[Congressional Record Volume 151, Number 76 (Thursday, June 9, 2005)]
[Senate]
[Pages S6305-S6312]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN (for himself, Mr. Lugar, Mr. Obama, and Mr. 
        Coleman):
  S. 1210. A bill to enhance the national security of the United States 
by providing for the research, development, demonstration, 
administrative support, and market mechanisms for widespread deployment 
and commercialization of biobased fuels and biobased products, and for 
other purposes; to the Committee on Agriculture, Nutrition, and 
Forestry.
  Mr. HARKIN. Mr. President, over the past 100 years, the economy of 
the United States has become inextricably tied to the supply of 
petroleum. In the early part of the 20th century, America's abundant 
sources of petroleum helped drive tremendous improvements in quality of 
life, offering greater mobility through gasoline-powered 
transportation, and a whole host of new and innovative products made 
from plastics and other petroleum-based chemicals.
  But as the 20th century wore on, the costs of a petroleum-based 
economy grew increasingly apparent: pollution of air and water became a 
growing risk to our health and environment, and a growing dependence on 
foreign imports became an increasing risk to our economic and national 
security. Today, nearly two-thirds of the oil we use comes from 
overseas, much of it from hostile and unstable regimes.
  Instability in the oil-producing regions of the world, the growing 
threat of global warming, and record-high prices for gasoline at the 
pump all call for a new kind of economy for the 21st century: one based 
on a resource that is not only abundant, but clean, renewable and home-
grown.
  Today, biofuels like ethanol and biodiesel are making great inroads 
in reducing our foreign oil dependence. The biofuels industry will 
provide nearly 4 billion gallons of clean, domestically-produced fuel 
alternatives to gasoline and diesel this year. We need to ensure 
continued growth of renewable fuels, first by supporting a robust 
Renewable Fuels Standard of at least 8 billion gallons a year by 2012, 
and then by supporting additional measures to grow the ``bioeconomy.''
  That is why I am very proud today to be joined by my colleagues, 
Senator Lugar, Senator Obama, and Senator Coleman, in introducing the 
National Security and Bioenergy Investment Act of 2005. This important 
bipartisan legislation provides the research, development, 
demonstration, and market mechanisms necessary to move this country 
from an economy based largely on foreign oil, to one increasingly 
fueled with clean, renewable, domestically-grown biomass. It is an 
important compliment to a robust RFS, and a vital element of our energy 
future.
  According to the National Academies of Science, this country 
generates nearly 300 million tons of biomass each year--everything from 
corn stalks and wheat straw to forest trimmings and even segregated 
municipal waste. This biomass is currently sent to landfills or left in 
the fields after harvest in quantities greater than that needed to 
provide natural cover and nutrient replacement.
  The Natural Resources Defense Council estimates that by 2025, an 
additional 200 million tons of biomass could be generated each year 
from dedicated biomass crops such as native switchgrass, hybrid poplar 
and other woody crops, grown throughout the country. These crops 
require little or no fertilizer or chemical treatment, while helping to 
enhance soil quality and reduce runoff.
  Cellulose from biomass can be converted to ethanol, to provide a 
clean transportation fuel with potentially near-zero net carbon dioxide 
and sulfur emissions, and substantially reduced carbon monoxide, 
particulate and toxic emissions compared to petroleum-based fuel. The 
Natural Resources Defense Council estimates that by 2050 biomass could 
supply 50 percent of the nation's transportation fuel, dramatically 
reducing our dependence on foreign oil.
  Other products of the biomass refining process, such as biochemicals 
and bioplastics, can also complement or replace less environmentally-
friendly petroleum-based equivalents. For example, if all of the 
plastic used in the United States were made from biomass instead of 
petroleum, the Nation's oil consumption would decrease by 90 to 145 
million barrels a year. Biobased plastics can also be composted and 
converted back to soil instead of being thrown in a landfill.
  Biobased chemicals, lubricants and metal-working fluids are all 
available in the marketplace today, and offer safe, non-toxic 
alternatives to their petroleum-based counterparts. The National 
Academies of Science found that biomass could meet all of the Nation's 
needs for organic chemicals, replacing 700 million barrels of petroleum 
a year.
  But perhaps one of the greatest benefits of biobased fuels and 
products is to our rural economy. A mature biomass industry would 
create more than 1 million jobs and generate $5 billion annually in 
revenue for farmers. This represents a tremendous opportunity to grow 
and diversify sources of rural income, while reducing our dependence on 
foreign oil, bolstering national security and protecting the 
environment.
  However, several obstacles still remain. Current Federal programs to 
develop biomass crops, establish supply chains, and reduce the cost of 
biofuels production are under-funded and lack appropriate targeting. 
Potential biomass refinery developers remain reluctant to invest in 
construction of ``next generation'' plants due to the high level of 
financial risk. And, according to a recent report from the Government 
Accountability Office, biobased

[[Page S6306]]

purchase requirements and other bioeconomy measures at the U.S. 
Department of Agriculture have not been given the necessary priority 
for full implementation.
  A wide range of groups, including the Energy Future Coalition, the 
National Commission on Energy Policy, the Governors' Ethanol Coalition, 
and the Natural Resources Defense Council, is calling on Congress to 
invest in the bioeconomy as the best direction for the country's energy 
future.
  The time to act is now.
  This legislation implements several critical measures to help ensure 
the widespread deployment and commercialization of biobased fuels and 
products over the next 10 years.
  The bill substantially updates and improves the Biomass Research and 
Development Act by refining its objectives, providing greater focus on 
overcoming remaining technical barriers, and increasing funding. It 
authorizes $1 billion in research and development over five years to 
help today's successful biorefineries become the biorefineries of 
tomorrow, while developing advanced biomass crops, crop production 
methods, harvesting and transport technology to deliver abundant 
biomass to the refinery door.
  It creates a reverse auction of production incentives to deliver the 
first billion gallons of cellulosic biofuels at the lowest cost to 
taxpayers. Each year, cellulosic biofuels refiners will bid for 
assistance on a per gallon basis. Refiners who request the lowest level 
of assistance will earn production contracts. As the volume of biofuels 
production grows, competition will increase, and per gallon incentive 
rates will decrease. After the first billion gallons of annual 
production, cellulosic ethanol is expected to be competitive with 
gasoline without government assistance.
  It establishes a new Assistant Secretary position for Energy and 
Bioproduct Development at USDA to provide the necessary priority and 
resources for bioenergy and bioproduct programs. It expands the Federal 
Government biobased product procurement program of the 2002 farm bill 
to include government contractors. It also extends the program to the 
U.S. Capitol Complex, and establishes the Capitol as a showcase for 
biobased products.
  It creates grant programs to help small biobased businesses with 
marketing and certification of biobased products, and funds bioeconomy 
development associations and Land Grant institutions to support the 
growth of regional bioeconomies.
  The legislation calls on Congress to create tax incentives to 
encourage investment in production of biobased fuels and products, and 
it provides for education and outreach to promote producer investment 
in processing facilities and to heighten consumer awareness of biobased 
fuels and products.
  Together, these measures will send a strong signal to innovators, 
investors and biobased businesses that Congress is committed to 
advancing the bioeconomy. With full funding, this bill will deliver the 
technological advances needed to help make biobased fuels and products 
cost competitive with petroleum-based equivalents, and it will take a 
big step toward a future in which our cars run on clean-burning 
renewable fuels, our plastics turn to compost, and our Nation's farmers 
fortify our energy security.
  The bill has strong support from a broad coalition of agricultural 
producers, industry, clean energy, environment and national security 
groups. I have here several letters of endorsement.
  I ask unanimous consent that the text of the bill, and the 
accompanying letters of endorsement, be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1210

