Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill: A Side-by-Side Comparison

Biofuels Provisions in the 2007 Energy Bill and
the 2008 Farm Bill: A Side-by-Side Comparison
Updated June 27, 2008
Tom Capehart and Randy Schnepf
Specialists in Agricultural Policy
Resources, Science, and Industry Division
Brent D. Yacobucci
Specialist in Energy and Environmental Policy
Resources, Science, and Industry Division



Biofuels Provisions in the 2007 Energy Bill and the
2008 Farm Bill: A Side-by-Side Comparison
Summary
The Energy Independence and Security Act of 2007 (EISA, P.L. 110-140), also
known as the 2007 energy bill, significantly expands existing programs to promote
biofuels. The Food, Conservation, and Energy Act of 2008 (P.L. 110-246), also
known as the 2008 farm bill, contains a distinct energy title (Title IX) that covers a
wide range of energy and agricultural topics with extensive attention to biofuels,
including corn-starch based ethanol, cellulosic ethanol, and biodiesel. Research
provisions relating to renewable energy are found in Title VII and tax provisions are
found in Title XV of the farm bill.
Key biofuels-related provisions of EISA and the 2008 farm bill include:
!a major expansion of the renewable fuel standard (RFS) established
in the Energy Policy Act of 2005 (P.L. 109-58) [EISA];
!expansion and/or modification of tax credits for ethanol [farm bill];
!grants and loan guarantees for biofuels (especially cellulosic)
research, development, deployment, and production [EISA, farm
bill];
!studies of the potential for ethanol pipeline transportation, expanded
biofuel use, market and environmental impacts of increased biofuel
use, and the effects of biodiesel on engines [EISA, farm bill];
!expansion of biofuel feedstock availability [farm bill];
!reauthorization of biofuels research and development at the U.S.
Department of Energy [EISA] and the U.S. Department of
Agriculture and Environmental Protection Agency [farm bill]; and
!reduction of the blender tax credit for corn-based ethanol, a new
production tax credit for cellulosic ethanol, and continuation of the
import duty on ethanol [farm bill].
This report includes information from CRS Report RL34130, Renewable
Energy Policy in the 2007 Farm Bill, by Randy Schnepf and Tom Capehart, and CRS
Report RL34136, Biofuels Provisions in the Energy Independence and Security Act
of 2007 (P.L. 110-140), H.R. 3221, and H.R. 6: A Side-by-Side Comparison, by Brent
D. Yacobucci.



Contents
In troduction ......................................................1
Key Elements of EISA and the 2008 Farm Bill...........................2
List of Tables
Table 1. Comparison of Current or Prior Law with Biofuels Provisions in EISA
and the Enacted Farm Bill.......................................4



Biofuels Provisions in the 2007 Energy Bill
and the 2008 Farm Bill:
A Side-by-Side Comparison
Introduction
Recent high energy prices, concerns over energy security, and the desire to
promote rural business and to reduce air pollutant and greenhouse gas emissions have
sparked congressional interest in promoting greater use of alternatives to petroleum
fuels. Biofuels — transportation fuels produced from plant and animal materials —
have attracted particular interest. Ethanol and biodiesel, the two most widely used
biofuels, receive significant federal support in the form of tax incentives, loan and
grant programs, and regulatory programs.1
The Energy Policy Act of 2005 (EPAct, P.L. 109-58) established a renewable
fuel standard (RFS). This initial RFS required the increasing use of renewable fuel
in gasoline, starting at 4.0 billion gallons in 2006 and increasing to 7.5 billion gallons
in 2012. However, the RFS was significantly expanded on December 19, 2007, when
President Bush signed the Energy Independence and Security Act of 2007 (EISA).
Instead of requiring 5.4 billion gallons of renewable fuel in 2008, the new law
requires 9.0 billion gallons. Further, the 2007 law requires that the RFS be expanded
to 36 billion gallons of renewable fuel by 2022, as compared to an estimated 8.6
billion gallons under EPAct. Although this is not an explicit ethanol mandate, it is
expected that much of this requirement will be met using corn-based ethanol.2 The
U.S. ethanol industry expanded rapidly in response to EPAct, outpacing the required
growth in the earlier RFS and leading some proponents of corn-based ethanol to
support an increase in the mandated levels of the RFS.
The Food, Conservation, and Energy Act of 2008 (2008 farm bill, P.L. 110-246)
promotes the development of cellulosic ethanol production through new blender tax
credits, reduces slightly the production tax credit for corn-derived ethanol when
production reaches 7.5 billion gallons, and continues the tariff on imported ethanol.
It also expands research on agricultural renewable energy and encourages
infrastructure development needed for cellulosic ethanol production.
During the final months of the farm bill debate, both food and fuel prices
increased dramatically, and the role of corn-based ethanol in food price inflation


1 For more information on federal biofuels incentives, see CRS Report RL33572, Biofuels
Incentives: A Summary of Federal Programs, by Brent D. Yacobucci.
2 For more information on ethanol, see CRS Report RL33290, Fuel Ethanol: Background
and Public Policy Issues, by Brent D. Yacobucci.

