[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 36 Introduced in Senate (IS)]
110th CONGRESS
1st Session
S. 36
To amend the Farm Security and Rural Investment Act to establish a
biofuels promotion program to promote sustainable production of
biofuels and biomass, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 23, 2007
Mr. Thune (for himself and Mr. Nelson of Nebraska) 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 to establish a
biofuels promotion program to promote sustainable production of
biofuels and biomass, 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. BIOFUELS INNOVATION PROGRAM.
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. BIOFUELS INNOVATION PROGRAM.
``(a) Purpose.--The purpose of this section is to establish a
Biofuels Innovation Program--
``(1) to encourage production of dedicated energy crops in
a sustainable manner that protects the soil, air, water, and
wildlife of the United States; and
``(2) to provide financial and technical assistance to
owners and operators of eligible cropland to produce dedicated
energy crops and crop mixes of suitable quality and in
sufficient quantities to support and induce development and
expansion of the use of the crop for--
``(A) biofuels;
``(B) power or heat generation to supplement or
replace nonbiobased energy sources; and
``(C) biobased products to supplement or replace
non biobased products;
``(3) to establish Biofuels Innovation Program project
areas; and
``(4) to provide financial and technical assistance to
owners and operators for harvesting, storing, and transporting
cellulosic material.
``(b) Definitions.--In this section:
``(1) Beginning farmer or rancher.--The term `beginning
farmer or rancher' has the meaning given the term in section
343(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1991(a)).
``(2) BIP.--The term `BIP' means the Biofuels Innovation
Program established under this section.
``(3) BIP project area.--The term `BIP project area' means
an area that--
``(A) has eligible cropland that--
``(i) is owned or operated by eligible
participants; and
``(ii) has specified boundaries that are
submitted to the Secretary by eligible
participants and subsequently approved by the
Secretary; and
``(B) is physically located within a 70-mile radius
of an existing or proposed biofuels facility or another
boundary, as determined by the Secretary.
``(4) Conservation reserve program.--The term `conservation
reserve program' means 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.).
``(5) Conservation security program.--The term
`conservation security program' means the conservation security
program established under 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.).
``(6) Contract acreage.--The term `contract acreage' means
eligible cropland that is--
``(A) enrolled in the BIP by an eligible
participant; and
``(B) covered by a BIP contract entered into with
the Secretary.
``(7) Eligible cropland.--
``(A) In general.--The term `eligible cropland'
means land that the applicable county committee of the
Farm Service Agency determines--
``(i) is currently being tilled for the
production of a crop for harvest; or
``(ii) is not currently being tilled but
has been tilled in a prior crop year and is
suitable for production of an eligible
dedicated energy crop.
``(B) Inclusions.--The term `eligible cropland'
includes--
``(i) land that in the native state of the
land was not forest land, if the land is
planted with nonwoody eligible dedicated energy
crops and, for at least 3 of the 5 crop years
preceding the date of enactment of this
section, the land has been--
``(I) devoted to managed pasture;
or
``(II) enrolled in the conservation
reserve program and the conservation
reserve program contract has been
voluntarily terminated or is expired;
and
``(ii) land that in the native state of
land was forest land, if the land is planted
with woody or nonwoody eligible dedicated
energy crops and the land has been--
``(I) forest land but subsequently
clear-cut during the 2-year period
ending on the date of enactment of this
section; or
``(II) converted from forest land
before the 5-year period ending on the
date of enactment of this section and--
``(aa) has been tilled for
the production of a crop for
harvest;
``(bb) devoted to managed
pasture; or
``(cc) enrolled in the
conservation reserve program
for at least 3 of the 5 five
crop years preceding the date
of enactment of this section
and is no longer covered by a
conservation reserve program
contract.
``(C) Exclusions.--The term `eligible cropland'
does not include--
``(i) Federally-owned land;
``(ii) land enrolled in--
``(I) the conservation reserve
program;
``(II) the grassland reserve
program; or
``(III) the wetlands reserve
program;
``(iii) land with greater than 50 percent
cover of native nonwoody vegetation or forest
land, as of the date of enactment of this
section (other than land described in
subparagraph (B)(iii)); and
``(iv) land that historically was not
native forest land, if planted to woody crops.
