Order Code RL34130
Renewable Energy Policy in the 2008 Farm Bill
Updated September 17, 2008
Tom Capehart
Specialist in Agricultural Policy
Resources, Science, and Industry Division

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Renewable Energy Policy in the 2008 Farm Bill
Summary
The Food, Conservation, and Energy Act of 2008 (P.L. 110-246, the 2008 farm
bill) extends and expands many of the renewable energy programs originally
authorized in the 2002 farm bill. The bill also continues the emphasis on the research
and development of advanced and cellulosic bioenergy authorized in the 2007 Energy
Independence and Security Act (P.L. 110-140).
Farm bill debate over U.S. biomass-based renewable energy production policy
focused mainly on the continuation of subsidies for ethanol blenders, continuation
of the import tariff for ethanol, and the impact of corn-based ethanol on agriculture.
The enacted bill requires reports on the economic impacts of ethanol production,
reflecting concerns that the increasing share of corn production being used for
ethanol is contributing to high commodity prices and food price inflation.
Title VII, the research title of the 2008 farm bill, contains numerous renewable
energy related provisions that promote research, development, and demonstration of
biomass-based renewable energy and biofuels. The Sun Grant Initiative coordinates
and funds research at land grant institutions on biobased energy technologies. The
Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension
Initiative provides support for on-farm biomass energy crop production research and
demonstration.
Title IX, the energy title of the farm bill, authorizes mandatory funds of $1.1
billion and discretionary funds (subject to appropriations) totaling $1.0 billion for the
FY2008-FY2012 period. Energy grants and loans provided through initiatives such
as the Bioenergy Program for Advanced Biofuels promote the development of
cellulosic biorefinery capacity. The Repowering Assistance Program supports
increasing efficiencies in existing refineries. Programs such as the Rural Energy for
America Program (REAP) assist rural communities and businesses in becoming more
energy-efficient and self-sufficient, with an emphasis on small operations. The
Biomass Crop Assistance and Development Program, the Biorefinery Assistance
Program, and the Forest Biomass for Energy Program provide support to develop
alternative feedstock resources and the infrastructure to support the production,
harvest, storage, and processing of cellulosic biomass feedstocks. Cellulosic
feedstocks — for example, switchgrass and woody biomass — are given high priority
both in research and funding.
Title XV of the 2008 farm bill contains tax and trade provisions. It continues
current biofuels tax incentives, reducing those for corn-based ethanol but expanding
tax credits for cellulosic ethanol. The tariff on ethanol imports is extended.

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Contents
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Major Energy Provisions in the 2008 Farm Bill . . . . . . . . . . . . . . . . . . . . . . 3
Energy Policy Issues in the 2008 Farm Bill . . . . . . . . . . . . . . . . . . . . . . . . . 4
Cellulosic Ethanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Economic Impacts of Ethanol Production . . . . . . . . . . . . . . . . . . . . . . . 5
Funding for Energy Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
List of Tables
Table 1. 2008 Farm Bill (P.L. 110-246): Authorized Funding for
Energy Provisions, FY2008-FY2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 2. 2002 Farm Bill Title IX Energy Funding (Presidential Request,
Authorization, and Enactment), by Provision, FY2002 to FY2007 . . . . . . . . 8
Table A-1. Comparison of the Enacted 2008 Farm Bill (P.L. 110-246) with
Previous Law and the House- and Senate-Passed 2008 Farm Bill
(H.R. 2419) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

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Renewable Energy Policy
in the 2008 Farm Bill
Background
Renewable energy policy in the 2008 farm bill builds on earlier programs first
established in the 2002 farm bill. The Farm Security and Rural Investment Act of
2002 (P.L. 107-171, FSRIA) was the first omnibus farm bill to explicitly include an
energy title (Title IX). The energy title authorized 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.1 For example, the U.S.
Department of Agriculture’s (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. See Table 2 for a list of provisions in the
2002 farm bill’s energy title and their funding levels.
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 petroleum
prices and a dramatic acceleration in domestic biofuels production (primarily corn-
based 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, loans and grants, and
regulatory programs.3
The 2008 farm bill became law six months after the enactment of the Energy
Independence and Security Act of 2007 (EISA, P.L. 110-140), and many of its
provisions also build on the goals of EISA.4 The emphasis on facilitating production
of biofuels derived from cellulosic feedstocks reflects the goals of the renewable
fuels standard (RFS) in EISA. It includes a significant expansion of the RFS 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
1 For more information, see CRS Report RL32712, Agriculture-Based Renewable Energy
by Randy Schnepf. For details of previous 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 RL34294, Energy Independence and Security Act
of 2007: A Summary of Major Provisions, coordinated by Fred Sissine.