became a subject of intense debate. Because of the rapid expansion of U.S. corn
ethanol capacity — as of May 28, 2008, existing capacity was an estimated at 8.7
billion gallons per year, while an additional 4.9 billion gallons was under
construction3 — some are concerned that the United States will soon reach the limit
of ethanol that can be produced from corn. Critics of corn-based ethanol argue that
the industry does not need continued government support, and that current corn
demand for ethanol is putting a strain on corn and other grain markets, leading to
increases in other commodity prices, such as livestock feed, which then leads to
higher dairy and meat prices.4 Critics also argue that the environmental costs of corn-
based ethanol may outweigh the benefits. Proponents of corn-based ethanol
production assert that increased acreage and upward-trending yields will enable corn
producers to satisfy the demand for corn for feed, fuel, and exports.
Advanced biofuels based on non-food feedstocks are generating much interest.
Feedstocks that could be grown on marginal land with reduced inputs compared with
corn would solve the food versus fuel issue, it has been argued. However, biofuels
that rely on other sources of biomass, including agricultural wastes, municipal solid
waste, and dedicated non-food energy crops such as perennial grasses, fast-growing
trees, and algae are still years from commercial production. Nonetheless, this interest
has led to proposals to support and/or mandate biofuels produced from feedstocks
other than corn starch through explicit requirements, research, development and
extension funding, and/or tax incentives.5 Non-corn biofuels could include fuels
produced from cellulosic material (such as perennial grasses), ethanol produced from
sugarcane or beets, and biodiesel or renewable diesel produced from vegetable or
animal oils.6 Under EISA, eligible corn-based ethanol production is capped at 15
billion gallons by 2015. Starting in 2009, the RFS will require that an increasing
amount of the mandate be met through the use of “advanced biofuels” — biofuels
produced from feedstocks other than corn starch.
Key Elements of EISA and the 2008 Farm Bill
The following table provides a side-by-side comparison of biofuels-related
provisions in EISA with the enacted farm bill — the Food, Conservation, and Energy
Act of 2008. President Bush signed EISA on December 19, 2007, and the Food,
Conservation, and Energy Act of 2008 became law on June 18, 2008, after President


3 Renewable Fuels Association, [http://www.ethanolrfa.org/industry/locations].
4 For more information on the issues surrounding rapid ethanol expansion, see CRS Report
RL33928, Ethanol and Biofuels: Agriculture, Infrastructure, and Market Constraints
Related to Expanded Production, by Brent D. Yacobucci and Randy Schnepf.
5 Non-corn-starch feedstocks include other parts of the corn plant, such as the husks and the
stalks, which are high in cellulose.
6 For more information on biodiesel, see CRS Report RL32712, Agriculture-Based
Renewable Energy Production, by Randy Schnepf.

Bush’s veto was overridden by both the Senate and the House.7 Both bills cover a
wide range of energy and agricultural topics in addition to biofuels.
The table is organized in the same order as EISA, followed by provisions that
are exclusively in the enacted farm bill.
Key biofuels-related provisions of EISA and the 2008 farm bill include:
!a major expansion of the renewable fuel standard (RFS) established
in the Energy Policy Act of 2005 (P.L. 109-58) [EISA];
!expansion and/or modification of tax credits for ethanol [farm bill];
!grants and loan guarantees for biofuels (especially cellulosic)
research, development, deployment, and production [EISA, farm
bill];
!studies of the potential for ethanol pipeline transportation, expanded
biofuel use, market and environmental impacts of increased biofuel
use, and the effects of biodiesel on engines [EISA, farm bill];
!expansion of biofuel feedstock availability [farm bill];
!reauthorization of biofuels research and development at the U.S.
Department of Energy [EISA] and the U.S. Department of
Agriculture and Environmental Protection Agency [farm bill]; and
!reduction of the blender tax credit for corn-based ethanol, a new
production tax credit for cellulosic ethanol, and continuation of the
import duty on ethanol [farm bill].


7 The conference agreement on the 2008 farm bill was originally approved by the House and
the Senate as H.R. 2419 and vetoed by the President in May 2008. Both chambers overrode
the veto, making the bill law (P.L. 110-234). However, the trade title was inadvertently
excluded from the enrolled bill. To remedy the situation, both chambers repassed the farm
bill conference agreement (including the trade title) as H.R. 6124. The President vetoed the
measure in June 2008 and both chambers again overrode the veto, which made H.R. 6124
law (P.L. 110-246), and repealed P.L. 110-234.

CRS-4
Table 1. Comparison of Current or Prior Law with Biofuels Provisions in EISA and the Enacted Farm Bill
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
. 110-140, Title I Energy Security Through Improved Fuel Economy
umer InformationNo prior provision.The Dept. of Transportation is required to carryNo comparable provision.
out an educational program to inform consumers
about the fuel savings and emissions benefits of
new vehicles, including the benefits from the use
of alternative fuels.
[Sec. 105]
el Tank LabelingNo prior provision.Requires the Dept. of Transportation to issue aNo comparable provision.
iki/CRS-RL34239entfinal rule by June 2011 requiring automakers toclearly label the fuel compartment of alternative
g/wfuel vehicles with the form of alternative fuel
s.orstated on the label. [Sec. 105]
leak
://wikitension of Flexible Fuel /Under the Corporate Average FuelEconomy (CAFE) program, automakersAmends the CAFE program to extend alternativefuel vehicle credits through model year 2019, at aNo comparable provision.
httpodiesel as Alternative fuelmay generate credits toward theirdeclining rate. Also allows vehicles capable of
Purposescompliance for the production and saleoperating on B20 to be treated as vehicles eligible
of alternative fuel vehicles, as defined infor CAFE credits. Expanding the definition of
law. Currently, B20 (a blend of 20%alternative fuel vehicle to include B20 could
biodiesel and 80% petroleum diesel)make all diesel passenger cars and light trucks
vehicles are not considered alternativeeligible for credits under CAFE. Currently, some
fuel vehicles. [49 U.S.C. 32901 et seq.]diesel passenger vehicles are warrantied to run on
B5, but few technical barriers exist to make new
diesel vehicles B20-capable.
[Sec. 109]
. 110-140, Title II — Energy Security Through Increased Production of Biofuels
able Fuel StandardThe Energy Policy Act of 2005Amends the RFS to include all transportationNo comparable provision.


