Renewable Energy Policy in the 2008 Farm Bill

Renewable Energy Policy in the 2008 Farm Bill
Updated September 17, 2008
Tom Capehart
Specialist in Agricultural Policy
Resources, Science, and Industry Division

Renewable Energy Policy in the 2008 Farm Bill
The Food, Conservation, and Energy Act of 2008 (P.L. 110-246, the 2008 farm
bill) extends and expands many of the renewable energy programs originally
authorized in the 2002 farm bill. The bill also continues the emphasis on the research
and development of advanced and cellulosic bioenergy authorized in the 2007 Energy
Independence and Security Act (P.L. 110-140).
Farm bill debate over U.S. biomass-based renewable energy production policy
focused mainly on the continuation of subsidies for ethanol blenders, continuation
of the import tariff for ethanol, and the impact of corn-based ethanol on agriculture.
The enacted bill requires reports on the economic impacts of ethanol production,
reflecting concerns that the increasing share of corn production being used for
ethanol is contributing to high commodity prices and food price inflation.
Title VII, the research title of the 2008 farm bill, contains numerous renewable
energy related provisions that promote research, development, and demonstration of
biomass-based renewable energy and biofuels. The Sun Grant Initiative coordinates
and funds research at land grant institutions on biobased energy technologies. The
Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension
Initiative provides support for on-farm biomass energy crop production research and
Title IX, the energy title of the farm bill, authorizes mandatory funds of $1.1
billion and discretionary funds (subject to appropriations) totaling $1.0 billion for the
FY2008-FY2012 period. Energy grants and loans provided through initiatives such
as the Bioenergy Program for Advanced Biofuels promote the development of
cellulosic biorefinery capacity. The Repowering Assistance Program supports
increasing efficiencies in existing refineries. Programs such as the Rural Energy for
America Program (REAP) assist rural communities and businesses in becoming more
energy-efficient and self-sufficient, with an emphasis on small operations. The
Biomass Crop Assistance and Development Program, the Biorefinery Assistance
Program, and the Forest Biomass for Energy Program provide support to develop
alternative feedstock resources and the infrastructure to support the production,
harvest, storage, and processing of cellulosic biomass feedstocks. Cellulosic
feedstocks — for example, switchgrass and woody biomass — are given high priority
both in research and funding.
Title XV of the 2008 farm bill contains tax and trade provisions. It continues
current biofuels tax incentives, reducing those for corn-based ethanol but expanding
tax credits for cellulosic ethanol. The tariff on ethanol imports is extended.

Background ..................................................1
Major Energy Provisions in the 2008 Farm Bill......................3
Energy Policy Issues in the 2008 Farm Bill .........................4
Cellulosic Ethanol.........................................4
Economic Impacts of Ethanol Production.......................5
Funding for Energy Programs....................................5
List of Tables
Table 1. 2008 Farm Bill (P.L. 110-246): Authorized Funding for
Energy Provisions, FY2008-FY2012...............................6
Table 2. 2002 Farm Bill Title IX Energy Funding (Presidential Request,
Authorization, and Enactment), by Provision, FY2002 to FY2007........8
Table A-1. Comparison of the Enacted 2008 Farm Bill (P.L. 110-246) with
Previous Law and the House- and Senate-Passed 2008 Farm Bill
(H.R. 2419)..................................................9

Renewable Energy Policy
in the 2008 Farm Bill
Renewable energy policy in the 2008 farm bill builds on earlier programs first
established in the 2002 farm bill. The Farm Security and Rural Investment Act of
2002 (P.L. 107-171, FSRIA) was the first omnibus farm bill to explicitly include an
energy title (Title IX). The energy title authorized grants, loans, and loan guarantees
to foster research on agriculture-based renewable energy, to share development risk,
and to promote the adoption of renewable energy systems.1 For example, the U.S.
Department of Agriculture’s (USDA’s) Bioenergy Program (Sec. 9006 of P.L.
107-171) — whose funding expired in FY2006 — provided direct incentives to
expand actual production of bioenergy. See Table 2 for a list of provisions in the

2002 farm bill’s energy title and their funding levels.

Since enactment of the 2002 farm bill, interest in renewable energy has grown
rapidly, due in large part to a strong rise in domestic and international petroleum
prices and a dramatic acceleration in domestic biofuels production (primarily corn-
based ethanol).2 Many policymakers view agriculture-based biofuels as both a
catalyst for rural economic development and a response to growing energy import
dependence. Ethanol and biodiesel, the two most widely used biofuels, receive
significant federal support in the form of tax incentives, loans and grants, and
regulatory programs.3
The 2008 farm bill became law six months after the enactment of the Energy
Independence and Security Act of 2007 (EISA, P.L. 110-140), and many of its
provisions also build on the goals of EISA.4 The emphasis on facilitating production
of biofuels derived from cellulosic feedstocks reflects the goals of the renewable
fuels standard (RFS) in EISA. It includes a significant expansion of the RFS to 36
billion gallons by 2022, with carve-outs for biodiesel (1 billion gallons by 2012) and
cellulosic ethanol (16 billion gallons by 2022) and an implicit cap on corn-starch

1 For more information, see CRS Report RL32712, Agriculture-Based Renewable Energy
by Randy Schnepf. For details of previous law, see USDA, 2002 Farm Bill, “Title IX —
Energy,” available at [].
2 For more information on agriculture and bioenergy, see CRS Report RL32712,
Agriculture-Based Renewable Energy Production; and CRS Report RL33290, Fuel Ethanol:
Background and Public Policy Issues, by Brent Yacobucci.
3 For a listing of federal incentives in support of biofuels production, see CRS Report
RL33572, Biofuels Incentives: A Summary of Federal Programs, by Brent D. Yacobucci.
4 For more information, see CRS Report RL34294, Energy Independence and Security Act
of 2007: A Summary of Major Provisions, coordinated by Fred Sissine.

ethanol (15 billion gallons by 2015). This RFS expansion is likely to have a
significant impact on the U.S. agriculture sector.5
The emphasis on cellulosic ethanol also reflects increasing concerns about the
economic and environmental issues associated with corn-starch-based ethanol.
Record high commodity prices in 2007 and 2008 combined with high energy costs
have resulted in sharp increases in livestock feed costs, export prices, and domestic
food price inflation. For the first time, an agricultural commodity is directly
competing with petroleum in the marketplace. Ethanol production, the profitability
of which depends directly on both petroleum and corn prices, accounts for about a
third of U.S. corn production. The increase in corn used for U.S. ethanol production
exceeds the increase in corn produced during the past three years. Today, as
petroleum prices rise so has demand for ethanol as a substitute, which in turn
increases both the demand for and price of corn. The “food versus fuel” debate
intensified during the farm bill debate as food price inflation accelerated both in the
U.S. and globally — highlighting some of the potential problems associated with
replacing even a small share of the nation’s gasoline consumption with corn-based
ethanol. Competition for limited corn supplies between livestock producers, ethanol
refiners, exporters, and other domestic users have resulted in calls for at least a partial
waiver of the RFS in 2009.6
Cellulosic ethanol is produced from cellulose, hemicellulose, or lignin which
is derived from the structural material that provides much of the mass of plants.
Cellulosic ethanol is produced from non-food crops and trees that can be grown on
marginal land with low inputs, and appears to offer environmental benefits over
corn-based ethanol.7 Common sources are grasses, corn stover, and wood chips.
Many of the federal programs that currently support renewable energy
production in general, and agriculture-based energy production in particular, are
outside the purview of USDA and have legislative origins outside of the farm bill.8
For example, the RFS mandates the inclusion of an increasing volume of biofuels in
the national fuel supply. This originated with the Energy Policy Act of 2005 (P.L.
109-58) and was more recently expanded in EISA. Similarly, the federal tax credits
available to biofuels blenders and wind energy producers were initially contained in