       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 ``National 
     Security and Bioenergy Investment Act of 2005''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.

               TITLE I--BIOMASS RESEARCH AND DEVELOPMENT

Sec. 101. Definitions.
Sec. 102. Cooperation and coordination in biomass research and 
              development.
Sec. 103. Biomass Research and Development Board.
Sec. 104. Biomass Research and Development Technical Advisory 
              Committee.
Sec. 105. Biomass Research and Development Initiative.
Sec. 106. Reports.
Sec. 107. Funding.
Sec. 108. Termination of authority.
Sec. 109. Biomass-derived hydrogen.

                    TITLE II--PRODUCTION INCENTIVES

Sec. 201. Production incentives.

 TITLE III--ASSISTANT SECRETARY OF AGRICULTURE FOR ENERGY AND BIOBASED 
                                PRODUCTS

Sec. 301. Assistant Secretary of Agriculture for Energy and Biobased 
              Products.

               TITLE IV--PROCUREMENT OF BIOBASED PRODUCTS

Sec. 401. Federal procurement.
Sec. 402. Capitol Complex procurement.
Sec. 403. Education .
Sec. 404. Regulations.

             TITLE V--BIOECONOMY GRANTS AND TAX INCENTIVES

Sec. 501. Small business bioproduct marketing and certification grants.
Sec. 502. Regional bioeconomy development grants.
Sec. 503. Preprocessing and harvesting demonstration grants.
Sec. 504. Sense of the Senate.

                       TITLE VI--OTHER PROVISIONS

Sec. 601. Education and outreach.
Sec. 602. Reports.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the Governors' Ethanol Coalition, in the report 
     entitled ``Ethanol From Biomass America's 21st Century 
     Transportation Fuel'', found that--
       (A) the dependence of the United States on oil is a major 
     risk to national security and economic and environmental 
     health;
       (B) the safest and least costly approach to mitigating 
     these risks is to set and achieve aggressive biofuels 
     research, development, production and use goals; and
       (C) significant investment in cellulosic biofuels, 
     including a dramatic expansion of existing research programs, 
     production and consumer incentives, and commercialization 
     assistance, is needed;
       (2) the National Academy of Sciences has found that there 
     are abundant sources of waste biomass, and approximately 
     280,000,000 tons of waste biomass generated, in all regions 
     of the United States each year;
       (3) the Natural Resources Defense Council has estimated 
     that by 2025, 200,000,000 additional tons of biomass could be 
     harvested each year from dedicated energy crops grown 
     throughout the country, yielding $5,000,000,000 annually in 
     profit for farmers;
       (4) the Department of Agriculture has estimated that energy 
     derived from existing biomass supplies could displace 25 
     percent of current petroleum imports while still meeting 
     agricultural demands;
       (5) if all diesel fuel in the United States were blended 
     with a 4-percent blend of biodiesel, crude oil consumption in 
     the United States would be reduced by 300,000,000 barrels 
     each year by 2016;
       (6) there is sufficient domestic feedstock for the 
     production of at least 8,000,000,000 annual gallons of 
     renewable fuels, including ethanol and biodiesel, by 2012;
       (7) the Natural Resources Defense Council has estimated 
     that biomass could supply 50 percent of current 
     transportation petroleum demand by 2050;
       (8) the National Academy of Sciences has estimated that 
     enough agricultural crop residue is produced each year to 
     entirely replace the 700,000,000 barrels of petroleum used in 
     organic chemical production in 2004;
       (9) the Biotechnology Industry Organization, in its report 
     entitled ``New Biotechnology Tools for a Cleaner 
     Environment'', found that if all plastics in the United 
     States were made from biomass, oil consumption would decrease 
     by up to 145,000,000 barrels per year;
       (10) the National Academy of Sciences has reported that 
     biobased products have the potential to improve the 
     sustainability of natural resources, environmental quality, 
     and national security while competing economically;
       (11) the Department of Agriculture has made significant 
     advances in the understanding and use by the United States of 
     biomass as a feedstock for fuels and products;
       (12) through participation with the Department of Energy in 
     the Biomass Research and Development Initiative, the 
     Department of Agriculture has also made valuable 
     contributions, through grant-making and other initiatives, to 
     the support of biomass research and development at 
     institutions throughout the United States;
       (13) the Government Accountability Office has found that--
       (A) actions to implement the requirements of the Farm 
     Security and Rural Investment Act of 2002 (Public Law 107-
     171; 116 Stat. 134) for purchasing biobased products have 
     been limited; and
       (B) greater priority by the Department of Agriculture would 
     promote compliance by other agencies with biobased purchasing 
     requirements;

[[Page S6307]]

