# Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill: A Side-by-Side Comparison

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URL: https://www.frixlaw.com/law-library/documents/crs%3ARL34239

## Record

- **Collection:** Congressional research report
- **Document type:** CRS Report
- **Published:** January 26, 2009
- **Citation:** RL34239

## Text

Biofuels Provisions in the 2007 Energy Bill
and the 2008 Farm Bill: A Side-by-Side
Comparison
-name redactedSpecialist in Agricultural Policy
-name redactedSpecialist in Energy and Environmental Policy
January 26, 2009

Congressional Research Service
7-....
www.crs.gov
RL34239

CRS Report for Congress
Prepared for Members and Committees of Congress

Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill

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
2008 Farm Bill, by 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 (name redacted).

Congressional Research Service

Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill

Contents
Introduction ................................................................................................................................1
Key Elements of EISA and the 2008 Farm Bill............................................................................2

Tables
Table 1. Comparison of Current or Prior Law with Biofuels Provisions in EISA and the
Enacted Farm Bill ....................................................................................................................4

Contacts
Author Contact Information ...................................................................................................... 21

Congressional Research Service

Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill

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 tax credits, reduces slightly the
blender’s tax credit for corn-derived ethanol beginning in 2009, 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 became the subject of intense debate.
Because of the rapid expansion of U.S. corn ethanol capacity—as of December 2008, existing
capacity was an estimated at 10.4 billion gallons per year, while an additional 1.8 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.

1

For more information on federal biofuels incentives, see CRS Report RL33572, Biofuels Incentives: A Summary of
Federal Programs, by (name redacted).
2
For more information on ethanol, see CRS Report RL33290, Fuel Ethanol: Background and Public Policy Issues, by
(name redacted).
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 (name redacted)
and (name redacted).

Congressional Research Service

1

Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill

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 beginning in 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.
Currently, cellulosic ethanol is not produced on a commercial scale. As of July 2008, there was
one commercial-scale refinery under construction, with two demonstration-scale plants and three
pilot-scale plants completed. Industry sources expect commercial production of cellulosic ethanol
to begin in 2010 or 2011. In January 2009, USDA announced funding for a cellulosic biofuels
plant under the Biorefinery Program with projected output of 20 million gallons annually,
beginning in 2010. The RFS mandates cellulosic ethanol production of 100 million gallons in
2010. For more information on cellulosic ethanol, see CRS Report RL34738, Cellulosic Biofuels:
Analysis of Policy Issues for Congress, by Tom Capehart.

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 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];

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
(name redacted).
7
The conference agreement on the 2008 farm bill was originally approved by the House and the Senate as H.R.
2419and 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) 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.

Congressional Research Service

2

Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill

•

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].

Congressional Research Service

3

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 (P.L. 110-140)

2008 Farm Bill
(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 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]

No comparable provision.

Fuel Tank Labeling
Requirement

No prior provision.

Requires the Dept. of Transportation to
issue a 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]

No comparable provision.

Extension of Flexible Fuel
Vehicle Credit Program /
Biodiesel as Alternative fuel
for CAFE Purposes

Under the Corporate Average Fuel
Economy (CAFE) program, automakers
may generate credits toward their
compliance for the production and sale of
alternative fuel vehicles, as defined in law.
Currently, B20 (a blend of 20% biodiesel
and 80% petroleum diesel) vehicles are
not considered alternative fuel vehicles.
[49 U.S.C. 32901 et seq.]

Amends the CAFE program to extend
alternative fuel vehicle credits through
model year 2019, at a declining rate. Also
allows vehicles capable of operating on
B20 to be treated as vehicles eligible for
CAFE credits. Expanding the definition of
alternative fuel vehicle to include B20
could make all diesel passenger cars and
light trucks eligible for credits under
CAFE. Currently, some diesel passenger
vehicles are warrantied to run on B5, but
few technical barriers exist to make new
diesel vehicles B20-capable. [Sec. 109]

No comparable provision.

