[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1884 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1884

    To amend the Farm Security and Rural Investment Act of 2002 to 
  reauthorize and improve agricultural energy programs, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 26, 2007

  Mr. Salazar 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 
  reauthorize and improve agricultural energy programs, 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 ``Harvesting Energy 
Act of 2007''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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

Sec. 101. Federal procurement of biobased products.
Sec. 102. Biorefinery development grants.
Sec. 103. Biodiesel fuel education program.
Sec. 104. Energy audit and renewable energy development program.
Sec. 105. Renewable energy systems and energy efficiency improvements.
Sec. 106. Biomass research and development.
Sec. 107. Cooperative research and extension projects.
Sec. 108. Continuation of bioenergy program.
Sec. 109. Research, extension, and educational programs on biobased 
                            technologies and products.
Sec. 110. Research and demonstration grants for biochar production 
                            systems.
Sec. 111. Strategic biofuel feedstock reserve.
    TITLE II--DIRECT PAYMENTS FOR VALUE-ADDED AND RENEWABLE ENERGY 
                              ENTERPRISES

Sec. 201. Direct payments for value-added and renewable energy 
                            enterprises.
                        TITLE III--CONSERVATION

Sec. 301. Conservation security program.
Sec. 302. Environmental quality incentives program.
Sec. 303. Funding and administration.
                    TITLE IV--CLEAN ENERGY PRACTICES

Sec. 401. Flexible fuel vehicles.
             TITLE V--RESEARCH, DEVELOPMENT, AND EDUCATION

Sec. 501. High-priority research and extension initiatives.
Sec. 502. Research and development.
Sec. 503. Renewable energy research, education, and educational 
                            program.
Sec. 504. Renewable electricity and renewable fuels research and 
                            development.
   TITLE VI--FARM AND RURAL APPLICATIONS FOR PLUG-IN ELECTRIC DRIVE 
                                VEHICLES

Sec. 601. Farm and rural applications for plug-in electric drive 
                            vehicles.

                            TITLE I--ENERGY

SEC. 101. FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.

    Section 9002(k)(2)(A) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8102(k)(2)(A)) is amended by striking ``2007'' and 
inserting ``2012''.

SEC. 102. BIOREFINERY DEVELOPMENT GRANTS.

    Section 9003(h) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8103(h)) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 103. BIODIESEL FUEL EDUCATION PROGRAM.

    Section 9004(d) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8104(d)) is amended by striking ``2007'' and inserting 
``2012''.

SEC. 104. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT PROGRAM.

    Section 9005(i) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8105(i)) is amended by striking ``2002 through 2007'' 
and inserting ``2008 through 2012''.

SEC. 105. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENTS.

    (a) Pyrolysis and Thermochemical Conversion Systems.--Section 
9006(a)(1) of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8106(a)(1)) is amended by inserting ``, including pyrolysis and 
thermochemical conversion systems that can provide fuel and energy and 
electricity for use on farm or for sale'' after ``systems''.
    (b) Funding.--Section 9006 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8106) is amended by striking 
subsection (f) and inserting the following:
    ``(f) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall make available to carry out this section 
$280,000,000 for each of fiscal years 2008 through 2012, of which not 
less than $30,000,000 shall be used to assist in the purchase of 
pyrolysis and thermochemical conversion systems described in subsection 
(a)(1).''.

SEC. 106. BIOMASS RESEARCH AND DEVELOPMENT.

    (a) Biomass Research and Development Initiative.--Section 307 of 
the Biomass Research and Development Act of 2000 (7 U.S.C. 8606) is 
amended--
            (1) in subsection (d)(1)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``diversified'' after ``development of'';
                    (B) in subparagraph (A), by inserting ``(including 
                native grasses and short-rotation trees)'' after 
                ``dedicated crops''; and
                    (C) by striking subparagraph (C) and inserting the 
                following:
                    ``(C) the harvesting, handling, processing, 
                transportation, and storage (including improvement of 
                process technologies for the harvesting, processing, 
                and preparation components) of feedstocks, including 
                agricultural, forest, and waste products; and'';
            (2) in subsection (e)(3), by inserting ``, and to identify 
        best practices to maximize water efficiency'' after ``biobased 
        products''; and
            (3) in subsection (g)--
                    (A) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``2010'' and inserting 
                        ``2012'';
                            (ii) in subparagraph (A), by striking ``20 
                        percent'' and inserting ``15 percent''; and
                            (iii) in subparagraph (D), by striking ``5 
                        percent'' and inserting ``10 percent''; and
                    (B) in paragraph (3), by striking ``2010'' and 
                inserting ``2012''.
    (b) Funding.--Section 310 of the Biomass Research and Development 
Act of 2000 (7 U.S.C. 8609) is amended--
            (1) in subsection (a), by striking paragraph (2) and 
        inserting the following:
            ``(2) $200,000,000 for each of fiscal years 2008 through 
        2012;''; and
            (2) in subsection (b), by striking ``2015'' and inserting 
        ``2012''.

