Order Code RL34239
Biofuels in the 2007 Energy and Farm Bills:
A Side-by-Side Comparison
November 6, 2007
Brent D. Yacobucci
Specialist in Energy and Environmental Policy
Resources, Science, and Industry Division
Randy Schnepf
Specialist in Agricultural Policy
Resources, Science, and Industry Division

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Biofuels in the 2007 Energy and Farm Bills:
A Side-by-Side Comparison
Summary
This report provides a side-by-side comparison of biofuels-related provisions
of current law with comparable provisions in the House and Senate energy and farm
bills. The House energy bill, H.R. 3221 (the combined New Direction for Energy
Independence, National Security, and Consumer Protection Act and Renewable
Energy and Energy Conservation Tax Act of 2007) was approved by the House on
August 4, 2007. The Senate approved its energy bill, H.R. 6 (the Renewable Fuels,
Consumer Protection, and Energy Efficiency Act of 2007) on June 21, 2007. The
House passed its Farm Bill, H.R. 2419 (the Farm, Nutrition, and Bioenergy Act of
2007) on July 27, 2007. The Senate Agriculture Committee approved its Farm Bill,
S. 2302 (the Food and Energy Security Act of 2007), on October 25, 2007. The
Senate began floor consideration of the bill November 5, 2007.
These bills cover a wide range of energy and agricultural topics with extensive
attention to biofuels, including ethanol and biodiesel.
Key biofuels-related provisions of the two bills include
! a major expansion of the renewable fuel standard (RFS) established
in the Energy Policy Act of 2005 (P.L. 109-58) [Senate energy bill];
! expansion and/or modification of tax credits for alternative fuel
refueling infrastructure and for ethanol, and renewable diesel fuels
[House energy bill, Senate farm bill];
! grants and loan guarantees for biofuels research, development,
deployment, and production [all four bills];
! studies of the potential for ethanol pipeline transportation, expanded
biofuel use, market and environmental impacts of increased biofuel
use, and the effects of biodiesel on engines [both energy bills, Senate
farm bill]; and
! reauthorization of biofuels R&D at the U.S. Departments of Energy
and Agriculture [all four bills].
This report includes information from CRS Report RL34130, Renewable
Energy Policy in the 2007 Farm Bill, by Randy Schnepf, and CRS Report RL34136,
Biofuels Provisions in H.R. 3221 and H.R. 6: A Side-by-Side Comparison, by Brent
D. Yacobucci.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Key Elements of House and Senate Energy and Farm Bills . . . . . . . . . . . . . . . . . 2
List of Tables
Table 1. Comparison of Current Law with Biofuels Provisions
in the House and Senate Energy and Farm Bills . . . . . . . . . . . . . . . . . . . . . . 4

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Biofuels in the 2007 Energy and Farm Bills:
A Side-by-Side Comparison
Introduction
With recent high energy prices, concerns over energy security, desire to promote
rural business, and the desire to reduce air pollutant and greenhouse gas emissions,
there is ongoing congressional interest in promoting greater use of alternatives to
petroleum fuels. Biofuels — transportation fuels produced from plant and animal
materials — have attracted particular interest. Ethanol and biodiesel, the two most
widely used biofuels, receive significant federal support in the form of tax incentives,
loan and grant programs, and regulatory programs.1
The Energy Policy Act of 2005 (P.L. 109-58) established a renewable fuel
standard (RFS). The RFS requires the increasing use of renewable fuel in gasoline,
starting at 4.0 billion gallons in 2006, increasing to 7.5 billion gallons in 2012.
Although not an explicit ethanol mandate, it is expected that the majority of this
requirement will be met using corn-based ethanol.2 About 4.0 billion gallons of corn
ethanol were consumed in 2005, so the RFS represents roughly a doubling of U.S.
ethanol consumption over seven years. However, the U.S. ethanol industry is
expanding rapidly, outpacing the required growth in the RFS. As of November 1,
2007, existing U.S. production capacity was roughly 7.0 billion gallons per year, with
another 6.5 billion gallons of capacity under construction or in the planning stages.
Because this capacity will likely outpace the current RFS, some proponents of corn-
based ethanol support an increase in the mandated levels of the RFS.
Because of the rapid expansion of U.S. corn ethanol capacity, there are concerns
that the United States will soon reach the limit of ethanol that can be produced from
corn. Critics of corn-based ethanol argue that the industry does not need continued
government support, and that current corn demand for ethanol is putting a strain on
corn and other grain markets, leading to increases in other commodity prices, such
as livestock feed, which then leads to higher dairy and meat prices.3 Critics also
argue that the environmental costs of corn-based ethanol may outweigh the benefits.
1 For more information on federal biofuels incentives, see CRS Report RL33572, Biofuels
Incentives: A Summary of Federal Programs, by Brent D. Yacobucci.
2 For more information on ethanol, see CRS Report RL33290, Fuel Ethanol: Background
and Public Policy Issues, by Brent D. Yacobucci.
3 For more information on the issues surrounding rapid ethanol expansion, see CRS Report
RL33928, Ethanol and Biofuels: Agriculture, Infrastructure, and Market Constraints
Related to Expanded Production, by Brent D. Yacobucci and Randy Schnepf.

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CRS-2
Because of concerns over corn-based ethanol, as well as interest in diversifying
energy supply, there is growing interest in developing biofuels that rely on other
sources of biomass, including agricultural wastes, municipal solid waste, and
dedicated energy crops such as perennial grasses, fast-growing trees, and algae. This
interest has led to proposals to support and/or mandate biofuels produced from
feedstocks other than corn starch through explicit requirements, R&D funding, and/or
tax incentives.4 Non-corn biofuels could include fuels produced from cellulosic
material (such as perennial grasses), ethanol produced from sugarcane or beets, and
biodiesel or renewable diesel produced from vegetable or animal oils.5
Key Elements of
House and Senate Energy and Farm Bills
This report provides a side-by-side comparison of biofuels-related provisions
in the House and Senate energy and farm bills. The House energy bill, H.R. 3221
(the combined New Direction for Energy Independence, National Security, and
Consumer Protection Act and Renewable Energy and Energy Conservation Tax Act
of 2007) was approved by the House on August 4, 2007. The Senate approved its
energy bill, H.R. 6 (the Renewable Fuels, Consumer Protection, and Energy
Efficiency Act of 2007) on June 21, 2007.6 The House passed its Farm Bill, H.R.
2419 (the Farm, Nutrition, and Bioenergy Act of 2007) on July 27, 2007. The Senate
Agriculture Committee approved its Farm Bill, S. 2302 (the Food and Energy
Security Act of 2007), on October 25, 2007.7 The Senate began floor consideration
of this bill November 5, 2007.
All four bills cover a wide range of energy and agricultural topics in addition to
biofuels.
Table 1 contains a section-by-section comparison of the biofuels provisions in
current law with H.R. 3221, H.R. 6, H.R. 2419, and the Senate Agriculture
Committee bill. The table is organized in the same order as H.R. 3221, followed by
provisions in H.R. 6, then H.R. 2419, with non-comparable S. 2302 sections shown
at the end. Key provisions of the bills include:
! a major expansion of the RFS established in the Energy Policy Act
of 2005 [Senate energy bill];
4 Non-corn-starch feedstocks include other parts of the corn plant, such as the husks and the
stalks, which are high in cellulose.
5 For more information on biodiesel, see CRS Report RL32712, Agriculture-Based
Renewable Energy Production, by Randy Schnepf.
6 The House approved its version of H.R. 6 on January 18, 2007. However, this bill is a less
comprehensive bill than H.R. 3221 or the Senate version of H.R. 6. Presumably, H.R. 3221
has superseded the House version of H.R. 6.
7 Provisions from S. 2242, the Senate Finance Committee’s farm bill tax provisions, are
included under the Senate Agriculture Committee bill.

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CRS-3
! expansion and/or modification of tax credits for alternative fuel
refueling infrastructure and for ethanol, and renewable diesel fuels
[House energy bill, Senate farm bill];
! grants and loan guarantees for biofuels research, development,
deployment, and production [all four bills];
! studies of the potential for ethanol pipeline transportation, expanded
biofuel use, market and environmental impacts of increased biofuel
use, and the effects of biodiesel on engines [all four bills]; and
! reauthorization of biofuels R&D programs at the U.S. Departments
of Energy and Agriculture [all four bills].

