Order Code RL34130
Renewable Energy Policy in the 2007 Farm Bill
Updated January 10, 2008
Randy Schnepf and Tom Capehart
Specialists in Agricultural Policy
Resources, Science, and Industry Division

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Renewable Energy Policy in the 2007 Farm Bill
Summary
On July 27, 2007, the House passed a farm bill, the Farm, Nutrition, and
Bioenergy Act of 2007 (H.R. 2419). On December 14, 2007, the Senate approved
its version of the 2007 farm bill (Senate substitute amendment to H.R. 2419), but
with substantial amendments. A House-Senate conference will work to resolve the
major differences between the two chambers’ bills in early 2008. This report
provides a summary of the energy provisions in these two bills and compares them
with current law.
Renewable energy’s role in the 2002 farm bill is contained in Title IX — the
energy title — and concentrates on grants, loans, and loan guarantees to foster
research on agriculture-based renewable energy, to share development risk, and to
promote the adoption of renewable energy systems. USDA’s Bioenergy Program
(Sec. 9006 of P.L. 107-171), whose funding expired in FY2006, has been the primary
exception in that it provided incentives to expand actual production of bioenergy.
Both the House- and Senate-passed farm bills retain Title IX as the energy title, but
expand and extend several energy provisions from the 2002 farm bill with substantial
increases in funding and a heightened focus on developing cellulosic ethanol
production. The Senate-passed farm bill also includes an additional title — Title XII
— which contains tax provisions affecting renewable energy. Both bills establish a
new program — the Bioenergy Reserve Program in the House version and the
Biomass Crop Transition Assistance Program in the Senate — with mandatory
funding to stimulate and facilitate the production, harvest, storage, and processing of
cellulosic biomass feedstock. In addition, both bills include several new studies,
research and demonstration projects, and pilot programs targeted to specific issues
within the renewable energy purview that would be subject to annual appropriations.
Funding levels for the provisions of the energy title vary under the two farm
bills. In addition, the Senate farm bill includes production incentives that extend
(and enlarge in the case of cellulosic ethanol) current biofuels production tax credits.
Such differences in new energy funding, as well as differences in budgetary revenue
and cost offsets related to “pay-go” budget restrictions, will likely have to be resolved
in conference. For more information this and other farm bill issues, see CRS Report
RL33934, Farm Bill Proposals and Legislative Action in the 110th Congress.
In addition to forthcoming farm bill action, the President has recently signed
into law a new energy act (P.L. 110-140; December 19, 2007) that covers a wide
range of topics with extensive attention to biofuels and other renewable energy
sources. In particular, it includes a dramatic expansion of the Renewable Fuels
Mandate to 36 billion gallons by 2022 with carve-outs for biodiesel (1 billion gallons
by 2012) and cellulosic ethanol (16 billion gallons by 2022) and an implicit cap on
corn-starch ethanol (15 billion gallons by 2015). For more information on these
energy bills and their relation to the farm bills, see CRS Report RL34239, Biofuels
in 2007 Energy and Farm Bills: A Side-by-Side Comparison.
This report will be updated as events warrant.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
House Farm Bill Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
H.R. 2419 Approved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
House Energy Funding Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Senate Farm Bill Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Senate Substitute Amendment to H.R. 2419 Approved with
Further Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Senate Energy Funding Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Comparison of House and Senate Farm Bill Energy Provisions . . . . . . . . . . 4
Related Congressional Energy Bill Action . . . . . . . . . . . . . . . . . . . . . . . . . . 4
The Administration’s Farm Bill Energy Proposals . . . . . . . . . . . . . . . . . . . . 5
List of Tables
Table 1. 2002 Farm Bill Title IX Energy Funding (Presidential Request,
Authorization, and Enactment) by Provision, FY2002 to FY2007 . . . . . . . . 6
Table 2. House Farm Bill (H.R. 2419): Proposed Funding for
Title IX Energy Provisions, FY2008-FY2012 . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 3. Senate Farm Bill (H.R. 2419 with amendments): Proposed Funding
for Title IX Energy Provisions, FY2008-FY2012 . . . . . . . . . . . . . . . . . . . . . 9
Table 4. Comparison of Current Law with the House-Passed 2007 Farm Bill
(H.R. 2419; July 27, 2007) and the Senate-Passed 2007 Farm Bill
(H.R. 2419 with amendments; December 14, 2007) . . . . . . . . . . . . . . . . . . 11

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Renewable Energy Policy
in the 2007 Farm Bill
Introduction
The 2002 farm bill — the Farm Security and Rural Investment Act of 2002 (P.L.
107-171) — was the first farm bill to explicitly include an energy title (Title IX).
Title IX’s role in the 2002 farm bill was concentrated on grants, loan, and loan
guarantees to foster research on agriculture-based renewable energy, to share
development risk, and to promote the adoption of renewable energy systems.1 In
addition, USDA’s Bioenergy Program (Sec. 9006 of P.L. 107-171) — whose funding
expired in FY2006 — provided direct incentives to expand actual production of
bioenergy. Table 1 provides a list of current-law energy provisions and their funding
(as requested by the President, and as authorized and enacted by Congress) derived
from the 2002 farm bill’s energy title for FY2002 through FY2007.
Since enactment of the 2002 farm bill, interest in renewable energy has grown
rapidly due, in large part, to a strong rise in domestic and international fuel prices and
a dramatic acceleration in domestic biofuel production (mostly ethanol).2 Many
policymakers view agriculture-based biofuels as both a catalyst for rural economic
development and a response to growing energy import dependence. 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.3
However, emerging concerns related to corn-based ethanol production are generating
greater policy interest in the potential for cellulosic ethanol production which appears
to offer many environmental benefits over corn-based ethanol.4
Renewable energy policy initiatives have been included in almost every 2007
farm bill proposal in both the House and Senate. In most cases, legislative proposals
involved expanding and/or extending bioenergy provisions from the 2002 farm bill.
Strong congressional interest in maintaining, if not expanding, agriculture’s role in
1 For more information see CRS Report RL32712, Agriculture-Based Renewable Energy.
For details of current law, see USDA, 2002 Farm Bill, “Title IX — Energy,” available at
[http://www.ers.usda.gov/Features/Farmbill/titles/titleIXenergy.htm].
2 For more information on agriculture and bioenergy, see CRS Report RL32712,
Agriculture-Based Renewable Energy Production; and CRS Report RL33290, Fuel Ethanol:
Background and Public Policy Issues, by Brent Yacobucci.
3 For a listing of federal incentives in support of biofuels production, see CRS Report
RL33572, Biofuels Incentives: A Summary of Federal Programs, by Brent D. Yacobucci.
4 For more information see CRS Report RL33928, Ethanol and Biofuels: Agriculture,
Infrastructure, and Market Constraints Related to Expanded Production, by Brent
Yacobucci and Randy Schnepf.

