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1 1 (February 10, 2016)

handle is hein.crs/crsnalcaaaaj0001 and id is 1 raw text is: *° Congfressional Research Service hnorn the leoislatve debate sin'e1914 February 10, 2016 Overview of Bioenergy Programs in the 2014 Farm Bill Congress has long encouraged the production of renewable energy and products from agriculture-based feedstock in pursuit of various policy ends. These include enhancing U.S. energy security, lowering greenhouse gas emissions, and boosting demand for U.S. farm products. Since the late 1970s, Congress has employed a wide range of policy mechanisms and incentives to expand the production and use of renewable energy. These policy tools have included credits for producing and blending biofuels, loan guarantees to facilitate the construction of initial production facilities, and consumption mandates for biofuels under the Renewable Fuel Standard (RFS) to cite just a few. A number of these incentives are located in the tax code, while RFS amends the Clean Air Act (42 U.S.C. 7545(o)). Many of the agriculture-based bioenergy programs were authorized-and in some cases modified-with the enactment of the 2014 farm bill (P.L. 113-79). With only a few exceptions, Title IX of the 2014 farm bill reauthorized the major bioenergy programs from the 2008 farm bill (P.L. 110-246), while providing many of them with mandatory funding (i.e., not dependent on annual appropriations) for the five-year life of the bill, FY2014-FY2018. A brief description of these farm bill bioenergy programs follows. Table 1 identifies the implementing agency by program, summarizes key changes mandated by the 2014 farm bill, and provides authorized funding levels. For more background, see CRS Report R43416, Energy Provisions in the 2014 Farm Bill (P.L. 113-79), by Mark A. McMinimy. Bioenergy Provisions of the 2014 Farm Bill Section 9002: Biobased Markets Program. The so-called BioPreferred® Program promotes biobased products- those derived from plants and other renewable agricultural, marine, and forestry materials-through two initiatives: (1) a mandatory purchasing requirement for federal agencies and their contractors and (2) a voluntary labeling initiative for biobased products. Products that meet the minimum biobased content criteria may display the U.S. Department of Agriculture (USDA) Certified Biobased Product label. Section 9003: Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program. Seeks to facilitate the development of new and emerging technologies for converting renewable biomass to advanced biofuels by providing loan guarantees for constructing or retrofitting demonstration-scale biorefineries. Section 9004: Repowering Assistance Program (RAP). Provides payments to those biorefineries in existence as of June 18, 2008, that replace fossil fuel-based heat and power systems with renewable biomass. Not more than 5% of funds are available to eligible producers with refining capacity in excess of 150 million gallons a year. Section 9005: Bioenergy Program for Advanced Biofuels. Provides payments to producers to support and expand output of advanced biofuels derived from sources other than corn starch. One payment type is based on actual production, and a second is for incremental production increases. A cap of 5% of available funds per year is imposed on facilities of over 150 million gallons capacity. Section 9006: Biodiesel Fuel Education Program. Provides grants to nonprofit organizations that (1) educate government and private entities that operate fleet vehicles and (2) educate the public about the benefits of biodiesel. Section 9007: Rural Energy for America Program (REAP). Provides loan guarantees and grants to agricultural producers and rural small businesses to purchase and install renewable energy systems (RESs) and to undertake energy efficiency improvement projects. REAP also offers grants for conducting energy audits and RES feasibility studies. RESs generate power from wind, solar, biomass, or geothermal sources; produce hydrogen from biomass or water using renewable energy; and include ocean and hydroelectric source technologies. Other eligible recipients include state, tribe, or local governments; land- grant colleges or universities; rural electric cooperatives; public power entities; and rural small businesses and farmers. Section 9008: Biomass Research and Development Initiative (BRDI). Offers competitive funding through grants, contracts, and financial assistance for research, development, and demonstration of technologies and processes. BRDI seeks to foster significant commercial production of biofuels, biobased energy innovations, development of biobased feedstocks, and biobased products and processes, including cost-competitive cellulosic ethanol. Eligibility is limited to institutions of higher learning, national laboratories, federal or state research agencies, and private-sector and nonprofit entities. Section 9009: Feedstock Flexibility Program (FFP). Designed to help stabilize sugar prices so as to avoid costly forfeitures under the sugar loan program. Under FFP the Commodity Credit Corp. (CCC) purchases sugar from processors for resale to ethanol producers for fuel ethanol. Section 9010: Biomass Crop Assistance Program (BCAP). Makes payments to owners and operators of agricultural land and non-industrial private forest land for establishing, producing, and delivering biomass feedstock to eligible processing plants. Payments include (1) within BCAP project areas, establishment payments for perennial crops and annual payments of up to five years for non- woody, and 15 years for woody, biomass crops; and (2) matching payments for up to two years for crop collection, harvest, storage and transportation of qualified biomass. Section 9012: Community Wood Energy Program. Provides matching grants to state and local governments of up to $50,000 for up to 50% of the cost of planning and installing wood energy systems for public buildings. www.crs.gov i 7-570

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