link to page 2
Updated August 17, 2021
Overview of the 2018 Farm Bill Energy Title Programs
Congress has long encouraged the production of renewable
payments to fuel producers to support and expand
energy and products derived from agriculture-based
production of advanced biofuels (i.e., not derived from corn
feedstock in pursuit of various policy goals. These goals
starch). One payment type is for the actual quantity
include U.S. energy security, greenhouse gas emission
produced, and a second is for production increases. No
reduction, and increased demand for U.S. farm products.
more than 5% of available funds provided each year may be
Since the late 1970s, Congress has employed a wide range
used for facilities that exceed an annual refining capacity of
of policy mechanisms and incentives—including the farm
150 million gallons.
bill—to expand the production and use of agriculture-based
Biodiesel Fuel Education Program. Provides grants to
renewable energy (e.g., tax incentives to blend biofuels
nonprofit organizations and institutions of higher education
with gasoline, loan guarantees to construct production
that educate government and private vehicle fleet operators,
facilities, and a consumption mandate for biofuels).
the public, and others about the benefits of biodiesel.
The bioenergy programs authorized and funded under the
Rural Energy for America Program (REAP). Provides
energy title of the 2018 farm bill (P.L. 115-334, Title IX)
eligible entities (e.g., state, tribal, or local governments;
build upon programs established in the 2002 farm bill (P.L.
land-grant colleges and universities; rural electric
107-171)—the first farm bill with an energy title
cooperatives; and public power entities) with grants for
authorizing several agriculture-based programs (7 U.S.C.
energy audits and renewable energy development
§8101 et seq.). Since 2002, the energy title in succeeding
assistance. REAP also provides loan guarantees and grants
farm bills mostly has reauthorized—and in some cases
for energy efficiency improvements and renewable energy
modified—the programs. With a few exceptions, Title IX of
systems (RESs). RESs include biofuels, and power
the 2018 farm bill reauthorized the major bioenergy
generation from wind, solar, biomass, geothermal, ocean,
programs from the 2014 farm bill (P.L. 113-79), while
and some hydropower sources. RESs exclude retail energy
providing several of them with mandatory funding (i.e., not
dispensers (e.g., blender pumps).
dependent on discretionary appropriations) for the five-year
period from FY2019 to FY2023. Mandatory funding for the
Rural Energy Savings Program (RESP). Provides loans
energy title programs in the 2018 farm bill is less than what
to rural families and small businesses to achieve cost
was provided in the 2014 farm bill. Because the farm bill
savings to implement durable cost-effective energy
provided mandatory funding and authorized discretionary
efficiency measures to include on- or off-grid renewable
funding for many of the energy title programs, there is
energy or energy storage systems.
typically an annual discussion about how much
Biomass Research and Development (BR&D). Supports
discretionary funding should be appropriated. The 2018
cooperation and coordination between the USDA and the
farm bill also established a new program for carbon
U.S. Department of Energy (DOE) for biomass research
utilization and biogas education, and repealed two
and development. The BR&D Initiative offers competitive
authorities—the Repowering Assistance Program and the
funding through grants, contracts, and financial assistance
Rural Energy Self-Sufficiency Initiative.
for research, development, and demonstration for biofuels
A description of the farm bill energy title programs follows.
and biobased products. Eligibility is limited to institutions
Table 1 identifies the implementing agency by program and
of higher learning, national laboratories, federal or state
FY2021 authorized and appropriated 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. Promotes biobased products through
stabilize sugar prices so as to avoid forfeitures under the
two initiatives: (1) mandatory purchasing by federal
sugar loan program. Under FFP, USDA’s Commodity
agencies and their contractors and (2) a voluntary labeling
Credit Corporation may purchase sugar from processors for
initiative for biobased products. Products that meet the
resale to fuel ethanol producers.
minimum biobased content criteria may display the U.S.
Biomass Crop Assistance Program (BCAP). Provides
Department of Agriculture (USDA) Certified Biobased
financial assistance to owners and operators of agricultural
Product label.
land and nonindustrial private forest land to establish,
Biorefinery, Renewable Chemical, and Biobased
produce, and deliver biomass feedstock to eligible
Product Manufacturing Assistance Program. Seeks to
processing plants via matching payments; and
facilitate the development of new and emerging
establishment and annual payments.
technologies for advanced biofuels; renewable chemicals;
Community Wood Energy and Wood Innovation
and biobased product manufacturing by providing loan
Program. Provides matching grants for the installation of
guarantees for the development, construction, or retrofitting
community wood energy systems or building an innovative
of commercial-scale biorefineries.
wood product facility. Grants generally are capped at 35%
Bioenergy Program for Advanced Biofuels. Referred to
of the capital cost, or up to 50% for special circumstances.
as the Advanced Biofuel Payment Program. Provides
https://crsreports.congress.gov