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CRS-4
Table 1. Comparison of Current Law with Biofuels Provisions in the House and Senate Energy and Farm Bills

Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
H.R. 3221, Title IV — Science and Technology
Biofuels and
No current provision.
Directs the Secretary of
Similar provision.
No comparable
No comparable
Biorefinery
Energy to establish a
[Sec. 127]
provision.
provision.
Information
technology transfer center
Center
to provide information on
biofuels and biorefineries.
[Sec. 4402]
Biofuels
No current provision.
Directs the Secretary of
Directs the Secretary of
No comparable
Directs USDA to
In addition:
Infrastructure
Energy to conduct an
Energy to provide grants
provision.
study the
- Sec. 9301 of
R&D program on the
for pilot programs to
infrastructure needs
H.R. 3221
effects of biofuels on
expand infrastructure for
associated with a
(below) would
existing transportation
ethanol/gasoline blends of
significant expansion
provide grants for
fuel distribution systems.
between 11% and 84%
in biofuel production
the installation of
[Sec. 4403]
ethanol, and renewable
and use.
renewable fuel
fuel/diesel fuel blends of at
Specifically includes
infrastructure at
least 10% renewable
dedicated ethanol
retail stations.
diesel. $200 million is
pipeline feasibility
authorized to be available
studies and
- Sec. 9304 of
until expended.
examination of water
H.R. 3221
[Sec. 121]
resource needs.
(below) requires a
Authorizes $1
study of the
million for each of
feasibility of
FY2008-FY2012.
dedicated ethanol
[Sec. 9017]
pipelines.

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CRS-5
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Biodiesel
No current provision.
Requires the Secretary of
Similar provision, but
No comparable
No comparable
Currently,
Report
Energy to report to
would require a study of
provision.
provision.
biodiesel
Congress on the R&D
the challenges of
represents less
challenges to expanding
expanding biodiesel use to
than 1% of total
biodiesel use to 2.5% of
5% of total diesel fuel use.
diesel
total diesel fuel use by
[Sec. 130(a)]
consumption.
volume.
[Sec. 4404]
Biogas
No current provision.
Requires the Secretary of
No comparable provision.
No comparable
No comparable
Energy to report to
provision.
provision.
Congress on the R&D
challenges to expanding
biogas and biogas/natural
gas blends to 5% of fuel
use.
[Sec. 4405]

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CRS-6
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Bioresearch
The Department of
Requires the
Similar to H.R. 3221, but
No comparable
No comparable
See also Sec.
Centers for
Energy (DOE) is
establishment of at least
would require the
provision.
provision.
4413(a) of H.R.
Systems
required to establish a
five bioresearch centers
establishment of at least 11
3221 (below),
Biology
program of R&D and
that focus on biofuels to
bioresearch centers
which would
Program
demonstration of
be included in the R&D
focused on biofuels.
expand the topics
microbial and plant
program established in
[Sec. 123]
covered by the
systems biology,
Sec. 977 of P.L. 109-58.
program.
protein science, and
[Sec. 4406]
computational biology.
Biomedical research
and research related to
humans are not
permitted as part of the
program.
[Energy Policy Act of
2005 - P.L. 109-58,
Sec. 977]

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CRS-7
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Grants for
The Secretary of
Authorizes $25 million
Similar to H.R. 3221.
No comparable
No comparable
The funding
Biofuel
Energy is authorized to
annually for
[Sec. 125]
provision.
provision.
authorized in
Production and
receive $25 million
FY2008-FY2010 for
these bills would
R&D in Certain
annually for
R&D and commercial
be in addition to
States
FY2006-FY2010 for
application of biofuel
amounts in
R&D and
production in states with
current law.
implementation of
low rates of ethanol and
Language
renewable fuel
cellulosic ethanol
substantially
production
production (this could in
similar to these
technologies in states
effect apply to all states).
bill sections is
with low rates of
[Sec. 4407]
also in Sec. 9315
ethanol production that
of H.R. 3221(see
are under the federal
below).
reformulated gasoline
(RFG) program.
[P.L. 109-58, Sec.
1511(d)]
Biorefinery
The Secretary of
Amends Sec. 932 of P.L.
No comparable provision.
No comparable
No comparable
Energy
Energy is directed to
109-58 to include
provision.
provision.
Efficiency
conduct research on
research on energy
commercial
efficiency at biorefineries
applications of biomass
and on technology to
and bioenergy.
convert existing corn-
[P.L. 109-58, Sec. 932]
based ethanol plants to
process cellulosic
materials.
[Sec. 4408]

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CRS-8
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Study of
No current provision.
The Secretary of Energy
Similar provision.
No comparable
No comparable
A similar
Increased
is directed to study the
[Sec. 142]
provision.
provision.
provision is
Consumption of
potential for using
contained in Sec.
Ethanol-
ethanol/gasoline blends in
9305 of H.R.
Blended
the range of 10% to 40%
3221 for a study
Gasoline with
ethanol. Currently, only
of increasing
Higher Levels
up to 10% ethanol is
gasoline ethanol
of Ethanol
permitted by federal
content above
regulations and
10% (see below).
warrantied by automakers
for conventional vehicles.
[Sec. 4409]
Study of
No current provision.
The Secretary of Energy
Similar provision.
No comparable
No comparable
Current FFVs are
Optimization of
is directed to study
[Sec. 144]
provision.
provision.
optimized to run
Flexible Fueled
whether optimizing
on gasoline, since
Vehicles to use
flexible fuel vehicles
that tends to be
E-85 Fuel
(FFVs) to run on E85
their primary fuel.
would increase their fuel
efficiency.
[Sec. 4410]
Study of Engine
No current provision.
The Secretary of Energy
Similar provision, except
No comparable
No comparable
Durability and
is directed to study the
that the Secretary is
provision.
provision.
Performance
effects of various
required to study only the
Associated with
biodiesel/diesel blends on
effects on engine
the Use of
engine performance and
durability but not
Biodiesel
durability.
performance.
[Sec. 4411]
[Sec. 146]

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CRS-9
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Bioenergy R&D
The Secretary of
Amends Sec. 931 of P.L.
Amends Sec. 931 of P.L.
No comparable
No comparable
Funding for
- Authorization
Energy is directed to
109-58 to authorize a total
109-58 to authorize a total
provision.
provision.
related biomass
of
conduct R&D on
of $1.2 billion for
of $775 million for
research through
Appropriation
biomass, bioenergy,
FY2008-FY2010 for
FY2008-FY2009.
the Department of
and bioproducts. A
R&D on biomass,
[Sec. 122]
Agriculture is
total of $525 million is
bioenergy, and
contained in Sec.
authorized for
bioproducts.
5007 of H.R.
FY2008-FY2009.
[Sec. 4412]
3221.
[P.L. 109-58, Sec.
931(c)]
Environmental
DOE is required to
DOE is required to
No comparable provision.
No comparable
No comparable
See also Sec.
Research and
establish a program of
expand the biological
provision.
provision.
4406 of H.R.
Development
research, development,
R&D program established
3221 (above).
and demonstration in
in Sec. 977 of P.L. 109-58
microbial and plant
to include environmental
systems biology,
effects, potential for
protein science, and
greenhouse gas
computational biology.
reductions, and the
Biomedical research
potential for more
and research related to
sustainable agriculture.
humans are not
[Sec. 4413(a)]
permitted as part of the
program.
[P.L. 109-58, Sec. 977]

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CRS-10
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Lifecycle
No current provision.
The Secretary of Energy
Similar provision, but the
No comparable
USDA is directed to
Analysis Tools
is required to study and
study is required to cover
provision.
study methods for
for Evaluating
develop tools for
only greenhouse gas
evaluating the
the Energy
evaluating the lifecycle
emissions but not energy
life-cycle greenhouse
Consumption
energy consumption and
consumption.
gas emissions of
and
greenhouse gas emissions
[Sec. 148]
conventional fuels
Greenhouse
related to the production
and biofuels, and to
Gas Emissions
and use of biofuels.
report to Congress
from Biofuels
[Sec. 4413(b)]
results and
recommendations for
a method for
evaluating the
lifecycle greenhouse
gas emissions of
fuels.
[Sec. 9019]
Small-Scale
No current provision.
The Secretary of Energy
No comparable provision.
No comparable
No comparable
Production and
is required to establish an
provision.
provision.
Use of Biofuels
R&D program to facilitate
small-scale production
and local and on-farm use
of biofuels.
[Sec. 4413(c)]