``(8) Eligible dedicated energy crop.--
``(A) In general.--The term `eligible dedicated
energy crop' means any crop native to the United
States, or another crop, as determined by the
Secretary, grown specifically to provide raw materials
for--
``(i) conversion to liquid transportation
fuels or chemicals through biochemical or
thermochemical processes; or
``(ii) energy generation through
combustion, pyrolysis, or cofiring.
``(B) Exclusions.--The term `eligible dedicated
energy crop' does not include--
``(i) any crop that is eligible for
payments under title I or a successor title; or
``(ii) any plant that is invasive or
noxious or has the potential to become invasive
or noxious, as determined by--
``(I) the Secretary of the Interior
(acting through the United States Fish
and Wildlife Service);
``(II) the Secretary; or
``(III)(aa) the head of an
applicable State department of
agriculture; or
``(bb) the head of an applicable
State conservation agency.
``(9) Eligible participant.--The term `eligible
participant' means an owner or operator of contract acreage
that is physically located within a BIP project area .
``(10) Federally-owned land.--The term `Federally-owned
land' means land owned by--
``(A) the Federal Government (including any
department, instrumentality, bureau, or agency of the
Federal Government); or
``(B) any corporation whose stock is wholly owned
by the Federal Government.
``(11) Forest land.--The term `forest land' means an
ecosystem that is at least 1 acre in size (including timberland
and woodland) and that (as determined by the Secretary)--
``(A) is characterized by dense and extensive tree
cover;
``(B) contains, or once contained, at least 10
percent tree crown cover; and
``(C) is not developed and planned for exclusive
nonforest resource use.
``(12) Grassland reserve program.--The term `grassland
reserve program' means the grassland reserve program
established under subchapter C of chapter 2 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et
seq.).
``(13) Managed pasture.--The term `managed pasture' means
land that--
``(A) is currently vegetated with less than 25
percent native plant cover;
``(B) has been converted from noncropland to
cropland during the 30-year period ending on the date
of enactment of this section; and
``(C) has been actively managed for intensive
livestock grazing.
``(14) Operator.--The term `operator' means an individual,
entity, or joint operation that, as determined by the
applicable county committee of the Farm Service Agency, is in
general control of the farming operations on a farm during the
applicable crop year.
``(15) Owner.--
``(A) In general.--The term `owner' means a person
that has legal ownership of eligible cropland.
``(B) Inclusion.--The term `owner' includes--
``(i) a person that is buying eligible
cropland under a contract for deed;
``(ii) a person that has a life estate in
eligible cropland; and
``(iii) for the purposes of enrolling
eligible cropland in the BIP, a person that has
purchased a farm in a foreclosure proceeding
and--
``(I) the redemption period has not
passed; and
``(II) the original owner has not
redeemed the property.
``(16) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Natural Resources
Conservation Service.
``(17) Socially disadvantaged farmer or rancher.--The term
`socially disadvantaged farmer or rancher' means a farmer or
rancher who--
``(A) is a member of a socially disadvantaged group
(as defined in section 355(e) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 2003(e)));
``(B) has limited resources; or
``(C) is a member of a federally recognized Indian
tribe.
``(18) State.--The term `State' means each of the several
States of the United States.
``(19) Wetlands reserve program.--The term `wetlands
reserve program' means the wetlands reserve program established
under subchapter C of chapter 1 of subtitle D of title XII of
the Food Security Act of 1985 (16 U.S.C. 3837 et seq.).
``(c) Establishment.--Not later than 180 days after the date of
enactment of this section, the Secretary shall establish a Biofuels
Innovation Program in accordance with this section.
``(d) Proposals for BIP Project Areas.--
``(1) In general.--To be considered a BIP project area, an
eligible applicant shall submit to the Secretary, through the
Under Secretary for Rural Development, for approval a written
proposal that--
``(A) identifies the eligible cropland that will be
a part of the proposed BIP project area; and
``(B) indicates a strong likelihood that the
proposed BIP project area will generate a sufficient
quantity of biomass from eligible dedicated energy
crops and acres or other sources to supply an existing
biofuels facility, or to attract a new biofuels
facility to an area, to meet the purposes of the BIP.
