Short title

This Act may be cited as the

Rural Energy Investment Act of 2012

Findings

Congress finds that— (1)production of energy from domestic sources offers considerable economic and energy security benefits to the United States, including enduring and desirable jobs; (2)the agricultural and forestry sectors of the United States offer significant potential for production of renewable energy; (3)both renewable energy production and adoption of energy efficiency offer considerable environmental benefits; and (4)investments in energy efficiency projects and renewable energy systems in rural areas of the United States provide very significant energy security, economic, and environmental benefits to the entire United States in addition to the rural area benefits.

Definitions

Section 9001 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101) is amended— (1)by redesignating paragraphs (5) through (14) as paragraphs (6) through (15), respectively; and (2)by inserting after paragraph (4) the following:

(5)

Biochemical

The term biochemical means a chemical derived from renewable biomass.

Biobased markets program

Section 9002 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102) is amended— (1)in subsection (a)— (A)in paragraph (3), by adding at the end the following:

(F)

Biobased product designations

Not later than 1 year after the date of enactment of this subparagraph, the Secretary shall— (i)increase the number of categories of biobased products designated and individual biobased products eligible for preferred purchasing by 50 percent; (ii)begin to designate intermediate ingredients or feedstocks in the guidelines issued under this paragraph; and (iii)develop a recommendation for the designation of complex and finished biobased products in those guidelines. (G)

Changes in procurement mechanisms

(i)

Electronic product procurement catalogs

The Secretary shall work with relevant officials in agencies that have electronic product procurement catalogs to identify and implement solutions to increase the visibility of biobased and other sustainable products. (ii)

Agency-specific product specifications

(I)

In general

Not later than 1 year after the date of enactment of this subparagraph and every 4 years thereafter, the Secretary, in coordination with other appropriate officials, shall work with the senior sustainability officer of each agency that has established agency-specific product specifications to review and revise the product specifications to ensure that, to the maximum extent practicable, the product specifications— (aa)require the use of sustainable products, including biobased products designated in accordance with this section; and (bb)do not contain any language prohibiting the use of biobased products. (II)

Report

Results of the reviews conducted under subclause (I) shall be reported annually to the Office of Management and Budget, the Office of Science and Technology Policy, and the appropriate committees of Congress. (H)

Reporting

(i)

In general

Not later than 1 year after the date of enactment of this subparagraph, the Secretary and the Federal Acquisition Regulatory Council shall jointly propose an amendment to the Federal Acquisition Regulation to require reporting of biobased product purchases, to be made public on an annual basis. (ii)

Reporting template

After the promulgation of the proposed amendment described in clause (i), the Secretary, in consultation with the Chief Acquisition Officers Council, shall develop and make available a reporting template to facilitate the annual reporting requirement.

; and

(B)by adding at the end the following:

(5)

Compliance

The Secretary may take such action as the Secretary determines to be necessary— (A)to determine the compliance rate among Federal agencies in buying designated biobased products; and (B)to determine whether vendor and contractor claims about biobased products meeting item designation definitions and minimum required biobased content are accurate.

;

(2)in subsection (b)— (A)in paragraph (3)— (i)by striking The Secretary and inserting the following:

(A)

In general

The Secretary

; and

(ii)by adding at the end the following:

(B)

Auditing and compliance

The Secretary may carry out such auditing and compliance activities as the Secretary determines to be necessary to ensure compliance with subparagraph (A), including the imposition of a civil penalty of not more than $10,000 on a person who misuses the label and, after receiving a notice of violation, fails to take action to correct the misuse described in the notice.

; and

(B)by adding at the end the following:

(4)

Complex and finished products

Not later than 1 year after the date of enactment of this paragraph, the Secretary shall develop a recommendation for labeling complex and finished products.

