.

Renewable Energy Programs in the
2008 Farm Bill
Megan Stubbs
Analyst in Agricultural Conservation and Natural Resources Policy
March 18, 2011
Congressional Research Service
7-5700
www.crs.gov
RL34130
CRS Report for Congress
P
repared for Members and Committees of Congress
c11173008

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Renewable Energy Programs 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 Farm Security and
Rural Investment Act of 2002 (P.L. 107-171, 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 had contributed 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 (not subject to
appropriations) 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 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 continued current biofuels tax
incentives, reducing those for corn-based ethanol but expanding tax credits for cellulosic ethanol.
The tariff on ethanol imports was also extended.
Implementation of the farm bill’s energy provisions is underway. President Obama, in May 2009,
directed the U.S. Department of Agriculture (USDA) and the Department of Energy (DOE) to
accelerate implementation of renewable energy programs. Notices, proposed rules, and final rules
have appeared in the Federal Register soliciting applications for those programs with available
funding.

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Renewable Energy Programs in the 2008 Farm Bill

Contents
Background ................................................................................................................................ 1
Major Energy Provisions in the 2008 Farm Bill ........................................................................... 2
Energy Policy Issues in the 2008 Farm Bill ................................................................................. 3
Cellulosic Biofuels................................................................................................................ 3
Tax Credits and Tariffs .......................................................................................................... 4
Economic Impacts of Ethanol Production.............................................................................. 4
Funding for Energy Programs ..................................................................................................... 5

Tables
Table 1. 2008 Farm Bill Energy Funding by Provision, FY2009 to FY2011 ................................. 6
Table B-1. 2008 Farm Bill (P.L. 110-246): Authorized Funding for Energy Provisions,
FY2008-FY2012.................................................................................................................... 15

Appendixes
Appendix A. Comparison of the Enacted 2008 Farm Bill (P.L. 110-246) with Previous
Law ......................................................................................................................................... 9
Appendix B. Authorized Funding for Energy Provisions............................................................ 15

Contacts
Author Contact Information ...................................................................................................... 17

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Renewable Energy Programs in the 2008 Farm Bill

Background
Renewable energy policy in the Food, Conservation, and Energy Act of 2008 (P.L. 110-246, 2008
farm bill) builds on earlier programs, many of which were established in the Farm Security and
Rural Investment Act of 2002 (P.L. 107-171, 2002 farm bill). The 2002 farm bill 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. 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).1 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.2
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.3 The emphasis on facilitating production of biofuels derived from cellulosic feedstocks
reflects the goals of the renewable fuels standard (RFS) in EISA. EISA 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 ethanol (15 billion gallons by 2015). Provisions in the 2008 farm bill reflect the increased
role for biofuels mandated by the expansion of the RFS and its likely impact on the U.S.
agriculture sector.4
The emphasis on cellulosic ethanol also reflects increasing concerns about the economic and
environmental issues associated with corn starch-based ethanol.5 Record high commodity prices
in 2007 and mid-2008, combined with high energy costs, 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 three years. When petroleum prices rise, so does 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 2008 farm bill debate as food price inflation accelerated
both in the U.S. and globally—highlighting some of the potential problems associated with

1 For more information, see CRS Report R41282, Agriculture-Based Biofuels: Overview and Emerging Issues.
2 For a listing of federal incentives in support of biofuels production, see CRS Report R40110, Biofuels Incentives: A
Summary of Federal Programs.
3 For more information, see CRS Report RL34239, Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm
Bill: A Side-by-Side Comparison.
4 For more information, see CRS Report R40155, Renewable Fuel Standard (RFS): Overview and Issues; and CRS
Report R41106, Meeting the Renewable Fuel Standard (RFS) Mandate for Cellulosic Biofuels: Questions and Answers.
5 For more information, see CRS Report RL34738, Cellulosic Biofuels: Analysis of Policy Issues for Congress.
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Renewable Energy Programs in the 2008 Farm Bill

replacing even a small share of the nation’s gasoline consumption with corn-based ethanol. In
2010, over 39% the U.S. corn crop was consumed by ethanol production.6
Several of the federal programs that currently support renewable energy production in general,
and agriculture-based energy production in particular, are outside the purview of the U.S.
Department of Agriculture (USDA) and have legislative origins outside of the farm bill. 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 biofuel blenders were initially
contained in the American Jobs Creation Act of 2004 (P.L. 108-357), although they were
incorporated in the farm bill. More recently, the tax credits were extended in the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312).
Major Energy Provisions in the 2008 Farm Bill
The 2008 farm bill (P.L. 110-246) significantly expands existing programs to promote biofuels.
Like the 2002 farm bill (P.L. 107-171), 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 enacted 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. Sections 9002 and 9003 direct studies and reports on
biofuels infrastructure and renewable fertilizer, respectively. See Appendix A for a side-by-side
comparison of previous law with the energy provisions of the 2008 farm bill.
Key biofuels-related provisions in the enacted 2008 farm bill include:
• emphasis on cellulosic ethanol production through new blender 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 USDA and
Environmental Protection Agency (EPA);

