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

TL;DR: Title IX of H.R. 7567 reauthorizes USDA rural energy programs, including the Rural Energy for America Program (REAP), the Bioenergy Program for Advanced Biofuels, and the Biorefinery Assistance Program. REAP funds on-farm renewable energy and efficiency projects through grants and guaranteed loans. The 2026 bill keeps technology-neutral eligibility, but final mandatory funding levels are to be confirmed.

Key takeaway

Title IX keeps REAP grants and loans, advanced biofuel payments, and biorefinery loan guarantees, but the final mandatory funding split is unresolved as of June 2026.

What this section does

Title IX of H.R. 7567 reauthorizes and modifies the USDA rural energy programs first created in the 2002 Farm Bill and expanded in 2008 and 2018. The core programs are REAP, the Bioenergy Program for Advanced Biofuels, and the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program.

REAP provides grants and guaranteed loans to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements. Eligible technologies historically include solar, wind, small hydropower, biomass, geothermal, and efficiency upgrades. The 2026 bill is reported to maintain this technology-neutral eligibility structure. For program-by-program context, see our full bill summary.

The Bioenergy Program for Advanced Biofuels pays producers who expand qualifying advanced biofuel production beyond a historical baseline. The 2026 bill reauthorizes this program, with funding to be confirmed.

The Biorefinery Assistance Program (Section 9003 lineage) offers loan guarantees for facilities producing advanced biofuels, renewable chemicals, or biobased products. The 2026 bill continues this loan guarantee authority. It is also reported to include provisions encouraging domestic feedstock sourcing and supply chain considerations for biorefinery eligibility.

What it means

REAP changes directly affect capital costs for farm energy projects. Agricultural producers installing on-farm solar, wind, or energy efficiency systems are the primary beneficiaries, and grant or loan access shapes whether those projects pencil out.

The programs reach beyond traditional farming:

• Agricultural producers seeking on-farm solar, wind, or efficiency systems.
• Rural small businesses outside agriculture, including agri-tourism operators and rural manufacturers, which are also REAP-eligible.
• Advanced biofuel producers, including cellulosic ethanol and algae-based fuel companies, that rely on Bioenergy Program payments to stay commercially viable.
• Biorefinery developers and investors, who depend on Section 9003-style loan guarantees to access private capital.

The biggest open variable is money. The 2018 Farm Bill provided roughly $50 million per year in mandatory REAP funding and about $15 million per year for the Bioenergy Program. The comparable 2026 figures are to be confirmed, and House Agriculture Committee markups signaled pressure to reduce or convert some mandatory funds to discretionary authorization. See our what's new vs 2018 breakdown for how this compares across titles, and the funding breakdown for the latest figures.

The 2018 bill included a 20 percent set-aside within REAP for smaller projects, prioritizing grants of $20,000 or less. Whether the 2026 bill preserves, raises, or eliminates that threshold is to be confirmed.

What's next

As of June 2026, the final mandatory versus discretionary funding split for REAP has not been publicly resolved and is expected to be a key conference committee negotiating point. You can follow the legislative process on our timeline and status page.

USDA Rural Development retains significant administrative discretion over REAP application scoring. How scoring weights energy savings, rural impact, and technology type will require formal rulemaking after enactment. Bioenergy Program payment rates are set administratively based on available funding divided among qualifying producers, so payment certainty depends on enrollment levels that cannot be predicted at authorization.

The Biorefinery Assistance Program has historically obligated far less than its authorized loan guarantee ceiling, largely due to stringent underwriting requirements. Whether the 2026 bill includes reforms to improve utilization is to be confirmed. The 2026 bill is reported to retain the structure without a major eligibility overhaul. For context on what was left out, see what's missing.

Frequently asked questions

What kinds of farm energy projects can I use REAP money for?

REAP funds renewable energy systems and energy efficiency improvements for agricultural producers and rural small businesses. Eligible technologies historically include solar, wind, small hydropower, biomass, geothermal, and efficiency upgrades to existing systems. The 2026 bill is reported to maintain this technology-neutral eligibility. Examples include solar arrays on farm buildings, grain dryer efficiency upgrades, and irrigation system improvements that cut energy use.

Is REAP a grant, a loan, or both, and how large can the award be?

REAP provides both grants and guaranteed loans to eligible applicants. The 2018 Farm Bill reserved a portion of funds for smaller grants of $20,000 or less, prioritizing smaller agricultural operations. Whether the 2026 bill keeps, raises, or eliminates that small-grant set-aside threshold is to be confirmed. Final award sizes depend on USDA rulemaking and available funding after enactment.

How is an advanced biofuel defined for the Bioenergy Program payment?

The Bioenergy Program for Advanced Biofuels pays producers who expand production of qualifying advanced biofuels beyond a historical baseline. Qualifying advanced biofuels include cellulosic ethanol and algae-based fuels. Payment rates are set administratively based on available funding divided among qualifying producers, so the per-producer payment depends on total enrollment in any given year and cannot be guaranteed at authorization.

Why has the Biorefinery loan guarantee program historically been underused?

The Biorefinery Assistance Program has historically obligated far less than its authorized loan guarantee ceiling because of stringent underwriting requirements. Those requirements made it difficult for developers to qualify. The 2026 bill is reported to retain the existing structure without a major eligibility overhaul, and whether it includes reforms to improve utilization is to be confirmed.

Does my rural small business qualify for REAP if I am not a farmer?

Yes, rural small businesses outside traditional agriculture can qualify for REAP. Eligible applicants include agri-tourism operators and rural manufacturers, not only agricultural producers. These businesses can use REAP grants and guaranteed loans for renewable energy systems and energy efficiency improvements, and they would be affected by any funding changes in the 2026 bill.

When will USDA open the next REAP application window under the new bill?

The next REAP application window timing is to be confirmed and depends on enactment and subsequent USDA Rural Development rulemaking. USDA must set application scoring criteria through formal rulemaking after the bill becomes law. Any reduction in mandatory REAP funding relative to the 2018 baseline could require producers planning projects to reassess grant availability timelines pending appropriations.