established a Renewable Fuel Standardfuels (except for fuels used in ocean-going
(RFS) which requires the use of anvessels). Expands the existing requirement to 9.0

CRS-5
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
increasing amount of renewable fuels inbillion gallons in 2008, increasing to 36 billion
gasoline. The mandate increases fromgallons in 2022. Requires renewable fuels
4.0 billion gallons in 2006 to 7.5 billionproduced at new facilities to have at least 20%
gallons in 2012. Starting in 2013, thelower lifecycle greenhouse gas (GHG) emissions
proportion of renewable fuel to gasolinethan petroleum fuels. Starting in 2009, requires
must equal or exceed the proportion inthat an increasing amount of the above mandate
2012. Starting in 2013, of the amountbe met usingadvanced biofuels,” defined as
mandated above, at least 250 millionbiofuels derived from feedstocks other than corn
gallons must be fuel derived fromstarch with 50% lower lifecycle GHG emissions.
cellulosic material. By 2022, requires 21 billion gallons of advanced
[P.L. 109-58, Sec. 1501], [42 U.S.C.biofuel. Of the advanced biofuel mandate,
7545]specific carve-outs are made for cellulosic fuels
iki/CRS-RL34239and biomass-derived diesel substitutes. [Sec. 202]
g/w
s.ormpact of IncreasedBy August 2009, EPA must publish aDOE, in consultation with USDA and EPA, isComprehensive Study of Biofuels The
leakable Fuel Usedraft analysis of the effects of the fuelsrequired to enter into an agreement with theDept. of Treasury, with DOE, USDA, and
provisions in P.L. 109-58 on airNational Academy of Sciences (NAS) to studyEPA shall have the National Academy of
://wikipollutant emissions and air quality. [P.L.the impacts of the RFS on industries related toSciences analyze scientific findings on
http109-58, Sec. 1505], [42 U.S.C. 7545(b)]feed grains, livestock, food, forest products, andcurrent and future biofuels production,
energy. The NAS study must assess the likelyimpacts, trends, and policies. [Sec. 15322]


EPA is required to conduct a survey toeffects on domestic animal agriculture and policy
determine the market share of gasolineoptions to alleviate negative effects; identify
containing ethanol and other renewableagricultural conditions that would warrant a
fuels. [P.L. 109-58, Sec. 1501(c)], [42waiver of the RFS requirements; and make
U.S.C. 7545]recommendations to limit adverse economic
impacts from the RFS.
DOE is required to collect and publish[Sec. 203]
monthly survey data on the production,
blending, importing, demand, and price
of renewable fuels, both on a national
and regional basis.
[P.L. 109-58, Sec. 1508], [42 U.S.C.
7135]

CRS-6
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
vironmental and ResourceNo prior provision.EPA, in consultation with the USDA and DOE,No comparable provision.
nservation Impactsmust study the impacts of the RFS on
environmental issues, resource conservation
issues, and invasive or noxious species.
[Sec. 204]
omass Based Diesel andNo prior provision.The Federal Trade Commission is required toNo comparable provision.
odiesel Labelingpromulgate rules requiring diesel retailers to label
their pumps with the percentage of biomass-
based diesel or biodiesel that is offered for sale.
[Sec. 205]
for Use ofUnder the original RFS, cellulosicEPA is required to study the feasibility of issuingNo comparable provision.
iki/CRS-RL34239able Electricity inbiofuels are eligible for additionalcredits under the RFS for electric vehicles
g/wectric Vehicles /credits under the mandate. A gallon ofpowered by electricity from renewable resources.
s.oroduction of Renewablecellulosic biofuel is considered equal toWithin 180 days of enactment, EPA must report
leak Renewable2.5 gallons of ethanol. For this section,to Congress on the findings of the study.
ergycellulosic biofuels” includes both[Sec. 206]
://wikibiofuels produced from cellulose and
httpbiofuels produced from sugars or
starches (e.g., corn ethanol) if biomass is
used to displace fossil energy in the
refining of the fuel.
[P.L. 109-58, Sec. 1501], [42 U.S.C.
7545]
ants for Production ofThe DOE may provide grants for theRequires DOE to establish a grant program forBiorefinery Assistance. New section 9003.
vanced Biofuelsconstruction of facilities to producethe production of advanced biofuels that have atProvides competitive grants and loan
renewable fuels (including ethanol) fromleast an 80% reduction in lifecycle greenhouseguarantees for construction and retrofitting
cellulosic biomass, agriculturalgas emissions relative to current fuels. of biorefineries for the production of
byproducts, agricultural waste, andAuthorizes discretionary appropriation of a totaladvanced biofuels. Biorefinery grants up to
municipal solid waste. Discretionaryof $500 million for FY2008-FY2015. 30% of total cost. Loan guarantees limited
appropriations of $100 million for[Sec. 207]to $250 million or 80% of project cost.
FY2006, $250 million for FY2007, andMandatory funding of $75 million in
$400 million for FY2008 are authorized.FY2009 and $245 million in FY2010,



