For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34130 ------------------------------------------------------------------------------ Order Code RL34130 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 Summary 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 demonstration. 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. Contents 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 Background 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 [http://www.ers.usda.gov/Features/Farmbill/titles/titleIXenergy.htm]. 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. CRS-2 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 Legislation in the 110th Congress, by Fred Sissine, Anne Gillis, and Mark Gurevitz. CRS-3 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 bill.) 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 Agency; ! an education program to promote the use and understanding of biodiesel; ! 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. CRS-4 ! 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 2009. 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. CRS-5 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. CRS-6 Table 1. 2008 Farm Bill (P.L. 110-246): Authorized Funding for Energy Provisions, FY2008-FY2012 Title IX Sum: Provisions Section and Provision Name Funding Status FY2008 FY2009 FY2010 FY2011 FY2012 FY08-FY12 ---------------- $ millions------------ -- Title VII - Research Sec. 7205 Nutrient Management Research Discretionary SSAN SSAN SSAN SSAN SSAN SSAN and Extension Initiative Sec. 7207 Bioenergy Feedstock and Energy Efficiency Research Discretionary 0 50 50 50 50 200 and Extension Initiative Sec. 7526 Sun Grant Program Discretionary 75 75 75 75 75 375 Title IX Energy Sec. 9002 Biobased Markets Program Mandatory 1 2 2 2 2 9 Additional funding authorization Discretionary 0 2 2 2 2 8 Sec. 9003 Biorefinery Assistance Mandatory 0 75 245 0 0 320 Additional funding authorization Discretionary 0 150 150 150 150 600 Sec. 9004 Repowering Assistance Mandatory 0 35 0 0 0 35 Additional funding authorization Discretionary 0 15 15 15 15 60 Sec. 9005 Bioenergy Program for Advanced Biofuels Mandatory 0 55 55 85 105 300 Additional funding authorization Discretionary 0 25 25 25 25 100 Sec. 9006 Biodiesel Fuel Education Program Mandatory 1 1 1 1 1 5 Sec. 9007 Rural Energy for America Program Mandatory 0 55 60 70 70 255 Additional funding authorization Discretionary 0 25 25 25 25 100 CRS-7 Title IX Sum: Provisions Section and Provision Name Funding Status FY2008 FY2009 FY2010 FY2011 FY2012 FY08-FY12 ---------------- $ millions------------ -- Sec. 9008 Biomass Research and Development Act Mandatory 0 20 28 30 40 118 Additional funding authorization Discretionary 0 35 35 35 35 140 Sec. 9009 Rural Energy Self-Sufficiency Initiative Mandatory 0 0 0 0 0 0 Additional funding authorization Discretionary 0 5 5 5 5 20 Sec. 9010 Feedstock Flexibility Program for Bioenergy Producers Mandatory 0 0 0 0 0 0 Additional funding authorization Discretionary SSAN SSAN SSAN SSAN SSAN SSAN Sec. 9011 Biomass Crop Assistance Program Discretionary SSAN SSAN SSAN SSAN SSAN SSAN Sec. 9012 Forest Biomass for Energy Discretionary 0 15 15 15 15 60 Sec. 9013 Community Wood Energy Program Discretionary 0 5 5 5 5 20 Sec. 9003 Renewable Fertilizer Study Discretionary 0 1 0 0 0 1 Total Discretionary Funding Discretionary $140 $418 $417 $417 $417 $1,809 Total Mandatory Funding Mandatory $2 $243 $391 $188 $218 $1,042 Source: P.L. 110-246 (Food and Energy Security Act of 2008. "SSAN" = Such sums as necessary. CRS-8 Table 2. 2002 Farm Bill Title IX Energy Funding (Presidential Request, Authorization, and Enactment), by Provision, FY2002 to FY2007 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007d Pres. Pres. Pres. Pres. Pres. Pres. Current law provision Req. Auth. Enact.a Req. Auth. Enact.a Req. Auth. Enact.a Req. Auth. Enact.a Req. Auth. Enact.a Req. Auth. Enact.a $ millions $ millions $ millions $ millions $ millions $ millions Sec. 9002 Federal Biobased Product 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 Sec. 9003* Biorefinery Development Grants 0 SSAN 0 0 SSAN 0 0 SSAN 0 0 SSAN 0 0 SSAN 0 0 SSAN 0 Sec. 9004 Biodiesel Fuel Education Program 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 Sec. 9005*Energy Audit and Renewable Energy 0 SSAN 0 0 SSAN 0 0 SSAN 0 0 SSAN 0 0 SSAN 0 0 SSAN 0 Program Sec. 9006 Renewable Energy Systemsb 23 23 23 18 23 23 3 23 23 11 23 23 10 23 23 10 23 0 Sec. 9007* Hydrogen and Fuel Cell Technologies 0 SSAN 0 0 SSAN 0 0 SSAN 0 0 SSAN 0 0 SSAN 0 0 SSAN 0 Sec. 9008* Biomass Research and Developmentc 5 54 5 14 63 14 14 63 14 14 63 14 12 214 12 12 214 0 Sec. 9009 Cooperative Research and Extension 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Projects Sec. 9010* Continuation of Bioenergy Program 0 0 0 150 150 116 150 150 150 100 150 100 60 150 60 0 0 0 Total Energy Programs 30 79 30 184 238 155 169 238 189 127 238 139 84 389 97 24 239 0 *Joint program with the Department of Energy. Note: "Pres. Req." = Presidential request; "Auth." = Farm bill authorized level; "Enact." = Enacted; "SSAN" = Such sums as necessary. Sec. 9003 and Sec. 9005 were not implemented. a. Represents a combination of the amount authorized by the 2002 Farm Bill, less any reductions in annual appropriations acts, plus discretionary funding provided where applicable. b. The 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. c. Section 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 through FY2015. d. Complete data on appropriations by program is not yet available. CRS-9 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) Title VII: Agricultural Research and Extension Nutrient Management Research and Extension Initiative Section 1673(h) of the Food, Agriculture, Extends the nutrient management Extends program through FY2012. [Sec. The Conference substitute adopts the Conservation, and Trade Act of 1990 research and extension initiative through 7103] House provision with an amendment to (P.L. 101-624) authorized matching 2012 and adds dairy cattle waste as a include the production of renewable grants under the farm bill nutrient type of waste to be studied. The energy from animal waste as an eligible management research and extension authorization of appropriations for such activity to receive grants under this initiative for finding innovative methods sums as necessary is extended annually section. Authorizes such sums as and technologies for economic use or for FY2008-12. [Sec. 7307] necessary annually for FY2007-12. [Sec. disposal of animal waste. Extended 7205] through 2007 in section .7120 of the 2002 farm bill. Such sums as necessary were appropriated annually for FY1999- FY2007. [7 U.S.C. 5925a] Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension Initiative No Provision. Initiates multi-regional biomass crop New section 9010 of FSRIA. Regional Establishes the Agricultural Bioenergy experiments with a network of Biomass Crop Experiments. Establishes Feedstock and Energy Efficiency laboratories to provide a sound a program of regional biomass crop Research and Extension Initiative, a knowledge base on the production of experiments at 10 geographically program to award competitive matching biomass energy crops, including crop dispersed and competitively selected (up to 50%) grants for projects with a species, nutrient requirements, land-grant universities. Individual grants focus on supporting on-farm biomass management practices, environmental total $4 million for FY2008-10.Crop crop research and the dissemination of impacts, greenhouse gas implications, experiments are to include all appropriate results to enhance the production of and economics. Competitive grants to be biomass species, including perennials, biomass energy crops and the integration awarded to a network of laboratories. annuals, and woody biomass species in of such production with the production of Discretionary appropriations authorized coordination with the Biomass Research bioenergy. Discretionary appropriations of $50 million annually FY2008-12. and Development Board and with the of $50 million annually are authorized [Sec 7410] Sun Grant Centers. Establishes a "best for 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] CRS-10 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) New Century Farm Project No provision. No provision. New section 9011 of FSRIA. Establishes The purpose of this section Is the New Century Farm Project to serve as incorporated in section 7207. a model farm. Authorizes appropriations of $15 million for FY2008 through FY2012, to remain available until expended. Biochar Research, Development, and Demonstration No provision. No provision. New section 9012 of FSRIA. Creates a The purpose of this section Is program of competitive grants for incorporated in the as a research priority research and demonstration of the in section 7203. production and use of biochar in the agricultural sector. Provides discretionary funding of $3 million for each of FY2008 through FY2012. [Sec. 9001] Farm Energy Production Pilot Program No provision. Farm Energy Production Pilot Program. No provision. The purpose of this section Is Provides grants to farmers to demonstrate incorporated in the Agricultural the feasibility of making a farm energy Bioenergy 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] Farm Energy Production Pilot Program No provision. Provides grants of not more than $1 No provision. The purpose of this section Is million to no more than 20 universities to incorporated in the Agricultural develop a 3-year demonstration program Bioenergy and Biobased Products of supplementing corn as an ethanol Research Initiative of section 7207. feedstock with sweet sorghum and switchgrass. Discretionary funds of $20 million are authorized for FY2008- FY2012. [Sec. 9020] CRS-11 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) Research and Development of Renewable Energy No comparable provision. No comparable provision. New section 9022 of FSRIA. USDA will The purpose of this section Is conduct research, with the Colorado incorporated in the Agricultural Renewable Energy Collaboratory, Bioenergy and Biobased Products relating to various aspects of renewable Research 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 cellulosic biofuel research for each of FY2008 through FY2012; and additional discretionary funding of $110 million to USDA/DOE for development of small-scale biorefineries for each of FY2008 through FY2012.