       (14) an Assistant Secretary of the Department of 
     Agriculture for Energy and Biobased Products would provide 
     the priority, staff, and financial resources to fully 
     implement biobased purchasing requirements and other 
     provisions of the energy title of the Farm Security and Rural 
     Investment Act of 2002;
       (15) Federal government contractors and the Architect of 
     the Capitol are currently exempt from biobased purchasing 
     requirements of the Farm Security and Rural Investment Act of 
     2002;
       (16) expansion of those biobased purchasing requirements--
       (A) to Federal contractors would significantly expand the 
     market for, and advance commercialization of, biobased 
     products; and
       (B) to the Architect of the Capitol would, in combination 
     with a program of public education, allow the Capitol Complex 
     to serve as a showcase for the existence, use, and benefits 
     of biobased products;
       (17) fuel derived from cellulosic biomass could have near-
     zero net carbon dioxide and sulfur emissions, and 
     substantially reduced carbon monoxide, particulate and toxic 
     emissions relative to petroleum-based fuels;
       (18) the bipartisan National Commission on Energy Policy 
     has predicted that with a dedicated Federal research, 
     development, and demonstration effort, cellulosic ethanol 
     could be less expensive to produce than gasoline by 2015;
       (19) the 2004 report of the Rocky Mountain Institute, 
     entitled ``Winning the Oil Endgame'', estimated that a mature 
     biomass industry would create up to 1,045,000 jobs;
       (20) the National Academy of Sciences has found that there 
     are significant opportunities to produce biomass ethanol more 
     efficiently;
       (21) the National Commission on Energy Policy has found 
     that current Federal programs directed toward reducing the 
     cost of biofuels are under-funded, intermittent, scattered, 
     and poorly targeted;
       (22) a report commissioned by the Department of Defense 
     urged the United States to invest in a new large-scale 
     initiative to produce biofuels as an alternative supply 
     source, and as a feedstock for future fuel vehicles;
       (23) the Consumer Federation of America has found that the 
     blending of ethanol into conventional gasoline can 
     significantly benefit consumers by lowering prices at the 
     pump;
       (24) 45 leading national security, labor, and energy policy 
     experts joined the Energy Future Coalition in supporting a 
     national commitment to cut the oil use of the United States 
     by 25 percent by 2025 through the rapid development and 
     deployment of advanced biomass, alcohol, and other available 
     petroleum fuel alternatives; and
       (25) an aggressive effort to advance technology for 
     conversion of biomass to fuel and products is warranted.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

               TITLE I--BIOMASS RESEARCH AND DEVELOPMENT

     SEC. 101. DEFINITIONS.

       Section 303 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) by striking paragraphs (2), (3), and (9);
       (2) by redesignating paragraphs (4), (5), (6), (7), and (8) 
     as paragraphs (5), (7), (8), (9), and (10) respectively;
       (3) by inserting after paragraph (1) the following:
       ``(2) Biobased fuel.--The term `biobased fuel' means any 
     transportation fuel produced from biomass.
       ``(3) Biobased product.--The term `biobased product' means 
     a commercial or industrial product (including chemicals, 
     materials, polymers, and animal feed) produced from biomass, 
     or electric power derived in connection with the conversion 
     of biomass to fuel.
       ``(4) Biomass.--
       ``(A) In general.--The term `biomass' means--
       ``(i) organic material from a plant, including grasses and 
     trees, that is planted for the purpose of being used to 
     produce energy, including vegetation produced for harvest on 
     land 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.) if the 
     harvest is consistent with the integrity of soil and water 
     resources and with other environmental purposes of the 
     conservation reserve program;
       ``(ii) nonhazardous, lignocellulosic, or hemicellulosic 
     matter derived from--

       ``(I) the following forest-related resources:

       ``(aa) pre-commercial thinnings;
       ``(bb) slash; and
       ``(cc) brush;

       ``(II) an agricultural crop, crop byproduct, or 
     agricultural crop residue, including vegetation produced for 
     harvest on land 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.) if the harvest is consistent with the integrity of soil 
     and water resources and with other environmental purposes of 
     the conservation reserve program; or
       ``(III) miscellaneous waste, including landscape or right-
     of-way tree trimmings; and

       ``(iii) agricultural animal waste.
       ``(B) Exclusion.--The term `biomass' does not include--
       ``(i) unsegregated municipal solid waste;
       ``(ii) incineration of municipal solid waste;
       ``(iii) recyclable post-consumer waste paper and paper 
     products;
       ``(iv) painted, treated, or pressurized wood;
       ``(v) wood contaminated with plastic or metals; or
       ``(vi) tires.''; and
       (4) by inserting after paragraph (5) (as redesignated by 
     paragraph (2)):
       ``(6) Demonstration.--The term `demonstration' means 
     demonstration of technology in a pilot plant or semi-works 
     scale facility.''.

     SEC. 102. COOPERATION AND COORDINATION IN BIOMASS RESEARCH 
                   AND DEVELOPMENT.

       Section 304 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) in subsections (a) and (d), by striking ``industrial 
     products'' each place it appears and inserting ``fuels and 
     biobased products'';
       (2) by striking subsections (b) and (c);
       (3) by redesignating subsection (d) as subsection (b); and
       (4) in subsection (b)(1)(A) (as redesignated by paragraph 
     (3)), by striking ``an officer of the Department of 
     Agriculture appointed by the President to a position in the 
     Department before the date of the designated, by and with the 
     advice and consent of the Senate'' and inserting: ``the 
     Assistant Secretary of Agriculture for Energy and Biobased 
     Products''.

     SEC. 103. BIOMASS RESEARCH AND DEVELOPMENT BOARD.

       Section 305 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) in subsections (a) and (c), by striking ``industrial 
     products'' each place it appears and inserting ``fuels and 
     biobased products'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``304(d)(1)(B)'' and 
     inserting ``304(b)(1)(B)''; and
       (B) in paragraph (2), by striking ``304(d)(1)(A)'' and 
     inserting ``304(b)(1)(A)''; and
       (3) in subsection (c)--
       (A) in paragraph (1)(B), by striking ``and'' at the end;
       (B) in paragraph (2), by striking the period at the end and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(3) ensure that--
       ``(A) solicitations are open and competitive with awards 
     made annually; and
       ``(B) objectives and evaluation criteria of the 
     solicitations are clearly stated and minimally prescriptive, 
     with no areas of special interest; and
       ``(4) ensure that the panel of scientific and technical 
     peers assembled under section 307(c)(2)(C) to review 
     proposals is composed predominantly of independent experts 
     selected from outside the Departments of Agriculture and 
     Energy.''.

     SEC. 104. BIOMASS RESEARCH AND DEVELOPMENT TECHNICAL ADVISORY 
                   COMMITTEE.