CRS-7
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
[P.L. 109-58, Sec. 1512]available until expended for loan guarantees.
An existing grant program finances the Discretionary funding of $150 million
development and construction ofannually is authorized for FY2009-12.
biorefineries and biofuel production[Sec. 9001]
plants and implements projects to
demonstrate the commercial viability ofRepowering Assistance. New section 9004.
converting biomass to fuels orProvides USDA funds for repowering
chemicals. No funds have beenassistance to reduce or eliminate their use of
appropriated for the program.fossil fuels for biorefineries in existence at
[P.L. 107-171, Sec. 9003], [7 USCenactment. Mandatory Commodity Credit
8103]Corporation (CCC) funding of $35 million
for FY2009, available until expended.
iki/CRS-RL34239Authorizes discretionary funding of $15million annually for FY2009-12. [Sec.
g/w 9001]
s.or
leaktegrated Consideration ofSection 211(c) of the Clean Air ActExpands EPAs authority to control engines,No comparable provision.
ter Quality inallows EPA to control or prohibit thevehicles, fuels, and fuel additives under Sec.
://wikiterminations on Fuels andproduction and/or sale of any engine,211(c) of the Clean Air Act to include effects on
httpel Additivesvehicle, fuel, or fuel additive that causeswater pollution.
or contributes to air pollutionthat may[Sec. 208]
be reasonably anticipated to endanger
the public health or welfare.”
[42 U.S.C. 7545(c)]
i-BackslidingNo provision.Requires EPA to study the potential adverseNo comparable provision.
effects to air quality from the expanded RFS, and
to promulgate regulations to mitigate those
effects.
[Sec. 209]
fective Date, SavingsNo provision.For 2008 and 2009, any ethanol plant powered byNo comparable provision.


sion, and Transitionnatural gas, biomass, or a combination of the two
is treated as having a 20% reduction in lifecycle
greenhouse gas emissions (See Sec. 202). For

CRS-8
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
2008, all current EPA regulations on the RFS are
unchanged, except for the increase in the volume
mandated by Sec. 202.
[Sec. 210]
odiesel ReportNo provision.Requires the DOE to report to Congress on theNo comparable provision.
R&D challenges to expanding biodiesel use (to
an unspecified level)
[Sec. 221]
ogas ReportNo provision.Requires the DOE to report to Congress on theNo comparable provision.
R&D challenges to expanding biogas and
biogas/natural gas blends (to an unspecified
iki/CRS-RL34239level). [Sec. 222]
g/w
s.orants for BiofuelDOE is authorized to receive $25 millionDiscretionary appropriations of $25 millionNo comparable provision.
leakoduction and R&D inannually for FY2006-FY2010 for R&Dauthorized annually for FY2008-FY2010 for
and implementation of renewable fuelR&D and commercial application of biofuel
://wikiproduction technologies in states withproduction in states with low rates of ethanol and
httplow rates of ethanol production that areunder the federal reformulated gasolinecellulosic ethanol production (this could in effectapply to all states).
(RFG) program. [Sec. 223]
[P.L. 109-58, Sec. 1511(d)], [42 U.S.C.
7411]
orefinery EnergyThe DOE is directed to conduct researchAmends Sec. 932 of P.L. 109-58 to includeNo comparable provision.
ficiencyon commercial applications of biomassresearch on energy efficiency at biorefineries and
and bioenergy. on technology to convert existing corn-based
[P.L. 109-58, Sec. 932], [42 U.S.C.ethanol plants to process cellulosic materials.
16232][Sec. 224]
udy of Optimization ofNo provision.DOE is directed to study whether optimizingNo comparable provision.


ible Fueled Vehicles toflexible fuel vehicles (FFVs) to run on E85 would
e E-85 Fuelincrease their fuel efficiency. Current FFVs are
optimized to run on gasoline, since that tends to
be their primary fuel. [Sec. 225]

CRS-9
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
udy of Engine DurabilityNo current provision.DOE, in consultation with EPA, is directed toNo comparable provision.
ance Associatedstudy the effects of various biodiesel/diesel
th the Use of Biodieselblends on engine performance and durability.
[Sec. 226]
udy of Optimization ofNo prior provision.DOE is directed to study the potential forNo comparable provision.
ogas Used in Natural Gasoptimizing natural gas vehicles to run on biogas
(methane produced from biological feedstocks).
[Sec. 227]
gal BiomassVarious statutes promote biofuels R&D,DOE is required to report to Congress onNo comparable provision.
including the development of biofuelsprogress toward developing algae as a feedstock
from algae, at the Department of Energy.for biofuel production.
iki/CRS-RL34239[42 U.S.C. 16232][Sec. 228]
g/w
s.orofuels and BiorefineryNo prior provision.Directs DOE to establish a technology transferNo comparable provision.
leakormation Centercenter to provide information on biofuels and
biorefineries.
://wiki[Sec. 229]
httpsic Ethanol andNo prior provision.Authorizes the DOE to provide biofuels R&DNo comparable provision.
ofuels Researchgrants to 10 institutions from land-grant colleges,
Historically Black Colleges or Universities, tribal
serving institutions, or Hispanic serving
institutions. $50 million for FY2008 is authorized
to be appropriated, to be available until
expend ed.
[Sec. 230]
oenergy R&D -DOE is directed to conduct R&D onAmends Sec. 931 of P.L. 109-58 to authorize aNo comparable provision.


