Commonly known as the "Farm Bill"

This is just the "Energy" section of the Farm Bill

By a strong, veto-proof majority, the House passed a $290 billion farm bill with increased subsidies for farmers and food stamps for the poor amid rising grocery prices while sprinkling in pet projects that lawmakers can take home to voters this election year. The 318-106 vote for the five-year bill gave supporters 28 more than they need to override a promised veto from President Bush, who has complained the measure is too expensive and generous to farmers now enjoying record earnings. "A bloated, earmark-laden bill," his agriculture secretary said after the vote.

May 15, 2008

Title IX—Energy
Reauthorizes the federal procurement of biobased products program: The program requires federal agencies to purchase biobased products whenever possible. The program also requires USDA to develop guidelines for biobased products and issue a label for products that meet these guidelines. Provides up to $9 million in mandatory funding for the testing and labeling of biobased products.

Biorefinery Assistance: The bill provides $75 million for fiscal year 2009 and $245 million for fiscal year 2010 for loan guarantees to assist with the development of advanced biorefineries and biofuel production plants. 

Davis-Bacon Labor: This section of the bill includes a requirement that local prevailing wages (Davis-Bacon) be paid to workers in all construction projects funded by the grants or loans under this section. Rural Energy for America Program: This conference agreement authorizes $250 million in mandatory funds for the Rural Energy for America Program (REAP). REAP provides grants for energy audits and renewable energy development assistance and financial assistance for energy efficiency improvements and renewable energy systems for agricultural producers and rural small businesses.

Biomass Research and Development: The conference agreement requires the Secretary of Agriculture and the Secretary of Energy to award competitive grants, contracts, and financial assistance to carry out research and development into biofuels and biobased products and technologies. There is $118 million in mandatory funding for this program.

Biomass Crop Assistance Program (BCAP): The BCAP is a new program that provides incentives for producers to establish and grow cellulosic energy crops.

CCC Bioenergy Program: Makes adjustments to the CCC Bioenergy Program to provide incentives for increased use of agriculture commodities (except corn) and agriculture and forestry waste for the expanded production of advanced biofuels. Provides $300 in mandatory funding over the life of the bill.

Sugar for Ethanol and other Biofuel Producers: The bill requires the Secretary to purchase sugar for resale to ethanol or other biofuels producers if the sugar supply was in excess and would otherwise be forfeited to the Commodity Credit Corporation.

Cellulosic Biofuels Credit: The Conference Report creates a tax credit (up to $1.01 per gallon) for the production of cellulosic biofuels.  Cellulosic biofuels can be derived from numerous substances, including switchgrass, woodchips, and agricultural waste.  The tax credit expires December 31, 2012.  The provision is estimated to cost $403 million over fiscal years 2008-2018. 

Reduction of the Ethanol Tax Credit: The Conference Report reduces the ethanol tax credit from 51 cents per gallon to 45 cents per gallon starting in January 2009.  This reduction will be delayed if the Treasury Department determines that U.S. production and importation of ethanol totaled less than 7.5 billion gallons in 2008.

Ethanol Tariff: The Conference Report extends the tariff on imported ethanol through December 31, 2010.  This provision is estimated to increase revenues $70 million from fiscal year 2008-2018.

 Caribbean Basin Initiative: The Conference Report extends the Caribbean Basin Initiative through September 30, 2010.  These trade preferences, which are currently set to expire in September 2008, apply to certain products, including textiles, apparel, and other goods from certain Caribbean nations.

`TITLE IX--ENERGY

`SEC. 9001. DEFINITIONS.

`Except as otherwise provided, in this title:

`(1) ADMINISTRATOR- The term `Administrator' means the Administrator of the Environmental Protection Agency.

`(2) ADVISORY COMMITTEE- The term `Advisory Committee' means the Biomass Research and Development Technical Advisory Committee established by section 9008(d)(1).

`(3) ADVANCED BIOFUEL-

`(A) IN GENERAL- The term `advanced biofuel' means fuel derived from renewable biomass other than corn starch.

`(B) INCLUSIONS- The term `advanced biofuel' includes--

`(i) biofuel derived from cellulose, hemicellulose, or lignin;

`(ii) biofuel derived from sugar and starch (other than ethanol derived from corn starch);

`(iii) biofuel derived from waste material, including crop residue, other vegetative waste material, animal waste and byproducts (including fats, oils, greases, and manure), food waste, and yard waste;

`(iv) diesel-equivalent fuel derived from renewable biomass, including vegetable oil and animal fat;

`(v) biogas (including landfill gas and sewage waste treatment gas) produced through the conversion of organic matter from renewable biomass;

`(vi) butanol or other alcohols produced through the conversion of organic matter from renewable biomass; and

`(vii) other fuel derived from cellulosic biomass.

`(4) BIOBASED PRODUCT- The term `biobased product' means a product determined by the Secretary to be a commercial or industrial product (other than food or feed) that is--

`(A) composed, in whole or in significant part, of biological products, including renewable domestic agricultural materials and forestry materials; or

`(B) an intermediate ingredient or feedstock.

`(5) BIOFUEL- The term `biofuel' means a fuel derived from renewable biomass.

`(6) BIOMASS CONVERSION FACILITY- The term `biomass conversion facility' means a facility that converts or proposes to convert renewable biomass into--

`(A) heat;

`(B) power;

`(C) biobased products; or

`(D) advanced biofuels.

`(7) BIOREFINERY- The term `biorefinery' means equipment and processes that--

`(A) convert renewable biomass into biofuels and biobased products; and

`(B) may produce electricity.

`(8) BOARD- The term `Board' means the Biomass Research and Development Board established by section 9008(c).

`(9) INDIAN TRIBE- The term `Indian tribe' has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

`(10) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher education' has the meaning given the term in section 102(a) of the Higher Education Act of 1965 (20 U.S.C. 1002(a)).

`(11) INTERMEDIATE INGREDIENT OR FEEDSTOCK- The term `intermediate ingredient or feedstock' means a material or compound made in whole or in significant part from biological products, including renewable agricultural materials (including plant, animal, and marine materials) or forestry materials, that are subsequently used to make a more complex compound or product.

`(12) RENEWABLE BIOMASS- The term `renewable biomass' means--

`(A) materials, pre-commercial thinnings, or removed exotic species that--

`(i) are byproducts of preventive treatments (such as trees, wood, brush, thinnings, chips, and slash), that are removed--

`(I) to reduce hazardous fuels;

`(II) to reduce or contain disease or insect infestation; or

`(III) to restore ecosystem health;

`(ii) would not otherwise be used for higher-value products; and

`(iii) are harvested from National Forest System land or public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)), in accordance with--

`(I) Federal and State law;

`(II) applicable land management plans; and

`(III) the requirements for old-growth maintenance, restoration, and management direction of paragraphs (2), (3), and (4) of subsection (e) of section 102 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512) and the requirements for large-tree retention of subsection (f) of that section; or

`(B) any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including--

`(i) renewable plant material, including--

`(I) feed grains;

`(II) other agricultural commodities;

`(III) other plants and trees; and

`(IV) algae; and

`(ii) waste material, including--

`(I) crop residue;

`(II) other vegetative waste material (including wood waste and wood residues);

`(III) animal waste and byproducts (including fats, oils, greases, and manure);

`(IV) construction waste; and

`(V) food waste and yard waste.

`(13) RENEWABLE ENERGY- The term `renewable energy' means energy derived from--

`(A) a wind, solar, renewable biomass, ocean (including tidal, wave, current, and thermal), geothermal, or hydroelectric source; or

`(B) hydrogen derived from renewable biomass or water using an energy source described in subparagraph (A).

`(14) RURAL AREA- Except as otherwise provided in this title, the term `rural area' has the meaning given the term in section 343(a)(13)(A) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(A)).

`(15) SECRETARY- The term `Secretary' means the Secretary of Agriculture.

`SEC. 9002. BIOBASED MARKETS PROGRAM.

`(a) Federal Procurement of Biobased Products-

`(1) DEFINITION OF PROCURING AGENCY- In this subsection, the term `procuring agency' means--

`(A) any Federal agency that is using Federal funds for procurement; or

`(B) a person that is a party to a contract with any Federal agency, with respect to work performed under such a contract.

`(2) APPLICATION OF SECTION- Except as provided in paragraph (3), each procuring agency shall comply with this subsection (including any regulations issued under this subsection), with respect to any purchase or acquisition of a procurement item for which--

`(A) the purchase price of the item exceeds $10,000; or

`(B) the quantity of the items or of functionally-equivalent items purchased or acquired during the preceding fiscal year was at least $10,000.

`(3) PROCUREMENT PREFERENCE-

`(A) IN GENERAL- Except as provided in subparagraph (B), after the date specified in applicable guidelines prepared pursuant to paragraph (5), each procuring agency that procures any items designated in the guidelines and items containing designated biobased intermediate ingredients and feedstocks shall, in making procurement decisions (consistent with maintaining a satisfactory level of competition, considering the guidelines), give preference to items that--

`(i) are composed of the highest percentage of biobased products practicable;

`(ii) are composed of at least 5 percent of intermediate ingredients and feedstocks (or a lesser percentage that the Secretary determines to be appropriate) as designated by the Secretary; or

`(iii) comply with the regulations issued under section 103 of Public Law 100-556 (42 U.S.C. 6914b-1).

`(B) FLEXIBILITY- Notwithstanding subparagraph (A), a procuring agency may decide not to procure items described in that subparagraph if the procuring agency determines that the items--

`(i) are not reasonably available within a reasonable period of time;

`(ii) fail to meet--

`(I) the performance standards set forth in the applicable specifications; or

`(II) the reasonable performance standards of the procuring agencies; or

`(iii) are available only at an unreasonable price.

`(C) CERTIFICATION- After the date specified in any applicable guidelines prepared pursuant to paragraph (5), contracting offices shall require that, with respect to biobased products, vendors certify that the biobased products to be used in the performance of the contract will comply with the applicable specifications or other contractual requirements.

`(4) SPECIFICATIONS- Each Federal agency that has the responsibility for drafting or reviewing procurement specifications shall, not later than 1 year after the date of publication of applicable guidelines under paragraph (5), or as otherwise specified in the guidelines, ensure that the specifications require the use of biobased products consistent with this subsection.

`(5) GUIDELINES-

`(A) IN GENERAL- The Secretary, after consultation with the Administrator, the Administrator of General Services, and the Secretary of Commerce (acting through the Director of the National Institute of Standards and Technology), shall prepare, and from time to time revise, guidelines for the use of procuring agencies in complying with the requirements of this subsection.

`(B) REQUIREMENTS- The guidelines under this paragraph shall--

`(i) designate those items that are or can be produced with biobased products (including biobased products for which there is only a single product or manufacturer in the category) and the procurement of which by procuring agencies will carry out the objectives of this subsection;

`(ii) designate those intermediate ingredients and feedstocks and finished products that contain significant portions of biobased materials or components the procurement of which by procuring agencies will carry out the objectives of this subsection;

`(iii) set forth recommended practices with respect to the procurement of biobased products and items containing such materials and with respect to certification by vendors of the percentage of biobased products used;

`(iv) provide information as to the availability, relative price, performance, and environmental and public health benefits, of such materials and items; and

`(v) automatically designate those items that are composed of materials and items designated pursuant to paragraph (3), if the content of the final product exceeds 50 percent (unless the Secretary determines a different composition percentage).

`(C) INFORMATION PROVIDED- Information provided pursuant to subparagraph (B)(iv) with respect to a material or item shall be considered to be provided for another item made with the same material or item.

`(D) PROHIBITION- Guidelines issued under this paragraph may not require a manufacturer or vendor of biobased products, as a condition of the purchase of biobased products from the manufacturer or vendor, to provide to procuring agencies more data than would be required to be provided by other manufacturers or vendors offering products for sale to a procuring agency, other than data confirming the biobased content of a product.

`(E) STATE PROCUREMENT- Not later than 180 days after the date of enactment of this section, the Secretary shall offer procurement system models that States may use for the procurement of biobased products by the States.

`(6) ADMINISTRATION-

`(A) OFFICE OF FEDERAL PROCUREMENT POLICY- The Office of Federal Procurement Policy, in cooperation with the Secretary, shall--

`(i) coordinate the implementation of this subsection with other policies for Federal procurement;

`(ii) annually collect the information required to be reported under subparagraph (B) and make the information publicly available;

`(iii) take a leading role in conducting proactive research to inform and promote the adoption of and compliance with procurement requirements for biobased products by Federal agencies; and

`(iv) not less than once every 2 years, submit to Congress a report that--

`(I) describes the progress made in carrying out this subsection, including agency compliance with paragraph (4); and

`(II) contains a summary of the information reported pursuant to subparagraph (B).

`(B) OTHER AGENCIES- To assist the Office of Federal Procurement Policy in carrying out subparagraph (A)--

`(i) each procuring agency shall submit each year to the Office of Federal Procurement Policy, to the maximum extent practicable, information concerning--

`(I) actions taken to implement paragraphs (3), (4), and (7);

`(II) the results of the annual review and monitoring program established under paragraph (7)(B)(iii);

`(III) the number and dollar value of contracts entered into during the year that include the direct procurement of biobased products;

`(IV) the number of service and construction (including renovations and modernizations) contracts entered into during the year that include language on the use of biobased products; and

`(V) the types and dollar value of biobased products actually used by contractors in carrying out service and construction (including renovations and modernizations) contracts during the previous year; and

`(ii) the General Services Administration and the Defense Logistics Agency shall submit each year to the Office of Federal Procurement Policy, to the maximum extent practicable, information concerning the types and dollar value of biobased products purchased by procuring agencies through GSA Advantage!, the Federal Supply Schedule, and the Defense Logistic Agency (including the DoD EMall).