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CRS-11
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Study of
No current provision.
The Secretary of Energy
No comparable provision.
No comparable
No comparable
Optimization of
is directed to study the
provision.
provision.
Biogas Used in
potential for optimizing
Natural Gas
natural gas vehicles to run
Vehicles
on biogas (methane
produced from biological
feedstocks).
[Sec. 4414]
Standards for
No current provision.
If “appropriate private
No comparable provision.
No comparable
No comparable
Biofuels
standards” for biofuels
provision.
provision.
Dispensers
dispensers have not been
developed by the date of
enactment, the Secretary
of Energy is required to
develop such standards to
promote broader biofuel
use.
[Sec. 4415]
Algal Biomass
Various statutes
The Secretary is required
No comparable provision.
No comparable
No comparable
promote biofuels
to report to Congress on
provision.
provision.
R&D, including the
progress toward
development of
developing algae as a
biofuels from algae, at
feedstock for biofuel
the Department of
production.
Energy.
[Sec. 4416]

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CRS-12
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
H.R. 3221, Title V — Agriculture Energy
Federal
Under the 2002 Farm
Amends definitions and
No comparable provision.
Similar to H.R. 3221,
Clarifies that
Procurement of
Bill, federal agencies
procedures for
except 1) also requires
biobased
Biobased
are currently required
determining eligibility of
USDA to complete
intermediate
Products
to purchase biobased
products under the 2002
rulemaking on labeling
ingredients and
products under certain
Farm Bill (P.L. 107-171)
regulation; 2) provides
feedstocks qualify
conditions. Current
program on federal
mandatory CCC
under the program. It
law authorizes a
procurement of biobased
funding of $2 million
also requires the
voluntary biobased
products. Clarifies that
for each of FY2008-
Secretary of
labeling program.
products with at least 5%
FY2012 for
Agriculture to
USDA regulations
of intermediate
bio-product testing,
establish a voluntary
define biobased
ingredients and feedstock
labeling, and
labeling program for
products, identify
that are biobased should
procurement research,
biobased products —
biobased product
be considered under the
promotion, and
“USDA Certified
categories, and specify
preference. For FY2008-
awareness initiatives.
Biobased Product.”
the criteria for
FY2012, $2 million in
[Sec. 9002]
Provides grants for
qualifying those
annual mandatory CCC
education and
products for preferred
funding is provided for
awareness of
procurement.
product testing.
bioenergy and
Mandatory Commodity
[Sec. 5002]
biobased products.
Credit Corporation
Provides $3 million
(CCC) funding of $1
per year in
million is authorized
mandatory funding
for each of FY2002-
for FY2008-FY2012.
FY2007 for testing
[Sec. 9003]
biobased products.
[P.L. 107-171, Sec.
9002]

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CRS-13
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Loan
The Energy Policy Act
Extends the 2002 Farm
Amends Sec. 1703 of the
Similar to H.R. 3221,
Revises P.L. 107-
See also H.R.
Guarantees and
of 2005 directs DOE
Bill biorefinery
Energy Policy Act of 2005
except that at total of
171, Sec. 9003, to
3221, Sec. 9308
Grants for
to provide loan
development program
to allow for projects that
$800 million in
promote “advanced
(below).
Biorefineries
guarantees for various
through FY2012 and
produce “advanced
mandatory funding is
biofuel” production
and Biofuel
renewable energy and
provides new loan
biofuels” defined as
provided.
in renewable-fuel-
Production
low-emission energy
guarantee authority for
biofuels produced from
[Sec. 9003]
powered facilities.
Plants
projects. [P.L. 109-58,
biorefineries, with a total
feedstocks other than corn
Provides grants for
Sec. 1703]
of $600 million going to
starch (see H.R. 6, Sec.
pilot- and demon-
loans less than $100
111).
stration-scale plants;
The 2002 Farm Bill
million, and $1 billion for
[Sec. 124]
matching funds for
authorized a grant
loans up to $250 million.
feasibility studies,
program to help
The loan guarantee would
and grants for up to
finance the cost of
cover 90% of an eligible
20% of total costs to
developing and
loan. Requires that
convert fossil-fueled
constructing
construction contractors
biomass facilities to
biorefineries and
and subcontractors on
renewable resources;
biofuel production
federally assisted loan
and provides loan
plants to carry out
guarantee projects pay
guarantees for up to
projects to demonstrate
their employees not less
80% of total eligible
the commercial
than the prevailing wage
costs for the develop-
viability of converting
in the same locality under
ment and construc-
biomass to fuels or
the Davis-Bacon Act.
tion of commercial-
chemicals. However,
Specifies mandatory CCC
scale plants.
no funds have been
funding of $640 million
Provides $300
appropriated for the
total for FY2008-FY2012.
million in mandatory
program.
[Sec. 5003]
funding for FY2008-
[P.L. 107-171, Sec.
FY2012.
9003]
[Sec. 9005]

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CRS-14
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Biodiesel Fuel
This program awards
Extends the 2002 Farm
No comparable provision.
Identical provision to
Identical provision to
Education
competitive grants to
Bill Biodiesel Fuel
H.R. 3221.
H.R. 3221.
Program
nonprofit organizations
Education Program
[Sec. 9017]
[Sec. 9003]
that educate
through FY2012 with
governmental and
mandatory funding of $2
private entities
million for each of
operating vehicle
FY2008-FY2012.
fleets, and educate the
[Sec. 5004]
public about the
benefits of biodiesel
fuel use. Mandatory
CCC funding of $1
million annually was
authorized for
FY2003-FY2007.
[P.L. 107-171, Sec.
9004]

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CRS-15
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Energy Audit
This is a competitive
Extends the 2002 Farm
No comparable provision.
Identical provision to
Extends the Energy
and Renewable
grant program for
Bill Energy Audit and
H.R. 3221.
Audit and Renewable
Energy
eligible entities to
Renewable Energy
[Sec. 9004]
Energy Development
Development
carry out a program to
Development Program
Program through
Program
assist farmers,
through 2012.
FY2012, but folds it
ranchers, and rural
[Sec. 5005]
into the new Rural
small businesses in
Energy for America
becoming more energy
Program where
efficient and in using
mandatory funding is
renewable energy
available (see next
technology and
section for more
resources. Authorized
information).
appropriations of such
[Sec. 9007]
sums as are necessary
to carry out the
program for FY2002-
FY2007.
[P.L. 107-171, Sec.
9005]

---

CRS-16
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Renewable
This program
Renames the 2002 Farm
No comparable provision.
Renamed as the “Rural
Renamed as the
Energy Systems
authorizes loans, loan
Bill program on
Energy for America
“Rural Energy for
and Energy
guarantees, and grants
“renewable energy
Program.” Raises the
America Program,”
Efficiency
to farmers, ranchers,
systems and energy
loan guarantee level
adds the option to
Improvements
and rural small
efficiency improvements”
from $10 million to
receive a production
businesses to purchase
as the “Rural Energy for
$25 million. Grant
incentive payment in
and install renewable
America Program.”
fund cost share is
lieu of a grant, and
energy systems and to
Raises the loan guarantee
retained at up to 25%
stipulates that a grant
make energy efficiency
level from $10 million to
of project costs;
may cover up to 25%
improvements.
$25 million and caps
however, combined
of project costs while
Mandatory CCC
federal cost-share at 75%.
grants and loans
a loan guarantee may
funding of $23 million
Allows for feasibility
(including guarantees)
cover up to 75% of
annually for FY2003-
studies to be eligible for
is expanded to 75% of
the cost. Sets aside a
FY2007.
the program. Increases
project cost. Allows
portion of funds for
[P.L. 107-171, Sec.
mandatory CCC funding
for feasibility studies to
manure-to-energy
9006]
to a total of $425 million
be eligible for the
facilities such as
for FY2008-FY2012.
program. Increases
methane digesters.
[Sec. 5006]
mandatory CCC
Streamlines grant
funding to a total of
and loan applications
$500 million for
for small-scale
FY2008-FY2012.
projects (under
[Sec. 9005]
$20,000), and
requires that 20% of
funds be used for
such projects.
... continued

---

CRS-17
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Extends EPA’s
Energy Star Program
to identify and
promote
energy-efficient
equipment and
facilities in the
agricultural sector.
Provides $230
million in mandatory
funding for FY2008
to remain available
until expended, with
not less than 15% of
this funding
dedicated to the
animal
manure-to-energy
provision.
[Sec. 9007]

