	Background

Renewable energy policy in the Food, Conservation, and Energy Act of 2008 ( P.L. 110-246 , 2008 farm bill) builds on earlier programs, many of which were established in the Farm Security and Rural Investment Act of 2002 ( P.L. 107-171 , 2002 farm bill). The energy title authorized grants, loans, and loan guarantees to foster research on agriculture-based renewable energy, to share development risk, and to promote the adoption of renewable energy systems. The 2008 farm bill became law six months after the enactment of the Energy Independence and Security Act of 2007 (EISA, P.L. 110-140 ). The emphasis on cellulosic ethanol also reflects increasing concerns about the economic and environmental issues associated with corn starch-based ethanol. The "food versus fuel" debate intensified during the 2008 farm bill debate as food price inflation accelerated both in the U.S. and globally—highlighting some of the potential problems associated with replacing even a small share of the nation's gasoline consumption with corn-based ethanol. Research provisions relating to renewable energy are found in Title VII and tax and trade provisions are found in Title XV. 15321), and promotion of cellulosic feedstocks production (Sec. 9002); support for rural energy efficiency and self-sufficiency (Sec. 9006); reduction of the blender tax credit for corn-based ethanol (Sec. 15331); and continuation of the import duty on ethanol (Sec. Energy Policy Issues in the 2008 Farm Bill

		Emphasis on Cellulosic Biofuels

The 2008 farm bill energy title provides $1 billion in financial incentives and support to encourage the production of advanced (mainly cellulosic) biofuels. For instance, the Biomass Crop Assistance Program (BCAP, Section 9001) supports the production of dedicated crop and forest cellulosic feedstocks and provides incentives for post-production collection, harvest, storage, and transport (CHST). These programs are supported by increased funding for advanced biofuels research under the Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension Initiative (Section 7207), and the Sun Grant Program (Section 7526) which support and coordinate advanced biofuels research, extension, and development between government agencies, universities, and research institutions. Modification and Extension of Tax Credits and Tariffs

Title XV of the 2008 farm bill contains provisions which extend and modify tax credits and tariffs on ethanol. 4853 ) extended both the ethanol blender tax credit and the import tariff for ethanol. Reports and Studies on the Economic Impacts of Ethanol Production

The impact of increased ethanol production on agricultural and rural economies was a subject of debate during the farm bill process. Funding for Energy Programs

The 2008 farm bill authorizes over $1 billion in mandatory funding for FY2008 through FY2012 ( Table 1 ), compared with $800 million in the 2002 farm bill (FY2002-FY2007). Mandatory authorization in the 2008 farm bill includes $320 million to the Biorefinery Assistance Program, $300 million to the Bioenergy Program for Advanced Biofuels, $255 million to the Rural Energy for America Program (REAP), $118 million to the Biomass Research and Development Act (BRDA), and potentially unlimited funding (such sums as necessary) for the Biomass Crop Assistance Program (BCAP).
The Food, Conservation, and Energy Act of 2008 (P.L. 110-246, the 2008 farm bill) extends and expands many of the renewable energy programs originally authorized in the Farm Security and Rural Investment Act of 2002 (P.L. 107-171, 2002 farm bill). The bill also continues the emphasis on the research and development of advanced and cellulosic bioenergy authorized in the 2007 Energy Independence and Security Act (P.L. 110-140).
Farm bill debate over U.S. biomass-based renewable energy production policy focused mainly on the continuation of subsidies for ethanol blenders, continuation of the import tariff for ethanol, and the impact of corn-based ethanol on agriculture. The enacted bill requires reports on the economic impacts of ethanol production, reflecting concerns that the increasing share of corn production being used for ethanol had contributed to high commodity prices and food price inflation.
Title VII, the research title of the 2008 farm bill, contains numerous renewable energy related provisions that promote research, development, and demonstration of biomass-based renewable energy and biofuels. The Sun Grant Initiative coordinates and funds research at land grant institutions on biobased energy technologies. The Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension Initiative provides support for on-farm biomass energy crop production research and demonstration.
Title IX, the energy title of the farm bill, authorizes mandatory funds (not subject to appropriations) of $1.1 billion, and discretionary funds (subject to appropriations) totaling $1.0 billion, for the FY2008-FY2012 period. Energy grants and loans provided through initiatives such as the Bioenergy Program for Advanced Biofuels promote the development of cellulosic biorefinery capacity. The Repowering Assistance Program supports increasing efficiencies in existing refineries. Programs such as the Rural Energy for America Program (REAP) assist rural communities and businesses in becoming more energy-efficient and self-sufficient, with an emphasis on small operations. The Biomass Crop Assistance Program, the Biorefinery Assistance Program, and the Forest Biomass for Energy Program provide support to develop alternative feedstock resources and the infrastructure to support the production, harvest, storage, and processing of cellulosic biomass feedstocks. Cellulosic feedstocks—for example, switchgrass and woody biomass—are given high priority both in research and funding.
Title XV of the 2008 farm bill contains tax and trade provisions. It continued current biofuels tax incentives, reducing those for corn-based ethanol but expanding tax credits for cellulosic ethanol. The tariff on ethanol imports was also extended.
For information concerning the status of implementation of the farm bill's energy provisions and a brief discussion of related emerging issues, see CRS Report R41985, Renewable Energy Programs and the Farm Bill: Status and Issues.