`(7) PROCUREMENT PROGRAM-

`(A) IN GENERAL- Not later than 1 year after the date of publication of applicable guidelines under paragraph (5), each Federal agency shall develop a procurement program that--

`(i) will ensure that items composed of biobased products will be purchased to the maximum extent practicable; and

`(ii) is consistent with applicable provisions of Federal procurement law.

`(B) MINIMUM REQUIREMENTS- Each procurement program required under this paragraph shall, at a minimum, contain--

`(i) a biobased products preference program;

`(ii) an agency promotion program to promote the preference program adopted under clause (i); and

`(iii) annual review and monitoring of the effectiveness of the procurement program of the agency.

`(C) CONSIDERATION-

`(i) IN GENERAL- In developing a preference program, an agency shall--

`(I) consider the options described in clauses (ii) and (iii); and

`(II) adopt 1 of the options, or a substantially equivalent alternative, for inclusion in the procurement program.

`(ii) CASE-BY-CASE POLICY DEVELOPMENT-

`(I) IN GENERAL- Subject to paragraph (3)(B), except as provided in subclause (II), in developing a preference program, an agency shall consider a policy of awarding contracts to the vendor offering an item composed of the highest percentage of biobased products practicable.

`(II) CERTAIN CONTRACTS ALLOWED- Subject to paragraph (3)(B), an agency may make an award to a vendor offering items with less than the maximum biobased products content.

`(iii) MINIMUM CONTENT STANDARDS- In developing a preference program, an agency shall consider minimum biobased products content specifications that are established in a manner that ensures that the biobased products content required is consistent with this subsection, without violating paragraph (3)(B).

`(b) Labeling-

`(1) IN GENERAL- The Secretary, in consultation with the Administrator, shall establish a voluntary program under which the Secretary authorizes producers of biobased products to use the label `USDA Certified Biobased Product'.

`(2) ELIGIBILITY CRITERIA-

`(A) CRITERIA-

`(i) IN GENERAL- Not later than 90 days after the date of the enactment of this section, except as provided in clause (ii), the Secretary, in consultation with the Administrator and representatives from small and large businesses, academia, other Federal agencies, and such other persons as the Secretary considers appropriate, shall issue criteria (as of the date of enactment of this section) for determining which products may qualify to receive the label under paragraph (1).

`(ii) EXCEPTION- Clause (i) shall not apply to final criteria that have been issued (as of the date of enactment of this section) by the Secretary.

`(B) REQUIREMENTS- Criteria issued under subparagraph (A)--

`(i) shall encourage the purchase of products with the maximum biobased content;

`(ii) shall provide that the Secretary may designate as biobased for the purposes of the voluntary program established under this subsection finished products that contain significant portions of biobased materials or components; and

`(iii) to the maximum extent practicable, should be consistent with the guidelines issued under subsection (a)(5).

`(3) USE OF LABEL- The Secretary shall ensure that the label referred to in paragraph (1) is used only on products that meet the criteria issued pursuant to paragraph (2).

`(4) RECOGNITION- The Secretary shall--

`(A) establish a voluntary program to recognize Federal agencies and private entities that use a substantial amount of biobased products; and

`(B) encourage Federal agencies to establish incentives programs to recognize Federal employees or contractors that make exceptional contributions to the expanded use of biobased products.

`(c) Limitation- Nothing in this section (other than subsections (f), (g), and (h)) shall apply to the procurement of motor vehicle fuels, heating oil, or electricity.

`(d) Inclusion-

`(1) IN GENERAL- Not later than 90 days after the date of enactment of the Food and Energy Security Act of 2007, the Architect of the Capitol, the Sergeant at Arms of the Senate, and the Chief Administrative Officer of the House of Representatives shall establish procedures that apply the requirements of this section to procurement for the Capitol Complex.

`(2) ANNUAL SHOWCASE- Beginning in calendar year 2008, the Secretary shall sponsor or otherwise support, consistent with applicable Federal laws (including regulations), an annual exposition at which entities may display and demonstrate biobased products.

`(e) Testing of Biobased Products-

`(1) IN GENERAL- The Secretary may establish 1 or more national testing centers for biobased products to verify performance standards, biobased contents, and other product characteristics.

`(2) REQUIREMENT- In establishing 1 or more national testing centers under paragraph (1), the Secretary shall give preference to entities that have established capabilities and experience in the testing of biobased materials and products.

`(f) Bioenergy and Other Biobased Products Education and Awareness Campaign-

`(1) IN GENERAL- The Secretary in consultation with the Secretary of Energy, shall establish a program to make competitive grants to eligible entities to carry out broad-based education and public awareness campaigns relating to bioenergy (including biofuels but excluding biodiesel) and other biobased products.

`(2) ELIGIBLE ENTITIES- An entity eligible to receive a grant described in paragraph (1) is an entity that has demonstrated a knowledge of bioenergy (including biofuels but excluding biodiesel) and other biobased products and is--

`(A) a State energy or agricultural office;

`(B) a regional, State-based, or tribal energy organization;

`(C) a land-grant college or university (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)) or other institution of higher education;

`(D) a rural electric cooperative or utility;

`(E) a nonprofit organization, including an agricultural trade association, resource conservation and development district, and energy service provider;

`(F) a State environmental quality office; or

`(G) any other similar entity, other than a Federal agency or for-profit entity, as determined by the Secretary.

`(g) Reports-

`(1) IN GENERAL- Not later than 180 days after the date of enactment of this section and each year thereafter, the Secretary shall submit to Congress a report on the implementation of this section.

`(2) CONTENTS- The report shall include--

`(A) a comprehensive management plan that establishes tasks, milestones, and timelines, organizational roles and responsibilities, and funding allocations for fully implementing this section; and

`(B) information on the status of implementation of--

`(i) item designations (including designation of intermediate ingredients and feedstocks); and

`(ii) the voluntary labeling program established under subsection (b).

`(h) Funding-

`(1) IN GENERAL- Of the funds of the Commodity Credit Corporation, the Secretary shall use, to the maximum extent practicable, $3,000,000 for each of fiscal years 2008 through 2012--

`(A) to continue mandatory funding for biobased products testing as required to carry out this section; and

`(B) to carry out the bioenergy education and awareness campaign under subsection (f).

`(2) AUTHORIZATION OF APPROPRIATIONS- In addition to any other funds made available to carry out this section, there are authorized to be appropriated to carry out this section such sums as are necessary for each of fiscal years 2008 through 2012.

`(3) PRIORITY- At the discretion of the Secretary, the Secretary may give priority to the testing of products for which private sector firms provide cost sharing for the testing.

`SEC. 9003. BIODIESEL FUEL EDUCATION.

`(a) Purpose- The purpose of this section is to educate potential users about the proper use and benefits of biodiesel.

`(b) Establishment- The Secretary shall, under such terms and conditions as are appropriate, make grants to eligible entities to educate governmental and private entities that operate vehicle fleets, oil refiners, automotive companies, owners and operators of watercraft fleets, other interested entities (as determined by the Secretary), and the public about the benefits of biodiesel fuel use.

`(c) Eligible Entities- To receive a grant under subsection (b), an entity shall--

`(1) be a nonprofit organization or institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001));

`(2) have demonstrated knowledge of biodiesel fuel production, use, or distribution; and

`(3) have demonstrated the ability to conduct educational and technical support programs.

`(d) Consultation- In carrying out this section, the Secretary shall consult with the Secretary of Energy.

`(e) Funding- Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section, to the maximum extent practicable, $2,000,000 for each of fiscal years 2008 through 2012.

`SEC. 9004. BIOMASS CROP TRANSITION.

`(a) Definitions- In this section:

`(1) ELIGIBLE CROP-

`(A) IN GENERAL- The term `eligible crop' means a crop of renewable biomass.

`(B) EXCLUSIONS- The term `eligible crop' does not include any plant that--

`(i) the Secretary determines to be invasive or noxious on a regional basis under the Plant Protection Act (7 U.S.C. 7701 et seq.); or

`(ii) has the potential to become invasive or noxious on a regional basis, as determined by the Secretary, in consultation with other appropriate Federal or State departments and agencies.

`(2) ELIGIBLE LAND- The term `eligible land' means private agricultural or forest land that the Secretary determines was planted or considered to be planted for at least 4 of the 6 years preceding the date of enactment of the Food and Energy Security Act of 2007.

`(3) ELIGIBLE PARTICIPANT- The term `eligible participant' means an agricultural producer, forest land owner, or other individual holding the right to collect or harvest renewable biomass--

`(A) that is establishing 1 or more eligible crops on eligible land to be used in the production of advanced biofuels, other biobased products, heat, or power from a biomass conversion facility;

`(B) that is collecting or harvesting renewable biomass to be used in the production of advanced biofuels, other biobased products, heat, or power from a biomass conversion facility;

`(C) that has a letter of intent or proof of financial commitment from a biomass conversion facility, including a proposed biomass conversion facility that is economically viable, as determined by the Secretary, to purchase the eligible crops; and

`(D) the production operation of which is in such proximity to the biomass conversion facility described in subparagraph (C) as to make delivery of the eligible crops to that location economically practicable.

`(b) Biomass Crop Transition Assistance-

`(1) ESTABLISHMENT OF PROGRAM- The Secretary shall establish a program to provide transitional assistance, including planning grants, for the establishment and production of eligible crops to be used in the production of advanced biofuels, other biobased products, heat, or power from a biomass conversion facility.

`(2) EXCLUSION- An agricultural producer shall not be eligible for assistance under paragraph (1) for the establishment and production of--

`(A) any crop that is eligible for benefits under title I of the Food and Energy Security Act of 2007; or

`(B) an annual crop.

`(3) CONTRACTS-

`(A) IN GENERAL- The Secretary shall enter into contracts with eligible participants and entities described in subparagraph (B) to provide transitional assistance payments to eligible participants.

`(B) CONTRACTS WITH MEMBER ENTITIES- The Secretary may enter into 1 or more contracts with farmer-owned cooperatives, agricultural trade associations, or other similar entities on behalf of producer members that meet the requirements of, and elect to be treated as, eligible participants if the contract would offer greater efficiency in administration of the program.

`(C) REQUIREMENTS- Under a contract described in subparagraph (A), an eligible participant shall be required, as determined by the Secretary--

`(i) to produce 1 or more eligible crops;

`(ii) to develop and actively apply a conservation plan that meets the requirements for highly erodible land conservation and wetlands conservation as established under subtitles B and C of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.); and

`(iii) to agree to implement a conservation plan approved by the local soil conservation district, in consultation with the local committees established under section 8(b)(5) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(B)(5)) and the Secretary, or by the Secretary to use such conservation practices as are necessary, where appropriate--

`(I) to advance the goals and objectives of State, regional, and national fish and wildlife conservation plans and initiatives; and

`(II) to comply with mandatory environmental requirements for a producer under Federal, State, and local law.

`(4) PAYMENTS-

`(A) FIRST YEAR- During the first year of the contract, the Secretary shall make a payment to an eligible participant in an amount that covers the cost of establishing 1 or more eligible crops.

`(B) SUBSEQUENT YEARS- During any subsequent year of the contract, the Secretary shall make incentive payments to an eligible participant in an amount determined by the Secretary to encourage the eligible participant to produce renewable biomass.

`(5) APPLICATIONS- An application to the Secretary for assistance shall include--

`(A) identification of the proposed biomass conversion facility for which the crop is intended;

`(B) letters of intent or proof of financial commitment from the biomass conversion facility to purchase the crop; and

`(C) documentation from each eligible participant that describes--

`(i) the variety and acreage of the eligible crop the eligible participants have committed to producing; and

`(ii) the variety and acreage of crops that the eligible participants would have grown if the eligible participants had not committed to producing the eligible crop.

`(6) SELECTION CRITERIA- In selecting from applications submitted under this subsection, the Secretary shall consider--

`(A) the likelihood that the proposed establishment of the eligible crop will be viable within the proposed locale;

`(B) the impact of the proposed eligible crop and conversion system on wildlife, air, soil, and water quality and availability; and

`(C) local and regional economic impacts and benefits, including participation of beginning farmers or ranchers and socially disadvantaged farmers or ranchers.

`(7) ELIGIBLE CROP TRANSITION PLANNING GRANTS-

`(A) IN GENERAL- An eligible participant or member entity (as described in paragraph (3)(B)) may apply for a project planning grant in an amount of not more than $50,000 to assist in assessing the viability for, or assembling of, a regional supply of 1 or more eligible crops for use by a bioenergy conversion facility.

`(B) MATCHING REQUIREMENT- To receive a planning grant under subparagraph (A), an eligible participant or member entity shall provide matching funding in an amount equal to 100 percent of the amount of the grant.

`(c) Assistance for Production of Annual Crop of Renewable Biomass-

`(1) IN GENERAL- The Secretary may provide assistance to eligible participants to plant an annual crop of renewable biomass for use in a biomass conversion facility in the form of--

`(A) technical assistance; and

`(B) cost-share assistance for the cost of establishing an annual crop of renewable biomass.

`(2) EXCLUSION- An agricultural producer shall not be eligible for assistance under paragraph (1) for the establishment of any crop that is eligible for benefits under title I of the Food and Energy Security Act of 2007.

