The first subsidy for ethanol was included in the Energy Tax Act of 1978. Twenty million gallons were introduced that year, introducing ethanol into the market. Since this act was signed, this country’s biofuel production — with the aid of important federal and state governments, has increased dramatically and is continuing to become more advanced and energy efficient. The graph below indicates how, via federal and state subsidies, the Renewable Fuel Standard will continue moving toward cellulosic ethanol. This alternative fuel option reduces 69% more emissions than corn ethanol and uses agricultural waste.
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