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ethanol (15 billion gallons by 2015). This RFS expansion is likely to have a
significant impact on the U.S. agriculture sector.5
The emphasis on cellulosic ethanol also reflects increasing concerns about the
economic and environmental issues associated with corn-starch-based ethanol.
Record high commodity prices in 2007 and 2008 combined with high energy costs
have resulted in sharp increases in livestock feed costs, export prices, and domestic
food price inflation. For the first time, an agricultural commodity is directly
competing with petroleum in the marketplace. Ethanol production, the profitability
of which depends directly on both petroleum and corn prices, accounts for about a
third of U.S. corn production. The increase in corn used for U.S. ethanol production
exceeds the increase in corn produced during the past three years. Today, as
petroleum prices rise so has demand for ethanol as a substitute, which in turn
increases both the demand for and price of corn. The “food versus fuel” debate
intensified during the farm bill debate as food price inflation accelerated both in the
U.S. and globally — highlighting some of the potential problems associated with
replacing even a small share of the nation’s gasoline consumption with corn-based
ethanol. Competition for limited corn supplies between livestock producers, ethanol
refiners, exporters, and other domestic users have resulted in calls for at least a partial
waiver of the RFS in 2009.6
Cellulosic ethanol is produced from cellulose, hemicellulose, or lignin which
is derived from the structural material that provides much of the mass of plants.
Cellulosic ethanol is produced from non-food crops and trees that can be grown on
marginal land with low inputs, and appears to offer environmental benefits over
corn-based ethanol.7 Common sources are grasses, corn stover, and wood chips.
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.8
For example, the RFS mandates the inclusion of an increasing volume of biofuels in
the national fuel supply. This originated with the Energy Policy Act of 2005 (P.L.
109-58) and was more recently expanded in EISA. Similarly, the federal tax credits
available to biofuels blenders and wind energy producers were initially contained in
5 For more information, see CRS Report RL34265, Seclected Issues Related to an Expansion
of the Renewable Fuel Standard (RFS), by Brent Yacobucci and Tom Capehart.
6 In April 2008, Texas Gov. Rick Perry wrote the Environmental Protection Agency seeking
a waiver from the federal ethanol mandate, noting its contribution to higher food prices and
dire impact on the cattle industry. Also, see CRS Report RS22870, Waiver Authority Under
the Renewable Fuel Standard (RFS), by Brent D. Yacobucci.
7 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.
8 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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the American Jobs Creation Act of 2004 (P.L. 108-357) but have now been moved
to the farm bill.
Major Energy Provisions in the 2008 Farm Bill
The Food, Conservation, and Energy Act of 2008 (P.L. 110-246, H.R. 6124),
enacted in June 2008,9 significantly expands existing programs to promote biofuels.
Like the previous farm bill, it contains a distinct energy title (Title IX) that covers a
wide range of energy and agricultural topics with extensive attention to biofuels,
including corn-starch based ethanol, cellulosic ethanol, and biodiesel. Research
provisions relating to renewable energy are found in Title VII and tax and trade
provisions are found in Title XV.
The final 2008 farm bill keeps the structure of Title IX as it was in the Senate-
passed version of the farm bill. Title IX serves as a substitute amendment to the
2002 farm bill Title IX and consists of 3 sections. The first section, 9001, contains
13 new provisions which effectively replace the provisions of the 2002 bill. (See
Table A-1 for a side-by-side comparison of previous law with the energy titles from
the enacted farm bill and the House- and Senate-passed versions of the 2008 farm
bill.)
Key biofuels-related provisions in the enacted 2008 farm bill include:
!
emphasis on cellulosic ethanol production through new blender’s
tax credits, promotion of cellulosic feedstocks production,
feedstocks infrastructure and refinery development;
!
grants and loan guarantees for biofuels (especially cellulosic)
research, development, deployment, and production;
!
studies of the market and environmental impacts of increased
biofuel use;
!
expansion of biofuel feedstock availability;
!
expansion of the existing biobased marketing program to
encourage federal procurement of biobased products;
!
support for rural energy efficiency and self-sufficiency;
!
reauthorization of biofuels research programs within the U.S.
Department of Agriculture and Environmental Protection
Agency;
!
an education program to promote the use and understanding of
biodiesel;
!
reduction of the blenders’ tax credit for corn-based ethanol;
9 The conference agreement on the 2008 farm bill was originally approved by the House and
the Senate as H.R. 2419 and vetoed by the President in May 2008. Both chambers overrode
the veto, making the bill law (P.L. 110-234). However, the trade title was inadvertently
excluded from the enrolled bill. To remedy the situation, both chambers repassed the farm
bill conference agreement (including the trade title) as H.R. 6124. The President vetoed the
measure in June 2008 and both chambers again overrode the veto, which made H.R. 6124
law (P.L. 110-246), and repealed P.L. 110-234.

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!
continuation and expansion of the federal bio-products
certification program;
!
environmental safeguards through greenhouse gas emission
requirements on new biofuel production, and
!
continuation of the import duty on ethanol.
Energy Policy Issues in the 2008 Farm Bill
Cellulosic Ethanol. The 2008 farm bill energy title provides $1 billion in
financial incentives and support to encourage the production of advanced (mainly
cellulosic) biofuels.10 Grants and loan guarantees leverage industry investments in
new technologies and the production of cellulosic feedstocks. For instance, the
Biomass Crop Assistance Program supports the production of dedicated crop and
forest cellulosic feedstocks and provides incentives for harvest and post production
storage and transport. Advanced biofuels refinery capacity construction is assisted
under the Biorefinery Program for Advanced Biofuels through grants and loans for
the development, construction, and retrofitting of commercial-scale refineries to
produce advanced biofuels. These programs are supported by increased funding for
advanced biofuels research under the Agricultural Bioenergy Feedstock and Energy
Efficiency Research and Extension Initiative, and the Sun Grant Program which
support and coordinate advanced biofuels research, extension, and development
between government agencies, universities, and research institutions.
Currently, cellulosic ethanol is not produced on a commercial scale. As of July
2008, there was one commercial scale refinery under construction, two
demonstration- scale plants and three pilot-scale plants completed. There are 39
additional plants either under construction or in the planning stage.11 Industry
sources expect commercial production of cellulosic ethanol to begin in 2009 or 2010.
The RFS mandates cellulosic ethanol production of 100 million gallons in 2010.
Tax Credits and Tariffs. Title XV of the farm bill contains provisions which
extend and modify tax credits and tariffs on ethanol. In keeping with the promotion
of cellulosic ethanol, a blenders’ credit of $1.01 per gallon applies to ethanol
produced from qualifying cellulosic feedstocks. This tax credit is intended to spur
investment in cellulosic ethanol production. The existing ethanol blenders’ tax credit
of $0.54 per gallon (which applies to all ethanol blended, including imports) falls to
$0.45 per gallon the first year following that year in which U.S. ethanol production
and imports exceed 7.5 billion gallons. It is expected that production and imports in
2008 will exceed 7.5 billion gallons and the tax credit will be reduced beginning in
2009.
10 Advanced biofuels include biofuels derived from cellulosic feedstocks; sugar and starch
other than corn kernel-starch; waste material including crop residue, animal, plant, or food
waste; diesel fuel produced from renewable biomass including vegetable oil and animal fat;
butanol or other alcohols produced through the conversion of organic matter; and other fuels
derived from cellulosic biomass.
11 Cellulosic Biofuels Fact Sheet, Environmental and Energy Study Institute, July 2008.