P.L. 110-140, Title II—Energy Security Through Increased Production of Biofuels
Renewable Fuel Standard

CRS-4

The Energy Policy Act of 2005
established a Renewable Fuel Standard
(RFS) which requires the use of an
increasing amount of renewable fuels in
gasoline. The mandate increases from 4.0
billion gallons in 2006 to 7.5 billion
gallons in 2012. Starting in 2013, the
proportion of renewable fuel to gasoline

Amends RFS to include all transportation
fuels (except for fuels used in ocean-going
vessels). Expands the existing requirement
to 9.0 billion gallons in 2008, increasing to
36 billion gallons in 2022. Requires
renewable fuels produced at new facilities
to have at least 20% lower lifecycle
greenhouse gas (GHG) emissions than

No comparable provision.

Topic

Study of Impact of Increased
Renewable Fuel Use

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

must equal or exceed the proportion in
2012. Starting in 2013, of the amount
mandated above, at least 250 million
gallons must be fuel derived from
cellulosic material. [P.L. 109-58, Sec.
1501], [42 U.S.C. 7545]

petroleum fuels. Starting in 2009, requires
that an increasing amount of the above
mandate be met using “advanced
biofuels,” defined as biofuels derived from
feedstocks other than corn starch with
50% lower lifecycle GHG emissions. By
2022, requires 21 billion gallons of
advanced biofuel. Of the advanced biofuel
mandate, specific carve-outs are made for
cellulosic fuels and biomass-derived diesel
substitutes. [Sec. 202]

By August 2009, EPA must publish a draft
analysis of the effects of the fuels
provisions in P.L. 109-58 on air pollutant
emissions and air quality. [P.L. 109-58,
Sec. 1505], [42 U.S.C. 7545(b)]

DOE, in consultation with USDA and
EPA, is required to enter into an
agreement with the National Academy of
Sciences (NAS) to study the impacts of
the RFS on industries related to feed
grains, livestock, food, forest products,
and energy. The NAS study must assess
the likely effects on domestic animal
agriculture and policy options to alleviate
negative effects; identify agricultural
conditions that would warrant a waiver of
the RFS requirements; and make
recommendations to limit adverse
economic impacts from the RFS.
[Sec. 203]

Comprehensive Study of
Biofuels—The Dept. of Treasury,
with DOE, USDA, and EPA shall
have the National Academy of
Sciences analyze scientific findings
on current and future biofuels
production, impacts, trends, and
policies. [Sec. 15322]

EPA is required to conduct a survey to
determine the market share of gasoline
containing ethanol and other renewable
fuels. [P.L. 109-58, Sec. 1501(c)],
[42 U.S.C. 7545]
DOE is required to collect and publish
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]
Environmental and Resource
Conservation Impacts

No prior provision.

EPA, in consultation with the USDA and
DOE, must study the impacts of the RFS
on environmental issues, resource
conservation issues, and invasive or
noxious species. [Sec. 204]

No comparable provision.

Biomass Based Diesel and
Biodiesel Labeling

No prior provision.

The Federal Trade Commission is
required to 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]

No comparable provision.

CRS-5

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

Under the original RFS, cellulosic biofuels
are eligible for additional credits under
the mandate. A gallon of cellulosic biofuel
is considered equal to 2.5 gallons of
ethanol. For this section, “cellulosic
biofuels” includes both 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]

EPA is required to study the feasibility of
issuing credits under the RFS for electric
vehicles powered by electricity from
renewable resources. Within 180 days of
enactment, EPA must report to Congress
on the findings of the study. [Sec. 206]

No comparable provision.

The DOE may provide grants for the
construction of facilities to produce
renewable fuels (including ethanol) from
cellulosic biomass, agricultural
byproducts, agricultural waste, and
municipal solid waste. Discretionary
appropriations of $100 million for
FY2006, $250 million for FY2007, and
$400 million for FY2008 are authorized.
[P.L. 109-58, Sec. 1512]

Requires DOE to establish a grant
program for the production of advanced
biofuels that have at least an 80%
reduction in lifecycle greenhouse gas
emissions relative to current fuels.
Authorizes discretionary appropriation of
a total of $500 million for FY2008FY2015. [Sec. 207]