``(2) Minimum requirements.--The written proposal for a
proposed BIP project area shall include, at a minimum--
``(A) a description of the eligible cropland of
each eligible participant that will participate in the
proposed BIP project area, including--
``(i) the quantity of eligible cropland of
each eligible participant;
``(ii) the physical location of the
eligible cropland;
``(iii) the 1 or more eligible dedicated
energy crops that will be produced on the
eligible cropland; and
``(iv) the type of land use or crop that
will be displaced by the eligible dedicated
energy crop;
``(B)(i) the name, if available, and type,
location, and description of the existing or proposed
biofuel facility that will use the eligible dedicated
energy crops to be produced in the proposed BIP project
area;
``(ii) a letter of commitment to build a proposed
bioenergy facility that will use the eligible dedicated
energy crops intended to be produced in the proposed
BIP project area; or
``(iii) a letter of commitment from an existing
bioenergy facility that the facility will use the
eligible dedicated energy crops intended to be produced
in the proposed BIP project area;
``(C) a general analysis of the anticipated local
economic impact of the proposed BIP project; and
``(D) any additional information needed to
determine the eligibility for, and ranking of, the
proposal, as determined by the Secretary.
``(3) Eligible applicants.--Applicants that are eligible to
submit a proposal for a BIP project area include--
``(A) a collective group of owners and operators
producing or proposing to produce eligible dedicated
energy crops;
``(B) an energy or agricultural company or
refinery;
``(C) a Resource Conservation and Development
council; and
``(D) any other entity that submits an acceptable
proposal for production and use of an eligible
dedicated energy crop that promotes the purposes of the
BIP.
``(4) Individual owners and operators.--An individual owner
or operator may not submit an individual proposal to
participate in the BIP.
``(e) Eligibility Criteria for BIP Project Areas.--
``(1) Establishment.--The Secretary shall establish a
system for ranking BIP project areas.
``(2) Criteria.--The Secretary shall rank proposed BIP
project areas on the basis of whether (in order of ranking)--
``(A) there is a high probability that the eligible
dedicated energy crops proposed to be produced in the
proposed BIP project area will be used for the purposes
of the BIP;
``(B) the proposed BIP project area includes
applications of eligible participants that provide
adequate potential feedstocks and suitable placement
with respect to existing or proposed bioenergy
facility;
``(C) a significant potential for a positive
economic impact exists in the proposed BIP project
area;
``(D) ownership of the biofuels facility in the
proposed BIP project area is available to producers and
local investors;
``(E) the participation rate by beginning farmers
or ranchers or socially disadvantaged farmers or
ranchers;
``(F) the proposed BIP project area includes
applications of eligible participants that have the
greatest potential to improve soil conservation and
water quality, and enhance wildlife habitat, when
compared to existing land uses; and
``(G) the proposed eligible dedicated energy crop
harvesting practices on contract acreage maximize land
stewardship and habitat goals.
``(f) Business Planning and Assistance Grants.--
``(1) In general.--The Secretary, acting through the Under
Secretary for Rural Development, shall provide BIP business
planning and assistance grants to eligible applicants--
``(A) for the purpose of--
``(i) establishing BIP project areas; and
``(ii) hiring consultants and technical and
other relevant experts for the purpose of
providing expert guidance and technical
assistance to potential eligible participants;
and
``(B) in an amount not to exceed $30,000 in
matching funds, at a rate of $3 for every $2 provided
by the eligible applicant.
``(2) Inclusions.--Funds provided under this subsection may
be used to conduct feasibility analyses and planning for
inclusion of--
``(A) agricultural waste biomass;
``(B) sustainably-harvested agricultural and forest
residues; and
``(C) biomass produced on land subject to a BIP
contract.
``(3) Limitation.--The total amount of funds used to carry
out this subsection shall not exceed $5,000,000.