`(3) COMPLIANCE- Eligible participants receiving assistance under paragraph (1)(B) shall develop and actively apply a conservation plan that meets the requirements for highly erodible land conservation and wetlands conservation as established under subtitles B and C of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.).

`(d) Assistance for Collection, Harvest, Storage, and Transport of Renewable Biomass-

`(1) ESTABLISHMENT OF PROGRAM- The Secretary shall establish a program to provide assistance to eligible participants for collecting, harvesting, storing, and transporting renewable biomass to be used in the production of advanced biofuels, biobased products, heat, or power from a biomass conversion facility.

`(2) PAYMENTS-

`(A) IN GENERAL- An eligible participant shall receive payments under this subsection for each ton of renewable biomass delivered to a biomass conversion facility, based on a fixed rate to be established by the Secretary in accordance with subparagraph (B).

`(B) FIXED RATE- The Secretary shall establish a fixed payment rate for purposes of subparagraph (A) to reflect--

`(i) the estimated cost of collecting, harvesting, storing, and transporting the renewable biomass; and

`(ii) such other factors as the Secretary determines to be appropriate.

`(e) Assistance for Forest Biomass Planning-

`(1) IN GENERAL- The Secretary shall provide assistance to eligible participants to develop forest stewardship plans that involve management of forest biomass for delivery to a biomass conversion facility through--

`(A) a State forestry agency; or

`(B) a contract or agreement with a third-party provider in accordance with section 1242 of the Food Security Act of 1985 (16 U.S.C. 3842).

`(2) MANAGEMENT PRACTICES- The Secretary shall ensure that any plan developed using assistance provided under paragraph (1) includes management practices that will protect soil, water, and wildlife habitat resources on the land covered by the plan.

`(f) Best Practices-

`(1) RECORDKEEPING- Each eligible participant, and each biomass conversion facility contracting with the eligible participant, shall maintain and make available to the Secretary, at such times as the Secretary may request, appropriate records of methods used for activities for which payment is received under this section.

`(2) INFORMATION SHARING- From the records maintained under subparagraph (A), the Secretary shall maintain, and make available to the public, information regarding--

`(A) the production potential (including evaluation of the environmental benefits) of a variety of eligible crops; and

`(B) best practices for producing, collecting, harvesting, storing, and transporting eligible crops to be used in the production of advanced biofuels.

`(g) Funding-

`(1) BIOMASS CROP TRANSITION ASSISTANCE- Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out subsections (b) and (c) $130,000,000 for fiscal year 2008, to remain available until expended, of which not more than $5,000,000 may be used to carry out subsection (b)(7).

`(2) ASSISTANCE FOR COLLECTION, HARVEST, STORAGE, AND TRANSPORT OF RENEWABLE BIOMASS- Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out subsection (d) $10,000,000 for each of fiscal years 2009 through 2011, to remain available until expended.

`(3) ASSISTANCE FOR FOREST BIOMASS PLANNING- Of the funds made available under paragraph (1), the Secretary shall use not more than 5 percent to carry out subsection (e).

`SEC. 9005. BIOREFINERY AND REPOWERING ASSISTANCE.

`(a) Purpose- The purpose of this section is to assist in the development of new or emerging technologies for the use of renewable biomass or other sources of renewable energy--

`(1) to develop advanced biofuels;

`(2) to increase the energy independence of the United States by promoting the replacement of energy generated from fossil fuels with energy generated from a renewable energy source;

`(3) to promote resource conservation, public health, and the environment;

`(4) to diversify markets for raw agricultural and forestry products, and agriculture waste material; and

`(5) to create jobs and enhance the economic development of the rural economy.

`(b) Definition of Repower- In this section, the term `repower' means to substitute the production of heat or power from a fossil fuel source with heat or power from sources of renewable energy.

`(c) Assistance-

`(1) IN GENERAL- The Secretary shall make available to eligible entities described in subsection (d)--

`(A) grants to assist in paying the costs of--

`(i) development and construction of pilot- and demonstration-scale biorefineries intended to demonstrate the commercial viability of 1 or more processes for converting renewable biomass to advanced biofuels;

`(ii) repowering a biomass conversion facility, power plant, or manufacturing facility, in whole or in part; or

`(iii) conducting a study to determine the feasibility of repowering a biomass conversion facility, power plant, or manufacturing facility, in whole or in part; and

`(B) guarantees for loans made to fund--

`(i) the development and construction of commercial-scale biorefineries; or

`(ii) the repowering of a biomass conversion facility, power plant, or manufacturing facility, in whole or in part.

`(2) PREFERENCE- In selecting projects to receive grants and loan guarantees under this section, the Secretary shall give preference to projects that receive or will receive financial support from the State in which the project is carried out.

`(d) Eligible Entities- An eligible entity under this section is--

`(1) an individual;

`(2) a corporation;

`(3) a farm cooperative;

`(4) a rural electric cooperative or public power entity;

`(5) an association of agricultural producers;

`(6) a State or local energy agency or office;

`(7) an Indian tribe;

`(8) a consortium comprised of any individuals or entities described in any of paragraphs (1) through (7); or

`(9) any other similar entity, as determined by the Secretary.

`(e) Grants-

`(1) IN GENERAL- The Secretary shall award grants under subsection (c)(1)(A) on a competitive basis.

`(2) SELECTION CRITERIA-

`(A) GRANTS FOR DEVELOPMENT AND CONSTRUCTION OF PILOT AND DEMONSTRATION SCALE BIOREFINERIES-

`(i) IN GENERAL- In awarding grants for development and construction of pilot and demonstration scale biorefineries under subsection (c)(1)(A)(i), the Secretary shall select projects based on the likelihood that the projects will demonstrate the commercial viability of a new or emerging process for converting renewable biomass into advanced biofuels.

`(ii) FACTORS- The factors to be considered under clause (i) may include--

`(I) the potential market for 1 or more products;

`(II) the level of financial participation by the applicants;

`(III) the availability of adequate funding from other sources;

`(IV) the participation of producer associations and cooperatives;

`(V) the beneficial impact on resource conservation, public health, and the environment;

`(VI) the timeframe in which the project will be operational;

`(VII) the potential for rural economic development;

`(VIII) the participation of multiple eligible entities;

`(IX) the potential for developing advance industrial biotechnology approaches; and

`(X) whether the distribution of funds would have minimal impact on existing manufacturing and other facilities that use similar feedstocks.

`(B) GRANTS FOR REPOWERING- In selecting projects to receive grants for repowering under clauses (ii) and (iii) of subsection (c)(1)(A), the Secretary shall consider--

`(i) the change in energy efficiency that would result from the proposed repowering of the eligible entity;

`(ii) the reduction in fossil fuel use that would result from the proposed repowering; and

`(iii) the volume of renewable biomass located in such proximity to the eligible entity as to make local sourcing of feedstock economically practicable.

`(3) COST SHARING-

`(A) LIMITS-

`(i) DEVELOPMENT AND CONSTRUCTION OF PILOT AND DEMONSTRATION SCALE BIOREFINERIES- The amount of a grant awarded for development and construction of a biorefinery under subsection (c)(1)(A)(i) shall not exceed 50 percent of the cost of the project.

`(ii) REPOWERING- The amount of a grant awarded for repowering under subsection (c)(1)(A)(ii) shall not exceed 20 percent of the cost of the project.

`(iii) FEASIBILITY STUDY FOR REPOWERING- The amount of a grant awarded for a feasibility study for repowering under subsection (c)(1)(A)(iii) shall not exceed an amount equal to the lesser of--

`(I) an amount equal to 50 percent of the total cost of conducting the feasibility study; and

`(II) $150,000.

`(B) FORM OF GRANTEE SHARE-

`(i) IN GENERAL- The grantee share of the cost of a project may be made in the form of cash or the provision of services, material, or other in-kind contributions.

`(ii) LIMITATION- The amount of the grantee share of the cost of a project that is made in the form of the provision of services, material, or other in-kind contributions shall not exceed 15 percent of the amount of the grantee share determined under subparagraph (A).

`(f) Loan Guarantees-

`(1) CONDITIONS- As a condition of making a loan guarantee under subsection (c)(1)(B), the Secretary shall require--

`(A) demonstration of binding commitments to cover, from sources other than Federal funds, at least 20 percent of the total cost of the project described in the application;

`(B) in the case of a new or emerging technology, demonstration that the project design has been validated through a technical review and subsequent operation of a pilot or demonstration scale facility that can be scaled up to commercial size; and

`(C) demonstration that the applicant provided opportunities to local investors (as determined by the Secretary) to participate in the financing or ownership of the biorefinery.

`(2) LOCAL OWNERSHIP- The Secretary shall give preference under subsection (c)(1)(B) to applications for projects with significant local ownership.

`(3) APPROVAL- Not later than 90 days after the Secretary receives an application for a loan guarantee under subsection (c)(1)(B), the Secretary shall approve or disapprove the application.

`(4) LIMITATIONS-

`(A) MAXIMUM AMOUNT OF LOAN GUARANTEED-

`(i) COMMERCIAL-SCALE BIOREFINERIES- Subject to clause (iii), the principal amount of a loan guaranteed under subsection (c)(1)(B)(i) may not exceed $250,000,000.

`(ii) REPOWERING- Subject to clause (iii), the principal amount of a loan guaranteed under subsection (c)(1)(B)(ii) may not exceed $70,000,000.

`(iii) RELATIONSHIP TO OTHER FEDERAL FUNDING- The amount of a loan guaranteed under subsection (c)(1)(B) shall be reduced by the amount of other Federal funding that the entity receives for the same project.

`(B) MAXIMUM PERCENTAGE OF LOAN GUARANTEED- A loan guaranteed under subsection (c)(1)(B) shall be in an amount not to exceed 80 percent of the project costs, as determined by the Secretary.

`(C) AUTHORITY TO GUARANTEE ENTIRE AMOUNT OF THE LOAN- The Secretary may guarantee up to 100 percent of the principal and interest due on a loan guaranteed under subsection (c)(1)(B).

`(g) Consultation- In carrying out this section, the Secretary shall consult with the Secretary of Energy.

`(h) Funding- Of the funds of the Commodity Credit Corporation, the Secretary shall use for the cost of grants and loan guarantees to carry out this section $300,000,000 for fiscal year 2008, to remain available until expended.

`SEC. 9006. BIOENERGY PROGRAM FOR ADVANCED BIOFUELS.

`(a) Definition of Eligible Producer- In this section, the term `eligible producer' means a producer of advanced biofuels.

`(b) Payments- The Secretary shall make payments to eligible producers to encourage increased purchases of renewable biomass for the purpose of expanding production of, and supporting new production capacity for, advanced biofuels.

`(c) Contracts- To receive a payment, an eligible producer shall--

`(1) enter into a contract with the Secretary to increase production of advanced biofuels for 1 or more fiscal years; and

`(2) submit to the Secretary such records as the Secretary may require as evidence of increased purchase and use of renewable biomass for the production of advanced biofuels.

`(d) Basis for Payments- The Secretary shall make payments under this section to eligible producers based on--

`(1) the level of production by the eligible producer of an advanced biofuel;

`(2) the price of each renewable biomass feedstock used for production of the advanced biofuel;

`(3) the net nonrenewable energy content of the advanced biofuel, if sufficient data is available, as determined by the Secretary; and

`(4) other appropriate factors, as determined by the Secretary.

`(e) Overpayments- If the total amount of payments that an eligible producer receives for a fiscal year under this section exceeds the amount that the eligible producer should have received, the eligible producer shall repay the amount of the overpayment to the Secretary, with interest (as determined by the Secretary).

`(f) Limitations-

`(1) EQUITABLE DISTRIBUTION- The Secretary may limit the amount of payments that may be received by a single eligible producer under this section in order to distribute the total amount of funding available in an equitable manner.

`(2) INELIGIBILITY- An eligible producer that claims a credit allowed under section 40(a)(3), 40(a)(4), or 40A(a)(3) of the Internal Revenue Code of 1986 shall not be eligible to receive payments under subsection (d).

`(3) REFINING CAPACITY- An eligible producer may not use any funds received under this section for an advanced biofuel production facility or other fuel refinery the total refining capacity of which is more than 150,000,000 gallons per year.

`(g) Other Requirements- To receive a payment under this section, an eligible producer shall meet any other requirements of Federal and State law (including regulations) applicable to the production of advanced biofuels.

`(h) Funding- Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $245,000,000 for the period of fiscal years 2008 through 2012, to remain available until expended.

`SEC. 9007. RURAL ENERGY FOR AMERICA PROGRAM.

`(a) Establishment- The Secretary, in consultation with the Secretary of Energy, shall establish a Rural Energy for America Program to promote energy efficiency and renewable energy development for agricultural producers, cooperatives, rural small businesses, and other similar entities through--

`(1) grants for energy audits and renewable energy development assistance;

`(2) financial assistance for energy efficiency improvements and renewable energy systems; and

`(3) financial assistance for facilities to convert animal manure to energy.

`(b) Energy Audits and Renewable Energy Development Assistance-

`(1) IN GENERAL- The Secretary shall make competitive grants to eligible entities to provide assistance to agricultural producers and rural small businesses--

`(A) to become more energy efficient; and

`(B) to use renewable energy technology and resources.

`(2) ELIGIBLE ENTITIES- An eligible entity under this subsection is--

`(A) a State agency;

`(B) a regional, State-based, or tribal energy organization;

`(C) a land-grant college or university or other institution of higher education;

`(D) a rural electric cooperative or public power entity;

`(E) a nonprofit organization; and

`(F) any other similar entity, as determined by the Secretary.