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CRS-2
renewable energy production was signaled early in the farm bill congressional debate,
when both Chairman Collin Peterson of the House Agriculture Committee and
Senator Ken Salazar (a member of the Senate Agriculture Committee) introduced
resolutions in January 2007 that “express the sense of Congress” that U.S.
agricultural, forestry, and working lands should provide from renewable resources
25% of the total U.S. energy consumption by 2025 (H.Con.Res. 25/S.Con.Res. 3).5
House Farm Bill Action
H.R. 2419 Approved. On July 27, 2007, the House approved a new farm bill
— the Farm, Nutrition, and Bioenergy Act of 2007 (H.R. 2419) — which includes
a new energy title (Title IX). The House-passed H.R. 2419 expands and extends
several provisions from the energy title of the enacted 2002 farm bill with substantial
increases in funding and a heightened focus on developing cellulosic ethanol
production. The House bill authorizes $3.2 billion in new mandatory funding and
over $1.4 billion in new discretionary spending (i.e., spending subject to annual
appropriations) for Title IX energy provisions over five years. In particular, H.R.
2419 proposes $1.4 billion in production incentive payments on new biofuels
production under an extension of the USDA Bioenergy Program; $800 million in
new funding to underwrite up to $2 billion in loan guarantees for the development
of new biorefineries; $420 million in new funding for research on biomass
production, harvest, transportation, and storage under the Biomass Research and
Development Act ; and new mandatory funding for a biomass reserve for cellulosic
feedstock under the Biomass Energy Reserve Program. See Table 2 for a complete
listing of energy provisions in H.R. 2419, including proposed mandatory and
discretionary funding for FY2008 through FY2012.
House Energy Funding Issues. Because all mandatory funding authority
under the energy title of the 2002 farm bill expires either on or before the end of
fiscal 2007, CBO budget scoring showed no funding in the baseline budget for an
energy title under new farm legislation.6 Under current budget law, this posed “pay-
go” budget issues, since any new initiatives with new spending would have to be
offset with either increased revenue or reductions in other spending.7 To address this
issue, the House Agriculture Committee (HAC) turned to the House Ways and Means
Committee (HWMC). In turn, the HWMC was able to find several revenue offsets
from outside of the agriculture budget.8 CBO estimates that these provisions would
5 H.Con.Res. 25 was approved by the House on October 15, 2007. S.Con.Res. 3 was
referred to the Senate Agriculture Committee on January 17, 2007. No action has been
taken on S.Con.Res. 3 to date.
6 Congressional Budget Office, March 2007 Baseline Budget. For more information, see
CRS Report RS22694, Farm Bill Budget and Costs: 2002 vs. 2007, by Ralph Chite.
7 For more information see CRS Report RL33850, The House’s ‘Pay-As-You-Go’ (PAYGO)
Rule in the 110th Congress: A Brief Overview, by Robert Keith.
8 For more information, see CRS Report RS22759, Farm Legislation and Taxes in 2007, by
David Brumbaugh.

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CRS-3
produce total offsets of $2.2 billion over five years.9 The HWMC budget offsets
were passed as part of H.R. 2419.
Senate Farm Bill Action
Senate Substitute Amendment to H.R. 2419 Approved with Further
Amendments. The Senate approved its version of a 2007 farm bill (Senate
substitute amendment to H.R. 2419) on December 14, 2007. The Senate-approved
farm bill also includes a new energy title (Title IX) that expands and extends several
provisions from the energy title of the enacted 2002 farm bill similar to the House-
passed H.R. 2419, but with different funding levels and priorities. The Senate bill
authorizes $1.1 billion in new mandatory funding and over $2 billion in new
discretionary spending. See Table 3 for a complete listing of energy provisions in
the Senate-approved farm bill, including proposed mandatory and discretionary
funding for FY2008 through FY2012.
Senate Energy Funding Issues. As in the House, the Senate is expected
to adhere to “pay-go” budget restrictions. However, Senate Agriculture Committee
(SAC) members expressed general disagreement with the budget offsets proposed by
the House Ways and Means Committee to free up funds for new energy provisions.
Instead, the SAC turned to the Senate Finance Committee (SFC) for assistance in
finding alternate budget offsets to allow for new energy funding. SFC Chairman
Baucus proposed a tax package that provides incentives for conservation, alternative
energy production, rural development, and to create a permanent disaster relief
fund.10 The tax package was approved by the SFC on October 4, 2007, and reported
out as S. 2242. The SFC tax package was appended to Senate Agriculture
Committee’s manager’s amendment as Title XII, “Trade and Tax Provisions,” and
included in the final Senate-passed farm bill with only minor modifications.
Renewable energy-related provisions in the newly appended Title XII include
several provisions related to biofuel production tax credits (PTCs) presently available
to blenders of biofuels. For example, Title XII extends for two years both the current
biodiesel PTCs (through December 31, 2010) and the small ethanol PTC (through
December 31, 2012). It also expands the PTC for cellulosic ethanol production to
$1.25 per gallon (compared with the current non-cellulosic ethanol PTC of $0.51 per
gallon). In contrast, among Title XII’s proposed offsets is a reduction in the ethanol
PTC from $0.51 per gallon to $0.46 per gallon beginning with the first calendar year
after the year in which 7.5 billion gallons of ethanol has been produced. CBO
projects that the PTC reduction of $0.05/gallon will save nearly $0.9 billion during
FY2008-FY2012. Title XII also extends the tariff on imported ethanol for two years
(through December 31, 2010).
9 For more information, see Congressional Quarterly, “The Farm Bill,” Floor Summary, No.
110-14, July 31, 2007.
10 “Finance Chairman Outlines Agriculture Tax Package,” Senate Finance Committee News
Release, September 11, 2007; [http://finance.senate.gov/press/Bpress/2007press/prb
091107a.pdf].

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Comparison of House and Senate Farm Bill
Energy Provisions
Both the House- and Senate-passed versions of the 2007 farm bill retain Title
IX as the Energy title, but with modifications. (See Table 4 for a side-by-side
comparison of current law with the energy titles from the House- and Senate-
approved farm bills.) Both bills retain and extend several energy provisions from the
2002 farm bill with mandatory funding include the federal biobased product
preference program, the biorefinery development grant and loan guarantee program,
the renewable energy systems and energy efficiency improvements program, the
Biomass Research and Development Act, and the Biodiesel Fuel Education Program.
Both bills establish a new program — the Bioenergy Reserve Program in the House
version and the Biomass Crop Transition Assistance Program in the Senate — with
mandatory funding to stimulate and facilitate the production, harvest, storage, and
processing of cellulosic-based biomass feedstock. In addition, a variety of studies,
research and demonstration projects, and pilot programs targeted to specific issues
within the renewable energy purview that would be subject to annual appropriations
are included in the two bills. Both bills also add new funding and extend the USDA
bioenergy program. However, in a key departure from current farm bill, all new
bioenergy funding is directed away from corn starch-based ethanol production and
toward either cellulosic-based biofuels production or new as-yet-undeveloped
technologies with some type of agricultural linkage.
Funding levels and the sources of funding for the provisions of the energy title
differ somewhat under the two farm bills. The House-passed version authorizes
substantially more in new mandatory funding ($3.2 billion versus $1.1 billion) but
less in discretionary funding ($1.4 billion versus $2 billion) for provisions of the
energy title. In addition, substantial differences exist between the budget funding
offsets proposed by the HWMC and the SFC. The funding of new or extended
energy provisions hinges on the ultimate resolution of such differences in conference.
Related Congressional Energy Bill Action
Many of the federal programs that currently support renewable energy
production in general, and agriculture-based energy production in particular, are
outside the purview of USDA and have legislative origins outside of the farm bill.11
For example, the Renewable Fuels Standard mandating the inclusion of an increasing
volume of biofuels in the national fuel supply originated with the Energy Policy Act
of 2005 (P.L. 109-58). Similarly, the federal tax credits available to biofuels blenders
and wind energy producers were most recently extended by the American Jobs
Creation Act of 2004 (P.L. 108-357).
More recently, the President has signed into law a new energy act — the
Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007 (P.L.
110-140; December 19, 2007) — that covers a wide range of topics with extensive
11 For more information see CRS Report RL32712, Agriculture-Based Renewable Energy.
For a complete listing of renewable energy legislative proposals introduced during the 110th
Congress, see CRS Report RL33831, Energy Efficiency and Renewable Energy Legislation
in the 110th Congress, by Fred Sissine, Anne Gillis, and Mark Gurevitz.