``(g) Forest Biomass Planning Grants.--
``(1) In general.--The Secretary shall provide forest
biomass planning assistance grants to private landowners to
develop forest stewardship plans that involve sustainable
management of biomass from land of the private landowners that
will preserve diversity, soil, water, or wildlife values of the
land, while ensuring a steady supply of biomass material,
through--
``(A) State forestry agencies, in consultation with
State wildlife agencies; and
``(B) technical service provider arrangements with
third-party, independent forest sustainability
certification programs.
``(2) Limitation.--The total amount of funds used to carry
out this subsection shall not exceed $5,000,000.
``(h) Maximum Enrollment.--The Secretary shall enroll not more than
5,000,000 acres of eligible cropland in the BIP at any 1 time.
``(i) Duration of Contract.--
``(1) In general.--Subject to paragraph (2), for purposes
of carrying out the BIP, the Secretary shall enter into
contracts of 10 years.
``(2) Early termination.--The Secretary may terminate a
contract early if the Secretary determines that--
``(A) contract acreage will not be used to produce
an eligible dedicated energy crop (as determined not
earlier than 5 years after entering into a contract);
``(B) a material breach of the contract has
occurred;
``(C) the owner or operator has died; or
``(D) continuation of the contract will cause undue
economic hardship.
``(j) Effect of Noncompliance Due to Circumstances Beyond Control
of Producers.--The Secretary shall include in each contract entered
into under this section a provision to ensure that a producer shall not
be considered to be in violation of the contract for failure to comply
with 1 or more requirements of the contract due to circumstances beyond
the control of the producer, including any disaster-related condition,
as determined by the Secretary.
``(k) Reserve Acreage.--
``(1) In general.--Subject to paragraphs (2) and (3), for
each year of participation in the BIP, at least 20 percent of
the contract acreage shall remain unharvested.
``(2) Rotation.--The location of the unharvested contract
acreage shall rotate from year-to-year.
``(3) Nonapplicability.--Paragraph (1) shall not apply--
``(A) to land that is used to meet any BIP
requirement for diverse vegetated buffers under
subsection (l)(3)(D); and
``(B) during any crop year in which a natural
disaster is declared by the Secretary for production
losses under section 321(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1961(a)) in the
county in which the enrolled land is located.
``(l) Contract Acreage Requirements.--
``(1) In general.--On approval of a BIP project area by the
Secretary, each eligible participant in the BIP project area
shall enter into a contract with the Secretary that is
consistent with the BIP.
``(2) Additional eligible participants.--The Secretary may
add eligible participants to a BIP project area after approval
of the BIP project area.
``(3) Conservation practices.--To ensure the sustainability
of farm operations and the protection of soil, air, water and
wildlife, to be eligible to participate in the BIP, an eligible
participant shall agree that--
``(A) harvesting of eligible dedicated energy crops
shall not occur during the primary nesting or brood
rearing seasons of bird species nesting in the BIP
project area;
``(B) stubble remnants for nonwoody crops shall be
of sufficient height to provide for wildlife cover and
soil protection, with minimum stubble remnants that are
not less than 10 inches in height, or another minimum
height as determined by--
``(i) the Secretary of the Interior, acting
through the United States Fish and Wildlife
Service;
``(ii) the Secretary;
``(iii) the head of each applicable State
fish and wildlife agency; and
``(iv) the head of each applicable State
conservation agency;
``(C) soil conservation plans, designed and
approved by the Secretary, shall be implemented by the
eligible participant for preventing erosion on areas
planted and harvested for eligible dedicated energy
crops;
``(D) diverse vegetated buffers, the width,
characteristics, and management of which shall be
determined by Secretary, shall be established and
maintained at all times surrounding all water resources
on contract acreage; and
``(E) chemical inputs shall be minimized and
properly applied to ensure protection of soil, air,
water, and wildlife resources.
``(4) Purposes.--
``(A) In general.--Except as provided in
subparagraph (B), to be eligible to participate in the
BIP, an eligible participant may use eligible dedicated
energy crops produced on contract acreage only for the
purposes described in subsection (a).
``(B) Personal use.--During the period before the
commercial viability of a bioenergy facility, an
eligible participant may use eligible dedicated energy
crops produced by the eligible participant on contract
acreage for personal use.
