I think that it is possible for biofuels to replace fossil fuels. However, it may not be commercially viable. I can’t think of a single application using fossil petroleum fuels which could not use biofuels instead (at least without some modification to the existing process or equipment). However, it may be less desirable for companies to make the switch if the biofuel costs more to produce.
At current volumes of US consumption (19.6 million barrels per day), it is not possible now or in the near to medium term for enough biofuels to be made to replace the liquid fuel consumption of the US. Not by a lot.
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