For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34239 ------------------------------------------------------------------------------ Order Code RL34239 Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill: A Side-by-Side Comparison Updated June 27, 2008 Tom Capehart and Randy Schnepf Specialists in Agricultural Policy Resources, Science, and Industry Division Brent D. Yacobucci Specialist in Energy and Environmental Policy Resources, Science, and Industry Division Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill: A Side-by-Side Comparison Summary The Energy Independence and Security Act of 2007 (EISA, P.L. 110-140), also known as the 2007 energy bill, significantly expands existing programs to promote biofuels. The Food, Conservation, and Energy Act of 2008 (P.L. 110-246), also known as the 2008 farm bill, contains a distinct energy title (Title IX) that covers a wide range of energy and agricultural topics with extensive attention to biofuels, including corn-starch based ethanol, cellulosic ethanol, and biodiesel. Research provisions relating to renewable energy are found in Title VII and tax provisions are found in Title XV of the farm bill. Key biofuels-related provisions of EISA and the 2008 farm bill include: ! a major expansion of the renewable fuel standard (RFS) established in the Energy Policy Act of 2005 (P.L. 109-58) [EISA]; ! expansion and/or modification of tax credits for ethanol [farm bill]; ! grants and loan guarantees for biofuels (especially cellulosic) research, development, deployment, and production [EISA, farm bill]; ! studies of the potential for ethanol pipeline transportation, expanded biofuel use, market and environmental impacts of increased biofuel use, and the effects of biodiesel on engines [EISA, farm bill]; ! expansion of biofuel feedstock availability [farm bill]; ! reauthorization of biofuels research and development at the U.S. Department of Energy [EISA] and the U.S. Department of Agriculture and Environmental Protection Agency [farm bill]; and ! reduction of the blender tax credit for corn-based ethanol, a new production tax credit for cellulosic ethanol, and continuation of the import duty on ethanol [farm bill]. This report includes information from CRS Report RL34130, Renewable Energy Policy in the 2007 Farm Bill, by Randy Schnepf and Tom Capehart, and CRS Report RL34136, Biofuels Provisions in the Energy Independence and Security Act of 2007 (P.L. 110-140), H.R. 3221, and H.R. 6: A Side-by-Side Comparison, by Brent D. Yacobucci. Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Key Elements of EISA and the 2008 Farm Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 List of Tables Table 1. Comparison of Current or Prior Law with Biofuels Provisions in EISA and the Enacted Farm Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill: A Side-by-Side Comparison Introduction Recent high energy prices, concerns over energy security, and the desire to promote rural business and to reduce air pollutant and greenhouse gas emissions have sparked congressional interest in promoting greater use of alternatives to petroleum fuels. Biofuels -- transportation fuels produced from plant and animal materials -- have attracted particular interest. Ethanol and biodiesel, the two most widely used biofuels, receive significant federal support in the form of tax incentives, loan and grant programs, and regulatory programs.1 The Energy Policy Act of 2005 (EPAct, P.L. 109-58) established a renewable fuel standard (RFS). This initial RFS required the increasing use of renewable fuel in gasoline, starting at 4.0 billion gallons in 2006 and increasing to 7.5 billion gallons in 2012. However, the RFS was significantly expanded on December 19, 2007, when President Bush signed the Energy Independence and Security Act of 2007 (EISA). Instead of requiring 5.4 billion gallons of renewable fuel in 2008, the new law requires 9.0 billion gallons. Further, the 2007 law requires that the RFS be expanded to 36 billion gallons of renewable fuel by 2022, as compared to an estimated 8.6 billion gallons under EPAct. Although this is not an explicit ethanol mandate, it is expected that much of this requirement will be met using corn-based ethanol.2 The U.S. ethanol industry expanded rapidly in response to EPAct, outpacing the required growth in the earlier RFS and leading some proponents of corn-based ethanol to support an increase in the mandated levels of the RFS. The Food, Conservation, and Energy Act of 2008 (2008 farm bill, P.L. 110-246) promotes the development of cellulosic ethanol production through new blender tax credits, reduces slightly the production tax credit for corn-derived ethanol when production reaches 7.5 billion gallons, and continues the tariff on imported ethanol. It also expands research on agricultural renewable energy and encourages infrastructure development needed for cellulosic ethanol production. During the final months of the farm bill debate, both food and fuel prices increased dramatically, and the role of corn-based ethanol in food price inflation 1 For more information on federal biofuels incentives, see CRS Report RL33572, Biofuels Incentives: A Summary of Federal Programs, by Brent D. Yacobucci. 