USDA Budget Request Includes Increased Funding for Renewable Energy



USDA Budget Request Includes Increased Funding for Renewable Energy

On May 7, 2009, President Obama released his FY 2010 Federal Budget Request. The FY 2010 budget includes $513 million dollars for USDA Farm Bill Energy Programs ($391 million in mandatory funds and $122 in additional discretionary funds). This represents an increase of $242 million over FY 2009 appropriation levels, an increase of 89.3%.

  • The Biorefinery Assistance Program (Sec. 9003), which provides grants and loan guarantees for facilities producing advanced biofuels, received $262 million in the President’s budget, including $245 million in mandatory funds and $17 million in additional discretionary funds. Representing more than half of the entire budget for farm bill energy programs in FY 2010, this budget request reflects ongoing commitment in Congress and the Administration to accelerating deployment of advanced biofuels technologies.
  • The Rural Energy for America Program (Sec. 9007), a popular and successful program providing funds for renewable energy deployment in rural areas, received $128 million – an increase of 113% over FY 2009 funding levels. In addition to $60 million in mandatory funds, the President requested an additional $68 million in discretionary funds for this program in FY 2010.
  • The Value-Added Agricultural Market Development Program (Sec. 6401) was not authorized for mandatory funds in FY 2010, but the President’s budget maintains funding levels for this program, requesting $22 million in discretionary funds.
  • The Repowering Assistance Program (Sec. 9004) received $35 million in mandatory funds in FY 2009, but was zeroed out in the FY 2010 budget.
  • The Rural Energy Self-Sufficiency Initiative (Sec. 9009), Forest Biomass for Energy Program (Sec. 9012), and Community Wood Energy Program (Sec. 9013) were not included in the President’s FY 2010 budget. The 2008 Farm Bill authorized $5 million, $15 million, and $5 million in discretionary funds, respectively, for these three programs in FY 2010
  • The Feedstock Flexibility Program for Bioenergy Producers (Sec. 9010) is mentioned in the budget text, but it is not included as a numerical budget item. This reflects the intended revenue-neutrality of the program.