[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2656 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2656

To enhance the ongoing profitability and viability of America's farms, 
   forests, and ranches by making conservation activities more cost-
effective and efficient, by creating new revenue opportunities through 
                   biofuels, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 11, 2007

  Mr. Mahoney of Florida (for himself and Mr. Putnam) introduced the 
following bill; which was referred to the Committee on Agriculture, and 
 in addition to the Committees on Energy and Commerce and Science and 
Technology, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To enhance the ongoing profitability and viability of America's farms, 
   forests, and ranches by making conservation activities more cost-
effective and efficient, by creating new revenue opportunities through 
                   biofuels, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American Farm 
Improvement Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                         TITLE I--CONSERVATION

Sec. 101. Farmland stewardship process.
Sec. 102. Expansion of farmland protection tools and opportunities.
                       TITLE II--RENEWABLE ENERGY

Sec. 201. Consistent definitions of ``biomass'', ``renewable biomass'', 
                            ``cellulosic biomass'', ``cellulosic 
                            biomass ethanol'', ``cellulosic 
                            feedstock'', and ``lignocellulosic 
                            feedstock'' throughout the laws of the 
                            United States.
Sec. 202. Cellulosic biofuel and emerging technology loan guarantee 
                            program.
Sec. 203. Animal waste environmental protection and bioenergy 
                            production grants and loans.
Sec. 204. Biomass feedstock commercialization initiative.

                         TITLE I--CONSERVATION

SEC. 101. FARMLAND STEWARDSHIP PROCESS.

    (a) Partnerships and Cooperation.--Section 1243(f) of the Food 
Security Act of 1985 (16 U.S.C. 3843(f)) is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
            ``(1) In general.--The Secretary shall use resources 
        provided under subtitle D to enter into stewardship agreements 
        with owners, operators and producers, as described under 
        section 1240Q, and to designate special projects, as 
        recommended by the State Conservationist, after consultation 
        with the State technical committee, to enhance technical and 
        financial assistance provided to owners, operators, and 
        producers to address natural resource issues related to 
        agricultural production.'';
            (2) by striking paragraph (3) and inserting the following 
        new paragraph:
            ``(3) Incentives.--To realize the purposes of the special 
        projects under paragraph (1), and consistent with section 
        1240Q, the Secretary shall provide special incentives to 
        owners, operators, and producers participating in the special 
        projects to encourage partnerships and enrollments of optimal 
        conservation value.'';
            (3) in paragraph (4)(A), by striking ``may'' and inserting 
        ``shall'' and by inserting ``in cooperation'' after 
        ``stewardship agreement''; and
            (4) in paragraph (4)(B), by striking ``Each party to'' and 
        inserting ``The designated State agency responsible for'' and 
        by striking ``by the party'' and inserting ``under a 
        stewardship agreement''.
    (b) Establishment and Purposes of the Farmland Stewardship 
Process.--Subtitle D of title XII of the Food Security Act of 1985 is 
amended by inserting after section 1240P (16 U.S.C. 3839bb-3) the 
following new section:

``SEC. 1240Q. ESTABLISHMENT AND PURPOSES OF THE FARMLAND STEWARDSHIP 
              PROCESS.