2 For more information on ethanol, see CRS Report RL33290, Fuel Ethanol: Background and Public Policy Issues, by Brent D. Yacobucci. CRS-2 became a subject of intense debate. Because of the rapid expansion of U.S. corn ethanol capacity -- as of May 28, 2008, existing capacity was an estimated at 8.7 billion gallons per year, while an additional 4.9 billion gallons was under construction3 -- some are concerned that the United States will soon reach the limit of ethanol that can be produced from corn. Critics of corn-based ethanol argue that the industry does not need continued government support, and that current corn demand for ethanol is putting a strain on corn and other grain markets, leading to increases in other commodity prices, such as livestock feed, which then leads to higher dairy and meat prices.4 Critics also argue that the environmental costs of corn- based ethanol may outweigh the benefits. Proponents of corn-based ethanol production assert that increased acreage and upward-trending yields will enable corn producers to satisfy the demand for corn for feed, fuel, and exports. Advanced biofuels based on non-food feedstocks are generating much interest. Feedstocks that could be grown on marginal land with reduced inputs compared with corn would solve the food versus fuel issue, it has been argued. However, biofuels that rely on other sources of biomass, including agricultural wastes, municipal solid waste, and dedicated non-food energy crops such as perennial grasses, fast-growing trees, and algae are still years from commercial production. Nonetheless, this interest has led to proposals to support and/or mandate biofuels produced from feedstocks other than corn starch through explicit requirements, research, development and extension funding, and/or tax incentives.5 Non-corn biofuels could include fuels produced from cellulosic material (such as perennial grasses), ethanol produced from sugarcane or beets, and biodiesel or renewable diesel produced from vegetable or animal oils.6 Under EISA, eligible corn-based ethanol production is capped at 15 billion gallons by 2015. Starting in 2009, the RFS will require that an increasing amount of the mandate be met through the use of "advanced biofuels" -- biofuels produced from feedstocks other than corn starch. Key Elements of EISA and the 2008 Farm Bill The following table provides a side-by-side comparison of biofuels-related provisions in EISA with the enacted farm bill -- the Food, Conservation, and Energy Act of 2008. President Bush signed EISA on December 19, 2007, and the Food, Conservation, and Energy Act of 2008 became law on June 18, 2008, after President 3 Renewable Fuels Association, [http://www.ethanolrfa.org/industry/locations]. 4 For more information on the issues surrounding rapid ethanol expansion, see CRS Report RL33928, Ethanol and Biofuels: Agriculture, Infrastructure, and Market Constraints Related to Expanded Production, by Brent D. Yacobucci and Randy Schnepf. 5 Non-corn-starch feedstocks include other parts of the corn plant, such as the husks and the stalks, which are high in cellulose. 6 For more information on biodiesel, see CRS Report RL32712, Agriculture-Based Renewable Energy Production, by Randy Schnepf. CRS-3 Bush's veto was overridden by both the Senate and the House.7 Both bills cover a wide range of energy and agricultural topics in addition to biofuels. The table is organized in the same order as EISA, followed by provisions that are exclusively in the enacted farm bill. Key biofuels-related provisions of EISA and the 2008 farm bill include: ! a major expansion of the renewable fuel standard (RFS) established in the Energy Policy Act of 2005 (P.L. 109-58) [EISA]; ! expansion and/or modification of tax credits for ethanol [farm bill]; ! grants and loan guarantees for biofuels (especially cellulosic) research, development, deployment, and production [EISA, farm bill]; ! studies of the potential for ethanol pipeline transportation, expanded biofuel use, market and environmental impacts of increased biofuel use, and the effects of biodiesel on engines [EISA, farm bill]; ! expansion of biofuel feedstock availability [farm bill]; ! reauthorization of biofuels research and development at the U.S. Department of Energy [EISA] and the U.S. Department of Agriculture and Environmental Protection Agency [farm bill]; and ! reduction of the blender tax credit for corn-based ethanol, a new production tax credit for cellulosic ethanol, and continuation of the import duty on ethanol [farm bill]. 7 The conference agreement on the 2008 farm bill was originally approved by the House and the Senate as H.R. 2419 and vetoed by the President in May 2008. Both chambers overrode the veto, making the bill law (P.L. 110-234). However, the trade title was inadvertently excluded from the enrolled bill. To remedy the situation, both chambers repassed the farm bill conference agreement (including the trade title) as H.R. 6124. The President vetoed the measure in June 2008 and both chambers again overrode the veto, which made H.R. 6124 law (P.L. 110-246), and repealed P.L. 110-234. CRS-4 Table 1. Comparison of Current or Prior Law with Biofuels Provisions in EISA and the Enacted Farm Bill Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) P.L. 110-140, Title I -- Energy Security Through Improved Fuel Economy Consumer Information No prior provision. The Dept. of Transportation is required to carry No comparable provision. out an educational program to inform consumers about the fuel savings and emissions benefits of new vehicles, including the benefits from the use of alternative fuels. [Sec. 105] Fuel Tank Labeling No prior provision. Requires the Dept. of Transportation to issue a No comparable provision. Requirement final rule by June 2011 requiring automakers to clearly label the fuel compartment of alternative fuel vehicles with the form of alternative fuel stated on the label. [Sec. 105] Extension of Flexible Fuel Under the Corporate Average Fuel Amends the CAFE program to extend alternative No comparable provision. Vehicle Credit Program / Economy (CAFE) program, automakers fuel vehicle credits through model year 2019, at a Biodiesel as Alternative fuel may generate credits toward their declining