New reports tend to emphasize our over dependence on foreign oil. This may somewhat be true, but it is equally true that the government has being actively doing something about it. Did you know in 2007 that the Energy Independence and Security Act became law? In this act known as EISA, it mandates a renewable fuel standard of 36 billion gallons of biofuel by 2022.
What is biofuel? Biofuel is fuel produced from plants, animals, or their by products. This fuel is considered renewable. It has no end as long as there are plants or animals. At the present time ethanol is the biofuel of choice. Ethanol is commonly used in our cars since many gas stations have gas available that has up to 10% blending of gasoline and ethanol.
The government encourages biofuel production and use with tax credits. This is not the only benefit of using biofuel. Production of biofuel stimulates the economy. In a study done by the U.S. Department of Agriculture for its Economic Research Service report October 2010, the effects of the renewable fuel standard on the economy was estimated by measuring the gross domestic product, household income and consumption, price and quantity of energy fuels and agricultural production. What the study found was if oil prices continue to rise as predicted by the U.S. Department of Energy, and favorable polices happen with biofuels, then our economy would expand. The U. S. would receive higher prices for exports, and. pay less for imports. It was, also, noted that improving technology and providing an investment opportunity could add to the expansion of the economy as well. In laymen’s terms that means more money and more jobs for Americans.
None of this is a quick solution. It takes time to change people’s consumption behavior and to create new businesses for new technologies. It sounds like in this realm the American spirit is back.