---

CRS-18
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Biomass
The Biomass Research
Modifies and extends the
No comparable provision.
Similar to H.R. 3221,
Extends the program
See also Senate
Research and
and Development Act
Biomass Research and
except that a total of
and moves it in
Agriculture
Development
of 2000 (reauthorized
Development Program
$420 million in
statute to this act.
Committee Farm
Act of 2000
by the 2002 Farm Bill)
through FY2012. Adds
mandatory funding is
Adds new emphasis
Bill, Sec. 9012.
provides competitive
mandatory CCC funding
provided for FY2008-
on utilization of
funding for R&D and
of $350 million total for
FY2012, in addition to
byproducts such as
demonstration projects
FY2008-FY2012. Also
the $200 million annual
dried distillers grains
on biofuels and
maintains the existing
authorization.
and solubles (DDGS)
bio-based chemicals
authorization of
[Sec. 9006]
and development of
and products,
appropriations of $200
technologies for
administered jointly by
million annually for
harvest, storage,
USDA and DOE.
FY2008-FY2015.
preprocessing and
Specified mandatory
[Sec. 5007]
transportation of
CCC funding of $5
renewable biomass
million in FY2002 and
feedstocks. Provides
$14 million annually
a total of $75 million
for FY2003- FY2007
in mandatory
to remain available
funding during
until expended. Also
FY2008-FY2012.
authorized
Authorizes
appropriations of $200
appropriations of
million for each of
$85 million in each
FY2006-FY2015.
of FY2008-FY2012.
[P.L. 107-171, Sec.
[Sec. 9008]
9008]

---

CRS-19
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Adjustments to
Originally a Clinton
Renews and extends the
No comparable provision.
Similar to H.R. 3221,
Renews and extends
The S. 2302
the Bioenergy
Administration
2002 Farm Bill Bioenergy
except that a total of
the Bioenergy
provisions will
Program
initiative, the
Program through 2012
$1.4 billion in
Program through
likely benefit
Bioenergy Program
with a total of $1.215
mandatory funding is
FY2012. Bases the
those purchasing
was made statutory by
billion in mandatory CCC
provided for FY2008-
payment rate on: (1)
feedstocks for
the 2002 Farm Bill.
funding for FY2008-
FY2102.
biofuel production,
cellulosic biofuels
The program provides
FY2012. Ethanol
[Sec. 9007]
(2) feedstock prices,
and biodiesel.
CCC incentive
produced from corn starch
and (3) net
payments to biofuels
is excluded. Renewable
non-renewable
producers based on
diesel produced from
energy content of the
year-to-year increases
biomass at petroleum
fuel. The program is
in the quantity of
refineries may be
not available to those
biofuel produced.
excluded, as well.
claiming a biofuel
Mandatory CCC
Expands eligibility for
production tax credit
funding of $150
combined heat and power
or with biofuel
annually for FY2002-
production using biomass
production capacity
FY2006. No funding
at biofuels plants and
greater than 150
was available for
biomass gasification as
million gallons per
FY2007. [P.L. 107-
types of bioenergy
year. Provides $245
171, Sec. 9010]
eligible for the production
million in mandatory
incentive.
funding for FY2008-
[Sec. 5008]
FY2012.
[Sec. 9006]

---

CRS-20
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Research,
The “Sun Grant”
Extends the Sun Grant
No comparable provision.
Extends the Sun Grant
Reauthorizes the Sun
Extension, and
program established 5
program through 2012
program through 2012
Grant program
Educational
national sun grant
with authorized
with authorized
through FY2012 and
Programs on
research centers based
appropriations of $75
appropriations of $75
establishes a Western
Biobased
at land-grant
million for each of
million for each of
Insular Pacific
Energy
universities and each
FY2008-FY2012.
FY2008-FY2012, and
Sub-Center at the
Technologies
covering a different
[Sec. 5009]
establishes a 6th
University of Hawaii.
and Products
region. The purpose is
regional center —
Competitive grants
to enhance
Western Insular Pacific
are available to
coordination and
Sub-Center — at the
land-grant schools
collaboration between
University of Hawaii.
within each region.
USDA, DOE, and
[Sec. 9008]
Provides, for the first
land-grant universities
time, mandatory
in the development,
funding for the Sun
distribution, and
Grant program of $5
implementation of
million in FY2008,
biobased energy
$10 million in each
technologies.
of FY2009 and
Authorized
FY2010 (available
appropriations of $25
until expended) for a
million in FY2005,
total of $25 million
$50 million in
for FY2008-FY2012.
FY2006, and $75
Further authorizes
million annually for
appropriations of $70
FY2007-FY2010.
million in each of
FY2008-FY2015.
[Sec. 9009]

---

CRS-21
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Energy Council
No current provision.
Directs the Secretary of
No comparable provision.
Identical to H.R. 3221.
Expands and codifies
of the
Agriculture to establish an
[Sec. 9009]
the scope of
Department of
energy council to
responsibilities of the
Agriculture
coordinate the energy
USDA related to the
policy of USDA and
coordination of
consult with other federal
energy programs and
departments and agencies.
specifies that USDA
[Sec. 5010]
should have one
entity serving as
central coordinator
for these programs.
Responsibilities of
the coordinating
entity include
oversight and
coordination of
energy-related
activities within
USDA, as well as
coordination of
related activities with
other federal, state,
and local agencies.
[Sec. 9016]

---

CRS-22
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Forest
No current provision.
Establishes a new R&D
No comparable provision.
Similar to H.R. 3221,
Similar to H.R. 3221,
Bioenergy
program to promote the
except that a total of
except that
Research
use of woody biomass for
$75 million in
discretionary (not
Program
bioenergy production,
mandatory funding is
mandatory) funding
including addressing
provided for FY2008-
is authorized at $5
feedstock issues such as
FY2102.
million for each of
yield and new varieties.
[Sec. 9019]
FY2008-FY2012.
A total of $36 million in
[Sec. 2012]
mandatory CCC funding
is provided for FY2008-
FY2012. [Sec. 5011]
Feedstock
No current provision.
Requires that USDA
No comparable provision.
Substantially similar to
Substantially similar
Flexibility
establish and administer
H.R. 3221.
to H.R. 3221.
Program for
(starting in FY2008) a
[Sec. 9013]
[Sec. 1501(f)]
Bioenergy
sugar-for-ethanol program
Producers
using sugar intended for
food use but deemed by
USDA to be in surplus.
USDA would implement
the program only in those
years when purchases are
determined to be
necessary to ensure that
the sugar program
operates at no cost. Such
sums as are necessary to
carry out the program are
authorized. [Sec. 5012]

---

CRS-23
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
H.R. 3221, Title VIII — Transportation and Infrastructure
Capitol
No current provision.
The Architect of the
No comparable provision.
No comparable
No comparable
Complex E-85
Capitol is authorized to
provision.
provision.
Refueling
install an E85 tank and
Station
pumping system on or
near the Capitol Grounds
Fuel Station.
[Sec. 8652]
H.R. 3221, Title IX — Energy and Commerce
Renewable Fuel
No current provision.
Establishes a grant
No comparable provision.
No comparable
Provides cost-share
See also Sec.
Infrastructure
program for the
provision.
grants of up to 20%
4403 of H.R.
Development
installation of refueling
of total costs for
3221 (above).
infrastructure for E85 and
installation of E-85
B20 (20% biodiesel, 80%
fuel infrastructure.
conventional diesel) fuels.
Authorizes a total of
Authorizes $200 million
$20 million for
annually for FY2008-
FY2008-FY2012 to
FY2014. “Large,
remain available
vertically integrated oil
until expended.
companies” are ineligible
[Sec. 9020]
for funding.
[Sec. 9301]

---

CRS-24
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Prohibition on
No current provision.
Amends the Petroleum
No comparable provision.
No comparable
No comparable
Franchise
Marketing Practices Act
provision.
provision.
Agreement
(15 U.S.C. 2801 et seq.)
Restrictions
to make it unlawful for a
Related to
franchiser to prohibit a
Renewable Fuel
franchisee from installing
Infrastructure
E85 or B20 tanks and
pumps within the
franchise agreement.
[Sec. 9302]
Renewable Fuel
No current provision.
The Secretary of Energy
No comparable provision.
No comparable
No comparable
Dispenser
is required to report to
provision.
provision.
Requirements -
Congress on the market
Report to
penetration of flexible
Congress
fuel vehicles and on the
feasibility of requiring
fuel retailers to install E85
infrastructure.
[Sec. 9303]
Pipeline
No current provision.
The Secretary of Energy,
Substantially similar,
No comparable
USDA is required to
Feasibility
in consultation with the
except that the Secretary
provision.
study the
Study
Secretary of
of Energy must consult
infrastructure needs
Transportation, is
with the Secretary of
associated with an
required to report on the
Agriculture, as well.
expansion in biofuel
feasibility of constructing
[Sec. 143]
production, including
dedicated ethanol
pipeline feasibility.
pipelines. [Sec. 9304]
[Sec. 9017]