`(3) MERIT REVIEW-

`(A) MERIT REVIEW PROCESS- The Secretary shall establish a merit review process to review applications for grants under paragraph (1) that uses the expertise of other Federal agencies, industry, and nongovernmental organizations.

`(B) SELECTION CRITERIA- In reviewing applications of eligible entities to receive grants under paragraph (1), the Secretary shall consider--

`(i) the ability and expertise of the eligible entity in providing professional energy audits and renewable energy assessments;

`(ii) the geographic scope of the program proposed by the eligible entity in relation to the identified need;

`(iii) the number of agricultural producers and rural small businesses to be assisted by the program;

`(iv) the potential for energy savings and environmental and public health benefits resulting from the program; and

`(v) the plan of the eligible entity for providing information to agricultural producers and rural small businesses on the benefits of energy efficiency and renewable energy development.

`(4) USE OF GRANT FUNDS-

`(A) REQUIRED USES- A recipient of a grant under paragraph (1) shall use the grant funds to conduct and promote energy audits for agricultural producers and rural small businesses to provide recommendations on how to improve energy efficiency and use renewable energy technology and resources.

`(B) PERMITTED USES- In addition to the uses described in subparagraph (A), a recipient of a grant may use the grant funds to make agricultural producers and rural small businesses aware of--

`(i) financial assistance under subsection (c); and

`(ii) other Federal, State, and local financial assistance programs for which the agricultural producers and rural small businesses may be eligible.

`(5) COST SHARING- A recipient of a grant under paragraph (1) that conducts an energy audit for an agricultural producer or rural small business under paragraph (4)(A) shall require that, as a condition of the energy audit, the agricultural producer or rural small business pay at least 25 percent of the cost of the energy audit, which shall be retained by the eligible entity for the cost of the energy audit.

`(c) Financial Assistance for Energy Efficiency Improvements and Renewable Energy Systems-

`(1) IN GENERAL- In addition to any similar authority, the Secretary shall provide loan guarantees, grants, and production-based incentives to agricultural producers and rural small businesses--

`(A) to purchase renewable energy systems, including systems that may be used to produce and sell electricity; and

`(B) to make energy efficiency improvements.

`(2) AWARD CONSIDERATIONS- In determining the amount of a grant, loan guarantee, or production-based incentive provided under this section, the Secretary shall take into consideration, as applicable--

`(A) the type of renewable energy system to be purchased;

`(B) the estimated quantity of energy to be generated by the renewable energy system;

`(C) the expected environmental benefits of the renewable energy system;

`(D) the quantity of energy savings expected to be derived from the activity, as demonstrated by an energy audit comparable to an energy audit under subsection (b);

`(E) the estimated period of time for the energy savings generated by the activity to equal the cost of the activity;

`(F) the expected energy efficiency of the renewable energy system; and

`(G) other appropriate factors.

`(3) FEASIBILITY STUDIES-

`(A) IN GENERAL- The Secretary may provide assistance in the form of grants to an agricultural producer or rural small business to conduct a feasibility study for a project for which assistance may be provided under this subsection.

`(B) LIMITATION- The Secretary shall use not more than 10 percent of the funds made available to carry out this subsection to provide assistance described in subparagraph (A).

`(C) AVOIDANCE OF DUPLICATIVE ASSISTANCE- An entity shall be ineligible to receive assistance to carry out a feasibility study for a project under this paragraph if the entity has received Federal or State assistance for a feasibility study for the project.

`(4) LIMITS-

`(A) GRANTS- The amount of a grant under this subsection shall not exceed 25 percent of the cost of the activity carried out using funds from the grant.

`(B) LOAN GUARANTEES-

`(i) MAXIMUM AMOUNT- The amount of a loan guaranteed under this subsection shall not exceed $25,000,000.

`(ii) MAXIMUM PERCENTAGE- A loan guaranteed under this subsection shall not exceed 75 percent of the cost of the activity carried out using funds from the loan.

`(5) PRODUCTION-BASED INCENTIVE PAYMENTS IN LIEU OF GRANTS-

`(A) IN GENERAL- In addition to the authority under subsection (b), to encourage the production of electricity from renewable energy systems, the Secretary, on receipt of a request of an eligible applicant under this section, shall make production-based incentive payments to the applicant in lieu of a grant.

`(B) CONTINGENCY- A payment under subparagraph (A) shall be contingent on documented energy production and sales by the renewable energy system of the eligible applicant to a third party.

`(C) LIMITATION- The total net present value of a production-based incentive payment under this paragraph shall not exceed the lesser of--

`(i) an amount equal to 25 percent of the eligible project costs, as determined by the Secretary; and

`(ii) such other limit as the Secretary may establish, by rule or guidance.

`(d) Financial Assistance for Facilities To Convert Animal Manure to Energy-

`(1) DEFINITION OF ANIMAL MANURE- In this subsection, the term `animal manure' means agricultural livestock excrement, including litter, wood shavings, straw, rice hulls, bedding material, and other materials incidentally collected with the manure.

`(2) GRANTS AND LOAN GUARANTEES- The Secretary shall make grants and loan guarantees to eligible entities on a competitive basis for the installation, operation, and evaluation of facilities described in paragraph (4).

`(3) ELIGIBLE ENTITIES- To be eligible to receive a grant or loan guarantee under this subsection, an entity shall be--

`(A) an agricultural producer;

`(B) a rural small business;

`(C) a rural cooperative; or

`(D) any other similar entity, as determined by the Secretary.

`(4) ELIGIBLE FACILITIES-

`(A) IN GENERAL- Subject to subparagraphs (B) through (E), an eligible entity may receive a grant or loan guarantee under this subsection for the installation, first-year operation, and evaluation of an on-farm or community facility (such as a digester or power generator using manure for fuel) the primary function of which is to convert animal manure into a useful form of energy (including gaseous or liquid fuel or electricity).

`(B) SUBSYSTEMS INCLUDED- Funds from a grant and loan guarantee under subparagraph (A) may be used for systems that support an on-farm or community facility described in that subparagraph, which may include feedstock gathering systems and gas piping systems.

`(C) CONVERSION OF RENEWABLE BIOMASS- An eligible entity may use a grant or loan guarantee provided under this subsection to convert renewable biomass other than animal manure (such as waste materials from food processing facilities and other green wastes) into energy at a facility if the majority of materials converted into energy at the facility is animal manure.

`(D) DEVELOPMENT AND DEMONSTRATION OF NEW TECHNOLOGIES- An eligible entity may use a grant or loan guarantee provided under this subsection for the installation, demonstration, and first 2 years of operation of an on-farm or community facility that uses manure-to-energy technologies--

`(i) that are not in commercial use, as determined by the Secretary; and

`(ii) for which sufficient research has been conducted for the Secretary to determine that the technology is commercially viable.

`(5) SELECTION OF ELIGIBLE ENTITIES- In selecting applications for grants and loan guarantees under this subsection, the Secretary shall consider--

`(A) the quality of energy produced; and

`(B) the projected net energy conversion efficiency, which shall be equal to the quotient obtained by dividing--

`(i) the energy output of the eligible facility; by

`(ii) the sum of--

`(I) the energy content of animal manure at the point of collection; and

`(II) the energy consumed in facility operations, including feedstock transportation;

`(C) environmental issues, including potential positive and negative impacts on water quality, air quality, odor emissions, pathogens, and soil quality resulting from--

`(i) the use and conversion of animal manure into energy;

`(ii) the installation and operation of the facility; and

`(iii) the disposal of any waste products (including effluent) from the facility;

`(D) the net impact of the facility and any waste from the facility on greenhouse gas emissions, based on the estimated emissions from manure storage systems in use before the installation of the manure-to-energy facility;

`(E) diversity factors, including diversity of--

`(i) sizes of projects supported; and

`(ii) geographic locations; and

`(F) the proposed project costs and levels of grants or loan guarantees requested.

`(6) AMOUNT-

`(A) GRANTS-

`(i) SMALLER PROJECTS- In the case of a project with a total eligible cost (as described in paragraph (4)) of not more than $500,000, the amount of a grant made under this subsection shall not exceed 50 percent of the total eligible cost.

`(ii) LARGER PROJECTS- In the case of a project with a total eligible cost (as described in paragraph (4)) of more than $500,000, the amount of a grant made under this subsection shall not exceed the greater of--

`(I) $250,000; or

`(II) 25 percent of the total eligible cost.

`(iii) MAXIMUM- In no case shall the amount of a grant made under this section exceed $2,000,000.

`(B) LOAN GUARANTEES- The principal amount and interest of a loan guaranteed under this subsection may not exceed the lesser of--

`(i) 80 percent of the difference between--

`(I) the total cost to install and operate the eligible facility for the first year, as determined by the Secretary; and

`(II) the amount of any Federal, State, and local funds received to support the eligible facility; and

`(ii) $25,000,000.

`(7) PROHIBITION- A grant or loan guarantee may not be provided for a project under this subsection that also receives assistance under subsection (b) or (c).

`(e) Role of State Rural Development Director-

`(1) OUTREACH AND AVAILABILITY OF INFORMATION-

`(A) OUTREACH- A State rural development director, acting through local rural development offices, shall provide outreach regarding the availability of financial assistance under this section.

`(B) AVAILABILITY OF INFORMATION- A State rural development director shall make available information relating to the availability of financial assistance under this section at all local rural development, Farm Service Agency, and Natural Resources Conservation Service offices.

`(2) APPLICATION REVIEW- Applications for assistance under this section shall be reviewed by the appropriate State rural development director.

`(f) Small Projects-

`(1) APPLICATION AND REVIEW PROCESS- The Secretary shall develop a streamlined application and expedited review process for project applicants seeking less than $20,000 under this section.

`(2) PERCENTAGE OF FUNDS- Not less than 20 percent of the funds made available under subsection (k)(1) shall be made available to make grants under this section in an amount of less than $20,000.

`(g) Preference- In selecting projects to receive grants under this section, the Secretary shall give preference to projects that receive or will receive financial support from the State in which the project is carried out.

`(h) Rural Energy Star- The Secretary, in coordination with the Administrator and the Secretary of Energy, shall extend the Energy Star program established by section 324A of the Energy Policy and Conservation Act (42 U.S.C. 6294a) to include a Rural Energy Star component to promote the development and use of energy-efficient equipment and facilities in the agricultural sector.

`(i) Reports- Not later than 4 years after the date of enactment of the Food and Energy Security Act of 2007, the Secretary shall submit to Congress a report on the implementation of this section, including the outcomes achieved by projects funded under this section.

`(j) Funding-

`(1) COMMODITY CREDIT CORPORATION- Of the funds of the Commodity Credit Corporation, the Secretary shall make available $230,000,000 to carry out subsections (b), (c), and (d) for fiscal year 2008, to remain available until expended, of which--

`(A) not less than 5 percent shall be used to carry out subsection (b); and

`(B) not less than 15 percent shall be used to carry out subsection (d).

`(2) AUTHORIZATION OF APPROPRIATIONS- In addition to any other funds made available to carry out this section, there are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2012.

`SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

`(a) Definitions- In this section:

`(1) BIOBASED PRODUCT- The term `biobased product' means--

`(A) an industrial product (including chemicals, materials, and polymers) produced from biomass; and

`(B) a commercial or industrial product (including animal feed and electric power) derived in connection with the conversion of biomass to fuel.

`(2) DEMONSTRATION- The term `demonstration' means demonstration of technology in a pilot plant or semi-works scale facility, including a plant or facility located on a farm.

`(3) INITIATIVE- The term `Initiative' means the Biomass Research and Development Initiative established under subsection (e).

`(4) NATIONAL LABORATORY- The term `National Laboratory' has the meaning given that term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).

`(5) POINT OF CONTACT- The term `point of contact' means a point of contact designated under this section.

`(b) Cooperation and Coordination in Biomass Research and Development-

`(1) IN GENERAL- The Secretary of Agriculture and the Secretary of Energy shall cooperate with respect to, and coordinate, policies and procedures that promote research and development leading to the production of biofuels and biobased products.

`(2) POINTS OF CONTACT-

`(A) IN GENERAL- To coordinate research and development programs and activities relating to biofuels and biobased products that are carried out by their respective departments--

`(i) the Secretary of Agriculture shall designate, as the point of contact for the Department of Agriculture, an officer of the Department of Agriculture appointed by the President to a position in the Department before the date of the designation, by and with the advice and consent of the Senate; and

`(ii) the Secretary of Energy shall designate, as the point of contact for the Department of Energy, an officer of the Department of Energy appointed by the President to a position in the Department before the date of the designation, by and with the advice and consent of the Senate.

`(B) DUTIES- The points of contact shall jointly--

`(i) assist in arranging interlaboratory and site-specific supplemental agreements for research and development projects relating to biofuels and biobased products;

`(ii) serve as cochairpersons of the Board;

`(iii) administer the Initiative; and

`(iv) respond in writing to each recommendation of the Advisory Committee made under subsection (d).

`(c) Biomass Research and Development Board-

`(1) ESTABLISHMENT- There is established the Biomass Research and Development Board, which shall supersede the Interagency Council on Biobased Products and Bioenergy established by Executive Order No. 13134 (7 U.S.C. 8101 note), to coordinate programs within and among departments and agencies of the Federal Government for the purpose of promoting the use of biofuels and biobased products by--

`(A) maximizing the benefits deriving from Federal grants and assistance; and

`(B) bringing coherence to Federal strategic planning.