[Sec. 9001] Northeast Dairy Nutrient Management and Energy Development Program No provision. No provision. New section 9023 of FSRIA. Establishes The purpose of this section Is USDA program to provide grants to a incorporated 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] Future Farmsteads Program No provision. Section 9015. Establishes a program to New section 9025 of FSRIA. Same as The purpose of this section Is equip a farm entity (house and lands), in House bill. [Sec. 9001] incorporated in the Agricultural each of 5 regions of the country, with Bioenergy and Biobased Products technologies to improve farm energy Research Initiative of section 7207. production and use efficiencies. Each designated entity would serve as a CRS-12 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. Sun Grant Program Section 9011. This provision was added Adds a Sun Grant center at the University New section 9009 of FSRIA. Adopts the Senate provision with subsequent to the 2002 farm bill under of Hawaii. Reauthorizes the Sun Grant Reauthorizes the Sun Grant Program amendments and moves the provision in the Sun Grant Research Initiative Act of program through FY2012 with through FY2012 and establishes a 6th statute to the research title of this act. No 2003. Establishes 5 national Sun Grant authorized discretionary appropriations regional center -- Western Insular mandatory funding is provided. The research centers based at land-grant of $75 million for each of FY2008-12, Pacific Sub-Center -- at the University conference substitute authorizes $75 universities, each covering a different for a total in discretionary funding of of Hawaii. Provides, for the first time, million per year for FY2008-FY2010. national region, to enhance coordination $375 million. [Sec. 9008] mandatory funding for the Sun Grant [Sec. 7526] and collaboration between USDA, DOE, program of $5 million in FY2008, $10 and land-grant universities in the million in each of FY2009 and FY2010 development, distribution, and (available until expended) for a total of implementation of biobased energy $25 million for FY2008-12. Also technologies. Competitive grants are authorizes appropriations of $70 million available to land-grant schools within in each of FY2008-12. [Sec. 9001] each region. Authorized appropriations of $25 million in FY2005, $50 million in FY2006, and $75 million for each of FY2006 through FY2010 for total discretionary funding of $375 million during FY2005-10. [7 U.S.C. 8109] TITLE IX: Energy Definitions Sec. 9001. Defines Administrator, No changes to definitions. [Sec. 9001] Sec. 9001. Adds several definitions New section 9001 of FSRIA. Adopts the Biomass, Biobased Product, Procuring including Senate definitions with amendments. Agency, Renewable Energy, Rural Small "Advanced Biofuels," which excludes Advanced biofuels includes aviation, jet, Business, and Secretary. [7 U.S.C. 8101] any fuel derived from corn starch, but and heating fuels made from cellulosic includes ethanol derived from other plant biomass. [Sec. 9001] starches (e.g., sorghum), sugar, as well as cellulosic biomass or organic waste; it also includes organically-derived biogas, CRS-13 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, biodiesel. Other definitions include Biobased Product; Biomass Conversion Facility, Biorefinery, Intermediate Ingredient or Feedstock; Renewable Biomass, and Renewable Energy. [Section 9001] Biobased Markets program Sec. 9002. Requires federal agencies to Continues federal commitment to New section 9002 of FSRIA. Continues New section 9002 of FSRIA. Renames purchase biobased products under certain biobased product preference in its the Federal Biobased Products program as the Biobased Markets conditions and authorize a voluntary purchases. Requires annual reports from Procurement Program, clarifying that Program. Requires procuring agencies to biobased labeling program. USDA agencies to Administrator of Federal biobased intermediate ingredients and establish a program and specifications for regulations define biobased products, Procurement Policy. Also requires feedstocks qualify under the program. It procuring biobased products (excluding identify biobased product categories, and annual reports from USDA to Congress also requires USDA to establish a motor vehicle fuels, heating oil, or specify the criteria for qualifying those on implementation status. Clarifies that voluntary labeling program for biobased electricity). Establishes the voluntary products for preferred procurement. products with at least 5% of