6 USDA, PSD database, December 10, 2010. For more information, see CRS Report R41282, Agriculture-Based
Biofuels: Overview and Emerging Issues.
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• an education program to promote the use and understanding of biodiesel;
• reduction of the blender tax credit for corn-based ethanol;
• 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 Biofuels
The 2008 farm bill energy title provides $1 billion in financial incentives and support to
encourage the production of advanced (mainly cellulosic) biofuels.7 Grants and loan guarantees
leverage industry investments in new technologies and the production of cellulosic feedstocks.
For instance, the Biomass Crop Assistance Program (BCAP, Section 9001) supports the
production of dedicated crop and forest cellulosic feedstocks and provides incentives for harvest
and post-production storage and transport.8 Advanced biofuels refinery capacity construction is
assisted under the Biorefinery Assistance program (Section 9001) 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 (Section 7207), and the Sun Grant Program (Section 7526) which support and
coordinate advanced biofuels research, extension, and development between government
agencies, universities, and research institutions.
Cellulosic ethanol is produced from cellulose, hemicellulose, or lignin derived from the structural
material that provides much of the mass of plants. Besides corn, several other agricultural
products are viable feedstock and appear to offer attractive long-term supply potential—
particularly cellulose-based feedstock such as prairie grasses and fast-growing woody crops such
as hybrid poplar and willow trees, as well as waste biomass materials (logging residues, wood
processing mill residues, urban wood wastes, and selected agricultural residues such as sugar
cane bagasse and rice straw). Some cellulosic feedstock, such as native prairie grasses (e.g.,
switchgrass), appear to offer environmental benefits over corn-based ethanol because they thrive
on marginal lands (as well as on prime cropland) and need little water and no fertilizer.
Currently, cellulosic ethanol is not produced on a commercial scale. Only a few small refineries
began limited production in 2010. Industry sources anticipate that many of the plants will be fully
operational by 2012. The 2010 RFS mandate of 100 million gallons set by Congress was waived

7 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. For more information, see CRS Report RL34738, Cellulosic Biofuels:
Analysis of Policy Issues for Congress.
8 For more information on BCAP, see CRS Report R41296, Biomass Crop Assistance Program (BCAP): Status and
Issues.
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Renewable Energy Programs in the 2008 Farm Bill

by EPA and lowered to a mandate of 6.5 million gallons for 2010. EPA projects that the 2011 RFS
cellulosic biofuel production mandate of 6.6 million gallons will be met primarily by four
companies: DuPont Danisco, Fiberight, KL Energy, and Range Fuels.9 Some of these companies
started producing relatively small amounts of cellulosic ethanol in 2010.
Tax Credits and Tariffs
Title XV of the 2008 farm bill contains provisions which extend and modify tax credits and tariffs
on ethanol. In keeping with the promotion of cellulosic ethanol, a blender 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 ethanol blender tax credit of
$0.51 per gallon (which applies to all ethanol blended, including imports) was reduced to $0.45
per gallon in January 2009. Section 15331 of the farm bill requires the reduction starting the first
year following that year in which U.S. ethanol production and imports exceed 7.5 billion gallons.
Production and imports in 2008 were estimated to have exceeded 9 billion gallons.
The $0.54 per gallon import tariff for ethanol benefits the U.S. ethanol industry by protecting
U.S. ethanol from lower-cost imports and also keeps imported ethanol from benefitting from the
blender tax credit when it is blended into gasoline in the United States. The tariff was set to expire
at the end of 2008 but was extended to the end of 2010 by the farm bill (P.L. 110-246, Section
15333).
On December 17, 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 (H.R. 4853) extended both the ethanol blender tax credit and the import
tariff for ethanol. Both were set to expire at the end of 2010 under the 2008 farm bill. Section 708
of H.R. 4853 extends both provisions at the current rate of $0.45 per gallon for the ethanol
blender tax credit and $0.54 per gallon for the ethanol import tariff until the end of 2011. The
tariff continues to exceed the blender tax credit by nine cents, thereby more than offsetting the
benefit of the blender tax credit.
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 USDA, the EPA, the Department of Energy (DOE), and the National
Academy of Sciences) and the Biofuels Infrastructure Study by USDA, DOE, EPA, and the
Department of Transportation (DOT). The Biomass Crop Assistance Program (BCAP, Section
9001) requires an assessment of the economic impacts of expanded cellulosic biomass production
on local economies and infrastructures. Likewise, the Biomass Research and Development
Program (Section 9001) requires a report on the economic impacts of rural economies of
biorefinery expansion and conversion by USDA.