thorization ofbiomass, bioenergy, and bioproducts. total of $1.2 billion in discretionary
propriationDiscretionary appropriations of $213appropriations for FY2008-FY2010 for R&D on
million are authorized for FY2007, $251biomass, bioenergy, and bioproducts.
million for FY2008, and $274 million[Sec. 231]
for FY2009. [P.L. 109-58, Sec. 931(c)],
[42 U.S.C. 16232]

CRS-10
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
vironmental Research andDOE is required to establish a programDOE is required to expand the biological R&DNo comparable provision.
elopmentof research, development, andprogram established in Sec. 977 of P.L. 109-58 to
demonstration in microbial and plantinclude environmental effects, potential for
systems biology, protein science, andgreenhouse gas reductions, and the potential for
computational biology. Biomedicalmore sustainable agriculture. See also Sec. 233
research and research related to humansof EISA (below).
are not permitted as part of the program. [Sec. 232(a)]
[P.L. 109-58, Sec. 977], [42 U.S.C.
16232]
fecycle Analysis Tools forNo prior provision.DOE is required to study and develop tools forRequires USDA to support research on
nergyevaluating the lifecycle energy consumption andmaking a farm or ranch energy-neutral. [Sec.
iki/CRS-RL34239nsumption anduse Gas Emissionsthe potential for greenhouse gas emissions frombiofuels. 7207]
g/w Biofuels[Sec. 232(b)]
s.or
leakall-Scale Production andNo prior provision.Amends the Biofuels Research and DevelopmentRequires USDA support of on-farm energy
e of BiofuelsAct of 2000 to require the Secretary ofconservation and renewable energy
://wikiAgriculture to establish a R&D program toproduction. [Sec 7207]
httpfacilitate small-scale production and local and on-
farm use of biofuels.
[Sec. 232(c)]
oenergy Research CentersDOE is required to establish a programRequires the establishment of at least sevenNo comparable provision.


of R&D and demonstration of microbialresearch centers that focus on bioenergy to be
and plant systems biology, proteinincluded in the R&D program established in Sec.
science, and computational biology.977 of P.L. 109-58.
Biomedical research and research related[Sec. 233]
to humans are not permitted as part of
the program.
[Energy Policy Act of 2005, P.L. 109-
58, Sec. 977], [42 U.S.C. 16232]

CRS-11
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
ity Based ResearchNo prior provision.Requires DOE to establish a program ofNo comparable provision.
elopment Grantcompetitive grants to institutions of higher
education for research on renewable energy
technologies. Each grant may not exceed $2
million. A total of $25 million in discretionary
appropriations is authorized for the program.
[Sec. 234]
hibition on FranchiseNo prior provision.Amends the Petroleum Marketing Practices ActNo comparable provision.
ent Restrictions(15 U.S.C. 2801 et seq.) to make it unlawful for a
ted to Renewable Fuelfranchiser to prohibit a franchisee from installing
frastructureE85 or B20 tanks and pumps within the franchise
iki/CRS-RL34239agreement. [Sec. 241]
g/w
s.orable Fuel DispenserNo prior provision.DOE is required to report to Congress on theNo comparable provision.
leakents — Report tomarket penetration of flexible fuel vehicles and
son the feasibility of requiring fuel retailers to
://wikiinstall E85 infrastructure.
http[Sec. 242]
hanol Pipeline FeasibilityNo prior provision.DOE, in consultation with DOT, is required toNo comparable provision..
udyreport on the feasibility of constructing dedicated
ethanol pipelines. $1 million in discretionary
funds is authorized annually for FY2008 and
FY2009, to remain available until expended.
[Sec. 243]
able FuelNo prior provision.Directs DOE to provide grants for conversionNo comparable provision.


frastructure Developmentassistance, technical and marketing assistance,
and pilot programs to expand infrastructure for
ethanol/gasoline blends of between 11% and 84%
ethanol, and renewable fuel/diesel fuel blends of
at least 10% renewable diesel. Discretionary
funds of $200 million is authorized annually for

CRS-12
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
FY2008-FY2014.
[Sec. 244]
udy of the Adequacy of No prior provision.DOE, jointly with DOT, are required to report onNo comparable provision.
ansportation ofthe adequacy of railroads and modes for
mestically-Producedtransportation of domestically produced
able Fuel byrenewable fuel.
ilroads and Other Modes[Sec. 245]
ransportation
No prior provision.Requires the head of each federal agency toNo comparable provision.
install at least one renewable fuel pump at each
federal fleet refueling center by January 1, 2010.
iki/CRS-RL34239Further, the Administration is required to report
g/weach October 31 on progress toward meeting this
s.orrequirement. The requirement does not apply to
leakDepartment of Defense fueling centers with less
than 100,000 gallons in annual fuel turnover.
://wiki[Sec. 246]
httpandard Specifications forNo prior provision.If ASTM International (originally the AmericanNo comparable provision.
odieselSociety for Testing and Materials) has not
adopted standards for B5 and B20 within one
year of enactment, the EPA Administrator is
required to do so. No new funding is authorized.
[Sec. 247]
ofuels InfrastructureNo prior provision.Directs DOE to conduct an R&D program on theRequires joint USDA, DOE, EPA study on
effects of biofuels on existing transportation fuelthe infrastructure needs associated with
distribution systems. significant expansion in biofuels production
[Sec. 248]and use. [Sec. 9002]
Under Sec. 211(f) of the Clean Air Act,Prohibits the introduction of new renewable fuelsNo comparable provision.