intermediate products -- "USDA Certified Biobased labeling program: "USDA Certified Mandatory Commodity Credit ingredients and feedstock that are Product." Additionally, this section Biobased Product." Requires USDA to Corporation (CCC) funding of $1 million biobased should be considered under the provides grants for education and establish a national registry of biobased is authorized for each of FY2002 through preference. Requires USDA to complete awareness of bioenergy and biobased testing centers and a report on FY2007 for testing biobased products. [7 rulemaking on labeling regulation. products. Provides $3 million per year in implementation. Mandatory CCC U.S.C. 8101] Increases mandatory CCC funding to $2 mandatory funding for FY2008 through funding of $1 million in 2008, and $2 million for each of FY2008 through FY2012. [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] Biorefinery Assistance No 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 CRS-14 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] Repowering Assistance Section 9003. Established a grant Renamed as the Biorefinery New section 9005 of FSRIA: Renamed New section 9004 of FSRIA. Provides program to help finance the cost of Development Program and extended the Biorefinery and Repowering payments to encourage biorefineries in developing and constructing biorefineries through FY2012. It replaces grants with Assistance Program, it refocuses existence on the date of enactment to and biofuel production plants to carry out new loan guarantee authority of $2 emphasis on "advanced biofuel" convert from fossil fuel to renewable projects to demonstrate the commercial billion for biorefineries -- one-half for production in renewable-fuel-powered energy power sources. Encourages new viability of converting biomass to fuels loans less than $100 million, and the biorefineries. Provides competitive production of energy for refineries from or chemicals. No mandatory funding was other half for loans between $100 and grants for up to 50% of project costs for renewable biomass. Mandatory funding authorized and no discretionary funding $250 million. The loan guarantee would pilot- and demonstration-scale of $35 million for FY2009, to remain has been appropriated for the program. cover 90% of an eligible loan. Requires biorefineries; matching funds for available until expended. Discretionary Therefore, no implementation regulations that construction contractors and feasibility studies; competitive grants for funding of $15 million annually for have been developed. [7 U.S.C. 8103] subcontractors on federally assisted loan up to 20% of total costs for the FY2009-12 is authorized. [Sec. 9001] guarantee projects pay their employees repowering of fossil-fueled biomass not less than the prevailing wage in the conversion facilities with renewable same locality under the Davis-Bacon Act. resources; and loan guarantees for up to Authorizes mandatory CCC funding of 80% of total eligible project costs for the $75 million in FY2008; $100 million in development and construction of FY2009; $125 million in FY2010; $200 commercial-scale biorefineries and the million in FY2011; and $300 million in repowering of biomass conversion FY2012 for a total in new mandatory facilities 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] Bioenergy Program for Advanced Biofuels Section 9010. Originally created by a .Renews and extends the bioenergy New section 9006 of FSRIA. Renews and New section 9005 of FSRIA. Establishes 1999 Executive Order during the Clinton program through FY2012. Ethanol extends the Bioenergy Program through the Bioenergy Program for Advanced CRS-15 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) Administration, the bioenergy program produced from corn starch is excluded. FY2012. Bases the payment rate on: (1) Biofuels to encourage production of provides CCC incentive payments to Expands eligibility for the production advanced biofuel production, (2) advanced biofuels. Not more than 5% of biofuels producers based on year-to-year incentive to the production of heat and feedstock prices, and (3) net the funds can go to facilities with total increases in the quantity of biofuel power at a biofuels plant, biomass non-renewable energy content of the refining capacity exceeding 150 million produced. Mandatory CCC funding of gasification, hydrogen for fuel cells, and biofuel. This will benefit those gallons per year. Producers of advanced $150 million was made available for each renewable diesel. Provides mandatory purchasing feedstocks for cellulosic biofuels contracts with USDA to receive of FY2002 through FY2006. No funding CCC funding of $225 million in FY2008; biofuels and biodiesel. payments based on the quantity and was authorized for FY2007. [7 U.S.C. $250 million in FY2009; $275 million in The program is not available to duration of production of advanced 8108] FY2010; $300 million in FY2011; and those claiming a biofuel blenders' tax biofuels, the net renewable energy $350 million