---

CRS-25
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Study of
No current provision.
The Secretary of Energy
Similar provision, except
No comparable
No comparable
A similar
Ethanol-
is directed to study the
that the study is to cover
provision.
provision.
provision to Sec.
Blended
potential for increasing
ethanol/gasoline blends
142 of H.R. 6 is
Gasoline with
the ethanol content in
between 10% and 40%
contained in Sec.
Greater Levels
gasoline above 10%.
ethanol.
4409 of H.R.
of Ethanol
[Sec. 9305]
[Sec. 142]
3221 (see above).
Study of the
No current provision.
The Secretary of Energy,
No comparable provision.
The Secretary of
No comparable
Adequacy of
in consultation with the
Agriculture, in
provision.
Railroad
Secretary of
coordination with the
Transportation
Transportation, is
Secretary of
of
required to study and
Transportation, is
Domestically-
report on the adequacy of
required to study and
Produced
railroad transportation of
report on railroad
Renewable Fuel
domestically produced
issues related to the
renewable fuel.
movement of
[Sec. 9306]
agricultural products,
including domestically
produced renewable
fuels.
[Sec. 6032]

---

CRS-26
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Standard
No current provision.
If ASTM International
The President is required
No comparable
No comparable
Specifications
(originally the American
to promulgate rules to
provision.
provision.
for Biodiesel
Society for Testing and
ensure that renewable
Materials) has not
diesel fuel substitutes
adopted a standard for
comply with applicable
B20 within one year of
ASTM standards.
enactment, the
Authorizes $3 million
Administrator of the
annually for FY2008-
Environmental Protection
FY2010.
Agency (EPA) is required
[Sec. 130(c)]
to do so. No new funding
is authorized. [Sec. 9307]
Grants for
The Secretary of
Extends the program of
No comparable provision.
No comparable
No comparable
See also H.R.
Cellulosic
Energy
construction grants for
provision.
provision.
3221, Sec. 5003
Ethanol
may provide grants for
cellulosic biofuel facilities
(above).
Production
the construction of
established in P.L. 109-58
facilities to produce
through FY2010 and
renewable fuels
authorizes $500 million
(including ethanol)
annually for FY2009 and
from cellulosic
FY2010. Directs the
biomass, agricultural
Secretary of Energy to
byproducts,
give priority to projects
agricultural waste, and
that “promote feedstock
municipal solid waste.
diversity and geographic
A total of $750 million
dispersion of production
is authorized for
facilities.”
FY2006-FY2008. [P.L.
[Sec. 9308]
109-58, Sec. 1512]

---

CRS-27
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Consumer
No current provision.
The Secretary of
No comparable provision.
No comparable
No comparable
Education
Transportation is required
provision.
provision.
Campaign
to carry out an
Relating to
educational program to
Flexible-Fuel
inform consumers about
Vehicles
flexible fuel vehicles,
including which existing
vehicles may be fueled on
E85.
[Sec. 9309]
Review of New
Under Sec. 211(f) of
Amends the Clean Air
No comparable provision.
No comparable
No comparable
Currently,
Renewable
the Clean Air Act, no
Act to prohibit the
provision.
provision.
inaction or failure
Fuels or New
new fuels or fuel
introduction of new
to complete
Renewable Fuel
additives may be
renewable fuels or
review of an
Additives
introduced into
renewable fuel additives
additive by EPA
commerce unless
unless EPA explicitly
allows a fuel to
granted a waiver by
grants a waiver under Sec.
receive the
EPA. If EPA has not
211(f) of the Clean Air
waiver. Under
acted within 180 days
Act. EPA is required to
H.R. 3221, no
of receipt of a waiver
take final action within
waiver would be
request, the waiver is
270 days of receipt of the
granted without
treated as granted.
waiver request.
explicit approval
[42 U.S.C. 7545(f)]
[Sec. 9310]
by EPA.

---

CRS-28
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Domestic
The EPA
Expands the incentive
No comparable provision.
No comparable
No comparable
Manufacturing
Administrator is
program for the domestic
provision.
provision.
Conversion
required to establish a
production of hybrid and
Grant Program
program to encourage
advanced diesel vehicles
the domestic
established in P.L. 109-58
production and sales of
to include flexible fuel
efficient hybrid and
vehicles. Requires that
advanced diesel
priority be given to auto
vehicles. The program
and parts manufacturing
must include grants to
facilities that have
domestic vehicle
“recently ceased operation
manufacturers to
or will cease operation in
encourage production
the near future.” Allows
and provide consumer
coordination with similar
purchase incentives.
state programs.
Such sums as
[Sec. 9311]
necessary are
authorized for
FY2006-FY2015.
[P.L. 109-58, Sec. 712]

---

CRS-29
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Cellulosic
No current provision.
Authorizes the Secretary
No comparable provision.
No comparable
No comparable
Ethanol and
of Energy to provide
provision.
provision.
Biofuels
biofuels R&D grants to 10
Research
institutions from land-
grant colleges,
Historically Black
Colleges or Universities,
tribal serving institutions,
or Hispanic serving
institutions. $50 million
for FY2008 is authorized
to be appropriated, to be
available until expended.
[Sec. 9312]
Federal Fleet
No current provision.
Requires the head of each
No comparable provision.
No comparable
No comparable
Refueling
federal agency to install at
provision.
provision.
Centers
least one renewable fuel
pump at each federal fleet
refueling center by
January 1, 2010.
[Sec. 9313]

---

CRS-30
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Study of Impact
By August 2009, EPA
The Secretary of Energy,
The EPA Administrator is
No comparable
No comparable
See also Sec.
of Increased
must publish a draft
in consultation with the
required to enter into an
provision.
provision.
14002 of H.R.
Renewable Fuel
analysis of the effects
EPA Administrator, the
agreement with the
3221, which
Use
of the fuels provisions
Administrator of the
National Academy of
would require the
in P.L. 109-58 on air
Energy Information
Sciences to study the
Secretary of the
pollutant emissions and
Administration (EIA), and
effects on the environment
Treasury to study
air quality. [P.L. 109-
the Secretary of
from increased renewable
related topics.
58, Sec. 1505]
Agriculture, is required to
fuel use. Study elements
study and assess the
include the effects on air
EPA is required to
impact of renewable fuels
and water quality, land use
conduct a survey to
on the U.S. economy.
patterns, deforestation,
determine the market
Study elements include
greenhouse gas emissions,
share of gasoline
the effects on energy
habitat, and the long-term
containing ethanol and
security, air and water
capacity of the United
other renewable fuels.
quality, infrastructure, job
States to produce biomass
[P.L. 109-58, Sec.
creation, and agricultural
feedstocks. The
1501(c)]
commodity markets. The
Administrator must submit
Secretary must report
two reports: 1) within
DOE is required to
within two years of
three years of enactment;
collect and publish
enactment and update the
and 2) by December 31,
monthly survey data on
report every three years
2015.
the production,
thereafter.
[Sec. 162]
blending, importing,
[Sec. 9314]
demand, and price of
renewable fuels, both
on a national and
regional basis.
[P.L. 109-58, Sec.

---

CRS-31
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Grants for
The Secretary of
Authorizes $25 million
Similar to H.R. 3221.
No comparable
No comparable
For more
Renewable Fuel
Energy is authorized to
annually for
[Sec. 125]
provision.
provision.
information, see
Production
conduct R&D and
FY2008-FY2010 for
Sec. 4407 of H.R.
R&D in Certain
deployment of
research, development,
3221 (above).
States
renewable fuel
and commercial
production
application of biofuel
technologies in certain
production in states with
states.
low rates of ethanol and
[P.L. 109-58, Sec.
cellulosic ethanol
1511(d)]
production.
[Sec. 9315]
Study of Effect
No current provision.
The Secretary of Energy
No comparable provision.
No comparable
No comparable
of Oil Prices
is required to study the
provision.
provision.
effects on renewable fuel
production of oil priced at
$40 a barrel or more.
[Sec. 9316]

---

CRS-32
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Biodiesel as
Under the Corporate
Amends the Corporate
No comparable provision.
No comparable
No comparable
Expanding the
Alternative fuel
Average Fuel
Average Fuel Economy
provision.
provision.
definition of
for CAFE
Economy (CAFE)
(CAFE) program to allow
alternative fuel
Purposes
program, automakers
vehicles capable of
vehicle to include
may generate credits
operating on B20 to be
B20 could make
toward their
treated as alternative fuel
all diesel
compliance for the
vehicles eligible for
passenger cars
production and sale of
CAFE credits.
and light trucks
alternative fuel
[Sec. 9317]
eligible for credits
vehicles, as defined in
under CAFE.
law. Currently, B20
Currently, some
vehicles are not
diesel passenger
considered alternative
vehicles are
fuel vehicles. [49
warrantied to run
U.S.C. 32901 et seq.]
on B5, but there
seem to be few
technical barriers
to making some
or all new diesel
vehicles B20-
capable.