5 For more information, see CRS Report RL34265, Seclected Issues Related to an Expansion
of the Renewable Fuel Standard (RFS), by Brent Yacobucci and Tom Capehart.
6 In April 2008, Texas Gov. Rick Perry wrote the Environmental Protection Agency seeking
a waiver from the federal ethanol mandate, noting its contribution to higher food prices and
dire impact on the cattle industry. Also, see CRS Report RS22870, Waiver Authority Under
the Renewable Fuel Standard (RFS), by Brent D. Yacobucci.
7 For more information see CRS Report RL33928, Ethanol and Biofuels: Agriculture,
Infrastructure, and Market Constraints Related to Expanded Production, by Brent
Yacobucci and Randy Schnepf.
8 For more information see CRS Report RL32712, Agriculture-Based Renewable Energy.
For a complete listing of renewable energy legislative proposals introduced during the 110th
Congress, see CRS Report RL33831, Energy Efficiency and Renewable Energy Legislationth
in the 110 Congress, by Fred Sissine, Anne Gillis, and Mark Gurevitz.

the American Jobs Creation Act of 2004 (P.L. 108-357) but have now been moved
to the farm bill.
Major Energy Provisions in the 2008 Farm Bill
The Food, Conservation, and Energy Act of 2008 (P.L. 110-246, H.R. 6124),
enacted in June 2008,9 significantly expands existing programs to promote biofuels.
Like the previous farm bill, it 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 and trade
provisions are found in Title XV.
The final 2008 farm bill keeps the structure of Title IX as it was in the Senate-
passed version of the farm bill. Title IX serves as a substitute amendment to the
2002 farm bill Title IX and consists of 3 sections. The first section, 9001, contains
13 new provisions which effectively replace the provisions of the 2002 bill. (See
Table A-1 for a side-by-side comparison of previous law with the energy titles from
the enacted farm bill and the House- and Senate-passed versions of the 2008 farm
Key biofuels-related provisions in the enacted 2008 farm bill include:
!emphasis on cellulosic ethanol production through new blender’s
tax credits, promotion of cellulosic feedstocks production,
feedstocks infrastructure and refinery development;
!grants and loan guarantees for biofuels (especially cellulosic)
research, development, deployment, and production;
!studies of the market and environmental impacts of increased
biofuel use;
!expansion of biofuel feedstock availability;
!expansion of the existing biobased marketing program to
encourage federal procurement of biobased products;
!support for rural energy efficiency and self-sufficiency;
!reauthorization of biofuels research programs within the U.S.
Department of Agriculture and Environmental Protection
!an education program to promote the use and understanding of
!reduction of the blenders’ tax credit for corn-based ethanol;

9 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.

!continuation and expansion of the federal bio-products
certification program;
!environmental safeguards through greenhouse gas emission
requirements on new biofuel production, and
!continuation of the import duty on ethanol.
Energy Policy Issues in the 2008 Farm Bill
Cellulosic Ethanol. The 2008 farm bill energy title provides $1 billion in
financial incentives and support to encourage the production of advanced (mainly
cellulosic) biofuels.10 Grants and loan guarantees leverage industry investments in
new technologies and the production of cellulosic feedstocks. For instance, the
Biomass Crop Assistance Program supports the production of dedicated crop and
forest cellulosic feedstocks and provides incentives for harvest and post production
storage and transport. Advanced biofuels refinery capacity construction is assisted
under the Biorefinery Program for Advanced Biofuels through grants and loans for
the development, construction, and retrofitting of commercial-scale refineries to
produce advanced biofuels. These programs are supported by increased funding for
advanced biofuels research under the Agricultural Bioenergy Feedstock and Energy
Efficiency Research and Extension Initiative, and the Sun Grant Program which
support and coordinate advanced biofuels research, extension, and development
between government agencies, universities, and research institutions.
Currently, cellulosic ethanol is not produced on a commercial scale. As of July
2008, there was one commercial scale refinery under construction, two
demonstration- scale plants and three pilot-scale plants completed. There are 39
additional plants either under construction or in the planning stage.11 Industry
sources expect commercial production of cellulosic ethanol to begin in 2009 or 2010.
The RFS mandates cellulosic ethanol production of 100 million gallons in 2010.
Tax Credits and Tariffs. Title XV of the farm bill contains provisions which
extend and modify tax credits and tariffs on ethanol. In keeping with the promotion
of cellulosic ethanol, a blenders’ credit of $1.01 per gallon applies to ethanol
produced from qualifying cellulosic feedstocks. This tax credit is intended to spur
investment in cellulosic ethanol production. The existing ethanol blenders’ tax credit
of $0.54 per gallon (which applies to all ethanol blended, including imports) falls to
$0.45 per gallon the first year following that year in which U.S. ethanol production
and imports exceed 7.5 billion gallons. It is expected that production and imports in
2008 will exceed 7.5 billion gallons and the tax credit will be reduced beginning in


10 Advanced biofuels include biofuels derived from cellulosic feedstocks; sugar and starch
other than corn kernel-starch; waste material including crop residue, animal, plant, or food
waste; diesel fuel produced from renewable biomass including vegetable oil and animal fat;
butanol or other alcohols produced through the conversion of organic matter; and other fuels
derived from cellulosic biomass.
11 Cellulosic Biofuels Fact Sheet, Environmental and Energy Study Institute, July 2008.

The import tariff for ethanol benefits the U.S. ethanol industry by protecting
U.S. ethanol from lower cost imports. The tariff also keeps imported ethanol from
benefitting from the blenders’ tax credit when it is blended into gasoline in the
United States. The tariff of $0.54 per gallon which was set to expire at the end of

2008 is now extended to the end of 2010.