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The import tariff for ethanol benefits the U.S. ethanol industry by protecting
U.S. ethanol from lower cost imports. The tariff also keeps imported ethanol from
benefitting from the blenders’ tax credit when it is blended into gasoline in the
United States. The tariff of $0.54 per gallon which was set to expire at the end of
2008 is now extended to the end of 2010.
Economic Impacts of Ethanol Production. The impact of increased
ethanol production on agricultural and rural economies was a subject of debate
during the farm bill process. As a result, the farm bill includes provisions requiring
a series of reports assessing how ethanol production may be impacting the farm
economy, the environment, and consumer food prices. Among these are the
Comprehensive Study of Biofuels (to be conducted by the U.S. Department of
Agriculture (USDA), the Environmental Protection Agency (EPA), the Department
of Energy (DOE), and the National Academy of Sciences) and the Biofuels
Infrastructure Study by USDA, DOE, Department of Transportation (DOT), and
EPA. The Biomass Crop Assistance Program requires an assessment of the
economic impacts of expanded cellulosic biomass production on local economies and
infrastructures. Likewise, the Biomass Research and Development Program requires
a report on the economic impacts of rural economies of biorefinery expansion and
conversion by USDA.
Funding for Energy Programs
Table 1 illustrates mandatory and discretionary spending levels for renewable
energy programs in the 2008 farm bill. Title IX authorizes $1.1 billion in mandatory
funding for FY2008 through FY2012, compared with $800 million in the 2002 farm
bill in (FY2002-FY2007).12 Of the mandatory funding, $320 million was allocated
to the Biorefinery Assistance Program, $300 million to the Bioenergy Program for
Advanced Biofuels and $255 million to the Rural Energy for America Program
(REAP). Authorizations for appropriations in the 2008 farm bill total $1 billion, four
times the $245 million in the 2002 farm bill. Most of the increase is for the
Biorefinery Assistance Program, which has an authorization $600 million higher than
in the 2002 farm bill. Table 2 provides a list of provisions in the 2002 farm bill’s
energy title for FY2002 through FY2007 and their funding levels (as requested by the
President, and as authorized and provided by Congress).
12 Mandatory funds are authorized and provided by legislation. Discretionary funds must
be appropriated annually.

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Table 1. 2008 Farm Bill (P.L. 110-246):
Authorized Funding for Energy Provisions, FY2008-FY2012
Title IX
Sum:
Provisions
Section and Provision Name
Funding Status
FY2008
FY2009
FY2010
FY2011
FY2012
FY08-FY12
———————— $ millions—————— —
Title VII - Research
Sec. 7205
Nutrient Management Research
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
and Extension Initiative
Sec. 7207
Bioenergy Feedstock and Energy Efficiency Research
Discretionary
0
50
50
50
50
200
and Extension Initiative
Sec. 7526
Sun Grant Program
Discretionary
75
75
75
75
75
375
Title IX Energy
Sec. 9002
Biobased Markets Program
Mandatory
1
2
2
2
2
9
Additional funding authorization
Discretionary
0
2
2
2
2
8
Sec. 9003
Biorefinery Assistance
Mandatory
0
75
245
0
0
320
Additional funding authorization
Discretionary
0
150
150
150
150
600
Sec. 9004
Repowering Assistance
Mandatory
0
35
0
0
0
35
Additional funding authorization
Discretionary
0
15
15
15
15
60
Sec. 9005
Bioenergy Program for Advanced Biofuels
Mandatory
0
55
55
85
105
300
Additional funding authorization
Discretionary
0
25
25
25
25
100
Sec. 9006
Biodiesel Fuel Education Program
Mandatory
1
1
1
1
1
5
Sec. 9007
Rural Energy for America Program
Mandatory
0
55
60
70
70
255
Additional funding authorization
Discretionary
0
25
25
25
25
100

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Title IX
Sum:
Provisions
Section and Provision Name
Funding Status
FY2008
FY2009
FY2010
FY2011
FY2012
FY08-FY12
———————— $ millions—————— —
Sec. 9008
Biomass Research and Development Act
Mandatory
0
20
28
30
40
118
Additional funding authorization
Discretionary
0
35
35
35
35
140
Sec. 9009
Rural Energy Self-Sufficiency Initiative
Mandatory
0
0
0
0
0
0
Additional funding authorization
Discretionary
0
5
5
5
5
20
Sec. 9010
Feedstock Flexibility Program for Bioenergy Producers
Mandatory
0
0
0
0
0
0
Additional funding authorization
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Sec. 9011
Biomass Crop Assistance Program
Discretionary
SSAN
SSAN
SSAN
SSAN
SSAN
SSAN
Sec. 9012
Forest Biomass for Energy
Discretionary
0
15
15
15
15
60
Sec. 9013
Community Wood Energy Program
Discretionary
0
5
5
5
5
20
Sec. 9003
Renewable Fertilizer Study
Discretionary
0
1
0
0
0
1
Total Discretionary Funding
Discretionary
$140
$418
$417
$417
$417
$1,809
Total Mandatory Funding
Mandatory
$2
$243
$391
$188
$218
$1,042
Source: P.L. 110-246 (Food and Energy Security Act of 2008.
“SSAN” = Such sums as necessary.

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Table 2. 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
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 Systemsb
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 Developmentc
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.” = Farm bill authorized level; “Enact.” = Enacted; “SSAN” = Such sums as necessary. Sec. 9003 and Sec. 9005 were not
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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Table A-1. Comparison of the Enacted 2008 Farm Bill (P.L. 110-246) with Previous Law and the
House- and Senate-Passed 2008 Farm Bill (H.R. 2419)
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
Title VII: Agricultural Research and Extension
Nutrient Management Research and Extension Initiative
Section 1673(h) of the Food, Agriculture,
Extends the nutrient management
Extends program through FY2012. [Sec.
The Conference substitute adopts the
Conservation, and Trade Act of 1990
research and extension initiative through
7103]
House provision with an amendment to
(P.L. 101-624) authorized matching
2012 and adds dairy cattle waste as a
include the production of renewable
grants under the farm bill nutrient
type of waste to be studied. The
energy from animal waste as an eligible
management research and extension
authorization of appropriations for such
activity to receive grants under this
initiative for finding innovative methods
sums as necessary is extended annually
section. Authorizes such sums as
and technologies for economic use or
for FY2008-12. [Sec. 7307]
necessary annually for FY2007-12. [Sec.
disposal of animal waste. Extended
7205]
through 2007 in section .7120 of the
2002 farm bill. Such sums as necessary
were appropriated annually for FY1999-
FY2007. [7 U.S.C. 5925a]
Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension
Initiative
No Provision.
Initiates multi-regional biomass crop
New section 9010 of FSRIA. Regional
Establishes the Agricultural Bioenergy
experiments with a network of
Biomass Crop Experiments. Establishes
Feedstock and Energy Efficiency
laboratories to provide a sound
a program of regional biomass crop
Research and Extension Initiative, a
knowledge base on the production of
experiments at 10 geographically
program to award competitive matching
biomass energy crops, including crop
dispersed and competitively selected
(up to 50%) grants for projects with a
species, nutrient requirements,
land-grant universities. Individual grants
focus on supporting on-farm biomass
management practices, environmental
total $4 million for FY2008-10.Crop
crop research and the dissemination of
impacts, greenhouse gas implications,
experiments are to include all appropriate
results to enhance the production of
and economics. Competitive grants to be
biomass species, including perennials,
biomass energy crops and the integration
awarded to a network of laboratories.
annuals, and woody biomass species in
of such production with the production of
Discretionary appropriations authorized
coordination with the Biomass Research
bioenergy. Discretionary appropriations
of $50 million annually FY2008-12.
and Development Board and with the
of $50 million annually are authorized
[Sec 7410]
Sun Grant Centers. Establishes a “best
for FY2008-12. [Sec. 7207]
practices”database on all aspects of
biomass crop production. Mandatory
CCC funding of $10 million in FY2008,
$20 million in FY2009, and $10 million
in FY2010. [Sec. 9001]