in FY2012 for a total of credit (see Sec. 12312) or those with content of the biofuel, and other factors. $1.4 billion during FY2008-12. [Sec. biofuel production capacity greater than Payments limited to ensure equitable 9007] 150 million gallons per year. distribution. Mandatory funding of $55 Provides $245 million in million for 2009, $55 million for mandatory funding for FY2008 through FY2010, $85 million for FY2011, and FY2012. [Sec. 9001] $105 million for FY2012. Discretionary funding of $25 million annually is authorized for FY2009-12. [Sec. 9001] Biodiesel Fuel Education Program Section 9004. Administered by USDA's Extends the Biodiesel Fuel Education New section 9003 of FSRIA. Same as New section 9006 of FSRIA. Extends the Cooperative State Research, Education, Program through FY2012 with H.R. 2419. [Sec. 9001] Biodiesel Fuel Education Program and Extension Service, awards mandatory funding of $2 million for each through 2012. Mandatory CCC funds of competitive grants to nonprofit of FY2008 through FY2012. [Sec. 9017] $1 million are provided annually for organizations that educate governmental FY2008-12. [Sec. 9001] and private entities operating vehicle fleets, and educates the public about the benefits of biodiesel fuel use. Mandatory CCC funding of $1 million was authorized for each of FY2003 through FY2007. [7 U.S.C. 8104] Energy Audit and Renewable Energy Development Program Section 9005. A competitive grant Section 9004. Extends the Energy Audit New section 9007 of FSRIA. Extends See new section 9007 of FSRIA below. program for eligible entities to provide and Renewable Energy Development the Energy Audit and Renewable Energy energy audits and technical assistance to Program through FY2012. Development Program through FY2012, agricultural producers and rural small but folds it into the new Rural Energy for businesses to assist them in becoming America Program where mandatory more energy efficient and in using funding is available (see the Renewable renewable energy technology and Energy Systems section for more CRS-16 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) resources. Authorized appropriations of information). [Sec. 9001] such sums as are necessary to carry out the program for each of FY2002 through FY2007. [7 U.S.C. 8105] Rural Energy for America Program The Renewable Energy Systems and Renamed as the Rural Energy for New section 9007 of FSRIA. Renamed New section 9007 of FSRIA. Renamed Energy Efficiency Program (Section America Program. Includes other as the Rural Energy for America as the Rural Energy for America 9006), administered by USDA's Rural agricultural producers as eligible Program, this section adds the option to Program. Provides grants and loan Development Agency, authorizes direct recipients. Raises the loan guarantee receive a production incentive payment guarantees to State governments, tribal, loans, loan guarantees, and grants to level from $10 million to $25 million. in lieu of a grant, and stipulates that a or local governments, land-grant farmers, ranchers, and rural small Grant fund cost share is retained at up to grant may cover up to 25% of project institutions, or rural electric cooperatives businesses to purchase and install 25% of project costs; however, combined costs while a loan guarantee may cover or utilities to provide energy audits and renewable energy systems and to make grants and loans (including guarantees) is up to 75% of the cost. Preference given renewable energy assistance, and energy efficiency improvements. Grant expanded to 75% of project cost. 10% of to state-funded projects. Direct loans are financial assistance for energy efficiency funds may be used to pay up to 25% of funds are available for feasibility studies, excluded. Adds state agencies and public improvements and renewable energy project costs; combined grants and loans but excludes recipient from other power entities to eligible participants. systems. Grants up to 25% of cost are or loan guarantees may fund up to 50% assistance for feasibility studies. Energy from manure: Provides grants provided. Loan guarantees up to $25 of project cost. Eligible projects include Includes sale of electricity from and loan guarantees to build and evaluate million. Combined amount of grant and those that derive energy from wind, solar, renewable energy systems as eligible on-farm and community animal manure- guaranteed loans limited to 75% of cost. biomass, or geothermal sources. Projects activities for grant and loan funding. to-energy facilities for which agricultural 20% of funds made available in this using energy from those sources to 15% of funds available reserved for producers, rural small businesses, and section to be reserved for grants of produce hydrogen from biomass or water projects of $50,000 or less. Increases cooperatives are eligible participants. $20,000 or less until the end of the fiscal are also eligible. Mandatory CCC mandatory CCC funding to $50 million Criteria based on energy quality, year. Mandatory CCC