rate. Also allows vehicles capable of for CAFE Purposes compliance for the production and sale operating on B20 to be treated as vehicles eligible of alternative fuel vehicles, as defined in for CAFE credits. Expanding the definition of law. Currently, B20 (a blend of 20% alternative fuel vehicle to include B20 could biodiesel and 80% petroleum diesel) make all diesel passenger cars and light trucks vehicles are not considered alternative eligible for credits under CAFE. Currently, some fuel vehicles. [49 U.S.C. 32901 et seq.] diesel passenger vehicles are warrantied to run on B5, but few technical barriers exist to make new diesel vehicles B20-capable. [Sec. 109] P.L. 110-140, Title II -- Energy Security Through Increased Production of Biofuels Renewable Fuel Standard The Energy Policy Act of 2005 Amends the RFS to include all transportation No comparable provision. established a Renewable Fuel Standard fuels (except for fuels used in ocean-going (RFS) which requires the use of an vessels). Expands the existing requirement to 9.0 CRS-5 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) increasing amount of renewable fuels in billion gallons in 2008, increasing to 36 billion gasoline. The mandate increases from gallons in 2022. Requires renewable fuels 4.0 billion gallons in 2006 to 7.5 billion produced at new facilities to have at least 20% gallons in 2012. Starting in 2013, the lower lifecycle greenhouse gas (GHG) emissions proportion of renewable fuel to gasoline than petroleum fuels. Starting in 2009, requires must equal or exceed the proportion in that an increasing amount of the above mandate 2012. Starting in 2013, of the amount be met using "advanced biofuels," defined as mandated above, at least 250 million biofuels derived from feedstocks other than corn gallons must be fuel derived from starch with 50% lower lifecycle GHG emissions. cellulosic material. By 2022, requires 21 billion gallons of advanced [P.L. 109-58, Sec. 1501], [42 U.S.C. biofuel. Of the advanced biofuel mandate, 7545] specific carve-outs are made for cellulosic fuels and biomass-derived diesel substitutes. [Sec. 202] Study of Impact of Increased By August 2009, EPA must publish a DOE, in consultation with USDA and EPA, is Comprehensive Study of Biofuels -- The Renewable Fuel Use draft analysis of the effects of the fuels required to enter into an agreement with the Dept. of Treasury, with DOE, USDA, and provisions in P.L. 109-58 on air National Academy of Sciences (NAS) to study EPA shall have the National Academy of pollutant emissions and air quality. [P.L. the impacts of the RFS on industries related to Sciences analyze scientific findings on 109-58, Sec. 1505], [42 U.S.C. 7545(b)] feed grains, livestock, food, forest products, and current and future biofuels production, energy. The NAS study must assess the likely impacts, trends, and policies. [Sec. 15322] EPA is required to conduct a survey to effects on domestic animal agriculture and policy determine the market share of gasoline options to alleviate negative effects; identify containing ethanol and other renewable agricultural conditions that would warrant a fuels. [P.L. 109-58, Sec. 1501(c)], [42 waiver of the RFS requirements; and make U.S.C. 7545] recommendations to limit adverse economic impacts from the RFS. DOE is required to collect and publish [Sec. 203] monthly survey data on the production, blending, importing, demand, and price of renewable fuels, both on a national and regional basis. [P.L. 109-58, Sec. 1508], [42 U.S.C. 7135] CRS-6 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) Environmental and Resource No prior provision. EPA, in consultation with the USDA and DOE, No comparable provision. Conservation Impacts must study the impacts of the RFS on environmental issues, resource conservation issues, and invasive or noxious species. [Sec. 204] Biomass Based Diesel and No prior provision. The Federal Trade Commission is required to No comparable provision. Biodiesel Labeling promulgate rules requiring diesel retailers to label their pumps with the percentage of biomass- based diesel or biodiesel that is offered for sale. [Sec. 205] Study of Credits for Use of Under the original RFS, cellulosic EPA is required to study the feasibility of issuing No comparable provision. Renewable Electricity in biofuels are eligible for additional credits under the RFS for electric vehicles Electric Vehicles / credits under the mandate. A gallon of powered by electricity from renewable resources. Production of Renewable cellulosic biofuel is considered equal to Within 180 days of enactment, EPA must report Fuel Using Renewable 2.5 gallons of ethanol. For this section, to Congress on the findings of the study. Energy "cellulosic biofuels" includes both [Sec. 206] biofuels produced from cellulose and biofuels produced from sugars or starches (e.g., corn ethanol) if biomass is used to displace fossil energy in the refining of the fuel. [P.L. 109-58, Sec. 1501], [42 U.S.C. 7545] Grants for Production of The DOE may provide grants for the Requires DOE to establish a grant program for Biorefinery Assistance. New section 9003. Advanced Biofuels construction of facilities to produce the production of advanced biofuels that have at Provides competitive grants and loan renewable fuels (including ethanol) from least an 80% reduction in lifecycle greenhouse guarantees for construction and retrofitting cellulosic biomass, agricultural gas emissions relative to current fuels. of biorefineries for the production of byproducts, agricultural waste, and Authorizes discretionary appropriation of a total advanced biofuels. Biorefinery grants up to municipal solid waste. Discretionary of $500 million for FY2008-FY2015. 