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Energy Provisions in the Farm Bill
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Wind Energy Publications
 
Value Added Program: Example of a Value-Added proposal
 
For more information, visit the following Web sites:
rurdev.usda.gov
 
http://fpc.unl.edu/

Title VI - Mandatory Programs
 
Bioenergy and biomass energy Section 9002 Federal Procurement of Biobased ProductsEstablishes a program to give preference to the purchase of biobased products by Federal agencies "whenever practical and available". Funding will be used to test and label biobased products. $6 million. 
 
Bioenergy and biomass energy Section 9004 Biodiesel Fuel Education Program. 
 
New grant program for public education about the benefits of biodiesel fuel use by government and private entities operating vehicle fleets and others. Eligible recipients are nonprofit organizations or colleges and universities that have demonstrated expertise in biodiesel fuel production, use, and distribution.: $5 million.
 
Bioenergy and biomass energy Section 9008 Biomass Research and Development.
 
Act of 2000 reauthorizes and funds the Biomass Research and Development Act through 2007 (plus an additional $49 million/yr. is authorized and subject to appropriations for FY02 - 07) $75 million.

Bioenergy and biomass energy Section 9010 Commodity Credit Corporation.
 
Bioenergy Program Continues payment support program to producers of ethanol and biodiesel derived from corn, wheat, and other agricultural commodities and cellulosic commodities, and fats, oils, greases and certain animal by-products for the purchase of commodities to expand existing production $204 million

Renewables and energy efficiency Section 9006 Renewable Energy System & Energy Efficiency Improvements.  Establishes a loan, loan guarantee & grant program to assist farmers, ranchers and rural small businesses to purchase and install renewable energy systems and making energy efficiency improvements. A grant may not exceed 25% of the cost of a project. And a combined grant and loan or guarantee may not exceed 50% of the cost of the project. "The Conference Committee Managers intend for the Secretary to consider funding Energy Audits as an energy efficiency improvement measure under this section". $115 million
Total = $405 million
(Over 5 years)
 

Title VI
Authorized Programs Subject to Appropriations
Bioenergy and biomass energy Section 9003 Biorefinery Development GrantsCreates a grant program to help establish facilities for the conversion of biomass into electricity, fuels, chemicals and other marketable products. 

Renewables and energy efficiency Section 9005 Energy Audit and Renewable Energy Development ProgramEstablishes a cost-share grant program to assist farmers, ranchers and rural small businesses identify and assess their renewable energy resources, and energy improvement potential linked in part to incentives available under Section 9006 and other financial assistance programs Participant must pay at least 25% of assessment and energy efficiency audit costs.

Hydrogen and fuel cell technologies Section 9007 Hydrogen and fuel cell technologiesThe USDA and DOE are directed to enter into a memorandum of understanding to cooperate in the development and promotion of hydrogen and fuel cell technology programs for rural communities and agricultural producers and to disseminate information on potential applications (funding not clear)
Carbon sequestration Section 9009 Carbon sequestration Cooperative Research and Extension ProjectsAuthorizes R&D programs for quantifying and measuring carbon and other greenhouse gases in soil, plants and other agricultural settings.

 

Other Energy Provisions
Other Energy Provisions in the Farm Bill:
 
Section 2101, Conservation Title II
Conservation Reserve Program - Amended to allow wind turbines and biomass harvesting on CRP lands where consistent with soil, water, and wildlife habitat goals of the CRP program. No reduction in CRP payments with windmills. CRP payments reduced by economic value of the biomass activity.
 

Section 6013, Rural Development Title VI
· Value-added Grant Program - An existing program amended to expand the definition of the term "value-added agricultural product" to include farm- and ranch-based renewable energy to qualify for grants.

· Consolidated Farm and Rural Development Act - Amended to extend loans and loan guarantees to wind systems and anaerobic digesters used to produce energy. Solar systems were already eligible. Each project is eligible for up to $25 million in loans.