Biorefinery Assistance. New Sec.
9003. Provides competitive grants
and loan guarantees for
construction and retrofitting of
biorefineries for the production
of advanced biofuels. Biorefinery
grants up to 30% of total cost.
Loan guarantees limited to $250
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-FY2012.
[Sec. 9001]

Topic

Current or Prior Law

Study of Credits for Use of
Renewable Electricity in
Electric Vehicles / Production
of Renewable Fuel Using
Renewable Energy

Grants for Production of
Advanced Biofuels

An existing grant program finances the
development and construction of
biorefineries and biofuel production
plants and implements projects to
demonstrate the commercial viability of
converting biomass to fuels or chemicals.
No funds have been appropriated for the
program.
[P.L. 107-171, Sec. 9003], [7 USC 8103]

CRS-6

Repowering Assistance. New
section 9004. Provides USDA
funds for repowering assistance
to reduce or eliminate their use
of fossil fuels for biorefineries in
existence at enactment.
Mandatory Commodity Credit
Corporation (CCC) funding of
$35 million for FY2009, available
until expended. Authorizes
discretionary funding of $15
million annually for FY2009FY2012. [Sec. 9001]

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

Section 211(c) of the Clean Air Act
allows EPA to control or prohibit the
production and/or sale of any engine,
vehicle, fuel, or fuel additive that causes
or contributes to air pollution “that may
be reasonably anticipated to endanger the
public health or welfare.”
[42 U.S.C. 7545(c)]

Expands EPA’s authority to control
engines, vehicles, fuels, and fuel additives
under Sec. 211(c) of the Clean Air Act to
include effects on water pollution.
[Sec. 208]

No comparable provision.

Anti-Backsliding

No provision.

Requires EPA to study the potential
adverse effects to air quality from the
expanded RFS, and to promulgate
regulations to mitigate those effects.
[Sec. 209]

No comparable provision.

Effective Date, Savings
Provision, and Transition
Rules

No provision.

For 2008 and 2009, any ethanol plant
powered by natural gas, biomass, or a
combination of the two is treated as
having a 20% reduction in lifecycle
greenhouse gas emissions (See Sec. 202).
For 2008, all current EPA regulations on
the RFS are unchanged, except for the
increase in the volume mandated by Sec.
202. [Sec. 210]

No comparable provision.

Biodiesel Report

No provision.

Requires the DOE to report to Congress
on the R&D challenges to expanding
biodiesel use (to an unspecified level)
[Sec. 221]

No comparable provision.

Biogas Report

No provision.

Requires the DOE to report to Congress
on the R&D challenges to expanding
biogas and biogas/natural gas blends (to an
unspecified level). [Sec. 222]

No comparable provision.

Grants for Biofuel Production
and R&D in Certain States

DOE is authorized to receive $25 million
annually for FY2006-FY2010 for R&D and
implementation of renewable fuel
production technologies in states with
low rates of ethanol production that are
under the federal reformulated gasoline
(RFG) program. [P.L. 109-58, Sec.
1511(d)], [42 U.S.C. 7411]

Discretionary appropriations of $25
million authorized annually for FY2008FY2010 for R&D and commercial
application of biofuel production in states
with low rates of ethanol and cellulosic
ethanol production (this could in effect
apply to all states). [Sec. 223]

No comparable provision.

Topic

Current or Prior Law

Integrated Consideration of
Water Quality in
Determinations on Fuels and
Fuel Additives

CRS-7

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

The DOE is directed to conduct research
on commercial applications of biomass
and bioenergy.
[P.L. 109-58, Sec. 932], [42 U.S.C. 16232]

Amends Sec. 932 of P.L. 109-58 to include
research on energy efficiency at
biorefineries and on technology to
convert existing corn-based ethanol plants
to process cellulosic materials. [Sec. 224]

No comparable provision.

Study of Optimization of
Flexible Fueled Vehicles to
use E-85 Fuel

No provision.

DOE is directed to study whether
optimizing flexible fuel vehicles (FFVs) to
run on E85 would increase their fuel
efficiency. Current FFVs are optimized to
run on gasoline, since that tends to be
their primary fuel. [Sec. 225]

No comparable provision.