30% of total cost. Loan guarantees limited appropriations of $100 million for [Sec. 207] to $250 million or 80% of project cost. FY2006, $250 million for FY2007, and Mandatory funding of $75 million in $400 million for FY2008 are authorized. FY2009 and $245 million in FY2010, CRS-7 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) [P.L. 109-58, Sec. 1512] available until expended for loan guarantees. An existing grant program finances the Discretionary funding of $150 million development and construction of annually is authorized for FY2009-12. biorefineries and biofuel production [Sec. 9001] plants and implements projects to demonstrate the commercial viability of Repowering Assistance. New section 9004. converting biomass to fuels or Provides USDA funds for repowering chemicals. No funds have been assistance to reduce or eliminate their use of appropriated for the program. fossil fuels for biorefineries in existence at [P.L. 107-171, Sec. 9003], [7 USC enactment. Mandatory Commodity Credit 8103] Corporation (CCC) funding of $35 million for FY2009, available until expended. Authorizes discretionary funding of $15 million annually for FY2009-12. [Sec. 9001] Integrated Consideration of Section 211(c) of the Clean Air Act Expands EPA's authority to control engines, No comparable provision. Water Quality in allows EPA to control or prohibit the vehicles, fuels, and fuel additives under Sec. Determinations on Fuels and production and/or sale of any engine, 211(c) of the Clean Air Act to include effects on Fuel Additives vehicle, fuel, or fuel additive that causes water pollution. or contributes to air pollution "that may [Sec. 208] be reasonably anticipated to endanger the public health or welfare." [42 U.S.C. 7545(c)] Anti-Backsliding No provision. Requires EPA to study the potential adverse No comparable provision. effects to air quality from the expanded RFS, and to promulgate regulations to mitigate those effects. [Sec. 209] Effective Date, Savings No provision. For 2008 and 2009, any ethanol plant powered by No comparable provision. Provision, and Transition natural gas, biomass, or a combination of the two Rules is treated as having a 20% reduction in lifecycle greenhouse gas emissions (See Sec. 202). For CRS-8 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) 2008, all current EPA regulations on the RFS are unchanged, except for the increase in the volume mandated by Sec. 202. [Sec. 210] Biodiesel Report No provision. Requires the DOE to report to Congress on the No comparable provision. R&D challenges to expanding biodiesel use (to an unspecified level) [Sec. 221] Biogas Report No provision. Requires the DOE to report to Congress on the No comparable provision. R&D challenges to expanding biogas and biogas/natural gas blends (to an unspecified level). [Sec. 222] Grants for Biofuel DOE is authorized to receive $25 million Discretionary appropriations of $25 million No comparable provision. Production and R&D in annually for FY2006-FY2010 for R&D authorized annually for FY2008-FY2010 for Certain States and implementation of renewable fuel R&D and commercial application of biofuel production technologies in states with production in states with low rates of ethanol and low rates of ethanol production that are cellulosic ethanol production (this could in effect under the federal reformulated gasoline apply to all states). (RFG) program. [Sec. 223] [P.L. 109-58, Sec. 1511(d)], [42 U.S.C. 7411] Biorefinery Energy The DOE is directed to conduct research Amends Sec. 932 of P.L. 109-58 to include No comparable provision. Efficiency on commercial applications of biomass research on energy efficiency at biorefineries and and bioenergy. on technology to convert existing corn-based [P.L. 109-58, Sec. 932], [42 U.S.C. ethanol plants to process cellulosic materials. 16232] [Sec. 224] Study of Optimization of No provision. DOE is directed to study whether optimizing No comparable provision. Flexible Fueled Vehicles to flexible fuel vehicles (FFVs) to run on E85 would use E-85 Fuel increase their fuel efficiency. Current FFVs are optimized to run on gasoline, since that tends to be their primary fuel. [Sec. 225] CRS-9 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) Study of Engine Durability No current provision. DOE, in consultation with EPA, is directed to No comparable provision. and Performance Associated study the effects of various biodiesel/diesel with the Use of Biodiesel blends on engine performance and durability. [Sec. 226] Study of Optimization of No prior provision. DOE is directed to study the potential for No comparable provision. Biogas Used in Natural Gas optimizing natural gas vehicles to run on biogas Vehicles (methane produced from biological feedstocks). [Sec. 227] Algal Biomass Various statutes promote biofuels R&D, DOE is required to report to Congress on No comparable provision. including the development of biofuels progress toward developing algae as a feedstock from algae, at the Department of Energy. for biofuel production. [42 U.S.C. 16232] [Sec. 228] Biofuels and Biorefinery No prior provision. Directs DOE to establish a technology transfer No comparable provision. Information Center center to provide information on biofuels and biorefineries. [Sec. 229] Cellulosic Ethanol and No prior provision. Authorizes the DOE to provide biofuels R&D No comparable provision. Biofuels Research grants to 10 institutions from land-grant colleges, Historically Black Colleges or Universities, tribal serving institutions, or Hispanic serving institutions. $50 million for FY2008 is authorized to be appropriated, to be available until expended. [Sec. 230] Bioenergy R&D - DOE is directed to conduct R&D on Amends Sec. 931 of P.L. 109-58 to authorize a No comparable