Concern with environmental issues such as global climate change has stimulated research into the development of more environmentally friendly technologies and energy sources. One critical area of our economy is liquid transportation fuels. This article presents the results of the biodegradability potential of newly developed engineered fuels and compares the results to the biodegradability of conventional fuels and alternative fuels in current use. Biodegradability potential was determined under both aerobic and anaerobic conditions. Fuels that have a high degree of components derived from renewable sources proved to have a higher degradability potential than those composed of petroleum components.