FY 08 Omnibus Appropriations Act
On December 26, 2007, President Bush signed into law the fiscal year 2008 Omnibus Appropriations Act:

• The Department of Energy's Office of Energy Efficiency and Renewable Energy received appropriations of $200 million for biomass and biorefinery systems R&D, $20 million more than the President's budget request. The additional funds are to support additional biomass research solicitations. The Department was directed to include algae as a potential feedstock in its biomass R&D program.
• The Department of Agriculture's Renewable Energy and Energy Efficiency Program received appropriations of $36 million. In this program, agricultural producers, rural small businesses, cooperatives, and rural electric utilities can compete for grants to support energy efficiency and renewable energy projects. Funds can be used for a range of activities, including the purchase and installation of equipment. A request for proposals is expected in the spring of 2008.

New Comprehensive Energy Legislation
After tough deliberations, Congress passed the Energy Independence and Security Act of 2007 (Public Law 110-140) and President Bush signed it into law on December 19, 2007. This comprehensive energy legislation has a major focus on biomass, especially the production of biofuels. Some of the provisions include:

• Infrastructure Pilot Program for Renewable Fuels: A grant program for governments and transportation authorities to establish renewable fuels refueling infrastructure, including installation of infrastructure and equipment, and operation and maintenance. Maximum grant award is authorized at $20 million over two years. $200 million in appropriations was authorized.
• Bioenergy Research and Development: Raises authorization levels for bioenergy R&D at the Department of Energy from $251 million to $377 million for FY 08, and from $274 million to $398 million for FY 09. By law, $125 million in FY 08 and $150 million in FY 09 must go for integrated biorefinery demonstration projects.
• Loan Guarantees for Renewable Fuel Facilities: The Secretary of Energy is authorized to make loan guarantees for projects that produce advanced biofuels. For a single facility, up to $250 million in total loan principal can be guaranteed, including 100% of principal and interest, but not more than 80% of the total cost of the facility.
• Grants for Renewable Fuel Production R&D in Certain States: The Secretary of Energy is authorized to award grants to higher education institutions for R&D and implementation of renewable fuel production technologies in States with low rates of ethanol production, including cellulosic biomass ethanol. A total of $74 million is authorized over FY 08-10.
• Research and Development in Support of Low Carbon Fuels: Establishes a Presidential grant program to provide financial support for: 4 to 6 demonstration facilities using woody biomass to deploy advanced technologies for the production of thermal and electric energy, biofuels, and bioproducts; and for research on environmental impacts of low-carbon fuel and supply infrastructure for renewable biomass feedstocks. A total of $275 million is authorized over FY 09-13.
• Grants for Production of Advanced Biofuels: Authorizes the Secretary of Energy to establish grants for funding advanced biofuels that achieve at least a 50% reduction in life-cycle greenhouse gas emissions compared to motor vehicle fuel. A total of $500 million is authorized over FY 08-15.
• Renewable Energy Construction Grants: Authorizes the Secretary of Energy to make grants supporting projects for commercial generation of electricity from renewable energy including solar, wind, geothermal, biomass, landfill gas, ocean energy (current, wave, and tidal), and small hydroelectric power in Alaska. Governments, utilities, and Indian tribes eligible. Requires a 50% match. No dollar figure authorized.
• Smart Grid Technology Research, Development, and Demonstration: Authorizes the Secretary of Energy to carry out a program for smart grid technology development, and regional demonstration projects focused on advanced technologies for use in power grid sensing, communications, analysis, and power flow control. Demonstrations require 50% cost match by electric utilities. Authorized at $500 million over FY 08-12.

Farm Bill
Both the House and the Senate have passed their versions of the Farm Bill. Both bills include an energy title. Some of the provisions under deliberation include:

• Biorefinery and Repowering Assistance: The Secretary of Agriculture would be authorized to provide grants to help pay for: developing and constructing pilot and demonstration-scale biorefineries to demonstrate the commercial viability of processes for converting biomass to advanced biofuels; and costs associated with repowering (retrofitting) a biomass conversion facility, power plant, or manufacturing facility for using renewable energy for heat or power. The program would also offer loan guarantees of up to $250 million and up to 80% of project costs for developing and constructing commercial-scale biorefineries, and loan guarantees up to $70 million for repowering projects. Eligible entities include: individuals, corporations, farm cooperatives, rural electric cooperatives and public power entities, agricultural producer associations, and state or local energy agencies. Grants for pilot and demonstration-scale biorefineries have a 50% cost match, and repowering projects have an 80% cost match. The bill would authorize $300 million for this program starting in FY 08.
• Bioenergy Program for Advanced Biofuels: Cash incentive to smaller advanced biofuel producers (less than 150 million gallons annually) who increase their production. A total of $245 million would be authorized over FY 08-12. The proposed bill would extend program eligibility to combined heat and power production using biomass at biofuels plants, and biomass gasification.
• Rural Energy for America Program: Would authorize the Secretary of Agriculture to provide grants and financial assistance for energy audits, energy efficiency improvements, and for establishing renewable energy systems. Loan guarantees and production-based incentives would also be available. Eligible entities would be agricultural producers, rural small business, cooperatives, and similar entities. The program would guarantee a loan up to $25 million, but not to exceed 75% of project costs. This program would replace the current USDA Renewable Energy and Energy Efficiency Program.
• Biomass Research and Development Initiative: Would authorize grants, contracts, and financial assistance for R&D on biofuels and biobased products, including projects on feedstocks, feedstock systems, technologies for using cellulosic biomass for the production of biofuels and biobased products, and product diversification. Universities, national and Federal labs, state research agencies, non-profits and private sector entities would be eligible. A 20% match would be required for demonstration projects, and a 50% match for commercial application projects. $500 million in total authorized funding over FY 08-12 is proposed.
• Renewable Woody Biomass for Energy: The Secretary of Agriculture would carry out a research, technology development, and technology application program to encourage the use of woody biomass for energy. Governments, universities, and private entities would be eligible. $25 million in total authorized funding over FY 08-12 is proposed.
• Research and Development of Renewable Energy: A Department of Agriculture program carried out in conjunction with the Colorado Renewable Energy Co-laboratory to conduct multi-disciplinary R&D on biorefining and biofuels in areas such as: relevant engineering disciplines; harvesting and provision of cellulosic biomass feedstocks; biobased fertilizers; efficient irrigation systems; water-efficient biofuels production; biobased products; storage and conversion technologies (wind and solar) for small and utility-scale power generation facilities; and fuel cell technologies for farm, ranch, and rural applications. Would authorize $25 million total for these purposes from FY 08-12, but also $550 million through the Agricultural Research Service for cellulosic biofuels research, and $550 million to be awarded by the Secretaries of Agriculture and Energy for developing smaller-scale biorefineries and biofuel plants.

Recent Awards
On January 29, 2008, the Department of Energy announced grant awards totaling $114 million for four small-scale biorefinery projects. Grants will go for one-tenth commercial scale biorefineries that will use a variety of feedstocks and test novel conversion technologies, to provide data needed for full-size commercial biorefineries. These projects will produce liquid transportation fuels, such as cellulosic ethanol, as well as biobased chemicals and other biobased products for industrial applications. Individual awards range from $24 million to $30 million over four years. The Department of Energy also announced its intent to fund a second round of small-scale projects later this spring. These small-scale projects complement last year's awards, in which six commercial-scale biorefinery projects were selected to receive a total of $385 million over four years.