Economic Impacts of Ethanol Production. The impact of increased
ethanol production on agricultural and rural economies was a subject of debate
during the farm bill process. As a result, the farm bill includes provisions requiring
a series of reports assessing how ethanol production may be impacting the farm
economy, the environment, and consumer food prices. Among these are the
Comprehensive Study of Biofuels (to be conducted by the U.S. Department of
Agriculture (USDA), the Environmental Protection Agency (EPA), the Department
of Energy (DOE), and the National Academy of Sciences) and the Biofuels
Infrastructure Study by USDA, DOE, Department of Transportation (DOT), and
EPA. The Biomass Crop Assistance Program requires an assessment of the
economic impacts of expanded cellulosic biomass production on local economies and
infrastructures. Likewise, the Biomass Research and Development Program requires
a report on the economic impacts of rural economies of biorefinery expansion and
conversion by USDA.
Funding for Energy Programs
Table 1 illustrates mandatory and discretionary spending levels for renewable
energy programs in the 2008 farm bill. Title IX authorizes $1.1 billion in mandatory
funding for FY2008 through FY2012, compared with $800 million in the 2002 farm
bill in (FY2002-FY2007).12 Of the mandatory funding, $320 million was allocated
to the Biorefinery Assistance Program, $300 million to the Bioenergy Program for
Advanced Biofuels and $255 million to the Rural Energy for America Program
(REAP). Authorizations for appropriations in the 2008 farm bill total $1 billion, four
times the $245 million in the 2002 farm bill. Most of the increase is for the
Biorefinery Assistance Program, which has an authorization $600 million higher than
in the 2002 farm bill. Table 2 provides a list of provisions in the 2002 farm bill’s
energy title for FY2002 through FY2007 and their funding levels (as requested by the
President, and as authorized and provided by Congress).

12 Mandatory funds are authorized and provided by legislation. Discretionary funds must
be appropriated annually.

Table 1. 2008 Farm Bill (P.L. 110-246):
Authorized Funding for Energy Provisions, FY2008-FY2012
le IXSum:
ionsSection and Provision NameFunding StatusFY2008FY2009FY2010FY2011FY2012FY08-FY12
———————— $ millions—————— —
I - Research
Nutrient Management Research DiscretionarySSANSSANSSANSSANSSANSSAN
and Extension Initiative
Bioenergy Feedstock and Energy Efficiency ResearchDiscretionary05050505020
iki/CRS-RL34130 and Extension Initiative
g/wSun Grant ProgramDiscretionary7575757575375
s.orX Energy
leakBiobased Markets ProgramMandatory122229
://wiki Additional funding authorizationDiscretionary022228
httpBiorefinery AssistanceMandatory07524500320
Additional funding authorizationDiscretionary0150150150150600
Repowering AssistanceMandatory03500035
Additional funding authorizationDiscretionary01515151560
Bioenergy Program for Advanced BiofuelsMandatory0555585105300
Additional funding authorizationDiscretionary025252525100
Biodiesel Fuel Education ProgramMandatory111115
Rural Energy for America ProgramMandatory055607070255
Additional funding authorizationDiscretionary025252525100

le IXSum:
ionsSection and Provision NameFunding StatusFY2008FY2009FY2010FY2011FY2012FY08-FY12
———————— $ millions—————— —
Biomass Research and Development ActMandatory020283040118
Additional funding authorizationDiscretionary035353535140
Rural Energy Self-Sufficiency InitiativeMandatory00000
Additional funding authorizationDiscretionary0555520
Feedstock Flexibility Program for Bioenergy ProducersMandatory00000
Additional funding authorizationDiscretionarySSANSSANSSANSSANSSAN SSAN
Biomass Crop Assistance ProgramDiscretionarySSANSSANSSANSSANSSAN SSAN
Forest Biomass for EnergyDiscretionary01515151560
Community Wood Energy ProgramDiscretionary055552
iki/CRS-RL34130Renewable Fertilizer StudyDiscretionary010001
g/wTotal Discretionary FundingDiscretionary$140$418$417$417$417$1,809
s.orTotal Mandatory FundingMandatory$2$243$391$188$218$1,042
leak P.L. 110-246 (Food and Energy Security Act of 2008.
://wikiN” = Such sums as necessary.


Table 2. 2002 Farm Bill Title IX Energy Funding (Presidential Request, Authorization, and Enactment),
by Provision, FY2002 to FY2007d
FY2002 FY2003 FY2004 FY2005 FY2006 FY2007
Pres. a Pres. a Pres. a Pres. a Pres. a Pres. a
Current law provisionReq.Auth.Enact.Req.Auth.Enact.Req.Auth.Enact.Req.Auth.Enact.Req.Auth.Enact.Req.Auth.Enact.
$ millions$ millions$ millions$ millions$ millions$ millions
Federal Biobased Product111111111111111110
Biorefinery Development Grants 0SSAN00SSAN00SSAN00SSAN00SSAN00SSAN0
Biodiesel Fuel Education Program111111111111111110
Energy Audit and Renewable Energy0SSAN00SSAN00SSAN00SSAN00SSAN00SSAN0
Renewable Energy Systemsb2323231823233232311232310232310230
Hydrogen and Fuel Cell Technologies0SSAN00SSAN00SSAN00SSAN00SSAN00SSAN0
iki/CRS-RL34130Biomass Research and Developmentc55451463141463141463141221412122140
g/wCooperative Research and Extension000000000000000000
s.orP r oj ects
leakContinuation of Bioenergy Program0001501501161501501501001501006015060000
://wikiTotal Energy Programs3079301842381551692381891272381398438997242390
httpnt program with the Department of Energy.
Pres. Req.” = Presidential request; “Auth.” = Farm bill authorized level; “Enact.” = Enacted; “SSAN” = Such sums as necessary. Sec. 9003 and Sec. 9005 were not
epresents a combination of the amount authorized by the 2002 Farm Bill, less any reductions in annual appropriations acts, plus discretionary funding provided where
he Deficit Reduction Act of 2005 (P.L. 109-171) reduced Sec. 9006 mandatory funding by $20 million in FY2007, leaving $3 million as the authorized level for FY2007.
ection 310 (7 U.S.C. 8609) of the Biomass Research and Development Act of 2000 (P.L. 106-224) provides discretionary authorization of $200 million for each of FY2006
ugh FY2015.
mplete data on appropriations by program is not yet available.