Study of Engine Durability
and Performance Associated
with the Use of Biodiesel

No current provision.

DOE, in consultation with EPA, is
directed to study the effects of various
biodiesel/diesel blends on engine
performance and durability. [Sec. 226]

No comparable provision.

Study of Optimization of
Biogas Used in Natural Gas
Vehicles

No prior provision.

DOE is directed to study the potential for
optimizing natural gas vehicles to run on
biogas (methane produced from biological
feedstocks). [Sec. 227]

No comparable provision.

Algal Biomass

Various statutes promote biofuels R&D,
including the development of biofuels
from algae, at the Department of Energy.
[42 U.S.C. 16232]

DOE is required to report to Congress
on progress toward developing algae as a
feedstock for biofuel production.
[Sec. 228]

No comparable provision.

Biofuels and Biorefinery
Information Center

No prior provision.

Directs DOE to establish a technology
transfer center to provide information on
biofuels and biorefineries. [Sec. 229]

No comparable provision.

Cellulosic Ethanol and
Biofuels Research

No prior provision.

Authorizes the DOE to provide biofuels
R&D grants to 10 institutions from landgrant 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]

No comparable provision.

Bioenergy R&D
Authorization of
Appropriation

DOE is directed to conduct R&D on
biomass, bioenergy, and bioproducts.
Discretionary appropriations of $213

Amends Sec. 931 of P.L. 109-58 to
authorize a total of $1.2 billion in
discretionary appropriations for FY2008-

No comparable provision.

Topic

Current or Prior Law

Biorefinery Energy Efficiency

CRS-8

Topic

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

million are authorized for FY2007, $251
million for FY2008, and $274 million for
FY2009. [P.L. 109-58, Sec. 931(c)],
[42 U.S.C. 16232]

FY2010 for R&D on biomass, bioenergy,
and bioproducts. [Sec. 231]

Environmental Research and
Development

DOE is required to establish a program
of research, development, and
demonstration in microbial and plant
systems biology, protein science, and
computational biology. Biomedical
research and research related to humans
are not permitted as part of the program.
[P.L. 109-58, Sec. 977], [42 U.S.C. 16232]

DOE is required to expand the biological
R&D program established in Sec. 977 of
P.L. 109-58 to include environmental
effects, potential for greenhouse gas
reductions, and the potential for more
sustainable agriculture. See also Sec. 233
of EISA (below). [Sec. 232(a)]

No comparable provision.

Lifecycle Analysis Tools for
Evaluating the Energy
Consumption and
Greenhouse Gas Emissions
from Biofuels

No prior provision.

DOE is required to study and develop
tools for evaluating the lifecycle energy
consumption and the potential for
greenhouse gas emissions from biofuels.
[Sec. 232(b)]

Requires USDA to support
research on making a farm or
ranch energy-neutral.
[Sec. 7207]

Small-Scale Production and
Use of Biofuels

No prior provision.

Amends the Biofuels Research and
Development Act of 2000 to require the
Secretary of Agriculture to establish a
R&D program to facilitate small-scale
production and local and on-farm use of
biofuels. [Sec. 232(c)]

Requires USDA support of onfarm energy conservation and
renewable energy production.
[Sec 7207]

Bioenergy Research Centers

DOE is required to establish a program
of R&D and demonstration of microbial
and plant systems biology, protein
science, and computational biology.
Biomedical research and research related
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]

Requires the establishment of at least
seven research centers that focus on
bioenergy to be included in the R&D
program established in Sec. 977 of P.L.
109-58. [Sec. 233]

No comparable provision.

University Based Research
and Development Grant
Program

No prior provision.

Requires DOE to establish a program of
competitive grants to institutions of
higher education for research on
renewable energy technologies. Each
grant may not exceed $2 million. A total
of $25 million in discretionary

No comparable provision.

CRS-9

Topic

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

appropriations is authorized for the
program. [Sec. 234]
Prohibition on Franchise
Agreement Restrictions
Related to Renewable Fuel
Infrastructure

No prior provision.