``(C) Seed production.--During the period before
the commercial viability of a bioenergy facility, an
eligible participant may harvest and sell seed produced
on contract acreage.
``(5) Requirements.--To be eligible to participate in the
BIP, during the term of the BIP contract, an eligible
participant shall--
``(A) enter into a contract with the Secretary to
participate in the BIP and comply with the BIP
contract;
``(B) comply with--
``(i) the highly erodible land conservation
requirements of subtitle B of title XII of the
Food Security Act of 1985 (16 U.S.C. 3811 et
seq.); and
``(ii) the wetland conservation
requirements of subtitle C of title XII of that
Act (16 U.S.C. 3821 et seq.);
``(C)(i) plant at least 40 acres, or any other
quantity of acres specified by the Secretary, of an
eligible dedicated energy crop not later than 1 year
after entering into a BIP contract or within an
alternate time period specified by the Secretary; and
``(ii) produce an eligible dedicated energy crop on
the contract acreage throughout the term of the BIP
contract.
``(m) Additional Eligible Biomass.--
``(1) In general.--The Secretary may allow on land that is
enrolled in the conservation reserve program and located within
the BIP project area, in accordance with the soil-related,
water-related, and wildlife conservation purposes of the
conservation reserve program under contract terms governing
managed haying and grazing and the harvesting of biomass--
``(A) in exchange for a reduction of an applicable
annual payment in an amount to be determined by the
Secretary;
``(B) in accordance with an approved conservation
reserve program plan and applicable field office
technical guide standards;
``(C) in a manner that ensures that biomass harvest
activities occur outside the official nesting and brood
rearing season for those plans;
``(D) not more frequently than once every 3 years
after the date on which vegetative cover has been
established under the conservation reserve program;
``(E) as a result of forestry maintenance
activities, such as pruning, thinning, and timber stand
improvement, on land that has been converted to
forestry use--
``(i) in accordance with a conservation
plan; and
``(ii) in exchange for an applicable
reduction in the annual rental payment, as
determined by the Secretary; or
``(F) as a result of a midcontract management
activity, such as mowing or clipping, that is conducted
according to an approved conservation plan as
determined by the Secretary.
``(n) Payments for Collecting, Harvesting, Storing, and
Transporting Biomass Produced on BIP Contract Acreage, Agricultural
Waste Biomass, and Sustainably-Harvested Agricultural and Forest
Residues.--
``(1) In general.--Subject to paragraph (2), for the 2-year
period beginning on the date on which a biofuels facility
enters operation, the Secretary may provide matching payments
at a rate of $1 for every $1 per ton provided by the biofuels
facility, in an amount equal to not more than $45 per ton--
``(A) to eligible participants for biomass produced
on BIP contract acreage in exchange for a reduction of
the annual payment issued under subsection (r)(3), as
determined by the Secretary;
``(B) to any producer of agricultural waste biomass
or sustainably-harvested agricultural and forest
residues in the United States for the agricultural
waste or residue; and
``(C) for residue collected as a result of the
removal of noxious and invasive species, in accordance
with methods approved by the Secretary.
``(2) Eligibility.--Only owners of forest land acting
pursuant to a forest stewardship plan shall be eligible to
receive payments under this subsection.
``(o) Duties of Secretary.--The Secretary shall--
``(1) establish and administer the BIP;
``(2) authorize establishment of BIP project areas for the
purposes of the BIP described in subsection (a);
``(3) develop procedures--
``(A) to monitor the compliance of eligible
participants that have land enrolled in the BIP with
the requirements of the BIP;
``(B) to measure the performance of the BIP; and
``(C) to demonstrate whether the long-term eligible
dedicated energy crop production goals are being
achieved.
``(4) enter into a written contract with each eligible
participant that elects to participate in the BIP in a BIP
project area;
``(5) not enter into a contract under the BIP with an
individual owner or operator unless the land of the eligible
participant is physically located in an approved BIP project
area; and
``(6) provide all payments under the contract directly to
the eligible participant.
``(p) Relationship to Other Programs.--
``(1) Conservation security program.--Land enrolled in the
BIP may also be enrolled in the conservation security program
if all of the other requirements for participation in the
conservation security program are met.
