Overview of the 2018 Farm Bill Energy Title Programs

Overview of the 2018 Farm Bill Energy Title Programs

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Updated April 2, 2024
Overview of the 2018 Farm Bill Energy Title Programs
Congress has long encouraged the production of renewable
production of advanced biofuels (i.e., not derived from corn
energy and products derived from agriculture-based
starch). One payment type is for the actual quantity
feedstock in pursuit of various policy goals. These goals
produced, and a second is for production increases. No
include U.S. energy security, greenhouse gas emission
more than 5% of available funds provided each year may be
reduction, and increased demand for U.S. farm products.
used for facilities that exceed an annual refining capacity of
Since the late 1970s, Congress has employed a wide range
150 million gallons.
of policy mechanisms and incentives—including the farm
Biodiesel Fuel Education Program. Provides grants to
bill—to expand the production and use of agriculture-based
nonprofit organizations and institutions of higher education
renewable energy (e.g., tax incentives to blend biofuels
that educate government and private vehicle fleet operators,
with gasoline, loan guarantees to construct production
the public, and others about the benefits of biodiesel.
facilities, and a consumption mandate for biofuels).
Rural Energy for America Program (REAP). Provides
The bioenergy programs authorized and funded under the
eligible entities (e.g., state, tribal, or local governments;
energy title of the 2018 farm bill (P.L. 115-334, Title IX)
land-grant colleges and universities; rural electric
build upon programs established in the 2002 farm bill (P.L.
cooperatives; and public power entities) with grants for
107-171)—the first farm bill to contain an energy title (7
energy audits and renewable energy development
U.S.C. §§8101 et seq.). Since 2002, the energy title in
assistance. REAP also provides loan guarantees and grants
succeeding farm bills mostly has reauthorized—and in
for energy efficiency improvements and renewable energy
some cases modified—the programs. With a few
systems (RESs). RESs include biofuels, and power
exceptions, Title IX of the 2018 farm bill reauthorized the
generation from wind, solar, biomass, geothermal, ocean,
major bioenergy programs from the 2014 farm bill (P.L.
and some hydropower sources. RESs exclude retail energy
113-79), while providing several of them with mandatory
dispensers (e.g., blender pumps).
funding (i.e., not dependent on discretionary
appropriations) for the five-year period from FY2019 to
Rural Energy Savings Program (RESP). Provides loans
FY2023. Mandatory funding for the energy title programs
to rural families and small businesses to achieve cost
in the 2018 farm bill is less than what was provided in the
savings to implement durable cost-effective energy
2014 farm bill. Because the farm bill provided mandatory
efficiency measures to include on- or off-grid renewable
funding and authorized discretionary funding for many of
energy or energy storage systems.
the energy title programs, there is typically an annual
Biomass Research and Development (BR&D). Supports
discussion about how much discretionary funding should be
cooperation and coordination between the USDA and the
appropriated. The 2018 farm bill also established a new
U.S. Department of Energy (DOE) for biomass research
program for carbon utilization and biogas education, and
and development. The BR&D Initiative offers competitive
repealed two authorities—the Repowering Assistance
funding through grants, contracts, and financial assistance
Program and the 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
FY2024 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
payments to fuel producers to support and expand
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Overview of the 2018 Farm Bill Energy Title Programs
Sun Grant Program. Provides grants to regional centers
Carbon Utilization and Biogas Education Program.
for multi-institutional and integrated, multistate research,
Provides competitive grants to eligible entities to educate
extension, and education programs on technology
the public about the economic and emissions benefits of
development and technology implementation that address
permanent carbon sequestration or utilization, and to
bioenergy, biomass, or bioproducts research priorities.
educate agricultural producers and other stakeholders about
the collection of organic waste from multiple sources to be
used in a single biogas system.
Table 1. 2018 Farm Bill Energy Title Programs (P.L. 115-334, Title IX): FY2024 Funding
FY2023 Mandatory Funding (M)
and Authorization of
FY2024
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 – 0
M – 0
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
(i.e., Advanced Biofuel
Payment Program)
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 – 0a
Rural Energy Savings
USDA RD
7 U.S.C. §8107a
M – 0
M – 0
Program
D – 75
D – 3.6
Biomass Research and
USDA NIFA and 7 U.S.C. §8108
M – 0
M – 0
Development
DOE
D – 20
D – 0
Feedstock Flexibility
USDA FSA
7 U.S.C. §8110
M – SSAN
M – SSANb
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 – 25
D – 15
Program
Sun Grant Program
USDA NIFA
7 U.S.C. §8114
M – 0
M – 0
D – 75
D – 3
Carbon Utilization and
USDA and DOE
7 U.S.C. §8115
M – 0
M – 0
Biogas Education Program
D – 2
D – 0
Sources: P.L. 115-334, P.L. 118-42, explanatory statements, 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. The mandatory
funding is subject to sequestration, which is unspecified in the table. This table does not include funding provided for energy title programs in
the Inflation Reduction Act of 2022 (IRA; P.L. 117-169). The IRA provides approximately $13 bil ion for energy title programs, including
approximately $2.0 bil ion for REAP. Congress extended the 2018 farm bil , which expired on September 30, 2023, for one year (P.L. 118-22).
a. Rescinds $10 mil ion of unobligated balances from prior year appropriations.
b. USDA reports it does not expect to purchase and sel sugar under the program for crop year 2023, which runs from October 1, 2023, to
September 30, 2024. U.S. Department of Agriculture, “USDA Announces No Actions Under Feedstock Flexibility Program,” press release,
January 26, 2024.

Kelsi Bracmort, Specialist in Natural Resources and

Energy Policy

IF10288
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Overview of the 2018 Farm Bill Energy Title Programs

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