[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 935 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 935

 To amend the National Agricultural Research, Extension, and Teaching 
 Policy Act of 1977 to authorize research to promote the conversion of 
   biomass into biobased industrial products, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 30, 1999

   Mr. Lugar introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
 To amend the National Agricultural Research, Extension, and Teaching 
 Policy Act of 1977 to authorize research to promote the conversion of 
   biomass into biobased industrial products, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Sustainable Fuels and 
Chemicals Act of 1999''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) conversion of biomass into biobased industrial products 
        offers outstanding potential for benefit to the national 
        interest through improved strategic security and balance of 
        payments, healthier rural economies, improved environmental 
        quality, near-zero net greenhouse gas emissions, technology 
        export, and sustainable resource supply;
            (2)(A) biomass is widely available at prices that are 
        competitive with low cost petroleum; and
            (B) the key technical challenge to be overcome in order for 
        biobased industrial products to be cost competitive is reducing 
        the cost of technology for converting biomass into desired 
        biobased industrial products;
            (3) biobased fuels, such as ethanol, have the clear 
        potential to be sustainable, low cost, and high performance 
        fuels that are compatible with both current and future 
        transportation systems and provide near zero net greenhouse gas 
        emissions;
            (4) biobased chemicals--
                    (A) can provide functional replacements for 
                essentially all organic chemicals that are currently 
                derived from petroleum; and
                    (B) have the clear potential for environmentally 
                benign product life cycles;
            (5) many biomass feedstocks suitable for industrial 
        processing show the clear potential for sustainable production, 
        in some cases resulting in improved soil fertility and carbon 
        sequestration;
            (6)(A) grain processing mills are biorefineries that 
        produce a diversity of useful food, chemical, feed, and fuel 
        products; and
            (B) technologies that result in further diversification of 
        the range of value-added biobased industrial products can meet 
        a key need for the grain processing industry;
            (7)(A) cellulosic feedstocks are attractive because of 
        their low cost and widespread availability; and
            (B) research resulting in cost-effective technology to 
        overcome the recalcitrance of cellulosic biomass would allow 
        biorefineries to produce fuels and bulk chemicals on a very 
        large scale, with a commensurately large realization of the 
        benefit described in paragraph (1);
            (8) research into the fundamentals to understand important 
        mechanisms of biomass conversion processes can be expected to 
        accelerate the application and advancement of biomass 
        processing technology by--
                    (A) increasing the confidence and speed with which 
                new technologies can be scaled up; and
                    (B) giving rise to processing innovations based on 
                new knowledge;
            (9) the utility of biotechnology allows the design of 
        feedstocks that will meet future needs more effectively;
            (10)(A) because of the relatively short-term time horizon 
        characteristic of private sector investments, and because many 
        benefits of biomass processing are in the national interest, it 
        is appropriate for the Federal Government to provide 
        precommercial investment in fundamental and research-driven 
        innovation in the biomass processing area; and
            (B) such an investment would provide a valuable complement 
        to ongoing and past governmental support in the biomass 
        processing area; and
            (11) several prominent studies, including studies by the 
        President's Council of Advisors on Science and Technology and 
        the National Research Council, support the potential for large 
        research-driven advances in technologies for production of 
        biobased industrial products as well as associated benefits.

SEC. 3. CONVERSION OF BIOMASS INTO BIOBASED INDUSTRIAL PRODUCTS.

    Title XIV of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by 
adding at the end the following:

 ``Subtitle N--Conversion of Biomass Into Biobased Industrial Products

``SEC. 1490. DEFINITIONS.

    ``In this subtitle:
            ``(1) Advisory committee.--The term `Advisory Committee' 
        means the Sustainable Fuels and Chemicals Technical Advisory 
        Committee established by section 1490C.
            ``(2) Biobased industrial product.--The term `biobased 
        industrial product' means any power, fuel, feed, chemical 
        product, or other consumer good derived from biomass.
            ``(3) Biomass.--The term `biomass' means any organic matter 
        that is available on a renewable or recurring basis, including 
        plants, trees, grasses, agricultural crops and residues, wood 
        and wood residues, municipal waste, animal waste and residues, 
        and aquatic plants.
            ``(4) Board.--The term `Board' means the Sustainable Fuels 
        and Chemicals Board established by section 1490B.
            ``(5) Initiative.--The term `Initiative' means the 
        Sustainable Fuels and Chemicals Research Initiative established 
        under section 1490D.
            ``(6) Point of contact.--The term `point of contact' means 
        a point of contact designated under section 1490A(d).