``(2) Environmental credit programs.--The Secretary may
allow the sale of carbon credits, water quality credits, or
other environmental credits on land enrolled in BIP that do not
interfere with the purposes of the BIP.
``(q) Contracts.--A contract entered into between the Secretary and
an eligible participant under the BIP shall include, at a minimum,
terms that cover--
``(1) requirements for the eligible participant in carrying
out the contract, including requirements described in
subsections (i), (k), and (l);
``(2) a maintenance agreement to maintain the benefits of
the contract after the payment period, as determined by the
Secretary;
``(3) termination provisions;
``(4) payment terms and amounts to be provided on an annual
basis;
``(5) the sales or transfer of contract acreage;
``(6) the modification of the contract;
``(7) penalties in cases of a breach of the contract or
other situations;
``(8) the maximum quantity of contract acreage and an
estimated schedule for how much eligible cropland will be
enrolled each contract year; and
``(9) any additional terms the Secretary considers
appropriate.
``(r) Payments.--
``(1) In general.--The Secretary shall provide payments
directly to eligible participants who enter into contracts
described in subsection (q) in accordance with the subsection.
``(2) Cost-share payments.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary shall provide to an
eligible participant who enters into a BIP contract a
cost-share payment in an amount equal to 50 percent of
the costs of establishing an eligible dedicated energy
crop on the contract acreage covered by the contract.
``(B) Exceptions.--
``(i) Beginning and social disadvantaged
farmers or ranchers.--The amount of cost-share
payments made to beginning farmers or ranchers
and socially disadvantaged farmers or ranchers
shall be equal to 75 percent of the costs of
establishing an eligible dedicated energy crop
on the contract acreage.
``(ii) Polyculture crop mixes.--The amount
of cost-share payments made to any eligible
participant who establishes a polyculture crop
mix of at least 3 species of eligible dedicated
energy crops shall be equal to 90 percent of
the costs of establishing an eligible dedicated
energy crop on the contract acreage.
``(C) Eligible cost-share payments.--The costs for
which an eligible owner may receive a cost-share
payment under this paragraph include--
``(i) the cost of seeds and stock; and
``(ii) the cost of planting field buffer
strips, unless the owner and operator is
eligible for payments for those practices under
the continuous conservation reserve program.
``(3) Rental payments.--
``(A) In general.--The Secretary shall make annual
rental payments to an eligible participant who enters
into a BIP contract in an amount equal to the average
agricultural rental rate for land of similar
characteristics in the BIP project area during the
preceding 2-year period, as determined by the Secretary
using National Agricultural Statistic Services data or
another source (as determined by the Secretary).
``(B) Period.--
``(i) In general.--Except as provided in
clause (ii), an eligible participant shall
receive rental payments for a period of not
more than 5 years after entering into a BIP
contract with the Secretary on contract
acreage.
``(ii) Disasters.--If the Secretary
declares a natural disaster for production
losses under section 321(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C.
1961(a)) in the county in which contract
acreage is located for a crop year that
immediately follows the period described in
clause (i), the Secretary may provide rental
payments to eligible participants under this
paragraph for that crop year for contract
acreage that is located in the county.
``(C) Reduction.--The Secretary shall reduce rental
payments under (A) by an amount determined to be
appropriate by the Secretary, if an eligible dedicated
energy crop is harvested in accordance with subsection
(l)(4).
``(4) Bonus payments.--The Secretary shall provide bonus
payments to an eligible participant who enters into a BIP
contract if--
``(A) the production of an eligible dedicated
energy crop under the contract maximizes wildlife
diversity on the contract acreage; or
``(B) the farming operation of the eligible
participant is modified to address the needs of
wildlife species identified in a State wildlife
management plan.
``(5) Timing of payments.--
``(A) Cost-share payments.--The Secretary shall
provide cost-share payments to eligible participants
who enter into BIP contracts on the implementation of
the covered practices.
``(B) Rental and bonus payments.--The Secretary
shall make rental and bonus payments to eligible
participants who enter into BIP contracts on an annual
basis, based on the number of contract acres covered by
BIP contracts.