`(2) MEMBERSHIP- The Board shall consist of--

`(A) the point of contact of the Department of Energy designated under subsection (b)(2)(A)(ii), who shall serve as cochairperson of the Board;

`(B) the point of contact of the Department of Agriculture designated under subsection (b)(2)(A)(i), who shall serve as cochairperson of the Board;

`(C) a senior officer of each of the Department of the Interior, the Environmental Protection Agency, the National Science Foundation, and the Office of Science and Technology Policy, each of whom shall--

`(i) be appointed by the head of the respective agency; and

`(ii) have a rank that is equivalent to the rank of the points of contact; and

`(D) at the option of the Secretary of Agriculture and the Secretary of Energy, other members appointed by the Secretaries (after consultation with the members described in subparagraphs (A) through (C)).

`(3) DUTIES- The Board shall--

`(A) coordinate research and development activities relating to biofuels and biobased products--

`(i) between the Department of Agriculture and the Department of Energy; and

`(ii) with other departments and agencies of the Federal Government;

`(B) provide recommendations to the points of contact concerning administration of this title;

`(C) ensure that--

`(i) solicitations are open and competitive with awards made annually; and

`(ii) objectives and evaluation criteria of the solicitations are clearly stated and minimally prescriptive, with no areas of special interest; and

`(D) ensure that the panel of scientific and technical peers assembled under subsection (e) to review proposals is composed predominantly of independent experts selected from outside the Departments of Agriculture and Energy.

`(4) FUNDING- Each agency represented on the Board is encouraged to provide funds for any purpose under this section.

`(5) MEETINGS- The Board shall meet at least quarterly to enable the Board to carry out the duties of the Board under paragraph (3).

`(d) Biomass Research and Development Technical Advisory Committee-

`(1) ESTABLISHMENT- There is established the Biomass Research and Development Technical Advisory Committee, which shall supersede the Advisory Committee on Biobased Products and Bioenergy established by Executive Order No. 13134 (7 U.S.C. 8101 note)--

`(A) to advise the Secretary of Energy, the Secretary of Agriculture, and the points of contact concerning--

`(i) the distribution of funding;

`(ii) the technical focus and direction of requests for proposals issued under the Initiative; and

`(iii) procedures for reviewing and evaluating the proposals;

`(B) to facilitate consultations and partnerships among Federal and State agencies, agricultural producers, industry, consumers, the research community, and other interested groups to carry out program activities relating to the Initiative; and

`(C) to evaluate and perform strategic planning on program activities relating to the Initiative.

`(2) MEMBERSHIP-

`(A) IN GENERAL- The Advisory Committee shall consist of--

`(i) an individual affiliated with the biofuels industry;

`(ii) an individual affiliated with the biobased industrial and commercial products industry;

`(iii) an individual affiliated with an institution of higher education who has expertise in biofuels and biobased products;

`(iv) 2 prominent engineers or scientists from government or academia who have expertise in biofuels and biobased products;

`(v) an individual affiliated with a commodity trade association;

`(vi) 2 individuals affiliated with an environmental or conservation organization;

`(vii) an individual associated with State government who has expertise in biofuels and biobased products;

`(viii) an individual with expertise in energy and environmental analysis;

`(ix) an individual with expertise in the economics of biofuels and biobased products;

`(x) an individual with expertise in agricultural economics;

`(xi) an individual with expertise in plant biology and biomass feedstock development;

`(xii) an individual with expertise in agronomy, crop science, or soil science; and

`(xiii) at the option of the points of contact, other members.

`(B) APPOINTMENT- The members of the Advisory Committee shall be appointed by the points of contact.

`(3) DUTIES- The Advisory Committee shall--

`(A) advise the points of contact with respect to the Initiative; and

`(B) evaluate whether, and make recommendations in writing to the Board to ensure that--

`(i) funds authorized for the Initiative are distributed and used in a manner that is consistent with the objectives, purposes, and considerations of the Initiative;

`(ii) solicitations are open and competitive with awards made annually and that objectives and evaluation criteria of the solicitations are clearly stated and minimally prescriptive, with no areas of special interest;

`(iii) the points of contact are funding proposals under this title that are selected on the basis of merit, as determined by an independent panel of scientific and technical peers predominantly from outside the Departments of Agriculture and Energy; and

`(iv) activities under this section are carried out in accordance with this section.

`(4) COORDINATION- To avoid duplication of effort, the Advisory Committee shall coordinate the activities of the Advisory Committee with activities of other Federal advisory committees working in related areas.

`(5) MEETINGS- The Advisory Committee shall meet at least quarterly to enable the Advisory Committee to carry out the duties of the Advisory Committee.

`(6) TERMS- Members of the Advisory Committee shall be appointed for a term of 3 years.

`(e) Biomass Research and Development Initiative-

`(1) IN GENERAL- The Secretary of Agriculture and the Secretary of Energy, acting through their respective points of contact and in consultation with the Board, shall establish and carry out a Biomass Research and Development Initiative under which competitively awarded grants, contracts, and financial assistance are provided to, or entered into with, eligible entities to carry out research on, and development and demonstration of, biofuels and biobased products, and the methods, practices, and technologies, for the production of the fuels and product.

`(2) OBJECTIVES- The objectives of the Initiative are to develop--

`(A) technologies and processes necessary for abundant commercial production of biofuels at prices competitive with fossil fuels;

`(B) high-value biobased products--

`(i) to enhance the economic viability of biofuels and bioenergy;

`(ii) as substitutes for petroleum-based feedstocks and products; and

`(iii) to enhance the value of coproducts produced using the technologies and processes; and

`(C) a diversity of sustainable domestic sources of renewable biomass for conversion to biofuels, bioenergy, and biobased products.

`(3) PURPOSES- The purposes of the Initiative are--

`(A) to increase the energy security of the United States;

`(B) to create jobs and enhance the economic development of the rural economy;

`(C) to enhance the environment and public health; and

`(D) to diversify markets for raw agricultural and forestry products.

`(4) TECHNICAL AREAS- To advance the objectives and purposes of the Initiative, the Secretary of Agriculture and the Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency and heads of other appropriate departments and agencies (referred to in this subsection as the `Secretaries'), shall direct research, development, and demonstration toward--

`(A) feedstocks and feedstock systems relevant to production of raw materials for conversion to biofuels and biobased products, including--

`(i) development of advanced and dedicated crops with desired features, including enhanced productivity, broader site range, low requirements for chemical inputs, and enhanced processing;

`(ii) advanced crop production methods to achieve the features described in clause (i) and suitable assay techniques for those features;

`(iii) feedstock harvest, handling, transport, and storage;

`(iv) strategies for integrating feedstock production into existing managed land; and

`(v) improving the value and quality of coproducts, including material used for animal feeding;

`(B) development of cost-effective technologies for the use of cellulosic biomass in the production of biofuels and biobased products, including--

`(i) pretreatment in combination with enzymatic or microbial hydrolysis;

`(ii) thermochemical approaches, including gasification and pyrolysis; and

`(iii) self-processing crops that express enzymes capable of degrading cellulosic biomass;

`(C) product diversification through technologies relevant to production of a range of biobased products (including chemicals, animal feeds, and cogenerated power) that eventually can increase the feasibility of fuel production in a biorefinery, including--

`(i) catalytic processing, including thermochemical fuel production;

`(ii) metabolic engineering, enzyme engineering, and fermentation systems for biological production of desired products, coproducts, or cogeneration of power;

`(iii) product recovery;

`(iv) power production technologies, including distributed generation;

`(v) integration into existing renewable biomass processing facilities, including starch ethanol plants, sugar processing or refining plants, paper mills, and power plants;

`(vi) enhancement of products and coproducts, including dried distillers grains; and

`(vii) technologies that allow for cost-effective harvest, handling, transport, and storage; and

`(D) analysis that provides strategic guidance for the application of renewable biomass technologies in accordance with realization of improved sustainability and environmental quality, cost effectiveness, security, and rural economic development, usually featuring system-wide approaches, including the harvest, handling, transport, and storage of renewable biomass.

`(5) ADDITIONAL CONSIDERATIONS- Within the technical areas described in paragraph (4), and in addition to advancing the purposes described in paragraph (3) and the objectives described in paragraph (2), the Secretaries shall support research and development--

`(A) to create continuously expanding opportunities for participants in existing biofuels production by seeking synergies and continuity with current technologies and practices, such as improvements in dried distillers grains and other biofuel production coproducts for use as bridge feedstocks;

`(B) to maximize the environmental, economic, and social benefits of production of biofuels and biobased products on a large scale through life-cycle economic and environmental analysis and other means; and

`(C) to assess the potential of Federal land and land management programs as feedstock resources for biofuels and biobased products, consistent with the integrity of soil and water resources and with other environmental considerations.

`(6) ELIGIBLE ENTITIES- To be eligible for a grant, contract, or assistance under this subsection, an applicant shall be--

`(A) an institution of higher education;

`(B) a National Laboratory;

`(C) a Federal research agency;

`(D) a State research agency;

`(E) a private sector entity;

`(F) a nonprofit organization; or

`(G) a consortium of 2 or more entities described in subparagraphs (A) through (F).

`(7) ADMINISTRATION-

`(A) IN GENERAL- After consultation with the Board, the points of contact shall--

`(i) publish annually 1 or more joint requests for proposals for grants, contracts, and assistance under this subsection;

`(ii) require that grants, contracts, and assistance under this section be awarded competitively, on the basis of merit, after the establishment of procedures that provide for scientific peer review by an independent panel of scientific and technical peers;

`(iii) give partial preference to applications that--

`(I) involve a consortia of experts from multiple institutions;

`(II) encourage the integration of disciplines and application of the best technical resources; and

`(III) increase the geographic diversity of demonstration projects; and

`(iv) require that not less than 15 percent of funds made available to carry out this section is used for research and development relating to each of the technical areas described in paragraph (4).

`(B) MATCHING FUNDS-

`(i) IN GENERAL- The non-Federal share of the cost of a demonstration project under this section shall be not less than 20 percent.

`(ii) COMMERCIAL APPLICATIONS- The non-Federal share of the cost of a commercial application project under this section shall be not less than 50 percent.

`(C) TECHNOLOGY AND INFORMATION TRANSFER TO AGRICULTURAL USERS- The Administrator of the National Institute of Food and Agriculture and the Chief of the Natural Resources Conservation Service shall ensure that applicable research results and technologies from the Initiative are--

`(i) adapted, made available, and disseminated through those services, as appropriate; and

`(ii) included in the best practices database established under section 220 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6920).

`(f) Administrative Support and Funds-

`(1) IN GENERAL- To the extent administrative support and funds are not provided by other agencies under paragraph (2), the Secretary of Energy and the Secretary of Agriculture may provide such administrative support and funds of the Department of Energy and the Department of Agriculture to the Board and the Advisory Committee as are necessary to enable the Board and the Advisory Committee to carry out their duties under this section.

`(2) OTHER AGENCIES- The heads of the agencies referred to in subsection (c)(2)(C), and the other members of the Board appointed under subsection (c)(2)(D), may, and are encouraged to, provide administrative support and funds of their respective agencies to the Board and the Advisory Committee.

`(3) LIMITATION- Not more than 4 percent of the amount made available for each fiscal year under subsection (h) may be used to pay the administrative costs of carrying out this section.

`(g) Reports-

`(1) ANNUAL REPORTS- For each fiscal year for which funds are made available to carry out this section, the Secretary of Energy and the Secretary of Agriculture shall jointly submit to Congress a detailed report on--

`(A) the status and progress of the Initiative, including a report from the Advisory Committee on whether funds appropriated for the Initiative have been distributed and used in a manner that--

`(i) is consistent with the objectives, purposes, and additional considerations described in paragraphs (2) through (5) of subsection (e);

`(ii) uses the set of criteria established in the initial report submitted under title III of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 7624 note; Public Law 106-224) (as in effect on the date before the date of enactment of the Food and Energy Security Act of 2007); and

`(iii) takes into account any recommendations that have been made by the Advisory Committee;

`(B) the general status of cooperation and research and development efforts carried out at each agency with respect to biofuels and biobased products, including a report from the Advisory Committee on whether the points of contact are funding proposals that are selected under subsection (d)(3)(B)(iii); and

`(C) the plans of the Secretary of Energy and the Secretary of Agriculture for addressing concerns raised in the report, including concerns raised by the Advisory Committee.

`(2) UPDATES- The Secretary of Agriculture and the Secretary of Energy shall update the Vision and Roadmap documents prepared for Federal biomass research and development activities.

`(h) Funding-

`(1) COMMODITY CREDIT CORPORATION FUNDS- Of the funds of the Commodity Credit Corporation, the Secretary of Agriculture, to the maximum extent practicable, shall use to carry out this section, to remain available until expended--

`(A) $15,000,000 for fiscal year 2008;

`(B) $25,000,000 for fiscal year 2009; and

`(C) $35,000,000 for fiscal year 2010.

`(2) ADDITIONAL FUNDING- In addition to amounts described in paragraph (1), there is authorized to be appropriated to carry out this section $85,000,000 for each of fiscal years 2008 through 2012.

`SEC. 9009. SUN GRANT PROGRAM.