``SEC. 1490A. COOPERATION AND COORDINATION IN SUSTAINABLE FUELS AND 
              CHEMICALS RESEARCH.

    ``(a) 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 biobased industrial products.
    ``(b) Purpose.--The purpose of the cooperation and coordination 
shall be to promote research and development related to--
            ``(1) understanding the key mechanisms underlying the 
        recalcitrance of biomass for conversion into biobased 
        industrial products, including the use of agricultural crops 
        for conversion into biobased industrial products; and
            ``(2) advanced technologies that will result in large-scale 
        commercial production of low cost biobased industrial products.
    ``(c) Areas.--In carrying out this subtitle, the Secretary of 
Agriculture and the Secretary of Energy shall promote research and 
development to--
            ``(1) advance the availability and widespread use of energy 
        efficient, economically competitive, and environmentally sound 
        biobased industrial products in a manner that is consistent 
        with the goals of the United States relating to sustainable and 
        secure supplies of food, chemicals, and fuel;
            ``(2) ensure full consideration of Federal land and land 
        management programs as potential feedstock resources for 
        biobased industrial products; and
            ``(3) assess the environmental, economic, and social impact 
        of production of biobased industrial products from biomass on a 
        large scale.
    ``(d) Points of Contact.--
            ``(1) In general.--To coordinate research and development 
        programs and activities relating to biobased industrial 
        products that are carried out by their respective Departments--
                    ``(A) 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
                    ``(B) 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.
            ``(2) Duties.--The points of contact shall jointly--
                    ``(A) assist in arranging interlaboratory and site-
                specific supplemental agreements for research, 
                development, and demonstration projects relating to 
                biobased industrial products;
                    ``(B) serve as cochairpersons of the Board;
                    ``(C) administer the Initiative; and
                    ``(D) respond in writing to each recommendation of 
                the Advisory Committee made under section 1490C(c)(2).

``SEC. 1490B. SUSTAINABLE FUELS AND CHEMICALS BOARD.

    ``(a) Establishment.--There is established the Sustainable Fuels 
and Chemicals Board to coordinate programs within and among departments 
and agencies of the Federal Government for the purpose of promoting the 
use of biobased industrial products by--
            ``(1) maximizing the benefits deriving from Federal grants 
        and assistance; and
            ``(2) bringing coherence to Federal planning.
    ``(b) Membership.--The Board shall consist of:
            ``(1) The point of contact of the Department of Agriculture 
        designated under section 1490A(d)(1)(A), who shall serve as 
        cochairperson of the Board.
            ``(2) The point of contact of the Department of Energy 
        designated under section 1490A(d)(1)(B), who shall serve as 
        cochairperson of the Board.
            ``(3) A senior officer of each of the following agencies 
        who is appointed by the head of the agency and who has a rank 
        that is equivalent to the points of contact:
                    ``(A) The Department of the Interior.
                    ``(B) The Environmental Protection Agency.
                    ``(C) The National Science Foundation.
                    ``(D) The Office of Science and Technology Policy.
            ``(4) At the option of the Secretary of Agriculture and the 
        Secretary of Energy, other members appointed by the Secretaries 
        (after consultation with members described in paragraphs (1) 
        through (3)).
    ``(c) Duties.--The Board shall--
            ``(1) coordinate research, development, and demonstration 
        activities relating to biobased industrial products--
                    ``(A) between the Department of Agriculture and the 
                Department of Energy; and
                    ``(B) with other departments and agencies of the 
                Federal Government; and
            ``(2) provide recommendations to the points of contact 
        concerning administration of this subtitle.
    ``(d) Funding.--Each agency represented on the Board is encouraged 
to provide funds for any purpose under this subtitle.
    ``(e) Meetings.--The Board shall meet at least quarterly to enable 
the Board to carry out the duties of the Board under subsection (c).

``SEC. 1490C. SUSTAINABLE FUELS AND CHEMICALS TECHNICAL ADVISORY 
              COMMITTEE.

