Overview of the 2018 Farm Bill Energy Title Programs

link to page 2

Updated May 21, 2020
Overview of the 2018 Farm Bill Energy Title Programs
Congress has long encouraged the production of renewable
advanced biofuels (i.e., not derived from corn starch). One
energy and products derived from agriculture-based
payment type is for the actual quantity produced, and a
feedstock in pursuit of various policy goals. These goals
second is for production increases. No more than 5% of
include U.S. energy security, greenhouse gas emission
available funds provided each year may be used for
reduction, and increased demand for U.S. farm products.
facilities that exceed an annual refining capacity of 150
Since the late 1970s, Congress has employed a wide range
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) build upon
land-grant colleges and universities; rural electric
programs established in the 2002 farm bill (P.L. 107-171)—
cooperatives; and public power entities) with grants for
the first farm bill with an energy title authorizing several
energy audits and renewable energy development
agriculture-based programs (7 U.S.C. §8101 et seq.). Since
assistance. Also provides loan guarantees and grants for
2002, the energy title in succeeding farm bills mostly has
energy efficiency improvements and renewable energy
reauthorized—and in some cases modified—the programs.
systems (RESs). RESs include biofuels, and power
With a few exceptions, Title IX of the 2018 farm bill
generation from wind, solar, biomass, geothermal, ocean,
reauthorized the major bioenergy programs from the 2014
and some hydropower sources. RESs exclude retail energy
farm bill (P.L. 113-79), while providing many of them with
dispensers (e.g., blender pumps). A cap of 15% of available
mandatory funding (i.e., not dependent on discretionary
funds per year is imposed on loan guarantees to agricultural
appropriations) for the five-year life of the bill, FY2019-
producers for energy efficiency equipment.
FY2023. Mandatory funding for the energy title programs
in the 2018 farm bill is less than what was provided in the
Rural Energy Savings Program (RESP). Provides loans
2014 farm bill. Because the farm bill provided mandatory
to rural families and small businesses to achieve cost
funding and authorized discretionary funding for many of
savings to implement durable cost-effective energy
the energy title programs, there is typically an annual
efficiency measures to include on- or off-grid renewable
discussion about how much discretionary funding should be
energy or energy storage systems.
appropriated. The 2018 farm bill established a new program
Biomass Research and Development (BR&D). Supports
for carbon utilization and biogas education, and repealed
cooperation and coordination between the USDA and the
two authorities—the Repowering Assistance Program and
U.S. Department of Energy (DOE) for biomass research
the Rural Energy Self-Sufficiency Initiative.
and development. The BR&D Initiative offers competitive
A brief description of the farm bill energy title programs
funding through grants, contracts, and financial assistance
follows. Table 1 identifies the implementing agency by
for research, development, and demonstration for biofuels
program and provides FY2020 authorized funding levels.
and biobased products. Eligibility is limited to institutions
of higher learning, national laboratories, federal or state
Biobased Markets Program. Referred to as the
research agencies, and private and nonprofit entities.
BioPreferred Program. Promotes biobased products through
two initiatives: (1) mandatory purchasing by federal
Feedstock Flexibility Program (FFP). Designed to help
agencies and their contractors and (2) a voluntary labeling
stabilize sugar prices so as to avoid forfeitures under the
initiative for biobased products. Products that meet the
sugar loan program. Under FFP, USDA’s Commodity
minimum biobased content criteria may display the U.S.
Credit Corporation (CCC) may purchase sugar from
Department of Agriculture (USDA) Certified Biobased
processors for resale to fuel ethanol producers.
Product label.
Biomass Crop Assistance Program (BCAP). Provides
Biorefinery, Renewable Chemical, and Biobased
financial assistance to owners and operators of agricultural
Product Manufacturing Assistance Program. Seeks to
land and nonindustrial private forest land to establish,
facilitate the development of new and emerging
produce, and deliver biomass feedstock to eligible
technologies for advanced biofuels; renewable chemicals;
processing plants via matching payments; and
and biobased product manufacturing by providing loan
establishment and annual payments.
guarantees for the development, construction, or retrofitting
Community Wood Energy and Wood Innovation
of commercial-scale biorefineries.
Program. Provides matching grants for the installation of
Bioenergy Program for Advanced Biofuels. Referred to
community wood energy systems or building an innovative
as the Advanced Biofuel Payment Program. Provides
wood product facility. Grants are capped at 35% of the
payments to producers to support and expand production of
capital cost; or up to 50% for special circumstances.
https://crsreports.congress.gov

Overview of the 2018 Farm Bill Energy Title Programs
Sun Grant Program. Provides grants to regional centers to
educate the public about the economic benefits and
be used for integrated, multistate research, extension, and
emissions benefits of permanent carbon sequestration or
education programs on technology development and
utilization and (2) educate agricultural producers and other
technology implementation and to address bioenergy,
stakeholders about opportunities for the collection of
biomass, or bioproducts research priorities.
organic waste from multiple sources to be used in a single
Carbon Utilization and Biogas Education Program.
biogas system.
Provides competitive grants to eligible entities to (1)
Table 1. 2018 Farm Bill Energy Title Programs: FY2020 Authorized Funding
FY2020 Mandatory Funding (M)
and Authorization of
FY2020
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 - 25
M - 25
Chemical, and Biobased
D - 75
D - 0
Product Manufacturing
Assistance Program
Bioenergy Program for
USDA RD
7 U.S.C. §8105
M - 7
Advanced Biofuels
M - 7
D - 0
(i.e., Advanced Biofuel
D - 20
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 - 0.706
Rural Energy Savings
USDA RD
7 U.S.C. §8107a
M - 0
M - 0
Program
D - 75
D - 12
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 - 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
USDA and DOE
7 U.S.C. §8115
M - 0
M - 0
Biogas Education Program
D - 2
D - 0
Source: P.L. 115-334, P.L. 116-94, Committee Print 38-679, 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 the 2018 Farm Bill Energy Title Programs


Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF10288 · VERSION 12 · UPDATED