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CRS-5
attention to biofuels and other renewable energy sources.12 In particular, it includes
a dramatic expansion of the Renewable Fuels Standard to 36 billion gallons by 2022
with carve-outs for biodiesel (1 billion gallons by 2012) and cellulosic ethanol (16
billion gallons by 2022) and an implicit cap on the inclusion of corn-starch ethanol
(15 billion gallons by 2015). This RFS expansion is likely to have a significant
impact on the U.S. agriculture sector.13
The Administration’s Farm Bill Energy Proposals
In late January 2007, the Administration released a comprehensive 2007 farm
bill proposal for consideration in advance of the legislative debate.14 Because of its
early release, the USDA proposal likely provided a useful template for many of the
provisions included in both the House and Senate farm bill proposals. In particular,
Title IX of the Administration’s farm bill proposal included $1.6 billion in new
funding for basic and applied research on renewable energy as well as loan and loan
guarantee programs to share the risk associated with developing and commercializing
new energy technologies. As with both House and Senate farm bills, the primary
focus of USDA’s proposed funding is the development of cellulosic ethanol
production including a biomass reserve for cellulosic feedstock and funding for
Forest Service research on the use of woody biomass.
Despite many similarities between the President’s farm bill proposal and both
the House- and Senate-passed farm bills, the Administration has expressed its
dissatisfaction with both bills, citing budget offset measures used to fund new
programs, the need for tighter farm income subsidy limits, and an alleged general
lack of reform from traditional commodity support programs. The Administration
is calling for substantial changes in the farm bill to come out of conference in order
to avoid a presidential veto.15
12 For more information, see CRS Report RL34294, Energy Independence and Security Act
of 2007: A Summary of Major Provisions, coordinated by Fred Sissine.
13 For more information, see CRS Report RL34265, Seclected Issues Related to an
Expansion of the Renewable Fuel Standard (RFS), by Brent Yacobucci and Randy Schnepf.
14 USDA’s 2007 farm bill proposal is available online at [http://www.usda.gov/wps/
portal/!ut/p/_s.7_0_A/7_0_1UH?navid=FARM_BILL_FORUMS].
15 For more information see, “Transcript of Remarks by Acting Agriculture Secretary Chuck
Conner at a Tele-News Conference Regarding the Passage of the Senate Farm Bill, USDA
News Release No. 0376.07, Washington, DC, December 14, 2007.

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CRS-6
Table 1. 2002 Farm Bill Title IX Energy Funding (Presidential Request, Authorization, and Enactment)
by Provision, FY2002 to FY2007
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007d
Pres.
Pres.
Pres.
Pres.
Pres.
Pres.
Current law provision
Req. Auth. Enact.a Req. Auth. Enact.a Req. Auth. Enact.a Req. Auth. Enact.a Req. Auth. Enact.a Req. Auth. Enact.a
$ millions
$ millions
$ millions
$ millions
$ millions
$ millions
Sec. 9002 Federal Biobased Product Procurement
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
0
Sec. 9003*Biorefinery Development Grants
0 SSAN
0
0 SSAN
0
0 SSAN
0
0 SSAN
0
0 SSAN
0
0 SSAN
0
Sec. 9004 Biodiesel Fuel Education Program
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
0
Sec. 9005*Energy Audit and Renewable Energy
0 SSAN
0
0 SSAN
0
0 SSAN
0
0 SSAN
0
0 SSAN
0
0 SSAN
0
Program
Sec. 9006 Renewable Energy Systems b
23
23
23
18
23
23
3
23
23
11
23
23
10
23
23
10
23
0
Sec. 9007*Hydrogen and Fuel Cell Technologies
0 SSAN
0
0 SSAN
0
0 SSAN
0
0 SSAN
0
0 SSAN
0
0 SSAN
0
Sec. 9008*Biomass Research and Development c
5
54
5
14
63
14
14
63
14
14
63
14
12
214
12
12
214
0
Sec. 9009 Cooperative Research and Extension
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Projects
Sec. 9010*Continuation of Bioenergy Program
0
0
0
150
150
116
150
150
150 100
150
100
60
150
60
0
0
0
Total Energy Programs
30
79
30
184
238
155
169
238
189 127
238
139
84
389
97
24
239
0
*Joint program with the Department of Energy.
Note: “Pres. Req.” = Presidential request; “Auth.” = Authorization; “Enact.” = Enacted; “SSAN” = Such sums as necessary. Sec. 9003 and Sec. 9005 have not been implemented.
a. Represents a combination of the amount authorized by the 2002 Farm Bill, less any reductions in annual appropriations acts, plus discretionary funding provided where applicable.
b. The Deficit Reduction Act of 2005 (P.L. 109-171) reduced Sec. 9006 mandatory funding by $20 million in FY2007, leaving $3 million as the authorized level for FY2007.
c. Section 310 (7 U.S.C. 8609) of the Biomass Research and Development Act of 2000 (P.L. 106-224) provides discretionary authorization of $200 million for each of FY2006 through
FY2015.
d. Complete data on appropriations by program is not yet available.

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CRS-7
Table 2. House Farm Bill (H.R. 2419): Proposed Funding for Title IX Energy Provisions, FY2008-FY2012
Title IX
Related H.R. 2419 Section and Provision Name —
Funding
Sum:
Provisions
Proposed Change or Addition to Current Law
Statusa
FY2008
FY2009
FY2010
FY2011
FY2012 FY08-12
———————— $ millions—————— —
Current Law
Sec. 9002
Sec. 9002: Federal Procurement of Biobased Product
Discretionary
2
2
2
2
2
10
Sec. 9003
Sec. 9003: Biorefinery Development Grants & Loan Guarantees
Mandatory
75
100
125
200
300
800
Sec. 9004
Sec. 9017: Biodiesel Fuel Education Program
Mandatory
2
2
2
2
2
10
Sec. 9005
Sec. 9004: Energy Audit and Renewable Energy Program
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Sec. 9006
Sec. 9005: Renewable Energy Systems and Energy Eff. Improvements
Mandatory
50
75
100
125
150
500
Sec. 9007
No Provision
No funding
Sec. 9008
Sec. 9006: Biomass Research and Development Act
Mandatory
35
60
75
100
150
420
Additional funding authorization b
Discretionary
200
200
200
200
200
1,000
Sec. 9009
“Cooperative Research & Extension Projects” amended to the Biomass Research and Development Act
Sec. 9010
Sec. 9007: Continuation of Bioenergy Program
Mandatory
225
250
275
300
350
1,400
Sec. 9011
Sec. 9008: Research, Extension, & Educational Programs on Biobased
Discretionary
75
75
75
75
75
375
Energy Technologies and Products
Proposed
Addition
Sec. 9012
Sec. 9009: Energy Council of USDA
Discretionary
0
0
0
0
0
0
Sec. 9013
Sec. 9010: Farm Energy Production Pilot Program c
Discretionary
1
1
1
1
1
5
Sec. 9014
Sec. 9011: Rural Energy Self-Sufficiency Initiative
Discretionary
5
SSAN
SSAN
SSAN
SSAN
5
Sec. 9015
Sec. 9012: Agr Biofuels from Biomass Internship Pilot Program
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Sec. 9016
Se.c 9013: Feedstock Flexibility Program for bioenergy producers
Mandatory
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Sec. 9014
Sec. 9014: Biomass Inventory Report
Discretionary
0
0
0
0
0
0
Sec. 9015
Sec. 9015: Future Farmsteads Program
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Sec. 9016
Sec. 9016: Sense of Congress on Renewable Energy
No funding
Sec. 9017
Sec. 9018: Biomass Energy Reserve
Mandatory
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Sec. 9018
Sec. 9019: Forest Biomass for Energy
Mandatory
15
15
15
15
15
75

