The Energy Title of the 2002 Farm Bill

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The Energy Title of the 2002 Farm Bill

• Carol Werner, Executive Director
• Jeremy Ames, Policy Associate
• Environmental Energy Study Institute
• 122 C St. NW, Suite 700
• Washington, DC 20001
• Phone [phone] Fax [phone]
• www.eesi.org

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2002 Farm Bill (H.R. 2646/P.L. 107-171)

• Energy Title (Title IX)
• 405 million in mandatory funding over five
  years
• Procurement of Biobased Products
• Grants and Loans
• Research and Development
• CCC Bioenergy Program

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• Procurement
• Sec. 9002 Federal Procurement of Biobased
  Products (6 mil.)
• Federal Agencies must purchase biobased products
  if comparable in price, performance, and
  availability to conventional products
• Biobased products must undergo testing before
  receiving certification for listing
• Proposed rules to be published before the end of
  2002 (60 days for public comment)

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• Grants and Loans
• Sec. 9004 Biodiesel Fuel Education Program
• (5 mil.)
• Grant program to educate public and private
  consumers about the benefits of biodiesel
• USDA plans to publish RFP in early 2003

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• Sec. 9006 Renewable Energy System Energy System
  Improvements Program (115 mil.)
• Provides grants, loans, and loan guarantees to
  assist farmers in purchasing renewable energy
  systems and making energy efficiency improvements
  (up to 50 cost share)
• A Notice of Funds Available to be published this
  spring to distribute FY03 funds, Rural
  Business-Cooperative service working on rules to
  cover future years

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• Research and Development
• Sec. 9008 Biomass Research and Development Act
  (75 mil.)
• Reauthorizes and funds the Biomass Research and
  Development Act through 2007
• USDA plans to publish RFP in early 2003

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• CCC Bioenergy Program
• Sec. 9010 Commodity Credit Corporation Bioenergy
  Program (204 mil.)
• Compensates producers of ethanol and biodiesel
  for commodity purchases to expand production
• Most traditional commodities as well as
  cellulosic feedstocks are eligible

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• Authorized Programs
• (subject to appropriations, no funding for FY03)
• Sec. 9003 Biorefinery Development Grants
• To demonstrate commercial viability of processes
  for converting biomass to multiple products (up
  to 30 project cost)
• Sec. 9005 Energy Audit and Renewable Energy
  Resource Assessment Program
• Farmers must pay at least 25 of audit/assessment
  costs
• Farmers undergoing audits/assessments would be
  given priority funding under Sec. 9006
• Sec. 9009 Carbon Sequestration Research

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Administration's FY04 Budget Request for USDA

• FY 2003 FY 2004
• Sec. 9006
• Mandatory 18 mil. 0
• Discretionary 0 3 mil.
• This represents a 5 million cut for FY03, and a
  20 million cut for FY04!
• No cuts have been proposed to the other mandatory
  programs, and no funding has been requested
  Sections 9003, 9005, or 9009.

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USDA Key Energy Title Contacts SEC. 9002 Federal
Procurement of Biobased Products Contact
Roger Conway, 202-401-0461 SEC. 9006 Renew.
Effic. / Rural Development Title
Programs Contact William Hagy,
202-720-7287 http//www.rurdev.usda.gov/rbs/coops
/vadg.htm SEC. 9008 Biomass Research and
Development Act Contact Merlin Bartz,
202-720-6519 http//www.bioproducts-bioenergy.go
v SEC. 9010 CCC Bioenergy Program Contact
Steve Gill, 202-720-2121 http//www.fsa.usda.gov/
daco/bio_daco.htm
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• Rural Development Title
• Value-added Agricultural Product Market
  Development Program (Section 6401) Amended to
  allow renewable energy systems to qualify for
  grants
• 40 mil./yr. mandatory
• In 2002 37 Biomass Projects 7.587mil.
  2 Wind Projects 298,000

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• Administration's FY04 Budget Request for USDA
• FY 2003 FY 2004
• Sec. 6401
• Mandatory 10 mil. 0
• Discretionary 0 2 mil.
• This represents a 30 million cut for FY03, and a
  38 million cut for FY04!