funds of $55 funding of $23 million was made in FY2008; $75 million in FY2009; $100 efficiency, environmental issues million in FY2009, $60 million in available for each of FY2003 through million in FY2010; $125 million in greenhouse gas emissions, diversity FY2010, $70 million in FY2011, and $70 FY2007. Unspent money lapses at the FY2011; and $150 million in FY2012 for factors and cost. Establishes streamlined million in FY2012. Discretionary end of each year. [[7 U.S.C. 8106] total new mandatory funding of $500 review and application process for small- funding of $25 million annually is million during FY2008-FY2012. [Sec. scale projects (under $20,000), and authorized to be appropriated for 9005] requires that 20% of funds be used for FY2009-12. [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 CRS-17 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] Biomass Research and Development Program This program -- created originally under Extends the program through FY2012. New section 9008 of FSRIA. Extends the New section 9008 of FSRIA. Moves the the Biomass Research and Development Authorizes mandatory CCC funding of program and transfers statutory authority Biomass Research and Development Act Act of 2000 (BRDA, P.L. 106-224) -- $35 million in FY2008; $60 million in to this act. Adds new emphasis on of 2000 in statute to Title IX of FSRIA of provides competitive funding for FY2009; $75 million in FY2010; $100 utilization of byproducts such as dried 2002. Defines biobased product. research, development, and million in FY2011; and $150 million in distillers grains and solubles (DDGS) and Expands advisory committee. New demonstration projects on biofuels and FY2012 for total new mandatory funding development of technologies for harvest, technical areas for grants include bio-based chemicals and products, under of $420 million during FY2008-FY2012. storage, pre-processing and feedstock development, biofuels and the Biomass Research and Development Continues the appropriations transportation of renewable biomass biobased products development and Initiative, administered jointly by USDA Appropriation authority of$200 million feedstocks. Provides mandatory funding biofuels development analysis with a and DOE. Creates Biomass research and in each of FY2008 through FY2015. (to remain available until expended) of minimum of 15% of funding going to Development Board to coordinate [Sec. 9006] $15 million in FY2008, $25 million in each area. Minimum cost-share government activities in biomass FY2009, and $35 million in FY2010 for requirement for demonstration projects research, and the Biomass Research and a total in new mandatory funding of $75 increased to 50% and research projects to Development Technical Advisory million during FY2008-FY2012. Also 20%. Provides for coordination of Committee to advise on proposal includes the appropriations authority for biomass research and development, direction and evaluation. Authorized $85 million in each of FY2008 through including life cycle analysis of biofuels, mandatory CCC funding of $5 million in FY2012. [Sec. 9001] between USDA and DOE. Authorizes FY2002 and $14 million for each of mandatory funding of $20 million for FY2003 through FY2007 (available until FY2009, $28 million for FY2010, $30 expended). Additional appropriation million for FY2011, and $40 million for authority of $200 million for each of FY2012. Discretionary funding of $35 FY2006 through FY2015. [7 U.S.C. million is authorized to be appropriated 8101] annually for FY2009-12. [Sec. 9001] Rural Energy Self-Sufficiency Initiative No provision. Establishes the Rural Energy Self- New section 9015 of FSRIA. Establishes New section 9009 of FSRIA. Establishes Sufficiency Initiative to provide cost- a program -- the Rural Energy Systems the Rural Energy Self-Sufficiency share grants to enable eligible rural Renewal Program -- of competitive Initiative to assist rural communities with communities (with population less than cost-shared grants (50% maximum community-wide energy systems that 25,000) to substantially increase their federal share) for rural communities to reduce conventional energy use and energy self-sufficiency. Grants may not assess their energy systems and formulate increase the use of energy from exceed 75% of costs. Requires a report strategies for improvements. Authorizes renewable sources. Grants are made to Congress on best practices/approaches. discretionary funding of $5 million available to assess energy use in a rural Total grants under this section are limited annually for FY2008-12. [Sec. 9001] community, evaluate ideas for reducing CRS-18 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. Authorizes energy use, and develop and install discretionary appropriations for grants of integrated renewable energy systems. not more than $5 million for FY2008, Grants not to exceed 50% of the total and such sums as are necessary for cost of the activity. Appropriations of $5 FY2009-12. [Sec. 9011 (appended as million annually are