    ``(a) In General.--The Secretary shall establish within the 
Department a process to be known as the `Farmland Stewardship Process'.
    ``(b) Purposes.--The purposes of this process shall be to--
            ``(1) ensure adequate flexibility to enable conservation 
        programs administered by the Secretary to be responsive to 
        local conditions and tailored to the site-specific needs of, 
        and opportunities presented by, individual parcels of eligible 
        agricultural land;
            ``(2) reduce administrative procedures and costs, provide 
        simplified conservation and expand conservation opportunities 
        by allowing owners, operators and producers to carry out 
        multiple conservation activities through one application and 
        one contract;
            ``(3) provide a means through which the conservation 
        objectives of multiple programs, administered by multiple 
        agencies at multiple levels of government can be more easily 
        coordinated and applied to individual parcels of property; and
            ``(4) maximize the effectiveness of existing programs by 
        providing a mechanism through which conservation objectives and 
        practices that are needed to supplement, complement or optimize 
        one or more existing programs can be incorporated into a 
        contract with an owner, operator or producer.
    ``(c) Relation to Other Conservation Programs.--Under this process, 
the Secretary may implement, or combine together, the features of--
            ``(1) any conservation program administered by the 
        Secretary; or
            ``(2) Any conservation program administered by another 
        Federal agency or a State or local government, if 
        implementation by the Secretary--
                    ``(A) is feasible; and
                    ``(B) is carried out with the consent of the 
                applicable administering agency or government.
    ``(d) Funding.--
            ``(1) In general.--This process and the stewardship 
        agreements created by this process shall be funded by the 
        Secretary using--
                    ``(A) the funding authorities of the conservation 
                programs that are implemented through the use of 
                stewardship agreements;
                    ``(B) technical assistance in accordance with 
                section 1243(d);
                    ``(C) funds from the Commodity Credit Corporation 
                as provided in paragraph (3) of this subsection; and
                    ``(D) such other sums as may be appropriated from 
                time to time to carry out the Farmland Stewardship 
                Process.
            ``(2) Cost sharing.--It shall be a requirement of the 
        Farmland Stewardship Process that funds that come from Federal 
        conservation programs that are combined into and made a part of 
        a stewardship agreement must be matched equally with funding or 
        cost share contributions that may be made by State, regional, 
        or local agencies and divisions of government or from private 
        funding sources. Funds from existing programs shall be used to 
        carry out the purposes of those programs that are made a part 
        of a stewardship agreement. Funding for other purposes must 
        come from the funds provided under subparagraphs (B), (C), and 
        (D) of paragraph (1), paragraph (3), or from the funding 
        contributions made by State, regional, or local agencies and 
        divisions of government or from private funding sources.
            ``(3) Establishment and operation.--Of the funds of the 
        Commodity Credit Corporation the Secretary shall use 
        $200,000,000 for each of the fiscal years 2008 through 2012 to 
        establish the Farmland Stewardship Process and to operate it 
        through the `designated state agency' selected by each State's 
        governor, as provided in subsection (e).
            ``(4) Carryover of funds.--The funds provided in paragraph 
        (3) shall remain available until expended.
    ``(e) Personnel Costs.--The Secretary shall use the Natural 
Resources Conservation Service to carry out the Farmland Stewardship 
Process in cooperation with the State department of agriculture or 
other designated agency within the State. The role of the Natural 
Resources Conservation Service shall be limited to federal oversight of 
the process. The Natural Resources Conservation Service shall perform 
its normal functions with respect to the conservation programs that it 
administers. However, it shall play no role in the assembly of programs 
administered by other federal agencies into stewardship agreements.
    ``(f) State Level Administration.--The governor of each state shall 
determine which state agency shall have primary responsibility for 
operating the Farmland Stewardship Process. The governor shall give 
first preference to the state department of agriculture in selecting an 
agency for operation of the process. A State department of agriculture, 
or other agency designated by the governor, may choose to operate the 
process on its own, or may collaborate with another local, State or 
Federal agency, conservation district or tribe. The designated State 
agency shall consult with the agencies with management authority and 
responsibility for the resources affected on properties on which 
stewardship agreements are negotiated and assembled.
    ``(g) Agreements Authorized.--The Secretary shall carry out the 
Farmland Stewardship Process by entering into service contracts as 
determined by the Secretary, to be known as stewardship agreements, 
with owners, operators and producers to maintain and protect the 
natural and agricultural resources on the land.
    ``(h) Definition.--The term `service contract' means a legally 
binding agreement between 2 parties under which--
            ``(1) one party agrees to render one or more services in 
        accordance with the terms of the contract; and
            ``(2) the second party agrees to pay the first party for 
        each service rendered.
    ``(i) Funding Participation.--Any agency participating in the 
Farmland Stewardship Process that has the authority to enter into 
service contracts and to expend public funds under such contracts may 
enter into or participate in the funding of a stewardship agreement.
    ``(j) No Income Limitations.--To avoid conflicts and ensure that 
all the purposes and intents of stewardship agreements can be carried 
out, all owners, operators and producers who enter into or participate 
in a stewardship agreement shall be exempt from the limitations in 
section 1001D(b)(2)(C) of this Act (7 U.S.C. 1308-3a(b)(2)(C)).
    ``(k) Adjustments in Conservation Program Elements To Respond to 
Local Conditions.--(1) The Secretary shall consider requests from a 
State Conservationist of the Natural Resources Conservation Service, a 
state Executive Director of the Farm Services Agency, a designated 
state agency, or a contracting agency authorized by the Secretary to 
enter into and administer stewardship agreements to make limited 
adjustments on a case-by-case basis to the eligibility criteria, 
approved practices, requirements, and other elements of the 
conservation programs combined into a stewardship agreement. 
Adjustments may be made to ensure that--
            ``(A) the conservation programs combined into a stewardship 
        agreement can be more easily implemented in the State;
            ``(B) all program elements are responsive to regional 
        differences and local conditions within the State;
            ``(C) no program requirement or criteria conflicts with or 
        works against the conservation priorities or needs of the 
        State; and
            ``(D) no program requirement or criteria prevents one or 
        more programs from being combined together through a 
        stewardship agreement.
    ``(2) Requests for adjustments shall be granted for one or more of 
the following purposes:
            ``(A) To acknowledge, accommodate and respond to regional 
        differences and local conditions within the State.
            ``(B) To allow sufficient flexibility to enable a 
        conservation program to better adapt to the diverse situations 
        faced by owners and operators within the state, and adapt to 
        the farming practices of the State.
            ``(C) To allow sufficient flexibility to tailor a 
        conservation program to the specific needs, opportunities and 