       Section 306 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) in subsection (b)(1)--
       (A) in subparagraph (A), by striking ``biobased industrial 
     products'' and inserting ``biofuels'';
       (B) by redesignating subparagraphs (B) through (J) as 
     subparagraphs (C) through (K), respectively;
       (C) by inserting after subparagraph (A) the following:
       ``(B) an individual affiliated with the biobased industrial 
     and commercial products industry;'';
       (D) in subparagraph (F) (as redesignated by subparagraph 
     (B)) by striking ``an individual'' and inserting ``2 
     individuals'';
       (E) in subparagraphs (C), (D), (G), and (I) (as 
     redesignated by subparagraph (B)) by striking ``industrial 
     products'' each place it appears and inserting ``fuels and 
     biobased products''; and
       (F) in subparagraph (H) (as redesignated by subparagraph 
     (B)), by inserting ``and environmental'' before ``analysis'';
       (2) in subsection (c)(2)--
       (A) in subparagraph (A), by striking ``goals'' and 
     inserting ``objectives, purposes, and considerations'';
       (B) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D), respectively;
       (C) by inserting after subparagraph (A) the following:
       ``(B) solicitations are open and competitive with awards 
     made annually and that objectives and evaluation criteria of 
     the solicitations are clearly stated and minimally 
     prescriptive, with no areas of special interest;''; and
       (D) in subparagraph (C) (as redesignated by subparagraph 
     (B)) by inserting ``predominantly from outside the 
     Departments of Agriculture and Energy'' after ``technical 
     peers''.

     SEC. 105. BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE.

       Section 307 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) in subsection (a), by striking ``research on biobased 
     industrial products'' and inserting ``research on, and 
     development and demonstration of, biobased fuels and biobased 
     products, and the methods, practices and

[[Page S6308]]

     technologies, including industrial biotechnology, for their 
     production''; and
       (2) by striking subsections (b) through (e) and inserting 
     the following:
       ``(b) Agencies.--
       ``(1) Agriculture.--The Secretary of Agriculture, through 
     the point of contact of the Department of Agriculture and in 
     consultation with the Board, shall provide, or enter into, 
     grants, contracts, and financial assistance under this 
     section through the Cooperative State Research, Education, 
     and Extension Service of the Department of Agriculture.
       ``(2) Energy.--The Secretary of Energy, though the point of 
     contact of the Department of Energy and in consultation with 
     the Board, shall provide, or enter into, grants, contracts, 
     and financial assistance under this section through the 
     appropriate agency, as determined by the Secretary of Energy.
       ``(c) Objectives.--The objectives of the Initiative are to 
     develop--
       ``(1) technologies and processes necessary for abundant 
     commercial production of biobased fuels at prices competitive 
     with fossil fuels;
       ``(2) high-value biobased products--
       ``(A) to enhance the economic viability of biobased fuels 
     and power; and
       ``(B) as substitutes for petroleum-based feedstocks and 
     products; and
       ``(3) a diversity of sustainable domestic sources of 
     biomass for conversion to biobased fuels and biobased 
     products.
       ``(d) Purposes.--The purposes of the Initiative are--
       ``(1) to increase the energy security of the United States;
       ``(2) to create jobs and enhance the economic development 
     of the rural economy;
       ``(3) to enhance the environment and public health; and
       ``(4) to diversify markets for raw agricultural and 
     forestry products.
       ``(e) Technical Areas.--To advance the objectives and 
     purposes of the Initiative, the Secretary of Agriculture and 
     the Secretary of Energy, in consultation with the 
     Administrator of the Environmental Protection Agency and 
     heads of other appropriate departments and agencies (referred 
     to in this section as the `Secretaries'), shall direct 
     research and development toward--
       ``(1) feedstock production through the development of crops 
     and cropping systems relevant to production of raw materials 
     for conversion to biobased fuels and biobased products, 
     including--
       ``(A) development of advanced and dedicated crops with 
     desired features, including enhanced productivity, broader 
     site range, low requirements for chemical inputs, and 
     enhanced processing;
       ``(B) advanced crop production methods to achieve the 
     features described in subparagraph (A);
       ``(C) feedstock harvest, handling, transport, and storage; 
     and
       ``(D) strategies for integrating feedstock production into 
     existing managed land;
       ``(2) overcoming recalcitrance of cellulosic biomass 
     through developing technologies for converting cellulosic 
     biomass into intermediates that can subsequently be converted 
     into biobased fuels and biobased products, including--
       ``(A) pretreatment in combination with enzymatic or 
     microbial hydrolysis; and
       ``(B) thermochemical approaches, including gasification and 
     pyrolysis;
       ``(3) product diversification through technologies relevant 
     to production of a range of biobased products (including 
     chemicals, animal feeds, and cogenerated power) that 
     eventually can increase the feasibility of fuel production in 
     a biorefinery, including--
       ``(A) catalytic processing, including thermochemical fuel 
     production;
       ``(B) metabolic engineering, enzyme engineering, and 
     fermentation systems for biological production of desired 
     products or cogeneration of power;
       ``(C) product recovery;
       ``(D) power production technologies; and
       ``(E) integration into existing biomass processing 
     facilities, including starch ethanol plants, paper mills, and 
     power plants; and
       ``(4) analysis that provides strategic guidance for the 
     application of biomass technologies in accordance with 
     realization of societal benefits in improved sustainability 
     and environmental quality, cost effectiveness, security, and 
     rural economic development, usually featuring system-wide 
     approaches.
       ``(f) Additional Considerations.--Within the technical 
     areas described in subsection (e), and in addition to 
     advancing the purposes described in subsection (d) and the 
     objectives described in subsection (c), the Secretaries shall 
     support research and development--
       ``(1) to create continuously expanding opportunities for 
     participants in existing biofuels production by seeking 
     synergies and continuity with current technologies and 
     practices, including the use of dried distillers grains as a 
     bridge feedstock;
       ``(2) to maximize the environmental, economic, and social 
     benefits of production of biobased fuels and biobased 
     products on a large scale through life-cycle economic and 
     environmental analysis and other means; and
       ``(3) to assess the potential of Federal land and land 
     management programs as feedstock resources for biobased fuels 
     and biobased products, consistent with the integrity of soil 
     and water resources and with other environmental 
     considerations.
       ``(g) Eligible Entities.--To be eligible for a grant, 
     contract, or assistance under this section, an applicant 
     shall be--
       ``(1) an institution of higher education;
       ``(2) a national laboratory;
       ``(3) a Federal research agency;
       ``(4) a State research agency;
       ``(5) a private sector entity;
       ``(6) a nonprofit organization; or
       ``(7) a consortium of 2 of more entities described in 
     paragraphs (1) through (6).
       ``(h) Administration.--
       ``(1) In general.--After consultation with the Board, the 
     points of contact shall--
       ``(A) publish annually 1 or more joint requests for 
     proposals for grants, contracts, and assistance under this 
     section;
       ``(B) establish a priority in grants, contracts, and 
     assistance under this section for research that advances the 
     objectives, purposes, and additional considerations of this 
     title;
       ``(C) require that grants, contracts, and assistance under 
     this section be awarded competitively, on the basis of merit, 
     after the establishment of procedures that provide for 
     scientific peer review by an independent panel of scientific 
     and technical peers; and
       ``(D) give some preference to applications that--
       ``(i) involve a consortia of experts from multiple 
     institutions;
       ``(ii) encourage the integration of disciplines and 
     application of the best technical resources; and
       ``(iii) increase the geographic diversity of demonstration 
     projects.
       ``(2) Distribution of funding by technical area.--Of the 
     funds authorized to be appropriated for activities described 
     in this section--
       ``(A) 20 percent shall be used to carry out activities for 
     feedstock production under subsection (e)(1);
       ``(B) 45 percent shall be used to carry out activities for 
     overcoming recalcitrance of cellulosic biomass under 
     subsection (e)(2);
       ``(C) 30 percent shall be used to carry out activities for 
     product diversification under subsection (e)(3); and
       ``(D) 5 percent shall be used to carry out activities for 
     strategic guidance under subsection (e)(4).
       ``(3) Distribution of funding within each technical area.--
     Within each technical area described in paragraphs (1) 
     through (3) of subsection (e)--
       ``(A) 15 percent of funds shall be used for applied 
     fundamentals;
       ``(B) 35 percent of funds shall be used for innovation; and
       ``(C) 50 percent of funds shall be used for demonstration.
       ``(4) Matching funds.--
       ``(A) In general.--A minimum 20 percent funding match shall 
     be required for demonstration projects under this title.
       ``(B) No other requirement.--No matching funds shall be 
     required for other activities under this title.
       ``(5) Technology and information transfer to agricultural 
     users.--
       ``(A) In general.--The Administrator of the Cooperative 
     State Research, Education, and Extension Service and the 
     Chief of the Natural Resources Conservation Service shall 
     ensure that applicable research results and technologies from 
     the Initiative are adapted, made available, and disseminated 
     through those services, as appropriate.
       ``(B) Report.--Not later than 2 years after the date of 
     enactment of this paragraph, and every 2 years thereafter, 
     the Administrator of the Cooperative State Research, 
     Education, and Extension Service and the Chief of the Natural 
     Resources Conservation Service shall submit to the committees 
     of Congress with jurisdiction over the Initiative a report 
     describing the activities conducted by the services under 
     this subsection.''.