``(6) Enrolled land ineligible for commodity payments.--
Land enrolled in the BIP shall not be eligible to be used for
direct or counter-cyclical payments or any other payments under
title I or a successor title.
``(s) Eligibility.--
``(1) In general.--As a condition of entering into a
bioenergy crop transition assistance contract, the owners and
operators of a farm shall agree, as determined by the
Secretary, 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--
--
``(A) to promote the production of bioenergy crops
and the development of biorefinery technology; and
``(B) to evaluate the bioenergy transition
assistance.
``(2) 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 assistance under this section.
``(t) Technical Assistance.--An eligible participant who enters
into a BIP contract shall be eligible for conservation technical
assistance for conservation planning and implementation through the
Secretary or a qualified non-Federal entity that is approved by the
Secretary.
``(u) Training.--The Secretary shall establish training programs
for employees of the Cooperative Extension Service and other interested
entities and individuals on how to develop viable proposals for
participation in the BIP, including--
``(1) business plan development;
``(2) recruitment and organization of eligible
participants; and
``(3) the status of, and trends in, of the bioenergy
industry.
``(v) Funding.--Of the funds of the Commodity Credit Corporation,
the Secretary shall use to carry out this section such sums as are
necessary for each of fiscal years 2008 through 2012.''.
SEC. 2. RESEARCH, EXTENSION, AND EDUCATIONAL PROGRAMS ON BIOBASED
ENERGY TECHNOLOGIES AND PRODUCTS.
Section 9011 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8109) is amended to read as follows:
``SEC. 9011. RESEARCH, EXTENSION, AND EDUCATIONAL PROGRAMS ON BIOBASED
ENERGY TECHNOLOGIES AND PRODUCTS.
``(a) Purposes.--The purposes of the programs established under
this section are--
``(1) to enhance national energy security through the
development, distribution, and implementation of biobased
energy technologies;
``(2) to promote diversification in, and the environmental
sustainability of, agricultural production in the United States
through biobased energy and product technologies;
``(3) to promote economic diversification in rural areas of
the United States through biobased energy and product
technologies; and
``(4) to enhance the efficiency of bioenergy and biomass
research and development programs through improved coordination
and collaboration between the Department of Agriculture, the
Department of Energy, and the land-grant colleges and
universities.
``(b) Definition of Land-Grant Colleges and Universities.--In this
section, the term `land-grant colleges and universities' means--
``(1) 1862 Institutions (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7601));
``(2) 1890 Institutions (as defined in section 2 of that
Act) and West Virginia State College; and
``(3) 1994 Institutions (as defined in section 2 of that
Act).
``(c) Establishment.--To carry out the purposes described in
subsection (a), the Secretary shall establish programs under which--
``(1) the Secretary shall provide grants to sun grant
centers specified in subsection (d); and
``(2) the sun grant centers shall use the grants in
accordance with this section.
``(d) Grants to Centers.--The Secretary shall use amounts made
available for a fiscal year under subsection (j) to provide a grants in
equal amounts to each of the following sun grant centers:
``(1) North-central center.--A north-central sun grant
center at South Dakota State University for the region composed
of the States of Illinois, Indiana, Iowa, Minnesota, Montana,
Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming.
``(2) Southeastern center.--A southeastern sun grant center
at the University of Tennessee at Knoxville for the region
composed of--
``(A) the States of Alabama, Florida, Georgia,
Kentucky, Mississippi, North Carolina, South Carolina,
Tennessee, and Virginia;
``(B) the Commonwealth of Puerto Rico; and
``(C) the United States Virgin Islands.
``(3) South-central center.--A south-central sun grant
center at Oklahoma State University for the region composed of
the States of Arkansas, Colorado, Kansas, Louisiana, Missouri,
New Mexico, Oklahoma, and Texas.
``(4) Western center.--A western sun grant center at Oregon
State University for the region composed of--
``(A) the States of Alaska, Arizona, California,
Hawaii, Idaho, Nevada, Oregon, Utah, and Washington;
and
``(B) territories and possessions of the United
States (other than the territories referred to in
subparagraphs (B) and (C) of paragraph (2)).
