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Updated March 6, 2019
Overview of Bioenergy Programs in the 2018 Farm Bill
Congress has long encouraged the production of renewable
biofuels (i.e., not derived from corn starch). One payment
energy and products derived from agriculture-based
type is based on advanced biofuel production, and a second
feedstock in pursuit of various policy goals. These goals
is for production increases. No more than 5% of available
include U.S. energy security, greenhouse gas emission
funds provided each year may be used for facilities that
reduction, and increased demand for U.S. farm products.
exceed an annual capacity of 150 million gallons.
Since the late 1970s, Congress has employed a wide range
Biodiesel Fuel Education Program. Provides grants to
of policy mechanisms and incentives—including the farm
nonprofit organizations and institutions of higher education
bill—to expand the production and use of agriculture-based
that educate government and private entities that operate
renewable energy (e.g., tax incentives to blend biofuels
fleet vehicles; the public; and others about the benefits of
with gasoline, loan guarantees to construct production
biodiesel.
facilities, and a consumption mandate for biofuels).
Rural Energy for America Program (REAP). Provides
The multiple energy programs authorized and funded in the
eligible entities (e.g., state, tribal, or local governments;
2018 farm bill build upon programs established in the 2002
land-grant colleges and universities; rural electric
farm bill—the first farm bill with an energy title authorizing
cooperatives; and public power entities) with grants for
several agriculture-based bioenergy programs (7 U.S.C.
conducting energy audits and conducting renewable energy
8101 et seq.). Since 2002, the energy title in succeeding
development assistance. Also provides financial assistance
farm bills mostly has reauthorized—and in some cases
(i.e., loan guarantees and grants) for energy efficiency
modified—bioenergy programs. For instance, with a few
improvement projects and renewable energy systems
exceptions, Title IX of the 2018 farm bill (P.L. 115-334)
(RESs). RESs include biofuels, and power generation from
reauthorized the major bioenergy programs from the 2014
wind, solar, biomass, geothermal, ocean, and some
farm bill (P.L. 113-79), while providing many of them with
hydropower sources. RESs exclude retail energy dispensers
mandatory funding (i.e., not dependent on annual
(e.g., blender pumps). A cap of 15% of available funds per
appropriations) for the five-year life of the bill, FY2019-
year is imposed on loan guarantees to agricultural producers
FY2023. The mandatory funding for bioenergy programs
for energy efficiency equipment.
provided in the 2018 farm bill is less than what was
provided in the 2014 farm bill. The 2018 farm bill repeals
Rural Energy Savings Program (RESP). Provides loans
one program and one initiative—the Repowering
to rural families and small businesses to achieve cost
Assistance Program and the Rural Energy Self-Sufficiency
savings to implement durable cost-effective energy
Initiative. Also, the 2018 farm bill establishes a new
efficiency measures to include on- or off-grid renewable
program for carbon utilization and biogas education.
energy or energy storage systems.
Because the farm bill provides mandatory funding and
Biomass Research and Development Initiative (BRDI).
authorizes discretionary funding for many of the energy
Offers competitive funding through grants, contracts, and
title programs, there is typically an annual discussion about
financial assistance for research, development, and
how much discretionary funding should be appropriated.
demonstration of technologies and processes for biofuels
A brief description of the farm bill bioenergy programs
and biobased products. Eligibility is limited to institutions
follows. Table 1 identifies the implementing agency by
of higher learning, national laboratories, federal or state
program and provides authorized funding levels.
research agencies, and private and nonprofit entities.
Biobased Markets Program. Referred to as the
Feedstock Flexibility Program (FFP). Designed to help
BioPreferred Program at the U.S. Department of
stabilize sugar prices so as to avoid costly forfeitures under
Agriculture (USDA). Promotes biobased products through
the sugar loan program. Under FFP, USDA’s Commodity
two initiatives: (1) mandatory purchasing for federal
Credit Corporation (CCC) may purchase sugar from
agencies and their contractors and (2) a voluntary labeling
processors for resale to fuel ethanol producers.
initiative for biobased products. Products that meet the
Biomass Crop Assistance Program (BCAP). Makes
minimum biobased content criteria may display the USDA
payments to owners and operators of agricultural land and
Certified Biobased Product label.
nonindustrial private forest land for establishing, producing,
Biorefinery, Renewable Chemical, and Biobased
and delivering biomass feedstock to eligible processing
Product Manufacturing Assistance Program. Seeks to
plants. Payments include (1) within BCAP project areas,
facilitate the development of new and emerging
establishment payments for perennial crops and annual
technologies for advanced biofuels; renewable chemicals;
payments of up to five years for non-woody crops and 15
and biobased product manufacturing by providing loan
years for woody biomass crops; and (2) matching payments
guarantees for constructing or retrofitting commercial-scale
for up to two years for crop collection, harvest, storage, and
biorefineries.
transportation of qualified biomass (regardless of location).