     SEC. 106. REPORTS.

       Section 309 of the Biomass Research and Development Act of 
     2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking ``industrial product'' 
     and inserting ``fuels and biobased products''; and
       (B) in paragraph (3), by striking ``industrial products'' 
     each place it appears and inserting ``fuels and biobased 
     products'';
       (2) by redesignating subsection (b) as subsection (c);
       (3) by inserting after subsection (a) the following:
       ``(b) Assessment Report and Strategic Plan.--Not later than 
     1 year after the date of enactment of the National Security 
     and Bioenergy Investment Act of 2005, the Secretary and the 
     Secretary of Energy shall jointly submit to Congress a report 
     that--
       ``(1) describes the status and progress of current research 
     and development efforts in both the Federal Government and 
     private sector in achieving the objectives, purposes, and 
     considerations of this title, specifically addressing each of 
     the technical areas identified in section 307(e);
       ``(2) describes the actions taken to implement the 
     improvements directed by this title; and
       ``(3) outlines a strategic plan for achieving the 
     objectives, purposes, and considerations of this title.''; 
     and
       (4) in subsection (c) (as redesignated by paragraph (2))--
       (A) in paragraph (1)--

[[Page S6309]]

       (i) in subparagraph (A), by striking ``purposes described 
     in section 307(b)'' and inserting ``objectives, purposes, and 
     additional considerations described in subsections (c) 
     through (f) of section 307'';
       (ii) in subparagraph (B), by striking ``and'' at the end;
       (iii) by redesignating subparagraph (C) as subparagraph 
     (D); and
       (iv) by inserting after subparagraph (B) the following:
       ``(C) achieves the distribution of funds described in 
     paragraphs (2) and (3) of section 307(h); and''; and
       (B) in paragraph (2), by striking ``industrial products'' 
     and inserting ``fuels and biobased products''.

     SEC. 107. FUNDING.

       (a) Funding.--Section 310(a)(2) of the Biomass Research and 
     Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 
     note) is amended by striking ``$14,000,000 for each of fiscal 
     years 2003 through 2007'' and inserting ``$200,000,000 for 
     each of fiscal years 2006 through 2010''.
       (b) Authorization of Appropriations.--Section 310(b) of the 
     Biomass Research and Development Act of 2000 (Public Law 106-
     224; 7 U.S.C. 8101 note) is amended by striking ``title 
     $54,000,000 for each of fiscal years 2002 through 2007'' and 
     inserting``title $200,000,000 for fiscal year 2011 and each 
     fiscal year thereafter''.

     SEC. 108. TERMINATION OF AUTHORITY.

       The Biomass Research and Development Act of 2000 (Public 
     Law 106-224; 7 U.S.C. 8101 note) is amended by striking 
     section 311.

     SEC. 109. BIOMASS-DERIVED HYDROGEN.