provision. Authorization of biomass, bioenergy, and bioproducts. total of $1.2 billion in discretionary Appropriation Discretionary appropriations of $213 appropriations for FY2008-FY2010 for R&D on million are authorized for FY2007, $251 biomass, bioenergy, and bioproducts. million for FY2008, and $274 million [Sec. 231] for FY2009. [P.L. 109-58, Sec. 931(c)], [42 U.S.C. 16232] CRS-10 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) Environmental Research and DOE is required to establish a program DOE is required to expand the biological R&D No comparable provision. Development of research, development, and program established in Sec. 977 of P.L. 109-58 to demonstration in microbial and plant include environmental effects, potential for systems biology, protein science, and greenhouse gas reductions, and the potential for computational biology. Biomedical more sustainable agriculture. See also Sec. 233 research and research related to humans of EISA (below). are not permitted as part of the program. [Sec. 232(a)] [P.L. 109-58, Sec. 977], [42 U.S.C. 16232] Lifecycle Analysis Tools for No prior provision. DOE is required to study and develop tools for Requires USDA to support research on Evaluating the Energy evaluating the lifecycle energy consumption and making a farm or ranch energy-neutral. [Sec. Consumption and the potential for greenhouse gas emissions from 7207] Greenhouse Gas Emissions biofuels. from Biofuels [Sec. 232(b)] Small-Scale Production and No prior provision. Amends the Biofuels Research and Development Requires USDA support of on-farm energy Use of Biofuels Act of 2000 to require the Secretary of conservation and renewable energy Agriculture to establish a R&D program to production. [Sec 7207] facilitate small-scale production and local and on- farm use of biofuels. [Sec. 232(c)] Bioenergy Research Centers DOE is required to establish a program Requires the establishment of at least seven No comparable provision. of R&D and demonstration of microbial research centers that focus on bioenergy to be and plant systems biology, protein included in the R&D program established in Sec. science, and computational biology. 977 of P.L. 109-58. Biomedical research and research related [Sec. 233] to humans are not permitted as part of the program. [Energy Policy Act of 2005, P.L. 109- 58, Sec. 977], [42 U.S.C. 16232] CRS-11 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) University Based Research No prior provision. Requires DOE to establish a program of No comparable provision. and Development Grant competitive grants to institutions of higher Program education for research on renewable energy technologies. Each grant may not exceed $2 million. A total of $25 million in discretionary appropriations is authorized for the program. [Sec. 234] Prohibition on Franchise No prior provision. Amends the Petroleum Marketing Practices Act No comparable provision. Agreement Restrictions (15 U.S.C. 2801 et seq.) to make it unlawful for a Related to Renewable Fuel franchiser to prohibit a franchisee from installing Infrastructure E85 or B20 tanks and pumps within the franchise agreement. [Sec. 241] Renewable Fuel Dispenser No prior provision. DOE is required to report to Congress on the No comparable provision. Requirements -- Report to market penetration of flexible fuel vehicles and Congress on the feasibility of requiring fuel retailers to install E85 infrastructure. [Sec. 242] Ethanol Pipeline Feasibility No prior provision. DOE, in consultation with DOT, is required to No comparable provision.. Study report on the feasibility of constructing dedicated ethanol pipelines. $1 million in discretionary funds is authorized annually for FY2008 and FY2009, to remain available until expended. [Sec. 243] Renewable Fuel No prior provision. Directs DOE to provide grants for conversion No comparable provision. Infrastructure Development assistance, technical and marketing assistance, and pilot programs to expand infrastructure for ethanol/gasoline blends of between 11% and 84% ethanol, and renewable fuel/diesel fuel blends of at least 10% renewable diesel. Discretionary funds of $200 million is authorized annually for CRS-12 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) FY2008-FY2014. [Sec. 244] Study of the Adequacy of No prior provision. DOE, jointly with DOT, are required to report on No comparable provision. Transportation of the adequacy of railroads and modes for Domestically-Produced transportation of domestically produced Renewable Fuel by renewable fuel. Railroads and Other Modes [Sec. 245] of Transportation Federal Fleet Refueling No prior provision. Requires the head of each federal agency to No comparable provision. Centers install at least one renewable fuel pump at each federal fleet refueling center by January 1, 2010. Further, the Administration is required to report each October 31 on progress toward meeting this requirement. The requirement does not apply to Department of Defense fueling centers with less than 100,000 gallons in annual fuel turnover. [Sec. 246] Standard Specifications for No prior provision. If ASTM International (originally the American No comparable provision. Biodiesel Society for Testing and Materials) has not adopted standards for B5 and B20 within one year of enactment, the EPA Administrator is required to do so. No new funding is authorized. [Sec. 247] Biofuels Infrastructure No prior provision. Directs DOE to conduct an R&D program on the Requires joint USDA, DOE, EPA study on effects of biofuels on existing transportation fuel the infrastructure needs associated with distribution systems. significant expansion in biofuels production [Sec. 248] and use. [Sec. 9002] Waiver for Fuel or Fuel Under Sec. 211(f) of