Amends the Petroleum Marketing
Practices Act (15 U.S.C. 2801 et seq.) to
make it unlawful for a franchiser to
prohibit a franchisee from installing E85
or B20 tanks and pumps within the
franchise agreement. [Sec. 241]

No comparable provision.

Renewable Fuel Dispenser
Requirements—Report to
Congress

No prior provision.

DOE is required to report to Congress
on the market penetration of flexible fuel
vehicles and on the feasibility of requiring
fuel retailers to install E85 infrastructure.
[Sec. 242]

No comparable provision.

Ethanol Pipeline Feasibility
Study

No prior provision.

DOE, in consultation with DOT, is
required to 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]

No comparable provision..

Renewable Fuel
Infrastructure Development

No prior provision.

Directs DOE to provide grants for
conversion 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
FY2008-FY2014. [Sec. 244]

No comparable provision.

Study of the Adequacy of
Transportation of
Domestically Produced
Renewable Fuel by Railroads
and Other Modes of
Transportation

No prior provision.

DOE, jointly with DOT, are required to
report on the adequacy of railroads and
modes for transportation of domestically
produced renewable fuel. [Sec. 245]

No comparable provision.

CRS-10

Topic

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

Federal Fleet Refueling
Centers

No prior provision.

Requires the head of each federal agency
to 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]

No comparable provision.

Standard Specifications for
Biodiesel

No prior provision.

If ASTM International (originally the
American 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]

No comparable provision.

Biofuels Infrastructure

No prior provision.

Directs DOE to conduct an R&D
program on the effects of biofuels on
existing transportation fuel distribution
systems.
[Sec. 248]

Requires joint USDA, DOE, EPA
study on the infrastructure needs
associated with significant
expansion in biofuels production
and use.
[Sec. 9002]

Waiver for Fuel or Fuel
Additives

Under Sec. 211(f) of the Clean Air Act,
no new fuels or fuel additives may be
introduced into commerce unless
granted a waiver by EPA. If EPA has not
acted within 180 days of receipt of a
waiver request, the waiver is treated as
granted. [42 U.S.C. 7545(f)]

Prohibits the introduction of new
renewable fuels or renewable fuel
additives unless EPA explicitly grants a
waiver under Sec. 211(f) of the Clean Air
Act. EPA is required to take final action
within 270 days of receipt of the waiver
request. Before the passage of EISA,
inaction or failure to complete review of
an additive by EPA allowed a fuel to
receive the waiver. Under EISA, no
waiver would be granted without explicit
approval by EPA. [Sec. 251]

No comparable provision.

CRS-11

Topic

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

P.L. 110-140, Title V—Energy Savings in Government and Public Institutions
Capitol Complex E-85
Refueling Station

No prior provision.

The Architect of the Capitol is authorized
to 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]

No comparable provision.

Procurement and Acquisition
of Alternative Fuels

No prior provision.

Federal agencies are prohibited from
procuring alternative or synthetic
transportation fuels if the lifecycle
emissions exceed those of petroleumbased fuels. [Sec. 526]

No comparable provision.

Expresses the Sense of the Congress that
renewable resources from agriculture and
forestry should provide at least 25% of all
U.S. energy needs by 2025. [Sec. 806]

No comparable provision.

P.L. 110-140, Title VIII—Improved Management of Energy Policy
Sense of Congress Relating to
the Use of Renewable
Resources to Generate
Energy

No prior provision.

P.L. 110-246, Title VII 2008 Farm Bill—Energy Provisions (excluding those cited in above sections)
Bioenergy Research

Provides for research and development
appropriations for bioenergy.
[7 U.S.C. 3154]

Biochar Research,
Development and
Demonstration

No current provision.

CRS-12

Section 1419 of the National
Agricultural Research, Extension,
and Teaching Policy Act of 1977
(7 U.S.C. 3154) is repealed.
Funding for related biomass
research through USDA is
contained in Title VII Sec. 7207 of
the farm bill. [Sec. 7110]
No comparable provision.