        challenges offered by individual parcels of land.
            ``(D) To modify administrative requirements that, in the 
        absence of such modification, may limit or prevent the use of a 
        program on eligible agricultural land.
            ``(E) To allow owners and operators to receive compensation 
        for maintaining previously implemented owner- or operator-
        financed conservation practices and to receive credit for 
        incorporating these practices into new contracts.
            ``(F) To address the conservation priorities established by 
        the State or locality in which the eligible agricultural land 
        is located.
            ``(G) To modify administrative requirements that, in the 
        absence of such modification, may prevent one or more programs 
        from being combined together through a stewardship agreement.
    ``(3) Requests for adjustments also can be made that will 
facilitate the coordination and administration of conservation programs 
in the State, including--
            ``(A) establishing different enrollment criteria than 
        otherwise established by regulation or policy;
            ``(B) establishing different compensation rates to the 
        extent the parties to the agreement consider justified;
            ``(C) establishing different conservation practice criteria 
        if doing so will achieve greater conservation benefits;
            ``(D) providing more streamlined and integrated paperwork 
        requirements;
            ``(E) providing for the transfer of conservation program 
        funds to States with flexible incentives accounts; and
            ``(F) providing funds for an adaptive management process to 
        monitor the effectiveness of the program for the protection of 
        natural resources, economic effectiveness, and sustaining the 
        agricultural economy.
    ``(4) Adjustments may be made only if the purposes to be achieved 
by the program after the adjustments are made remain consistent with 
the purposes for which the program was established.
    ``(5) For a request for an adjustment to be considered, a State 
conservationist, state executive director, designated State agency or 
contracting agency must submit a request for an adjustment to the 
appropriate Federal official. The official may request documentation in 
addition to the documentation required by paragraph (6), or may suggest 
alternative methods of making adjustments on the property in question, 
prior to deciding whether or not to grant a request for an adjustment. 
The response shall be provided within 180 days after receipt of the 
request.
    ``(6) A request under paragraph (5) shall--
            ``(A) explain why a subject property, owner or operator or 
        activity qualifies for participation in the program;
            ``(B) explain the programmatic or conservation benefits 
        represented;
            ``(C) describe the requested resources and adjustments to 
        program implementation (including a description of how those 
        adjustments will accelerate the achievement of conservation 
        benefits);
            ``(D) describe the contribution those adjustments will make 
        to the effectiveness of programs in achieving their purposes, 
        in addressing state conservation priorities or needs, and in 
        responding to local conditions;
            ``(E) describe the non-Federal programs and resources that 
        will be available to contribute to the proposed project or 
        activity; and
            ``(F) request that the official grant the adjustment, based 
        on the documentation submitted.
    ``(l) Application and Approval Process.--To participate in the 
Farmland Stewardship Process, an owner, operator or producer on 
eligible agricultural land shall--
            ``(1) submit to the Secretary an application indicating 
        interest in the process and describing the owner's or operators 
        property, its resources, and their ecological and agricultural 
        values;
            ``(2) submit to the Secretary the purpose and objectives of 
        the proposed agreement and a list of services to be provided, 
        or a management plan to be implemented, or both;
            ``(3) if the application and list are accepted by the 
        Secretary, enter into an agreement that details the purpose and 
        objectives of the agreement and the services to be provided, or 
        management plan to be implemented, or both, and requires 
        compliance with the other terms of the agreement.
    ``(m) Primary Program.--In applying to participate in the Farmland 
Stewardship Process, an applicant must designate one of the programs in 
this subtitle, such as the conservation security program, environmental 
quality incentives program, conservation reserve program, or the 
farmland protection program, as the `primary program', upon which a 
stewardship agreement will be based and around which conservation 
practices will be negotiated and implemented.
    ``(n) Effective Use of Federal Resources.--The Secretary shall 
ensure that Federal resources are equitably and effectively distributed 
through the use of stewardship agreements by taking local conditions, 
local farming practices and local costs of production into 
consideration and by allocating resources based on--
            ``(1) the merits of the activities to be carried out;
            ``(2) the benefits to be derived from the practices to be 
        installed, the services to be provided, or the management plan 
        to be implemented under a stewardship agreement; and
            ``(3) the opportunities that exist to advance conservation 
        objectives in a watershed, region or priority area for a State.
    ``(o) Equitable Treatment of Producers.--The Secretary shall ensure 
that all rules, criteria and definitions used to determine eligibility 
for participation by owners, operators and producers in the 
conservation, cost-share, incentive payment, marketing assistance, 
grant and loan guarantee programs administered by the Secretary that 
may be combined into a stewardship agreement are as inclusive as 
possible and extend opportunities to participate to as many owners, 
operators and producers as possible. In particular, the Secretary shall 
ensure that--
            ``(1) all owners, operators and producers that maintain 
        land in agricultural uses, have bonafide agricultural 
        operations and consistently derive an ongoing and substantial 
        portion of their revenues from agriculture and agriculturally-
        related enterprises shall be eligible to participate in the 
        programs administered by the Secretary that are combined into a 
        stewardship agreement;
            ``(2) no producer shall be prevented from participating in 
        these programs, nor be declared ineligible for participation 
        under the Department's Notice of Solicitation of Applications 
        (NOSA) definitions, if said producer is a publicly-held 
        company, nor if said producer should derive income and revenues 
        from an integrated agricultural operation, business activities 
        unrelated to agriculture or as a result of land sales that make 
        the revenues derived from agricultural production less than 50 
        percent of its earnings in any one year.
    ``(p) Increased Participation by Large Owners, Operators and 
Producers.--The Secretary shall recognize that individuals, companies 
and corporations that own and operate large land holdings that are 
devoted primarily to agricultural uses can have a positive impact on 
advancing the objectives of the Department's conservation programs. The 
Secretary shall ensure that the criteria and procedures used for 
determining eligibility and evaluating applications shall encourage 
participation by individuals, companies and corporations, including 
publicly held corporations, with large land holdings devoted primarily 
to agricultural uses, particularly when their participation can make a 
significant contribution toward effectively and comprehensively 
addressing national, State, and local conservation priorities.''.
    (c) Funding.--Subsection (a) of section 1241 of the Food Security 
Act of 1985 (16 U.S.C. 3841) is amended by adding at the end the 
following new paragraph:
            ``(8) The Farmland Stewardship Process under section 1240Q, 
        using, to the maximum extent practicable, $200,000,000 for each 
        of the fiscal years 2008 through 2012.''.

