Farm Bill Primer: Energy Title

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Updated November 1, 2022
Farm Bill Primer: Energy Title
Omnibus farm bills have been enacted periodically to
 7 U.S.C. §8114: Sun Grant Program; and
address agricultural and food programs . The most recent
 7 U.S.C. §8115: Carbon Utilization and Biogas
farm bill—the Agriculture Improvement Act of 2018 (P.L.
Education Program.
115-334; 2018 farm bill)—contains 12 titles, including Title
IX Energy. The 2018 farm bill is the fourth farm bill to
Of the 11 reauthorized activities, seven programs and one
contain an energy title. In preparation for another farm bill,
initiative were amended under the 2018 farm bill (§8102,
Congress may examine funding and oversight of the energy
§8103, §8105, §8107, §8107a, §8108, §8111, and §8113),
title programs as well as (1) the effect of related efforts
and three programs generally were unchanged (§8106,
provided under non-agriculture legislation (e.g., the
§8110, and §8114). For more discussion of the energy title
Renewable Fuel Standard (RFS)), (2) market activity for
programs, see CRS In Focus IF10288, Overview of the
conventional energy (e.g., the price of oil), and (3) support
2018 Farm Bill Energy Title Programs, by Kelsi Bracmort.
provided under the Inflation Reduction Act of 2022 (IRA;
P.L. 117-169).
Energy Title Funding
Like previous bills, the 2018 farm bill addresses funding for
This In Focus summarizes the 2018 farm bill energy title,
Title IX programs. The five-year FY2019-FY2023 total
energy title funding for the last four farm bills, legislative
mandatory funding and the total discretionary funding
support for agriculture-related energy, and legislative issues
authorized to be appropriated are $375 million and $1.7
as background and context for upcoming discussions about
billion, respectively (see Figure 1). The mandatory funding
authorizing another farm bill. This In Focus reviews all
for the energy title comprises approximately 0.1% of the
sections of 7 U.S.C. Ch. 107 Renewable Energy Research
Congressional Budget Office’s 2018 farm bill total
and Development, including sections enacted under other
mandatory program estimate of $428 billion over the same
titles of the 2018 farm bill.
five-year period.
2018 Farm Bill Energy Title
Figure 1. Energy Title Funding in 2002-2018 Farm Bills
The 2018 farm bill energy title primarily focuses on support
(in millions of dollars)
for renewable energy—particularly agriculture-related
energy—as well as energy efficiency and bioproducts (e.g.,
bio-based cleaning supplies). The 2018 farm bill authorizes
12 energy programs and initiatives. This total includes
reauthorization of 11 activities and establishment of one
new program—the Carbon Utilization and Biogas
Education Program. Further, the law repeals one program
and one initiative—the Repowering Assistance Program
and the Rural Energy Self-Sufficiency Initiative,

respectively. The 12 authorized programs and initiative are
Source: CRS Report R45943, The Farm Bil Energy Title: An Overview
 7 U.S.C. §8102: Biobased Markets Program;
and Funding History, by Kelsi Bracmort

Notes: Mandatory funding for the 2002 farm bil covered a six-year
7 U.S.C. §8103: Biorefinery, Renewable Chemical, and
period, whereas the other farm bil s covered a five-year period.
Biobased Product Manufacturing Assistance (Program);

 7 U.S.C. §8105: Bioenergy Program for Advanced
Biofuels;
Mandatory funding for the energy title has varied in each
 7 U.S.C. §8106: Biodiesel Fuel Education Program;
bill—with the largest amount, approximately $1 billion

over five years, provided in the 2008 farm bill (P.L. 110-
7 U.S.C. §8107: Rural Energy for America Program
246). Mandatory funding has declined in each farm bill
(REAP);
since. Under the 2018 farm bill, five programs receive
 7 U.S.C. §8107a: Rural Energy Savings Program;
mandatory funding, fewer than before. The §8103 and
 7 U.S.C. §8108: Biomass Research and Development
§8107 programs combined constitute close to 87% of the
(Initiative);
total mandatory funding in Title IX.
 7 U.S.C. §8110: Feedstock Flexibility Program for
Discretionary funding increased over the last three farm
Bioenergy Producers;
bills. Under the 2018 farm bill, discretionary funding is
 7 U.S.C. §8111: Biomass Crop Assistance Program;
authorized for all but one of the energy title programs—the