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2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
New Century Farm Project
No provision.
No provision.
New section 9011 of FSRIA. Establishes
The purpose of this section Is
the New Century Farm Project to serve as
incorporated in section 7207.
a model farm. Authorizes appropriations
of $15 million for FY2008 through
FY2012, to remain available until
expended.
Biochar Research, Development, and Demonstration
No provision.
No provision.
New section 9012 of FSRIA. Creates a
The purpose of this section Is
program of competitive grants for
incorporated in the as a research priority
research and demonstration of the
in section 7203.
production and use of biochar in the
agricultural sector. Provides
discretionary funding of $3 million for
each of FY2008 through FY2012. [Sec.
9001]
Farm Energy Production Pilot Program
No provision.
Farm Energy Production Pilot Program.
No provision.
The purpose of this section Is
Provides grants to farmers to demonstrate
incorporated in the Agricultural
the feasibility of making a farm energy
Bioenergy and Biobased Products
neutral using existing technologies.
Research Initiative of section 7207.
Discretionary funds of $5 million are
authorized to be appropriated for
FY2008-12. [Sec. 9010]
Farm Energy Production Pilot Program
No provision.
Provides grants of not more than $1
No provision.
The purpose of this section Is
million to no more than 20 universities to
incorporated in the Agricultural
develop a 3-year demonstration program
Bioenergy and Biobased Products
of supplementing corn as an ethanol
Research Initiative of section 7207.
feedstock with sweet sorghum and
switchgrass. Discretionary funds of $20
million are authorized for FY2008-
FY2012. [Sec. 9020]

---

CRS-11
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
Research and Development of Renewable Energy
No comparable provision.
No comparable provision.
New section 9022 of FSRIA. USDA will
The purpose of this section Is
conduct research, with the Colorado
incorporated in the Agricultural
Renewable Energy Collaboratory,
Bioenergy and Biobased Products
relating to various aspects of renewable
Research Initiative of section 7207.
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.[Sec. 9001]
Northeast Dairy Nutrient Management and Energy Development Program
No provision.
No provision.
New section 9023 of FSRIA. Establishes
The purpose of this section Is
USDA program to provide grants to a
incorporated in section 7204.
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. [Sec. 9001]
Future Farmsteads Program
No provision.
Section 9015. Establishes a program to
New section 9025 of FSRIA. Same as
The purpose of this section Is
equip a farm entity (house and lands), in
House bill. [Sec. 9001]
incorporated in the Agricultural
each of 5 regions of the country, with
Bioenergy and Biobased Products
technologies to improve farm energy
Research Initiative of section 7207.
production and use efficiencies. Each
designated entity would serve as a

---

CRS-12
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
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.
Sun Grant Program
Section 9011. This provision was added
Adds a Sun Grant center at the University
New section 9009 of FSRIA.
Adopts the Senate provision with
subsequent to the 2002 farm bill under
of Hawaii. Reauthorizes the Sun Grant
Reauthorizes the Sun Grant Program
amendments and moves the provision in
the Sun Grant Research Initiative Act of
program through FY2012 with
through FY2012 and establishes a 6th
statute to the research title of this act. No
2003. Establishes 5 national Sun Grant
authorized discretionary appropriations
regional center — Western Insular
mandatory funding is provided. The
research centers based at land-grant
of $75 million for each of FY2008-12,
Pacific Sub-Center — at the University
conference substitute authorizes $75
universities, each covering a different
for a total in discretionary funding of
of Hawaii. Provides, for the first time,
million per year for FY2008-FY2010.
national region, to enhance coordination
$375 million. [Sec. 9008]
mandatory funding for the Sun Grant
[Sec. 7526]
and collaboration between USDA, DOE,
program of $5 million in FY2008, $10
and land-grant universities in the
million in each of FY2009 and FY2010
development, distribution, and
(available until expended) for a total of
implementation of biobased energy
$25 million for FY2008-12. Also
technologies. Competitive grants are
authorizes appropriations of $70 million
available to land-grant schools within
in each of FY2008-12. [Sec. 9001]
each region. Authorized appropriations
of $25 million in FY2005, $50 million in
FY2006, and $75 million for each of
FY2006 through FY2010 for total
discretionary funding of $375 million
during FY2005-10. [7 U.S.C. 8109]
TITLE IX: Energy
Definitions
Sec. 9001. Defines Administrator,
No changes to definitions. [Sec. 9001]
Sec. 9001. Adds several definitions
New section 9001 of FSRIA. Adopts the
Biomass, Biobased Product, Procuring
including
Senate definitions with amendments.
Agency, Renewable Energy, Rural Small
“Advanced Biofuels,” which excludes
Advanced biofuels includes aviation, jet,
Business, and Secretary. [7 U.S.C. 8101]
any fuel derived from corn starch, but
and heating fuels made from cellulosic
includes ethanol derived from other plant
biomass. [Sec. 9001]
starches (e.g., sorghum), sugar, as well as
cellulosic biomass or organic waste; it
also includes organically-derived biogas,