`(a) Purposes- The purposes of the programs established under this section are--

`(1) to enhance national energy security through the development, distribution, and implementation of biobased energy technologies;

`(2) to promote diversification in, and the environmental sustainability of, agricultural production in the United States through biobased energy and product technologies;

`(3) to promote economic diversification in rural areas of the United States through biobased energy and product technologies; and

`(4) to enhance the efficiency of bioenergy and biomass research and development programs through improved coordination and collaboration between the Department of Agriculture, the Department of Energy, and the land-grant colleges and universities.

`(b) Definition of Land-Grant Colleges and Universities- The term `land-grant colleges and universities' means--

`(1) 1862 Institutions (as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7601));

`(2) 1890 Institutions (as defined in section 2 of that Act) and West Virginia State College; and

`(3) 1994 Institutions (as defined in section 2 of that Act).

`(c) Establishment- To carry out the purposes described in subsection (a), the Secretary shall provide grants to sun grant centers specified in subsection (d).

`(d) Grants to Centers- The Secretary shall use amounts made available for a fiscal year under subsection (j) to provide a grants in equal amounts to each of the following sun grant centers:

`(1) NORTH-CENTRAL CENTER- A north-central sun grant center at South Dakota State University for the region composed of the States of Illinois, Indiana, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming.

`(2) SOUTHEASTERN CENTER- A southeastern sun grant center at the University of Tennessee at Knoxville for the region composed of--

`(A) the States of Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia;

`(B) the Commonwealth of Puerto Rico; and

`(C) the United States Virgin Islands.

`(3) SOUTH-CENTRAL CENTER- A south-central sun grant center at Oklahoma State University for the region composed of the States of Arkansas, Colorado, Kansas, Louisiana, Missouri, New Mexico, Oklahoma, and Texas.

`(4) WESTERN CENTER- A western sun grant center at Oregon State University for the region composed of--

`(A) the States of Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington; and

`(B) territories and possessions of the United States (other than the territories referred to in subparagraphs (B) and (C) of paragraph (2)).

`(5) NORTHEASTERN CENTER- A northeastern sun grant center at Cornell University for the region composed of the States of Connecticut, Delaware, Massachusetts, Maryland, Maine, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, and West Virginia.

`(6) WESTERN INSULAR PACIFIC SUBCENTER- A western insular Pacific subcenter at the University of Hawaii for the region composed of the State of Alaska, the State of Hawaii, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau.

`(e) Use of Funds-

`(1) CENTERS OF EXCELLENCE- Of the amount of funds that are made available for a fiscal year to a sun grant center under subsection (d), the center shall use not more than 25 percent of the amount to support excellence in science, engineering, and economics at the center to promote the purposes described in subsection (a) through the State agricultural experiment station, cooperative extension services, and relevant educational programs of the university.

`(2) GRANTS TO LAND-GRANT COLLEGES AND UNIVERSITIES-

`(A) IN GENERAL- The sun grant center established for a region shall use the funds that remain available for a fiscal year after expenditures made under paragraph (1) to provide competitive grants to land-grant colleges and universities in the region of the sun grant center to conduct, consistent with the purposes described in subsection (a), multi-institutional and multistate--

`(i) research, extension, and educational programs on technology development; and

`(ii) integrated research, extension, and educational programs on technology implementation.

`(B) PROGRAMS- Of the amount of funds that are used to provide grants for a fiscal year under subparagraph (A), the center shall use--

`(i) not less than 30 percent of the funds to carry out programs described in subparagraph (A)(i); and

`(ii) not less than 30 percent of the funds to carry out programs described in subparagraph (A)(ii).

`(3) INDIRECT COSTS- A sun grant center may not recover the indirect costs of making grants under paragraph (2) to other land-grant colleges and universities.

`(f) Plan-

`(1) IN GENERAL- Subject to the availability of funds under subsection (j), in cooperation with other land-grant colleges and universities and private industry in accordance with paragraph (2), the sun grant centers shall jointly develop and submit to the Secretary, for approval, a plan for addressing at the State and regional levels the bioenergy, biomass, and gasification research priorities of the Department of Agriculture and the Department of Energy for the making of grants under paragraphs (1) and (2) of subsection (e).

`(2) GASIFICATION COORDINATION-

`(A) IN GENERAL- In developing the plan under paragraph (1) with respect to gasification research, the sun grant centers identified in paragraphs (1) and (2) of subsection (d) shall coordinate with land grant colleges and universities in their respective regions that have ongoing research activities with respect to the research.

`(B) FUNDING- Funds made available under subsection (d) to the sun grant center identified in subsection (e)(2) shall be available to carry out planning coordination under paragraph (1) of this subsection.

`(g) Grants to Other Land-Grant Colleges and Universities-

`(1) PRIORITY FOR GRANTS- In making grants under subsection (e)(2), a sun grant center shall give a higher priority to programs that are consistent with the plan approved by the Secretary under subsection (f).

`(2) TERM OF GRANTS- The term of a grant provided by a sun grant center under subsection (e)(2) shall not exceed 5 years.

`(h) Grant Information Analysis Center- The sun grant centers shall maintain a Sun Grant Information Analysis Center at the sun grant center specified in subsection (d)(1) to provide sun grant centers analysis and data management support.

`(i) Annual Reports- Not later than 90 days after the end of a year for which a sun grant center receives a grant under subsection (d), the sun grant center shall submit to the Secretary a report that describes the policies, priorities, and operations of the program carried out by the center during the year, including a description of progress made in facilitating the priorities described in subsection (f).

`(j) Funding-

`(1) COMMODITY CREDIT CORPORATION- Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section, to remain available until expended--

`(A) $5,000,000 for fiscal year 2008;

`(B) $10,000,000 for fiscal year 2009; and

`(C) $10,000,000 for fiscal year 2010.

`(2) AUTHORIZATION OF APPROPRIATIONS-

`(A) IN GENERAL- In addition to any other funds made available to carry out this section, there is authorized to be appropriated to carry out this section $70,000,000 for each of fiscal years 2008 through 2012.

`(B) GRANT INFORMATION ANALYSIS CENTER- Of amounts made available under subparagraph (A), not more than $4,000,000 for each fiscal year shall be made available to carry out subsection (h).

`SEC. 9010. REGIONAL BIOMASS CROP EXPERIMENTS.

`(a) Purpose- The purpose of this section is to initiate multi-region side-by-side crop experiments to provide a sound knowledge base on all aspects of the production of biomass energy crops, including crop species, nutrient requirements, management practices, environmental impacts, greenhouse gas implications, and economics.

`(b) Crop Experiments-

`(1) IN GENERAL- The Secretary, in consultation with the Board, based on the recommendations of the Advisory Committee, shall award 10 competitive grants to land-grant colleges and universities (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)) to establish regional biomass crop research experiments (including experiments involving annuals, perennials, and woody biomass species).

`(2) SELECTION OF GRANT RECIPIENTS- Grant recipients shall be selected on the basis of applications submitted in accordance with guidelines issued by the Secretary.

`(3) SELECTION CRITERIA- In selecting grant recipients, the Secretary shall consider--

`(A) the capabilities and experience of the applicant, including--

`(i) in conducting side-by-side crop experiments;

`(ii) engineering and research knowledge and experience relating to biofuels or the production of inputs for biofuel production; and

`(iii) demonstrated willingness to contribute significant in-kind resources;

`(B) the range of species types and cropping practices proposed for study;

`(C) the quality of the proposed crop experiment plan;

`(D) the commitment of the applicant of adequate acreage and necessary resources for, and continued participation in, the crop experiments;

`(E) the need for regional diversity among the 10 institutions selected; and

`(F) such other factors as the Secretary may determine.

`(c) Grants- The Secretary shall make a grant to each land-grant college or university selected under subsection (b) in the amount of--

`(1) $1,000,000 for fiscal year 2008;

`(2) $2,000,000 for fiscal year 2009; and

`(3) $1,000,000 for fiscal year 2010.

`(d) Coordination- The Secretary shall coordinate with participants under this section--

`(1) to provide coordination regarding biomass crop research approaches; and

`(2) to ensure coordination between biomass crop research activities carried out by land-grant colleges and universities under this section and by sun grant centers under section 9009.

`(e) Funding-

`(1) COMMODITY CREDIT CORPORATION- Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section, to remain available until expended--

`(A) $10,000,000 for fiscal year 2008;

`(B) $20,000,000 for fiscal year 2009; and

`(C) $10,000,000 for fiscal year 2010.

`(2) AUTHORIZATION OF APPROPRIATIONS- In addition to any other funds made available to carry out this section, there are authorized to be appropriated such sums are necessary to carry out this section for each of fiscal years 2008 through 2012.

`SEC. 9011. NEW CENTURY FARM PROJECT.

`There is authorized to be appropriated to the Secretary to support the development and operation of an integrated and sustainable biomass, feedstock, and biofuels production system to serve as a model for a new century farm $15,000,000 for the period of fiscal years 2008 through 2012, to remain available until expended.

`SEC. 9012. BIOCHAR RESEARCH, DEVELOPMENT, AND DEMONSTRATION.

`(a) Purpose- The purpose of this section is to support research, development, and demonstration of biochar as a coproduct of bioenergy production, as a soil enhancement practice, and as a carbon management strategy.

`(b) Definition of Biochar- In this section, the term `biochar' means charcoal or biomass-derived black carbon that is added to soil to improve soil fertility, nutrient retention, and carbon content.

`(c) Grants- The Secretary shall award competitive grants to eligible entities to support biochar research, development, and demonstration projects on multiple scales, including laboratory biochar research and field trials, and biochar systems on a single farm scale, local community scale, and agricultural cooperative scale.

`(d) Eligible Entities- To be eligible to receive a grant under this section, an entity shall be an eligible entity described in section 9005(d).

`(e) Areas of Biochar Research, Development, and Demonstration- In carrying out this section, the Secretary shall solicit proposals for activities that include--

`(1) the installation and use of biochar production systems, including pyrolysis and thermocombustion systems, and the integration of biochar production with bioenergy and bioproducts production;

`(2) the study of agronomic effects of biochar usage in soils, including plant growth and yield effects for different application rates and soil types, and implications for water and fertilizer needs;

`(3) biochar characterization, including analysis of physical properties, chemical structure, product consistency and quality, and the impacts of those properties on the soil-conditioning effects of biochar in different soil types;

`(4) the study of effects of the use of biochar on the carbon content of soils, with an emphasis on the potential for biochar applications to sequester carbon;

`(5) the study of effects of biochar on greenhouse gas emissions relating to crop production, including nitrous oxide and carbon dioxide emissions from cropland;

`(6) the study of the integration of renewable energy and bioenergy production with biochar production;

`(7) the study of the economics of biochar production and use, including considerations of feedstock competition, synergies of coproduction with bioenergy, the value of soil enhancements, and the value of soil carbon sequestration; and

`(8) such other topics as are identified by the Secretary.

`(f) Funding- There is authorized to be appropriated to carry out this section $3,000,000 for each of fiscal years 2008 through 2012.

`SEC. 9013. RENEWABLE WOODY BIOMASS FOR ENERGY.

`(a) In General- The Secretary, acting through the Chief of the Forest Service (referred to in this section as the `Secretary'), shall conduct a competitive research, technology development, and technology application program to encourage the use of renewable woody biomass for energy.

`(b) Eligible Entities- Entities eligible to compete under the program shall include--

`(1) the Forest Service (through Research and Development);

`(2) other Federal agencies;

`(3) State and local governments;

`(4) federally recognized Indian tribes;

`(5) colleges and universities; and

`(6) private entities.

`(c) Priority for Project Selection- The Secretary shall give priority under the program to projects that--

`(1) develop technology and techniques to use low-value woody biomass sources, such as byproducts of forest health treatments and hazardous fuels reduction, for the production of energy;

`(2) develop processes that integrate production of energy from woody biomass into biorefineries or other existing manufacturing streams;

`(3) develop new transportation fuels from woody biomass; and

`(4) improve the growth and yield of trees intended for renewable energy production.

`(d) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2008 through 2012.

`SEC. 9014. COMMUNITY WOOD ENERGY PROGRAM.

`(a) Definitions- In this section:

`(1) COMMUNITY WOOD ENERGY PLAN- The term `community wood energy plan' means a plan that identifies how local forests can be accessed in a sustainable manner to help meet the wood supply needs of a community wood energy system.

`(2) COMMUNITY WOOD ENERGY SYSTEM-

`(A) IN GENERAL- The term `community wood energy system' means an energy system that--

`(i) services schools, town halls, libraries, and other public buildings; and

`(ii) uses woody biomass as the primary fuel.

`(B) INCLUSIONS- The term `community wood energy system' includes single facility central heating, district heating, combined heat and energy systems, and other related biomass energy systems.

`(b) Grant Program-

`(1) IN GENERAL- The Secretary, acting through the Chief of the Forest Service, shall establish a program to be known as the `Community Wood Energy Program' to provide--

`(A) grants of up to $50,000 to State and local governments (or designees)--

`(i) to conduct feasibility studies related to community wood energy plans; and

`(ii) to develop community wood energy plans; and

`(B) competitive grants to State and local governments--

`(i) to acquire or upgrade community wood energy systems for public buildings; and

`(ii) to implement a community wood energy plan.

`(2) CONSIDERATIONS- In selecting applicants for grants under paragraph (1)(B), the Secretary shall consider--

`(A) the energy efficiency of the proposed system; and

`(B) other conservation and environmental criteria that the Secretary considers appropriate.