the Clean Air Act, Prohibits the introduction of new renewable fuels No comparable provision. Additives no new fuels or fuel additives may be or renewable fuel additives unless EPA explicitly introduced into commerce unless grants a waiver under Sec. 211(f) of the Clean granted a waiver by EPA. If EPA has Air Act. EPA is required to take final action CRS-13 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) not acted within 180 days of receipt of a within 270 days of receipt of the waiver request. waiver request, the waiver is treated as Before the passage of EISA, inaction or failure to granted. complete review of an additive by EPA allowed a [42 U.S.C. 7545(f)] fuel to receive the waiver. Under EISA, no waiver would be granted without explicit approval by EPA. [Sec. 251] P.L. 110-140, Title V -- Energy Savings in Government and Public Institutions Capitol Complex E-85 No prior provision. The Architect of the Capitol is authorized to No comparable provision. Refueling Station install an E85 tank and pumping system on or near the Capitol Grounds Fuel Station. $640,000 in discretionary funds is authorized for FY2008. [Sec. 502] Procurement and No prior provision. Federal agencies are prohibited from procuring No comparable provision. Acquisition of Alternative alternative or synthetic transportation fuels if the Fuels lifecycle emissions exceed those of petroleum- based fuels. [Sec. 526] P.L. 110-140, Title VIII -- Improved Management of Energy Policy Sense of Congress Relating No prior provision. Expresses the Sense of the Congress that No comparable provision. to the Use of Renewable renewable resources from agriculture and forestry Resources to Generate should provide at least 25% of all U.S. energy Energy needs by 2025. [Sec. 806] P.L. 110-246, Title VII 2008 Farm Bill -- Energy Provisions (excluding those cited in above sections) Bioenergy Research Provides for research and development Section 1419 of the National Agricultural appropriations for bioenergy. Research, Extension, and Teaching Policy [7 U.S.C. 3154] Act of 1977 (7 U.S.C. 3154) is repealed. Funding for related biomass research CRS-14 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) through USDA is contained in Title VII Sec. 7207 of the farm bill. [Sec. 7110] Biochar Research, No current provision. No comparable provision. Research on biochar (biomass charcoal) Development and production and sequestration is included as a Demonstration high-priority research and extension area the Research Title. [Sec. 7204] Agricultural Bioenergy The Biomass Research and Development No comparable provision. Establishes the Agricultural Bioenergy Feedstock and Energy Act of 2000 (reauthorized by the 2002 Feedstock and Energy Efficiency Research Efficiency Research and farm bill) provides competitive funding and Extension Initiative in Title VII Extension Initiative for R&D and demonstration projects on (Research) to improve biomass, production, biofuels and bio-based chemicals and biomass conversion in biorefineries, and products, administered jointly by USDA biomass use. Provides grants of up to 50% and DOE. Specified mandatory CCC of cost for energy efficient research and funding of $5 million in FY2002 and extension projects. Establishes a best $14 million annually for FY2003- practices database of biomass crops. FY2007 to remain available until Authorized appropriations of $50 million expended. Also authorized annually for FY2008-12. [Sec. 7207] appropriations of $200 million for each of FY2006-FY2015. [P.L. 107-171, Sec. 9008], [7 U.S.C. 5925] Research, Extension, and The "Sun Grant" program established 5 No comparable provision. Continues sun grant program. Provides Educational Programs on national sun grant research centers based matching grants to land grant institutions to Biobased Energy at land-grant universities and each develop, distribute, and implement biobased Technologies and Products covering a different region. The purpose energy technologies and to promote is to enhance coordination and diversification and sustainability of collaboration between USDA, DOE, and agricultural production, and economic land-grant universities in the diversification in rural areas through development, distribution, and biobased energy and product technologies. implementation of biobased energy Establishes a Sun Grant Information technologies. Authorized appropriations Analysis Center. Requires annual reports. CRS-15 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) of $25 million in FY2005, $50 million in Discretionary funds of $75 million for FY2006, and $75 million annually for FY2008-12 are authorized. [Sec. 7526] FY2007-FY2010. [7 U.S.C. 8109] P.L. 110-246, Title IX 2008 Farm Bill -- Energy Provisions (excluding those cited in above sections) Federal Procurement of Under the 2002 farm bill, federal No comparable provision. New section 9002. Renames as the Biobased Products agencies are required to purchase Biobased Markets Program. Extends the biobased products under certain program through FY2012 and refines federal conditions. Current law authorizes a procurement rules for biobased products. voluntary biobased labeling program. Requires federal agencies to maximize USDA regulations define biobased procurement of biobased products and products, identify biobased product submit reports to Congress. Continues categories, and specify the criteria voluntary labeling. Establishes testing (including testing) for qualifying those centers and education grants. Authorizes products for preferred procurement. mandatory funding of $1 million for Mandatory Commodity Credit FY2008 and $2 million annually for Corporation (CCC) funding of $1 FY2009-12. Discretionary funding of $2 million was authorized