SEC. 107. COOPERATIVE RESEARCH AND EXTENSION PROJECTS.

    Section 221 of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 6711) is amended by striking ``2007'' each place it appears and 
inserting ``2012''.

SEC. 108. CONTINUATION OF BIOENERGY PROGRAM.

    (a) Feedstock Residue Management Program.--Section 9010 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 8108) is amended--
            (1) in subsection (b), by striking ``subsection (c)'' each 
        place it appears in paragraphs (4) and (6) and inserting 
        ``subsection (e)'';
            (2) by redesignating subsection (c) as subsection (e); and
            (3) by inserting after subsection (b) the following:
    ``(c) Feedstock Residue Management Program.--
            ``(1) In general.--As part of the program carried out under 
        this section, the Secretary shall establish a feedstock residue 
        management program under which the Secretary shall provide 
        incentives to agricultural producers (including forest owners) 
        to properly collect, store, and transport cellulosic feedstocks 
        for biofuel production.
            ``(2) Incentives.--In providing incentives under this 
        subsection, the Secretary shall ensure, to the maximum extent 
        practicable, that water quality, soil quality, wildlife 
        habitat, and air quality are protected and enhanced.
    ``(d) Transition Assistance Program.--
            ``(1) In general.--As part of the program carried out under 
        this section, the Secretary shall establish a transition 
        assistance program for biomass energy feedstocks under which 
        the Secretary shall provide funds to cellulosic biorefineries 
        for use in making transition payments to agricultural 
        producers, forest landowners, and ranchers for the conversion 
        of land to energy crop production in preparation for bioenergy 
        operations.
            ``(2) Requirements.--In carrying out the program under this 
        subsection, the Secretary shall--
                    ``(A) require an agricultural producer, forest 
                landowner, or rancher participating in the program to 
                establish, on land of the agricultural producer, forest 
                landowner, or rancher, 1 or more crops of perennial 
                plant material (such as switch-grass or short-rotation 
                trees);
                    ``(B) require that, with respect to a land 
                conversion described in paragraph (1), an agricultural 
                producer, forest landowner, or rancher shall ensure the 
                protection and enhancement of soil quality and the 
                prevention of soil erosion, nutrient leaching, and run 
                off, particularly if the converted land is withdrawn 
                from or otherwise was previously enrolled in the 
                conservation reserve program established under 
                subchapter B of chapter 1 of subtitle D of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) 
                or other reserve program or is marginal, sensitive, or 
                eroded land; and
                    ``(C) provide to the agricultural producer, forest 
                landowner, or rancher an annual payment during the 
                period required to establish the crops on the land of 
                the agricultural producer, forest landowner, or 
                rancher.''.
    (b) Funding.--Subsection (e) of section 9010 of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 8108) (as redesignated by 
subsection (a)(2)) is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(3) $158,000,000 for fiscal year 2008, of which there 
        shall be used to carry out subsection (c) not less than 
        $8,000,000; and
            ``(4) $325,000,000 for each of fiscal years 2009 through 
        2012, of which--
                    ``(A) there shall be used to carry out subsection 
                (c) not less than--
                            ``(i) $16,000,000 for fiscal year 2009;
                            ``(ii) $32,000,000 for fiscal year 2010;
                            ``(iii) $44,000,000 for fiscal year 2011; 
                        and
                            ``(iv) $75,000,000 for fiscal year 2012; 
                        and
                    ``(B) there shall be used to carry out subsection 
                (d) not more than $150,000,000 for each fiscal year.''.

SEC. 109. RESEARCH, EXTENSION, AND EDUCATIONAL PROGRAMS ON BIOBASED 
              TECHNOLOGIES AND PRODUCTS.

    (a) Database.--Section 9011(e)(2) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8109(e)(2)) is amended by adding at 
the end the following:
                    ``(C) Database.--To be eligible to receive a grant 
                under this paragraph, not later than 1 year after the 
                date of enactment of this subparagraph, each land-grant 
                college or university that receives a grant shall make 
                available to the public all information on biomass and 
                other renewable energy resources, in a centralized, 
                interactive database or wiki created and maintained by 
                the Secretary.''.
    (b) Priorities.--Section 9011(f)(1) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8109(f)(1)) is amended by striking the 
period at the end and inserting ``, including--
                    ``(A) the development of regional-scale agronomic 
                production systems for energy feedstocks;
                    ``(B) regional-scale analysis of natural resource 
                management and environmental impacts of residue 
                removal;
                    ``(C) development of economically useful biobased 
                byproducts; and
                    ``(D) the facilitation of economic diversification 
                in rural communities.''.
    (c) Authorization of Appropriations.--Section 9011(j)(1)(C) of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8109(j)(1)(C)) 
is amended by striking ``2010'' and inserting ``2015''.