    ``(a) Establishment.--There is established the Sustainable Fuels 
and Chemicals Technical Advisory Committee to--
            ``(1) advise the Secretary of Agriculture and the Secretary 
        of Energy concerning--
                    ``(A) the technical focus and direction of requests 
                for proposals issued under the Initiative; and
                    ``(B) procedures for reviewing the proposals;
            ``(2) facilitate consultations and partnerships among 
        Federal agencies, agricultural producers, industry, consumers, 
        the research community, and other interested groups to carry 
        out program activities relating to the Initiative; and
            ``(3) evaluate and perform strategic planning on program 
        activities relating to the Initiative.
    ``(b) Membership.--The Committee shall consist of the following 
members appointed by the points of contact:
            ``(1) An individual affiliated with the biobased industrial 
        products industry.
            ``(2) An individual affiliated with a college or university 
        who has expertise in biobased industrial products.
            ``(3) 2 prominent engineers or scientists who have 
        expertise in biobased industrial products.
            ``(4) An individual affiliated with a commodity trade 
        association.
            ``(5) An individual affiliated with an environmental or 
        conservation organization.
            ``(6) At the option of the points of contact, other 
        members.
    ``(c) Duties.--The Advisory Committee shall--
            ``(1) advise the points of contact with respect to the 
        Initiative; and
            ``(2) evaluate whether, and make recommendations in writing 
        to the Board to ensure that--
                    ``(A) funds authorized for the Initiative are 
                distributed and used in a manner that is consistent 
                with the goals of the Initiative;
                    ``(B) the points of contact are funding proposals 
                under this subtitle that are selected on the basis of 
                merit, as determined by an independent panel of 
                scientific and technical peers; and
                    ``(C) activities under this subtitle are carried 
                out in accordance with this subtitle.
    ``(d) Meetings.--The Advisory Committee shall meet at least 
quarterly to enable the Advisory Committee to carry out the duties of 
the Advisory Committee under subsection (c).

``SEC. 1490D. SUSTAINABLE FUELS AND CHEMICALS RESEARCH INITIATIVE.

