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Congressional Research Service
Inforrning the legislative debate since 1914


S


                                                                                           Updated March 25, 2021

Overview of the 2018 Farm Bill Energy Title Programs


Congress has long encouraged the production of renewable
energy and products derived from agriculture-based
feedstock in pursuit of various policy goals. These goals
include U.S. energy security, greenhouse gas emission
reduction, and increased demand for U.S. farm products.
Since the late 1970s, Congress has employed a wide range
of policy mechanisms and incentives-including the farm
bill-to expand the production and use of agriculture-based
renewable energy (e.g., tax incentives to blend biofuels
with gasoline, loan guarantees to construct production
facilities, and a consumption mandate for biofuels).
The bioenergy programs authorized and funded under the
energy title of the 2018 farm bill (P.L. 115-334) build upon
programs established in the 2002 farm bill (P.L. 107-171)-
the first farm bill with an energy title authorizing several
agriculture-based programs (7 U.S.C. §8101 et seq.). Since
2002, the energy title in succeeding farm bills mostly has
reauthorized-and  in some cases modified-the programs.
With a few exceptions, Title IX of the 2018 farm bill
reauthorized the major bioenergy programs from the 2014
farm bill (P.L. 113-79), while providing many of them with
mandatory funding (i.e., not dependent on discretionary
appropriations) for the five-year life of the bill, FY2019-
FY2023.  Mandatory funding for the energy title programs
in the 2018 farm bill is less than what was provided in the
2014 farm bill. Because the farm bill provided mandatory
funding and authorized discretionary funding for many of
the energy title programs, there is typically an annual
discussion about how much discretionary funding should be
appropriated. The 2018 farm bill established a new program
for carbon utilization and biogas education, and repealed
two authorities-the Repowering Assistance Program and
the Rural Energy Self-Sufficiency Initiative.
A brief description of the farm bill energy title programs
follows. Table 1 identifies the implementing agency by
program and provides FY2021  authorized and appropriated
funding levels.
Biobased  Markets Program.  Referred to as the
BioPreferred Program. Promotes biobased products through
two initiatives: (1) mandatory purchasing by 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.
Biorefinery, Renewable  Chemical, and Biobased
Product  Manufacturing  Assistance Program.  Seeks to
facilitate the development of new and emerging
technologies for advanced biofuels; renewable chemicals;
and biobased product manufacturing by providing loan
guarantees for the development, construction, or retrofitting
of commercial-scale biorefineries.
Bioenergy  Program  for Advanced  Biofuels. Referred to
as the Advanced Biofuel Payment Program. Provides


payments to fuel producers to support and expand
production of advanced biofuels (i.e., not derived from corn
starch). One payment type is for the actual quantity
produced, and a second is for production increases. No
more than 5% of available funds provided each year may be
used for facilities that exceed an annual refining capacity of
150 million gallons.
Biodiesel Fuel Education Program.  Provides grants to
nonprofit organizations and institutions of higher education
that educate government and private vehicle fleet operators;
the public; and others about the benefits of biodiesel.
Rural Energy  for America Program   (REAP).  Provides
eligible entities (e.g., state, tribal, or local governments;
land-grant colleges and universities; rural electric
cooperatives; and public power entities) with grants for
energy audits and renewable energy development
assistance. REAP also provides loan guarantees and grants
for energy efficiency improvements and renewable energy
systems (RESs). RESs include biofuels, and power
generation from wind, solar, biomass, geothermal, ocean,
and some hydropower  sources. RESs exclude retail energy
dispensers (e.g., blender pumps). A cap of 15% of available
funds per year is imposed on loan guarantees to agricultural
producers for certain energy efficiency equipment and
agricultural production systems.
Rural Energy  Savings Program  (RESP).  Provides loans
to rural families and small businesses to achieve cost
savings to implement durable cost-effective energy
efficiency measures to include on- or off-grid renewable
energy or energy storage systems.
Biomass  Research and  Development  (BR&D).  Supports
cooperation and coordination between the USDA and the
U.S. Department of Energy (DOE)  for biomass research
and development. The BR&D   Initiative offers competitive
funding through grants, contracts, and financial assistance
for research, development, and demonstration for biofuels
and biobased products. Eligibility is limited to institutions
of higher learning, national laboratories, federal or state
research agencies, and private and nonprofit entities.
Feedstock Flexibility Program (FFP). Designed to help
stabilize sugar prices so as to avoid forfeitures under the
sugar loan program. Under FFP, USDA's  Commodity
Credit Corporation (CCC) may purchase sugar from
processors for resale to fuel ethanol producers.
Biomass  Crop Assistance Program  (BCAP).  Provides
financial assistance to owners and operators of agricultural
land and nonindustrial private forest land to establish,
produce, and deliver biomass feedstock to eligible
processing plants via matching payments; and
establishment and annual payments.
Community   Wood   Energy and  Wood  Innovation
Program.  Provides matching grants for the installation of
community  wood  energy systems or building an innovative


:tps://crsreports.congress.gov

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