SEC. 110. RESEARCH AND DEMONSTRATION GRANTS FOR BIOCHAR PRODUCTION 
              SYSTEMS.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is amended by adding at the end the following:

``SEC. 9012. RESEARCH AND DEMONSTRATION GRANTS FOR BIOCHAR PRODUCTION 
              SYSTEMS.

    ``(a) Definition of Biochar.--In this section, the term `biochar' 
means charcoal or biomass-derived black carbon that is added to soil to 
improve soil fertility, nutrient retention, and carbon sequestration.
    ``(b) Grants.--The Secretary shall award competitive grants to 
eligible entities to assist in paying the cost of research and 
development to develop and commercialize biochar production systems on 
multiple scales (including on a single farm, local community, and 
cooperative scale), with a goal of creating production systems that 
maximize the coproduction of renewable energy and biochar for use as a 
soil enhancement.
    ``(c) Eligible Entities.--To be eligible to receive a grant under 
this section, an entity shall be an eligible entity described in 
section 9003(d).
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2008 through 2012.''.

SEC. 111. STRATEGIC BIOFUEL FEEDSTOCK RESERVE.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) (as amended by section 110) is amended by adding 
at the end the following:

``SEC. 9013. STRATEGIC BIOFUEL FEEDSTOCK RESERVE.

    ``(a) Definitions.--In this section:
            ``(1) Eligible commodity.--The term `eligible commodity' 
        means a biofuel feedstock that is produced in the United 
        States.
            ``(2) Feedstock reserve.--The term `feedstock reserve' 
        means the sum of all eligible commodities stored by producers 
        in accordance with subsection (b)(2).
            ``(3) Producer.--The term `producer' has the meaning given 
        the term in section 1001.
    ``(b) Program.--The Secretary shall carry out a strategic biofuel 
feedstock reserve program under which the Secretary shall--
            ``(1) purchase eligible commodities from producers; and
            ``(2) store the eligible commodities with the producers.
    ``(c) Purchases.--
            ``(1) In general.--The Secretary shall purchase an eligible 
        commodity at commercial rates in order to establish, maintain, 
        or enhance the feedstock reserve in any case in which, as 
        determined by the Secretary--
                    ``(A) the eligible commodity is in abundant supply;
                    ``(B) there is need for adequate carryover stocks 
                to ensure a reliable supply of the eligible commodities 
                to meet renewable energy demands;
                    ``(C) the average price of the eligible commodity 
                in a county is less than 100 percent of the applicable 
                loan rate for a nonrecourse marketing assistance loan 
                made available under subtitle B of title I; and
                    ``(D) the purchase is necessary to ensure an 
                adequate supply of a renewable fuel in the marketplace.
            ``(2) Limitation.--Purchases by the Secretary under 
        paragraph (1) shall be limited to--
                    ``(A) the type and quantity of an eligible 
                commodity necessary to provide for not more than 1 year 
                of estimated use for renewable energy purposes; and
                    ``(B) quantities of an eligible commodity for 
                research and development of renewable fuels.
    ``(d) Sale of Stocks.--An eligible commodity shall not be sold from 
the feedstock reserve unless--
            ``(1) the average market price of the eligible commodity in 
        the United States is not less than the applicable loan rate for 
        a nonrecourse marketing assistance loan made available under 
        subtitle B of title I; and
            ``(2) the eligible commodity will be used to produce 
        renewable energy.
    ``(e) Storage Payments.--Payments made by the Secretary for the 
storage of an eligible commodity shall reflect local commercial storage 
rates.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2008 through 2012.''.

    TITLE II--DIRECT PAYMENTS FOR VALUE-ADDED AND RENEWABLE ENERGY 
                              ENTERPRISES

SEC. 201. DIRECT PAYMENTS FOR VALUE-ADDED AND RENEWABLE ENERGY 
              ENTERPRISES.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) (as amended by section 111) is amended by adding 
at the end the following:

``SEC. 9014. DIRECT PAYMENTS FOR VALUE-ADDED AND RENEWABLE ENERGY 
              ENTERPRISES.