ivesno new fuels or fuel additives may beor renewable fuel additives unless EPA explicitly
introduced into commerce unlessgrants a waiver under Sec. 211(f) of the Clean
granted a waiver by EPA. If EPA hasAir Act. EPA is required to take final action

CRS-13
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
not acted within 180 days of receipt of awithin 270 days of receipt of the waiver request.
waiver request, the waiver is treated asBefore the passage of EISA, inaction or failure to
granted. complete review of an additive by EPA allowed a
[42 U.S.C. 7545(f)]fuel to receive the waiver. Under EISA, no
waiver would be granted without explicit
approval by EPA.
[Sec. 251]
. 110-140, Title V Energy Savings in Government and Public Institutions
pitol Complex E-85No prior provision.The Architect of the Capitol is authorized toNo comparable provision.
ueling Stationinstall an E85 tank and pumping system on or
near the Capitol Grounds Fuel Station. $640,000
iki/CRS-RL34239in discretionary funds is authorized for FY2008.
g/w[Sec. 502]
s.or
leakent andNo prior provision.Federal agencies are prohibited from procuringNo comparable provision.
quisition of Alternativealternative or synthetic transportation fuels if the
://wikielslifecycle emissions exceed those of petroleum-
httpbased fuels.[Sec. 526]
. 110-140, Title VIII — Improved Management of Energy Policy
f Congress RelatingNo prior provision.Expresses the Sense of the Congress thatNo comparable provision.
e of Renewablerenewable resources from agriculture and forestry
ources to Generateshould provide at least 25% of all U.S. energy
ergyneeds by 2025.
[Sec. 806]
. 110-246, Title VII 2008 Farm Bill — Energy Provisions (excluding those cited in above sections)
oenergy ResearchProvides for research and developmentSection 1419 of the National Agricultural
appropriations for bioenergy.Research, Extension, and Teaching Policy
[7 U.S.C. 3154]Act of 1977 (7 U.S.C. 3154) is repealed.
Funding for related biomass research



CRS-14
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
through USDA is contained in Title VII Sec.
7207 of the farm bill.
[Sec. 7110]
ochar Research,No current provision.No comparable provision.Research on biochar (biomass charcoal)
velopment andproduction and sequestration is included as a
onstrationhigh-priority research and extension area the
Research Title. [Sec. 7204]
ioenergyThe Biomass Research and DevelopmentNo comparable provision.Establishes the Agricultural Bioenergy
tock and EnergyAct of 2000 (reauthorized by the 2002Feedstock and Energy Efficiency Research
ficiency Research andfarm bill) provides competitive fundingand Extension Initiative in Title VII
tension Initiativefor R&D and demonstration projects on(Research) to improve biomass, production,
iki/CRS-RL34239biofuels and bio-based chemicals andbiomass conversion in biorefineries, and
g/wproducts, administered jointly by USDAbiomass use. Provides grants of up to 50%
s.orand DOE. Specified mandatory CCCof cost for energy efficient research and
leakfunding of $5 million in FY2002 andextension projects. Establishes a best
$14 million annually for FY2003-practices database of biomass crops.
://wikiFY2007 to remain available untilAuthorized appropriations of $50 million
httpexpended. Also authorizedannually for FY2008-12. [Sec. 7207]
appropriations of $200 million for each
of FY2006-FY2015.
[P.L. 107-171, Sec. 9008], [7 U.S.C.
5925]
rch, Extension, andThe “Sun Grant” program established 5No comparable provision.Continues sun grant program. Provides
ucational Programs onnational sun grant research centers basedmatching grants to land grant institutions to
obased Energyat land-grant universities and eachdevelop, distribute, and implement biobased
logies and Productscovering a different region. The purposeenergy technologies and to promote
is to enhance coordination anddiversification and sustainability of
collaboration between USDA, DOE, andagricultural production, and economic
land-grant universities in thediversification in rural areas through
development, distribution, andbiobased energy and product technologies.
implementation of biobased energyEstablishes a Sun Grant Information
technologies. Authorized appropriationsAnalysis Center. Requires annual reports.



CRS-15
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
of $25 million in FY2005, $50 million inDiscretionary funds of $75 million for
FY2006, and $75 million annually forFY2008-12 are authorized. [Sec. 7526]
FY2007-FY2010. [7 U.S.C. 8109]
. 110-246, Title IX 2008 Farm Bill — Energy Provisions (excluding those cited in above sections)
ent ofUnder the 2002 farm bill, federalNo comparable provision.New section 9002. Renames as the
obased Productsagencies are required to purchaseBiobased Markets Program. Extends the
biobased products under certainprogram through FY2012 and refines federal
conditions. Current law authorizes aprocurement rules for biobased products.
voluntary biobased labeling program.Requires federal agencies to maximize
USDA regulations define biobasedprocurement of biobased products and
products, identify biobased productsubmit reports to Congress. Continues
iki/CRS-RL34239categories, and specify the criteriavoluntary labeling. Establishes testing
g/w(including testing) for qualifying thosecenters and education grants. Authorizes
s.orproducts for preferred procurement. mandatory funding of $1 million for
leakMandatory Commodity CreditFY2008 and $2 million annually for
Corporation (CCC) funding of $1FY2009-12. Discretionary funding of $2
://wikimillion was authorized for each ofmillion in annual appropriations is
httpFY2002-FY2007 for testing biobasedauthorized for FY2008-12.
products. [P.L. 107-171, Sec. 9002], [7[Sec. 9001]
U.S.C. 8102]
ustments to theOriginally a Clinton AdministrationNo comparable provision.New section 9005. Establishes the
oenergy Programinitiative, the Bioenergy Program wasBioenergy Program for Advanced Biofuels.
made statutory by the 2002 farm bill. Provides payments to producers to support
Provides CCC incentive payments toand expand production of advanced
biofuels producers based on year-to-yearbiofuels. Mandatory funding of $55 million
increases in the quantity of biofuelfor FY2009, $55 million for FY2010, $85
produced. Mandatory CCC funding ofmillion for FY2011, and $105 million for
$150 annually for FY2002-FY2006. NoFY2012. Authorizes additional
funding was available for FY2007. appropriation of $25 million annually for
[P.L. 107-171, Sec. 9010], [7 U.S.C.FY2009-12. [Sec. 9001]