9 U.S. Environmental Protection Agency, “Regulation of Fuels and Fuel Additives: 2011 Renewable Fuel Standards;
Final Rule,” Federal Register, December 9, 2010. For more information, see CRS Report R41106, Meeting the
Renewable Fuel Standard (RFS) Mandate for Cellulosic Biofuels: Questions and Answers.
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Renewable Energy Programs in the 2008 Farm Bill

Funding for Energy Programs
Appendix B illustrates mandatory and discretionary spending levels for renewable energy
programs authorized in the 2008 farm bill. Mandatory funding is through USDA’s Commodity
Credit Corporation (CCC).10 Programs identified as receiving mandatory funds are funded at
these levels unless Congress limits funding to a lower amount through the appropriations or
legislative process. Discretionary programs are funded each year through the annual
appropriations process.
Title IX authorizes $1.1 billion in mandatory funding for FY2008 through FY2012, compared
with $800 million in the 2002 farm bill (FY2002-FY2007). Mandatory authorization in the 2008
farm bill includes $320 million 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 1
provides a list of provisions in the 2008 farm bill’s energy title, and selected energy programs in
the research title, for FY2010 through FY2012, along with their funding levels (as requested by
the President, authorized levels in the 2008 farm bill, and budget authority provided by Congress)
where available.

10 The CCC is the funding mechanism for the mandatory payments that are administered by various agencies of USDA,
including all of the farm commodity price and income support programs and selected conservation programs.
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Table 1. 2008 Farm Bill Energy Funding by Provision, FY2009 to FY2011
($ in millions)



FY2010
FY2011
FY2012
FB
Sectiona
Program
Funding Type Pres Reqb FB
Authc Budget
Auth Pres
Reqb FB
Authc Budget
Auth Pres
Reqb
Authc Budget
Auth
Sec.
Nutrient Management
Discretionary 0
SSAN
0 0
SSAN NA 0
SSAN NA
7205
Research and
Extension Initiative
Sec.
Bioenergy Feedstock
Discretionary 0
50
0 0
50 NA 0
50 NA
7207
and Energy Efficiency
Research and
Extension Initiative
Sec.
Sun Grant Program
Discretionary
0
75
2
0
75
NA
0
75
NA
7526
Sec.
Federal Biobased
Mandatory
— 2
2 — 2 NA — 2 NA
9002
Markets Program
Sec.
Federal Biobased
Discretionary 0 2
0 0 2 NA 0 2 NA
9002
Markets Program
Sec.
Biorefinery Assistance
Mandatory
—
245
245
TRAUE —
TRAUE NA —
TRAUE NA
9003
TRAUE
Sec.
Biorefinery
Assistance
Discretionary 17
150 0
17
150 NA 0
150 NA
9003
Sec.
Repowering
Assistance
Mandatory
—
TRAUE
TRAUE —
TRAUE NA —
TRAUE NA
9004
Sec.
Repowering
Assistance
Discretionary 0
15 15 0
15 NA 0
15 NA
9004
Sec.
Bioenergy Program for Mandatory —
55
55 TRAUE
—
85
NA —
105 NA
9005
Advanced Biofuels
TRAUE
TRAUE
TRAUE
Sec.
Bioenergy Program for Discretionary 0
25
0 0
25 NA 0
25 NA
9005
Advanced Biofuels
Sec.
Biodiesel Education
Mandatory —
1 1
—
1 NA 0
1 NA
9006
Program
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FY2010
FY2011
FY2012
FB
Sectiona
Program
Funding Type Pres Reqb FB
Authc Budget