---

CRS-33
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
H.R. 3221 Tax Provisions, Title XII — Conservation
Extension and
An owner of a retail
Increases the alternative
No comparable provision.
No comparable
Extends the
Modification of
fuel station may take a
fuel refueling property
provision.
alternative fuel
Alternative
tax credit for the
credit to 50% of the cost
refueling property
Fuel Vehicle
installation of
of the installation, up to
credit through
Refueling
alternative fuel tanks
$50,000. Extends the
December 31, 2010
Property Credit
and pumps. The credit
credit for fuels other than
for fuels other than
is equal to 30% of the
hydrogen through
hydrogen, but does
cost of the installation,
December 31, 2010.
not increase its value.
up to $30,000. For
[Sec. 12002]
[S. 2242, Sec. 332]
alternative fuels other
than hydrogen, the
credit expires on
December 31, 2009.
[P.L. 109-58, Sec.
1342]

---

CRS-34
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Extension and
A tax credit is
Amends the definition of
No comparable provision.
No comparable
Extends the biodiesel
Also see Sec.
Modification of
available for the retail
“renewable diesel” under
provision.
tax credit through
13011 of H.R.
Credits for
sale or use of biodiesel
the renewable diesel tax
December 31, 2010,
3221 below.
Biodiesel and
and renewable diesel.
credit to exclude
and the small agri-
Renewable
The credit is equal to
renewable diesel and
biodiesel producer
The modification
Diesel
$1.00 per gallon for
renewable diesel mixtures
tax credit through
in H.R. 3221 is
renewable diesel or
produced through certain
December 31, 2012.
presumably to
biodiesel produced
processes. Extends the tax
Further, the amount
limit the amount
from virgin
credits through December
of biodiesel
of credit claimed
agricultural products.
31, 2010.
coprocessed with
for renewable
The credit expires on
[Sec. 12003]
petroleum eligible
diesel produced at
December 31, 2008.
for the credit is
existing
[P.L. 108-357, P.L.
limited to 60 million
petroleum
109-58]
gallons.
refineries.
[Sec. 321]

---

CRS-35
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Tax Credit for
All fuel ethanol is
Establishes a credit of
No comparable provision.
No comparable
Establishes a credit
Production of
allowed a tax credit of
$0.50 per gallon for
provision.
for small producers
Cellulosic
$0.54 per gallon,
ethanol produced from
of cellulosic biomass
Alcohol
regardless of
cellulosic materials, in
alcohol through April
feedstock. Small
addition to any existing
1, 2015. The value
producers may claim
credits.
of the credit, plus the
an additional credit of
[Sec. 12004]
existing small
$0.10 per gallon.
ethanol producer
[26 U.S.C. 40]
credit and alcohol
fuels credits can not
exceed $1.28 per
gallon. Currently,
the credit would be
worth $0.58 per
gallon, but would
increase as the other
credits decrease or
phase out.
[S. 2242, Sec. 312]

---

CRS-36
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
H.R. 3221 Tax Provisions, Title XIII — Revenue Provisions
Clarification of
A tax credit is
Explicitly excludes fuels
No comparable provision.
No comparable
The amount of
The H.R. 3221
Eligibility for
available for the retail
“derived from
provision.
biodiesel
provision would
Renewable
sale or use (by
coprocessing biomass
coprocessed with
limit or prohibit
Diesel Tax
producers) of
with a feedstock which is
petroleum eligible
tax credits for
Credit
renewable diesel. The
not biomass” from
for the credit is
production of
credit is equal to $1.00
eligibility for the
limited to 60 million
renewable diesel
per gallon of
renewable diesel tax
gallons.
at existing
renewable diesel.
credit.
[Sec. 321]
petroleum
[P.L. 109-58]
[Sec. 13011]
refineries.
Clarification
A tax credit is
Limits eligibility for the
No comparable provision.
No comparable
No comparable
That Tax
available for the retail
biodiesel and renewable
provision.
provision.
Credits or Fuel
sale or use of biodiesel
diesel tax credits to fuels
are Designed to
and renewable diesel
produced in the United
Provide an
blended into
States.
Incentive for
conventional diesel.
[Sec. 13012]
United States
The credit does not
Production
recognize point of
origin.
[P.L. 108-357, P.L.
109-58]

---

CRS-37
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
H.R. 3221 Tax Provisions, Title XIV — Other Provisions
Comprehensive
No current provision.
The Secretary of the
No comparable
No comparable
No comparable
Both energy bills
Study of
Treasury is required to
requirement for the
provision.
provision.
would require
Biofuels
study the effects of
Secretary of the Treasury.
related studies by
increased biofuel use.
DOE or EPA.
Study elements include
See Sec. 9314 of
the effects on: fuel prices;
H.R. 3221 and
land prices; land use;
Sec.162 of H.R. 6
environment; agricultural
(above).
commodities; taxpayers;
and refining capacity.
[Sec. 14002]

---

CRS-38
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
H.R. 6 (Senate Version)
Renewable Fuel
The Energy Policy Act
No comparable provision.
Amends the RFS to
No comparable
No comparable
Standard
of 2005 established an
include all motor fuel, as
provision.
provision.
RFS which requires the
well as heating oil.
use of an increasing
Expands the mandate to
amount of renewable
13.2 billion gallons in
fuels in gasoline. The
2012 and 36 billion
mandate increases
gallons in 2022. Starting
from 4.0 billion
in 2016, requires an
gallons in 2006 to 7.5
increasing amount of the
billion gallons in 2012.
above mandate to be met
Starting in 2013, the
using “advanced biofuels,”
proportion of
defined as biofuels derived
renewable fuel to
from feedstocks other than
gasoline must equal or
corn starch. The bill
exceed the proportion
would require 3 billion
in 2012. Starting in
gallons of advanced
2013, of the amount
biofuel in 2016, increasing
mandated above, at
to 21 billion gallons in
least 250 million
2022. Renewable fuels
gallons must be fuel
produced in facilities that
derived from cellulosic
commence operation after
material.
enactment must achieve at
[P.L. 109-58, Sec.
least a 20% reduction in
1501]
lifecycle greenhouse gas
emissions relative to
gasoline.
[Sec. 111]

---

CRS-39
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Production of
Under the existing
No comparable provision.
Under Sec. 111 of H.R. 6,
No comparable
Authorizes USDA to
Renewable Fuel
RFS, cellulosic
a gallon of advanced
provision.
provide cost-sharing
Using
biofuels are eligible for
biofuel is considered equal
grants and loan
Renewable
additional credits
to a gallon of conventional
guarantees available
Energy
under the mandate. A
biofuel. This section
for repowering
gallon of cellulosic
grants the President the
existing biorefineries
biofuel is considered
authority to give additional
operating on fossil
equal to 2.5 gallons of
tax credits under the
fuels to switch to
ethanol. For this
program to biofuels
renewable energy.
section, “cellulosic
produced at facilities that
(For more
biofuels” includes both
use biomass to displace
information, see
biofuels produced from
fossil energy.
“Loan Guarantees
cellulose and biofuels
[Sec. 112]
and Grants for
produced from sugars
Biorefineries and
or starches (e.g., corn
Biofuel Production
ethanol) if biomass is
Plants” above - p.
used to displace fossil
13.)
energy in the refining
[Sec. 9005]
of the fuel.
[P.L. 109-58, Sec.
1501]

---

CRS-40
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Sense of
No current provision.
No comparable provision.
Expresses the Sense of the
Expresses the Sense of
Sense of Congress
Congress
Congress that renewable
the Congress that it is
encouraging higher
Relating to the
resources from agriculture
in the interest of the
levels of ethanol-
Use of
and forestry should
United States to
blended gasoline
Renewable
provide at least 25% of all
diversify its energy
(i.e., intermediate
Resources to
U.S. energy needs by
portfolio and promote
blends such as E13,
Generate
2025.
energy security through
E15, E20 and
Energy
[Sec. 113]
renewable energy.
higher).
[Sec. 9016]
[Sec. 9002]
Grants for
No current provision.
No comparable provision.
Requires the Secretary of
Allows the Secretary of
Requires the
Infrastructure
Energy to make grants to
Agriculture to provide
Secretary to provide
for
local governments and
matching payments for
payments for the
Transportation
other entities (as
the collection,
collection,
of Biomass to
determined by the
harvesting, storage and
harvesting, storage
Local
Secretary) to promote the
transport of biomass to
and transport of
Biorefineries
development of
biorefineries. The
biomass to
infrastructure to produce,
Secretary may match
biorefineries. A
separate, process, and
payments by
fixed rate per ton
transport biomass to
biorefineries dollar-for-
would be determined
biorefineries.
dollar up to $45 per
by the Secretary.
[Sec. 126]
ton.
[Sec. 9004(d)]
[Sec. 9018(m)]

