This document is a technical report discussing algal biofuels and the associated federal policies, particularly focusing on the Renewable Fuel Standard (RFS2) and other relevant policy issues. It outlines the objectives of the Algal Biomass Organization (ABO), which include promoting the development of technologies and markets for renewable products derived from algae. The report details the legislative efforts and positions of the ABO regarding RFS2, emphasizing the importance of algal fuels in the renewable energy landscape. It also describes the U.S. algae industry, highlighting the number of companies and research institutions involved, as well as the investments made in this sector. The document presents various cultivation methods for microalgae, beneficial characteristics of algal feedstocks, and the potential products derived from algae, including biofuels and food supplements. Furthermore, it discusses the regulatory framework surrounding algal biofuels and the challenges faced in achieving parity with other renewable fuels under current legislation.