Biofuel policies---the underground limitation on biofuels---(NPK) (Burning our Food)

Many have called America’s dependency on energy imports, specifically oil, our nation’s “Achilles’ Heel.” Due in part to both economic and social incentives, policymakers have begun to take steps to reduce this dependency. With the passing of the Energy Policy Act of 2005 a national renewable fuel standard was established, directing that gasoline sold in the U.S. contain a specified minimum volume of renewable fuel. Under this act, the total volume of renewable fuel began at 4 billion gallons in 2006 and increased to 7.5 billion gallons in 2012. The Energy Independence and Security Act of 2007 raised the 2005 requirements with a future mandate of 36 billion gallons of biofuels production by 2022. Through the implementation of mandatory blending targets a guaranteed market has been created for biofuel producers.

            The mandatory demand requirements for renewable biofuels will place a larger burden on American agricultural lands. With U.S. biofuel production relying on grown organic matter, preserving soil fertility will be crucial in meeting these new renewable energy demands. In addition to sustainable management practices, the application of nonrenewable fossil fuel based fertilizers such as Nitrogen, Phosphorous and Potassium will be essential to maintaining the soil quality needs of American agriculture. Without replenishing the nutrients consumed through crop production or lost due to erosion, the soil quality will be negatively affected. Thus, one may make the argument that an increase in renewable fuels from crop production will require an increase in the amount of fossil fuel based fertilizer that is applied to U.S. croplands.

            Faced with limited domestic resources, America will be required to either import these additional nutrient demands or increase it’s own production, thus hastening the depletion of domestic reserves. With the diminishing amount of nutrients being concentrated in only a handful of countries, some with unstable and unfriendly governments, being heavily reliant on nutrient imports has the potential for adverse geopolitical consequences. America needs to make sure that its renewable fuel policies are not causing a switch from one dependency to another. This paper will examine the potential impacts that U.S. biofuel mandates might have on domestic fertilizer supply availability and demand rates and by implication, the rest of the world.