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Title IX
Related H.R. 2419 Section and Provision Name —
Funding
Sum:
Provisions
Proposed Change or Addition to Current Law
Statusa
FY2008
FY2009
FY2010
FY2011
FY2012 FY08-12
Sec. 9019: Community Wood Energy Program
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Sec. 9020: Supplementing Corn as an Ethanol Feedstock d
Discretionary
4
4
4
4
4
20
Total Discretionary Funding
$287
$282
$282
$282
$282
$1,415
Total Mandatory Funding
$402
$502
$592
$742
$967
$3,205
Source: House-passed (July 27, 2007) H.R. 2419. “SSAN” = Such sums as necessary.
a. Budgetary funding availability for FY2008-12 is contingent on cost offsets as detailed in Title XII — Additional Cost Offsets of H.R. 2419.
b. Section 9006 provides discretionary authorization of $200 million for each of FY2006 through FY2015.
c. Section 9010 provides for $5 million for the period FY2008 to FY2012 with no specific annual breakout.
d. Section 9020 authorizes the appropriation of $20 million for the period FY2008 to FY2012 with no specific annual breakout.

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Table 3. Senate Farm Bill (H.R. 2419 with amendments):
Proposed Funding for Title IX Energy Provisions, FY2008-FY2012
Title IX
Sum:
Provisions
Section and Provision Name
Funding Status
FY2008
FY2009
FY2010
FY2011
FY2012
FY08-FY12
———————— $ millions—————— —
Sec. 9002
Biobased Markets Program
Mandatory
3
3
3
3
3
15
Additional funding authorization
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Sec. 9003
Biodiesel Fuel Education
Mandatory
2
2
2
2
2
10
Sec. 9004
Biomass Crop Transition: Production Assistancea
Mandatory
26
26
26
26
26
130
Sec. 9004
Biomass Crop Transition: Post-Production Assistanceb
Mandatory
—
10
10
10
—
30
Sec. 9005
Biorefinery and Repowering Assistancea
Mandatory
60
60
60
60
60
300
Sec. 9006
Bioenergy Programc
Mandatory
49
49
49
49
49
245
Sec. 9007
Rural Energy for America Programa
Mandatory
46
46
46
46
46
230
Additional funding authorization
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Sec. 9008
Biomass Research and Development Act
Mandatory
15
25
35
—
—
75
Additional funding authorization
Discretionary
85
85
85
85
85
425
Sec. 9009
Sun Grant Program
Mandatory
5
10
10
—
—
25
Additional funding authorization
Discretionary
70
70
70
70
70
350
Sec. 9010
Regional Biomass Crop Experiments
Mandatory
10
20
10
—
—
40
Additional funding authorization
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Sec. 9011
New Century Farm Projectc
Discretionary
3
3
3
3
3
15
Sec. 9012
Biochar Research, Development and Demonstration
Discretionary
3
3
3
3
3
15
Sec. 9013
Renewable Woody Biomass for Energy
Discretionary
5
5
5
5
5
25
Sec. 9014
Community Wood Energy Program
Discretionary
5
5
5
5
5
25
Sec. 9015
Rural Energy Systems Renewal
Discretionary
5
5
5
5
5
25
Sec. 9016
Voluntary Renewable Biomass Certification Program
No funding
—
—
—
—
—
0
Sec. 9017
Administration
No funding
—
—
—
—
—
0
Sec. 9018
Biofuels Infrastructure Study
Discretionary
1
1
0
0
0
2

---

CRS-10
Title IX
Sum:
Provisions
Section and Provision Name
Funding Status
FY2008
FY2009
FY2010
FY2011
FY2012
FY08-FY12
———————— $ millions—————— —
Sec. 9019
Rural Nitrogen Fertilizer Study
Discretionary
1
—
—
—
—
1
Sec. 9020
Study of Life Cycle Analysis of Biofuels
No funding
—
—
—
—
—
0
Sec. 9021
E-85 Fuel Programc
Discretionary
4
4
4
4
4
20
Sec. 9022
Research and Development of Renewable Energy
Discretionary
5
5
5
5
5
25
Additional funding authorizationd
Discretionary
110
110
110
110
110
550
Additional funding authorizationd
Discretionary
110
110
110
110
110
550
Sec. 9023
Northeast Dairy Nutrient Management and Energy Development
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Program
Sec. 9024
Report on the Growth Potential for Cellulosic Material
No funding
—
—
—
—
—
0
Sec. 9025
Future Farmsteads Program
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Total Discretionary Funding
Discretionary
$407
$406
$406
$406
$406
$2,028
Total Mandatory Funding
Mandatory
$216
$251
$251
$196
$186
$1,100
Source: H.R. 2419 (Food and Energy Security Act of 2007; engrossed amendment as agreed to by Senate (EAS)) passed by the Senate on Dec. 14, 2007.
“SSAN” = Such sums as necessary.
a. The total funding authorization is fully available in FY2008 and is to remain available until expended; annual designations are made by CRS to facilitate comparisons.
b. Post-production activities include harvesting, collection, transport, and storage of renewable biomass.
c. Authorized appropriations are for the entire period FY2008 to FY2012 with no specific annual breakout; annual designations are made by CRS to facilitate comparisons.
d. Section 9022 includes additional discretionary funding authorizations of $110 million for each of FY2008 to FY2012 for the Under Secretary for Research, Education, and Economics
acting through the Agricultural Research Service of USDA; and of $110 million for each of FY2008 to FY2012 for the Secretary of USDA and the Secretary of DOE for development
of smaller-scale biorefineries and biofuel plants.