    ``(a) Definitions.--In this section:
            ``(1) Producer.--The term `producer' has the meaning given 
        the term in section 1001.
            ``(2) Qualified value-added enterprise.--The term 
        `qualified value-added enterprise' means a value-added or 
        renewable energy business enterprise that--
                    ``(A)(i) adds value to an agricultural product 
                (including ethanol, methanol, electrical power, 
                biodiesel, wind, building materials, lubricants, soil 
                amendments such as biochar, bio-oils or biogases, and 
                adhesives); or
                    ``(ii) improves the production of an agricultural 
                commodity through efficiency gains or environmental 
                benefits;
                    ``(B) is located in a rural area (as defined in 
                section 343(a) of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 1991(a)); and
                    ``(C) is certified by the Secretary.
    ``(b) Program.--The Secretary shall carry out a program under which 
the Secretary shall provide direct payments to producers to match the 
equity investment of the producers in qualified value-added 
enterprises.
    ``(c) Amount.--A direct payment described in subsection (b) shall 
not exceed $10,000.
    ``(d) Use of Funds.--A producer may use funds received under this 
section only to invest in qualified value-added enterprises located in 
the same region as the producer.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section for 
each of fiscal years 2008 through 2012.''.

                        TITLE III--CONSERVATION

SEC. 301. CONSERVATION SECURITY PROGRAM.

    (a) In General.--Section 1238A(a) of the Food Security Act of 1985 
(16 U.S.C. 3838a(a)) is amended by striking ``2011'' and inserting 
``2012''.
    (b) Technical Assistance.--Section 1238C(g) of the Food Security 
Act of 1985 (16 U.S.C. 3838c(g)) is amended by striking ``2007'' and 
inserting ``2012''.
    (c) Biomass Feedstock Pilot Program.--Subchapter A of chapter 2 of 
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3838 et seq.) is amended by adding at the end the following:

``SEC. 1238D. BIOMASS FEEDSTOCK PILOT PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Biomass.--
                    ``(A) In general.--In this section, the term 
                `biomass' means any biological matter that is available 
                on a renewable or recurring basis.
                    ``(B) Inclusions.--The term `biomass' includes--
                            ``(i) agricultural crops and trees;
                            ``(ii) wood and wood wastes and residues;
                            ``(iii) plants (including aquatic plants);
                            ``(iv) grasses;
                            ``(v) residue;
                            ``(vi) fibers; and
                            ``(vii) animal waste, municipal waste, and 
                        other waste material.
            ``(2) Local area.--The term `local area' means an area that 
        is physically located within a 75-mile radius of an existing or 
        proposed biorefinery.
    ``(b) Program.--The Secretary shall carry out a pilot program under 
which the Secretary shall offer to enter into conservation security 
contracts with eligible producers (including agricultural producers, 
ranchers, and forest landowners) in a local area that produce biomass 
feedstocks using methods that enhance soil, water, and air quality and 
conserve natural resources.''.
    (d) Biochar Demonstration Projects.--Subchapter A of chapter 2 of 
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 
3838 et seq.) (as amended by subsection (c)) is amended by adding at 
the end the following:

``SEC. 1238E. BIOCHAR DEMONSTRATION PROJECTS.

    ``(a) Definition of Biochar.--In this section, the term `biochar' 
means charcoal or biomass-derived black carbon that is added to soil to 
improve soil fertility, nutrient retention, and soil carbon 
sequestration.
    ``(b) Demonstration Projects.--In carrying out the conservation 
security program under this subchapter, the Secretary shall carry out 
demonstration projects that demonstrate, on a farm-scale and local 
agricultural cooperative-scale, the advantages of using biochar 
production systems (including pyrolysis and thermocombustion systems) 
to improve renewable energy production and protect and enhance soil 
quality.
    ``(c) Use of Biochar To Generate Agricultural Credits for Carbon 
Trading.--
            ``(1) In general.--The Secretary shall carry out 
        demonstration projects under this section in a manner that 
        demonstrates the manner in which biochar may be used to 
        generate agricultural credits for carbon trading in any 
        greenhouse gas emissions reduction program.
            ``(2) Sources of greenhouse gas emissions reductions.--In 
        carrying out this subsection, the Secretary shall, to the 
        maximum extent practicable, demonstrate that greenhouse gas 
        emissions reductions can be achieved from--
                    ``(A) fossil fuel displacement through on-farm 
                production of bioenergy using a biochar production 
                system;
                    ``(B) the building of stable soil sinks, using 
                biochar; and
                    ``(C) reduced nitrous oxide emissions associated 
                with--
                            ``(i) the impact of biochar in soils; and
                            ``(ii) reductions in nitrogen fertilizer 
                        requirements due to greater fertilizer 
                        efficiencies with biochar applications.
            ``(3) High-priority research and demonstration.--In 
        carrying out this subsection, the Secretary shall, to the 
        maximum extent practicable, promote high-priority research and 
        demonstration by--
                    ``(A) in the case of biochar production and 
                commercialization--
                            ``(i) producing a consistent, high-quality 
                        biochar product and an analysis of the 
                        properties, chemical structure, and performance 
                        of biochar in different soil types;
                            ``(ii) optimizing coproduction of biochar 
                        and bioenergy; and
                            ``(iii) scaling up of biochar production;
                    ``(B) in the case of biochar behavior in the 
                environment, analyzing--
                            ``(i) biochar performance by soil type, 
                        feedstock, and production method; and
                            ``(ii) application rates and effects in 
                        soils; and
                    ``(C) in the case of economic and life-cycle 
                issues, analyzing--
                            ``(i) the full production costs versus the 
                        economic benefits of biochar;
                            ``(ii) the impact of biochar on greenhouse 
                        gas emissions, including the performance of 
                        biochar in carbon markets;
                            ``(iii) the availability of feedstocks or 
                        competition of biochar with other biofuels;
                            ``(iv) the impact of biomass removal on 
                        soil quality and erosion;
                            ``(v) the potential to reduce fertilizer 
                        use, greenhouse gas emissions, nutrient 
                        leaching, and run-off; and
                            ``(vi) the potential to reduce water 
                        pollution from feedlot runoff by capturing 
                        ammonia as a valuable addition to agricultural 
                        charcoal.
    ``(d) Funding.--Of the funds that are made available to carry out 
this subchapter, the Secretary shall use to carry out this section not 
less than $20,000,000 for each of fiscal years 2008 through 2012.''.