authorized for section 9014 of FSRIA)] FY2009 -- 12. [Sec. 9001] Feedstock Flexibility Program for Bioenergy Producers No provision. Requires that USDA establish (in See 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 provision House provision with amendments. [Sec. ethanol program using sugar intended for entitled the "Feedstock Flexibility 9001] food use but deemed to be in surplus. Program for Bio-Energy Producers". USDA would implement the program Identical to the House provision. only in those years where purchases are determined to be necessary to ensure that the sugar program operates at no cost. The use of such sums as necessary to carry out the program is authorized. [Sec. 9013] (would be appended as Section 9016 of FSRIA). Biomass Crop Assistance Program No provision. Establishes a new Biomass Energy New section 9004 of FSRIA. Creates the New section 9011 of FSRIA. Establishes Reserve (BER) to encourage through Biomass Crop Transition Assistance the Biomass Crop Assistance Program financial assistance the production of Program to stimulate production of (BCAP) to provide producers committing dedicated energy crops, establish biomass biomass crops. USDA provides technical to biomass production or a biomass energy reserve project areas, and to and financial assistance for the conversion facility with contracts which provide financial and technical assistance production of perennial bioenergy crops will 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 cellulosic Restricted to advanced biofuels, biobased crop establishment costs and annual material to bioenergy facilities. Provides products, or heat or power from a payments t for biomass production. financial and technical assistance biomass conversion facility. Provides Producers must be within economically (including five-year contracts) to $130 million in mandatory funding for practicable distance from a biomass landowners and operators to grow FY2008 through FY2012 to support facility and adhere to resource dedicated energy crops as feedstock for biomass production. Also provides $10 conservation requirements. Cost-share cellulosic ethanol and other energy million in mandatory funding for each of payments cover costs of establishing production. BER projects must be within FY2009 through FY2011 (to remain crop, for collection, harvest, storage and a 50-mile radius of a bioenergy facility. available until expended) for a fixed transportation to a biomass conversion Authorizes mandatory funding of such assistance payment to agricultural facility. Annual payments authorized to CRS-19 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 of A report is required no later than 4 years biomass crops for use in a biomass after enactment. Mandatory CCC funds conversion facility. Requires USDA of such sums as necessary are made provide public information on the available for each of FY2008-12. [Sec. production potential, environmental 9001] 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] Forest Biomass for Energy No provision. .Establishes a new competitive research New section 9013 of FSRIA. Same as New section 9012 of FSRIA. Forest and development program to encourage the House provision, but with Service competitive research and the use of woody biomass for bioenergy discretionary (not mandatory) development program to encourage use production. Provides mandatory CCC authorization of $5 million for each of of forest biomass for energy. Priority to funding of $15 million for each of FY2008-12. [Sec. 9001] projects that use low-value forest FY2008-12. [Sec. 9019] byproduct biomass for the production of energy, develop processes to integrate bioenergy from forest biomass into existing manufacturing streams and develop new transportation fuels and improve the production of trees for renewable energy. Authorized appropriations of $15 annually for FY2009-12. [Sec. 9001] Community Wood Energy Program No provision. Establishes Community Wood Energy New section 9014 of FSRIA. Similar to New section 9013 of FSRIA. Same as Program to provide matching grants to House provision except specifies Senate provision. [Sec. 9001] State and local governments to acquire matching grants of up to $50,000. community wood energy systems for Provides discretionary funding of $5 public buildings and to implement a million for each of FY2008-12. [Sec. community wood energy plan to meet 9001] energy needs with reduced carbon intensity through conservation, reduce costs, and utilize low-value wood sources, and increase awareness of CRS-20 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] Biofuels Infrastructure Study No provision. No provision. New section 9018 of FSRIA. Directs Requests USDA, DOE, EPA and DOT to USDA, in collaboration with the DOE jointly report on the infrastructure needs and DOT and EPA, to conduct a study of and development approaches for the infrastructure needs associated with a expanding the domestic production, significant expansion in biofuel transport, and distribution of