Recognizing the widespread interest in biodiesel, the 2008 Farm Bill contains a number of programs that support a nationwide supply of biodiesel from a wide variety of sources. These programs include continued support for Advanced Biofuels production incentives, the Rural Energy for America Program (formerly Section 9006), Biorefinery Assistance, Federal Biobased Market Procurement, and Biomass Research and Development.
The Rural Energy for America Program (REAP), has been a key part of the USDA’s efforts to advance biodiesel production. Since the program’s inception in the 2002 Farm Bill, 24 projects have received funding for biodiesel production. These awards amount to over$16 million in grants and guaranteed loans, and represent projects that will produce a total of over 86 million gallons of biodiesel per year. All these projects have local owners.