SEC. 302. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) In General.--Section 1240B(a)(1) of the Food Security Act of 
1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by striking ``2010'' and 
inserting ``2012''.
    (b) Allocation of Funding.--Section 1240B(g) of the Food Security 
Act of 1985 (16 U.S.C. 3839aa-2(g)) is amended--
            (1) by striking ``For each of fiscal years 2002 through 
        2007'' and inserting the following:
            ``(1) Livestock production.--For each of fiscal years 2002 
        through 2012''; and
            (2) by adding at the end the following:
            ``(2) Bioenergy products.--For each of fiscal years 2008 
        through 2012, the Secretary may use funds made available to 
        carry out this chapter to facilitate practices relating to the 
        production of bioenergy products, including by assisting 
        producers--
                    ``(A) to install biodigesters, biogasifiers, or 
                biochar production units;
                    ``(B) to conserve water;
                    ``(C) to control erosion;
                    ``(D) to improve wildlife habitat; and
                    ``(E) to enhance soil quality.''.
    (c) Ground and Surface Water Conservation.--Section 1240I(c)(1)(C)) 
of the Food Security Act of 1985 (16 U.S.C. 3839aa-9(c)(1)(C)) is 
amended by striking ``2007'' and inserting ``2012''.

SEC. 303. FUNDING AND ADMINISTRATION.

    Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
3841(a)) is amended in the matter preceding paragraph (1) by striking 
``2007'' and inserting ``2012''.

                    TITLE IV--CLEAN ENERGY PRACTICES

SEC. 401. FLEXIBLE FUEL VEHICLES.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) (as amended by section 201) is amended by adding 
at the end the following:

``SEC. 9015. FLEXIBLE FUEL VEHICLES.

    ``(a) Definitions.--In this section:
            ``(1) Flexible fuel vehicle.--The term `flexible fuel 
        vehicle' means--
                    ``(A) a GEM flex fuel vehicle; and
                    ``(B) a vehicle warranted by the manufacturer of 
                the vehicle to operate on biodiesel.
            ``(2) GEM flex fuel vehicle.--
                    ``(A) In general.--The term `GEM flex fuel vehicle' 
                means a motor vehicle warranted by the manufacturer of 
                the vehicle to operate on gasoline, E85, and M85.
                    ``(B) Related definitions.--In subparagraph (A):
                            ``(i) E85.--The term `E85' means a fuel 
                        blend containing 85 percent ethanol and 15 
                        percent gasoline, by volume.
                            ``(ii) M85.--The term `M85' means a fuel 
                        blend containing 85 percent methanol and 15 
                        percent gasoline, by volume.
    ``(b) Use of Flexible Fuel Vehicles.--Beginning not later than 180 
days after the date of enactment of this section, the Secretary shall 
ensure that all vehicles purchased or leased by the Department of 
Agriculture are flexible fuel vehicles that, to the maximum extent 
practicable, use biobased fuels.''.