;

(3)by redesignating subsections (d) through (h) as subsections (e) through (i), respectively; (4)by inserting after subsection (c) the following:

(d)

Outreach, education, and promotion

(1)

In general

The Secretary shall carry out a program of outreach, education, and promotion activities intended to increase knowledge, awareness, and benefits of biobased products. (2)

Authorized activities

In carrying out this subsection, the Secretary, at a minimum, shall— (A)not later than 1 year after the date of enactment of this paragraph, update all existing BioPreferred and related sustainable acquisition training materials of the Department; (B)work cooperatively with the senior sustainability officers and chief acquisition officers of Federal agencies to immediately implement such BioPreferred program agency education and outreach programs as are necessary to meet the requirements of this section; (C)work actively with groups that support employment for the blind or disabled, such as the Committee for Purchase From People Who Are Blind or Severely Disabled, to promote education and outreach regarding BioPreferred AbilityOne products to— (i)program, technical, and contracting personnel; and (ii)Federal agency purchase card holders; (D)conduct consumer education and outreach (including consumer and awareness surveys); (E)conduct outreach to and support for State and local governments interested in implementing biobased purchasing programs; (F)partner with industry and nonprofit groups to produce educational and outreach materials and conduct educational and outreach events; (G)sponsor special conferences and events to bring together buyers and sellers of biobased products; and (H)support pilot and demonstration projects.

;

(5)in subsection (h) (as redesignated by paragraph (3)), by adding at the end the following:

(3)

Jobs creation research and report

Not later than 2 years after the date of enactment of this paragraph, the Secretary shall carry out a study, and submit to the President and the appropriate committees of Congress a report, on job creation and the economic impact associated with the biobased product industry, including— (A)the number of jobs in the United States originating from the biobased product industry annually over the preceding 10 years, including the job changes in specific sectors; (B)the dollar value of the domestic biobased products industry at the time of the report, including intermediates, feedstocks, and finished products, but excluding biofuels; (C)a forecast for biobased job creation potential over the next 10 years; (D)a forecast for growth in the biobased industry over the next 10 years; and (E)jobs data for both biofuels and biobased products, with data generated separately for each category.

; and

(6)in subsection (i) (as redesignated by paragraph (3))— (A)in paragraph (1)— (i)in subparagraph (A), by striking and at the end; (ii)in subparagraph (B), by striking the period at the end and inserting ; and; and (iii)by adding at the end the following:

(C)$4,000,000 for each of fiscal years 2013 through 2017.

; and

(B)in paragraph (2), by inserting and $4,000,000 for each of fiscal years 2013 through 2017 before the period at the end.

Biorefinery assistance

Section 9003 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8103) is amended— (1)in subsection (b)(2), by inserting or a biochemical after biofuel each place it appears in subparagraphs (A) and (B); (2)in subsection (c)(1), by inserting or biochemicals after biofuels; (3)in subsection (d)(2)(C)— (A)in clause (i), by inserting or biochemical after biofuel; and (B)in clause (iii), by inserting or biochemicals after biofuels; (4)in subsection (e)(1)(C)— (A)in clause (i), by inserting or biochemical after biofuel; and (B)in clauses (iii) and (vii), by inserting or biochemicals after biofuels each place it appears; and (5)in subsection (h)— (A)in paragraph (1)— (i)in subparagraph (A), by striking and at the end; (ii)in subparagraph (B), by striking the period at the end and inserting ; and; and (iii)by adding at the end the following:

(C)$75,000,000 for each of fiscal years 2013 through 2017.

; and

(B)in paragraph (2), by inserting and $75,000,000 for each of fiscal years 2013 through 2017 before the period at the end.

Biodiesel fuel education program

Section 9006 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8106) is amended by striking subsection (d) and inserting the following:

(d)

Funding

(1)

Mandatory funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $1,000,000 for each of fiscal years 2013 through 2017, to remain available until expended. (2)

Discretionary funding

In addition to any other funds made available to carry out this section, there is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2013 through 2017.

