H.R. 7567 · 119th Congress
Farm Bill 2.0

News · May 20, 2026

Title IX Energy: REAP, Bioenergy, and Biorefinery in H.R. 7567

H.R. 7567 Title IX reauthorizes REAP grants, advanced biofuel payments, and biorefinery loan guarantees for farms and rural businesses.

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TL;DR: Title IX of H.R. 7567, the Farm, Food, and National Security Act of 2026, reauthorizes three core USDA rural energy programs: the Rural Energy for America Program (REAP), the Bioenergy Program for Advanced Biofuels, and the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance program. Farmers, rural small businesses, and biofuel producers are the primary beneficiaries. Final funding levels remain to be confirmed.

Key takeaway

Title IX of H.R. 7567 keeps federal grants, loan guarantees, and biofuel production payments flowing to farms and rural businesses, but final mandatory dollar amounts are still pending as of May 2026.

What this section does

Title IX of H.R. 7567 reauthorizes a cluster of USDA rural energy programs first established in the 2008 Farm Bill and continued through the 2014 and 2018 reauthorizations. The section covers on-farm energy upgrades, renewable energy installations, biofuel producer payments, and loan guarantees for biorefinery construction and retrofits. USDA Rural Development administers most of these programs.

The Rural Energy for America Program, commonly called REAP, provides grants and loan guarantees to agricultural producers and rural small businesses for qualifying renewable energy systems and energy efficiency improvements. Eligible renewable energy technologies include solar, wind, small hydropower, biomass, geothermal, and hydrogen systems. H.R. 7567 maintains the basic eligibility structure from the 2018 Farm Bill, with a continued set-aside for smaller agricultural producers applying for grants at or below a defined dollar threshold. The specific percentage of funds reserved for that small-producer set-aside is to be confirmed in final bill text.

The Bioenergy Program for Advanced Biofuels makes per-unit production payments to eligible producers of advanced biofuels, meaning fuels derived from feedstocks other than corn starch, such as corn stover, soybean oil, animal fat, and algae. Payment amounts are tied to the quantity and type of fuel produced, as in prior law. Whether H.R. 7567 adjusts eligible feedstocks or fuel pathways compared to 2018 definitions is to be confirmed.

The Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance program issues federal loan guarantees to support the development, construction, and retrofitting of eligible facilities. The 2018 Farm Bill authorized up to $250 million in loan guarantees per project; whether H.R. 7567 adjusts that cap to account for inflation or larger project scales is to be confirmed. Title IX also continues Energy Audit and Renewable Energy Development Assistance grants, which fund state and local outreach to help producers identify energy efficiency opportunities.

What it means

For farmers and ranchers, REAP remains the most directly accessible program in Title IX. A producer can apply for a grant covering a portion of the cost of a qualifying solar array, wind turbine, anaerobic digester, or energy efficiency upgrade, with loan guarantee support also available for larger projects. Smaller operations benefit specifically from the small-producer set-aside, which reserves a portion of annual REAP funding for applicants requesting amounts at or below a defined threshold, reducing competition with larger commercial projects. Whether new technologies such as agrivoltaic systems (combined solar and crop production) will be added to the eligible list under H.R. 7567 is unresolved as of May 2026.

For advanced biofuel producers, the reauthorization preserves the payment-per-unit structure that has supported facilities processing non-corn-starch feedstocks. Producers using soybean oil, animal fats, and crop residues have historically been the largest beneficiaries of this program. The mandatory baseline funding level for this program in H.R. 7567 is to be confirmed, which matters because mandatory funding flows without additional congressional appropriations action.

  • Farmers and ranchers: REAP grants and loan guarantees for solar, wind, biomass, geothermal, hydrogen, and efficiency projects.
  • Rural small businesses: Eligible alongside agricultural producers for REAP assistance on qualifying energy projects.
  • Advanced biofuel producers: Per-unit or per-BTU production payments for non-corn-starch fuel output.
  • Biorefinery developers: Federal loan guarantee backing for construction or retrofit of eligible facilities, subject to USDA underwriting standards.