Auth Pres
Reqb FB
Authc Budget
Auth Pres
Reqb
Authc Budget
Auth
Sec.
Rural Energy for
Mandatory —
60
60 TRAUE
—
70
NA — 70 NA
9007
America Program
TRAUE
TRAUE
TRAUE
(REAP)
Sec.
Rural Energy for
Discretionary 68 25
40 40 25 NA 37 25 NA
9007
America Program
(REAP)
Sec.
Biomass Research and
Mandatory 0
28
28 TRAUE
—
30
NA — 40 NA
9008
Development
TRAUE
TRAUE
TRAUE
Sec.
Biomass Research and
Discretionary 0
35
0 0
35
0 0
35 NA
9008
Development
Sec.
Rural Energy Self-
Discretionary 0 5
0 0 5
0 0
50 NA
9009
Sufficiency Initiative
Sec.
Feedstock Flexibility
Mandatory —
SSAN 0d —
SSAN NA —
SSAN NA
9010
Program for Bioenergy
Producers
Sec.
Biomass Crop
Mandatory —
SSAN
552e —
SSAN 432e 70f SSAN
NA
9011
Assistance Program
(BCAP)
Sec.
Forest Biomass for
Discretionary 0
15 0
15g 15
0 0 15
NA
9012
Energy
Sec.
Community Wood
Discretionary 0
5 0
5g 5
0 0 5 NA
9013
Energy Program
Source: Compiled by CRS using the Food, Conservation, and Energy Act of 2008 (P.L. 110-246) and annual appropriation acts.
Notes: “Pres. Req.” = Presidential budget request; “FB Auth.” = 2008 farm bill authorized level; Budget Auth = Budget authority; “SSAN” = Such sums as necessary;
“TRAUE” = to remain available until expended; and “NA” = not available.
a. Section 9001 of the 2008 farm bill (P.L. 110-246) amends title IX of the 2002 farm bill (P.L. 107-171). Sections 9001 through 9013 of the table are the amended section
numbers.
b. The President’s budget request typical y does not include mandatory programs unless a reduction is requested. A “—” indicates that neither a reduction or increase
was requested by the Administration for the mandatory program.
c. Many Title IX programs include funding that is authorized “to remain available until expended” (TRAUE), therefore carryover could exist from previous years if funds
are unobligated.
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d. This program is “triggered” when a sugar surplus exists. According to USDA, the Commodity Credit Corporation (CCC) does not have a surplus inventory of sugar,
therefore this program has not been implemented.
e. The Supplemental Appropriations Act of 2010 (P.L. 111-212) limits mandatory spending on BCAP by al owing no more than $552 mil ion in FY2010 and $432 million in
FY2011. For more on these types of changes in mandatory program spending, see CRS Report R41245, Reductions in Mandatory Agriculture Program Spending. For more
information on the 2010 supplemental, see CRS Report R41255, FY2010 Supplemental Appropriations for Agriculture.
f.
The President’s FY2012 budget proposes to limit funding for the Collection, Harvest, Storage, and Transportation portion of the BCAP program to $70 million. The
remaining annual and establishment payment portion of BCAP would remain at SSAN. For more information on payment rates and terms, see CRS Report R41296,
Biomass Crop Assistance Program (BCAP): Status and Issues.
g. The President’s FY2011 budget proposed to fund both the Forest Biomass for Energy Program (section 9012) and the Community Wood Energy Program (section
9013) using funds from the Hazardous Fuels program within the Forest Service.