    ``(a) 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 
Sustainable Fuels and Chemicals Research Initiative under which 
competitively-awarded grants, contracts, and financial assistance are 
provided to, or entered into with, eligible entities to carry out 
research on biobased industrial products.
    ``(b) Purposes.--The purposes of grants, contracts, and assistance 
under this section shall be to--
            ``(1) stimulate collaborative activities by a diverse range 
        of experts in all aspects of biomass processing for the purpose 
        of conducting fundamental and innovation-targeted research and 
        technology development;
            ``(2) enhance creative and imaginative approaches toward 
        biomass processing that will serve to develop the next 
        generation of advanced technologies making possible low cost 
        biobased industrial products;
            ``(3) strengthen the intellectual resources of the United 
        States through the training and education of future scientists, 
        engineers, managers, and business leaders in the field of 
        biomass processing; and
            ``(4) promote integrated research partnerships among 
        colleges, universities, national laboratories, Federal research 
        agencies, and the private sector as the best means of 
        overcoming technical challenges that span multiple academic 
        disciplines and leveraging scarce Federal research funds.
    ``(c) Eligible Entities.--
            ``(1) In general.--To be eligible for a grant, contract, or 
        assistance under this section, an applicant shall be--
                    ``(A) a college or university;
                    ``(B) a national laboratory;
                    ``(C) a Federal research agency;
                    ``(D) a State research agency;
                    ``(E) a private sector entity; or
                    ``(F) a consortium of 2 or more entities described 
                in subparagraphs (A) through (E).
            ``(2) Administration.--After consultation with the Board, 
        the points of contact shall--
                    ``(A) publish annually a joint request for 
                proposals for grants, contracts, and assistance under 
                this section;
                    ``(B) provide a preference in grants, contracts, 
                and assistance under this section to consortia 
                involving experts from multiple institutions and 
                multiple academic disciplines working on cross-cutting 
                or integrative research, development, and demonstration 
                challenges; and
                    ``(C) require that grants, contracts, and 
                assistance under this section be awarded competitively 
                after the establishment of procedures that provide for 
                scientific peer review by an independent panel of 
                scientific and technical peers.
    ``(d) Uses of Grants, Contracts, and Assistance.--A grant, 
contract, or assistance under this section shall be used to conduct--
            ``(1) research on process technology for overcoming the 
        recalcitrance of biomass, including research on key mechanisms, 
        advanced technologies, and demonstration test beds for--
                    ``(A) feedstock pretreatment and hydrolysis of 
                cellulose and hemicellulose, including new technologies 
                for--
                            ``(i) enhanced sugar yields;
                            ``(ii) lower overall chemical use;
                            ``(iii) less costly materials; and
                            ``(iv) cost reduction;
                    ``(B) novel organism development and cellulose 
                production, including consolidated bioprocessing 
                techniques; and
                    ``(C) approaches other than enzymatic hydrolysis 
                for overcoming the recalcitrance of cellulosic biomass;
            ``(2) research on technologies for diversifying the range 
        of products than can be efficiently and cost-competitively 
        produced from biomass, including research on--
                    ``(A) metabolic engineering of biological systems 
                (including genetically modified crops) to produce novel 
                products, especially commodity products, or to increase 
                product selectivity and tolerance, with a research 
                priority on the development of biobased products that 
                can compete in performance and cost with fossil-based 
                products;
                    ``(B) catalytic processing to convert intermediates 
                of biomass processing into products of interest;
                    ``(C) separation technologies for cost-effective 
                product recovery and purification;
                    ``(D) approaches other than metabolic engineering 
                and catalytic conversion of intermediates of biomass 
                processing; and
                    ``(E) advanced technologies for biomass 
                gasification and related research in turbine and 
                stationary fuel cell technology for production of 
                electricity from biomass and related research in 
                advanced turbine and stationary fuel cell technology; 
                and
            ``(3) research aimed at evaluating the sustainability and 
        economic viability of biobased industrial products and their 
        raw material input of biomass, including research on--
                    ``(A) the evaluation of, and strategies to enhance, 
                the sustainability of biomass-based production of fuels 
                and commodity chemicals, including research on--
                            ``(i) accurate measurement and analysis of 
                        carbon sequestration and carbon cycling in 
                        relation to biobased industrial products and 
                        feedstocks;
                            ``(ii) crops that provide a sustainable 
                        resource for conversion to industrial products 
                        while also serving as a source for other needs 
                        such as food or animal feed;
                            ``(iii) development and analysis of best 
                        land management practices that enhance the 
                        environmental sustainability of the production 
                        and harvesting of biomass;
                            ``(iv) development of biomass cropping 
                        systems that improve the conservation and use 
                        of marginal land; and
                            ``(v) biomass gasification and combustion 
                        to produce electricity; and
                    ``(B) the evaluation of, and strategies to enhance, 
                the economic viability of fuels and commodity chemicals 
                produced from biomass, including research on--
                            ``(i) the evaluation of the energy balances 
                        for biorefineries;
                            ``(ii) the cost of the required process 
                        technology; and
                            ``(iii) the impact of coproduction on 
                        product price and large-scale economic 
                        viability.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--In addition to any other amounts that 
        are authorized to be appropriated, there are authorized to be 
        appropriated to carry out this section $49,000,000 for each of 
        fiscal years 2000 through 2005.
            ``(2) Research on cellulosic biomass.--For each fiscal 
        year, of the amounts that are made available under paragraph 
        (1), not less than 30 percent shall be used to conduct research 
        described in subsection (d)(1).

``SEC. 1490E. ADMINISTRATIVE SUPPORT AND FUNDS.

    ``(a) In General.--To the extent administrative support and funds 
are not provided by other agencies under subsection (b), the Secretary 
of Energy shall provide such administrative support and funds of the 
Department of Energy to the Board and the Advisory Committee as are 
necessary to enable the Board and the Advisory Committee to carry out 
this subtitle.
    ``(b) Other Agencies.--The Secretary of Agriculture and the heads 
of the agencies referred to in section 1490B(a)(3) may, and are 
encouraged to, provide administrative support and funds of their 
respective agencies to the Board and the Advisory Committee.

``SEC. 1490F. REPORTS.

    ``For each fiscal year that funds are made available to carry out 
this subtitle, the Secretary of Agriculture and the Secretary of Energy 
shall jointly transmit to Congress a detailed report on--
            ``(1) the status and progress of the Initiative, including 
        a certification from the Board that funds authorized for the 
        Initiative are distributed and used in a manner that is 
        consistent with the goals of the Initiative; and
            ``(2) the general status of cooperation and research 
        efforts carried out by each Secretary with respect to 
        sustainable fuels, chemicals, and electricity derived from 
        biomass, including a certification from the Board that the 
        points of contact are funding proposals that are selected on 
        the basis of merit, as determined by an independent panel of 
        scientific and technical peers.''.
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