One structural question affecting all Title IX programs involves the federal energy tax credits made available under the Inflation Reduction Act of 2022. Some REAP-eligible projects may also qualify for those credits. USDA rulemaking after enactment will need to address whether and how the two forms of support can be combined, often called "stacking." See the funding breakdown for more on how mandatory and discretionary authorizations interact with appropriations.

What's next

As of May 2026, the mandatory funding levels for REAP and the Advanced Biofuels program are subject to ongoing budget reconciliation constraints and potential conference negotiations. Discretionary funding levels, which require annual appropriations action regardless of the farm bill authorization, are set separately. Both tracks affect how much money ultimately flows to eligible applicants in any given fiscal year.

After H.R. 7567 is enacted, USDA Rural Development will conduct rulemaking to establish or update scoring criteria for REAP applications, define any new priority categories, and clarify interaction with Inflation Reduction Act tax credits. The timeline for new REAP application windows following enactment will depend on that rulemaking process and is to be confirmed. Historically, USDA has opened REAP application cycles on a rolling or annual basis following prior reauthorizations.

The biorefinery loan guarantee program carries a separate implementation risk: it has historically seen low utilization due to lender participation constraints and USDA underwriting complexity. Rulemaking under H.R. 7567 will set the terms that determine whether private lenders engage with the program at higher rates than in prior years.

For the current status of H.R. 7567 in the Senate, see the Senate status page and the timeline and status tracker.

Frequently asked questions

What types of farm energy projects can I apply for through REAP, and what is the maximum grant amount?

REAP covers grants and loan guarantees for renewable energy systems, including solar, wind, small hydropower, biomass, geothermal, and hydrogen, as well as energy efficiency improvements. H.R. 7567 maintains the eligible technology list from the 2018 Farm Bill. Per-project grant caps and any increases to those caps under the 2026 bill are to be confirmed in final text and subsequent USDA rulemaking.

Does my small farm qualify for the small-producer set-aside, and what does that mean for my application?

H.R. 7567 is reported to maintain a small-producer set-aside that reserves a portion of annual REAP funding for agricultural producers requesting grants at or below a defined dollar threshold. If your requested amount falls at or below that threshold, your application competes in a smaller pool rather than against large commercial projects. The specific set-aside percentage and dollar threshold are to be confirmed in final bill text.

How does the Advanced Biofuels payment program work, and which fuel types are eligible?

The Bioenergy Program for Advanced Biofuels pays eligible producers per unit of advanced biofuel produced. Eligible fuels are derived from feedstocks other than corn starch, including corn stover, soybean oil, animal fat, and algae. Payment amounts vary by quantity and fuel type. Whether H.R. 7567 changes eligible feedstocks or fuel pathways compared to 2018 definitions is to be confirmed.

Can I stack a REAP grant with federal energy tax credits from the Inflation Reduction Act?

The interaction between REAP grants and Inflation Reduction Act energy tax credits is an open question as of May 2026. Some project categories overlap, creating a potential stacking question. USDA rulemaking following enactment of H.R. 7567 is expected to address whether and under what conditions a producer can use both forms of support on the same project. No final guidance has been issued.

What is a biorefinery loan guarantee, and who can apply?

The Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance program issues federal loan guarantees to help developers finance the construction or retrofitting of biorefineries and biobased product manufacturing facilities. The loan guarantee reduces lender risk, making it easier for developers to secure private financing. The 2018 Farm Bill authorized up to $250 million per project; whether H.R. 7567 adjusts that cap is to be confirmed.

How is Title IX of the 2026 Farm Bill different from what was in the 2018 bill?

The core program structures, REAP, the Advanced Biofuels payment program, and the biorefinery loan guarantee program, carry over from the 2018 Farm Bill. H.R. 7567 is widely reported to emphasize domestic energy production and energy security more explicitly than the 2018 bill, which used climate-adjacent framing. Specific changes to mandatory funding levels, per-project caps, and eligible technology lists compared to 2018 are to be confirmed in final bill text.

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