       (a) In General.--The Secretary shall conduct a research, 
     development, and demonstration program focused on the 
     economic production and use of hydrogen from biofuels, with 
     emphasis on the rural transportation and rural electrical 
     generation sectors.
       (b) Transportation Sector Objectives.--The objectives of 
     the program in the transportation sector shall be to--
       (1) conduct research, and to develop and test processes and 
     equipment, to produce low-cost liquid biobased fuels that can 
     be transported to distant fueling stations for the production 
     of hydrogen or for direct use in conventional internal 
     combustion engine vehicles;
       (2) demonstrate the cost-effective production of hydrogen 
     from liquid biobased fuels at the local fueling station, to 
     eliminate the costs of transporting hydrogen long distances 
     or building hydrogen pipeline networks;
       (3) demonstrate the use of hydrogen derived from liquid 
     biobased fuels in fuel cell vehicles, or, as an interim cost-
     reduction option, in internal combustion engine hybrid 
     electric vehicles, to demonstrate sustainable transportation 
     with significantly reduced local air pollution, greenhouse 
     gas emissions, and dependence on imported fossil fuels;
       (4) evaluate the economic return to agricultural producers 
     producing feedstocks for liquid biobased fuels compared to 
     agricultural producer returns as of the date of enactment of 
     this Act;
       (5) evaluate the crop yield and long-term soil 
     sustainability of growing and harvesting feedstocks for 
     liquid biobased fuels; and
       (6) evaluate the fuel costs to fuel cell car owners (or 
     hybrid electric car owners running on hydrogen) per mile 
     driven compared to burning gasoline in conventional vehicles.
       (c) Electrical Generation Sector Objectives.--The 
     objectives of the program in the rural electrical generation 
     sector shall be to--
       (1) design, develop, and test low-cost gasification 
     equipment to convert biomass to hydrogen at regional rural 
     cooperatives, or at businesses owned by farmers, close to 
     agricultural operations to minimize the cost of biomass 
     transportation to large central gasification plants;
       (2) demonstrate low-cost electrical generation at such 
     rural cooperatives or farmer-owned businesses, using 
     renewable hydrogen derived from biomass in either fuel cell 
     generators, or, as an interim cost reduction option, in 
     conventional internal combustion engine gensets;
       (3) determine the economic return to cooperatives or other 
     businesses owned by farmers of producing hydrogen from 
     biomass and selling electricity compared to agricultural 
     economic returns from producing and selling conventional 
     crops alone;
       (4) evaluate the crop yield and long-term soil 
     sustainability of growing and harvesting of feedstocks for 
     biomass gasification, and
       (5) demonstrate the use of a portion of the biomass-derived 
     hydrogen in various agricultural vehicles to reduce--
       (A) dependence on imported fossil fuel; and
       (B) environmental impacts.
       (d) Authorization for Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2006 through 2010.

                    TITLE II--PRODUCTION INCENTIVES

     SEC. 201. PRODUCTION INCENTIVES.

       (a) Purpose.--The purpose of this section is to--
       (1) accelerate deployment and commercialization of 
     biofuels;
       (2) deliver the first 1,000,000,000 gallons of cellulosic 
     biofuels by 2015;
       (3) ensure biofuels produced after 2015 are cost 
     competitive with gasoline and diesel; and
       (4) ensure that small feedstock producers and rural small 
     businesses are full participants in the development of the 
     cellulosic biofuels industry.
       (b) Definitions.--In this section:
       (1) Cellulosic biofuels.--The term ``cellulosic biofuels'' 
     means any fuel that is produced from cellulosic feedstocks.
       (2) Eligible entity.--The term ``eligible entity'' means a 
     producer of fuel from cellulosic biofuels the production 
     facility of which--
       (A) is located in the United States;
       (B) meets all applicable Federal and State permitting 
     requirements;
       (C) is to begin production of cellulosic biofuels not later 
     than 3 years after the date of the reverse auction in which 
     the producer participates; and
       (D) meets any financial criteria established by the 
     Secretary.
       (c) Program.--
       (1) Establishment.--The Secretary, in consultation with the 
     Secretary of Energy, the Secretary of Defense, and the 
     Administrator of the Environmental Protection Agency, shall 
     establish an incentive program for the production of 
     cellulosic biofuels.
       (2) Basis of incentives.--Under the program, the Secretary 
     shall award production incentives on a per gallon basis of 
     cellulosic biofuels from eligible entities, through--
       (A) set payments per gallon of cellulosic biofuels produced 
     in an amount determined by the Secretary, until initiation of 
     the first reverse auction; and
       (B) reverse auction thereafter.
       (3) First reverse auction.--The first reverse auction shall 
     be held on the earlier of--
       (A) not later than 1 year after the first year of annual 
     production in the United States of 100,000,000 gallons of 
     cellulosic biofuels, as determined by the Secretary; or
       (B) not later than 3 years after the date of enactment of 
     this Act.
       (4) Reverse auction procedure.--
       (A) In general.--On initiation of the first reverse 
     auction, and each year thereafter until the earlier of the 
     first year of annual production in the United States of 
     1,000,000,000 gallons of cellulosic biofuels, as determined 
     by the Secretary, or 10 years after the date of enactment of 
     this Act, the Secretary shall conduct a reverse auction at 
     which--
       (i) the Secretary shall solicit bids from eligible 
     entities;
       (ii) eligible entities shall submit--

       (I) a desired level of production incentive on a per gallon 
     basis; and
       (II) an estimated annual production amount in gallons; and

       (iii) the Secretary shall issue awards for the production 
     amount submitted, beginning with the eligible entity 
     submitting the bid for the lowest level of production 
     incentive on a per gallon basis, until the amount of funds 
     available for the reverse auction is committed.
       (B) Amount of incentive received.--An eligible entity 
     selected by the Secretary through a reverse auction shall 
     receive the amount of performance incentive requested in the 
     auction for each gallon produced and sold by the entity 
     during the first 6 years of operation.
       (d) Limitations.--Awards under this section shall be 
     limited to--
       (1) a per gallon amount determined by the Secretary during 
     the first 4 years of the program;
       (2) a declining per gallon cap over the remaining lifetime 
     of the program, to be established by the Secretary so that 
     cellulosic biofuels produced after the first year of annual 
     cellulosic biofuels production in the United States in excess 
     of 1,000,000,000 gallons are cost competitive with gasoline 
     and diesel;
       (3) not more than 25 percent of the funds committed within 
     each reverse auction to any 1 project;
       (4) not more than $100,000,000 in any 1 year; and
       (5) not more than $1,000,000,000 over the lifetime of the 
     program.
       (e) Priority.--In selecting a project under the program, 
     the Secretary shall give priority to projects that--
       (1) demonstrate outstanding potential for local and 
     regional economic development;
       (2) include agricultural producers or cooperatives of 
     agricultural producers as equity partners in the ventures; 
     and
       (3) have a strategic agreement in place to fairly reward 
     feedstock suppliers.
       (f) Funding.--
       (1) In general.--The Secretary shall use to carry out this 
     title $250,000,000 of funds of the Commodity Credit 
     Corporation, to remain available until expended.
       (2) Authorizations of appropriations.--In addition to 
     amounts made available under paragraph (1), there are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.

