exchanges. It is hoped that this initiative will help meet both countries' lofty goals for biofuels, and assist farmers in the process.
- Hillary Clinton outlines ambitious biofuels plan: 60 billion gallons by 2030, From Biopact, Clinton outlined her plan to dramatically increase biofuels production in the United States.
- Brazil case accents need for new biofuels rules. Brazil is preparing to finally take their case against US ethanol tariffs before the WTO. It is expected that regardless of the results of the case, the WTO will be prompted to develop new rules for the regulation of biofuels.
- European biodiesel board threatens legal action against US biodiesel subsidies. According to Biopact, the board claims that a sharp increase in exports of biodiesel from the United States to Europe can only be explained by unfair practices that they may challenge in front of the WTO.
- Tropical maize could become biofuel supercrop in the US, similar to sugarcane. "Scientists from the University of Illinois who are studying tropical maize have found that when the crop is grown in the US, it does not produce grain, but stores far more sugar in its stalks instead."
- Solar Panels, Biofuel and Tidal Turbines in Bloomberg Plans, 12 June 2007 from the New York Times. The mayor of New York City has announced a plan to increase renewable energy use through tide-driven turbines, as well as outfitting municipal buildings with solar panels and buying heating oil containing biofuels. By summer 2008, "30 percent of the city’s heating oil purchases would be required to contain 5 percent biofuel, which could grow to 10 percent by 2010 and 20 percent by 2012. A City Councilman has also proposed a requirement that private buildings, including homes and offices, use a 5 percent mix by 2009, increasing to a 20 percent mix by 2012.
- Bush Makes a Pitch for Amber Waves of Homegrown Fuel, 23 February 2007 by the New York Times, noted that "to promote his goals for making alternative fuels from switch grass, woodchips and other plant waste", President Bush visited a Novozymes North America laboratory in North Carolina that is "developing enzymes to make cellulosic ethanol".
- Bush mentioned that rising demand for ethanol has led to increased corn prices. “'We got a lot of hog growers around the United States, and a lot of them here in North Carolina, who are beginning to feel the pinch as a result of high corn prices,'” he said. 'The question, then, is how do you achieve your goal of less dependence on oil without breaking your farmers — without breaking your hog raisers?'”
2006 News:
- US Congress Extends Ethanol Tariff to 2009 11 December 2006 from Greencarcongress.com. Both Houses of Congress voted to extend the 54 cent tariff on imported ethanol until January 1, 2009. President Bush is expected to sign the measure.
- Stover to Fill Part of Ethanol Goal for US 22 November from the Des Moines Register. A report issued by the Biotechnology Industry Organization on Tuesday estimated that it was "realistic" to harvest 30 percent of the available stover nationwide to yield 5 billion gallons of ethanol. Most of the stover would continue to be left in the field for environmental reasons as the decaying plant material prevents soil erosion and adds ground nutrients. The US DOE has set a goal of 60 billion gallons of ethanol by 2030. However that goal assumed the use of 70% of stover for ethanol.
- First Commercial-sized Cellulosic Ethanol Plant in US to be built in Iowa 21 November 2006 from the Des Moines Register. The Broin Cos. plant will be converted from a 50 million-gallon-a-year conventional corn dry mill facility into a 125 million-gallon-a-year commercial-scale biorefinery producing ethanol not only from corn but also corn stalks, leaves and cobs. The $200 million plant expansion is scheduled to begin in February and take about 30 months to complete. Iowa already has 25 ethanol plants producing about 1.6 billion gallons of ethanol, more than any other state.
- US Ethanol Industry Growth to Slow, say Economists 14 November 2006 from the Des Moines Register. Iowa State University economists cautioned that increased costs and delays in ethanol plant construction, transportation bottlenecks, and rapidly rising corn prices signaled that the expansion of the ethanol industry might be cooling.
- US Ethanol industry on pace for 20+% growth in annual production 8 November 2006 from greencarcongresscom. "US ethanol production is currently averaging nearly 4.7 billion gallons a year, a 20.5% increase from the 3.9 billion gallons produced in 2005. In August, US producers averaged 329,000 barrels per day (bpd)—a record for daily production average and an increase of 69,000 bpd from August 2005."
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Events
Also see the main events page. 2009:
- 1-4 February 2009, San Francisco: 2009 National Biodiesel Conference & Expo. (Theme: biodiesel)
2008:
- 4-6 February 2009, Washington, D.C., USA: Good Jobs, Green Jobs National Conference. Organized by the Blue Green Alliance and others. (Themes: climate change, green technology)
- 13-14 March 2008, Washington, D.C., USA: The National Academies Summit on America's Energy Future - Features "presentations by leading thinkers on energy policy from the U.S. government (state and federal), universities, and the private sector, as well as international perspectives." (Themes: energy security, economy, environment)
- 3-4 December 2008, Washington, D.C., USA: 7th Annual Phase II of Renewable Energy in America National Policy Forum. (Themes: policy, renewable energy, United States)
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Publications
- Sustainable Ethanol: Biofuels, Biorefineries, Cellulosic Biomass, Flex-Fuel Vehicles, and Sustainable Farming for Energy Independence, authors Goettemoeller, Jeffrey and Adrian Goettemoeller, Praire Oak Publishing, Maryville, Missouri, 2007, 195 pages. ISBN 978-0-9786293-0-4.
- This book presents a very comprehensive stat-of-the-art of the ethanol industry in the United States up to early 2007.
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References
1Biofuels: Statement Of Keith Collins Chief Economist, U.S. Department Of Agriculture Before The U.S. Senate Committee On Agriculture, Nutrition And Forestry (PDF) - 10 January 2007.
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