In recent years, the world has debated the idea of biofuels as a solution to energy security, energy independence, and global climate change. However, as the biofuels movement has unfolded, crucial issues emerged regarding biofuels efficacy and efficiency. The deployment of biofuels of marginal benefit has raised questions about how countries like the USA may have found themselves so invested in a potentially failing technology. In order to better understand and evaluate these issues, this study utilizes the Ostrom Institutional Analysis and Development (IAD) framework to better evaluate these issues and analyze interacting institutions that shape US biofuel policy. The IAD framework is a model that enables one to study, conceptualize, compare, and make connections across decision arenas that would otherwise be distinct from each other. By analyzing the interactions of relevant institutions, one can see how different dynamic interests interacted to shape biofuel policy in the USA today. Conclusions from this analysis include: the IAD framework is ideal for analyzing the political and economic case for biofuels. The five action arenas identified in this thesis are sufficient to understand corn bioethanol policy. A compelling case for supporting bioethanol is not made. An international agreement to reduce GHG emissions could change the landscape for biofuels. Finally, there is little prospect for biofuels playing a significant role in the near term without greater alignment among the action arenas.