---

CRS-13
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
butanol or other alcohols; and, notably,
biodiesel.
Other definitions include Biobased
Product; Biomass Conversion Facility,
Biorefinery, Intermediate Ingredient or
Feedstock; Renewable Biomass, and
Renewable Energy. [Section 9001]
Biobased Markets program
Sec. 9002. Requires federal agencies to
Continues federal commitment to
New section 9002 of FSRIA. Continues
New section 9002 of FSRIA. Renames
purchase biobased products under certain
biobased product preference in its
the Federal Biobased Products
program as the Biobased Markets
conditions and authorize a voluntary
purchases. Requires annual reports from
Procurement Program, clarifying that
Program. Requires procuring agencies to
biobased labeling program. USDA
agencies to Administrator of Federal
biobased intermediate ingredients and
establish a program and specifications for
regulations define biobased products,
Procurement Policy. Also requires
feedstocks qualify under the program. It
procuring biobased products (excluding
identify biobased product categories, and
annual reports from USDA to Congress
also requires USDA to establish a
motor vehicle fuels, heating oil, or
specify the criteria for qualifying those
on implementation status. Clarifies that
voluntary labeling program for biobased
electricity). Establishes the voluntary
products for preferred procurement.
products with at least 5% of intermediate
products — “USDA Certified Biobased
labeling program: “USDA Certified
Mandatory Commodity Credit
ingredients and feedstock that are
Product.” Additionally, this section
Biobased Product.” Requires USDA to
Corporation (CCC) funding of $1 million
biobased should be considered under the
provides grants for education and
establish a national registry of biobased
is authorized for each of FY2002 through
preference. Requires USDA to complete
awareness of bioenergy and biobased
testing centers and a report on
FY2007 for testing biobased products. [7
rulemaking on labeling regulation.
products. Provides $3 million per year in
implementation. Mandatory CCC
U.S.C. 8101]
Increases mandatory CCC funding to $2
mandatory funding for FY2008 through
funding of $1 million in 2008, and $2
million for each of FY2008 through
FY2012. [Sec. 9001]
million annually for FY2009-FY2012.
FY2012 for bio-product testing, labeling,
Discretionary funding of $2 million
and procurement research, promotion,
annually is authorized for FY2009-
and awareness initiatives. [Sec. 9002]
FY2012. [Sec. 9001]
Biorefinery Assistance
No provision.
Included in section 9003, below.
Included in new section 9005 of FSRIA,
New section 9003 of FSRIA. Biorefinery
below.
Assistance Program. Assists in the
development of new and emerging
technologies for the development of
advanced biofuels. Provides competitive
grants and loan guarantees for
construction and retrofitting of
biorefineries for the production of
advanced biofuels. Biorefinery grants
provided for up to 30% of total cost.
Each loan guarantee is limited to $250

---

CRS-14
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
million or 80% of project cost.
Mandatory funding of $75 million in
FY2009 and $245 million in FY2010,
available until expended for loan
guarantees. Discretionary funding of
$150 million annually is authorized for
FY2009-12. [Sec. 9001]
Repowering Assistance
Section 9003. Established a grant
Renamed as the Biorefinery
New section 9005 of FSRIA: Renamed
New section 9004 of FSRIA. Provides
program to help finance the cost of
Development Program and extended
the Biorefinery and Repowering
payments to encourage biorefineries in
developing and constructing biorefineries
through FY2012. It replaces grants with
Assistance Program, it refocuses
existence on the date of enactment to
and biofuel production plants to carry out
new loan guarantee authority of $2
emphasis on “advanced biofuel”
convert from fossil fuel to renewable
projects to demonstrate the commercial
billion for biorefineries — one-half for
production in renewable-fuel-powered
energy power sources. Encourages new
viability of converting biomass to fuels
loans less than $100 million, and the
biorefineries. Provides competitive
production of energy for refineries from
or chemicals. No mandatory funding was
other half for loans between $100 and
grants for up to 50% of project costs for
renewable biomass. Mandatory funding
authorized and no discretionary funding
$250 million. The loan guarantee would
pilot- and demonstration-scale
of $35 million for FY2009, to remain
has been appropriated for the program.
cover 90% of an eligible loan. Requires
biorefineries; matching funds for
available until expended. Discretionary
Therefore, no implementation regulations
that construction contractors and
feasibility studies; competitive grants for
funding of $15 million annually for
have been developed. [7 U.S.C. 8103]
subcontractors on federally assisted loan
up to 20% of total costs for the
FY2009-12 is authorized. [Sec. 9001]
guarantee projects pay their employees
repowering of fossil-fueled biomass
not less than the prevailing wage in the
conversion facilities with renewable
same locality under the Davis-Bacon Act.
resources; and loan guarantees for up to
Authorizes mandatory CCC funding of
80% of total eligible project costs for the
$75 million in FY2008; $100 million in
development and construction of
FY2009; $125 million in FY2010; $200
commercial-scale biorefineries and the
million in FY2011; and $300 million in
repowering of biomass conversion
FY2012 for a total in new mandatory
facilities with renewable energy. Any
funding of $800 million during FY2008-
loan guaranteed for commercial scale
12. [Sec. 9003]
biorefineries cannot exceed $250 million
and a loan guaranteed for repowering
cannot exceed $70 million. Provides
$300 million in mandatory CCC funding
during FY2008, to remain available until
expended. [Sec. 9001]
Bioenergy Program for Advanced Biofuels
Section 9010. Originally created by a
.Renews and extends the bioenergy
New section 9006 of FSRIA. Renews and
New section 9005 of FSRIA. Establishes
1999 Executive Order during the Clinton
program through FY2012. Ethanol
extends the Bioenergy Program through
the Bioenergy Program for Advanced

---

CRS-15
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
Administration, the bioenergy program
produced from corn starch is excluded.
FY2012. Bases the payment rate on: (1)
Biofuels to encourage production of
provides CCC incentive payments to
Expands eligibility for the production
advanced biofuel production, (2)
advanced biofuels. Not more than 5% of
biofuels producers based on year-to-year
incentive to the production of heat and
feedstock prices, and (3) net
the funds can go to facilities with total
increases in the quantity of biofuel
power at a biofuels plant, biomass
non-renewable energy content of the
refining capacity exceeding 150 million
produced. Mandatory CCC funding of
gasification, hydrogen for fuel cells, and
biofuel. This will benefit those
gallons per year. Producers of advanced
$150 million was made available for each
renewable diesel. Provides mandatory
purchasing feedstocks for cellulosic
biofuels contracts with USDA to receive
of FY2002 through FY2006. No funding
CCC funding of $225 million in FY2008;
biofuels and biodiesel.
payments based on the quantity and
was authorized for FY2007. [7 U.S.C.
$250 million in FY2009; $275 million in
The program is not available to
duration of production of advanced
8108]
FY2010; $300 million in FY2011; and
those claiming a biofuel blenders’ tax
biofuels, the net renewable energy
$350 million in FY2012 for a total of
credit (see Sec. 12312) or those with
content of the biofuel, and other factors.
$1.4 billion during FY2008-12. [Sec.
biofuel production capacity greater than
Payments limited to ensure equitable
9007]
150 million gallons per year.
distribution. Mandatory funding of $55
Provides $245 million in
million for 2009, $55 million for
mandatory funding for FY2008 through
FY2010, $85 million for FY2011, and
FY2012. [Sec. 9001]
$105 million for FY2012. Discretionary
funding of $25 million annually is
authorized for FY2009-12. [Sec. 9001]
Biodiesel Fuel Education Program
Section 9004. Administered by USDA’s
Extends the Biodiesel Fuel Education
New section 9003 of FSRIA. Same as
New section 9006 of FSRIA. Extends the
Cooperative State Research, Education,
Program through FY2012 with
H.R. 2419. [Sec. 9001]
Biodiesel Fuel Education Program
and Extension Service, awards
mandatory funding of $2 million for each
through 2012. Mandatory CCC funds of
competitive grants to nonprofit
of FY2008 through FY2012. [Sec. 9017]
$1 million are provided annually for
organizations that educate governmental
FY2008-12. [Sec. 9001]
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. [7 U.S.C. 8104]
Energy Audit and Renewable Energy Development Program
Section 9005. A competitive grant
Section 9004. Extends the Energy Audit
New section 9007 of FSRIA. Extends
See new section 9007 of FSRIA below.
program for eligible entities to provide
and Renewable Energy Development
the Energy Audit and Renewable Energy
energy audits and technical assistance to
Program through FY2012.
Development Program through FY2012,
agricultural producers and rural small
but folds it into the new Rural Energy for
businesses to assist them in becoming
America Program where mandatory
more energy efficient and in using
funding is available (see the Renewable
renewable energy technology and
Energy Systems section for more