---

CRS-11
Table 4. Comparison of Current Law with the House-Passed 2007 Farm Bill (H.R. 2419; July 27, 2007) and the
Senate-Passed 2007 Farm Bill (H.R. 2419 with amendments; December 14, 2007)
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
TITLE IX: Energy
Definitions
Sec. 9001. Defines Administrator, Biomass,
Sec. 9001. No changes to definitions.
Sec. 9001. Adds several definitions including
Biobased Product, Biomass, Procuring Agency,
“Advanced Biofuels,” which excludes any fuel
Renewable Energy, Rural Small Business, and
derived from corn-starch, but includes ethanol
Secretary.
derived from other plant starches (e.g., sorghum),
sugar, as well as cellulosic biomass or organic
waste; it also includes organically-derived biogas,
butanol or other alcohols; and, notably, biodiesel.
Other noteworthy definitions include:
Biobased Product; Biomass Conversion Facility,
Biorefinery, Intermediate Ingredient or Feedstock;
Renewable Biomass, and Renewable Energy.
Biodiesel Fuel Education Program
Section 9004. The program, administered by
Section 9017. Extends the Biodiesel Fuel
Section 9003. Same as H.R. 2419.
USDA’s Cooperative State Research, Education,
Education Program through FY2012 with
and Extension Service, awards competitive grants
mandatory funding of $2 million for each of
to nonprofit organizations that educate
FY2008 through FY2012.
governmental and private entities operating
vehicle fleets, and educates the public about the
benefits of biodiesel fuel use. Mandatory CCC
funding of $1 million was authorized for each of
FY2003 through FY2007.

---

CRS-12
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Federal Procurement of Biobased Products
Sec. 9002. Statutes currently require federal
Section 9002. Continues federal commitment to
Section 9002: Continues the Federal Biobased
agencies to purchase biobased products under
biobased product preference in its purchases.
Products Procurement Program, clarifying that
certain conditions and authorize a voluntary
Requires annual reports from agencies to
biobased intermediate ingredients and feedstocks
biobased labeling program. USDA regulations
Administrator of Federal Procurement Policy. Also
qualify under the program. It also requires the
define biobased products, identify biobased
requires annual reports from USDA to Congress on
Secretary to establish a voluntary labeling
product categories, and specify the criteria for
implementation status. Clarifies that products with
program for biobased products — “USDA
qualifying those products for preferred
at least 5% of intermediate ingredients and
Certified Biobased Product.” Additionally, this
procurement. Mandatory CCC funding of $1
feedstock that are biobased should be considered
section provides grants for education and
million is authorized for each of FY2002 through
under the preference. Requires USDA to complete
awareness of bioenergy and biobased products.
FY2007 for testing biobased products.
rulemaking on labeling regulation. Increases
This section provides $3 million per year in
mandatory CCC funding to $2 million for each of
mandatory funding for FY2008 through FY2012.
FY2008 through FY2012 for bio-product testing,
labeling, and procurement research, promotion, and
awareness initiatives.
Energy Audit and Renewable Energy Development Program
Section 9005. A competitive grant program for
Section 9004. Extends the Energy Audit and
Section 9007. Extends the Energy Audit and
eligible entities to provide energy audits and
Renewable Energy Development Program through
Renewable Energy Development Program through
technical assistance to agricultural producers and
FY2012.
FY2012, but folds it into the new Rural Energy for
rural small businesses to assist them in becoming
America Program where mandatory funding is
more energy efficient and in using renewable
available (see the Renewable Energy Systems
energy technology and resources. Authorized
section for more information).
appropriations of such sums as are necessary to
carry out the program for each of FY2002 through
FY2007.

---

CRS-13
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Biorefinery Development Grants
Section 9003. Established a grant program to help
Section 9003. Renamed as the Biorefinery
Section 9005: Renamed the Biorefinery and
finance the cost of developing and constructing
Development Program and extended through
Repowering Assistance Program, it refocuses
biorefineries and biofuel production plants to carry
FY2012. It replaces grants with new loan
emphasis on “advanced biofuel” production in
out projects to demonstrate the commercial
guarantee authority for biorefineries — one-half for
renewable-fuel-powered biorefineries. Provides
viability of converting biomass to fuels or
loans less than $100 million, and the other half for
competitive grants for up to 50% of project costs
chemicals. No mandatory funding was authorized
loans up to $250 million. The loan guarantee
for pilot- and demonstration-scale biorefineries;
and no discretionary funding has been
would cover 90% of an eligible loan. Requires that
matching funds for feasibility studies; competitive
appropriated for the program. Therefore, no
construction contractors and subcontractors on
grants for up to 20% of total project costs for the
implementation regulations have been developed.
federally assisted loan guarantee projects pay their
repowering of fossil-fueled biomass conversion
employees not less than the prevailing wage in the
facilities with renewable resources; and provides
same locality under the Davis-Bacon Act.
loan guarantees for up to 80% of total eligible
Authorizes mandatory CCC funding of $75 million
project costs for the development and construction
in FY2008; $100 million in FY2009; $125 million
of commercial-scale biorefineries and the
in FY2010; $200 million in FY2011; and $300
repowering of biomass conversion facilities with
million in FY2012 for a total in new mandatory
renewable energy.
funding of $800 million during FY2008-FY2012.
Any loan guaranteed for commercial scale
biorefineries cannot exceed $250 million and a
loan guaranteed for repowering cannot exceed $70
million. The section includes a preference for
local ownership of these facilities.
Provides $300 million in mandatory funding
during FY2008-FY2012.

---

CRS-14
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Renewable Energy Systems
Section 9006. The Renewable Energy Systems
Section 9005. Renamed as the “Rural Energy for
Section 9007. Renamed as the Rural Energy for
and Energy Efficiency Program, administered by
America Program.” Raises the loan guarantee level
America Program, this section adds the option to
USDA’s Rural Development Agency, authorizes
from $10 million to $25 million. Grant fund cost
receive a production incentive payment in lieu of a
loans, loan guarantees, and grants to farmers,
share is retained at up to 25% of project costs;
grant, and stipulates that a grant may cover up to
ranchers, and rural small businesses to purchase
however, combined grants and loans (including
25% of project costs while a loan guarantee may
and install renewable energy systems and to make
guarantees) is expanded to 75% of project cost.
cover up to 75% of the cost.
energy efficiency improvements. Grant funds may
Allows for feasibility studies to be eligible for the
It creates a separate allocation of funding for
be used to pay up to 25% of project costs;
program. Increases mandatory CCC funding to $50
grants and loan guarantees to build and evaluate
combined grants and loans or loan guarantees may
million in FY2008; $75 million in FY2009; $100
on-farm and community animal manure-to-energy
fund up to 50% of project cost. Eligible projects
million in FY2010; $125 million in FY2011; and
facilities such as methane digesters.
include those that derive energy from wind, solar,
$150 million in FY2012 for a total in new
It also establishes a streamlined review and
biomass, or geothermal sources. Projects using
mandatory funding of $500 million during FY2008-
application process for small-scale projects (under
energy from those sources to produce hydrogen
FY2012.
$20,000), and requires that 20% of funds be used
from biomass or water are also eligible.
for such projects.
Mandatory CCC funding of $23 million was made
The Energy Star Program is extended in this
available for each of FY2003 through FY2007.
section to identify and promote energy-efficient
Unspent money lapses at the end of each year.
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.