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Appendix A. Comparison of the Enacted 2008 Farm
Bill (P.L. 110-246) with Previous Law
2002 Farm Bill (FSRIA, P.L. 107-171)
Enacted Farm Bill
or Other Law (as indicated)
(P.L. 110-246)
Title VII: Agriculture Research and Extension

Nutrient Management Research and Extension Initiative
Section 1673(h) of the Food, Agriculture, Conservation, and
Extends the nutrient Management research and extension
Trade Act of 1990 (P.L. 101-624) authorizes matching grants
initiative through FY2012 and adds dairy cattle waste as a type of
under the farm bill nutrient management research and
waste to be studied. Also adds an amendment to include the
extension initiative for finding innovative methods and
production of renewable energy from animal waste as an eligible
technologies for economic use or disposal of animal waste.
activity to receive grants under this section. Authorizes such
Extendes through 2007 in section 7120 of the 2002 farm bill.
sums as necessary annual y for FY2007-FY2012. [Sec. 7205]
Such sums as necessary are appropriated annually for
FY1999-FY2007. [7 U.S.C. 5925a]
Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension Initiative
No provision.
Establishes the Agricultural Bioenergy Feedstock and Energy
Efficiency Research and Extension Initiative, a program to award
competitive matching (up to 50%) grants for projects with a
focus on supporting on-farm biomass crop research and the
dissemination of results to enhance the production of biomass
energy crops and the integration of such production with the
production of bioenergy. Discretionary appropriations of $50
million annually are authorized for FY2008-FY2012. [Sec. 7207]
Sun Grant Program
Section 9011. This provision was added subsequent to the
Reauthorizes the Sun Grant Program through FY2012 and
2002 farm bill under the Sun Grant Research Initiative Act of
establishes a 6th regional center—Western Insular Pacific Sub-
2003. Establishes 5 national Sun Grant research centers based Center—at the University of Hawaii. Authorizes discretionary
at land-grant universities, each covering a different national
funding of $75 million annually for FY2008-FY2012. [Sec. 7526]
region, to enhance coordination and col aboration between
USDA, DOE, and land-grant universities in the development,
distribution, and implementation of biobased energy
technologies. Competitive grants are available to land-grant
schools within each region. Authorized appropriations of $25
million in FY2005, $50 million in FY2006, and $75 million for
each of FY2007 through FY2010 for total discretionary
funding of $375 million during FY2005-FY2010. [7 U.S.C.
8109]
Title IX: Energy
Definitions
Sec. 9001. Defines Administrator, Biomass, Biobased Product, New section 9001 of FSRIA. Adds several definitions including
Procuring Agency, Renewable Energy, Rural Small Business,
“Advanced Biofuels,” which excludes any fuel derived from corn
and Secretary. [7 U.S.C. 8101]
starch, but includes ethanol 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 definitions are biobased product; biomass conversion
facility; biorefinery; intermediate ingredient or feedstock;
renewable biomass; and renewable energy. Adopts the Senate
definitions with amendments. Advanced biofuels include aviation,
jet, and heating fuels made from cel ulosic biomass. [Sec. 9001]
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2002 Farm Bill (FSRIA, P.L. 107-171)
Enacted Farm Bill
or Other Law (as indicated)
(P.L. 110-246)
Biobased Markets Program
Sec. 9002. Requires federal agencies to purchase biobased
New section 9002 of FSRIA. Renames program as the Biobased
products under certain conditions and authorize a voluntary
Markets Program. Requires procuring agencies to establish a
biobased labeling program. USDA regulations define biobased
program and specifications for procuring biobased products
products, identify biobased product categories, and specify
(excluding motor vehicle fuels, heating oil, or electricity).
the criteria for qualifying those products for preferred
Establishes the voluntary labeling program: “USDA Certified
procurement. Mandatory Commodity Credit Corporation
Biobased Product.” Requires USDA to establish a national
(CCC) funding of $1 million is authorized for each of FY2002
registry of biobased testing centers and a report on
through FY2007 for testing biobased products. [7 U.S.C.
implementation. Mandatory CCC funding of $1 million in 2008,
8101]
and $2 million annually for FY2009-FY2012. Discretionary
funding of $2 million annually is authorized for FY2009-FY2012.
[Sec. 9001]
Biorefinery Assistance
No provision.
New section 9003 of FSRIA. Biorefinery 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 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-
FY2012. [Sec. 9001]
Repowering Assistance
Section 9003. Establishes a grant program to help finance the
New section 9004 of FSRIA. Provides payments to encourage
cost of developing and constructing biorefineries and biofuel
biorefineries in existence on the date of enactment to convert
production plants to carry out projects to demonstrate the
from fossil fuel to renewable energy power sources. Encourages
commercial viability of converting biomass to fuels or
new production of energy for refineries from renewable
chemicals. Mandatory funding is not authorized and
biomass. Mandatory funding of $35 million for FY2009, to
discretionary funding has not been appropriated for the
remain available until expended. Discretionary funding of $15
program. Therefore, no implementation regulations have
million annually for FY2009-FY2012 is authorized. [Sec. 9001]
been developed. [7 U.S.C. 8103]
Energy Program for Advanced Biofuels
Section 9010. Original y created by a 1999 Executive Order
New section 9005 of FSRIA. Establishes the Bioenergy Program
during the Clinton Administration, the bioenergy program
for Advanced Biofuels to encourage production of advanced
provides mandatory CCC incentive payments to biofuels
biofuels. Not more than 5% of the funds can go to facilities with
producers based on year-to-year increases in the quantity of
total refining capacity exceeding 150 million gallons per year.
biofuel produced. Mandatory CCC funding of $150 million is
Producers of advanced biofuels contracts with USDA to receive
available for each of FY2002 through FY2006. No funding is
payments based on the quantity and duration of production of
authorized for FY2007. [7 U.S.C. 8108]
advanced biofuels, the net renewable energy content of the
biofuel, and other factors. Payments limited to ensure equitable
distribution. Mandatory funding of $55 million for 2009, $55
million for FY2010, $85 million for FY2011, and $105 million for
FY2012. Discretionary funding of $25 million annually is
authorized for FY2009-FY2012. [Sec. 9001]
Biodiesel Fuel Education Program
Section 9004. Administered by USDA’s Cooperative State
New section 9006 of FSRIA. Extends the Biodiesel Fuel
Research, Education, and Extension Service, the program
Education Program through 2012. Mandatory CCC funds of $1
awards competitive grants to nonprofit organizations that
million are provided annually for FY2008-FY2012. [Sec. 9001]
educate governmental and private entities operating vehicle
fleets, and educates the public about the benefits of biodiesel
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Renewable Energy Programs in the 2008 Farm Bill

