Agricultural Energy Programs Reauthorization Act of 2018

To amend the Farm Security and Rural Investment Act of 2002 to reauthorize energy programs through fiscal year 2023, and for other purposes. 1. Short title This Act may be cited as the Agricultural Energy Programs Reauthorization Act of 2018 2. Biobased markets program Section 9002 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8102 (1) in subsection (b)— (A) in paragraph (1), by inserting or renewable chemicals biobased products (B) in paragraph (2)(B)— (i) in clause (i), by inserting or renewable chemical biobased (ii) in clause (ii), by inserting or renewable chemical portions of biobased (C) by adding at the end the following: (5) Education and outreach The Secretary, in consultation with the Administrator, shall provide to appropriate stakeholders education and outreach relating to the voluntary labeling program under this subsection. ; (2) in subsection (f), by striking the subsection designation and all that follows through The Secretary (f) Manufacturers of renewable chemicals and biobased products (1) NAICS codes The Secretary and the Secretary of Commerce shall jointly develop North American Industry Classification System codes for— (A) renewable chemicals manufacturers; and (B) biobased products manufacturers. (2) National testing center registry The Secretary ; (3) in subsection (h)(2)— (A) in subparagraph (B)(ii), by striking and (B) in subparagraph (C), by striking the period at the end and inserting ; and (C) by adding at the end the following: (D) a description of the quantity of biobased products procured under subsection (a) during the previous year. ; (4) in subsection (i)— (A) in paragraph (1), by striking $3,000,000 for each of fiscal years 2014 through 2018 $6,000,000 for each of fiscal years 2019 through 2023 (B) in paragraph (2), by striking 2018 2023 (5) in subsection (j), by striking includes, with (1) products produced from biologically captured and reused carbon; and (2) with . 3. Biorefinery, renewable chemical, and biobased product manufacturing assistance Section 9003 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8103 (1) in subsection (b)(3)— (A) in subparagraph (A), by striking and or (B) in subparagraph (B)— (i) by inserting renewable chemical or biobased product technology (ii) by striking biorefinery that produces an advanced biofuel. biorefinery. (2) in subsection (g)— (A) by striking paragraph (1) and inserting the following: (1) Mandatory funding Of the funds of the Commodity Credit Corporation, the Secretary shall use for the cost of loan guarantees under this section, to remain available until expended, $75,000,000 for each of fiscal years 2019 through 2023. ; and (B) in paragraph (2), by striking 2018 2023 4. Bioenergy program for advanced biofuels Section 9005(g) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8105(g) (1) in paragraph (1), by striking expended— expended, $5,000,000 for each of fiscal years 2018 through 2023. (2) in paragraph (2), by striking 2018 2023 5. Rural Energy for America Program (a) Definition of renewable energy system Section 9001(16) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8101(16) (1) by redesignating subparagraph (B) as subparagraph (C); and (2) in subparagraph (A), by striking that— (B) Inclusions The term renewable energy system (i) distribution components necessary to move energy produced by a renewable energy system to the initial point of sale; and (ii) other components and ancillary infrastructure of a renewable energy system, such as a storage system. . (b) Funding Section 9007(g) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107(g) (1) in paragraph (1), by striking expended— expended, $150,000,000 for each of fiscal years 2018 through 2023. (2) in paragraph (3), by striking $20,000,000 for each of fiscal years 2014 through 2018 $50,000,000 for each of fiscal years 2018 through 2023 (3) by adding at the end the following: (4) Allocation of funding For each fiscal year, not more than 30 percent of amounts made available to carry out this section may be used for— (A) any 1 form of renewable energy described in subparagraphs (A) and (B) of section 9001(15); or (B) technologies to improve the efficiency of energy usage. . 6. Biomass research and development Section 9008(h) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8108(h) (1) in paragraph (1), by striking expended— expended, $20,000,000 for each of fiscal years 2019 through 2023. (2) in paragraph (2), by striking 2018 2023 7. Feedstock Flexibility Program for Bioenergy Producers Section 9010(b) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8110(b) (1) in paragraph (1)(A), by striking 2018 2023 (2) in paragraph (2)(A), by striking 2018 2023 8. Biofuels and Biobased Product Feedstock and Wildland Fire Protection Program Section 9011 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8111 (1) by striking the section heading and inserting Biofuels and Biobased Product Feedstock and Wildland Fire Protection Program. (2) in subsection (a)— (A) by striking paragraph (1); (B) by redesignating paragraphs (2) and (3) through (7) as paragraphs (7) and (1) through (5), respectively, and moving the paragraphs so as to appear in numerical order; (C) in paragraph (1) (as so redesignated), by striking BCAP program (D) in paragraph (4) (as so redesignated)— (i) in subparagraph (B)— (I) in clause (ii)(II), by striking and (II) in clause (iii), by striking the period at the end and inserting a semicolon; and (III) by adding at the end the following: (iv) algae; and (v) animal waste and byproducts, including fat, oil, grease, and