Bioenergy Program for Advanced Biofuels. Provides
Community Wood Energy and Wood Innovation
payments to producers to support and expand advanced
Program. Provides matching grants for the installation of
https://crsreports.congress.gov
Overview of Bioenergy Programs in the 2018 Farm Bill
community wood energy systems or building an innovative
Carbon Utilization and Biogas Education Program.
wood product facility. Grants are capped at 35% of the
Provides competitive grants to eligible entities to (1)
capital cost.
educate the public about the economic benefits and
Sun Grant Program. Provides grants to regional centers to
emissions benefits of permanent carbon sequestration and
be used for integrated, multistate research, extension, and
utilization and (2) educate agricultural producers and other
education programs on technology development and
stakeholders about opportunities for the collection of
technology implementation and to address bioenergy,
organic waste from multiple sources to be used in a single
biomass, or bioproducts research priorities.
biogas system.
Table 1. 2018 Farm Bill Energy Programs: FY2019 Authorized Funding
FY2019 Mandatory Funding (M)
and Authorization of
FY2019
Title IX Energy
Implementing
U.S. Code
Discretionary Appropriations (D)
Appropriations
Program Name
Agency
Citation
(millions of dollars)
(millions of dollars)
Biobased Markets Program
USDA RD
7 U.S.C. 8102
M - $3
M - $3
(i.e., BioPreferred Program)
D - $3
D - $0
Biorefinery, Renewable
USDA RD
7 U.S.C. 8103
M - $50
M - $50
Chemical, and Biobased
D - $75
D - $0
Product Manufacturing
Assistance Program
Bioenergy Program for
USDA RD
7 U.S.C. 8105
M - $7
M - $7
Advanced Biofuels
D - $20
D - $0
Biodiesel Fuel Education
USDA NIFA and 7 U.S.C. 8106
M - $0
M - $0
Program
USDA OEPNU
D - $2
D - $0
Rural Energy for America
USDA RD
7 U.S.C. 8107
M - $50
M - $50
Program
D - $20
D - $0.335
Rural Energy Savings
USDA RD
7 U.S.C. 8107a
M - $0
M - $0
Program
D - $75
D - $10
Biomass Research and
USDA NIFA and 7 U.S.C. 8108
M - $0
M - $0
Development Initiative
DOE
D - $20
D - $0
Feedstock Flexibility
USDA FSA
7 U.S.C. 8110
M - SSAN
M - SSAN
Program
D - $0
D - $0
Biomass Crop Assistance
USDA FSA
7 U.S.C. 8111
M - $0
M – $0
Program
D - $25
D - $0
Community Wood Energy
USDA FS
7 U.S.C. 8113
M - $0
M - $0
and Wood Innovation
D - $0
Program
D - $25
Sun Grant Program
USDA NIFA
7 U.S.C. 8114
M - $0
M - $0
D - $75
D - $3
Carbon Utilization and
TBD
TBD
M - $0
M - $0
Biogas Education Program
D - $2
D - $0
Source: P.L. 115-334, H.Rept. 116-9, P.L. 116-6, appropriation committee reports, and CRS publications.
Notes: D=discretionary funding; FS=Forest Service; FSA=Farm Service Agency; M=mandatory funding; NIFA=National
Institute of Food and Agriculture; OEPNU=Office of Energy Policy and New Uses; RD=Rural Development; SSAN=such
sums as necessary; TBD=To be determined. The mandatory funding is subject to sequestration, which is unspecified in the
table.
IF10288
Kelsi Bracmort, Specialist in Natural Resources and
Energy Policy
https://crsreports.congress.gov
Overview of Bioenergy Programs in the 2018 Farm Bill
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