Rural Energy for America Program

Section 9007 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107) is amended— (1)in subsection (b)(2)— (A)in subparagraph (C), by striking and at the end; (B)by redesignating subparagraph (D) as subparagraph (E); and (C)by inserting after subparagraph (C) the following:

(D)a nonprofit organization; and

;

(2)in subsection (c)— (A)by striking paragraph (1) and inserting the following:

(1)

Loan guarantee and grant program

(A)

In general

In addition to any similar authority, the Secretary shall provide loan guarantees and grants to agricultural producers and rural small businesses— (i)to purchase renewable energy systems, including— (I)systems that may be used to produce and sell electricity, such as for agricultural, and associated residential, purposes; and (II)unique components of renewable energy systems; and (ii)to make energy efficiency improvements. (B)

Tiered application process

(i)

In general

In providing loan guarantees and grants under this subsection, the Secretary shall use a 3-tiered application process that reflects the sizes of proposed projects in accordance with this subparagraph. (ii)

Tier 1

The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is not more than $80,000. (iii)

Tier 2

The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is greater than $80,000 but less than $200,000. (iv)

Tier 3

The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is equal to or greater than $200,000. (v)

Application process

The Secretary shall establish an application, evaluation, and oversight process that is most simplified for tier I projects and more comprehensive for each subsequent tier.

;

(B)in paragraph (2)— (i)in subparagraph (A), by inserting so as to ensure that the program supports a diversity of technologies across the United States before the semicolon at the end; (ii)in subparagraph (C), by inserting and public health before benefits; and (iii)by striking paragraph (F) and inserting the following:

(F)the natural resource conservation benefits of the renewable energy system; and;

(C)in paragraph (3)— (i)in subparagraph (A), by inserting in an amount not to exceed $100,000 per grant after in the form of grants; and (ii)by striking subparagraph (C); (D)in paragraph (4)(C), by striking 75 percent of the cost and inserting all eligible costs; and (E)by adding at the end the following:

(5)

Requirement

In carrying out this section, the Secretary shall not require a second meter for on-farm residential portions of rural projects connected to the grid.

;

(3)in subsection (f)— (A)by striking Not later and inserting the following:

(1)

In general

Not later

; and

(B)by adding at the end the following:

(2)

Subsequent report

Not later than 4 years after the date of enactment of this paragraph, the Secretary shall submit to Congress a report on activities carried out under this section, including the outcomes achieved by projects funded under this section.

; and

(4)in subsection (g)— (A)in paragraph (1)(D), by striking fiscal year 2012 and inserting each of fiscal years 2012 through 2017; and (B)in paragraph (3), by inserting and $70,000,000 for each of fiscal years 2013 through 2017 before the period at the end.

Biomass research and development

Section 9008 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8108) is amended— (1)by striking biofuels and each place it appears in subsections (b), (c)(3), (d)(2)(A), (e), and (g)(2) and inserting biofuels, biochemicals, and; (2)in subsection (e)— (A)in paragraph (2)— (i)in subparagraph (A)— (I)by striking at prices competitive with fossil fuels and inserting and biobased products; and (II)by inserting and after the semicolon at the end; (ii)by striking subparagraph (B); (iii)by redesignating subparagraph (C) as subparagraph (B); and (iv)in subparagraph (B) (as so redesignated), by inserting biochemicals, after bioenergy,; (B)in paragraph (3)— (i)in subparagraph (B), in the subparagraph heading, by inserting

, biochemicals,

after

Biofuels

; and (ii)by striking subparagraph (C); (C)by striking paragraph (4); and (D)by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively; and (3)in subsection (h)— (A)in paragraph (1)— (i)in subparagraph (C), by striking and at the end; (ii)in subparagraph (D), by striking the period at the end and inserting ; and; and (iii)by adding at the end the following:

(E)$30,000,000 for each of fiscal years 2013 through 2017.

; and

(B)in paragraph (2), by inserting and $30,000,000 for each of fiscal years 2013 through 2017 before the period at the end.

Rural energy self-sufficiency initiative

Section 9009(d) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8109(d)) is amended by inserting and $10,000,000 for each of fiscal years 2013 through 2017 before the period at the end.

10.

Biomass crop assistance program

Section 9011 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8111) is amended— (1)in subsection (a)— (A)in paragraph (4)(B)(ii), by striking or has the potential to become invasive or noxious; (B)in paragraph (5)— (i)in subparagraph (B), in the matter preceding clause (i), by striking The term and inserting Except as provided in subparagraph (C), the term; and (ii)by adding at the end the following:

(C)

Certain conservation programs

Land described in clause (iii), (iv), or (v) of subparagraph (B) may be prepared for biomass production before October 1 of the current fiscal year, as determined by the Secretary, if a contract described in that clause that covers the land will expire at the end of the current fiscal year.

