On a conference call with Energy Secretary Stephen Chu and Environmental Protection Agency Administrator Lisa Jackson, Mr Vilsack also announced that he will help lead an interagency effort to increase America's energy independence and spur rural economic development in what will be the Biofuels Interagency Working Group.

Increasing renewable fuels will reduce dependence on foreign oil by more than 297 million barrels per year and reduce greenhouse gas emissions by an average of 160 million tons a year when fully phased in by 2022.

Ms Jackson announced that the EPA would establish four categories of renewable fuels, some of which will be produced from new sources.

To address lifecycle analysis, EPA said it was soliciting peer-reviewed, scientific feedback to ensure that the best science available is utilised prior to implementation.

Mr Obama directed Mr Vilsack to expedite and increase production of and investment in biofuel development efforts by refinancing existing investments in renewable fuels to preserve jobs and by making renewable energy financing opportunities from the Food, Conservation & Energy Act of 2008 available within 30 days.

The Biofuels Interagency Working Group will develop the nation's first comprehensive biofuel market development program.

The increased collaboration among agencies will accelerate the production of and access to sustainable, homegrown energy options by coordinating policies that affect the supply, secure transport and distribution of biofuels, as well as identifying new policy options to improve the environmental sustainability of biofuel feedstock production.

The working group will also work to develop policies to increase flexible-fuel vehicle production and assist in retail marketing efforts while taking into consideration land use, habitat conservation, crop management practices, water efficiency/water quality and lifecycle assessments of greenhouse gas emissions.