SEC. 102. EXPANSION OF FARMLAND PROTECTION TOOLS AND OPPORTUNITIES.

    Subtitle D of title XII of the Food Security Act of 1985 is amended 
by adding after section 1238J (16 U.S.C. 3838j) the following new 
section:

``SEC. 1238K. RURAL LAND STEWARDSHIP IMPLEMENTATION GRANTS.

    ``(a) Grants.--The Secretary shall establish a process to make 
rural land stewardship implementation grants of up to $500,000 per 
county available from the funds appropriated to the Secretary to carry 
out the Farmland Protection Program.
    ``(b) Purpose and Use.--The Secretary shall direct that these funds 
are to be spent in assisting the existing easement process, but that, 
notwithstanding any language to the contrary, special consideration 
shall be provided to establishing one or more rural land stewardship 
implementation programs in participating States by allowing these funds 
to be used for rural community planning and for developing and 
implementing comprehensive strategies for rural land preservation and 
the ongoing continued viability of agriculture, not just for the 
purchase of easements from individual owners, in order to define a 
process that will allow future appropriations from the Farmland 
Protection Program to be leveraged many times over to multiply their 
intended impact.
    ``(c) Strategies; Model.--Rural community planning and the 
development of comprehensive rural land stewardship strategies shall be 
accomplished through a science based, stakeholder generated rural 
planning framework that takes market forces into consideration and may 
use as a model the procedures that have been developed and successfully 
implemented in the State of Florida under chapter 163.3177(11)(d), 
Florida Statutes.
    ``(d) Relation to Other Conservation Authorities.--Eligible 
producers shall be required to specifically elect to pursue a rural 
lands stewardship implementation grant in lieu of using the same amount 
of funding for the purchase of easements from individual owners. 
Eligible producers must state that they understand that the use of 
farmland protection program funds for a rural lands stewardship 
implementation grant--
            ``(1) shall not preclude any eligible producer within a 
        Rural Lands Stewardship Area from applying for and receiving 
        funds for the purchase of easements under the Farmland 
        Protection Program, but
            ``(2) will reduce the amount of funding available to the 
        State for the purchase of easements through the Farmland 
        Protection Program by an amount equal to the grant.''.

                       TITLE II--RENEWABLE ENERGY

SEC. 201. CONSISTENT DEFINITIONS OF ``BIOMASS'', ``RENEWABLE BIOMASS'', 
              ``CELLULOSIC BIOMASS'', ``CELLULOSIC BIOMASS ETHANOL'', 
              ``CELLULOSIC FEEDSTOCK'', AND ``LIGNOCELLULOSIC 
              FEEDSTOCK'' THROUGHOUT THE LAWS OF THE UNITED STATES.