Table A-1. Comparison of the Enacted 2008 Farm Bill (P.L. 110-246) with Previous Law and the
House- and Senate-Passed 2008 Farm Bill (H.R. 2419)
2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
tle VII: Agricultural Research and Extension
rient Management Research and Extension Initiative
ion 1673(h) of the Food, Agriculture,Extends the nutrient managementExtends program through FY2012. [Sec.The Conference substitute adopts the
nservation, and Trade Act of 1990research and extension initiative through7103]House provision with an amendment to
. 101-624) authorized matching2012 and adds dairy cattle waste as ainclude the production of renewable
ants under the farm bill nutrienttype of waste to be studied. Theenergy from animal waste as an eligible
nagement research and extensionauthorization of appropriations for suchactivity to receive grants under this
e for finding innovative methodssums as necessary is extended annuallysection. Authorizes such sums as
d technologies for economic use orfor FY2008-12. [Sec. 7307]necessary annually for FY2007-12. [Sec.
posal of animal waste. Extended7205]
ough 2007 in section .7120 of the
iki/CRS-RL34130arm bill. Such sums as necessaryre appropriated annually for FY1999-
g/w2007. [7 U.S.C. 5925a]
leakricultural Bioenergy Feedstock and Energy Efficiency Research and Extension
ia t i v e
://wiki Provision.Initiates multi-regional biomass cropNew section 9010 of FSRIA. RegionalEstablishes the Agricultural Bioenergy
httpexperiments with a network ofBiomass Crop Experiments. EstablishesFeedstock and Energy Efficiency
laboratories to provide a sounda program of regional biomass cropResearch and Extension Initiative, a
knowledge base on the production ofexperiments at 10 geographicallyprogram to award competitive matching
biomass energy crops, including cropdispersed and competitively selected(up to 50%) grants for projects with a
species, nutrient requirements,land-grant universities. Individual grantsfocus on supporting on-farm biomass
management practices, environmentaltotal $4 million for FY2008-10.Cropcrop research and the dissemination of
impacts, greenhouse gas implications,experiments are to include all appropriateresults to enhance the production of
and economics. Competitive grants to bebiomass species, including perennials,biomass energy crops and the integration
awarded to a network of laboratories. annuals, and woody biomass species inof such production with the production of
Discretionary appropriations authorizedcoordination with the Biomass Researchbioenergy. Discretionary appropriations
of $50 million annually FY2008-12. and Development Board and with theof $50 million annually are authorized
[Sec 7410]Sun Grant Centers. Establishes a “bestfor FY2008-12. [Sec. 7207]

practices”database on all aspects of
biomass crop production. Mandatory
CCC funding of $10 million in FY2008,
$20 million in FY2009, and $10 million
in FY2010. [Sec. 9001]

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
Century Farm Project
provision.No provision.New section 9011 of FSRIA. EstablishesThe purpose of this section Is
the New Century Farm Project to serve asincorporated in section 7207.
a model farm. Authorizes appropriations
of $15 million for FY2008 through
FY2012, to remain available until
expend ed.
ochar Research, Development, and Demonstration
provision.No provision.New section 9012 of FSRIA. Creates aThe purpose of this section Is
program of competitive grants forincorporated in the as a research priority
research and demonstration of thein section 7203.
production and use of biochar in the
agricultural sector. Provides
iki/CRS-RL34130discretionary funding of $3 million foreach of FY2008 through FY2012. [Sec.
g/w 9001]
leak Energy Production Pilot Program
://wiki provision.Farm Energy Production Pilot Program. Provides grants to farmers to demonstrateNo provision.The purpose of this section Isincorporated in the Agricultural
httpthe feasibility of making a farm energyBioenergy and Biobased Products
neutral using existing technologies. Research Initiative of section 7207.
Discretionary funds of $5 million are
authorized to be appropriated for
FY2008-12. [Sec. 9010]
Energy Production Pilot Program
provision.Provides grants of not more than $1No provision.The purpose of this section Is
million to no more than 20 universities toincorporated in the Agricultural
develop a 3-year demonstration programBioenergy and Biobased Products
of supplementing corn as an ethanolResearch Initiative of section 7207.

feedstock with sweet sorghum and
switchgrass. Discretionary funds of $20
million are authorized for FY2008-
FY2012. [Sec. 9020]

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
rch and Development of Renewable Energy
comparable provision.No comparable provision.New section 9022 of FSRIA. USDA willThe purpose of this section Is
conduct research, with the Coloradoincorporated in the Agricultural
Renewable Energy Collaboratory,Bioenergy and Biobased Products
relating to various aspects of renewableResearch Initiative of section 7207.
energy including biomass crops adapted
to arid and semi-arid regions, and storage
and conversion technologies for wind
and solar energy. Authorizes
discretionary funding of $5 million for
each of FY2008 through FY2012.
Additional discretionary funding of $110
million to USDA Under Secretary for
Research, Education, and Economics for
iki/CRS-RL34130cellulosic biofuel research for each ofFY2008 through FY2012; and additional
g/wdiscretionary funding of $110 million to
s.orUSDA/DOE for development of
leaksmall-scale biorefineries for each of
FY2008 through FY2012.[Sec. 9001]
://wikirtheast Dairy Nutrient Management and Energy Development Program
provision.No provision.New section 9023 of FSRIA. EstablishesThe purpose of this section Is
USDA program to provide grants to aincorporated in section 7204.
consortium of Northeast U.S. land-grant
colleges and universities to conduct
research, extension, and demonstration
projects for dairy nutrient management
and energy development . Authorizes
discretionary funding of such sums as are
necessary. [Sec. 9001]
steads Program
provision.Section 9015. Establishes a program toNew section 9025 of FSRIA. Same asThe purpose of this section Is
equip a farm entity (house and lands), inHouse bill. [Sec. 9001]incorporated in the Agricultural
each of 5 regions of the country, withBioenergy and Biobased Products
technologies to improve farm energyResearch Initiative of section 7207.

production and use efficiencies. Each
designated entity would serve as a

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
working example to farmers and as an
educational, research, and demonstration
facility for research related to renewable
energy or energy conservation
technologies. Authorizes appropriations
of such sums as are necessary to carry
out the program.
rant Program
ion 9011. This provision was addedAdds a Sun Grant center at the UniversityNew section 9009 of FSRIA. Adopts the Senate provision with
bsequent to the 2002 farm bill underof Hawaii. Reauthorizes the Sun GrantReauthorizes the Sun Grant Programthamendments and moves the provision in
n Grant Research Initiative Act ofprogram through FY2012 withthrough FY2012 and establishes a 6statute to the research title of this act. No
tablishes 5 national Sun Grantauthorized discretionary appropriationsregional center — Western Insularmandatory funding is provided. The
earch centers based at land-grantof $75 million for each of FY2008-12,Pacific Sub-Center — at the Universityconference substitute authorizes $75
iversities, each covering a differentfor a total in discretionary funding ofof Hawaii. Provides, for the first time,million per year for FY2008-FY2010.
iki/CRS-RL34130tional region, to enhance coordination$375 million. [Sec. 9008]mandatory funding for the Sun Grant[Sec. 7526]
g/wd collaboration between USDA, DOE,program of $5 million in FY2008, $10
s.ord land-grant universities in themillion in each of FY2009 and FY2010
leakelopment, distribution, and(available until expended) for a total of
plementation of biobased energy$25 million for FY2008-12. Also
://wikinologies. Competitive grants areailable to land-grant schools withinauthorizes appropriations of $70 millionin each of FY2008-12. [Sec. 9001]
http region. Authorized appropriations
$25 million in FY2005, $50 million in
d $75 million for each of
2006 through FY2010 for total
cretionary funding of $375 million
ring FY2005-10. [7 U.S.C. 8109]
: Energy
efines Administrator,No changes to definitions. [Sec. 9001] Sec. 9001. Adds several definitionsNew section 9001 of FSRIA. Adopts the
omass, Biobased Product, Procuringincluding Senate definitions with amendments.
ency, Renewable Energy, Rural SmallAdvanced Biofuels,” which excludesAdvanced biofuels includes aviation, jet,
siness, and Secretary. [7 U.S.C. 8101]any fuel derived from corn starch, butand heating fuels made from cellulosic
includes ethanol derived from other plantbiomass. [Sec. 9001]

starches (e.g., sorghum), sugar, as well as
cellulosic biomass or organic waste; it
also includes organically-derived biogas,