 TITLE III--ASSISTANT SECRETARY OF AGRICULTURE FOR ENERGY AND BIOBASED 
                                PRODUCTS

     SEC. 301. ASSISTANT SECRETARY OF AGRICULTURE FOR ENERGY AND 
                   BIOBASED PRODUCTS.

       (a) Establishment.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall establish in the 
     Department a position of Assistant Secretary of Agriculture 
     for Energy and Biobased Products (referred to in this section 
     as the ``Assistant Secretary'').
       (b) Responsibilities.--The Assistant Secretary shall be 
     responsible for--

[[Page S6310]]

       (1) the energy programs established under title IX of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101 
     et seq.); and
       (2) all other programs and initiatives that the Secretary 
     considers appropriate.
       (c) Confirmation Requirement.--The Assistant Secretary 
     shall be appointed by the President, by and with the advice 
     and consent of the Senate.
       (d) Personnel.--The Secretary, acting through the Assistant 
     Secretary, may transfer or assign work to personnel, or 
     assign staff hours, on a permanent or a part-time basis, as 
     needed, to the Office of the Assistant Secretary to carry out 
     the functions and duties of the office.
       (e) Budget.--The Secretary shall establish a budget for the 
     office of the Assistant Secretary.

               TITLE IV--PROCUREMENT OF BIOBASED PRODUCTS

     SEC. 401. FEDERAL PROCUREMENT.

       (a) Definition of Procuring Agency.--Section 9001 of the 
     Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
     8101) is amended--
       (1) by redesignating paragraphs (4), (5), and (6) as 
     paragraphs (5), (6), and (7), respectively; and
       (2) by inserting after paragraph (3) the following:
       ``(4) Procuring agency.--The term `procuring agency' 
     means--
       ``(A) any Federal agency that is using Federal funds for 
     procurement; or
       ``(B) any person contracting with any Federal agency with 
     respect to work performed under the contract.''.
       (b) Procurement.--Section 9002 of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 8102) is amended--
       (1) by striking ``Federal agency'' each place it appears 
     (other than in subsections (f) and (g)) and inserting 
     ``procuring agency'';
       (2) in subsection (c)(2)--
       (A) by striking ``(2)'' and all that follows through 
     ``Notwithstanding'' and inserting the following:
       ``(2) Flexibility.--Notwithstanding'';
       (B) by striking ``an agency'' and inserting ``a procuring 
     agency''; and
       (C) by striking ``the agency'' and inserting ``the 
     procuring agency'';
       (3) in subsection (d), by striking ``procured by Federal 
     agencies'' and inserting ``procured by procuring agencies''; 
     and
       (4) in subsection (f), by striking ``Federal agencies'' and 
     inserting ``procuring agencies'' .

     SEC. 402. CAPITOL COMPLEX PROCUREMENT.

       Section 9002 of the Farm Security and Rural Investment Act 
     of 2002 (7 U.S.C. 8102) (as amended by section 401(b)) is 
     amended--
       (1) by redesignating subsection (j) as subsection (k); and
       (2) by inserting after subsection (i) the following:
       ``(j) Inclusion.--Not later than 90 days after the date of 
     enactment of the National Security and Bioenergy Investment 
     Act of 2005, the Architect of the Capitol, the Sergeant of 
     Arms of the Senate, and the Chief Administrative Officer of 
     the House of Representatives shall issue regulations that 
     apply the requirements of this section to procurement for the 
     Capitol Complex.''.

     SEC. 403. EDUCATION .

       (a) In General.--The Architect of the Capitol shall 
     establish in the Capitol Complex a program of public 
     education regarding use by the Architect of the Capitol of 
     biobased products.
       (b) Purposes.--The purposes of the program shall be--
       (1) to establish the Capitol Complex as a showcase for the 
     existence and benefits of biobased products; and
       (2) to provide access to further information on biobased 
     products to occupants and visitors.

     SEC. 404. REGULATIONS.

       Requirements issued under the amendment made by section 402 
     shall be made in accordance with regulations issued by the 
     Committee on Rules and Administration of the Senate and the 
     Committee on House Administration of the House of 
     Representatives.

             TITLE V--BIOECONOMY GRANTS AND TAX INCENTIVES

     SEC. 501. SMALL BUSINESS BIOPRODUCT MARKETING AND 
                   CERTIFICATION GRANTS.

       (a) In General.--Using amounts made available under 
     subsection (g), the Secretary shall make available on a 
     competitive basis grants to eligible entities described in 
     subsection (b) for the biobased product marketing and 
     certification purposes described in subsection (c).
       (b) Eligible Entities.--An entity eligible for a grant 
     under this section is any manufacturer of biobased products 
     that--
       (1) has fewer than 50 employees;
       (2) proposes to use the grant for the biobased product 
     marketing and certification purposes described in subsection 
     (c); and
       (3) has not previously received a grant under this section.
       (c) Biobased Product Marketing and Certification Grant 
     Purposes.--A grant made under this section shall be used--
       (1) to plan activities and working capital for marketing of 
     biobased products; and
       (2) to provide private sector cost sharing for the 
     certification of biobased products.
       (d) Matching Funds.--
       (1) In general.--Grant recipients shall provide matching 
     non-Federal funds equal to the amount of the grant received.
       (2) Expenditure.--Matching funds shall be expended in 
     advance of grant funding, so that for every dollar of grant 
     that is advanced, an equal amount of matching funds shall 
     have been funded prior to submitting the request for 
     reimbursement.
       (e) Amount.--A grant made under this section shall not 
     exceed $100,000.
       (f) Administration.--The Secretary shall establish such 
     administrative requirements for grants under this section, 
     including requirements for applications for the grants, as 
     the Secretary considers appropriate.
       (g) Authorizations of Appropriations.--There are authorized 
     to be appropriated to make grants under this section--
       (1) $1,000,000 for fiscal year 2006; and
       (2) such sums as are necessary for fiscal year 2007 and 
     each subsequent fiscal year.

