Federal renewal energy policy is driving and providing incentives for bioenergy production. Renewable fuel standards for ethanol are currently being met with production of corn-grain ethanol. But, with the pending use of E15 and expectations that cellulosic ethanol production quotas will not likely be met in the near future, the bioenergy future is uncertain. If corn-grain ethanol production increases so will its impact on water resources. Expect continued tweaking of federal bioenergy policy and incentives.