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
butanol or other alcohols; and, notably,
Other definitions include Biobased
Product; Biomass Conversion Facility,
Biorefinery, Intermediate Ingredient or
Feedstock; Renewable Biomass, and
Renewable Energy. [Section 9001]
obased Markets program
equires federal agencies toContinues federal commitment toNew section 9002 of FSRIA. ContinuesNew section 9002 of FSRIA. Renames
rchase biobased products under certainbiobased product preference in itsthe Federal Biobased Productsprogram as the Biobased Markets
nditions and authorize a voluntarypurchases. Requires annual reports fromProcurement Program, clarifying thatProgram. Requires procuring agencies to
ed labeling program. USDAagencies to Administrator of Federalbiobased intermediate ingredients andestablish a program and specifications for
ulations define biobased products,Procurement Policy. Also requiresfeedstocks qualify under the program. Itprocuring biobased products (excluding
tify biobased product categories, andannual reports from USDA to Congressalso requires USDA to establish amotor vehicle fuels, heating oil, or
iki/CRS-RL34130ecify the criteria for qualifying thoseon implementation status. Clarifies thatvoluntary labeling program for biobasedelectricity). Establishes the voluntary
g/wcts for preferred procurement. products with at least 5% of intermediateproductsUSDA Certified Biobasedlabeling program:USDA Certified
s.ordatory Commodity Creditingredients and feedstock that areProduct.” Additionally, this sectionBiobased Product.” Requires USDA to
leakrporation (CCC) funding of $1 millionbiobased should be considered under theprovides grants for education andestablish a national registry of biobased
thorized for each of FY2002 throughpreference. Requires USDA to completeawareness of bioenergy and biobasedtesting centers and a report on
://wiki2007 for testing biobased products. [7S.C. 8101]rulemaking on labeling regulation. Increases mandatory CCC funding to $2products. Provides $3 million per year inmandatory funding for FY2008 throughimplementation. Mandatory CCCfunding of $1 million in 2008, and $2
httpmillion for each of FY2008 throughFY2012. [Sec. 9001]million annually for FY2009-FY2012.
FY2012 for bio-product testing, labeling,Discretionary funding of $2 million
and procurement research, promotion,annually is authorized for FY2009-
and awareness initiatives. [Sec. 9002] FY2012. [Sec. 9001]
orefinery Assistance
provision.Included in section 9003, below.Included in new section 9005 of FSRIA,New section 9003 of FSRIA. Biorefinery
below.Assistance Program. Assists in the
development of new and emerging
technologies for the development of
advanced biofuels. Provides competitive
grants and loan guarantees for
construction and retrofitting of
biorefineries for the production of
advanced biofuels. Biorefinery grants
provided for up to 30% of total cost.
Each loan guarantee is limited to $250

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
million or 80% of project cost.
Mandatory funding of $75 million in
FY2009 and $245 million in FY2010,
available until expended for loan
guarantees. Discretionary funding of
$150 million annually is authorized for
FY2009-12. [Sec. 9001]
powering Assistance
ion 9003. Established a grantRenamed as the BiorefineryNew section 9005 of FSRIA: RenamedNew section 9004 of FSRIA. Provides
ram to help finance the cost ofDevelopment Program and extendedthe Biorefinery and Repoweringpayments to encourage biorefineries in
veloping and constructing biorefineriesthrough FY2012. It replaces grants withAssistance Program, it refocusesexistence on the date of enactment to
d biofuel production plants to carry outnew loan guarantee authority of $2emphasis onadvanced biofuelconvert from fossil fuel to renewable
ects to demonstrate the commercialbillion for biorefineries — one-half forproduction in renewable-fuel-poweredenergy power sources. Encourages new
ility of converting biomass to fuelsloans less than $100 million, and thebiorefineries. Provides competitiveproduction of energy for refineries from
iki/CRS-RL34130emicals. No mandatory funding wasother half for loans between $100 andgrants for up to 50% of project costs forrenewable biomass. Mandatory funding
g/wthorized and no discretionary funding$250 million. The loan guarantee wouldpilot- and demonstration-scaleof $35 million for FY2009, to remain
s.ors been appropriated for the program. cover 90% of an eligible loan. Requiresbiorefineries; matching funds foravailable until expended. Discretionary
leakerefore, no implementation regulationsthat construction contractors andfeasibility studies; competitive grants forfunding of $15 million annually for
ve been developed. [7 U.S.C. 8103]subcontractors on federally assisted loanup to 20% of total costs for theFY2009-12 is authorized. [Sec. 9001]
://wikiguarantee projects pay their employeesnot less than the prevailing wage in therepowering of fossil-fueled biomassconversion facilities with renewable
httpsame locality under the Davis-Bacon Act. resources; and loan guarantees for up to
Authorizes mandatory CCC funding of80% of total eligible project costs for the
$75 million in FY2008; $100 million indevelopment and construction of
FY2009; $125 million in FY2010; $200commercial-scale biorefineries and the
million in FY2011; and $300 million inrepowering of biomass conversion
FY2012 for a total in new mandatoryfacilities with renewable energy. Any
funding of $800 million during FY2008-loan guaranteed for commercial scale
12. [Sec. 9003]biorefineries cannot exceed $250 million
and a loan guaranteed for repowering
cannot exceed $70 million. Provides
$300 million in mandatory CCC funding
during FY2008, to remain available until
expended. [Sec. 9001]
oenergy Program for Advanced Biofuels
ion 9010. Originally created by a.Renews and extends the bioenergyNew section 9006 of FSRIA. Renews andNew section 9005 of FSRIA. Establishes
ecutive Order during the Clintonprogram through FY2012. Ethanolextends the Bioenergy Program throughthe Bioenergy Program for Advanced