8108]

CRS-16
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
odiesel Fuel EducationAwards competitive grants to nonprofitNo comparable provision.New section 9006. Extends the Biodiesel
organizations that educate governmentalFuel Education Program through FY2012.
and private entities operating vehicleProvides mandatory CCC funding of $1
fleets, and educate the public about themillion annually for FY2008-12. [Sec.
benefits of biodiesel fuel use. 9001]
Mandatory CCC funding of $1 million
annually was authorized for FY2003-
FY2007.
[P.L. 107-171, Sec. 9004], [7 U.S.C.
8104]
iki/CRS-RL34239ergy Audit andable EnergyThe 2002 farm bill authorized acompetitive grant program for eligibleNo comparable provision.New section 9007. Folds the Energy Auditand Renewable Energy Development
g/wvelopment Programentities to carry out a program to assistProgram into the Rural Energy for America
s.orfarmers, ranchers, and rural smallProgram. (See below.)
leakbusinesses in becoming more energy[Sec. 9001]
efficient and in using renewable energy
://wikitechnology and resources. Authorized
httpappropriations of such sums as are
necessary to carry out the program for
FY2002-FY2007.
[P.L. 107-171, Sec. 9005], [7 U.S.C.
8105]
able Energy SystemsAuthorizes loans, loan guarantees, andNo comparable provision.New section 9007. Renamed as the “Rural
nergy Efficiencygrants to farmers, ranchers, and ruralEnergy for America Program,” Funds
provementssmall businesses to purchase and installenergy audits for state agencies,
renewable energy systems and to makecooperatives, educational institutions and
energy efficiency improvements. utilities. Provides grants, loan guarantees
Mandatory CCC funding of $23 millionand incentive payments for energy
annually for FY2003-FY2007. efficiency and renewable energy, and
[P.L. 107-171, Sec. 9006], [7 U.S.C.manure-to-energy projects. Reserves 20%
8106]for small projects. Mandatory funds of $55
million for FY2009, $60 million for



CRS-17
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
FY2010, $70 million for FY2011, and $70
million for FY2012. Discretionary
appropriations of $25 million annually for
FY2009-12 are authorized. [Sec. 9001]
omass Research andSection 9008. The program createdNo comparable provision.New section 9008. Defines biobased
elopmentoriginally under the Biomass Researchproduct. Provides for coordination of
and Development Act (BRDA) of 2000 biomass research and development between
— provides competitive funding forUSDA and DOE. Establishes the Biomas
research, development, andResearch and Development Board and the
demonstration projects on biofuels andBiomass Research and Development
bio-based chemicals and products,technical Advisory Committee to assist the
iki/CRS-RL34239administered jointly by USDA and DOE. Specified mandatory CCC funding of $5Board in coordinating biomass research inthe Federal government. USDA and DOE
g/wmillion in FY2002 and $14 million forare to establish a Biomass Research and
s.oreach of FY2003 through FY2007Development Initiative to competitively
leak(available until expended). award grants, contracts, and financial
Additional appropriation authority ofassistance for research on biofuels and
://wiki$200 million for each of FY2006biobased products production, and biobased
httpthrough FY2015. [7 U.S.C. 8101]feedstocks and development. Grants are to
be awarded to universities, national
laboratories, state and federal research
agencies, private businesses, and nonprofits.
Mandatory funding is authorized of $20
million for FY2009, $28 million for
FY2010, $30 million for FY2011, and $40
million for FY2012. Discretionary funding
of $35 million annually is authorized to be
appropriated for FY2009-12. [Sec. 9001]
nergy Self-No current provision.No comparable provision.New section 9009. Establishes the Rural
nitiative GrantEnergy Self-Sufficiency Initiative, providing
cost- share (up to 50%) grants to assist rural
communities with community-wide energy
systems that reduce conventional energy use