``(5) Northeastern center.--A northeastern sun grant center
at Cornell University for the region composed of the States of
Connecticut, Delaware, Massachusetts, Maryland, Maine,
Michigan, New Hampshire, New Jersey, New York, Ohio,
Pennsylvania, Rhode Island, Vermont, and West Virginia.
``(e) Use of Funds.--
``(1) Centers of excellence.--Of the amount of funds that
are made available for a fiscal year to a sun grant center
under subsection (d), the center shall use not more than 25
percent of the amount for administration to support excellence
in science, engineering, and economics at the center to promote
the purposes described in subsection (a) through the State
agricultural experiment station, cooperative extension
services, and relevant educational programs of the university.
``(2) Grants to land-grant colleges and universities.--
``(A) In general.--The sun grant center established
for a region shall use the funds that remain available
for a fiscal year after expenditures made under
paragraph (1) to provide competitive grants to land-
grant colleges and universities in the region of the
sun grant center to conduct, consistent with the
purposes described in subsection (a), multi-
institutional and multi-State--
``(i) research, extension, and educational
programs on technology development; and
``(ii) integrated research, extension, and
educational programs on technology
implementation.
``(B) Programs.--Of the amounts that are used to
provide grants for a fiscal year under subparagraph
(A), the center shall use--
``(i) not less than 30 percent of the funds
to carry out programs described in subparagraph
(A)(i); and
``(ii) not less than 30 percent of the
funds to carry out programs described in
subparagraph (A)(ii).
``(3) Indirect costs.--A sun grant center may not recover
the indirect costs of making grants under paragraph (2) to
other land-grant colleges and universities.
``(f) Plan.--
``(1) In general.--Subject to the availability of funds
under subsection (j), in cooperation with other land-grant
colleges and universities and private industry in accordance
with paragraph (2), the sun grant centers shall jointly develop
and submit to the Secretary, for approval, a plan for
addressing at the State and regional levels the bioenergy,
biomass, and gasification research priorities of the Department
of Agriculture and the Department of Energy for the provision
of grants under paragraphs (1) and (2) of subsection (e).
``(2) Gasification coordination.--
``(A) In general.--In developing the plan under
paragraph (1) with respect to gasification research,
the sun grant centers identified in paragraphs (1) and
(2) of subsection (d) shall coordinate with land grant
colleges and universities in their respective regions
that have ongoing research activities with respect to
the research.
``(B) Funding.--Funds made available under
subsection (d) to the sun grant center identified in
subsection (e)(2) shall be available to carry out
planning coordination under paragraph (1).
``(g) Grants to Other Land-Grant Colleges and Universities.--
``(1) Priority.--In making grants under subsection (e)(2),
a sun grant center shall give a higher priority to programs
that are consistent with the plan approved by the Secretary
under subsection (f).
``(2) Term.--The term of a grant provided by a sun grant
center under subsection (e)(2) shall not exceed 5 years.
``(h) Sun Grant Biobased Energy and Products Information Analysis
Center.--The sun grant centers shall maintain a Sun Grant Biobased
Energy and Products Information Analysis Center at the sun grant center
specified in subsection (d)(1) to provide analysis and data management
support to sun grant centers, including--
``(1) regional-scale geographic information systems and
associated decision tools for biomass resource assessment;
``(2) regional-scale experimental design for bioenergy
feedstock production;
``(3) bioenergy research and education accountability
systems; and
``(4) the Sun Grant BioWeb, an online educational biomass
encyclopedia.
``(i) Annual Reports.--Not later than 90 days after the end of a
year for which a sun grant center receives a grant under subsection
(d), the sun grant center shall submit to the Secretary a report that
describes the policies, priorities, and operations of the program
carried out by the center during the year, including a description of
progress made in facilitating the priorities described in subsection
(f).
``(j) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section $100,000,000 for each of fiscal years
2008 through 2012.
``(2) Grant information analysis center.--Of amounts made
available under paragraph (1), not more than $5,000,000 for
each fiscal year shall be made available to carry out
subsection (h).''.
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