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
ministration, the bioenergy programproduced from corn starch is excluded. FY2012. Bases the payment rate on: (1)Biofuels to encourage production of
ovides CCC incentive payments toExpands eligibility for the productionadvanced biofuel production, (2)advanced biofuels. Not more than 5% of
uels producers based on year-to-yearincentive to the production of heat andfeedstock prices, and (3) netthe funds can go to facilities with total
eases in the quantity of biofuelpower at a biofuels plant, biomassnon-renewable energy content of therefining capacity exceeding 150 million
ced. Mandatory CCC funding ofgasification, hydrogen for fuel cells, andbiofuel. This will benefit thosegallons per year. Producers of advanced
illion was made available for eachrenewable diesel. Provides mandatorypurchasing feedstocks for cellulosicbiofuels contracts with USDA to receive
FY2002 through FY2006. No fundingCCC funding of $225 million in FY2008;biofuels and biodiesel. payments based on the quantity and
s authorized for FY2007. [7 U.S.C.$250 million in FY2009; $275 million inThe program is not available toduration of production of advanced
FY2010; $300 million in FY2011; andthose claiming a biofuel blenders taxbiofuels, the net renewable energy
$350 million in FY2012 for a total ofcredit (see Sec. 12312) or those withcontent of the biofuel, and other factors.
$1.4 billion during FY2008-12. [Sec.biofuel production capacity greater thanPayments limited to ensure equitable
9007]150 million gallons per year. distribution. Mandatory funding of $55
Provides $245 million inmillion for 2009, $55 million for
mandatory funding for FY2008 throughFY2010, $85 million for FY2011, and
FY2012. [Sec. 9001]$105 million for FY2012. Discretionary
iki/CRS-RL34130funding of $25 million annually is
g/wauthorized for FY2009-12. [Sec. 9001]
s.orodiesel Fuel Education Program
ion 9004. Administered by USDAsExtends the Biodiesel Fuel EducationNew section 9003 of FSRIA. Same asNew section 9006 of FSRIA. Extends the
://wikiive State Research, Education,d Extension Service, awardsProgram through FY2012 withmandatory funding of $2 million for eachH.R. 2419. [Sec. 9001]Biodiesel Fuel Education Programthrough 2012. Mandatory CCC funds of
httpmpetitive grants to nonprofitof FY2008 through FY2012. [Sec. 9017]$1 million are provided annually for
ganizations that educate governmentalFY2008-12. [Sec. 9001]
d private entities operating vehicle
, and educates the public about the
efits of biodiesel fuel use. Mandatory
unding of $1 million was
thorized for each of FY2003 through
2007. [7 U.S.C. 8104]
ergy Audit and Renewable Energy Development Program
9005. A competitive grantSection 9004. Extends the Energy AuditNew section 9007 of FSRIA. ExtendsSee new section 9007 of FSRIA below.

ogram for eligible entities to provideand Renewable Energy Developmentthe Energy Audit and Renewable Energy
ergy audits and technical assistance toProgram through FY2012. Development Program through FY2012,
ricultural producers and rural smallbut folds it into the new Rural Energy for
sinesses to assist them in becomingAmerica Program where mandatory
re energy efficient and in usingfunding is available (see the Renewable
ewable energy technology andEnergy Systems section for more

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
ources. Authorized appropriations ofinformation). [Sec. 9001]
ch sums as are necessary to carry out
ram for each of FY2002 through
2007. [7 U.S.C. 8105]
nergy for America Program
e Renewable Energy Systems andRenamed as the Rural Energy forNew section 9007 of FSRIA. RenamedNew section 9007 of FSRIA. Renamed
ergy Efficiency Program (SectionAmerica Program. Includes otheras the Rural Energy for Americaas the Rural Energy for America
inistered by USDAs Ruralagricultural producers as eligibleProgram, this section adds the option toProgram. Provides grants and loan
elopment Agency, authorizes directrecipients. Raises the loan guaranteereceive a production incentive paymentguarantees to State governments, tribal,
s, loan guarantees, and grants tolevel from $10 million to $25 million. in lieu of a grant, and stipulates that aor local governments, land-grant
ers, ranchers, and rural smallGrant fund cost share is retained at up togrant may cover up to 25% of projectinstitutions, or rural electric cooperatives
sinesses to purchase and install25% of project costs; however, combinedcosts while a loan guarantee may coveror utilities to provide energy audits and
ewable energy systems and to makegrants and loans (including guarantees) isup to 75% of the cost. Preference givenrenewable energy assistance, and
ergy efficiency improvements. Grantexpanded to 75% of project cost. 10% ofto state-funded projects. Direct loans arefinancial assistance for energy efficiency
iki/CRS-RL34130nds may be used to pay up to 25% offunds are available for feasibility studies,excluded. Adds state agencies and publicimprovements and renewable energy
g/wect costs; combined grants and loansbut excludes recipient from otherpower entities to eligible participants. systems. Grants up to 25% of cost are
s.or loan guarantees may fund up to 50%assistance for feasibility studies. Energy from manure: Provides grantsprovided. Loan guarantees up to $25
leak project cost. Eligible projects includeIncludes sale of electricity fromand loan guarantees to build and evaluatemillion. Combined amount of grant and
e that derive energy from wind, solar,renewable energy systems as eligibleon-farm and community animal manure-guaranteed loans limited to 75% of cost.
://wikiass, or geothermal sources. Projectsng energy from those sources toactivities for grant and loan funding. 15% of funds available reserved forto-energy facilities for which agriculturalproducers, rural small businesses, and20% of funds made available in thissection to be reserved for grants of
httpce hydrogen from biomass or waterprojects of $50,000 or less. Increasescooperatives are eligible participants. $20,000 or less until the end of the fiscal
o eligible. Mandatory CCCmandatory CCC funding to $50 millionCriteria based on energy quality,year. Mandatory CCC funds of $55
nding of $23 million was madein FY2008; $75 million in FY2009; $100efficiency, environmental issuesmillion in FY2009, $60 million in
ailable for each of FY2003 throughmillion in FY2010; $125 million ingreenhouse gas emissions, diversityFY2010, $70 million in FY2011, and $70
2007. Unspent money lapses at theFY2011; and $150 million in FY2012 forfactors and cost. Establishes streamlinedmillion in FY2012. Discretionary
d of each year. [[7 U.S.C. 8106]total new mandatory funding of $500review and application process for small-funding of $25 million annually is
million during FY2008-FY2012. [Sec.scale projects (under $20,000), andauthorized to be appropriated for
9005] requires that 20% of funds be used forFY2009-12. [Sec. 9001]

such projects. The Energy Star Program
is extended to identify and promote
energy-efficient equipment and facilities
in the agricultural sector. Provides $230
million in mandatory funding for
FY2008 to remain available until
expended, with not less than 15% of this
funding dedicated to the animal
manure-to-energy program and not less