---

CRS-15
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Biomass Research and Development Act
Section 9008. The program — created originally
Section 9006. Extends the program through
Section 9008. Extends the program and moves it
under the Biomass Research and Development Act
FY2012.
in statute to this act. Adds new emphasis on
(BRDA) of 2000 — provides competitive funding
Authorizes mandatory CCC funding of $35
utilization of byproducts such as dried distillers
for research, development, and demonstration
million in FY2008; $60 million in FY2009; $75
grains and solubles (DDGS) and development of
projects on biofuels and bio-based chemicals and
million in FY2010; $100 million in FY2011; and
technologies for harvest, storage, preprocessing
products, administered jointly by USDA and DOE.
$150 million in FY2012 for a total in new
and transportation of renewable biomass
Specified mandatory CCC funding of $5 million in
mandatory funding of $420 million during FY2008-
feedstocks.
FY2002 and $14 million for each of FY2003
FY2012.
Provides mandatory funding to remain
through FY2007 (available until expended).
Includes the appropriations authority for $200
available until expended of $15 million in
Additional appropriation authority of $200 million
million in each of FY2008 through FY2015.
FY2008, $25 million in FY2009, and $35 million
for each of FY2006 through FY2015.
in FY2010 for a total in new mandatory funding of
$75 million during FY2008-FY2012.
Also includes the appropriations authority for
$85 million in each of FY2008 through FY2012.
Bioenergy Program
Section 9010. Originally created by a 1999
Section 9007. Renews and extends the bioenergy
Section 9006. Renews and extends the Bioenergy
Executive Order during the Clinton
program through FY2012. Ethanol produced from
Program through FY2012. Bases the payment rate
Administration, the bioenergy program provides
corn starch is excluded. Expands eligibility for the
on: (1) advanced biofuel production, (2) feedstock
CCC incentive payments to biofuels producers
production incentive to combined heat and power
prices, and (3) net non-renewable energy content
based on year-to-year increases in the quantity of
production using biomass at biofuels plants and
of the biofuel. This will benefit those purchasing
biofuel produced. Mandatory CCC funding of
biomass gasification.
feedstocks for cellulosic biofuels and biodiesel.
$150 million was made available for each of
Provides mandatory CCC funding of $225
The program is not available to those claiming
FY2002 through FY2006. No funding was
million in FY2008; $250 million in FY2009; $275
a biofuel production tax credit (see Sec. 12312) or
authorized for FY2007.
million in FY2010; $300 million in FY2011; and
with biofuel production capacity greater than 150
$350 million in FY2012 for a total of $1.4 billion
million gallons per year.
during FY2008-FY2012.
Provides $245 million in mandatory funding for
FY2008 through FY2012.

---

CRS-16
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Research, Extension, and Educational Programs on Biobased Energy Technologies and Products
Section 9011. This provision was added
Section 9008. Extends the sun grant programs
Section 9009. Reauthorizes the Sun Grant
subsequent to the 2002 farm bill under the “Sun
through FY2012 with authorized appropriations of
Program through FY2012 and establishes a 6th
Grant Research Initiative Act of 2003.”
$75 million for each of FY2008 through FY2012
regional center — Western Insular Pacific
Establishes 5 national sun grant research centers
for a total in discretionary funding of $375 million
Sub-Center — at the University of Hawaii.
based at land-grant universities and each covering
during FY2008-FY2012. .
Competitive grants are available to land-grant
a different national region. The purpose is to
schools within each region.
enhance coordination and collaboration between
Provides, for the first time, mandatory funding
USDA, DOE, and land-grant universities in the
for the Sun Grant program of $5 million in
development, distribution, and implementation of
FY2008, $10 million in each of FY2009 and
biobased energy technologies.
FY2010 (available until expended) for a total of
Authorized appropriations of $25 million in
$25 million for FY2008 through FY2012.
FY2005, $50 million in FY2006, and $75 million
Also includes the appropriations authority for
for each of FY2006 through FY2010 for a total in
$70 million in each of FY2008 through FY2015.
discretionary funding of $150 million during
FY2005-FY2010.
Administration / Energy Council of USDA
No provision.
Section 9009 (would be appended as Section 9012).
Section 9017. Expands and codifies the scope of
Directs the Secretary to establish an energy council
responsibilities of the USDA related to the
to coordinate the energy policy of USDA and
coordination of energy programs and specifies that
consult with other federal departments and
USDA should have one entity serving as central
agencies. No new funding.
coordinator for these programs. Responsibilities of
the coordinating entity include provision of
oversight and coordination of energy-related
activities within USDA, as well as coordination of
related activities with other Federal, State, and
local agencies. This entity also will establish and
maintain a public database to facilitate information
sharing, and coordinate and disperse information
on agricultural sector energy research and Federal
agricultural energy programs. No new funding.

---

CRS-17
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Farm Energy Production Pilot Program
No provision.
Section 9010 (would be appended as Section 9013).
No provision.
Establishes a pilot program to provide grants to
farmers to demonstrate the feasibility of making a
farm become energy neutral using existing
technologies.
Authorizes appropriations of $5 million for
FY2008 through FY2012.
Regional Biomass Crop Experiments
No provision.
No provision.
Section 9010. Provides for 10 competitive grants
to 10 geographically dispersed land-grant colleges
and universities to establish regional bioenergy
crop research experiments. The universities are
required to commit adequate crop land for these
on-going crop experiments. Crop experiments are
to include all appropriate biomass species,
including perennials, annuals, and woody biomass
species. Calls for coordination among participants,
with the Biomass Research and Development
Board and with the Sun Grant Centers, and the
establishment of a “best practices” database on all
aspects of bioenergy crop production.
Provides mandatory funding of $10 million for
FY2008; $20 million for FY2009; and $10 million
for FY2010.
New Century Farm Project
No provision.
No provision.
Section 9011. Establishes the New Century Farm
Project to serve as a model farm.
Authorizes appropriations of $15 million for
FY2008 through FY2012, to remain available until
expended.

---

CRS-18
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Rural Energy Initiatives
No provision.
Section 9011 (would be appended as Section 9014).
Section 9015. Establishes a program — the Rural
Establishes the Rural Energy Self-Sufficiency
Energy Systems Renewal Program — of
Initiative to provides cost-share grants to enable
competitive cost-shared grants (50% maximum
eligible rural communities (of less than 25,000) to
federal share) for rural communities to assess their
substantially increase their energy self-sufficiency.
energy systems and formulate strategies for
The grant may not exceed 75% of costs. Requires a
improvements.
report to Congress on best practices/approaches.
Authorizes discretionary funding of $5 million
Total grants under this section are limited to no
for each of FY2008 through FY2012.
more than 5 per year, and authorizes appropriations
of not more than $5 million for FY2008, and such
sums as are necessary for FY2009 through FY2012.
Agricultural Biofuels from Biomass Internship Program
No provision.
Section 9012 (would be appended as Section 9015).
No provision.
Provides 3rd and 4th year undergraduate or
graduate students from universities in states with
substantial farm-based economies with opportunity
to work with U.S. government and nongovern-
mental organizations on matters pertaining to
renewable energy policies. Requires state matching
funds of $1 for every $2 of federal. Authorizes
appropriations of such sums as are necessary to
carry out the program.

