Title IX Energy Explained: REAP, Bioenergy, Biorefineries in Farm Bill 2.0

TL;DR: Title IX of H.R. 7567 (Farm Bill 2.0) reauthorizes USDA rural energy programs through the next five-year period, including the Rural Energy for America Program (REAP), the Bioenergy Program for Advanced Biofuels, and biorefinery loan guarantees. The 2026 bill raises grant caps, expands eligible technologies, and for the first time names sustainable aviation fuel as a qualifying biorefinery product.

Key takeaway

Title IX keeps USDA's REAP cost-share grants and biorefinery loan guarantees, raises grant caps, and adds sustainable aviation fuel as an eligible product for the first time.

What this section does

Title IX of H.R. 7567 covers USDA's rural energy programs. The three main pieces are the Rural Energy for America Program (REAP), the Bioenergy Program for Advanced Biofuels, and loan and grant assistance for biorefineries and biobased product manufacturers.

REAP provides competitive grants covering up to 50 percent of project costs, plus loan guarantees, for renewable energy systems and energy efficiency improvements. Eligible applicants are agricultural producers and rural small businesses. The 2026 bill continues this dual grant-plus-guarantee structure and expands the list of eligible technologies to include anaerobic digesters, renewable natural gas systems, and certain hydrogen production pathways. Exact statutory language is to be confirmed against the enrolled text.

The Bioenergy Program for Advanced Biofuels makes annual payments to eligible producers based on the quantity and energy content of qualifying advanced biofuels. H.R. 7567 reauthorizes mandatory funding for this program through fiscal year 2031, with annual levels to be confirmed. You can see how this fits the broader package in the full bill summary.

Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance (Section 9003 in the 2018 structure) continues to offer loan guarantees for building and retrofitting biorefineries. The 2026 bill modifies eligible project types to include sustainable aviation fuel (SAF) production pathways.

What it means

Title IX matters most to four groups: on-farm energy adopters, rural small businesses, biofuel and biorefinery operators, and energy crop farmers. The changes versus 2018 generally point toward higher funding and broader eligibility.

• Agricultural producers installing on-farm solar, wind, digesters, or efficiency upgrades are the primary REAP beneficiaries. Higher grant caps and expanded technology eligibility directly increase their access to cost-share funds.
• Rural small businesses outside agriculture, including manufacturers, food processors, and service businesses, also qualify for REAP. The program's continuation preserves their access.
• Advanced biofuel and biorefinery operators, including cellulosic ethanol, SAF, and renewable natural gas producers, are affected by funding levels and technology eligibility in Sections 9003 and 9005.
• Energy crop farmers growing switchgrass, miscanthus, or woody biomass are affected by feedstock assistance changes that alter demand signals and payment availability.

Two headline shifts stand out. First, the 2018 bill capped individual REAP grants at $500,000 for renewable energy systems and $250,000 for energy efficiency; the 2026 bill raises these caps, with new figures to be confirmed. Second, SAF was not a named eligible use in 2018 but is now explicitly a qualifying end product. For a program-by-program cost view, see the funding breakdown.

What's next

As of July 2026, several implementation questions remain open, and final numbers should be verified against the enrolled bill and the Congressional Budget Office (CBO) score.

USDA rulemaking will be required to define new eligible technology categories, particularly hydrogen and SAF pathways. As of July 2026, no proposed rule has been published.

Final mandatory funding levels depend on the CBO score and any floor amendments. The 2018 Farm Bill provided roughly $50 million per year in mandatory REAP funding; the 2026 bill is reported to increase this, but the revised figure is to be confirmed. SAF eligibility may also overlap with the Treasury Department's 45Z clean fuel production credit, creating potential double-dipping concerns that USDA will need to address in guidance. You can track floor movement on the vote tracker and the current Senate posture on the Senate status page.

Biorefinery loan guarantee demand has historically outpaced available credit subsidy appropriations. Whether the 2026 bill resolves this structural gap is to be confirmed. Conference or markup disputes over REAP versus conservation title funding could also affect final Title IX appropriations.

Frequently asked questions

Who qualifies for a REAP grant and how do you apply?

Agricultural producers and rural small businesses qualify for REAP. Producers can apply for renewable energy systems or energy efficiency improvements, and rural small businesses outside agriculture also qualify. Applications go through USDA Rural Development. REAP grants cover up to 50 percent of project costs, and applicants may combine grants with loan guarantees. Exact application windows and thresholds under H.R. 7567 are set by USDA program notices.

What is the maximum grant amount a farmer can receive under the 2026 bill?

Under the 2018 Farm Bill, individual REAP grants were capped at $500,000 for renewable energy systems and $250,000 for energy efficiency improvements. H.R. 7567 raises these caps to account for construction cost inflation, but the new maximum figures are to be confirmed against the enrolled bill text. Grants still cover up to 50 percent of eligible project costs.

Does REAP cover solar panels, wind turbines, or both?

REAP covers both solar and wind renewable energy systems, along with energy efficiency improvements. The 2026 bill expands the eligible technology list further to include emerging technologies such as anaerobic digesters, renewable natural gas systems, and certain hydrogen production pathways. Exact statutory language for the new categories is to be confirmed against the enrolled text.

How is sustainable aviation fuel connected to a farm bill program?

Sustainable aviation fuel (SAF) connects to Title IX through the biorefinery assistance program. H.R. 7567 adds SAF as a qualifying end product for biorefinery loan guarantees, which were previously described under Section 9003 in the 2018 bill. SAF was not a named eligible use in 2018. The change reflects USDA and airline industry priorities that emerged after 2022.

What is an advanced biofuel and how does the payment program work?

An advanced biofuel is a renewable fuel other than corn-starch ethanol, including cellulosic and other next-generation fuels. The Bioenergy Program for Advanced Biofuels makes annual payments to eligible producers based on the quantity and energy content of qualifying fuels. H.R. 7567 reauthorizes mandatory funding for this program through fiscal year 2031, with annual amounts to be confirmed.

Can a rural restaurant or hardware store apply for REAP, or is it only for farms?

Rural small businesses can apply for REAP, not just farms. This includes rural manufacturers, food processors, and service businesses. The program serves both agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements. A rural restaurant or hardware store investing in efficiency upgrades or renewable energy may qualify, subject to USDA eligibility rules and location requirements.