---

CRS-41
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Alternative
No current provision.
No comparable provision.
Requires the Secretary of
As part of new
Similar provision to
Fuel Database
Energy and the National
Biomass Energy
H.R. 2419.
and Materials
Institute of Standards and
Reserve program (see
[Sec. 9004(e)]
Technology to establish: 1)
next page), participants
a public database
are required to submit
describing the physical
relevant information to
properties of different
the Secretary of
alternative fuels; and 2)
Agriculture for
standard reference
inclusion in a public
materials for different
best practices database.
alternative fuels.
[Sec. 9018(l)]
[Sec. 128]
Fuel Tank
No current provision.
No comparable provision.
Beginning in model year
No comparable
No comparable
Labeling
2010, would require that
provision.
provision.
Requirement
the fuel tank cap of an
alternative fuel vehicle be
clearly labeled as such.
[Sec. 129]
Biodiesel
No current provision.
No comparable provision.
Requires the President to
No comparable
No comparable
Labeling
promulgate rules for the
provision.
provision.
Standards
uniform labeling of
biodiesel blends that meet
ASTM International
(formerly the American
Society for Testing and
Materials) standards.
[Sec. 130(b)]

---

CRS-42
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Financial
No current provision.
No comparable provision.
Requires the Secretary of
Establishes a new
Creates the Biomass
Assistance for
Agriculture to provide
Biomass Energy
Crop Transition
the Production
transitional assistance
Reserve (BER).
Program to stimulate
of Biomass
payments to agricultural
Provides financial and
production of
Energy Crops
producers in the first year
technical assistance
biomass crops.
they produce eligible
(including five-year
USDA provides
cellulosic energy crops. $4
contracts) to
assistance with
million is authorized
landowners and
establishment costs
annually for FY2008-
operators to grow
for the production of
FY2012.
dedicated energy crops
bioenergy crops for
[Sec. 131]
as feedstock for
use in a biomass
cellulosic ethanol and
conversion facility.
other energy
Provides $130
production. Incentives
million in mandatory
also cover producer
funding for FY2008-
harvesting, storing, and
FY2012 to support
transporting of biomass
biomass production.
to bioenergy facilities.
[Sec. 9004]
BER projects would
have to be within a
50-mile radius of a
bioenergy facility.
Authorizes mandatory
funding of such sums
as are necessary.
[Sec. 9018]

---

CRS-43
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
R&D in
No current provision.
No comparable provision.
Establishes a program of
No comparable
No comparable
Support of
R&D grants for research
provision.
provision.
Low-Carbon
on low carbon fuels,
Fuels
including cellulosic
biofuels and woody
biomass for fuels and
electricity. A total of $275
million is authorized for
FY2009-FY2013.
[Sec. 132]
Study of
No current provision.
No comparable provision.
Requires the Secretary of
No comparable
No comparable
Advanced
Advanced
Energy to contract with the
provision.
provision.
biofuels are
Biofuels
National Academy of
biofuels produced
Technologies
Sciences to study
from feedstocks
technologies for the
other than corn
production, transportation,
starch. (See Sec.
and distribution of
111 of H.R. 6
“advanced biofuels.”
above.)
[Sec. 141]

---

CRS-44
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Study of
No current provision.
No comparable provision.
Requires the President to
No comparable
No comparable
Incentives for
study the renewable fuels
provision.
provision.
Renewable
industry and markets to
Fuels
determine production
costs, factors affecting
market prices, and
financial incentives
necessary to enhance the
U.S. biofuels industry.
[Sec. 147]
Study of Effects
No current provision.
No comparable provision.
Requires the Secretary of
No comparable
No comparable
of Ethanol-
Energy to study the effects
provision.
provision.
Blended
of ethanol-blended
Gasoline on
gasoline on off-road
Off-Road
vehicles and recreational
Vehicles
boats.
[Sec. 149]
Grants for
No current provision.
No comparable provision.
Requires the Secretary of
No comparable
No comparable
Advanced
Production of
Energy to establish a grant
provision.
provision.
biofuels are
Advanced
program for the production
biofuels produced
Biofuels
of advanced biofuels that
from feedstocks
have at least a 50%
other than corn
reduction in lifecycle
starch. (See Sec.
greenhouse gas emissions
111 of H.R. 6.)
relative to current fuels.
[Sec. 161]

---

CRS-45
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Integrated
Section 211(c) of the
No comparable provision.
Expands EPA’s authority
No comparable
No comparable
Consideration
Clean Air Act allows
to control engines,
provision.
provision.
of Water
the EPA Administrator
vehicles, fuels, and fuel
Quality in
to control or prohibit
additives under Sec.
Determinations
the production and/or
211(c) of the Clean Air
on Fuels and
sale of any engine,
Act to include effects on
Fuel Additives
vehicle, fuel, or fuel
water pollution.
additive that causes or
[Sec. 163]
contributes to air
pollution “that may be
reasonably anticipated
to endanger the public
health or welfare.”
[42 U.S.C. 7545(c)]
Anti-
No current provision.
No comparable provision.
Requires the EPA
No comparable
No comparable
Backsliding
Administrator to study the
provision.
provision.
potential adverse effects to
air quality from the
expanded RFS (see
“Renewable Fuel
Standard” - H.R. 6, Sec.
111), and to promulgate
regulations to mitigate
those effects.
[Sec. 164]

---

CRS-46
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Alternative
No current provision.
No comparable provision.
Requires the Secretary of
No comparable
No comparable
Fuel Vehicle
Transportation to develop
provision.
provision.
Action Plan
and implement an action
plan so that alternative fuel
vehicles (including E85
vehicles) represent at least
50% of new vehicle sales
nationwide by 2015.
[Sec. 520]
H.R. 2419 - House Farm Bill
Farm Energy
No current provision.
No comparable provision.
No comparable provision.
Establishes a pilot
No comparable
See also H.R.
Production and
program to provide
provision.
2419, Sec. 9015
Use Pilot
grants to farmers to
(below).
Program
demonstrate the
feasibility of making a
farm become energy
neutral using existing
technologies.
Authorizes a total of $5
million for FY2008-
FY2012.
[Sec. 9010]

---

CRS-47
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Rural Energy
No current provision.
No comparable provision.
No comparable provision.
Establishes the Rural
Establishes a
Self-Sufficiency
Energy Self-
program — the Rural
Initiative Grant
Sufficiency Initiative to
Energy Systems
Program
provide cost-share
Renewal Program —
grants to enable eligible
of competitive
rural communities (of
cost-shared grants for
less than 25,000) to
rural communities to
substantially increase
assess their energy
their energy self-
systems and
sufficiency. The grant
formulate strategies
may not exceed 75% of
for improvements.
costs. Requires a
Authorizes
report to Congress on
discretionary funding
best practices/
of $5 million for
approaches. Total
each of FY2008-
grants under this
FY2012.
section are limited to
[Sec. 9014]
no more than 5 per
year, and authorizes
appropriations of not
more than $5 million
for FY2008, and such
sums as are necessary
for FY2009-FY2012.
[Sec. 9011]

---

CRS-48
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Agricultural
No current provision.
No comparable provision.
No comparable provision.
Provides 3rd and 4th
No comparable
Biofuels from
year undergraduate or
provision.
Biomass
graduate students from
Internship
universities in states
Program
with substantial
farm-based economies
the opportunity to work
with U.S. government
and non-governmental
organizations on
matters pertaining to
renewable energy
policies. Requires
states to match $1 for
every $2 of federal
funds. Authorizes such
sums as are necessary
to carry out the
program.
[Sec. 9012]
Biomass
No current provision.
No comparable provision.
No comparable provision.
Instructs USDA to
No comparable
Inventory
conduct a national
provision.
Report
inventory of biomass
resources on a
county-by-county
basis.
[Sec. 9014]