2002 Farm Bill (FSRIA, P.L. 107-171)
Enacted Farm Bill
or Other Law (as indicated)
(P.L. 110-246)
fuel use. Mandatory CCC funding of $1 million is authorized
for each of FY2003 through FY2007. [7 U.S.C. 8104]
Energy Audit and Renewable Energy Development Program
Section 9005. A competitive grant program for eligible
See new section 9007 of FSRIA below.
entities to provide energy audits and technical assistance to
agricultural producers and rural smal businesses to assist
them in becoming more energy efficient and in using
renewable energy technology and resources. Authorized
appropriations of 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 Energy Efficiency
New section 9007 of FSRIA. Renamed as the Rural Energy for
Program (Section 9006), administered by USDA’s Rural
America Program. Provides grants and loan guarantees to state
Development Agency, authorizes direct loans, loan
governments, tribal, or local governments, land-grant
guarantees, and grants to farmers, ranchers, and rural small
institutions, rural electric cooperatives or utilities to provide
businesses to purchase and instal renewable energy systems
energy audits and renewable energy assistance, and financial
and to make energy efficiency improvements. Grant funds
assistance for energy efficiency improvements and renewable
may be used to pay up to 25% of project costs; combined
energy systems. Grants up to 25% of cost are provided. Loan
grants and loans or loan guarantees may fund up to 50% of
guarantees up to $25 million. Combined amount of grant and
project cost. Eligible projects include those that derive energy guaranteed loans limited to 75% of cost. 20% of funds made
from wind, solar, biomass, or geothermal sources. Projects
available in this section to be reserved for grants of $20,000 or
using energy from those sources to produce hydrogen from
less until the end of the fiscal year. Mandatory CCC funds of $55
biomass or water are also eligible. Mandatory CCC funding of million in FY2009, $60 million in FY2010, $70 million in FY2011,
$23 million is available for each of FY2003 through FY2007.
and $70 million in FY2012. Discretionary funding of $25 million
Unspent money lapses at the end of each year. [7 U.S.C.
annual y is authorized to be appropriated for FY2009-FY2012.
8106]
[Sec. 9001]
Biomass Research and Development Program
This program—created originally under the Biomass Research New section 9008 of FSRIA. Moves the Biomass Research and
and Development Act of 2000 (BRDA, P.L. 106-224)—
Development Act of 2000 in statute to Title IX of FSRIA of
provides competitive funding for research, development, and
2002. Defines biobased product. Expands advisory committee.
demonstration projects on biofuels and bio-based chemicals
New technical areas for grants include feedstock development,
and products, under the Biomass Research and Development
biofuels and biobased products development, and biofuels
Initiative, administered jointly by USDA and DOE. Creates
development analysis with a minimum of 15% of funding going to
Biomass research and Development Board to coordinate
each area. Minimum cost-share requirement for demonstration
government activities in biomass research, and the Biomass
projects increased to 50% and research projects to 20%.
Research and Development Technical Advisory Committee
Provides for coordination of biomass research and development,
to advise on proposal direction and evaluation. Authorizes
including life cycle analysis of biofuels, between USDA and DOE.
mandatory CCC funding of $5 million in FY2002 and $14
Authorizes mandatory funding of $20 million for FY2009, $28
million for each of FY2003 through FY2007 (available until
million for FY2010, $30 million for FY2011, and $40 million for
expended). Additional appropriation authority of $200 million FY2012. Discretionary funding of $35 million is authorized to be
for each of FY2006 through FY2015. [7 U.S.C. 8101]
appropriated annual y for FY2009-FY2012. [Sec. 9001]
Rural Energy Self-Sufficiency Initiative
No provision.
New section 9009 of FSRIA. Establishes the Rural Energy Self-
Sufficiency Initiative to assist rural communities with community-
wide energy systems that reduce conventional energy use and
increase the use of energy from renewable sources. Grants are
made available to assess energy use in a rural community,
evaluate ideas for reducing energy use, and develop and install
integrated renewable energy systems. Grants are not to exceed
50% of the total cost of the activity. Appropriations of $5 million
annual y are authorized for FY2009-FY2012. [Sec. 9001]
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Renewable Energy Programs in the 2008 Farm Bill

