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The termbiofuels usually applies to liquid fuels and blending components produced from biomass materials calledfeedstocks. Biofuels may also include methane produced fromlandfill gas and biogas andhydrogen produced from renewable resources. Most biofuels are used as transportation fuels, but they may also be used for heating and electricity generation. Fuels produced from biomass may meet the requirements for government programs that promote or require biofuel use.

The terminology for biofuels varies in government legislation and incentive programs and in industry branding and marketing. For example, the fuel names may include the fuel type preceded bybio (such asbiodiesel orbiojet) or the fuel type preceded byadvanced,alternative,clean,green,low-carbon,renewable, orsustainable (such assustainable aviation fuel). The definitions for these biofuels may also differ. Government legislation and programs that require or promote biofuels may define them differently from industry and other organizations.

Biofuel production and consumption in the United States have generally increased each year since the early 1980s. The increases are largely the result of variousgovernment policies and programs intended to reduce fossil-fuel based transportation fuels by promoting or requiring biofuels instead. The Volumetric Ethanol Excise Tax Credit (2005-2011) for blending ethanol into motor gasoline contributed to large increases in ethanol consumption while the credit was in effect. Currently, atax credit of $1.00 per gallon for biodiesel and renewable diesel fuel blenders is contributing to rising biofuel use. Two prominent government programs that have contributed to increases in U.S. biofuels production and consumption over the past 15 years are the federalRenewable Fuel Standard (RFS) Program andCalifornia’s Low Carbon Fuel Standard (LCFS).Oregon andWashington have also established clean fuel programs.

In 2022, about 18.7 billion gallons of biofuels were produced in the United States and about 17.6 billion gallons were consumed. The United States was a net exporter (exports minus imports) of about 1.0 billion gallons of biofuels in 2022. Fuel ethanol accounted for the largest share of gross and net exports of biofuels.

Most biofuel consumption occurs as a blend with refined petroleum products such as gasoline, diesel fuel, heating oil, and kerosene-type jet fuel. However, some biofuels do not need to be blended with their petroleum counterparts and are referred to asdrop-in biofuels.

The U.S. Energy Information Administration (EIA) publishes data on four major categories of biofuels that qualify for the federal RFS Program:¹

• Ethanol—an alcohol fuel blended with petroleum gasoline for vehicles; accounted for the largest share of U.S. biofuel production (82%) and of consumption (75%) in 2022
• Biodiesel—a biofuel usually blended with petroleum diesel for consumption; accounted for the second-largest share of U.S. biofuel production (9%) and of consumption (9%) in 2022
• Renewable diesel—a fuel chemically similar to petroleum diesel fuel used as a drop-in fuel or a petroleum diesel blend; percentage share of total U.S. biofuel production was about 8% and for consumption about 9% in 2022
• Other biofuels—include renewable heating oil, renewable jet fuel (sustainable aviation fuel, alternative jet fuel, and biojet), renewable naphtha, renewable gasoline, and otheremerging biofuels that are in various stages of development and commercialization

Last updated: February 28, 2024, with data fromPetroleum Supply Annual, August 2023, andMonthly Energy Review, February 2024.