"During the spring of 2011, the Secretaries of Energy, Agriculture, and the Navy entered into a Memorandum of Understanding (MOU) to 'assist the development and support of a sustainable commercial biofuels industry.' The objective is the 'construction or retrofit of multiple domestic commercial or pre-commercial scale advanced drop-in biofuel plants and refineries.' The refineries would have the capability to produce advanced biofuels as 'drop-in' replacements for petroleum-based fuels. Drop-in fuels would be able to substitute for standard petroleum products without alteration to ship or aircraft engines, meet military specifications at a price competitive with petroleum, be readily accessible at geographically diverse locations, and have no significant impact on the supply of agricultural commodities for the production of food. Through this and other undertakings, the Navy intends to demonstrate that it can reduce its dependence on petroleum-based fuels. In accordance with the MOU, the Navy proposes to use some of the authorities of the Defense Production Act (DPA) of 1950 (50 U.S.C. Appx §2061 et seq.), as amended, to develop a domestic industrial capacity and supply of biofuel. The Navy plans a feasibility demonstration of drop-in biofuels with a 'Green Strike Group' fleet exercise by the end of 2012 composed of nuclear vessels and ships powered in part by biofuel, followed by a 2016 'Great Green Fleet' exercise composed of nuclear ships, and surface combatants and aircraft powered in part by biofuel."
CRS Report for Congress, R42568