2002 Farm Bill (FSRIA, P.L. 107-171)
Enacted Farm Bill
or Other Law (as indicated)
(P.L. 110-246)
Feedstock Flexibility Program
No provision.
New section 9010 of FSRIA. Requires that USDA establish (in
FY2008) and administer a sugar-for-ethanol program using sugar
intended for food use but deemed to be in surplus. 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 is
authorized to carry out the program. [Sec. 9001]
Biomass Crop Assistance Program
No provision.
New section 9011 of FSRIA. Establishes the Biomass Crop
Assistance Program (BCAP) to provide producers committing to
biomass production or a biomass conversion facility with
contracts, which will enable producers in a BCAP project area
to receive financial assistance for crop establishment costs and
annual payments for biomass production. Producers must be
within an economically practical distance from a biomass facility
and adhere to resource conservation requirements. Cost-share
payments cover costs of establishing crops and for col ection,
harvest, storage, and transportation to a biomass conversion
facility. Annual payments authorized to producers to support
biomass production. A report is required no later than 4 years
after enactment. Mandatory CCC funds of such sums as
necessary are made available for each of FY2008-F2012. [Sec.
9001]
Forest Biomass for Energy Program
No provision.
New section 9012 of FSRIA. Forest Service competitive research
and development program to encourage use of forest biomass
for energy. Priority is given to projects that use low-value forest
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 annual y for FY2009-FY2012.
[Sec. 9001]
Community Wood Energy Program
No provision.
New section 9013 of FSRIA. Establishes Community Wood
Energy Program to provide matching grants to state and local
governments to acquire community wood energy systems for
public buildings. Participants must also implement a community
wood energy plan to meet energy needs with reduced carbon
intensity through conservation, reduced costs, utilizing low-value
wood sources, and increased awareness of energy consumption.
Authorizes discretionary funding of $5 million annually for
FY2009-2012. [Sec. 9001]
Biofuels Infrastructure Study
No provision.
Requests USDA, DOE, EPA, and DOT to jointly report on the
infrastructure needs, requirements, and development
approaches for expanding the domestic production, transport,
and distribution of biofuels. Mandatory funding of $1 million for
FY2008, and $2 million annually for each of FY2009-FY2012.
Discretionary appropriations of $2 million annually are
authorized for FY2009-FY2012. [Sec. 9002]
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Renewable Energy Programs in the 2008 Farm Bill

2002 Farm Bill (FSRIA, P.L. 107-171)
Enacted Farm Bill
or Other Law (as indicated)
(P.L. 110-246)
Renewable Fertilizer Study
No provision.
Requires a report within 1 year of appropriations on the
production of fertilizer from renewable energy sources in rural
areas. Report must identify challenges to commercialization of
rural fertilizer production, processes and technologies and the
potential impacts of renewable fertilizer on fossil fuel use and
the environment. Appropriation of $1 million is authorized for
FY2009. [Sec. 9003]
Title XI: Livestock
Study on Bioenergy Operations
No provision.
Requires a USDA study on the use of animal manure as a
fertilizer; the impact of limitations placed on the use of animal
manure on consumers and agricultural operations; 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 Provisions
Credit for Production of Cellulosic Biofuel
Under the American Jobs Creation Act (AJCA) of 2004, (P.L.
Provides a fourth tax credit under 26 U.S.C. 40, the Cel ulosic
108-357), cel ulosic ethanol, once developed, would receive
Biofuel Producer Credit. The credit is $1.01 per gallon less the
the current tax credit of $0.51 per gallon available to any
amount of smal -producer ethanol credit claimed and the alcohol
ethanol blended into gasoline as provided through Dec. 31,
mixture credit claimed for ethanol. [Sec. 15321]
2010. [26 U.S.C. 40]
Comprehensive Study of Biofuels
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, government program
impacts, and the relative impacts of different types of biofuels.
[Sec. 15322]
Alcohol Fuel: Modification of Alcohol Credit
Any ethanol blended into gasoline is eligible for a tax credit of Reduces the ethanol tax credit of $0.51 per gallon to $0.45 per
$0.51 per gallon as provided under current law (AJCA of
gallon beginning in the first calendar year after the year in which
2004, P.L. 108-357) through Dec. 31, 2010. [26 U.S.C. 40]
7.5 billion gallons of ethanol is produced. [Sec 15331]
Alcohol Fuel: Calculation of Volume of Alcohol for Fuel Credits
Under current law (AJCA of 2004, P.L. 108-357) the volume
Reduces the permissible volume of denaturant to 2% for
of bio-alcohol counted as fuel eligible for the tax credit may
purposes of calculating the volume of alcohol eligible for the tax
include up to 5% of the volume as denaturant. [26 U.S.C. 40]
credit. [Sec. 15332]
Alcohol Fuel: Ethanol Tariff Extension
Under current law (Heading 9901.00.50 of the Harmonized
Extends the tariff of $0.54 per gal on for imported ethanol or
Tariff Schedule (HTS)), imports of ethyl alcohol are subject to mixtures of ethanol (headings 9901.00.50 and 9901.00.52 of the
a duty of 14.27¢ per liter ($0.54 per gal on) and a duty of
HTS) through Dec. 31, 2010. [Sec 15333]
5.99¢ per liter (Heading 9901.00.52; HTS) on imports of ethyl
tertiary-butyl ether through Dec. 31, 2008. [19 U.S.C.