---

CRS-16
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
resources. Authorized appropriations of
information). [Sec. 9001]
such sums as are necessary to carry out
the program for each of FY2002 through
FY2007. [7 U.S.C. 8105]
Rural Energy for America Program
The Renewable Energy Systems and
Renamed as the Rural Energy for
New section 9007 of FSRIA. Renamed
New section 9007 of FSRIA. Renamed
Energy Efficiency Program (Section
America Program. Includes other
as the Rural Energy for America
as the Rural Energy for America
9006), administered by USDA’s Rural
agricultural producers as eligible
Program, this section adds the option to
Program. Provides grants and loan
Development Agency, authorizes direct
recipients. Raises the loan guarantee
receive a production incentive payment
guarantees to State governments, tribal,
loans, loan guarantees, and grants to
level from $10 million to $25 million.
in lieu of a grant, and stipulates that a
or local governments, land-grant
farmers, ranchers, and rural small
Grant fund cost share is retained at up to
grant may cover up to 25% of project
institutions, or rural electric cooperatives
businesses to purchase and install
25% of project costs; however, combined
costs while a loan guarantee may cover
or utilities to provide energy audits and
renewable energy systems and to make
grants and loans (including guarantees) is
up to 75% of the cost. Preference given
renewable energy assistance, and
energy efficiency improvements. Grant
expanded to 75% of project cost. 10% of
to state-funded projects. Direct loans are
financial assistance for energy efficiency
funds may be used to pay up to 25% of
funds are available for feasibility studies,
excluded. Adds state agencies and public
improvements and renewable energy
project costs; combined grants and loans
but excludes recipient from other
power entities to eligible participants.
systems. Grants up to 25% of cost are
or loan guarantees may fund up to 50%
assistance for feasibility studies.
Energy from manure: Provides grants
provided. Loan guarantees up to $25
of project cost. Eligible projects include
Includes sale of electricity from
and loan guarantees to build and evaluate
million. Combined amount of grant and
those that derive energy from wind, solar,
renewable energy systems as eligible
on-farm and community animal manure-
guaranteed loans limited to 75% of cost.
biomass, or geothermal sources. Projects
activities for grant and loan funding.
to-energy facilities for which agricultural
20% of funds made available in this
using energy from those sources to
15% of funds available reserved for
producers, rural small businesses, and
section to be reserved for grants of
produce hydrogen from biomass or water
projects of $50,000 or less. Increases
cooperatives are eligible participants.
$20,000 or less until the end of the fiscal
are also eligible. Mandatory CCC
mandatory CCC funding to $50 million
Criteria based on energy quality,
year. Mandatory CCC funds of $55
funding of $23 million was made
in FY2008; $75 million in FY2009; $100
efficiency, environmental issues
million in FY2009, $60 million in
available for each of FY2003 through
million in FY2010; $125 million in
greenhouse gas emissions, diversity
FY2010, $70 million in FY2011, and $70
FY2007. Unspent money lapses at the
FY2011; and $150 million in FY2012 for
factors and cost. Establishes streamlined
million in FY2012. Discretionary
end of each year. [[7 U.S.C. 8106]
total new mandatory funding of $500
review and application process for small-
funding of $25 million annually is
million during FY2008-FY2012. [Sec.
scale projects (under $20,000), and
authorized to be appropriated for
9005]
requires that 20% of funds be used for
FY2009-12. [Sec. 9001]
such projects. The Energy Star Program
is extended 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 program and not less