manure. ; and (ii) in subparagraph (C)— (I) by striking clauses (ii) and (iv); and (II) by redesignating clauses (iii), (v), (vi), and (vii) as clauses (ii), (iii), (iv), and (v), respectively; (E) in paragraph (5) (as so redesignated), by striking BCAP (F) by inserting after paragraph (5) (as so redesignated) the following: (6) Program The term program ; and (G) in paragraph (7) (as so redesignated)— (i) by striking the paragraph heading and inserting Project area (ii) in the matter preceding subparagraph (A), by striking BCAP (3) in subsection (b)— (A) in the matter preceding paragraph (1), by striking Biomass Crop Assistance Program Biofuels and Biobased Product Feedstock and Wildland Fire Protection Program (B) in paragraph (1), by striking BCAP (C) in paragraph (2), by inserting , including eligible material harvested for the purpose of hazardous woody fuel reduction (4) in subsection (c)— (A) by striking the subsection heading and inserting Project areas (B) by striking BCAP (C) in paragraph (2)(B)— (i) in the subparagraph heading, by striking BCAP project Project (ii) in clause (i) (as amended by subparagraph (B)), by inserting program (D) in paragraph (4) (as amended by subparagraph (B)), by inserting program contract (E) in paragraph (5)(D) (as amended by subparagraph (B)), by inserting program payments on land (5) in subsection (d)— (A) in paragraph (1)(A), by striking BCAP program (B) in paragraph (2)(B), by striking paragraph (3) paragraph (5) (C) by redesignating paragraph (3) as paragraph (5); (D) by inserting after paragraph (2) the following: (3) Hazardous woody fuel reduction (A) In general In accordance with regulations issued by the Secretary to carry out this paragraph, the Secretary may use amounts made available under subsection (f)(1)(A) to provide to a project sponsor that submits to the Secretary an application in accordance with those regulations a payment under this subsection for the transportation costs of a project that removes eligible material for the purpose of hazardous woody fuel reduction, as determined by the Secretary. (B) Considerations In determining which projects to provide payments under subparagraph (A), the Secretary shall consider— (i) only projects that, as determined by the Secretary, in consultation with the Forest Service Fire Modeling Institute, are located in wildland areas that are the most— (I) at risk from wildfire; or (II) in need of restoration; and (ii) which projects will provide— (I) the greatest benefit to the protection of human life and structures in the wildland-urban interface; and (II) the greatest protection of municipal water supplies. (4) Limitation on collection of biomass for environmental benefit As a condition on the receipt of a payment under this subsection, a producer or person described in subparagraph (A) or (B) of paragraph (1), respectively, shall leave uncollected and unharvested not less than 30 percent, as determined appropriate by the Secretary, of the woody eligible material. ; and (E) in paragraph (5) (as redesignated by subparagraph (C))— (i) in the paragraph heading, by striking bcap program (ii) by striking BCAP program (6) in subsection (f)— (A) in paragraph (1), by striking Of the funds (A) Mandatory funding Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $70,000,000 for each of fiscal years 2019 through 2023. (B) Discretionary funding There is authorized to be appropriated to the Secretary to carry out this section $20,000,000 for each of fiscal years 2019 through 2023. ; and (B) in paragraph (2), by striking the Secretary shall use not less than 10 percent, nor more than 50 percent, of the amount (A) not less than $50,000,000 to make transportation payments for hazardous woody fuel reduction projects under subsection (d)(3); and (B) not less than 10 percent, and not greater than 50 percent, of the remaining amount . 9. Community Wood Energy Program Section 9013(e) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8113(e) 2018 2023 10. Effective date The amendments made by this Act take effect on March 1, 2019.

Summary: Agricultural Energy Programs Reauthorization Act of 2018 This bill amends the Farm Security Rural Investment Act of 2002 to reauthorize through FY2023 several Department of Agriculture (USDA) energy programs, including: the Biobased Markets Program; the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program; the Bioenergy Program for Advanced Biofuels; the Rural Energy For America Program (REAP); the Biomass Research and Development Initiative; the Feedstock Flexibility Program; and the Community Wood Energy Program. The bill modifies and reauthorizes the Biomass Crop Assistance Program to: rename it the Biofuels and Biobased Product Feedstock and Wildland Fire Protection Program; require USDA to provide assistance under the program for hazardous woody fuel reduction projects; and expand the definition of eligible materials to include algae and animal waste byproducts, including fat, oil, grease, and manure. The bill provides mandatory funding through FY2023 for several of the reauthorized programs. The bill modifies the Biobased Markets Program to: (1) include producers of renewable chemicals in the voluntary labeling program, and (2) require USDA and the Department of Commerce to jointly develop North American Industry Classification system codes for renewable chemical manufacturers and biobased products manufacturers. The bill modifies REAP to prohibit more than 30% of the funds from being used each year for: (1) any one form of renewable energy, or (2) technologies to improve the efficiency of energy usage.