; and

(C)by adding at the end the following:

(9)

Qualifying eligible material

The term qualifying eligible material means an eligible material, including residue from crops described in paragraph (6)(B)(i), that before transport and delivery to the biomass conversion facility— (A)is collected or harvested by the eligible material owner— (i)directly from— (I)National Forest System land; (II)Bureau of Land Management land; (III)non-Federal land; or (IV)land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States; and (ii)in accordance with— (I)applicable law and land management plans; (II)a conservation, forest stewardship, or equivalent plan, as determined by the Secretary; (III)Executive Order 13112 (42 U.S.C. 4321 note; relating to invasive species); and (IV)if harvested from Federal land, the requirements for old growth forest maintenance, restoration, and management direction provided by section 102 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512) for Federal land; and (B)if woody, is removed as a byproduct of preventive treatments to— (i)reduce hazardous fire fuels; (ii)reduce or contain disease or insect infestation; (iii)reduce or contain invasive species; or (iv)improve ecosystem health in accordance with a landscape scale strategy, as determined by the Secretary.

;

(2)in subsection (c)— (A)in paragraph (2)(B)— (i)in clause (vii)— (I)in subclause (II), by striking and at the end; (II)in subclause (III), by adding and at the end; and (III)by adding at the end the following:

(IV)geographic and feedstock diversity of the proposed BCAP project area as compared with existing BCAP project areas;

;

(ii)in clause (viii), by striking and at the end; (iii)by redesignating clause (ix) as clause (x); and (iv)by inserting after clause (viii) the following:

(ix)the prospects for significant producer participation; and

;

(B)in paragraph (3)(C)(ii), by striking 15 and inserting 7; and (C)in paragraph (5)— (i)in subparagraph (B)— (I)in the matter preceding clause (i), by striking the amount and inserting Except as provided in subparagraph (D), the amount; (II)by striking 75 percent and inserting 50 percent; and (III)by inserting but not to exceed $500 per acre after by the contract; and (ii)by adding at the end the following:

(D)

Beginning, socially disadvantaged, and geographically disadvantaged farmers or ranchers

In the case of a beginning, socially disadvantaged, or geographically disadvantaged farmer or rancher (as determined by the Secretary), the amount of an establishment payment under this subsection shall be up to 75 percent of the costs of establishing an eligible perennial crop covered by the contract but not to exceed $750 per acre, including the costs described in clauses (i) through (iii) of subparagraph (B).

;

(3)in subsection (d)— (A)in paragraph (1), by inserting qualifying before eligible material both places it appears; (B)in paragraph (2)(B)— (i)by striking paragraph (3) and inserting paragraph (4); and (ii)by striking $45 per ton for a period of 2 years and inserting $25 per ton for a period of up to 3 years; (C)by redesignating paragraph (3) as paragraph (4); and (D)by inserting after paragraph (2) the following:

(3)

Limitation on assistance with collection, harvest, storage, and transportation

To ensure effective administration of this subsection, the Secretary may— (A)require such documentation from producers or persons seeking payments as the Secretary considers necessary; (B)establish limits on the total number and amounts of payments received by any producer or person under this subsection; and (C)implement any additional requirements the Secretary determines necessary.

; and

(4)by striking subsection (f) and inserting the following:

(f)

Funding

(1)

Mandatory funding

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $75,000,000 for each of fiscal years 2013 through 2017, of which not more than $15,000,000 for each fiscal year may be used for collection, harvest, storage, and transportation. (2)

Discretionary funding

In addition to any other funds made available to carry out this section, there is authorized to be appropriated to carry out this section $75,000,000 for each of fiscal years 2013 through 2017

11.

Forest biomass for energy

Section 9012(d) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8112(d)) is amended by striking 2012 and inserting 2017.

12.

Community wood energy program

Section 9013(e) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8113(e)) is amended by striking 2012 and inserting 2017.

13.

Budgetary effects

The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled Budgetary Effects of PAYGO Legislation for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior to the vote on passage.