The new law backs ethanol and ignores other alternative fuels. Venture capitalist David Berry talks about what it means for energy innovation On Dec. 19, President George W. Bush signed into law the Energy Independence & Security Act of 2007, a bill that, among other things, raised fuel economy standards for the first time in 32 years and set a Renewable Fuel Standard that will mandate the use of renewable biofuels by energy producers. He defined it as ‘a significant step’ towards energy independence. And indeed, it is progress if you compare it to this Administration’s previous laissez-faire approach to fuel economy standards. But what of energy innovation? The bill’s support of renewable fuels-specifically, a mandate that fuel producers use 36 billion gallons of renewables by 2022-should have sparked innovation in the energy sector. But instead of laying out a vision-ending U.S. dependence on foreign oil and shifting to cleaner fuels-and letting inventors and entrepreneurs develop the technologies that would realize that vision, Washington’s policymakers threw their weight behind one specific alternative fuel: ethanol. Ethanol, and especially the corn-based ethanol that is predominant in the U.S. today, has long been controversial, with critics pointing out that turning […]