Research on biochar (biomass
charcoal) production and
sequestration is included as a
high-priority research and
extension area the Research Title.
[Sec. 7204]

Topic

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

Agricultural Bioenergy
Feedstock and Energy
Efficiency Research and
Extension Initiative

The Biomass Research and Development
Act of 2000 (reauthorized by the 2002
farm bill) provides competitive funding
for R&D and demonstration projects on
biofuels and bio-based chemicals and
products, administered jointly by USDA
and DOE. Specified mandatory CCC
funding of $5 million in FY2002 and $14
million annually for FY2003- FY2007 to
remain available until expended. Also
authorized appropriations of $200 million
for each of FY2006-FY2015. [P.L. 107171, Sec. 9008], [7 U.S.C. 5925]

No comparable provision.

Establishes the Agricultural
Bioenergy Feedstock and Energy
Efficiency Research and Extension
Initiative in Title VII (Research) to
improve biomass, production,
biomass conversion in
biorefineries, and biomass use.
Provides grants of up to 50% of
cost for energy efficient research
and extension projects.
Establishes a best practices
database of biomass crops.
Authorized appropriations of $50
million annually for FY2008-12.
[Sec. 7207]

Research, Extension, and
Educational Programs on
Biobased Energy
Technologies and Products

The “Sun Grant” program established 5
national sun grant research centers based
at land-grant universities and each
covering a different region. The purpose
is to enhance coordination and
collaboration between USDA, DOE, and
land-grant universities in the
development, distribution, and
implementation of biobased energy
technologies. Authorized appropriations
of $25 million in FY2005, $50 million in
FY2006, and $75 million annually for
FY2007-FY2010. [7 U.S.C. 8109]

No comparable provision.

Continues sun grant program.
Provides matching grants to land
grant institutions to develop,
distribute, and implement
biobased energy technologies and
to promote diversification and
sustainability of agricultural
production, and economic
diversification in rural areas
through biobased energy and
product technologies. Establishes
a Sun Grant Information Analysis
Center. Requires annual reports.
Discretionary funds of $75 million
for FY2008-12 are authorized.
[Sec. 7526]

P.L. 110-246, Title IX 2008 Farm Bill—Energy Provisions (excluding those cited in above sections)
Federal Procurement of
Biobased Products

CRS-13

Under the 2002 farm bill, federal agencies
are required to purchase biobased
products under certain conditions.
Current law authorizes a voluntary
biobased labeling program. USDA
regulations define biobased products,
identify biobased product categories, and

No comparable provision.

New section 9002. Renames as
the Biobased Markets Program.
Extends the program through
FY2012 and refines federal
procurement rules for biobased
products. Requires federal
agencies to maximize

Topic

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

specify the criteria (including testing) for
qualifying those products for preferred
procurement. Mandatory Commodity
Credit Corporation (CCC) funding of $1
million was authorized for each of
FY2002-FY2007 for testing biobased
products. [P.L. 107-171, Sec. 9002],
[7 U.S.C. 8102]

2008 Farm Bill
(P.L. 110-246)
procurement of biobased
products and submit reports to
Congress. Continues voluntary
labeling. Establishes testing
centers and education grants.
Authorizes mandatory funding of
$1 million for FY2008 and $2
million annually for FY2009-12.
Discretionary funding of $2
million in annual appropriations is
authorized for FY2009-12.
[Sec. 9001]

Adjustments to the
Bioenergy Program

Originally a Clinton Administration
initiative, the Bioenergy Program was
made statutory by the 2002 farm bill.
Provides CCC incentive payments to
biofuels producers based on year-to-year
increases in the quantity of biofuel
produced. Mandatory CCC funding of
$150 annually for FY2002-FY2006. No
funding was available for FY2007. [P.L.
107-171, Sec. 9010], [7 U.S.C. 8108]

No comparable provision.

New section 9005. Establishes the
Bioenergy Program for Advanced
Biofuels. Provides payments to
producers to support and expand
production of advanced biofuels.
Mandatory funding of $55 million
for FY2009, $55 million for
FY2010, $85 million for FY2011,
and $105 million for FY2012.
Authorizes additional
appropriation of $25 million
annually for FY2009-12.
[Sec. 9001]

Biodiesel Fuel Education
Program

Awards competitive grants to nonprofit
organizations that educate governmental
and private entities operating vehicle
fleets, and educate the public about the
benefits of biodiesel fuel use. Mandatory
CCC funding of $1 million annually was
authorized for FY2003-FY2007. [P.L. 107171, Sec. 9004], [7 U.S.C. 8104]

No comparable provision.