---

CRS-17
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
than 5% for the Energy Audit and
Renewable Energy Development
Program provision. [Sec. 9001]
Biomass Research and Development Program
This program — created originally under
Extends the program through FY2012.
New section 9008 of FSRIA. Extends the
New section 9008 of FSRIA. Moves the
the Biomass Research and Development
Authorizes mandatory CCC funding of
program and transfers statutory authority
Biomass Research and Development Act
Act of 2000 (BRDA, P.L. 106-224) —
$35 million in FY2008; $60 million in
to this act. Adds new emphasis on
of 2000 in statute to Title IX of FSRIA of
provides competitive funding for
FY2009; $75 million in FY2010; $100
utilization of byproducts such as dried
2002. Defines biobased product.
research, development, and
million in FY2011; and $150 million in
distillers grains and solubles (DDGS) and
Expands advisory committee. New
demonstration projects on biofuels and
FY2012 for total new mandatory funding
development of technologies for harvest,
technical areas for grants include
bio-based chemicals and products, under
of $420 million during FY2008-FY2012.
storage, pre-processing and
feedstock development, biofuels and
the Biomass Research and Development
Continues the appropriations
transportation of renewable biomass
biobased products development and
Initiative, administered jointly by USDA
Appropriation authority of$200 million
feedstocks. Provides mandatory funding
biofuels development analysis with a
and DOE. Creates Biomass research and
in each of FY2008 through FY2015.
(to remain available until expended) of
minimum of 15% of funding going to
Development Board to coordinate
[Sec. 9006]
$15 million in FY2008, $25 million in
each area. Minimum cost-share
government activities in biomass
FY2009, and $35 million in FY2010 for
requirement for demonstration projects
research, and the Biomass Research and
a total in new mandatory funding of $75
increased to 50% and research projects to
Development Technical Advisory
million during FY2008-FY2012. Also
20%. Provides for coordination of
Committee to advise on proposal
includes the appropriations authority for
biomass research and development,
direction and evaluation. Authorized
$85 million in each of FY2008 through
including life cycle analysis of biofuels,
mandatory CCC funding of $5 million in
FY2012. [Sec. 9001]
between USDA and DOE. Authorizes
FY2002 and $14 million for each of
mandatory funding of $20 million for
FY2003 through FY2007 (available until
FY2009, $28 million for FY2010, $30
expended). Additional appropriation
million for FY2011, and $40 million for
authority of $200 million for each of
FY2012. Discretionary funding of $35
FY2006 through FY2015. [7 U.S.C.
million is authorized to be appropriated
8101]
annually for FY2009-12. [Sec. 9001]
Rural Energy Self-Sufficiency Initiative
No provision.
Establishes the Rural Energy Self-
New section 9015 of FSRIA. Establishes
New section 9009 of FSRIA. Establishes
Sufficiency Initiative to provide cost-
a program — the Rural Energy Systems
the Rural Energy Self-Sufficiency
share grants to enable eligible rural
Renewal Program — of competitive
Initiative to assist rural communities with
communities (with population less than
cost-shared grants (50% maximum
community-wide energy systems that
25,000) to substantially increase their
federal share) for rural communities to
reduce conventional energy use and
energy self-sufficiency. Grants may not
assess their energy systems and formulate
increase the use of energy from
exceed 75% of costs. Requires a report
strategies for improvements. Authorizes
renewable sources. Grants are made
to Congress on best practices/approaches.
discretionary funding of $5 million
available to assess energy use in a rural
Total grants under this section are limited
annually for FY2008-12. [Sec. 9001]
community, evaluate ideas for reducing

---

CRS-18
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
to no more than 5 per year. Authorizes
energy use, and develop and install
discretionary appropriations for grants of
integrated renewable energy systems.
not more than $5 million for FY2008,
Grants not to exceed 50% of the total
and such sums as are necessary for
cost of the activity. Appropriations of $5
FY2009-12. [Sec. 9011 (appended as
million annually are authorized for
section 9014 of FSRIA)]
FY2009 — 12. [Sec. 9001]
Feedstock Flexibility Program for Bioenergy Producers
No provision.
Requires that USDA establish (in
See Title I, Section 1501, Sugar Program,
New section 9010 of FSRIA. Adopts the
FY2008) and administer a sugar-for-
for a similar sugar-for-ethanol provision
House provision with amendments. [Sec.
ethanol program using sugar intended for
entitled the “Feedstock Flexibility
9001]
food use but deemed to be in surplus.
Program for Bio-Energy Producers”.
USDA would implement the program
Identical to the House provision.
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.
[Sec. 9013] (would be appended as
Section 9016 of FSRIA).
Biomass Crop Assistance Program
No provision.
Establishes a new Biomass Energy
New section 9004 of FSRIA. Creates the
New section 9011 of FSRIA. Establishes
Reserve (BER) to encourage through
Biomass Crop Transition Assistance
the Biomass Crop Assistance Program
financial assistance the production of
Program to stimulate production of
(BCAP) to provide producers committing
dedicated energy crops, establish biomass
biomass crops. USDA provides technical
to biomass production or a biomass
energy reserve project areas, and to
and financial assistance for the
conversion facility with contracts which
provide financial and technical assistance
production of perennial bioenergy crops
will enable producers in a BCAP project
to owners and operators for harvesting,
used in a biomass conversion facility.
area to receive financial assistance for
storing, and transporting cellulosic
Restricted to advanced biofuels, biobased
crop establishment costs and annual
material to bioenergy facilities. Provides
products, or heat or power from a
payments t for biomass production.
financial and technical assistance
biomass conversion facility. Provides
Producers must be within economically
(including five-year contracts) to
$130 million in mandatory funding for
practicable distance from a biomass
landowners and operators to grow
FY2008 through FY2012 to support
facility and adhere to resource
dedicated energy crops as feedstock for
biomass production. Also provides $10
conservation requirements. Cost-share
cellulosic ethanol and other energy
million in mandatory funding for each of
payments cover costs of establishing
production. BER projects must be within
FY2009 through FY2011 (to remain
crop, for collection, harvest, storage and
a 50-mile radius of a bioenergy facility.
available until expended) for a fixed
transportation to a biomass conversion
Authorizes mandatory funding of such
assistance payment to agricultural
facility. Annual payments authorized to

---

CRS-19
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
sums as are necessary for FY2008-
producers for production, collection,
producers to support biomass production.
FY2012. [Sec. 9018]
harvest, storage and transportation of
A report is required no later than 4 years
biomass crops for use in a biomass
after enactment. Mandatory CCC funds
conversion facility. Requires USDA
of such sums as necessary are made
provide public information on the
available for each of FY2008-12. [Sec.
production potential, environmental
9001]
impacts, and best practices for
production, harvesting, transport and
storage of biomass crops and requires
participants to provide information as
needed for that purpose. [Sec. 9001]
Forest Biomass for Energy
No provision.
.Establishes a new competitive research
New section 9013 of FSRIA. Same as
New section 9012 of FSRIA. Forest
and development program to encourage
the House provision, but with
Service competitive research and
the use of woody biomass for bioenergy
discretionary (not mandatory)
development program to encourage use
production. Provides mandatory CCC
authorization of $5 million for each of
of forest biomass for energy. Priority to
funding of $15 million for each of
FY2008-12. [Sec. 9001]
projects that use low-value forest
FY2008-12. [Sec. 9019]
byproduct biomass for the production of
energy, develop processes to integrate
bioenergy from forest biomass into
existing manufacturing streams and
develop new transportation fuels and
improve the production of trees for
renewable energy. Authorized
appropriations of $15 annually for
FY2009-12. [Sec. 9001]
Community Wood Energy Program
No provision.
Establishes Community Wood Energy
New section 9014 of FSRIA. Similar to
New section 9013 of FSRIA. Same as
Program to provide matching grants to
House provision except specifies
Senate provision. [Sec. 9001]
State and local governments to acquire
matching grants of up to $50,000.
community wood energy systems for
Provides discretionary funding of $5
public buildings and to implement a
million for each of FY2008-12. [Sec.
community wood energy plan to meet
9001]
energy needs with reduced carbon
intensity through conservation, reduce
costs, and utilize low-value wood
sources, and increase awareness of