---

CRS-19
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Feedstock Flexibility Program for Bioenergy Producers
No provision.
Section 9013 (would be appended as Section 9016).
See Title I, Section 1501, Sugar Program, for a
Requires that USDA establish (in FY2008) and
similar sugar-for-ethanol provision entitled the
administer a sugar-for-ethanol program using sugar
“Feedstock Flexibility Program for Bio-Energy
intended for food use but deemed to be in surplus.
Producers”.
USDA would implement the program only in those
years where purchases are determined to be
necessary to ensure that the sugar program operates
at no cost. The use of such sums as necessary to
carry out the program is authorized.
Biomass Inventory Report
No provision.
Section 9014. Instructs USDA to conduct a
No provision.
national inventory of biomass resources on a
county-by-county basis and submit this information
as a report to Congress within one year of
enactment.
Future Farmsteads Program
No provision.
Section 9015. Establishes a program to equip a
Section 9025. Same as H.R. 2419.
farm entity (house and lands), in 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 appropriations of such
sums as are necessary to carry out the program.

---

CRS-20
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Sense of Congress on Renewable Energy
No provision.
Section 9016. Declaration of Congress’ recognition
Section 9002. Sense of Congress concerning
of the importance of renewable energy in meeting a
higher levels ethanol blended gasoline (i.e.,
growing national energy demand, diversifying the
intermediate blends such as E13, E15, E20 and
U.S. energy portfolio, and increasing U.S. energy
higher). Encourages Secretary of Agr. to
independence; while allowing market forces to
collaborate with DOE, DOT, and EPA in study of
remain an important instrument in determining
economic and environmental effects of
renewable energy sources and technology.
intermediate blends of ethanol in U.S. fuel supply.
New Program to Facilitate Biomass Feedstock Production
No provision.
Section 9018. Establishes a new Biomass Energy
Section 9004. Creates the Biomass Crop
Reserve (BER).
Transition program to stimulate production of
Provides financial and technical assistance
annual and perennial biomass crops.
(including five-year contracts) to landowners and
USDA provides technical and financial
operators to grow dedicated energy crops as
assistance with establishment costs for the
feedstock for cellulosic ethanol and other energy
production of bioenergy crops for use in a biomass
production. Incentives also cover producer
conversion facility. Provides $130 million in
harvesting, storing, and transporting of biomass to
mandatory funding for FY2008 through FY2012
bioenergy facilities.
to support biomass production.
BER projects would have to be within a 50-mile
Also provides $10 million in mandatory
radius of a bioenergy facility. Authorizes
funding for each of FY2009 through FY2011 (to
mandatory funding of such sums as are necessary.
remain available until expended) for a fixed
assistance payment to agricultural producers for
production, collection, harvest, storage and
transportation of biomass crops for use in a
biomass conversion facility.
Requires the Secretary to provide public
information on the production potential,
environmental impacts, and best practices for
production, harvesting, transport and storage of
biomass crops and requires participants to provide
information as needed for that purpose.

---

CRS-21
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Forest Biomass for Energy
No provision. (Would be appended as Section
Section 9019. New competitive research and
Section 9013. Same program as H.R. 2419, but
9018.)
development program to encourage the use of
with discretionary (not mandatory) funding of $5
woody biomass for bioenergy production.
million for each of FY2008 through FY2012.
Provides mandatory CCC funding of $15 million
for each of FY2008 through FY2012.
Community Wood Energy Program
No provision.
Section 9019. New program to provide matching
Section 9014. Same program as H.R. 2419, but
grants to State and local governments to acquire
with discretionary funding of $5 million for each
community wood energy systems for public
of FY2008 through FY2012.
buildings and to implement a community wood
energy plan. Authorizes discretionary funding of
such sums as are necessary.
Supplementing Corn as an Ethanol Feedstock
No provision.
Section 9020. New grant program for
No provision.
demonstration of supplementing corn as 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 CCC funding
of $20 million.
Biochar Research, Development and Demonstration
No provision.
No provision.
Section 9012. Creates a program of competitive
grants for research and demonstration of the
production and use of biochar in the agricultural
sector. Provides discretionary funding of
$3 million for each of FY2008 through FY2012.

---

CRS-22
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Voluntary Renewable Biomass Certification Program
No provision.
No provision.
Section 9016. Establishes a voluntary certification
program for renewable biomass that is grown
using sustainable practices. No new funding.
Biofuels Infrastructure Study
No provision.
No provision.
Section 9018. Directs USDA, in collaboration
with the Secretaries of Energy and Transportation
and the EPA Administrator, to conduct a study of
the infrastructure needs associated with a
significant expansion in biofuel production and
use. Specifically includes dedicated ethanol
pipeline feasibility studies and examination of
water resource needs. Requires a report to
Congress on the results of the studies.
Authorizes discretionary funding of $1 million
for each of FY2008 and FY2009.
Rural Nitrogen Fertilizer Study
No provision.
No provision.
Section 9019. Directs USDA to assess the
feasibility of producing nitrogen fertilizer from
renewable energy (and submit a report to Congress
within 270 days). Provides discretionary funding
of $1 million for FY2008.

---

CRS-23
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Study of Life Cycle Analysis of Biofuels
No provision.
No provision.
Section 9020. This provision directs USDA in
consultation with DOE and EPA to conduct a
study of methods for evaluating the life-cycle
greenhouse gas emissions of conventional fuels
and biofuels, and to provide (in form of report to
Congress within one year) results and recommend-
ations for a streamlined, simplified method for
evaluating the lifecycle greenhouse gas emissions
of fuels. No new funding.
E-85 Fuel Program
No provision.
No provision.
Section 9021. Provides cost-share grants of up to
20% of total costs for installation of E-85 fuel
infrastructure.
Authorizes appropriations (i.e., discretionary
funding) of $20 million for FY2008 through
FY2012 to remain available until expended.

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CRS-24
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Research and Development of Renewable Energy
No provision.
No provision.
Section 9022. USDA will conduct research, with
the Colorado Renewable Energy Collaboratory,
relating to various aspects of renewable energy
including biomass crops adapted to arid and semi-
arid regions, and storage and conversion
technologies for wind and solar energy.
Authorizes discretionary funding of $5 million for
each of FY2008 through FY2012. Additional
discretionary funding of $110 million to USDA
Under Secretary for Research, Education, and
Economics for cellulosic biofuel research for each
of FY2008 through FY2012; and additional
discretionary funding of $110 million to
USDA/DOE for development of small-scale
biorefineries for each of FY2008 through FY2012.
Northeast Dairy Nutrient Management and Energy Development Program
No provision.
No provision.
Section 9023. Establishes USDA program to
provide grants to a consortium of Northeast U.S.
land-grant colleges and universities to conduct
research, extension, and demonstration projects for
dairy nutrient management and energy
development . Authorizes discretionary funding
of such sums as are necessary.
Report on the Growth Potential for Cellulosic Material
No provision.
No provision.
Sec. 9024. Sec. of Agriculture shall submit a
report (within 18 months) detailing state-by-state
analysis of the potential for cellulosic feedstock
production.