New section 9006. Extends the
Biodiesel Fuel Education Program
through FY2012. Provides
mandatory CCC funding of $1
million annually for FY2008-12.
[Sec. 9001]

Energy Audit and Renewable
Energy Development
Program

The 2002 farm bill authorized a
competitive grant program for eligible
entities to carry out a program to assist
farmers, ranchers, and rural small
businesses in becoming more energy
efficient and in using renewable energy
technology and resources. Authorized

No comparable provision.

New section 9007. Folds the
Energy Audit and Renewable
Energy Development Program
into the Rural Energy for America
Program. (See below.) [Sec. 9001]

CRS-14

Topic

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

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
and Energy Efficiency
Improvements

Authorizes loans, loan guarantees, and
grants to farmers, ranchers, and rural
small businesses to purchase and install
renewable energy systems and to make
energy efficiency improvements.
Mandatory CCC funding of $23 million
annually for FY2003-FY2007.
[P.L. 107-171, Sec. 9006], [7 U.S.C. 8106]

No comparable provision.

New section 9007. Renamed as
the “Rural Energy for America
Program,” Funds energy audits
for state agencies, cooperatives,
educational institutions and
utilities. Provides grants, loan
guarantees and incentive
payments for energy efficiency
and renewable energy, and
manure-to-energy projects.
Reserves 20% for small projects.
Mandatory funds of $55 million
for FY2009, $60 million for
FY2010, $70 million for FY2011,
and $70 million for FY2012.
Discretionary appropriations of
$25 million annually for FY200912 are authorized. [Sec. 9001]

Biomass Research and
Development

Section 9008. The program—created
originally under the Biomass Research
and Development Act (BRDA) of 2000—
provides competitive funding for
research, development, and
demonstration projects on biofuels and
bio-based chemicals and products,
administered jointly by USDA and DOE.
Specified mandatory CCC funding of $5
million in FY2002 and $14 million for
each of FY2003 through FY2007
(available until expended). Additional
appropriation authority of $200 million
for each of FY2006 through FY2015.
[7 U.S.C. 8101]

No comparable provision.

New section 9008. Defines
biobased product. Provides for
coordination of biomass research
and development between USDA
and DOE. Establishes the Biomas
Research and Development
Board and the Biomass Research
and Development technical
Advisory Committee to assist the
Board in coordinating biomass
research in the Federal
government. USDA and DOE are
to establish a Biomass Research
and Development Initiative to
competitively award grants,
contracts, and financial assistance
for research on biofuels and
biobased products production,

CRS-15

Topic

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)
and biobased 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 FY200912. [Sec. 9001]

Rural Energy Self-Sufficiency
Initiative Grant Program

No current provision.

No comparable provision.

New section 9009. Establishes the
Rural Energy Self-Sufficiency
Initiative, providing cost- share
(up to 50%) grants to assist rural
communities with communitywide energy systems that reduce
conventional energy use 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-FY2012. [Sec. 9001]

Feedstock Flexibility
Program for Bioenergy
Producers

No current provision.

No comparable provision.

New section 9010. Establishes the
Feedstock Flexibility Program,
authorizing 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]

CRS-16

Topic

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

Financial Assistance for the
Production of Biomass
Energy Crops and
Infrastructure for Harvesting,
Storage, and Transportation
of Biomass to Local
Biorefineries

No current provision.

No comparable provision.

New section 9011. Establishes the
Biomass Crop Assistance
Program (BCAP) to encourage
biomass production or biomass
conversion facility construction
with contracts which will enable
producers to receive financial
assistance for crop 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]

Forest Biomass for Energy
Program

No current provision.

No comparable provision.

New section 9012. Requires the
Forest 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-FY2012. [Sec. 9001]

CRS-17

Topic

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

Community Wood Energy
R&D Program

No current provision.

No comparable provision.