biofuels, production and use. Specifically includes and the required infrastructure. [Sec. dedicated ethanol pipeline feasibility 9002] studies and examination of water resource needs. Requires a report to Congress on the results of the studies. Authority to appropriate $1 million for each of FY2008 and FY2009. [Sec. 9001] Rural Fertilizer Study No provision. No provision. New section 9019 of FSRIA. Requires Requires a report within 1 year of USDA to conduct a Renewable Nitrogen appropriations on the production of Fertilizer Study to assess the feasibility of fertilizer from renewable energy sources producing nitrogen fertilizer from in rural areas. Report must identify renewable energy (and submit a report to challenges to commercialization of rural Congress within 270 days). Provides fertilizer production, processes and discretionary funding of $1 million for technologies 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. 9003] CRS-21 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) Title XI: Livestock Study on Bioenergy Operations No 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] Title XV: Trade and Tax Provisions; Subtitle C PART II -- Energy Provisionsa Credit for Production of Cellulosic Biofuel Under the American Jobs Creation Act No provision. Provides for a total income tax credit of Provides a fourth tax credit under 26 (AJCA) of 2004, (P.L. 108-357), $1.25 per gallon for cellulosic ethanol U.S.C. 40, the Cellulosic Biofuel cellulosic ethanol, once developed, blended (inclusive the standard ethanol Producer Credit. The credit is $1.01 per would receive the current tax credit of tax credit of $0.51/gal. and the small gallon less the amount of small-producer $0.51 per gallon available to any ethanol producer credit of $0.10/gal.). The 15 ethanol credit claimed and the alcohol blended into gasoline as provided, million gallon limitation on the $0.10 mixture credit claimed for ethanol. through Dec. 31, 2010. [26 U.S.C. 40] credit is waived for small cellulosic [Sec. 15321] ethanol producers. Applicable only for domestically produced cellulosic ethanol. The producer credit is extended through April 1, 2015. [Sec. 12312] Comprehensive Study of Biofuels No 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] CRS-22 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) Alcohol Fuel: Modification of Alcohol Credit Any ethanol blended into gasoline is No provision. Reduces the ethanol blenders' tax credit Reduces the ethanol tax credit of $0.51 eligible for a tax credit of $0.51 per of $0.51 per gallon to $0.46 per gallon per gallon to $0.45 per gallon beginning gallon as provided under current law beginning in the first calendar year after in the first calendar year after the year in (AJCA of 2004, P.L. 108-357) through the year in which 7.5 billion gallons of which 7.5 billion gallons of ethanol is Dec. 31, 2010. [26 U.S.C. 40] ethanol is produced. [Sec. 12315] produced. [Sec 15331] Alcohol Fuel: Calculation of Volume of Alcohol for Fuel Credits Under current law (AJCA of 2004, P.L. No provision. Reduces the permissible volume of Reduces the permissible volume of 108-357) the volume of bio-alcohol denaturant to 2% for purposes of denaturant to 2% for purposes of counted as fuel eligible for the tax credit calculating the volume of alcohol eligible calculating the volume of alcohol eligible may include up to 5% of the volume as for the tax credit. [Sec. 12316] for the tax credit. [Sec. 15332] denaturant. [26 U.S.C. 40] Alcohol Fuel: Ethanol Tariff Extension Under current law (Heading 9901.00.50 No provision. Extends the tariff or 54 cents per gallon Adopts Senate provision. [Sec 15333] of the Harmonized Tariff Schedule for imported ethanol or mixtures of (HTS)) imports of ethyl alcohol are ethanol (headings 9901.00.50 and subject to a duty of 14.27¢ per liter 9901.00.52 of the HTS) through Dec. 31, ($0.54 per gallon) and a duty of 5.99¢ 2010. [Sec. 12317] per liter (Heading 9901.00.52; HTS) on imports of ethyl tertiary-butyl ether through Dec. 31, 2008. [19 U.S.C. Chapter 18] Alcohol Fuel: Limitations on, and Reductions of, Duty Drawback on Certain Imported Ethanol Under current law (Section 1313 of the No provision. Eliminates the ability to obtain a refund Adopts the Senate provision. [Sec. Tariff Act of 1930, as amended) permits of the duty imposed under HTS 15334] the refund of duty if the duty-paid good 9901.00.50 on imported ethanol by is re-exported or used to make a good substitution of either ethanol not subject that is exported. In particular, a person to the duty, or of another petroleum who manufactures gasoline with ethanol product, that is exported to obtain the subject to the duty imposed under either drawback. [Sec. 12318] HTS 9901.00.50, can export jet fuel (which does not contain ethanol) and obtain a refund of the duty paid. [19 U.S.C. Chapter 18] a. For 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", Joint Committee on Taxation, JCX-94-07, October 2, 2007. ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34130