Directive on the promotion of the use of biofuels
Directive 2003/30/EC on the promotion of the use of biofuels set indicative targets for the incorporation of biofuels in fuel blends (set in terms of energy):  2% by 2005 and 5.75% by 2010.
The directive has provision for a strict framework for monitoring enforcement with each Member State having to set indicative targets and submit an annual report to the European Commission on measures implemented and the development of biofuel sales in the respective countries.  If national targets are not in line with the reference targets set by the directive, the Member State concerned must provide good reasons for this to the European Commission.
 
Directive on the taxation of energy products
Directive 2003/96/EC deals with the taxation of energy products and electricity and under the terms of Article 16, Member States may opt for total or partial exemption from excise duty on biofuel.
This new element in EU law means that Member States can adopt specific taxation for biofuels with greater flexibility than was the case in the past.

After the European Union initiatives, France embarked on a pro-active policy in 2005 for the development of biofuels and bioethanol, setting targets for fuel blends that were even more ambitious than the EU figures (5.75% by 2008 and 7% by 2010) and granting approvals offering entitlements to partial exemption from the domestic tax on petroleum and similar products (previously known as the “TIPP”).

As part of the development of the biofuel industry, the South-West region of France submitted a plan for setting up an ethanol production plant, using mostly maize feedstock (plus 20% wine alcohol).  The plan is backed by the company Abengoa Bioenergy France, which includes Abengoa, OCEOL (a holding comprised of all the maize collecting entities in the Aquitaine and Midi-Pyrenees regions), AGPM and AII (Agriculture Industrie Innovations).
Annual production is 200 000 tonnes of bioethanol, including 160 000 tonnes from maize feedstock (requiring 500 000 tonnes of maize) and 150 000 tonnes of spent grain used in animal feed.  The plant has been operating since September 2008.

An environmental balance sheet on bioethanol production, drawn up by an independent firm (PricewaterhouseCoopers), showed that:
     - ethanol production using maize feedstock requires half as much non-renewable energy as gasoline for the same energy.
     - compared to gasoline, ethanol production produces 2.4 times less greenhouse gas for the same energy.
 
These results are good and will be even better when the power supply to the processing plant is renewable energy.
As part of the call for tenders managed by the French Energy Regulation Commission [CRE], the plan chosen included the production of heat and power from maize stover, wheat straw and forestry chips.  Part of the steam produced will supply renewable energy to the ethanol plant in Lacq.