---

CRS-49
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Future
No current provision.
No comparable provision.
No comparable provision.
Establishes a program
Identical provision.
See also H.R.
Farmsteads
to equip farm entities
[Sec. 9023]
2419, Sec. 9010
Program
(house and lands), in
(above).
each of 5 regions of the
country, with
technologies to
improve farm energy
production and use
efficiencies. Each
designated entity would
serve as a working
example to farmers and
as an educational,
research, and
demonstration facility
for research related to
renewable energy or
energy conservation
technologies.
Authorizes such sums
as are necessary to
carry out the program.
[Sec. 9015]

---

CRS-50
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Community
No current provision.
No comparable provision.
No comparable provision.
New competitive
Substantially similar
Wood Energy
research and
to H.R. 2419, except
R&D Program
development program
that $5 million
to encourage the use of
annually is
woody biomass for
authorized (not
bioenergy production.
mandatory) for
Provides mandatory
FY2008-FY21012.
CCC funding of $15
[Sec. 9013]
million for each of
FY2008-FY2012.
[Sec. 9019]
Supplementing
No current provision.
No comparable provision.
No comparable provision.
New grant program for
No comparable
Corn as an
demonstration of
provision.
Ethanol
supplementing corn as
Feedstock
an ethanol feedstock
with sweet sorghum
and switchgrass. The
program permits grants
of up to $1 million
each to no more than
20 universities for
three-year
demonstration
programs. Authorizes
funding of $20 million.
[Sec. 9020]

---

CRS-51
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
S. 2302 - Senate Farm Bill
Regional
No current provision.
No comparable provision.
No comparable provision.
No comparable
Provides competitive
Biomass Crop
provision.
grants to land-grant
Experiments
universities to
establish regional
bioenergy crop
research
experiments. Crop
experiments are to
include all
appropriate biomass
plant species,
including perennials,
annuals, and woody
biomass species.
Provides mandatory
funding of $40
million for FY2008-
FY2012.
[Sec. 9010]

---

CRS-52
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Biochar
No current provision.
No comparable provision.
No comparable provision.
No comparable
Creates a program of
“Biochar” is
Research,
provision.
competitive R&D
defined as
Development
grant program for the
charcoal or
and
production and use
biomass-derived
Demonstration
of biochar in the
black carbon that
agricultural sector.
is added to soil to
Authorizes $3
improve soil
million for each of
fertility, nutrient
FY2008-FY2012.
retention, and
[Sec. 9011]
carbon content.
Voluntary
No current provision.
No comparable provision.
No comparable provision.
No comparable
Establishes a
Renewable
provision.
voluntary
Biomass
certification program
Certification
for renewable
Program
biomass that is
grown using
sustainable practices.
No new funding.
[Sec. 9015]
Rural Nitrogen
No current provision.
No comparable provision.
No comparable provision.
No comparable
Directs USDA to
Fertilizer Study
provision.
assess the feasibility
of producing
nitrogen fertilizer
from renewable
energy. Authorizes
$1 million for
FY2008. [Sec. 9018]

---

CRS-53
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Research and
No current provision.
No comparable provision.
No comparable provision.
No comparable
Requires USDA to
Development
provision.
research, with the
on Renewable
Colorado Renewable
Energy
Energy Collabor-
atory, on renewable
energy including
biomass crops
adapted to arid
regions, and storage
and conversion
technologies for
wind and solar
energy. Authorizes
$5 million for each
of FY2008-FY2012.
Additional
authorization of
$110 million
annually for
FY2008-FY2012 for
cellulosic biofuel
research. Additional
authorization of $110
million annually for
FY2008-FY2012 for
small-scale
biorefinery R&D.
[Sec. 9021]

---

CRS-54
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Northeast
No current provision.
No comparable provision.
No comparable provision.
No comparable
Establishes an R&D
Dairy Nutrient
provision.
grant program to
Management
provide for a
and Energy
consortium of
Development
Northeast U.S.
Program
land-grant colleges
and universities for
projects on dairy
nutrient management
and energy
development.
Authorizes such
sums as are
necessary.
[Sec. 9022]
Expansion of
The Tax Relief and
No comparable provision.
No comparable provision.
No comparable
Expands the special
Special
Health Care Act of
provision.
allowance to plants
Allowance to
2006 allows 50% tax
that produce all
Cellulosic
depreciation in the first
alcohols (not just
Biomass
year of operation for
ethanol) produced
Alcohol Fuel
plants that produce
from cellulosic
Plant Property
ethanol from cellulosic
biomass.
biomass.
[S. 2242, Sec. 311]
[P.L. 109-432, Sec.
209]

---

CRS-55
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Extension of
The Omnibus Budget
No comparable provision.
No comparable provision.
No comparable
Extends the credit
Small Ethanol
Reconciliation Act of
provision.
through December
Producer Tax
1990 established a
31, 2012. (The
Credit
credit of $0.10 per
credit is currently
gallon for each gallon
available through
of ethanol produced by
December 31, 2010.)
a small producer, up to
[S. 2242, Sec. 313]
15 million gallons
annually. A small
producer is defined as
one with less than 60
million gallons in
annual production
capacity. [P.L. 101-
508, Sec. 11502]
Tax Credit for
No current provision.
No comparable provision.
No comparable provision.
No comparable
Establishes a credit
Producers of
provision.
of $0.25 per gallon
Fossil-Free
(in addition to any
Alcohol
other credit), up to
60 million gallons,
for the production of
alcohol at a facility
for which at least
90% of the energy
used to operate the
facility is biomass-
derived.
[S. 2242, Sec. 314]

---

CRS-56
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Modification of
The American Jobs
No comparable provision.
No comparable provision.
No comparable
In the first calendar
Alcohol Tax
Creation Act of 2004
provision.
year after EPA
Credit
established a tax credit
certifies that 7.5
for the use of ethanol
billion gallons of
used as motor fuel.
renewable fuel have
The credit is valued at
been blended into
$0.51 per gallon of
gasoline, the credit is
ethanol blended into
reduced to $0.46 per
gasoline.
gallon.
[P.L. 108-357, Sec.
[S. 2242, Sec. 315]
301]
Calculation of
Currently, any
No comparable provision.
No comparable provision.
No comparable
The volume of any
A denaturant is
Volume of
denaturant added to
provision.
denaturant would be
added to ethanol
Alcohol for
alcohol is considered
excluded from the
to make it unfit
Fuel Tax
as part of the volume
applicable volume
for human
Credits
of alcohol for tax
for tax purposes.
consumption. In
purposes.
[S. 2242, Sec. 316]
most cases,
[26 U.S.C. 40(d)(4)]
gasoline is used
as the denaturant
for fuel ethanol.
Ethanol Tariff
In general, fuel ethanol
No comparable provision.
No comparable provision.
No comparable
Extends the duties
Extension
imports are subject to a
provision.
through December
$0.54 per gallon duty
31, 2010.
and a 2.5% ad valorem
[S. 2242, Sec. 317]
tariff. The duties
expire January 1, 2009.
[P.L. 99-499]

---

CRS-57
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Elimination and
Currently, if a
No comparable provision.
No comparable provision.
No comparable
To qualify for the
In the case of fuel
Reductions of
manufacturer imports
provision.
drawback, the
ethanol, currently
Duty Drawback
an intermediate
exported product
in many cases the
on Certain
product then exports
must contain ethanol
imported ethanol
Imported
the finished product or
for which duties have
is used as a
Ethanol
a similar product, that
been previously paid.
blending
manufacturer may be
[S. 2242, Sec. 318]
component in
eligible for a refund
gasoline. Jet fuel
(drawback) of up to
(containing no
99% of the duties paid.
ethanol, but
The duty drawback
considered a “like
provisions include
commodity” to
special provisions for
the finished
the production of
gasoline) is
petroleum derivatives.
exported to
qualify for the
drawback in lieu
of finished
gasoline
containing the
originally
imported ethanol.

---

CRS-58
Topic
Current Law
House Energy Bill -
Senate Energy Bill -
House Farm Bill -
Senate Farm Bill -
Notes
H.R. 3221
H.R. 6 (Senate Version)
H.R. 2419
S. 2302
Treatment of
Currently, qualified
No comparable provision.
No comparable provision.
No comparable
Amends the tax code
In some cases
Qualified
alcohol and qualified
provision.
to define qualified
currently, a small
Alcohol
biodiesel fuel mixtures
alcohol and biodiesel
amount of
Mixtures and
are not considered
fuel mixtures as
biodiesel is added
Qualified
taxable fuel. Some
taxable fuel.
to diesel fuel,
Biodiesel Fuel
fuel mixtures therefore
[Sec. 322]
presumably to
Mixtures as
may be eligible for tax
avoid the taxes on
Taxable Fuel
credits even though
diesel fuel.
they are not subject to
fuels taxes.

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