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CRS-25
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
Title XII: Trade and Tax Provisions; Subtitle C — Energy Provisions16
PART I — Electricity Generation: Credit for Residential and Business Wind Property
No provision.
No provision.
Sec. 12301. Expands an existing 30% tax credit
(Internal Revenue Code of 1986 (IRC86), Sections
25D and 48) available for solar and fuel cell
energy to qualified residential and business wind
energy property expenses made after Dec. 31,
2007 and in service prior to Jan. 1, 2009.
PART I — Electricity Generation: Landowner Incentive to Encourage Electric Transmission Build-Out
No provision.
No provision.
Sec. 12302. Provides an exclusion from gross
income for any qualified electric transmission
easement payments.
PART I — Electricity Generation: Exception to the Reduction of Renewable Electricity Credit
No provision.
No provision.
Sec. 12303. Provides an exception to reductions in
tax credits (per IRC86, section 45) for loans, loan
guarantees, or grants to farmers, ranchers, or rural
small business by USDA.
PART II — Alcohol Fuel: Expansion of Special Allowance to Cellulosic Biomass Alcohol Fuel Plant Property
No provision.
No provision.
Sec. 12311. Extends special depreciation (ICR86,
section 168(1)) allowance to cellulosic ethanol
plants.
16 For more information on the Senate’s Title XII, see Description of the Chairman’s Mark of the “Heartland, Habitat, Harvest, and
Horticulture Act of 2007”, Joint Committee on Taxation, JCX-94-07, October 2, 2007.

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CRS-26
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
PART II — Alcohol Fuel: Credit for Production of Cellulosic Biomass Alcohol
Under current law (26 U.S.C. 40; American Jobs
No change from current law.
Sec. 12312. Provides for a total income tax credit
Creation Act (AJCA) of 2004, P.L. 108-357),
of $1.25 per gallon of cellulosic ethanol produced
cellulosic ethanol would receive the current tax
(inclusive the standard ethanol PTC of $0.51/gal.
credit of $0.51 per gallon available to any ethanol
and the small producer credit of $0.10/gal.). The
production as provided through Dec. 31, 2010.
15 million gallon limitation on the $0.10 credit is
waived for small cellulosic ethanol producers.
Applicable only for domestically produced
cellulosic ethanol. The producer credit is
extended through April 1, 2015.
PART II — Alcohol Fuel: Extension of Small Ethanol Producer Credit
Under current law (26 U.S.C. 40; Energy Policy
No change from current law.
Sec. 12313. Extends the small producer tax credit
Act of 2005, P.L. 109-58) producers with annual
through Dec. 31, 2012.
capacity of not more than 60 million gallons are
eligible for an additional tax credit of $0.10 per
gallon on the first 15 million gallons of ethanol
production through Dec. 31, 2010.
PART II — Alcohol Fuel: Credit for Producers of Fossil Free Alcohol
No provision.
No provision.
Sec. 12314. Proposes a new tax credit of $0.10
per gallon for small ethanol production facilities
(of not more than 60 million gallons) that do not
use a fossil-based resource for power; to be
available through Dec. 31, 2012.
PART II — Alcohol Fuel: Modification of Alcohol Credit
Currently any ethanol production is eligible for a
No provision.
Sec. 12315. Proposes reducing the ethanol tax
tax credit of $0.51 per gallon as provided under
credit of $0.51 per gallon to $0.46 per gallon
current law (26 U.S.C. 40; AJCA of 2004, P.L.
beginning in the first calendar year after the year
108-357) through Dec. 31, 2010.
in which 7.5 billion gallons of ethanol is produced.

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CRS-27
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
PART II — Alcohol Fuel: Calculation of Volume of Alcohol for Fuel Credits
Under current law (26 U.S.C. 40; AJCA of 2004,
No provision.
Sec. 12316. Reduces the permissible volume of
P.L. 108-357) the volume of bio-alcohol counted
denaturant to 2% for purposes of calculating the
as fuel eligible for the tax credit may include up to
volume of alcohol eligible for the tax credit.
5% of the volume as denaturant.
PART II — Alcohol Fuel: Ethanol Tariff Extension
Under current law (Heading 9901.00.50 of the
No provision.
Sec. 12317. Extends the tariff period for imported
Harmonized Tariff Schedule (HTS)) imports of
ethanol or mixtures of ethanol (headings
ethyl alcohol are subject to a duty of 14.27¢ per
9901.00.50 and 9901.00.52 of the HTS) through
liter ($0.54 per gallon) and a duty of 5.99¢ per
Dec. 31, 2010.
liter (Heading 9901.00.52; HTS) on imports of
ethyl tertiary-butyl ether through Dec. 31, 2008.
PART II — Alcohol Fuel: Limitations on, and Reductions of, Duty Drawback on Certain Imported Ethanol
Under current law (Section 1313 of the Tariff Act
No provision.
Sec. 12318. Eliminates the ability to obtain a
of 1930, as amended) permits the refund of duty if
refund of the duty imposed under HTS 9901.00.50
the duty-paid good is re-exported or used to make
on imported ethanol by substitution of either
a good that is exported. In particular, a person
ethanol not subject to the duty, or of another
who manufactures gasoline with ethanol subject to
petroleum product, that is exported to obtain the
the duty imposed under either HTS 9901.00.50,
drawback.
can export jet fuel (which does not involve
ethanol) and obtain a refund of the duty paid.
PART III — Biodiesel & Renewable Diesel Fuel: Extension and Modification of Credit for Biodiesel and Renewable Diesel Used as Fuel
Under current law (26 U.S.C. 40A) tax credits
No provision.
Sec. 12321. Extends the tax credits available for
available for biodiesel and renewable diesel used
biodiesel and renewable diesel used as fuel
as fuel, as well as the small biodiesel producers
through Dec. 31, 2010; extends the small biodiesel
tax credit, expire on Dec. 31, 2008.
producers tax credit through Dec. 31, 2012.

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CRS-28
2002 Farm Bill (P.L. 107-171)
House-Passed (July 27, 2007) Farm Bill
Senate-Passed (Dec. 14, 2007) Farm Bill
or Current Law (as indicated)
(H.R. 2419)
(H.R. 2419 EAS)
PART III — Biodiesel & Renewable Diesel Fuel: Treatment of Qualified Alcohol Fuel Mixtures & Qualified Biodiesel Fuel Mixtures as Taxable Fuels
No provision.
No provision.
Sec. 12322. Adds qualified alcohol fuel mixtures
and qualified biodiesel fuel mixtures to the
definition of taxable fuel and requires all
producers of qualified mixtures to meet
certification requirements and provide
documentation of required fuel tests.
PART IV — Alternative Fuel: Extension and Modification of Alternative Fuel Credit
The Internal Revenue Code (IRC) of 1986,
No provision.
Sec. 12331. Includes compressed or liquified
Sections 6526 and 6427, provides a $0.50 per
biomass gas as an alternative fuel and extends the
gallon excise tax credit through Sept. 30, 2009, for
alternative fuel excise tax credit through Dec. 31,
most alternative fuels; and through Sept. 30, 2014
2010, for all fuels other than hydrogen. Liquefied
for liquefied hydrogen.
fuel from coal (CTL) produced under the Fischer-
Tropsch process must sequester at least 50%
(increasing to 75% by Dec. 31, 2010) of CO2
emissions to qualify for the credit.
PART IV — Alternative Fuel: Extension of Alternative Fuel Vehicle Refueling Property Credit
The IRC of 1986, Section 30A, provides a 30%
No provision.
Sec. 12332. Extends the 30% alternative refueling
credit for qualified clean-fuel vehicle refueling
property credit (capped at $30,000) for non-
installation costs through Dec. 31, 2009.
hydrogen property through Dec. 31, 2010.
PART V — Agricultural Provisions: Credit for Energy Efficient Motors
No provision.
No provision.
Sec. 12409. Provides a tax credit for the purchase
of qualified energy efficient motors that meet or
exceed certain energy efficiency standards, subject
to limitations.

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