An investigation of U.S. national energy policy supportng the biofuel industry including a case study of illinois soy oil and biodiesel production
Date
2014
Authors
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Publisher
University of Delaware
Abstract
This thesis reviews U.S. national energy policy and the Renewable Fuel Standards (RFS) to project the future of soybean oil for food and biodiesel use in local industry. The research issues include whether the food and fuel industries are in balance locally and nationally and if the U.S. blenders' tax credit has increased foreign imports and if so, could an increase in import tariffs better control the domestic biodiesel market if local producers are in jeopardy due to the increase in imports. Linear programming is used for optimization by location analysis of soybean processing and refining in the state of Illinois. A model is developed that found at the Illinois boundaries, processors are exporting soy oil outside the state whether for food and/or biodiesel as Illinois is able to meet their local demand for biodiesel. One significant implication of this study is the proven Energy Title programs which support the biodiesel production for a reduction in greenhouse gases to meet the RFS with 1.2 billion gallons of biodiesel by 2022. This thesis explores the need for consistent and long-term collaboration such as the Energy Title, increased import tariffs and the biodiesel blenders' tax credit to show true congressional support to supply economic growth, jobs and environmental health in the United States. This research also explores the benefits of biodiesel concerning reduction of greenhouse gas emissions, petroleum imports for energy security and fuel efficiency, as well as ways and means in which the biodiesel industry may be growing in the United States.