`(c) Community Wood Energy Plan-

`(1) IN GENERAL- A State or local government that receives a grant under subsection (b)(1)(A), shall use the grant, and the technical assistance of the State forester, to create a community wood energy plan to meet the wood supply needs of the community wood energy system, in a sustainable manner, that the State or local government proposes to purchase under this section.

`(2) USE OF PLAN- A State or local government applying to receive a competitive grant described in subsection (b)(1)(B) shall submit to the Secretary as part of the grant application the applicable community wood energy plan described in paragraph (1).

`(3) REQUIREMENT- To be included in a community wood energy plan, property shall be subject to a forest management plan.

`(d) Use in Public Buildings- A State or local government that receives a grant under subsection (b)(1)(B) shall use a community wood energy system acquired, in whole or in part, with the use of the grant funds for primary use in a public facility owned by the State or local government.

`(e) Limitation- A community wood energy system acquired with grant funds provided under subsection (b)(1)(B) shall not exceed an output of--

`(1) 50,000,000 Btu per hour for heating; and

`(2) 2 megawatts for electric power production.

`(f) Matching Funds- A State or local government that receives a grant under subsection (b) shall contribute an amount of non-Federal funds towards the feasibility study, development of the community wood energy plan, or acquisition of the community wood energy systems that is at least equal to the amount of grant funds received by the State or local government under that subsection.

`(g) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2008 through 2012.

`SEC. 9015. RURAL ENERGY SYSTEMS RENEWAL.

`(a) Purpose- The purpose of this section is to establish a Federal program--

`(1) to encourage communities in rural areas of the United States to establish energy systems renewal strategies for their communities;

`(2) to provide the information, analysis assistance, and guidance that the communities need; and

`(3) to provide financial resources to partially fund the costs of carrying out community energy systems renewal projects.

`(b) Program Authority- The Secretary shall establish and carry out a program of competitive grants to support communities in rural areas in carrying out rural energy systems renewal projects.

`(c) Use of Grants- A community may use a grant provided under this section to carry out a project--

`(1) to conduct an energy assessment that assesses total energy usage by all members and activities of the community, including an assessment of--

`(A) energy used in community facilities, including energy for heating, cooling, lighting, and all other building and facility uses;

`(B) energy used in transportation by community members;

`(C) current sources and types of energy used;

`(D) energy embedded in other materials and products;

`(E) the major impacts of the energy usage (including the impact on the quantity of oil imported, total costs, the environment, and greenhouse gas emissions); and

`(F) such other activities as are determined appropriate by the community, consistent with the purposes described in subsection (a);

`(2) to formulate and analyze ideas for reducing conventional energy usage and greenhouse gas emissions by the community, including reduction of energy usage through--

`(A) housing insulation, automatic controls on lighting and electronics, zone energy usage, and home energy conservation practices;

`(B) transportation alternatives, vehicle options, transit options, transportation conservation, and walk- and bike-to-school programs;

`(C) community configuration alternatives to provide pedestrian access to regular services; and

`(D) community options for alternative energy systems (including alternative fuels, photovoltaic electricity, wind energy, geothermal heat pump systems, and combined heat and power);

`(3) to formulate and implement community strategies for reducing conventional energy usage and greenhouse gas emissions by the community;

`(4) to conduct assessments and to track and record the results of energy system changes; and

`(5) to train rural community energy professionals to provide expert support to community energy systems renewal projects.

`(d) Federal Share- The Federal cost of carrying out a project under this section shall be 50 percent of the total cost of the project.

`(e) Administration- The Secretary shall--

`(1) issue, an annual basis, requests for proposals from communities in rural areas for energy systems renewal projects; and

`(2) in consultation with the Secretary of Energy and the Secretary of Transportation, as appropriate, establish criteria for program participation and evaluation of projects carried out under this section, including criteria based on--

`(A) the quality of the renewal projects proposed;

`(B) the probability of success of the community in meeting the energy systems renewal goals of the community;

`(C) the projected energy savings (including oil savings) resulting from the proposed projects; and

`(D) projected greenhouse gas emission reductions resulting from the proposed projects.

`(f) Technical Assistance- The Secretary, in consultation with the Secretary of Energy and the Secretary of Transportation, shall--

`(1) develop, and provide through the National Institute of Food and Agriculture or State Energy Offices, information and tools that communities in rural areas can use--

`(A) to assess the current energy systems of the communities, including sources, uses, and impacts;

`(B) to identify and evaluate options for changes;

`(C) to develop strategies and plans for changes; and

`(D) to implement changes and assess the impact of the changes; and

`(2) provide technical assistance and support to communities in rural areas that receive grants under this section to assist the communities in carrying out projects under this section.

`(g) Report- Not later than December 31, 2011, and biennially thereafter, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry, the Committee on Commerce, Science, and Transportation, and the Committee on Energy and Natural Resources of the Senate a report that documents the best practices and approaches used by communities in rural areas that receive funds under this section.

`(h) Authorization of Appropriations- There is authorized to be appropriated to the Secretary to make grants under this section $5,000,000 for each of fiscal years 2008 through 2012.

`SEC. 9016. VOLUNTARY RENEWABLE BIOMASS CERTIFICATION PROGRAM.

`(a) Establishment- The Secretary, in consultation with Administrator, shall establish a voluntary program to certify renewable biomass that meets sustainable growing standards designed--

`(1) to reduce greenhouse gases and improve soil carbon content;

`(2) to protect wildlife habitat, and

`(3) to protect air, soil, and water quality.

`(b) Voluntary Certification Requirements- To qualify for certification under the program established under subsection (a), a biomass crop shall be inspected and certified as meeting the standards adopted under subsection (c) by an inspector designated under subsection (d).

`(c) Production Standards-

`(1) IN GENERAL- The Secretary shall adopt standards for the certification of renewable biomass under subsection (b) that will apply to those producers who elect to participate in the voluntary certification program.

`(2) REQUIREMENT- The standards under paragraph (1) shall provide measurement of a numerical reduction in greenhouse gases, improvement to soil carbon content, and reduction in soil and water pollutants, based on the recommendations of an advisory committee jointly established by the Secretary and the Administrator.

`(d) Inspectors- The Secretary shall designate inspectors that the Secretary determines are qualified to carry out inspections and certifications under subsection (b) in order to certify renewable biomass under this section.

`(e) Designation- A product produced from renewable biomass that is certified under this section may be designated as having been produced from certified renewable biomass if--

`(1) the producer of the product verifies that the product was produced from renewable biomass; and

`(2) the verification includes a copy of the certification obtained in accordance with subsection (b).

`SEC. 9017. ADMINISTRATION.

`The Secretary shall designate an entity within the Department of Agriculture to--

`(1) provide oversight and coordination of all activities relating to renewable energy and biobased product development within the Department;

`(2) act as a liaison between the Department and other Federal, State, and local agencies to ensure coordination among activities relating to renewable energy and biobased product development;

`(3) assist agriculture researchers by evaluating the market potential of new biobased products in the initial phase of development;

`(4) collect and disseminate information relating to renewable energy and biobased product development programs, including research, within the Federal Government; and

`(5) establish and maintain a public database of best practices to facilitate information sharing relating to--

`(A) renewable energy and biobased product development from programs under this title and other programs; and

`(B) best practices for producing, collecting, harvesting, storing, and transporting crops of renewable biomass, as described under section 9004(d)(3)(B) of the Farm Security and Rural Investment Act of 2002.

`SEC. 9018. BIOFUELS INFRASTRUCTURE STUDY.

`(a) In General- The Secretary, in collaboration with the Secretary of Energy, the Administrator, and the Secretary of Transportation, shall--

`(1) conduct an assessment of the infrastructure needs for expanding the domestic production, transport, and marketing of biofuels and bioenergy;

`(2) formulate recommendations for infrastructure development needs and approaches; and

`(3) submit a report describing the assessment and recommendations to--

`(A) the Committee on Agriculture, Nutrition, and Forestry of the Senate;

`(B) the Committee on Commerce, Science, and Transportation of the Senate;

`(C) the Committee on Energy and Natural Resources of the Senate; and

`(D) the Committee on Environment and Public Works of the Senate.

`(b) Infrastructure Areas- In carrying out subsection (a), the Secretary shall consider--

`(1) biofuel transport and delivery infrastructure issues, including shipment by rail, truck, pipeline, or barge;

`(2) biofuel storage needs;

`(3) biomass feedstock delivery needs, including adequacy of rural roads;

`(4) biomass feedstock storage needs;

`(5) water resource needs, including water requirements for biorefineries;

`(6) education and outreach for agricultural producers transitioning to cellulosic feedstocks; and

`(7) such other infrastructure issues as the Secretary may determine.

`(c) Considerations- In carrying out subsection (a), the Secretary shall consider--

`(1) estimated future biofuels production levels of--

`(A) 20,000,000,000 gallons per year to 40,000,000,000 gallons per year by 2020; and

`(B) 50,000,000,000 gallons per year to 75,000,000,000 gallons per year by 2030;

`(2) the feasibility of shipping biofuels through existing pipelines;

`(3) the development of new biofuels pipelines, including siting, financing, timing, and other economic issues;

`(4) the environmental implications of alternative approaches to infrastructure development;

`(5) the resource use and conservation characteristics of alternative approaches to infrastructure development;

`(6) the impact on the development of renewable energy when public and private utilities do not pay competitive rates for wind, solar, and biogas energy from agricultural sources; and

`(7) the environmental benefits of planting perennial grasses for the production of cellulosic ethanol.

`(d) Implementation- In carrying out this section, the Secretary--

`(1) shall consult with individuals and entities with interest or expertise in the areas described in subsections (b) and (c); and

`(2) may issue a solicitation for a competition to select a contractor to support the Secretary.

`(e) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2008 and 2009.

`SEC. 9019. RURAL NITROGEN FERTILIZER STUDY.

`(a) Purposes- The purposes of this section are--

`(1) to assess the feasibility of producing nitrogen fertilizer from renewable energy resources in rural areas; and

`(2) to formulate recommendations for a program to promote rural nitrogen fertilizer production from renewable energy resources in the future.

`(b) Study- The Secretary shall--

`(1) conduct a study to assess and summarize the current state of knowledge regarding the potential for the production of nitrogen fertilizer from renewable energy sources in rural areas;

`(2) identify the critical challenges to commercialization of rural production of nitrogen fertilizer from renewables; and

`(3) not later than 270 days after the date of enactment of this section, submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry and the Committee on Commerce, Science, and Transportation of the Senate a report that summarizes the results of the activities described in paragraphs (1) and (2).

`(c) Needs-

`(1) IN GENERAL- Based on the results of the study described in subsection (b), the Secretary shall identify the critical needs to commercializing the rural production of nitrogen fertilizer from renewables, including--

`(A) identifying alternative processes for renewables-to-nitrogen fertilizer production;

`(B) identifying efficiency improvements that are necessary for each component of renewables-to-nitrogen fertilizer production processes to produce cost-competitive nitrogen fertilizer;

`(C) identifying research and technology priorities for the most promising technologies;

`(D) identifying economic analyses needed to better understand the commercial potential of rural nitrogen production from renewables;

`(E) identifying additional challenges impeding commercialization, including--

`(i) cost competition from nitrogen fertilizer produced using natural gas and coal;

`(ii) modifications or expansion needed to the currently-installed nitrogen fertilizer (anhydrous ammonia) pipeline and storage tank system to enable interconnection of on-farm or rural renewables-to-nitrogen fertilizer systems;

`(iii) impact on nitrogen fertilizer (anhydrous ammonia) transportation infrastructure, safety, and security;

`(iv) supply of competitively-priced renewable electricity; and

`(v) impacts on domestic water supplies; and

`(F) determining greenhouse gas reduction benefits of producing nitrogen fertilizer from renewable energy.

`(d) Program Recommendations- As part of the report described in subsection (b)(3) and based on the needs identified in subsection (c), the Secretary shall provide recommendations on--

`(1) the establishment of a research, development, and demonstration program to support commercialization of rural nitrogen production using renewables;

`(2) the appropriate contents of the program;

`(3) the appropriate approach to implementing the program, including participants and funding plans; and

`(4) legislation to support commercialization of rural nitrogen production using renewables.

`(e) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $1,000,000 for fiscal year 2008.

`SEC. 9020. STUDY OF LIFE-CYCLE ANALYSIS OF BIOFUELS.

`(a) In General- The Secretary, in consultation with the Secretary of Energy and the Administrator, shall conduct a study of--

`(1) published methods for evaluating the lifecycle greenhouse gas emissions of conventional fuels and biofuels; and

`(2) methods for performing simplified, streamlined lifecycle analyses of the greenhouse gas emissions of conventional fuels and biofuels.

`(b) Report- Not later than 1 year after the date of enactment of this section, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that describes the results of the study conducted under subsection (a), including recommendations for a method for performing a simplified, streamlined lifecycle analysis of the greenhouse gas emissions of biofuels and fossil fuels that includes--

`(1) greenhouse gas emissions relating to the production, extraction, transportation, storage, and waste disposal of the fuels and the feedstocks of the fuels, including the greenhouse gases associated with electrical and thermal energy inputs;

`(2) greenhouse gas emissions relating to the distribution, marketing, and use of the fuels; and

`(3) to the maximum extent practicable, direct and indirect greenhouse gas emissions from changes in land use and land cover that occur domestically or internationally as a result of biofuel feedstock production.

`(c) Update- Not later than 2 years after the date on which the Secretary submits the report under subsection (b), the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an update containing recommendations for an improved method for conducting lifecycle analysis of the greenhouse gas emissions of biofuels and fossil fuels that takes into account advances in the understanding of the emissions.