    (a) Energy Policy Act of 2005.--
            (1) Subsection (a) of section 932 of the Energy Policy Act 
        of 2005 (Public Law 109-58) is amended by striking paragraphs 
        (1) and (2) and inserting:
            ``(1) Biomass.--The term `biomass' means--
                    ``(A) any organic material that is available on a 
                renewable or recurring basis;
                    ``(B) any organic material grown or collected for 
                the purpose of being converted to energy (including 
                aquatic plants);
                    ``(C) any organic byproduct of agriculture and 
                forestry (including wastes from food production and 
                processing, used vegetable oil, mill residues, and 
                storm-, insect- and diseased-damaged crops and trees) 
                that can be converted into energy; or
                    ``(D) any waste material that can be converted to 
                energy and is derived from:
                            ``(i) vegetative waste material (including 
                        wood waste and wood residues);
                            ``(ii) invasive plants;
                            ``(iii) fibers;
                            ``(iv) animal waste and byproducts 
                        (including fats, oils, greases, offal, methane 
                        gas, and manure);
                            ``(v) non-recyclable paper; and
                            ``(vi) municipal solid waste (including 
                        sludges and oils derived from wastewater and 
                        the treatment of wastewater).
            ``(2) Lignocellulosic feedstock.--The terms 
        `lignocellulosic feedstock' and `cellulosic feedstock' mean any 
        portion of a plant or plant byproduct from conversion that is 
        available on a renewable or recurring basis, and is not grown 
        for food or feed, including the nonfood, non-feed portions of 
        crops, trees, forest residues, and agricultural residues, as 
        well as any part of a storm-, insect- or disease-damaged food, 
        feed or tree crop.''.
            (2) Paragraph (2) of subsection (c) of section 932 of the 
        Energy Policy Act of 2005 (Public Law 109-58) is amended by 
        adding the words ``gasification and'' before the words 
        ``enzymatic-based processing systems''.
    (b) Biomass Research and Development Act of 2000.--Section 303 of 
the Biomass Research and Development Act of 2000 (Public Law 106-224; 7 
U.S.C. 8101 note) is amended by striking paragraph (4) and inserting 
the following:
            ``(4) Biomass.--The term `biomass' means--
                    ``(A) any organic material that is available on a 
                renewable or recurring basis;
                    ``(B) any organic material grown or collected for 
                the purpose of being converted to energy (including 
                aquatic plants);
                    ``(C) any organic byproduct of agriculture and 
                forestry (including wastes from food production and 
                processing, used vegetable oil, mill residues, and 
                storm-, insect- and diseased-damaged crops and trees) 
                that can be converted into energy; or
                    ``(D) any waste material that can be converted to 
                energy.''.
    (c) Clean Air Act.--
            (1) So much of section 211(o) of the Clean Air Act (42 
        U.S.C. 7545(o)) as precedes subparagraph (C) of paragraph (1) 
        is amended to read as follows:
    ``(o) Renewable Fuel Program.--
            ``(1) Definitions.--In this section:
                    ``(A) Cellulosic biomass ethanol.--The term 
                `cellulosic biomass ethanol' means ethanol, or any 
                other alcohol- or oxygenate-based fuel and related co-
                product derived directly from any lignocellulosic or 
                hemicellulosic matter that is available on a renewable 
                or recurring basis, and is not grown for food or feed, 
                including--
                            ``(i) any plant material grown or collected 
                        for the purpose of being converted to energy 
                        (including aquatic plants);
                            ``(ii) any organic byproduct or residue 
                        from agriculture and forestry (including wastes 
                        from food production and processing, used 
                        vegetable oil, mill residues, and storm-, 
                        insect- and diseased-damaged crops and trees) 
                        that can be converted into energy; or
                            ``(iii) Any waste material that can be 
                        converted to energy and is derived from--
                                    ``(I) vegetative waste material 
                                (including wood waste and wood 
                                residues);
                                    ``(II) invasive plants;
                                    ``(III) fibers;
                                    ``(IV) animal waste and byproducts;
                                    ``(V) non-recyclable paper; and
                                    ``(VI) municipal solid waste.
                    ``(B) Waste derived ethanol.--The term `waste 
                derived ethanol' means ethanol, or any other alcohol- 
                or oxygenate-based fuel and related co-product derived 
                from--
                            ``(i) animal waste and byproducts, 
                        including fats, oils, greases, offal, methane 
                        gas, and manure;
                            ``(ii) municipal solid waste, including 
                        sludges and oils derived from wastewater and 
                        the treatment of wastewater; or
                            ``(iii) other waste materials.''.
            (2) Section 211(r)(4)(B) of the Clean Air Act (42 U.S.C. 
        7545(r)) is amended to read as follows:
                    ``(B) The term `renewable biomass' means any 
                organic material that is available on a renewable or 
                recurring basis.
                            ``(i) Inclusions.--The term `renewable 
                        biomass' includes--
                                    ``(I) any renewable plant material 
                                that can be grown or collected for the 
                                purpose of being converted to energy 
                                (including aquatic plants, but not 
                                including those portions of a plant 
                                grown for food or feed);
                                    ``(II) any organic byproduct or 
                                residue from agriculture and forestry 
                                (including wastes from food production 
                                and processing, used vegetable oil, 
                                mill residues, and storm-, insect- and 
                                diseased-damaged crops and trees) that 
                                can be converted into energy; or
                                    ``(III) Any waste material that can 
                                be converted to energy and is derived 
                                from--
                                            ``(aa) vegetative waste 
                                        material (including wood waste 
                                        and wood residues);