for each of million in annual appropriations is FY2002-FY2007 for testing biobased authorized for FY2008-12. products. [P.L. 107-171, Sec. 9002], [7 [Sec. 9001] U.S.C. 8102] Adjustments to the Originally a Clinton Administration No comparable provision. New section 9005. Establishes the Bioenergy Program initiative, the Bioenergy Program was Bioenergy Program for Advanced Biofuels. made statutory by the 2002 farm bill. Provides payments to producers to support Provides CCC incentive payments to and expand production of advanced biofuels producers based on year-to-year biofuels. Mandatory funding of $55 million increases in the quantity of biofuel for FY2009, $55 million for FY2010, $85 produced. Mandatory CCC funding of million for FY2011, and $105 million for $150 annually for FY2002-FY2006. No FY2012. Authorizes additional funding was available for FY2007. appropriation of $25 million annually for [P.L. 107-171, Sec. 9010], [7 U.S.C. FY2009-12. [Sec. 9001] 8108] CRS-16 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) Biodiesel Fuel Education Awards competitive grants to nonprofit No comparable provision. New section 9006. Extends the Biodiesel Program organizations that educate governmental Fuel Education Program through FY2012. and private entities operating vehicle Provides mandatory CCC funding of $1 fleets, and educate the public about the million annually for FY2008-12. [Sec. benefits of biodiesel fuel use. 9001] Mandatory CCC funding of $1 million annually was authorized for FY2003- FY2007. [P.L. 107-171, Sec. 9004], [7 U.S.C. 8104] Energy Audit and The 2002 farm bill authorized a No comparable provision. New section 9007. Folds the Energy Audit Renewable Energy competitive grant program for eligible and Renewable Energy Development Development Program entities to carry out a program to assist Program into the Rural Energy for America farmers, ranchers, and rural small Program. (See below.) businesses in becoming more energy [Sec. 9001] efficient and in using renewable energy technology and resources. Authorized appropriations of such sums as are necessary to carry out the program for FY2002-FY2007. [P.L. 107-171, Sec. 9005], [7 U.S.C. 8105] Renewable Energy Systems Authorizes loans, loan guarantees, and No comparable provision. New section 9007. Renamed as the "Rural and Energy Efficiency grants to farmers, ranchers, and rural Energy for America Program," Funds Improvements small businesses to purchase and install energy audits for state agencies, renewable energy systems and to make cooperatives, educational institutions and energy efficiency improvements. utilities. Provides grants, loan guarantees Mandatory CCC funding of $23 million and incentive payments for energy annually for FY2003-FY2007. efficiency and renewable energy, and [P.L. 107-171, Sec. 9006], [7 U.S.C. manure-to-energy projects. Reserves 20% 8106] for small projects. Mandatory funds of $55 million for FY2009, $60 million for CRS-17 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) FY2010, $70 million for FY2011, and $70 million for FY2012. Discretionary appropriations of $25 million annually for FY2009-12 are authorized. [Sec. 9001] Biomass Research and Section 9008. The program -- created No comparable provision. New section 9008. Defines biobased Development originally under the Biomass Research product. Provides for coordination of and Development Act (BRDA) of 2000 biomass research and development between -- provides competitive funding for USDA and DOE. Establishes the Biomas research, development, and Research and Development Board and the demonstration projects on biofuels and Biomass Research and Development bio-based chemicals and products, technical Advisory Committee to assist the administered jointly by USDA and DOE. Board in coordinating biomass research in Specified mandatory CCC funding of $5 the Federal government. USDA and DOE million in FY2002 and $14 million for are to establish a Biomass Research and each of FY2003 through FY2007 Development Initiative to competitively (available until expended). award grants, contracts, and financial Additional appropriation authority of assistance for research on biofuels and $200 million for each of FY2006 biobased products production, and biobased through FY2015. [7 U.S.C. 8101] feedstocks and development. Grants are to be awarded to universities, national laboratories, state and federal research agencies, private businesses, and nonprofits. Mandatory funding is authorized of $20 million for FY2009, $28 million for FY2010, $30 million for FY2011, and $40 million for FY2012. Discretionary funding of $35 million annually is authorized to be appropriated for FY2009-12. [Sec. 9001] Rural Energy Self- No current provision. No comparable provision. New section 9009. Establishes the Rural Sufficiency Initiative Grant Energy Self-Sufficiency Initiative, providing Program cost- share (up to 50%) grants to assist rural communities with community-wide energy systems that reduce conventional energy use CRS-18 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) and increase the use of energy from renewable sources. Grants are made available to assess energy use in a rural community, evaluate ideas for reducing energy use, and develop and install integrated renewable energy systems. Authorizes $5 million in discretionary funds annually for FY2009-12. [Sec. 9001] Feedstock Flexibility No current provision. No comparable provision. New section 9010. Establishes the Program for Bioenergy Feedstock Flexibility Program, authorizing Producers the use of such sums as necessary of CCC funds to purchase surplus sugar, to ensure the sugar program operates at no-net-cost, to be resold as a biomass feedstock to produce bioenergy. [Sec. 