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CRS-20
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
energy consumption. Authorizes
discretionary funding of such sums as are
necessary. [Sec. 9019]
Biofuels Infrastructure Study
No provision.
No provision.
New section 9018 of FSRIA. Directs
Requests USDA, DOE, EPA and DOT to
USDA, in collaboration with the DOE
jointly report on the infrastructure needs
and DOT and EPA, to conduct a study of
and development approaches for
the infrastructure needs associated with a
expanding the domestic production,
significant expansion in biofuel
transport, and distribution of biofuels,
production and use. Specifically includes
and the required infrastructure. [Sec.
dedicated ethanol pipeline feasibility
9002]
studies and examination of water
resource needs. Requires a report to
Congress on the results of the studies.
Authority to appropriate $1 million for
each of FY2008 and FY2009. [Sec.
9001]
Rural Fertilizer Study
No provision.
No provision.
New section 9019 of FSRIA. Requires
Requires a report within 1 year of
USDA to conduct a Renewable Nitrogen
appropriations on the production of
Fertilizer Study to assess the feasibility of
fertilizer from renewable energy sources
producing nitrogen fertilizer from
in rural areas. Report must identify
renewable energy (and submit a report to
challenges to commercialization of rural
Congress within 270 days). Provides
fertilizer production, processes and
discretionary funding of $1 million for
technologies and the potential impacts of
FY2008. [Sec. 9001]
renewable fertilizer on fossil fuel use and
the environment. Appropriations of $1
million are authorized for FY2009. [Sec.
9003]

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CRS-21
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
Title XI: Livestock
Study on Bioenergy Operations
No provision.
No provision.
No provision.
Requires USDA study on the use of
animal manure as a fertilizer, and on the
impact on consumers and on agricultural
operations of limitations placed on the
use of animal manure and the effects of
increased competition for manure due to
biofuel uses. [Sec. 11014]
Title XV: Trade and Tax Provisions; Subtitle C PART II — Energy Provisionsa
Credit for Production of Cellulosic Biofuel
Under the American Jobs Creation Act
No provision.
Provides for a total income tax credit of
Provides a fourth tax credit under 26
(AJCA) of 2004, (P.L. 108-357),
$1.25 per gallon for cellulosic ethanol
U.S.C. 40, the Cellulosic Biofuel
cellulosic ethanol, once developed,
blended (inclusive the standard ethanol
Producer Credit. The credit is $1.01 per
would receive the current tax credit of
tax credit of $0.51/gal. and the small
gallon less the amount of small-producer
$0.51 per gallon available to any ethanol
producer credit of $0.10/gal.). The 15
ethanol credit claimed and the alcohol
blended into gasoline as provided,
million gallon limitation on the $0.10
mixture credit claimed for ethanol.
through Dec. 31, 2010. [26 U.S.C. 40]
credit is waived for small cellulosic
[Sec. 15321]
ethanol producers. Applicable only for
domestically produced cellulosic ethanol.
The producer credit is extended through
April 1, 2015. [Sec. 12312]
Comprehensive Study of Biofuels
No provision.
No provision.
No provision.
The Secretary of Treasury, with USDA,
DOE, and EPA shall commission the
National Academy of Sciences to
produce a report on biofuels, including
current and projected production,
economic and environmental impacts, the
impact of government programs, and the
relative impacts of different types of
biofuels. [Sec. 15322]

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CRS-22
2002 Farm Bill
House-Passed Farm Bill
Senate-Passed Farm Bill
Enacted Farm Bill
(FSRIA, P.L. 107-171)
(H.R. 2419)
(H.R. 2419)
(P.L. 110-246)
or Other Law (as indicated)
Alcohol Fuel: Modification of Alcohol Credit
Any ethanol blended into gasoline is
No provision.
Reduces the ethanol blenders’ tax credit
Reduces the ethanol tax credit of $0.51
eligible for a tax credit of $0.51 per
of $0.51 per gallon to $0.46 per gallon
per gallon to $0.45 per gallon beginning
gallon as provided under current law
beginning in the first calendar year after
in the first calendar year after the year in
(AJCA of 2004, P.L. 108-357) through
the year in which 7.5 billion gallons of
which 7.5 billion gallons of ethanol is
Dec. 31, 2010. [26 U.S.C. 40]
ethanol is produced. [Sec. 12315]
produced. [Sec 15331]
Alcohol Fuel: Calculation of Volume of Alcohol for Fuel Credits
Under current law (AJCA of 2004, P.L.
No provision.
Reduces the permissible volume of
Reduces the permissible volume of
108-357) the volume of bio-alcohol
denaturant to 2% for purposes of
denaturant to 2% for purposes of
counted as fuel eligible for the tax credit
calculating the volume of alcohol eligible
calculating the volume of alcohol eligible
may include up to 5% of the volume as
for the tax credit. [Sec. 12316]
for the tax credit. [Sec. 15332]
denaturant. [26 U.S.C. 40]
Alcohol Fuel: Ethanol Tariff Extension
Under current law (Heading 9901.00.50
No provision.
Extends the tariff or 54 cents per gallon
Adopts Senate provision. [Sec 15333]
of the Harmonized Tariff Schedule
for imported ethanol or mixtures of
(HTS)) imports of ethyl alcohol are
ethanol (headings 9901.00.50 and
subject to a duty of 14.27¢ per liter
9901.00.52 of the HTS) through Dec. 31,
($0.54 per gallon) and a duty of 5.99¢
2010. [Sec. 12317]
per liter (Heading 9901.00.52; HTS) on
imports of ethyl tertiary-butyl ether
through Dec. 31, 2008. [19 U.S.C.
Chapter 18]
Alcohol Fuel: Limitations on, and Reductions of, Duty Drawback on Certain Imported Ethanol
Under current law (Section 1313 of the
No provision.
Eliminates the ability to obtain a refund
Adopts the Senate provision. [Sec.
Tariff Act of 1930, as amended) permits
of the duty imposed under HTS
15334]
the refund of duty if the duty-paid good
9901.00.50 on imported ethanol by
is re-exported or used to make a good
substitution of either ethanol not subject
that is exported. In particular, a person
to the duty, or of another petroleum
who manufactures gasoline with ethanol
product, that is exported to obtain the
subject to the duty imposed under either
drawback. [Sec. 12318]
HTS 9901.00.50, can export jet fuel
(which does not contain ethanol) and
obtain a refund of the duty paid. [19
U.S.C. Chapter 18]
a. For more information on the Senate’s tax and trade provisions, 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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