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
than 5% for the Energy Audit and
Renewable Energy Development
Program provision. [Sec. 9001]
omass Research and Development Program
is program — created originally underExtends the program through FY2012. New section 9008 of FSRIA. Extends theNew section 9008 of FSRIA. Moves the
iomass Research and DevelopmentAuthorizes mandatory CCC funding ofprogram and transfers statutory authorityBiomass Research and Development Act
t of 2000 (BRDA, P.L. 106-224) — $35 million in FY2008; $60 million into this act. Adds new emphasis onof 2000 in statute to Title IX of FSRIA of
ovides competitive funding forFY2009; $75 million in FY2010; $100utilization of byproducts such as dried2002. Defines biobased product.
earch, development, andmillion in FY2011; and $150 million indistillers grains and solubles (DDGS) andExpands advisory committee. New
onstration projects on biofuels andFY2012 for total new mandatory fundingdevelopment of technologies for harvest,technical areas for grants include
based chemicals and products, underof $420 million during FY2008-FY2012. storage, pre-processing andfeedstock development, biofuels and
iomass Research and DevelopmentContinues the appropriationstransportation of renewable biomassbiobased products development and
itiative, administered jointly by USDAAppropriation authority of$200 millionfeedstocks. Provides mandatory fundingbiofuels development analysis with a
d DOE. Creates Biomass research andin each of FY2008 through FY2015. (to remain available until expended) ofminimum of 15% of funding going to
iki/CRS-RL34130velopment Board to coordinate[Sec. 9006] $15 million in FY2008, $25 million ineach area. Minimum cost-share
g/wvernment activities in biomassFY2009, and $35 million in FY2010 forrequirement for demonstration projects
s.orearch, and the Biomass Research anda total in new mandatory funding of $75increased to 50% and research projects to
leakelopment Technical Advisorymillion during FY2008-FY2012. Also20%. Provides for coordination of
mmittee to advise on proposalincludes the appropriations authority forbiomass research and development,
://wiki and evaluation. Authorizedndatory CCC funding of $5 million in$85 million in each of FY2008 throughFY2012. [Sec. 9001]including life cycle analysis of biofuels,between USDA and DOE. Authorizes
httpd $14 million for each ofmandatory funding of $20 million for
2003 through FY2007 (available untilFY2009, $28 million for FY2010, $30
pended). Additional appropriationmillion for FY2011, and $40 million for
thority of $200 million for each ofFY2012. Discretionary funding of $35
2006 through FY2015. [7 U.S.C.million is authorized to be appropriated
annually for FY2009-12. [Sec. 9001]
l Energy Self-Sufficiency Initiative
provision. Establishes the Rural Energy Self-New section 9015 of FSRIA. EstablishesNew section 9009 of FSRIA. Establishes
Sufficiency Initiative to provide cost-a program — the Rural Energy Systemsthe Rural Energy Self-Sufficiency
share grants to enable eligible ruralRenewal Program — of competitiveInitiative to assist rural communities with
communities (with population less thancost-shared grants (50% maximumcommunity-wide energy systems that
25,000) to substantially increase theirfederal share) for rural communities toreduce conventional energy use and
energy self-sufficiency. Grants may notassess their energy systems and formulateincrease the use of energy from
exceed 75% of costs. Requires a reportstrategies for improvements. Authorizesrenewable sources. Grants are made
to Congress on best practices/approaches. discretionary funding of $5 millionavailable to assess energy use in a rural
Total grants under this section are limitedannually for FY2008-12. [Sec. 9001]community, evaluate ideas for reducing

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
to no more than 5 per year. Authorizesenergy use, and develop and install
discretionary appropriations for grants ofintegrated renewable energy systems.
not more than $5 million for FY2008,Grants not to exceed 50% of the total
and such sums as are necessary forcost of the activity. Appropriations of $5
FY2009-12. [Sec. 9011 (appended asmillion annually are authorized for
section 9014 of FSRIA)]FY2009 — 12. [Sec. 9001]
ck Flexibility Program for Bioenergy Producers
provision. Requires that USDA establish (inSee Title I, Section 1501, Sugar Program,New section 9010 of FSRIA. Adopts the
FY2008) and administer a sugar-for-for a similar sugar-for-ethanol provisionHouse provision with amendments. [Sec.
ethanol program using sugar intended forentitled the “Feedstock Flexibility9001]
food use but deemed to be in surplus. Program for Bio-Energy Producers.
USDA would implement the programIdentical to the House provision.
only in those years where purchases are
determined to be necessary to ensure that
iki/CRS-RL34130the sugar program operates at no cost.
g/wThe use of such sums as necessary to
s.orcarry out the program is authorized.
leak[Sec. 9013] (would be appended as
Section 9016 of FSRIA).
://wikiomass Crop Assistance Program
http provision. Establishes a new Biomass EnergyNew section 9004 of FSRIA. Creates theNew section 9011 of FSRIA. Establishes
Reserve (BER) to encourage throughBiomass Crop Transition Assistancethe Biomass Crop Assistance Program
financial assistance the production ofProgram to stimulate production of(BCAP) to provide producers committing
dedicated energy crops, establish biomassbiomass crops. USDA provides technicalto biomass production or a biomass
energy reserve project areas, and toand financial assistance for theconversion facility with contracts which
provide financial and technical assistanceproduction of perennial bioenergy cropswill enable producers in a BCAP project
to owners and operators for harvesting,used in a biomass conversion facility. area to receive financial assistance for
storing, and transporting cellulosicRestricted to advanced biofuels, biobasedcrop establishment costs and annual
material to bioenergy facilities. Providesproducts, or heat or power from apayments t for biomass production.
financial and technical assistancebiomass conversion facility. ProvidesProducers must be within economically
(including five-year contracts) to$130 million in mandatory funding forpracticable distance from a biomass
landowners and operators to growFY2008 through FY2012 to supportfacility and adhere to resource
dedicated energy crops as feedstock forbiomass production. Also provides $10conservation requirements. Cost-share
cellulosic ethanol and other energymillion in mandatory funding for each ofpayments cover costs of establishing
production. BER projects must be withinFY2009 through FY2011 (to remaincrop, for collection, harvest, storage and
a 50-mile radius of a bioenergy facility. available until expended) for a fixedtransportation to a biomass conversion
Authorizes mandatory funding of suchassistance payment to agriculturalfacility. Annual payments authorized to

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
sums as are necessary for FY2008-producers for production, collection,producers to support biomass production.
FY2012. [Sec. 9018] harvest, storage and transportation ofA report is required no later than 4 years
biomass crops for use in a biomassafter enactment. Mandatory CCC funds
conversion facility. Requires USDAof such sums as necessary are made
provide public information on theavailable for each of FY2008-12. [Sec.
production potential, environmental9001]
impacts, and best practices for
production, harvesting, transport and
storage of biomass crops and requires
participants to provide information as
needed for that purpose. [Sec. 9001]
t Biomass for Energy
provision..Establishes a new competitive researchNew section 9013 of FSRIA. Same asNew section 9012 of FSRIA. Forest
and development program to encouragethe House provision, but withService competitive research and
iki/CRS-RL34130the use of woody biomass for bioenergydiscretionary (not mandatory)development program to encourage use
g/wproduction. Provides mandatory CCCauthorization of $5 million for each ofof forest biomass for energy. Priority to
s.orfunding of $15 million for each ofFY2008-12. [Sec. 9001]projects that use low-value forest
leakFY2008-12. [Sec. 9019]byproduct biomass for the production of
energy, develop processes to integrate
://wikibioenergy from forest biomass intoexisting manufacturing streams and
httpdevelop new transportation fuels and
improve the production of trees for
renewable energy. Authorized
appropriations of $15 annually for
FY2009-12. [Sec. 9001]
mmunity Wood Energy Program
provision.Establishes Community Wood EnergyNew section 9014 of FSRIA. Similar toNew section 9013 of FSRIA. Same as
Program to provide matching grants toHouse provision except specifiesSenate provision. [Sec. 9001]