`SEC. 9021. E-85 FUEL PROGRAM.

`(a) Definitions- In this section:

`(1) E-85 fuel- The term `E-85 fuel' means a blend of gasoline at least 85 percent (or any other percentage, but not less than 70 percent, as determined by the Secretary, by rule, to provide for requirements relating to cold start, safety, or vehicle functions) of the content of which is derived from ethanol.

`(2) ELIGIBLE FACILITY- The term `eligible facility' means an ethanol production facility, the majority ownership of which is comprised of agricultural producers.

`(b) Program- The Secretary shall make grants under this section to eligible facilities--

`(1) to install E-85 fuel infrastructure, including infrastructure necessary--

`(A) for the direct retail sale of E-85 fuel, including E-85 fuel pumps and storage tanks; and

`(B) to directly market E-85 fuel to gas retailers, including in-line blending equipment, pumps, storage tanks, and load-out equipment; and

`(2) to provide subgrants to direct retailers of E-85 fuel that are located in a rural area (as defined in section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a))) for the purpose of installing E-85 fuel infrastructure for the direct retail sale of E-85 fuel, including E-85 fuel pumps and storage tanks.

`(c) Cost Sharing-

`(1) GRANTS- The amount of a grant under this section shall be equal to 20 percent of the total costs of the installation of the E-85 fuel infrastructure, as determined by the Secretary.

`(2) RELATIONSHIP TO OTHER FEDERAL FUNDING- The amount of a grant that an eligible facility receives under this section shall be reduced by the amount of other Federal funding that the eligible facility receives for the same purpose, as determined by the Secretary.

`(3) LIMITATION- Not more than 70 percent of the total costs of E-85 fuel infrastructure provided assistance under this section shall be provided by the Federal Government and State and local governments.

`(d) Authorization of Appropriations- Subject to the availability of appropriations, there is authorized to be appropriated to carry out this section $20,000,000 for the period of fiscal years 2008 through 2012, to remain available until expended.

`SEC. 9022. RESEARCH AND DEVELOPMENT OF RENEWABLE ENERGY.

`(a) In General- The Secretary, in conjunction with the Colorado Renewable Energy Collaboratory, shall carry out a research and development program relating to renewable energy--

`(1) to conduct research on and develop high-quality energy crops that--

`(A) have high energy production values;

`(B) are cost efficient for producers and refiners;

`(C) are well suited to high yields with minimal inputs in arid and semiarid regions; and

`(D) are regionally appropriate;

`(2) to conduct research on and develop biorefining and biofuels through multidisciplinary research, including research relating to--

`(A) biochemical engineering;

`(B) process engineering;

`(C) thermochemical engineering;

`(D) product engineering; and

`(E) systems engineering;

`(3) to develop cost-effective methods for the harvesting, handling, transport, and storage of cellulosic biomass feedstocks;

`(4) to conduct research on and develop fertilizers from biobased sources other than hydrocarbon fuels;

`(5) to develop energy- and water-efficient irrigation systems;

`(6) to research and develop water-efficient biofuel production technologies;

`(7) to research and develop additional biobased products;

`(8) in cooperation with the Department of Energy and the Department of Defense, to develop storage and conversion technologies for wind- and solar-generated power for small-scale and utility-scale generation facilities; and

`(9) in cooperation with the Department of Energy, to research fuel cell technologies for use in farm, ranch, and rural applications.

`(b) Authorization of Appropriations-

`(1) IN GENERAL- There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2008 through 2012, to remain available until expended.

`(2) ADDITIONAL FUNDS- In addition to funds made available under paragraph (1), there are authorized to be appropriated--

`(A) $110,000,000 to the Under Secretary for Research, Education, and Economics, acting through the Agricultural Research Service, for cellulosic biofuel research for each of fiscal years 2008 through 2012; and

`(B) $110,000,000 to the Secretary and the Secretary of Energy for the development of smaller-scale biorefineries and biofuel plants for each of fiscal years 2008 through 2012.

`SEC. 9023. NORTHEAST DAIRY NUTRIENT MANAGEMENT AND ENERGY DEVELOPMENT PROGRAM.

`(a) Definitions- In this section:

`(1) CONSORTIUM- The term `consortium' means a collaboration of land-grant colleges or universities in the Northeast region that have programs devoted to dairy manure nutrient management and energy conversion from dairy manure.

`(2) LAND-GRANT COLLEGES AND UNIVERSITIES- The term `land-grant colleges and universities' has the meaning given the term in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)).

`(3) NORTHEAST REGION- The term `Northeast region' means the States of Connecticut, Delaware, Massachusetts, Maryland, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and West Virginia.

`(4) PROGRAM- The term `program' means the dairy nutrient management and energy development program established under subsection (b).

`(b) Establishment- The Secretary shall establish a dairy nutrient management and energy development program under which the Secretary shall provide funds to the consortium to carry out multistate, integrated research, extension, and demonstration projects for nutrient management and energy development in the Northeast Region.

`(c) Steering Committee-

`(1) IN GENERAL- The consortium shall establish a steering committee to administer the program.

`(2) CHAIRPERSON- For each calendar year, or for such other period as the consortium determines to be appropriate, the consortium shall select a chairperson of the steering committee in a manner that ensures that each member of the consortium is represented by a chairperson on a rotating basis.

`(3) BOARD-

`(A) IN GENERAL- The steering committee shall establish a board of directors to assist in the administration of the program.

`(B) COMPOSITION- The board shall consist of representatives of--

`(i) dairy cooperatives and other producer groups;

`(ii) State departments of agriculture;

`(iii) conservation organizations; and

`(iv) other appropriate Federal and State agencies.

`(d) Use of Funds-

`(1) ADMINISTRATIVE COSTS- The consortium may use not more than 10 percent of the total amount of funds provided to the consortium under this section to pay the administrative costs of the program.

`(2) GRANT PROGRAM-

`(A) IN GENERAL- The consortium shall use the amounts provided under this section to provide grants to applicants, including dairy cooperatives, producers and producer groups, State departments of agriculture and other appropriate State agencies, and institutions of higher education, to carry out integrated research, extension, and demonstration projects in the Northeast region to address manure nutrient management and energy development.

`(B) APPLICATIONS- The steering committee established under subsection (c)(1), in coordination with the board established by the steering committee, shall annually publish 1 or more requests to receive applications for grants under this paragraph.

`(C) SELECTION-

`(i) IN GENERAL- The board of the steering committee shall select applications submitted under subparagraph (B) for grants under this paragraph--

`(I) on a competitive basis;

`(II) in accordance with such priority technical areas and distribution requirements as the steering committee may establish; and

`(III) in a manner that ensures, to the maximum extent practicable, that an equal quantity of resources is provided to each member of the consortium.

`(ii) REVIEW- Before selecting any application under clause (i), the board shall ensure that the program proposed in the application is subject to a merit review by an independent panel of scientific experts with experience relating to the program.

`(iii) PRIORITY- In selecting applications under clause (i), the board shall give priority to applications for programs that--

`(I) include multiorganizational partnerships, especially partnerships that include producers; and

`(II) attract the most current and applicable science for nutrient management and energy development that can be applied in the Northeast region.

`(D) COST SHARING- An applicant that receives a grant under this paragraph shall provide not less than 20 percent of the cost of the project carried out by the applicant.

`(e) Availability of Results- The consortium shall ensure that the results of each project carried out pursuant to the program are made publicly available.

`(f) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.

`SEC. 9024. REPORT ON THE GROWTH POTENTIAL FOR CELLULOSIC MATERIAL.

`Not later than 18 months after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a comprehensive report that, on a State-by-State basis--

`(1) identifies the range of cellulosic feedstock materials that can be grown and are viable candidates for renewable fuel production;

`(2) estimates the acreage available for growing the cellulosic feedstock materials identified under paragraph (1);

`(3) estimates the quantity of available energy per acre for each cellulosic feedstock material identified under paragraph (1);

`(4) calculates the development potential for growing cellulosic feedstock materials, based on--

`(A) the range of cellulosic materials available for growth;

`(B) soil quality;

`(C) climate variables;

`(D) the quality and availability of water;

`(E) agriculture systems that are in place as of the date of enactment of this Act;

`(F) available acreage; and

`(G) other relevant factors identified by the Secretary; and

`(5) rates the development potential for growing cellulosic feedstock material, with the ratings displayed on maps of the United States that indicate the development potential of each State, as calculated by the Secretary under paragraph (4).

`SEC. 9025. FUTURE FARMSTEADS PROGRAM.

`(a) Establishment- The Secretary shall establish a program to equip, in each of 5 regions of the United States chosen to represent different farming practices, a farm house and its surrounding fields, facilities, and forested areas with technologies to--

`(1) improve farm energy production and energy use efficiencies;

`(2) provide working examples to farmers; and

`(3) serve as an education, demonstration, and research facility that will teach graduate students whose focus of research is related to either renewable energy or energy conservation technologies.

`(b) Goals- The goals of the program established under subsection (a) shall be to--

`(1) advance farm energy use efficiencies and the on-farm production of renewable energies, along with advanced communication and control technologies with the latest in energy capture and conversion techniques, thereby enhancing rural energy independence and creating new revenues for rural economies;

`(2) accelerate private sector and university research into the efficient on-farm production of renewable fuels and help educate the farming industry, students, and the general public; and

`(3) accelerate energy independence, including the production and the conservation of renewable energies on farms.

`(c) Collaboration Partners- The program under this section shall be carried out in partnership with regional land grant institutions, agricultural commodity commissions, biofuels companies, sensor and controls companies, and internet technology companies.

`(d) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out this section.'.

SEC. 9002. SENSE OF THE SENATE CONCERNING HIGHER LEVELS OF ETHANOL BLENDED GASOLINE.

(a) Findings- The Senate finds that, as of the date of enactment of this Act--

(1) annual ethanol production capacity totals 6,800,000,000 gallons;

(2) current and planned construction of ethanol refineries will likely increase annual ethanol production capacity to 12,000,000,000 to 13,000,000,000 gallons by December 31, 2009;

(3) under existing regulations, only gasoline blended with up to 10 percent ethanol (commonly known as `E-10') may be consumed by nonflexible fuel vehicles;

(4) the total market demand for E-10--

(A) is limited to 10 percent of domestic motor fuel consumption; and

(B) is further constrained by State-administered reformulated gasoline regulations and regional infrastructure constraints;

(5) beyond the market demand for E-10, insufficient E-85 infrastructure exists to absorb the increased ethanol production beyond 12,000,000,000 to 13,000,000,000 gallons in the short term;

(6) the approval of intermediate blends of ethanol-blended gasoline, such as E-13, E-15, E-20, and higher blends, is critical to the uninterrupted growth of the United States biofuels industry; and

(7) maintaining the growth of the United States biofuels industry is a matter of national security and sustainable economic growth.

(b) Sense of the Senate- It is the sense of the Senate that the Secretary should--

(1) collaborate with the Secretary of Energy, the Secretary of Transportation, and the Administrator of the Environmental Protection Agency in conducting a study of the economic and environmental effects of intermediate blends of ethanol in United States fuel supply;

(2) ensure that the approval of intermediate blends of ethanol occurs after the appropriate tests have successfully concluded proving the drivability, compatibility, emissions, durability, and health effects of higher blends of ethanol-blended gasoline; and

(3) ensure that the approval of intermediate blends of ethanol-blended gasoline occurs by not later than 1 year after the date of enactment of this Act.

SEC. 9003. CONFORMING AMENDMENTS.

(a) Biomass Research and Development Act of 2000- Title III of the Agricultural Risk Protection Act of 2000 (7 U.S.C. 7624 note; Public Law 106-224) is repealed.

(b) Marketing Program for Biobased Products-

(1) IMPLEMENTATION-

(A) IN GENERAL- The Secretary shall continue to carry out the designation and labeling of biobased products in accordance with section 9002 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102) as in effect on the day before the date of enactment of this Act until the date on which the Secretary is able to begin carrying out section 9002(a) of that Act (as amended by section 9001), which shall begin not later than 90 days after the date of enactment of this Act.

(B) EXISTING LISTINGS- Biobased products designated and labeled under section 9002 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102) as in effect on the day before the date of enactment of this Act shall continue to be considered designated and labeled biobased products after the date of enactment of this Act.

(C) PROPOSED ITEM DESIGNATIONS- Notwithstanding any other provision of this Act or an amendment made by this Act, the Secretary shall have the authority to finalize the listings of any item proposed (prior to the date of enactment of this Act) to be designated in accordance with section 9002 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102) as in effect on the day before the date of enactment of this Act.

(2) BIOENERGY EDUCATION AND AWARENESS CAMPAIGN- Section 947 of the Energy Policy Act of 2005 (42 U.S.C. 16256) is repealed.

SEC. 9004. SENSE OF CONGRESS REGARDING COOPERATIVE REGIONAL RESEARCH, EXTENSION, AND EDUCATION PROGRAMS ON BIOFUELS AND BIOPRODUCTS.

It is the sense of Congress that the Secretary shall continue to allow and support efforts of regional consortiums of public institutions, including land grant universities and State departments of agriculture, to jointly support the bioeconomy through research, extension, and education activities, including--

(1) expanding the use of biomass;

(2) improving the efficiency and sustainability of bioenergy;

(3) supporting local ownership in the bioeconomy;

(4) communicating about the bioeconomy;

(5) facilitating information sharing; and

(6) assisting to coordinate regional approaches.