CRS-18
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
and increase the use of energy from
renewable sources. Grants are made
available to assess energy use in a rural
community, evaluate ideas for reducing
energy use, and develop and install
integrated renewable energy systems.
Authorizes $5 million in discretionary funds
annually for FY2009-12. [Sec. 9001]
ock FlexibilityNo current provision.No comparable provision.New section 9010. Establishes the
for BioenergyFeedstock Flexibility Program, authorizing
the use of such sums as necessary of CCC
iki/CRS-RL34239funds to purchase surplus sugar, to ensurethe sugar program operates at no-net-cost, to
g/wbe resold as a biomass feedstock to produce
s.orbioenergy. [Sec. 9001]
leak
nancial Assistance for theNo current provision.No comparable provision.New section 9011. Establishes the Biomass
://wikiuction of BiomassCrop Assistance Program (BCAP) to
httpergy Crops andencourage biomass production or biomass
frastructure forconversion facility construction with
rvesting, Storage, and contracts which will enable producers to
ansportation of Biomassreceive financial assistance for crop
ocal Biorefineriesestablishment costs and annual payments for
biomass production. Producers must be
within economically practicable distance
from a biomass facility. Also provides
payments to eligible entities to assist with
costs for collection, harvest, storage and
transportation to a biomass conversion
facility. A report is required no later than 4
years after enactment. CCC funds of such
sums as necessary are to be made available
for each of FY2008-12. [Sec. 9001]



CRS-19
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
t Biomass for EnergyNo current provision.No comparable provision.New section 9012. Requires the Forest
Service to conduct a competitive research
and development program to encourage use
of forest biomass for energy. Priority given
to projects that utilize low-value forest by-
products, integrate the production of energy
from forest biomass with existing
manufacturing streams, develop new
transportation fuels from forest biomass, or
improve the production of forest biomass
feedstocks. Appropriations of $15 million
per year are authorized for FY2009-12.
iki/CRS-RL34239[Sec. 9001]
g/wmmunity Wood EnergyNo current provision.No comparable provision.New section 9013. Establishes the
s.orD ProgramCommunity Wood Energy R & D Program,
leakproviding grants of up to $50,000 for up to
50% of the cost for communities to develop
://wikiwood energy plans and purchase systems for
httppublic buildings. Authorizes $5 million in
discretionary funds annually (FY2009-12).
[Sec. 9001]
No current provision.No comparable provision.Requires a report with 1 year of
udyappropriations on the production of fertilizer
from renewable energy sources in rural
areas. Must identify challenges to
commercialization of rural fertilizer
production, processes and technologies and
potential impacts of renewable fertilizer on
fossil fuel use and the environment.
Appropriations of $1 million are authorized
for FY2009. [Sec. 9003]]



CRS-20
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
. 110-246, Title XI 2008 Farm Bill — Energy Provisions (excluding those cited in above sections)
udy on BioenergyNo comparable provision.No comparable provision.Directs USDA to produce a report on the
potential economic issues (including costs)
associated with animal manure used in
normal agricultural operations and as a
bioenergy feedstock. [Sec. 11014]
. 110-246, Title XV 2008 Farm Bill — Energy Provisions (excluding those cited in above sections)
x Credit for Production ofAll fuel ethanol is allowed a tax credit ofNo comparable provision.Establishes a credit of $1.01 for blenders of
sic Alcohol$0.54 per gallon, regardless ofcellulosic biomass alcohol through
feedstock. Small producers may claim anDecember 31, 2012. The value of the credit,
iki/CRS-RL34239additional credit of $0.10 per gallon. plus the existing small ethanol producer
g/w[26 U.S.C. 40], [26 U.S.C. 40(d)(4)]credit and alcohol fuels credits cannotexceed $1.01 per gallon. [Sec. 15321]
s.or
leakodification of Alcohol TaxThe American Jobs Creation Act of 2004No comparable provision.In the first calendar year after EPA certifies
://wikiestablished a tax credit for the use ofethanol used as motor fuel. The credit isthat 7.5 billion gallons of renewable fuelhave been blended into gasoline, the credit is
httpvalued at $0.51 per gallon of ethanolreduced from $0.51 to $0.45 per gallon.
blended into gasoline. [Sec. 15331]
[P.L. 108-357, Sec. 301], [26 U.S.C.
40(d)(4)]
lculation of Volume ofCurrently, any denaturant added toNo comparable provision.For the purposes of calculating the per-
ax Creditsalcohol (up to 5%) is considered as partgallon credit for the volume of alcohol used
of the volume of alcohol for taxas a fuel or in a qualified mixture, the
purposes.volume of alcohol includes any denaturant,
[26 U.S.C. 40(d)(4)]including gasoline. This provision reduces
the amount of allowable denaturant (added
to make it unfit for human consumption) to
2% of the volume of the alcohol. [Sec.
15332]
hanol Tariff ExtensionIn general, fuel ethanol imports areNo comparable provision.Extends the $0.54 cent per gallon duty



CRS-21
TopicCurrent or Prior LawEnergy Independence and Security Act 2008 Farm Bill
(P.L. 110-140)(P.L. 110-246)
subject to a $0.54 per gallon duty and athrough December 31, 2010. [Sec. 15333]
2.5% ad valorem tariff. The duty expires
January 1, 2009. [P.L. 99-499]
[19 U.S.C. 3001 et seq.]
ination and ReductionsCurrently, if a manufacturer imports anNo comparable provision.Duty drawback will not be available on
uty Drawback onintermediate product then exports theexports which do not contain ethanol. Ends
ain Imported Ethanolfinished product or a similar product,the practice in which imported ethanol is
that manufacturer may be eligible for ablended with gasoline and jet fuel
refund (drawback) of up to 99% of the(containing no ethanol, but considered a
duties paid. The duty drawbacklike commodity” to the finished gasoline) is
provisions include special provisions forthen exported to qualify for the drawback in
iki/CRS-RL34239the production of petroleum derivatives.[19 U.S.C. 1313(p)]lieu of finished gasoline containing theoriginally imported ethanol. [Sec. 15334]


g/w
s.or
leak
://wiki
http