             TITLE V--RESEARCH, DEVELOPMENT, AND EDUCATION

SEC. 501. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

    (a) High-Priority Research and Extension Areas.--Section 1672(e) of 
the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5925(e)) is amended by adding at the end the following:
            ``(46) Biochar research.--Research grants may be made under 
        this section to promote--
                    ``(A) biochar technology for adding charcoal or 
                biomass-derived black carbon to soil to improve soil 
                fertility, nutrient retention, and carbon 
                sequestration; and
                    ``(B) the movement of the technology from a pre-
                commercial to a fully-commercialized state.''.
    (b) Funding.--Section 1672(h) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5925(h)) is amended by 
striking ``1999 through 2007'' and inserting ``2008 through 2012, of 
which not less $20,000,000 shall be used each fiscal year to make 
grants described in subsection (e)(46)''.

SEC. 502. RESEARCH AND DEVELOPMENT.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) (as amended by section 401) is amended by adding 
at the end the following:

``SEC. 9016. RESEARCH AND DEVELOPMENT OF RENEWABLE ENERGY.

    ``(a) In General.--The Secretary, in conjunction with the Colorado 
Renewable Energy Collaboratory, shall carry out a research and 
development program relating to renewable energy--
            ``(1) to conduct research on and develop high-quality 
        energy crops that--
                    ``(A) have high energy production values;
                    ``(B) are cost efficient for producers and 
                refiners;
                    ``(C) are well suited to high yields with minimal 
                inputs in arid and semiarid regions; and
                    ``(D) are regionally appropriate;
            ``(2) to conduct research on and develop biorefining and 
        biofuels through multidisciplinary research, including research 
        relating to--
                    ``(A) biochemical engineering;
                    ``(B) process engineering;
                    ``(C) thermochemical engineering;
                    ``(D) product engineering; and
                    ``(E) systems engineering;
            ``(3) to develop cost-effective methods for the harvesting, 
        handling, transport, and storage of cellulosic biomass 
        feedstocks;
            ``(4) to conduct research on and develop fertilizers from 
        biobased sources other than hydrocarbon fuels;
            ``(5) to develop energy- and water-efficient irrigation 
        systems;
            ``(6) to research and develop water-efficient biofuel 
        production technologies;
            ``(7) to research and develop additional biobased products;
            ``(8) in cooperation with the Department of Energy and the 
        Department of Defense, to develop storage technologies for 
        wind- and solar-generated power for small-scale and utility-
        scale generation facilities; and
            ``(9) in cooperation with the Department of Energy, to 
        research fuel cell technologies for use in farm, ranch, and 
        rural applications.
    ``(b) Funding.--
            ``(1) Mandatory funds.--
                    ``(A) Transfer.--In addition to any other funds 
                made available under paragraph (2), beginning 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, 
                $5,000,000 to carry out this section, to remain 
                available until expended.
                    ``(B) Receipt and acceptance.--The Secretary shall 
                be entitled to receive, shall accept, and shall use to 
                carry out this section the funds transferred under 
                subparagraph (A), without further appropriation.
            ``(2) Authorization of appropriations.--In addition to any 
        other funds made available under paragraph (1), there are 
        authorized to be appropriated--
                    ``(A) $110,000,000 to the Under Secretary for 
                Research, Education, and Economics, acting through the 
                Agricultural Research Service, for cellulosic biofuel 
                research for each of fiscal years 2008 through 2012;
                    ``(B) $110,000,000 to the Secretary and the 
                Secretary of Energy for the development of smaller-
                scale biorefineries and biofuel plants for each of 
                fiscal years 2008 through 2012; and
                    ``(C) such sums as are necessary to carry out this 
                section.''.

SEC. 503. RENEWABLE ENERGY RESEARCH, EDUCATION, AND EDUCATIONAL 
              PROGRAM.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) (as amended by section 502(a)) is amended by 
adding at the end the following:

``SEC. 9017. RENEWABLE ENERGY RESEARCH, EDUCATION, AND EDUCATIONAL 
              PROGRAM.

    ``(a) In General.--The Secretary, in cooperation with the 
Administrator of the Environmental Protection Agency and the Secretary 
of Energy, shall establish a program under which the Secretary shall--
            ``(1) establish a standardized protocol for market-based 
        trading of greenhouse gas emissions reductions from soil carbon 
        sequestration, based on existing technologies to measure, 
        monitor, and verify soil carbon sequestration and increases in 
        soil carbon stocks associated with agricultural management 
        practices;
            ``(2) revise the standardized protocols established under 
        paragraph (1) as necessary and as technological advancements 
        warrant, to ensure full market participation and remuneration 
        for those credits in market-based greenhouse gas emissions 
        reduction programs;
            ``(3) provide information to agricultural producers 
        concerning the economic (including market-based sale and 
        trading opportunities) and environmental benefits of 
        conservation and management practices that increase soil carbon 
        sequestration; and
            ``(4) provide grants to--
                    ``(A) land-grant colleges and universities (as 
                defined in section 9011(b))--
                            ``(i) to develop renewable energy and 
                        value-added curricula that provide training for 
                        individuals pursuing careers in the renewable 
                        energy field (including individuals majoring in 
                        renewable energy engineering);
                            ``(ii) to provide extension services 
                        relating to renewable energy; and
                            ``(iii) to encourage cellulosic biofuel 
                        research; and
                    ``(B) nonprofit organizations to educate fleet 
                operators and the public about the benefits of 
                biodiesel and other renewable fuels.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.