                                            ``(bb) invasive plants;
                                            ``(cc) fibers;
                                            ``(dd) animal waste and 
                                        byproducts (including fats, 
                                        oils, greases, offal, methane 
                                        gas, and manure);
                                            ``(ee) non-recyclable 
                                        paper; and
                                            ``(ff) municipal solid 
                                        waste (including sludges and 
                                        oils derived from wastewater 
                                        and the treatment of 
                                        wastewater).
                            ``(ii) Exclusions.--The term `renewable 
                        biomass' does not include old-growth timber of 
                        a forest from the late successional stage of 
                        forest development, but does include storm-, 
                        insect- or disease-damaged trees that can be 
                        removed without damage to the forest.''.
    (d) Energy Title Definitions of the Farm Security and Rural 
Investment Act of 2002.--Section 9001 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8101) is amended--
            (1) in paragraph (3), to read as follows:
            ``(3) Biomass.--The term `biomass' means--
                    ``(A) any organic material that is available on a 
                renewable or recurring basis;
                    ``(B) any organic material grown or collected for 
                the purpose of being converted to energy (including 
                aquatic plants);
                    ``(C) any organic byproduct of agriculture and 
                forestry (including wastes from food production and 
                processing, used vegetable oil, mill residues, and 
                storm-damaged, insect-damaged, and diseased-damaged 
                crops and trees) that can be converted into energy; or
                    ``(D) any waste material that can be converted to 
                energy and is derived from--
                            ``(i) vegetative waste material (including 
                        wood waste and wood residues);
                            ``(ii) invasive plants (including aquatic 
                        plants);
                            ``(iii) fibers;
                            ``(iv) animal waste and byproducts 
                        (including fats, oils, greases, offal, methane 
                        gas, and manure);
                            ``(v) non-recyclable paper; and
                            ``(vi) municipal solid waste (including 
                        sludges and oils derived from wastewater and 
                        the treatment of wastewater).'';
            (2) by redesignating paragraphs (4) through (6) as 
        paragraphs (5) through (7); and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Cellulosic biomass, cellulosic feedstock, 
        lignocellulosic biomass and lignocellulosic feedstock.--The 
        terms `cellulosic biomass', `cellulosic feedstock', 
        `lignocellulosic biomass' and `lignocellulosic feedstock' all 
        shall be considered equivalent terms and shall mean any portion 
        of a plant or plant byproduct from conversion that is available 
        on a renewable or recurring basis, and is not grown for food or 
        feed, including the non-food, non-feed portions of crops, 
        trees, forest residues, and agricultural residues, as well as 
        any part of a storm-damaged, insect-damaged, or disease-damaged 
        food, feed, or tree crop.''.
    (e) Executive Order 13134.--In carrying out section 7 of Executive 
Order 13134 (7 U.S.C. 8601 note) the following modifications shall 
apply to the specified provisions of such Executive Order:
            (1) In lieu of subsection (a), the following shall apply:
    ``(a) The term `biomass' means any organic matter that is available 
on a renewable or recurring basis.
            ``(1) Inclusions.--The term `biomass' includes--
                    ``(A) any organic material grown or collected for 
                the purpose of being converted to energy (including 
                aquatic plants);
                    ``(B) any organic byproduct of agriculture and 
                forestry (including wastes from food production and 
                processing, used vegetable oil, mill residues, and 
                storm-, insect- and diseased-damaged crops and trees) 
                that can be converted into energy; or
                    ``(C) any waste material that can be converted to 
                energy;
            ``(2) Exclusions.--The term `biomass' does not include old-
        growth timber of a forest from the late successional stage of 
        forest development, but does include storm-, insect- or 
        disease-damaged trees that can be removed without damage to the 
        forest.''.
            (2) The following sentence shall be treated as included at 
        the end of subsection (d): ``Storm-damaged, insect-damaged, and 
        disease-damaged trees are excluded from the limitation on their 
        use for biomass.''.
    (f) Bioenergy Program of the Farm Security and Rural Investment Act 
of 2002.--Section 9010(a) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8108(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``and''; and
                    (B) in subparagraph (B)--
                            (i) by striking the period at the end and 
                        inserting a semicolon; and
                            (ii) by adding the following new 
                        subparagraphs:
                    ``(C) butanol; and
                    ``(D) other similar oxygenates.''; and
            (2) in paragraph (3), by amending subparagraph (B) to read 
        as follows:
                    ``(B) any cellulosic feedstock or commodity 
                (including crop residues, agriculture and food 
                processing wastes, vegetative and wood wastes and 
                residues, invasive plants, and other plant materials 
                that can be used for energy production such as hybrid 
                poplar and switch grass).''.
    (g) Technologies Using Agricultural Crops, Byproducts and Residues 
To Produce Cellulosic Ethanol and Other Biofuels.--
            (1) Subsections (a) and (b) and paragraphs (1) and (3) of 
        subsection (d) of section 417 of the Energy Policy Act of 2005 
        (Public Law 109-58) are each amended by striking ``Fischer-
        Tropsch transportation fuels'' and inserting ``transportation 
        fuels derived from any coal to liquid process that is 
        environmentally compatible.''.
            (2) Subsection (c) of section 417 of the Energy Policy Act 
        of 2005 (Public Law 109-58) is amended by--
                    (A) striking ``Fischer-Tropsch transportation 
                fuel''; and
                    (B) striking the period at the end of the sentence 
                and inserting a comma and the following ``derived from 
                any coal to liquid process that is environmentally 
                compatible.''.
            (3) Clause (ii) of subparagraph (D) of paragraph (1) of 
        subsection (c) of section 1703 of the Energy Policy Act of 2005 
        (Public Law 109-58) is amended by striking ``the Fischer-
        Tropsch process'' and inserting ``any coal to liquid process 
        that is environmentally compatible.''.