New section 9013. Establishes the
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-FY2012). [Sec. 9001]

Rural Nitrogen Fertilizer
Study

No current provision.

No comparable provision.

Requires a report with 1 year of
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]]

P.L. 110-246, Title XI 2008 Farm Bill—Energy Provisions (excluding those cited in above sections)
Study on Bioenergy
Operations

CRS-18

No comparable provision.

No comparable provision.

Directs USDA to produce a
report on the potential economic
issues (including costs) associated
with animal manure used in
normal agricultural operations
and as a bioenergy feedstock.
[Sec. 11014]

Topic

Current or Prior Law

Energy Independence and Security
Act (P.L. 110-140)

2008 Farm Bill
(P.L. 110-246)

P.L. 110-246, Title XV 2008 Farm Bill—Energy Provisions (excluding those cited in above sections)
Tax Credit for Production of
Cellulosic Biofuels

All fuel ethanol is allowed a tax credit of
$0.54 per gallon, regardless of feedstock.
Small producers may claim an additional
credit of $0.10 per gallon. [26 U.S.C. 40],
[26 U.S.C. 40(d)(4)]

No comparable provision.

Establishes a credit of $1.01 for
producers of cellulosic biofuels
alcohol through December 31,
2012. For cellulosic ethanol, value
of the credit, plus the existing
small ethanol producer credit and
alcohol fuels credits cannot
exceed $1.01 per gallon. [Sec.
15321]

Modification of Alcohol Tax
Credit

The American Jobs Creation Act of 2004
established a blender’s tax credit for the
use of ethanol used as motor fuel. The
credit is valued at $0.51 per gallon of
ethanol blended into gasoline. [P.L. 108357, Sec. 301], [26 U.S.C. 40(d)(4)]

No comparable provision.

In the first calendar year after
EPA certifies that 7.5 billion
gallons of renewable fuel have
been blended into gasoline, the
credit is reduced from $0.51 to
$0.45 per gallon. In 2008, the
volume blended exceeded 9
billion gallons and the reduction
became effective January 1, 2009.
[Sec. 15331]

Calculation of Volume of
Alcohol for Fuel Tax Credits

Currently, any denaturant added to
alcohol (up to 5%) is considered as part
of the volume of alcohol for tax
purposes. [26 U.S.C. 40(d)(4)]

No comparable provision.

For the purposes of calculating
the per-gallon credit for the
volume of alcohol used as a fuel
or in a qualified mixture, the
volume of alcohol includes any
denaturant, 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
subject to a $0.54 per gallon duty and a
2.5% ad valorem tariff. The duty expires
January 1, 2009. [P.L. 99-499]
[19 U.S.C. 3001 et seq.]

No comparable provision.

Extends the $0.54 cent per gallon
duty through December 31, 2010.
[Sec. 15333]

CRS-19

Topic

Current or Prior Law

Elimination and Reductions of
Duty Drawback on Certain
Imported Ethanol

Currently, if a manufacturer imports an
intermediate product then exports the
finished product or a similar product,
that manufacturer may be eligible for a
refund (drawback) of up to 99% of the
duties paid. The duty drawback
provisions include special provisions for
the production of petroleum derivatives.
[19 U.S.C. 1313(p)]

Source: CRS.

CRS-20

Energy Independence and Security
Act (P.L. 110-140)
No comparable provision.

2008 Farm Bill
(P.L. 110-246)
Duty drawback will not be
available on exports which do not
contain ethanol. Ends the practice
in which imported ethanol is
blended with gasoline and jet fuel
(containing no ethanol, but
considered a “like commodity” to
the finished gasoline) is then
exported to qualify for the
drawback in lieu of finished
gasoline containing the originally
imported ethanol. [Sec. 15334]

Biofuels Provisions in the 2007 Energy Bill and the 2008 Farm Bill

Author Contact Information
(name redacted)
Specialist in Agricultural Policy
[redacted]@crs.loc.gov, 7-....

Congressional Research Service

(name redacted)
Specialist in Energy and Environmental Policy
[redacted]@crs.loc.gov, 7-....

21

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/crs%3ARL34239. Public record. Not legal advice.