Farm Energy

FY2010 Appropriations Status – DONE!

(October 23, 2009) - Good news on a key funding victory for the Farm Bill Energy Title! On October 16, 2009, the President signed the 2010 agriculture appropriations budget into law. The bill significantly increases the Rural Energy for America Program’s (REAP) total funding by adding an additional $39.34 million in discretionary funding to the program. That funding, in combination with the $60 million in mandatory funding for next year, increases total REAP funding to $99.34 million.

The President’s action is a victory for the Environmental Law and Policy Center and other groups supporting farm clean energy development throughout the country. REAP has grown from $0 to $23 million to nearly $100 million next year. It is now hitting stride with demonstrable economic, environmental and carbon-reduction benefits.

REAP and other energy programs in the Farm Bill help farmers and rural businesses invest in locally-owned energy projects and spurs rural economic development, while helping America tackle global warming challenges.

Administration – May 7

On May 7, President Obama rolled out his detailed programmatic budget for all federal agencies, and the Rural Energy for America Program (REAP) was a big winner. He proposed to more than double total planned funding for REAP next year to $128.1 million. His budget includes $68.1 million in “discretionary” funding for REAP, which is in addition to the Farm Bill’s $60 million in “mandatory” funding for REAP for FY2010.

Among other programs in the Energy Title, the President also proposed to add $17.339 million in discretionary funding for building biorefineries to produce advanced biofuels — the Biorefinery Assistance program. The Administration did not propose to cut mandatory funding for any other programs, nor did it propose to add discretionary funding to any Energy Title programs other than REAP and the Biorefinery Assistance Program.

House – July 9

The House Ag Appropriations Subcommittee held a hearing on USDA funding on March 31, and marked up the appropriations bill on June 18, 2009. It declined to endorse the President’s robust funding proposals for REAP and Biorefinery Assistance. Instead, the House added $20 million in discretionary funding for REAP and no additional funding for Biorefinery Assistance.  See page 48 of the Subcommittee’s report for information on the REAP budget.

The full House voted on the FY 2010 Agriculture budget on July 9, 2009, endorsing the Subcommittee’s discretionary funding for REAP and no additional funding for any other Energy Title program.

Senate – August 4

Bypassing the subcommittee process, the full Senate Appropriations Committee marked up the Ag spending bill on July 7.  Fully endorsing the President’s proposed budget, the Committee voted in favor of $68.13 million in discretionary funding for REAP, and $17.339 million in discretionary funding for the Biorefinery Assistance program. Again, this funding is in addition to the “mandatory” REAP and Biorefinery Assistance funding contained in the 2008 Farm Bill. See pages 81-82 of the Committee’s report for the information on these programs. The full Senate voted on the FY2010 Ag budget on August 4, endorsing the Committee’s proposals for these programs. 

Conference Committee  – September 30

A Conference Committee of the House and Senate agriculture appropriations committee members approved the FY10 ag spending bill on September 30. They boosted total REAP spending to nearly $100 million – $39.34 million in discretionary funding plus $60 million in mandatory already slated for the program next year per the Farm Bill.

The committee’s action essentially split the difference between the House’s proposed $20 million discretionary boost and the Senate’s proposed $68.13 million increase. See pages 22 and 79 of the Conference Committee’s report for details on the REAP appropriation.

Final Action – October 16

The House and Senate passed the conference committee’s bill in early October, and President Obama signed the final bill — H.R. 2997 –into law on October 16, 2009.  View a table [PDF] comparing 2009 and 2010 Energy Title appropriations.

FY2009 Appropriations – Done!

On March 11, 2009, President Obama signed the FY09 omnibus appropriations bill into law. It includes FY09 funding for several cabinet departments and agencies, including USDA.

This legislation added $5 million to the REAP program through a discretionary appropriation. The bill did not add any discretionary funding to any other Farm Bill Energy Title program, and it did not cut any of the mandatory funding established in the 2008 Farm Bill.

View a table [PDF] summarizing the outcomes of the recently-concluded FY2009 appropriations process for the Farm Bill Energy Title.