SEC. 202. CELLULOSIC BIOFUEL AND EMERGING TECHNOLOGY LOAN GUARANTEE 
              PROGRAM.

    Section 310B(g) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1932(g)) is amended by adding at the end the following:
            ``(9) Emerging technology loan guarantees.--
                    ``(A) In general.--The Secretary may guarantee 
                loans made by private institutions for the construction 
                of facilities to use established, new, or emerging 
                technologies to process and convert cellulosic biomass 
                materials directly into alcohol-based fuels, bio-fuels, 
                or other commercial products.
                    ``(B) Applicant assurances.--An application for a 
                loan guarantee under this section shall include 
                assurances, satisfactory to the Secretary, that--
                            ``(i) the project design has been validated 
                        through the operation of a pilot facility which 
                        can be reasonably scaled up to commercial size;
                            ``(ii) the project has been subject to a 
                        full technical review;
                            ``(iii) the project is covered by adequate 
                        project performance guarantees (excluding 
                        process performance guarantees on new or 
                        emerging technologies);
                            ``(iv) the project, with the loan 
                        guarantee, is economically viable; and
                            ``(v) there is a reasonable assurance of 
                        repayment of the guaranteed loan.
                    ``(C) Cost-sharing.--An application for a loan 
                guarantee under this paragraph shall include binding 
                commitments to cover, from sources other than Federal 
                grants, at least 20 percent of the total cost of the 
                project described in the application.
                    ``(D) Preferences.--In making loan guarantees under 
                this paragraph, the Secretary shall give preference to 
                applications which contain proposals that--
                            ``(i) meet all applicable Federal and State 
                        permitting requirements;
                            ``(ii) are most likely to be successful; 
                        and
                            ``(iii) are located in local markets that 
                        have the greatest need for the facility because 
                        of--
                                    ``(I) the availability on a 
                                renewable basis of sufficient 
                                quantities of cellulosic biomass;
                                    ``(II) opportunities to provide 
                                jobs and promote economic development 
                                in rural areas;
                                    ``(III) opportunities to expand 
                                markets for agricultural producers near 
                                the facility;
                                    ``(IV) opportunities to dispose of 
                                cellulosic-based waste material or 
                                debris; or
                                    ``(V) a high level of demand for 
                                alcohol-based fuels, bio-fuels, or 
                                other commercial products of the 
                                facility.
                    ``(E) Approval.--Not later than 90 days after the 
                Secretary receives an application for a loan guarantee 
                under this section, the Secretary shall approve or 
                disapprove the application.
                    ``(F) Limitations.--
                            ``(i) Maximum amount guaranteed.--The total 
                        amount of loan guarantees made under this 
                        paragraph for a project described in an 
                        application approved under this paragraph shall 
                        not exceed $250,000,000.
                            ``(ii) Maximum percentage of loan 
                        guaranteed.--Except as provided in subparagraph 
                        (G)(ii), a loan guarantee under this paragraph 
                        for a project described in an application 
                        approved under this paragraph shall be for not 
                        more than 80 percent of the cost of the project 
                        estimated in the application.
                    ``(G) Additional guarantees.--
                            ``(i) In general.--The Secretary may 
                        provide additional loan guarantees for a 
                        project described in an application approved 
                        under this paragraph, to cover up to 80 percent 
                        of the excess of the actual cost of the project 
                        over the cost of the project estimated in the 
                        application.
                            ``(ii) Limitations.--
                                    ``(I) Maximum amount guaranteed.--
                                The total amount of additional 
                                guarantees issued under clause (i) of 
                                this subparagraph for a project shall 
                                not exceed 15 percent of the amount of 
                                the original guarantee provided under 
                                this paragraph for the project, subject 
                                to subparagraph (F)(i).
                                    ``(II) Maximum percentage of loan 
                                guaranteed.--The Secretary may 
                                guarantee not less than 90 percent and 
                                not more than 100 percent of the 
                                principal and interest due on a loan 
                                guaranteed under clause (i). If the 
                                guarantee is for less than 100 percent 
                                of the principal and interest due on 
                                the loan, the Secretary may not require 
                                the Federal Government to be accorded a 
                                position superior to the lender in the 
                                event of default.
                    ``(H) Limitations on authorization of 
                appropriations.--There are authorized to be 
                appropriated to the Secretary such sums as are 
                necessary for the cost of providing--
                            ``(i) $2,000,000,000 in loan guarantees 
                        under this paragraph for fiscal year 2008;
                            ``(ii) $3,000,000,000 in loan guarantees 
                        under this paragraph for fiscal year 2009;
                            ``(iii) $4,000,000,000 in loan guarantees 
                        under this paragraph for fiscal year 2010;
                            ``(iv) $5,000,000,000 in loan guarantees 
                        under this paragraph for fiscal year 2011; and
                            ``(v) $6,000,000,000 in loan guarantees 
                        under this paragraph for fiscal year 2012.
                    ``(I) Termination of authority.--The authority 
                provided by this paragraph shall terminate 10 years 
                after the date of the enactment of this paragraph.''.