SEC. 504. RENEWABLE ELECTRICITY AND RENEWABLE FUELS RESEARCH AND 
              DEVELOPMENT.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) (as amended by section 503) is amended by adding 
at the end the following:

``SEC. 9018. RENEWABLE ELECTRICITY AND RENEWABLE FUELS RESEARCH AND 
              DEVELOPMENT.

    ``(a) Joint Research With the Department of Energy.--
            ``(1) National goal.--It is a goal of the United States 
        that by calendar year 2025, the costs of producing electricity 
        in the United States from renewable resources shall be reduced 
        by at least 45 percent from the cost of producing electricity 
        from renewable resources as of the date of enactment of this 
        section.
            ``(2) Study.--The Secretary and the Secretary of Energy 
        (referred to in this subsection as the `Secretaries') shall 
        jointly carry out a study that--
                    ``(A) identifies research, development, 
                demonstration, and deployment steps necessary to 
                achieve the national goal described in paragraph (1);
                    ``(B) comprehensively examines the infrastructure 
                needs of the renewable fuels sector, including a study 
                of biofuel pipeline needs and feasibility;
                    ``(C) assesses the water requirements necessary to 
                produce and process biobased and renewable energy 
                feedstocks from agricultural production, forestry, and 
                waste;
                    ``(D) determines whether adequate water resources 
                are projected to be available to meet--
                            ``(i) the requirements described in 
                        subparagraph (C); and
                            ``(ii) current and projected drinking 
                        water, sanitation, and ecosystem needs;
                    ``(E) identifies best practices to maximize water 
                efficiency; and
                    ``(F) quantifies and verifies the carbon 
                sequestration benefits of various bioenergy and 
                agricultural crops and practices, including the 
                development of models to estimate the carbon 
                sequestration benefits for different crops on different 
                soils.
            ``(3) Report.--Not later than 3 years after the date of 
        enactment of this section, and every 3 years thereafter, the 
        Secretaries shall submit to Congress a report that includes--
                    ``(A) the progress of the Secretaries in meeting 
                the national goal described in paragraph (1);
                    ``(B) any recommendations of the Secretaries to 
                ensure that the national goal is met; and
                    ``(C) the results of the study carried out under 
                paragraph (2), including recommendations--
                            ``(i) to ensure delivery of adequate 
                        renewable fuels and feedstocks to the market; 
                        and
                            ``(ii) to ensure the availability of 
                        adequate water resources.
    ``(b) Additional Research and Development.--The Secretary shall 
carry out a research and development program under which the Secretary 
shall study--
            ``(1) the use of alternative, renewable feedstocks and 
        power sources, including livestock waste, to produce biofuels;
            ``(2) methods to sustainably increase agricultural and 
        forestry crop energy yields while enhancing environmental 
        benefits, in particular improving soil quality and air quality;
            ``(3) methods of developing small-scale and distributed 
        renewable energy technologies;
            ``(4) biochar, animal agriculture residues, and other 
        potential non-fossil-fuel-based, renewable fertilizers to 
        integrate energy production or agricultural management 
        practices with enhanced soil quality and long-term carbon 
        sequestration;
            ``(5) the development of efficient and environmentally-
        sensitive harvesting equipment, including as 1-pass equipment, 
        for agricultural production and forestry;
            ``(6) the use of algae for the production of biodiesel and 
        other biobased fuels and energy;
            ``(7) the use of biotechnology, under acceptable protocols, 
        to develop and deploy high-yielding or easily-fermentable 
        biomass energy feedstocks or syngas derived from biomass energy 
        feedstocks; and
            ``(8) methods to develop and deploy distributed or portable 
        biomass feedstock processing systems.
    ``(c) Safety Protocols.--The Secretary shall carry out a program 
under which the Secretary provides coordination, outreach, and 
technical assistance to develop protocols for--
            ``(1) the safe introduction of new biomass energy 
        feedstocks, including by allowing crop testing to determine 
        local compatibility while protecting existing agriculture and 
        habitats;
            ``(2) the safe disposal of livestock and poultry carcasses, 
        including alternative uses; and
            ``(3) the environmentally-sound production of feedstocks 
        and use wastes for energy production.
    ``(d) Funding.--
            ``(1) In general.--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) $120,000,000 to carry out subsection (a);
                    ``(B) $120,000,000 to carry out subsection (b); and
                    ``(C) $60,000,000 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.''.