§8110 program. For those programs that may receive both
7 U.S.C. §8113: Community Wood Energy and Wood
mandatory and discretionary funding, the discretionary
Innovation Program;
funding amount authorized is almost equivalent to or
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Farm Bil Primer: Energy Title
exceeds the mandatory funding amount. However, thus far,
2024, be absorbed into a new clean fuel production tax
total discretionary funding under the 2018 farm bill has
credit, available through 2027.
been lower than the amounts authorized to be appropriated.
Four programs have received discretionary funding under
Legislative Issues
the 2018 farm bill: §8107, §8107a, §8113, and §8114.
With the enacted 2018 farm bill, and as Congress prepares
for another farm bill, Congress may assess agriculture-
Agriculture-Related Energy
related energy in at least three domains—agriculture, the
Agriculture-related energy is defined, for the purposes
environment, and economic development. Potential issues
herein, as energy derived from agricultural or forestry
for Congress include (1) the amount (if any) of
feedstocks (e.g., crops, woody biomass, food waste,
discretionary funding to provide in annual appropriation
manure). Agriculture-related energy—commonly named
laws for 2018 farm bill energy title programs, (2) the
bioenergy—may be in the form of liquid transportation
impact of the financial support provided by the IRA on
fuels, electric power, or heat. The most prevalent form is
energy title programs, and (3) what if any impact the energy
ethanol—a liquid fuel commonly blended with gasoline for
title programs have on other legislative efforts (e.g., the
use in motor vehicles.
RFS, fuel tax incentives).
There are opportunities and challenges associated with
There are a few points specific to the energy title programs
bioenergy production. Bioenergy often is viewed as
that Congress may consider when addressing the three
renewable and as having fewer detrimental environmental
aforementioned issues. First, with the exception of REAP,
effects than conventional energy. Disagreement exists about
many of the energy title programs lack a budget baseline—
the environmental effect of certain types of bioenergy (e.g.,
a projection at a particular point in time of what future
greenhouse gas emission impacts of cornstarch ethanol,
federal spending on mandatory programs would be under
land-use changes, water quality impacts). Some view
current law. Thus, a re-authorization of some of the energy
bioenergy as having the potential to stimulate economic
title programs in the 2018 farm bill could be scored as new
development in rural areas. However, there can be
mandatory spending and may require budgetary offsets to
limitations—primarily infrastructure and economic—to the
pay for it (e.g., in a future farm bill).
production, distribution, and consumption of bioenergy.
Second, in the past, there has been minimal discretionary
Legislative Support for
funding provided for energy title programs. Going forward,
Agriculture-Related Energy
some may assert that Congress does not need to provide
Congress has supported agriculture-related energy for close
discretionary funding because some of the energy title
to 40 years through energy, agriculture, and tax laws. One
programs receive mandatory funding. Others may contend
of Congress’s initial measures to support agriculture-related
that the programs cannot be fully effective if Congress does
energy was the Energy Security Act of 1980 (P.L. 96-294).
not appropriate the discretionary funding.
This act established a biomass energy program, including
an Office of Alcohol Fuels within the Department of
Third, the relationship between other policy mechanisms
Energy, a municipal waste biomass energy program, and
(e.g., consumption mandates, tax incentives) and the energy
several initiatives for forestry energy. Congress created an
title programs remains an issue. The focus of the
energy title in the 2002 farm bill (P.L. 107-171), which
agriculture-related energy discussion has centered on liquid
assisted farmers with purchasing renewable energy systems
transportation fuels (i.e., cornstarch ethanol, cellulosic
and increasing energy efficiency. This agricultural
ethanol). Energy policy and tax policy have maintained this
legislation was followed by the Energy Policy Act of 2005
focus with the RFS and certain tax credits (e.g., biodiesel
(P.L. 109-58), which established the RFS that mandates
tax incentive). Congress may debate whether continued
U.S. transportation fuel contain a minimum volume of
support for liquid transportation fuels is necessary via non-
biofuel, and by the Energy Independence and Security Act
agriculture legislation and relative to the development of
of 2007 (P.L. 110-140), which expanded the mandate.
electric vehicles.
Congress then passed the 2008 farm bill—which renewed
authorization for and expanded renewable energy programs
Lastly, supplies of domestic oil and natural gas, along with
established in the 2002 farm bill. Congress subsequently
both energy and agricultural commodity prices, are a
passed the 2014 farm bill (P.L. 113-79), which extended
consideration when discussing the energy title programs.
most of the renewable energy provisions of the 2008 farm
The energy title programs were established and expanded
bill. Congress then passed the 2018 farm bill that extended
when high energy prices and energy independence were
most of the 2014 renewable energy provisions.
concerns. Given current economic conditions (e.g., the
COVID-19 pandemic, the invasion of Ukraine), it is not
Congress established tax incentives for biofuels, including
clear how agriculture-related energy will compare with oil
the Volumetric Ethanol Excise Tax Credit (which expired
and natural gas prices.
in 2011) and the Biodiesel Tax Credit in the American Jobs
Creation Act of 2004 (P.L. 108-357). The Inflation
Kelsi Bracmort, Specialist in Natural Resources and
Reduction Act of 2022 (IRA, P.L. 117-169) extends certain
Energy Policy
tax incentives for biofuels, including for biodiesel and
renewable diesel, through 2024. The law also establishes a
IF10639
new sustainable aviation fuel tax credit that would, after


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Farm Bil Primer: Energy Title


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