[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1242 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1242

To amend the Federal Crop Insurance Act and the Farm Security and Rural 
 Investment Act of 2002 to establish a biofuel pilot program to offer 
crop insurance to producers of experimental biofuel crops and a program 
to make loans and loan guarantees to producers of experimental biofuel 
                                 crops.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 26, 2007

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

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Crop Insurance Act and the Farm Security and Rural 
 Investment Act of 2002 to establish a biofuel pilot program to offer 
crop insurance to producers of experimental biofuel crops and a program 
to make loans and loan guarantees to producers of experimental biofuel 
                                 crops.

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

SECTION 1. EXPERIMENTAL BIOFUEL PILOT PROGRAM.

    (a) In General.--Section 523 of the Federal Crop Insurance Act (7 
U.S.C. 1523) is amended by adding at the end the following:
    ``(f) Experimental Biofuel Pilot Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Experimental biofuel crop.--
                            ``(i) In general.--The term `experimental 
                        biofuel crop' means a crop--
                                    ``(I) that is produced for use as--
                                            ``(aa) a nonpetroleum fuel 
                                        source; or
                                            ``(bb) nonpetroleum 
                                        lubricant;
                                    ``(II) for which there is 
                                information to demonstrate that there 
                                are sufficient safeguards to prevent 
                                the spread of the crop as a noxious 
                                weed, as determined by the Corporation;
                                    ``(III) for which there is not an 
                                existing crop-specific policy or plan 
                                of insurance offered pursuant to this 
                                title; and
                                    ``(IV) for which yield data exists 
                                for at least 1 crop year, as determined 
                                by the Corporation based on research or 
                                data, including research or data 
                                provided by--
                                            ``(aa) an institution of 
                                        higher education (as defined in 
                                        section 101(a) of the Higher 
                                        Education Act of 1965 (20 
                                        U.S.C. 1001(a))); or
                                            ``(bb) a research facility 
                                        approved by the Corporation.
                            ``(ii) Inclusion.--The term `experimental 
                        biofuel crop' includes camelina.
                    ``(B) Producer.--The term `producer' means an 
                owner, landlord, tenant, or sharecropper on a farm 
                that--
                            ``(i) produces, and has beneficial interest 
                        in, an experimental biofuel crop; and
                            ``(ii) files a record of the farming 
                        operation for the farm in the appropriate 
                        county office of the Farm Service Agency.
            ``(2) Establishment.--The Corporation shall carry out a 
        pilot program under which producers of experimental biofuel 
        crops may elect to receive crop insurance in accordance with 
        this subsection.
            ``(3) Expected market price.--In establishing the expected 
        market price for each experimental biofuel crop, the 
        Corporation may consider the expected market price established 
        or approved by the Corporation for other reference crops, 
        including similar oilseed and biofuel crops, as determined by 
        the Corporation.
            ``(4) Actual production history.--In determining the actual 
        production history for a producer of an experimental biofuel 
        crop, the Corporation may consider the production history for 
        the producer of, or may apply transitional yields based on, 
        reference crops, including oilseed and biofuel crops with 
        similar yields to the experimental biofuel crop, as determined 
        by the Corporation.
            ``(5) Requirement.--As a condition of receiving crop 
        insurance under this subsection, producers shall--
                    ``(A) submit to the Corporation such yield and 
                productivity information as the Corporation considers 
                to be necessary to determine historical crop yields for 
                the experimental biofuel crops; and
                    ``(B) agree that the Corporation may make the yield 
                and productivity information available to the public.
            ``(6) Limitations.--
                    ``(A) Acreage.--The Corporation shall enroll in the 
                pilot program under this subsection not more than--
                            ``(i) 250 acres per producer;
                            ``(ii) 100,000 acres per State; and
                            ``(iii) 500,000 total acres.
                    ``(B) Expenditures.--The Corporation shall carry 
                out the experimental biofuel pilot program under this 
                subsection so that, to the maximum extent practicable, 
                all costs associated with the pilot program do not 
                exceed $15,000,000 for the period of fiscal years 2008 
                through 2012.
                    ``(C) Administrative costs.--The Corporation may 
                use not more than 10 percent of amounts made available 
                under this or any other Act for administrative and 
                operating expenses of the Risk Management Agency to pay 
                administrative costs to assess whether certain biofuel 
                crops are experimental biofuel crops for which crop 
                insurance can be provided under this subsection.''.
    (b) Funding.--Section 516(a)(2) of the Federal Crop Insurance Act 
(7 U.S.C. 1516(a)(2)) is amended by adding at the end the following:
                    ``(E) Costs associated with the conduct of the 
                experimental biofuel pilot program carried out under 
                section 523(f), subject to the limitations in paragraph 
                (6) of that subsection.''.

SEC. 2. EXPERIMENTAL BIOFUEL PROGRAMS.

    Title IX of the Farm Security and Rural Investment Act (7 U.S.C. 
8101 et seq.) is amended by adding at the end the following:

``SEC. 9013. EXPERIMENTAL BIOFUEL PROGRAMS.

    ``(a) Definitions.--In this section, the terms `experimental 
biofuel crop' and `producer' have the meanings given the terms in 
section 523(f)(1) of the Federal Crop Insurance Act (7 U.S.C. 
1523(f)(1)).
    ``(b) Loan and Loan Guarantee Program.--
            ``(1) In general.--To improve and stabilize farm income, to 
        promote a better balance between supply and demand for 
        experimental biofuel crops, and to assist producers in the 
        orderly marketing of crops, the Secretary shall establish a 
        program under which the Secretary shall make loans and loan 
        guarantees to producers of experimental biofuel crops.
            ``(2) Use of funds.--Producers of experimental biofuel 
        crops that receive loans or loan guarantees under this 
        subsection may use the funds--
                    ``(A) to pay reasonable storage costs incurred by 
                the producers, as determined by the Secretary; and
                    ``(B) to pay other appropriate costs, as determined 
                by the Secretary.
    ``(c) Grant Program.--The Secretary may make grants to research 
facilities and institutions of higher education (as defined in section 
101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))--
            ``(1) to study the use of experimental biofuel crops for 
        animal feed; and
            ``(2) to conduct research on specific harvesting and 
        planting techniques for new experimental biofuel crops.
    ``(d) Funding.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, on October 1, 2007, and on each October 1 thereafter 
        through October 1, 2011, out of any funds in the Treasury not 
        otherwise appropriated, the Secretary of the Treasury shall 
        transfer to the Secretary--
                    ``(A) $5,000,000 to carry out subsection (b); and
                    ``(B) $5,000,000 to carry out subsection (c).
            ``(2) Receipt and acceptance.--The Secretary shall be 
        entitled to receive, shall accept, and shall use to carry out 
        this section the funds transferred under paragraph (1), without 
        further appropriation.
            ``(3) Availability of funds.--Funds transferred under 
        paragraph (1) shall remain available until expended.''.
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