II 110th CONGRESS 1st Session S. 1403 IN THE SENATE OF THE UNITED STATES May 15, 2007 Ms. Klobuchar (for herself, Mr. Harkin, Mr. Conrad, and Mr. Durbin) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Farm Security and Rural Investment Act of 2002 to provide incentives for the production of bioenergy crops.

1.

Short title

This Act may be cited as the Farm-to-Fuel Investment Act of 2007.

2.

Bioenergy transition assistance

(a)

Definitions

Section 9003(b) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103(b)) is amended— (1)by redesignating paragraphs (2) through (4) as paragraphs (5) through (7), respectively; and (2)by inserting after paragraph (1) the following: (2)

Bioenergy crop

(A)

In general

The term bioenergy crop means— (i)a perennial plant that can be used as feedstock for bioenergy production; or (ii)an annual plant that— (I)can be used as feedstock for bioenergy production; and (II)is grown in a resource-conserving crop rotation. (B)

Exclusions

The term bioenergy crop does not include— (i)any crop that is eligible for any payments under title I; or (ii)any plant that— (I)the Secretary determines to be invasive or noxious; or (II)has the potential to become invasive or noxious, as determined by the Secretary, in consultation with the United States Fish and Wildlife Service or a State conservation agency. (3)

Bioenergy cropshed

The term bioenergy cropshed means a bioenergy cropshed designated by the Secretary under subsection (g)(1). (4)

Bioenergy producer

The term bioenergy producer means a producer that produces a bioenergy crop that, as determined by the Secretary— (A)is physically located in a bioenergy cropshed; and (B)can be used by the local biorefinery. . (b)

Bioenergy transition assistance

Section 9003 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103) is amended— (1)by redesignating subsections (g) and (h) as subsections (h) and (i), respectively; and (2)by inserting after subsection (f) the following: (g)

Bioenergy transition assistance

(1)

Designation of bioenergy cropsheds

(A)

In general

The Secretary shall designate as bioenergy cropsheds, areas that are physically located within, as determined by the Secretary— (i)a 50-mile radius of an existing or planned biorefinery; or (ii)some other economically-practicable distance from an existing or planned biorefinery. (B)

Specific conservation objectives

Each bioenergy cropshed designated under subparagraph (A) shall include specific conservation objectives for local resources of concern, including water quality, wildlife habitat, soil quality, and air quality, as determined by the Secretary, acting through the Natural Resources Conservation Service and in consultation with State technical committees. (C)

Priority

In designating bioenergy cropsheds under subparagraph (A), the Secretary shall give priority to— (i)locations in which the establishment of bioenergy cropsheds is most likely, as determined by the Secretary, to result in— (I)geographic diversity; (II)diversity of feedstocks; (III)net environmental benefit; and (IV)minimal environmental harm; and (ii)areas in which the existing or planned biorefinery is owned primarily by residents of a rural area. (2)

Bioenergy crop transition assistance

(A)

In general

The Secretary, acting through the Natural Resources Conservation Service, shall offer to enter into contracts with producers on a farm in a bioenergy cropshed to provide bioenergy crop transition assistance to encourage the producers to produce bioenergy crops for a biorefinery located in the bioenergy cropshed. (B)

Term of contract

Contracts described in subparagraph (A) shall be for a term of 3 years. (3)

Eligibility

(A)

In general

As a condition of entering into a bioenergy crop transition assistance contract, the producers on a farm shall, as determined by the Secretary— (i)demonstrate that the producers are producing a bioenergy crop that is contracted for use by the biorefinery in the bioenergy cropshed; (ii)agree to meet the quality criteria for water quality, wildlife habitat, and soil quality by the end of the contract period; and (iii)agree to make available to the Secretary (or to an institution of higher education designated by the Secretary) such information as the Secretary considers to be appropriate— (I)to promote the production of bioenergy crops and the development of biorefinery technology; and (II)to evaluate the bioenergy transition assistance. (B)

Best practices database

Subject to section 1770 of the Food Security Act of 1985 (7 U.S.C. 2276), the Secretary shall make available to the public in a database format the best practices information developed by the Secretary in providing bioenergy transition assistance. (4)

Amount of payments

In determining the amount of annual bioenergy crop transition assistance to be paid to producers on a farm under this subsection, the Secretary shall consider— (A)the cost of establishing the bioenergy crop; (B)the amount necessary to encourage producers on a farm to produce bioenergy crops in the quantity needed by the biorefinery in the bioenergy cropshed; (C)the amount that the producers on a farm would have earned if the producers had produced a crop other than a bioenergy crop; and (D)such other factors as the Secretary considers to be appropriate. (5)

Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this subsection $350,000,000 for the period of fiscal years 2008 through 2012, to remain available until expended. . (c)

Conforming amendments

Section 1770(d) of the Food Security Act of 1985 (7 U.S.C. 2276(d)) is amended— (1)in paragraph (11), by striking or at the end; (2)in paragraph (12), by striking the period at the end and inserting ; or; and (3)by adding at the end the following: (13)section 9003(g) of the Farm Security and Rural Investment of 2002 (7 U.S.C. 8103(g)) .

3.

Conservation security program

(a)

Definition of bioenergy crops

Section 1238 of the Food Security Act of 1985 (16 U.S.C. 3838) is amended— (1)by redesignating paragraphs (3) through (15) as paragraphs (5) through (17), respectively; and (2)by inserting after paragraph (2) the following: (3)

Bioenergy crop

The term bioenergy crop has the meaning given the term in section 9003(b) of the Farm Security and Rural Investment of 2002 (7 U.S.C. 8103(b)). (4)

Bioenergy producer

The term bioenergy producer has the meaning given the term in section 9003(b) of the Farm Security and Rural Investment of 2002 (7 U.S.C. 8103(b)). . (b)

Conservation security contracts

Section 1238C(b)(1)(C)(iii) of the Food Security Act of 1985 (16 U.S.C. 3838c(b)(1)(C)(iii)) is amended— (1)in subclause (IV), by striking or at the end; (2)in subclause (V), by striking the period at the end and inserting a semicolon; and (3)by adding at the end the following: (VI)is a bioenergy producer and maintains and actively manages a conservation system that incorporates 2 or more native perennial bioenergy crop species; or (VII)is a bioenergy producer and participates in a bioenergy crop system research and demonstration project. .