According to the American Clean Energy Act of 2009, financial support will be offered to companies if they promote biofuels and/or the use of electric cars. This is good news for ethanol because it is a type of biofuel.
Furthermore, the Environmental Protection Agency raised the renewable fuel standard, which designates the minimum requirement of renewable fuel per gallon of gasoline, to 10.21 percent for 2009. This is a 24 percent increase from the 2008 standard of 7.76 percent.
This initiative is not surprising considering President Obama’s recent nominations for two specific positions within the Department of Energy.
Steven Koonin was appointed to the position of Undersecretary of Science by President Obama on March 23. He had been the Chief Scientist at BP since 2004 where he researched renewable and alternative fuels.
Steven Chu was sworn in as Secretary of Energy in January by the Obama Administration. Chu won the Nobel Prize in Physics in 1997. “Both Chu and Koonin previously collaborated on biofuel research through a BP partnership with academia.”