9001] Financial Assistance for the No current provision. No comparable provision. New section 9011. Establishes the Biomass Production of Biomass Crop Assistance Program (BCAP) to Energy Crops and encourage biomass production or biomass Infrastructure for conversion facility construction with Harvesting, Storage, and contracts which will enable producers to Transportation of Biomass receive financial assistance for crop to Local Biorefineries establishment costs and annual payments for biomass production. Producers must be within economically practicable distance from a biomass facility. Also provides payments to eligible entities to assist with costs for collection, harvest, storage and transportation to a biomass conversion facility. A report is required no later than 4 years after enactment. CCC funds of such sums as necessary are to be made available for each of FY2008-12. [Sec. 9001] CRS-19 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) Forest Biomass for Energy No current provision. No comparable provision. New section 9012. Requires the Forest Program Service to conduct a competitive research and development program to encourage use of forest biomass for energy. Priority given to projects that utilize low-value forest by- products, integrate the production of energy from forest biomass with existing manufacturing streams, develop new transportation fuels from forest biomass, or improve the production of forest biomass feedstocks. Appropriations of $15 million per year are authorized for FY2009-12. [Sec. 9001] Community Wood Energy No current provision. No comparable provision. New section 9013. Establishes the R&D Program Community Wood Energy R & D Program, providing grants of up to $50,000 for up to 50% of the cost for communities to develop wood energy plans and purchase systems for public buildings. Authorizes $5 million in discretionary funds annually (FY2009-12). [Sec. 9001] Rural Nitrogen Fertilizer No current provision. No comparable provision. Requires a report with 1 year of Study appropriations on the production of fertilizer from renewable energy sources in rural areas. Must identify challenges to commercialization of rural fertilizer production, processes and technologies and potential impacts of renewable fertilizer on fossil fuel use and the environment. Appropriations of $1 million are authorized for FY2009. [Sec. 9003]] CRS-20 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) P.L. 110-246, Title XI 2008 Farm Bill -- Energy Provisions (excluding those cited in above sections) Study on Bioenergy No comparable provision. No comparable provision. Directs USDA to produce a report on the Operations potential economic issues (including costs) associated with animal manure used in normal agricultural operations and as a bioenergy feedstock. [Sec. 11014] P.L. 110-246, Title XV 2008 Farm Bill -- Energy Provisions (excluding those cited in above sections) Tax Credit for Production of All fuel ethanol is allowed a tax credit of No comparable provision. Establishes a credit of $1.01 for blenders of Cellulosic Alcohol $0.54 per gallon, regardless of cellulosic biomass alcohol through feedstock. Small producers may claim an December 31, 2012. The value of the credit, additional credit of $0.10 per gallon. plus the existing small ethanol producer [26 U.S.C. 40], [26 U.S.C. 40(d)(4)] credit and alcohol fuels credits cannot exceed $1.01 per gallon. [Sec. 15321] Modification of Alcohol Tax The American Jobs Creation Act of 2004 No comparable provision. In the first calendar year after EPA certifies Credit established a tax credit for the use of that 7.5 billion gallons of renewable fuel ethanol used as motor fuel. The credit is have been blended into gasoline, the credit is valued at $0.51 per gallon of ethanol reduced from $0.51 to $0.45 per gallon. blended into gasoline. [Sec. 15331] [P.L. 108-357, Sec. 301], [26 U.S.C. 40(d)(4)] Calculation of Volume of Currently, any denaturant added to No comparable provision. For the purposes of calculating the per- Alcohol for Fuel Tax Credits alcohol (up to 5%) is considered as part gallon credit for the volume of alcohol used of the volume of alcohol for tax as a fuel or in a qualified mixture, the purposes. volume of alcohol includes any denaturant, [26 U.S.C. 40(d)(4)] including gasoline. This provision reduces the amount of allowable denaturant (added to make it unfit for human consumption) to 2% of the volume of the alcohol. [Sec. 15332] Ethanol Tariff Extension In general, fuel ethanol imports are No comparable provision. Extends the $0.54 cent per gallon duty CRS-21 Topic Current or Prior Law Energy Independence and Security Act 2008 Farm Bill (P.L. 110-140) (P.L. 110-246) subject to a $0.54 per gallon duty and a through December 31, 2010. [Sec. 15333] 2.5% ad valorem tariff. The duty expires January 1, 2009. [P.L. 99-499] [19 U.S.C. 3001 et seq.] Elimination and Reductions Currently, if a manufacturer imports an No comparable provision. Duty drawback will not be available on of Duty Drawback on intermediate product then exports the exports which do not contain ethanol. Ends Certain Imported Ethanol finished product or a similar product, the practice in which imported ethanol is that manufacturer may be eligible for a blended with gasoline and jet fuel refund (drawback) of up to 99% of the (containing no ethanol, but considered a duties paid. The duty drawback "like commodity" to the finished gasoline) is provisions include special provisions for then exported to qualify for the drawback in the production of petroleum derivatives. lieu of finished gasoline containing the [19 U.S.C. 1313(p)] originally imported ethanol. [Sec. 15334] ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34239