State and local governments to acquirematching grants of up to $50,000.
community wood energy systems forProvides discretionary funding of $5
public buildings and to implement amillion for each of FY2008-12. [Sec.
community wood energy plan to meet9001]
energy needs with reduced carbon
intensity through conservation, reduce
costs, and utilize low-value wood
sources, and increase awareness of

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
energy consumption. Authorizes
discretionary funding of such sums as are
necessary. [Sec. 9019]
ofuels Infrastructure Study
provision.No provision.New section 9018 of FSRIA. DirectsRequests USDA, DOE, EPA and DOT to
USDA, in collaboration with the DOEjointly report on the infrastructure needs
and DOT and EPA, to conduct a study ofand development approaches for
the infrastructure needs associated with aexpanding the domestic production,
significant expansion in biofueltransport, and distribution of biofuels,
production and use. Specifically includesand the required infrastructure. [Sec.
dedicated ethanol pipeline feasibility9002]
studies and examination of water
resource needs. Requires a report to
Congress on the results of the studies.
iki/CRS-RL34130Authority to appropriate $1 million for
g/weach of FY2008 and FY2009. [Sec.
s.or 9001]
://wiki provision.No provision.New section 9019 of FSRIA. RequiresRequires a report within 1 year of
httpUSDA to conduct a Renewable NitrogenFertilizer Study to assess the feasibility ofappropriations on the production offertilizer from renewable energy sources
producing nitrogen fertilizer fromin rural areas. Report must identify
renewable energy (and submit a report tochallenges to commercialization of rural
Congress within 270 days). Providesfertilizer production, processes and
discretionary funding of $1 million fortechnologies and the potential impacts of
FY2008. [Sec. 9001]renewable fertilizer on fossil fuel use and
the environment. Appropriations of $1
million are authorized for FY2009. [Sec.

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
tle XI: Livestock
udy on Bioenergy Operations
provision.No provision.No provision. Requires USDA study on the use of
animal manure as a fertilizer, and on the
impact on consumers and on agricultural
operations of limitations placed on the
use of animal manure and the effects of
increased competition for manure due to
biofuel uses. [Sec. 11014]
le XV: Trade and Tax Provisions; Subtitle C PART II — Energy Provisionsa
for Production of Cellulosic Biofuel
der the American Jobs Creation ActNo provision.Provides for a total income tax credit ofProvides a fourth tax credit under 26
iki/CRS-RL34130JCA) of 2004, (P.L. 108-357),losic ethanol, once developed,$1.25 per gallon for cellulosic ethanolblended (inclusive the standard ethanolU.S.C. 40, the Cellulosic BiofuelProducer Credit. The credit is $1.01 per
g/wuld receive the current tax credit oftax credit of $0.51/gal. and the smallgallon less the amount of small-producer
s.orallon available to any ethanolproducer credit of $0.10/gal.). The 15ethanol credit claimed and the alcohol
leakded into gasoline as provided,million gallon limitation on the $0.10mixture credit claimed for ethanol.
://wikiough Dec. 31, 2010. [26 U.S.C. 40]credit is waived for small cellulosicethanol producers. Applicable only for[Sec. 15321]
httpdomestically produced cellulosic ethanol.
The producer credit is extended through
April 1, 2015. [Sec. 12312]
mprehensive Study of Biofuels
provision.No provision.No provision.The Secretary of Treasury, with USDA,
DOE, and EPA shall commission the
National Academy of Sciences to
produce a report on biofuels, including
current and projected production,
economic and environmental impacts, the
impact of government programs, and the
relative impacts of different types of
biofuels. [Sec. 15322]

2002 Farm Bill House-Passed Farm Bill Senate-Passed Farm Bill Enacted Farm Bill
(FSRIA, P.L. 107-171)(H.R. 2419)(H.R. 2419)(P.L. 110-246)
or Other Law (as indicated)
odification of Alcohol Credit
y ethanol blended into gasoline isNo provision.Reduces the ethanol blenders tax creditReduces the ethanol tax credit of $0.51
ible for a tax credit of $0.51 perof $0.51 per gallon to $0.46 per gallonper gallon to $0.45 per gallon beginning
llon as provided under current lawbeginning in the first calendar year afterin the first calendar year after the year in
JCA of 2004, P.L. 108-357) throughthe year in which 7.5 billion gallons ofwhich 7.5 billion gallons of ethanol is
.S.C. 40]ethanol is produced. [Sec. 12315]produced. [Sec 15331]
hol Fuel: Calculation of Volume of Alcohol for Fuel Credits
der current law (AJCA of 2004, P.L.No provision.Reduces the permissible volume ofReduces the permissible volume of
357) the volume of bio-alcoholdenaturant to 2% for purposes ofdenaturant to 2% for purposes of
nted as fuel eligible for the tax creditcalculating the volume of alcohol eligiblecalculating the volume of alcohol eligible
y include up to 5% of the volume asfor the tax credit. [Sec. 12316]for the tax credit. [Sec. 15332]
aturant. [26 U.S.C. 40]
hol Fuel: Ethanol Tariff Extension
iki/CRS-RL34130der current law (Heading 9901.00.50No provision.Extends the tariff or 54 cents per gallonAdopts Senate provision. [Sec 15333]
g/w the Harmonized Tariff Schedulefor imported ethanol or mixtures of
s.orTS)) imports of ethyl alcohol areethanol (headings 9901.00.50 and
leakbject to a duty of 14.27¢ per liter9901.00.52 of the HTS) through Dec. 31,
://wikiallon) and a duty of 5.99¢g 9901.00.52; HTS) on2010. [Sec. 12317]
httpports of ethyl tertiary-butyl ether
ough Dec. 31, 2008. [19 U.S.C.
apter 18]
hol Fuel: Limitations on, and Reductions of, Duty Drawback on Certain Imported Ethanol
der current law (Section 1313 of theNo provision.Eliminates the ability to obtain a refundAdopts the Senate provision. [Sec.
riff Act of 1930, as amended) permitsof the duty imposed under HTS15334]
und of duty if the duty-paid good9901.00.50 on imported ethanol by
exported or used to make a goodsubstitution of either ethanol not subject
is exported. In particular, a personto the duty, or of another petroleum
o manufactures gasoline with ethanolproduct, that is exported to obtain the
bject to the duty imposed under eitherdrawback. [Sec. 12318]
S 9901.00.50, can export jet fuel
hich does not contain ethanol) and
ain a refund of the duty paid. [19
S.C. Chapter 18]
r more information on the Senate’s tax and trade provisions, see Description of the Chairman’s Mark of the “Heartland, Habitat, Harvest, and Horticulture Act of 2007”,
t Committee on Taxation, JCX-94-07, October 2, 2007.