Biofuels: DOE Lacks a Strategic Approach to Coordinate Increasing Production with Infrastructure Development and Vehicle Needs
Highlights
The U.S. transportation sector is almost entirely dependent on oil, a condition that poses significant economic and environmental risks. Biofuels, such as ethanol and biodiesel, have the potential to displace oil use in transportation fuel. GAO was asked to describe the status of and impediments to expanding biofuel production, distribution infrastructure, and compatible vehicles as well as federal policy options to overcome the impediments. GAO was also asked to assess the extent to which the Department of Energy (DOE) has developed a strategic approach to coordinate the expansion of biofuel production, infrastructure, and vehicles and has evaluated the effectiveness of biofuel tax credits. GAO interviewed representatives and reviewed studies and data from DOE, states, industry, and other sources.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Energy | To improve biofuel-related planning and to provide Congress better information on the costs and benefits of biofuel tax expenditures, the Secretary of Energy should collaborate with public and private sector stakeholders to develop a comprehensive strategic approach to increasing the availability and use of biofuels that coordinates expected biofuel production levels with the necessary distribution infrastructure development and vehicle production. |
Closed – Implemented
Recommendation was implemented by agency.
|
| Department of Energy | To improve biofuel-related planning and to provide Congress better information on the costs and benefits of biofuel tax expenditures, the Secretary of Energy should collaborate with the Secretary of the Treasury to evaluate and report on the extent to which biofuel-related tax expenditures are effectively and efficiently achieving their goals, as well as the extent to which they support the department's comprehensive strategic approach for biofuels. As a first step, the Secretaries will need to define their roles and responsibilities for conducting the evaluation. |
Closed – Implemented
The Biomass Research and Development Board was reconstituted to include members from 10 federal agencies, co-chaired by DOE and the U.S. Department of Agriculture, and charged with developing a national biofuels plan. To address our recommendation, in September 2007 the Board assigned its member from Treasury with the lead for evaluating the tax and incentives policy section of the National Biofuels Action Plan. In doing so, the Treasury official developed a response for each of the major conclusions from our report and an outline for a more detailed analysis of the outcomes of biofuel tax expenditures. The National Biofuels Action Plan was released in October 2008.
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