SEC. 203. ANIMAL WASTE ENVIRONMENTAL PROTECTION AND BIOENERGY 
              PRODUCTION GRANTS AND LOANS.

    Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) is amended by redesignating subsection (h) as subsection 
(i) and inserting after subsection (g) the following:
    ``(h) Animal Waste Environmental Protection and Bioenergy 
Production Grants and Loans.--
            ``(1) In general.--The Secretary may provide grants, loans, 
        and loan guarantees to farm owners and tenants for the purchase 
        and installation of equipment, and the construction of 
        structures and facilities, for the processing and conversion of 
        animal wastes and byproducts into liquid fuel, energy, and 
        other commercial products.
            ``(2) Priority.--In providing grants, loans, and loan 
        guarantees under this subsection, the Secretary shall give 
        priority to producers who make a binding commitment to the 
        Secretary to use the funds obtained thereby to install 
        equipment or build structures and facilities that will lead to 
        an improvement in water quality, or that will accomplish other 
        conservation objectives.
            ``(3) Maximum amounts.--The maximum amount of a grant or 
        loan, and the maximum amount the repayment of which may be 
        guaranteed, under this subsection shall not exceed 
        $10,000,000.''.

SEC. 204. BIOMASS FEEDSTOCK COMMERCIALIZATION INITIATIVE.

    Paragraph (1) of section 307(d) of the Biomass Research and 
Development Act of 2000 (7 U.S.C. 8606(d)(1); Public Law 106-224) is 
amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by adding ``and'' at the end; and
            (3) by adding after subparagraph (D) the following new 
        subparagraph:
                    ``(E) strategies to--
                            ``(i) provide producers with the necessary 
                        technical assistance, incentives and financial 
                        tools to facilitate a shift towards the 
                        production of crops grown for cellulosic 
                        feedstock and biomass (hereafter in this 
                        subparagraph referred to as `energy crops');
                            ``(ii) provide producers with recommended 
                        practices for growing energy crops to ensure 
                        consistency with existing recommended practices 
                        and conservation programs;
                            ``(iii) provide incentives to producers in 
                        the form of price guarantees for planting 
                        energy crops to protect early adopters from 
                        perceived risk during start up of the industry;
                            ``(iv) provide incentives to producers in 
                        the form of grants and guaranteed loans to 
                        establish new cropping systems for the 
                        production, collection and harvesting of 
                        biomass and to remove old cropping systems;
                            ``(v) provide incentives in the form of 
                        grants and guaranteed loans to establish 
                        breeding programs for propagation materials, 
                        which will be necessary to make commercial-
                        scale energy crop production possible; and
                            ``(vi) encourage development within the 
                        private sector of the necessary support 
                        services for energy crop production and 
                        biorefinery operations.''.
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