Chapter 18]
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Renewable Energy Programs in the 2008 Farm Bill

2002 Farm Bill (FSRIA, P.L. 107-171)
Enacted Farm Bill
or Other Law (as indicated)
(P.L. 110-246)
Alcohol Fuel: Limitations on, and Reductions of, Duty Drawback on Certain Imported Ethanol
Section 1313 of the Tariff Act of 1930, as amended, permits
Eliminates the ability to obtain a refund of duty imposed under
the refund of duty if the duty-paid good is re-exported or
HTS 9901.00.50, when imported ethanol is re-exported by
used to make a good that is exported. A person who
substituting either ethanol not subject to the duty, or another
manufactures gasoline with ethanol subject to the duty
petroleum product (e.g., jet fuel) that is exported to obtain the
imposed under HTS 9901.00.50 (see previous description),
refund. [Sec. 15334]
can export jet fuel (does not contain ethanol) and still obtain
a refund of the duty paid. [19 U.S.C. Chapter 18]


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Appendix B. Authorized Funding for Energy Provisions
Table B-1. 2008 Farm Bill (P.L. 110-246): Authorized Funding for Energy Provisions, FY2008-FY2012
($ millions)
Total:
2008 Farm
FY2008-
Bill Section Provision Name
Funding Type
FY2008
FY2009
FY2010
FY2011
FY2012
FY2012
Title VII








Research
Sec. 7205
Nutrient Management Research and
Discretionary SSAN
SSAN SSAN SSAN SSAN SSAN
Extension Initiative
Sec. 7207
Bioenergy Feedstock and Energy Efficiency
Discretionary 50
50 50 50 50
250
Research and Extension Initiative
Sec. 7526
Sun Grant Program
Discretionary
75
75
75
75
75
375
Title IX Energy







Sec. 9002a
Biobased
Markets
Program
Mandatory
1
2 2 2 2 9

Discretionary 0
2 2 2 2 8
Sec. 9003a Biorefinery
Assistance
Mandatory
0
75
245
0
0
320


Discretionary 0
150 150 150 150 600
Sec. 9004a Repowering
Assistance
Mandatory
0
35
0
0
0
35

Discretionary 0
15 15 15 15 60
Sec. 9005a
Bioenergy Program for Advanced Biofuels
Mandatory
0
55
55
85
105
300

Discretionary 0
25
25
25 25
100
Sec. 9006a
Biodiesel Fuel Education Program
Mandatory
1
1
1
1
1
5
Sec. 9007a
Rural Energy for America Program
Mandatory
0
55
60
70
70
255

Discretionary 0
25
25
25 25
100
Sec. 9008a
Biomass Research and Development Act
Mandatory
0
20
28
30
40
118

Discretionary 0
35
35
35 35
140
Sec. 9009a
Rural Energy Self-Sufficiency Initiative
Discretionary
0
5
5
5
5
20
CRS-15

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Total:
2008 Farm
FY2008-
Bill Section Provision Name
Funding Type
FY2008
FY2009
FY2010
FY2011
FY2012
FY2012
Sec. 9010a
Feedstock Flexibility Program for
Mandatory SSAN
SSAN
SSAN
SSAN
SSAN

SSAN

Bioenergy Producers
Sec. 9011a
Biomass Crop Assistance Program
Mandatory
SSAN
SSAN
SSANb SSANb SSAN

SSAN

Sec. 9012a
Forest Biomass for Energy
Discretionary
0
15
15
15
15
60
Sec. 9013a
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
$125
$403
$402
$402
$402
$1,734

Total Mandatory Funding
Mandatory
$2
$243
$391
$188
$218
$1,042
Source: P.L. 110-246 (Food, Conservation, and Energy Act of 2008).
Notes: “SSAN” = Such sums as necessary.
a. Section 9001 of the 2008 farm bill (P.L. 110-246) amends title IX of the 2002 farm bill (P.L. 107-171). Sections 9001 through 9013 of the table are the amended section
numbers.
b. The authority for funding under BCAP was reduced to $552 million in FY2010 and $432 million in FY2011 under the Supplemental Appropriations Act of 2010 (P.L.
111-212.

CRS-16

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Renewable Energy Programs in the 2008 Farm Bill



Author Contact Information

Megan Stubbs

Analyst in Agricultural Conservation and Natural
Resources Policy
mstubbs@crs.loc.gov, 7-8707


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