   TITLE VI--FARM AND RURAL APPLICATIONS FOR PLUG-IN ELECTRIC DRIVE 
                                VEHICLES

SEC. 601. FARM AND RURAL APPLICATIONS FOR PLUG-IN ELECTRIC DRIVE 
              VEHICLES.

    (a) Definitions.--In this section:
            (1) Plug-in electric drive vehicle.--The term ``plug-in 
        electric drive vehicle'' means a precommercial vehicle that--
                    (A) draws motive power from a battery of at least 4 
                kWh;
                    (B) can be recharged from an external source of 
                electricity for motive power; and
                    (C) is a light-duty, medium-duty, or heavy-duty on-
                road or nonroad vehicle.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Establishment.--The Secretary, after consultation with the 
Secretary of Energy, shall establish a competitive demonstration 
program to provide grants on a cost-shared basis to State governments, 
local governments, air pollution control districts, private or 
nonprofit entities, and any combinations of those entities, to carry 
out a projects to demonstrate farm and rural applications for plug-in 
electric drive vehicles.
    (c) Applications.--The Secretary shall establish requirements for 
applications for grants under this section, including, at a minimum, a 
requirement that an applicant shall describe the means by which the 
applicant will collect and summarize data for dissemination to the 
Department, other grantees, and the public, on--
            (1) vehicle and component performance, including 
        performance of the battery, energy management, and charging 
        systems, under various driving speeds, trip ranges, traffic, 
        and other driving conditions;
            (2) vehicle and component costs, including acquisition, 
        operating, and maintenance costs;
            (3) vehicle emissions, including emissions of greenhouse 
        gases; and
            (4) petroleum displacement as a result of the project.
    (d) Solicitation.--Not later than 180 days after the date of 
enactment of this Act, and annually thereafter, the Secretary shall 
solicit proposals to demonstrate plug-in hybrid electric vehicles.
    (e) Selection Criteria.--
            (1) Priority.--In providing grants under this section, the 
        Secretary shall--
                    (A) take into consideration the experience of each 
                applicant with respect to plug-in hybrid electric 
                vehicles; and
                    (B) give priority to applicants that--
                            (i) demonstrate a path to commercialization 
                        for the vehicles demonstrated; and
                            (ii) are likely to make a significant 
                        contribution to the advancement of the 
                        technology and production in the United States.
            (2) Scope.--The Secretary shall ensure that projects 
        carried out using a grant provided under this section--
                    (A) demonstrate the operation of plug-in hybrid 
                vehicles under various driving speeds, trip ranges, 
                driving conditions, climate conditions, and topography 
                conditions;
                    (B) demonstrate light-, medium-, and heavy-duty 
                vehicles with a variety of battery and engine-turn-on 
                control systems;
                    (C) demonstrate plug-in hybrid vehicles in a 
                variety of applications, including--
                            (i) farm equipment applications;
                            (ii) rural school bus applications;
                            (iii) mass market passenger and light-duty 
                        truck applications in rural areas; and
                            (iv) fleet applications in rural areas;
                    (D) demonstrate vehicles from original equipment 
                manufacturers, Tier I suppliers, or other entities 
                capable of achieving commercialization of the 
                technology; and
                    (E) provide an opportunity for innovation and 
                creativity from small and breakthrough technology 
                companies.
    (f) Other Requirements.--
            (1) Continuing eligibility.--An applicant that has received 
        a grant under this section for a fiscal year--
                    (A) may submit to the Secretary an application 
                under this section for a subsequent fiscal year; but
                    (B) shall receive grants for an aggregate amount of 
                not more than $20,000,000 for the period of fiscal 
                years 2008 through 2013.
            (2) Information.--The Secretary shall ensure that 
        nonproprietary information, test data, specifications, and 
        other information obtained by participants in the program under 
        this section are--
                    (A) shared among participants in the program; and
                    (B) made available to other interested parties, 
                including applicants of the program.
            (3) Certain applicants.--A battery manufacturer that 
        proposes to supply to an applicant for a grant under this 
        section for use in a plug-in hybrid vehicle a battery with a 
        capacity of greater than 1 kilowatt-hour shall--
                    (A) ensure that the applicant includes in the 
                application a description of the price of the battery 
                per kilowatt hour;
                    (B) on approval by the Secretary of the 
                application, publish, or permit the Secretary to 
                publish, the price described in subparagraph (A); and
                    (C) for any order received by the battery 
                manufacturer for at least 1,000 batteries, offer the 
                batteries at that price.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $60,000,000 for each of fiscal 
years 2008 through 2012, of which $20,000,000 shall be available only 
for use in providing grants to local and municipal units of government.
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