Given that most alternative fuels won't be viable for years to come (though battery electric is available now), biofuel would seem an ideal short term solution. But it comes with surprising problems of its own. Personally, I plan to keep driving my Prius for the time being -- but watch for breakthroughs in biofuel in the future. And, if you have a vehicle that runs on (say) E85 or biodiesel that you use as part of a business, look into that Cellulosic Biofuel Producer Tax Credit. Even if you can't say its name without twisting your tongue, your bank account may just thank you for it.
- Alternative Fuels Data Center. "Cellulosic Biofuel Producer Tax Credit." (Sept. 5, 2012) http://www.afdc.energy.gov/laws/law/US/413
- Colman, Zack. "Senate extends two biofuels tax credits." Thehill.com. (Sept. 5, 2012) http://thehill.com/blogs/e2-wire/e2-wire/242135-senate-extends-two-biofuels-tax-credits
- Congressional Budget Office. "Using Biofuel Tax Credits to Achieve Energy and Environmental Policy Goals." (Sept. 5, 2012) http://www.cbo.gov/publication/21444
- ForceChange.com. "An Overview of the Arguments Against Biofuels." (Sept. 5, 2012) http://forcechange.com/233/an-overview-of-the-arguments-against-biofuels/
- Internal Revenue Service. "IRS Form 3800: General Business Credit." (Sept. 5, 2012) http://www.irs.gov/pub/irs-prior/f3800--2011.pdf
- Internal Revenue Service. "IRS Form 6478: Alcohol and Cellulosic Biofuel Fuels Credit." (Sept. 5, 2012) http://www.irs.gov/pub/irs-pdf/f6478.pdf