     SEC. 502. REGIONAL BIOECONOMY DEVELOPMENT GRANTS.

       (a) In General.--Using amounts made available under 
     subsection (g), the Secretary shall make available on a 
     competitive basis grants to eligible entities described in 
     subsection (b) for the purposes described in subsection (c).
       (b) Eligible Entities.--An entity eligible for a grant 
     under this section is any regional bioeconomy development 
     association, agricultural or energy trade association, or 
     Land Grant institution that--
       (1) proposes to use the grant for the purposes described in 
     subsection (c); and
       (2) has not previously received a grant under this section.
       (c) Regional Bioeconomy Development Association Grant 
     Purposes.--A grant made under this section shall be used to 
     support and promote the growth and development of the 
     bioeconomy within the region served by the eligible entity, 
     through coordination, education, outreach, and other 
     endeavors by the eligible entity.
       (d) Matching Funds.--
       (1) In general.--Grant recipients shall provide matching 
     non-Federal funds equal to the amount of the grant received.
       (2) Expenditure.--Matching funds shall be expended in 
     advance of grant funding, so that for every dollar of grant 
     that is advanced, an equal amount of matching funds shall 
     have been funded prior to submitting the request for 
     reimbursement.
       (e) Administration.--The Secretary shall establish such 
     administrative requirements for grants under this section, 
     including requirements for applications for the grants, as 
     the Secretary considers appropriate.
       (f) Amount.--A grant made under this section shall not 
     exceed $500,000.
       (g) Authorizations of Appropriations.--There are authorized 
     to be appropriated to make grants under this section--
       (1) $1,000,000 for fiscal year 2006; and
       (2) such sums as are necessary for fiscal year 2007 and 
     each subsequent fiscal year.

     SEC. 503. PREPROCESSING AND HARVESTING DEMONSTRATION GRANTS.

       (a) In General.--The Secretary shall make grants available 
     on a competitive basis to enterprises owned by agricultural 
     producers, for the purposes of demonstrating cost-effective, 
     cellulosic biomass innovations in--
       (1) preprocessing of feedstocks, including cleaning, 
     separating and sorting, mixing or blending, and chemical or 
     biochemical treatments, to add value and lower the cost of 
     feedstock processing at a biorefinery; or
       (2) 1-pass or other efficient, multiple crop harvesting 
     techniques.
       (b) Limitations on Grants.--
       (1) Number of grants.--Not more than 5 demonstration 
     projects per fiscal year shall be funded under this section.
       (2) Non-federal cost share.--The non-Federal cost share of 
     a project under this section shall be not less than 20 
     percent, as determined by the Secretary.
       (c) Condition of Grant.--To be eligible for a grant for a 
     project under this section, a recipient of a grant or a 
     participating entity shall agree to use the material 
     harvested under the project--
       (1) to produce ethanol; or
       (2) for another energy purpose, such as the generation of 
     heat or electricity.
       (d) Authorization for Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2006 through 2010.

     SEC. 504. SENSE OF THE SENATE.

       It is the sense of the Senate that Congress should amend 
     the Federal tax code to encourage investment in, and 
     production and use of, biobased fuels and biobased products 
     through--
       (1) an investment tax credit for the construction or 
     modification of facilities for the production of fuels from 
     cellulose biomass, to drive private capital towards new 
     biorefinery projects in a manner that allows participation by 
     smaller farms and cooperatives; and
       (2) an investment tax credit to small manufacturers of 
     biobased products to lower the capital costs of starting and 
     maintaining a biobased business.

                       TITLE VI--OTHER PROVISIONS

     SEC. 601. EDUCATION AND OUTREACH.

       (a) In General.--The Secretary shall establish, within the 
     Department or through an independent contracting entity, a 
     program of education and outreach on biobased fuels and 
     biobased products consisting of--
       (1) training and technical assistance programs for 
     feedstock producers to promote producer ownership, 
     investment, and participation in the operation of processing 
     facilities; and

[[Page S6311]]

       (2) public education and outreach to familiarize consumers 
     with the biobased fuels and biobased products.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this title $1,000,000 for 
     each of fiscal years 2006 through 2010.

     SEC. 602. REPORTS.

       (a) Progress Report.--Not later than 1 year after the date 
     of enactment of this Act, the Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report on progress in establishing the Office of the 
     Assistant Secretary of Agriculture for Energy and Biobased 
     Products under title I.
       (b) Biobased Product Potential.--Not later than 1 year 
     after the date of enactment of this Act, the Secretary shall 
     submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report that--
       (1) describes the economic potential for the United States 
     of the widespread production and use of commercial and 
     industrial biobased products through calendar year 2025; and
       (2) as the maximum extent practicable, identifies the 
     economic potential by product area.
       (c) Analysis of Economic Indicators.--Not later than 2 
     years after the date of enactment of this Act, and every 2 
     years thereafter, the Secretary shall submit to Congress an 
     analysis of economic indicators of the biobased economy 
     during the 2-year period preceding the analysis.
                                  ____

                                                     June 9, 2005.
     Hon. Tom Harkin,
     U.S. Senate,
     Washington, DC.
     Hon. Richard Lugar,
     U.S. Senate,
     Washington, DC.
     Re the National Security and Bioenergy Investment Act of 
         2005.

       Dear Senators Harkin and Lugar: The National Corn Growers 
     Association (NCGA), the American Soybean Association (ASA), 
     and the Renewable Fuels Association are writing to express 
     our support for the National Security and Bioenergy 
     Investment Act of 2005. In particular, we strongly support 
     the increased procurement of biobased products by Federal 
     agencies and all Federal government contractors. Biobased 
     products represent a large potential growth market for corn 
     and soybean growers in areas such as plastics, solvents, 
     packaging and other consumer goods to provide markets for 
     U.S.-grown crops. The biobased product industry has already 
     started to grow, bringing new products to consumers, new 
     markets to growers and new investments to our communities.
       The procurement of biobased products promotes energy and 
     environmental security. Products made from corn and soybeans 
     could replace a variety of items currently produced from 
     petroleum, and aid in reducing dependence on imported oil. 
     Already the production of ethanol and biodiesel reduces 
     imports by more than 140 million barrels of oil. The 
     production of biobased products generates less greenhouse gas 
     than traditional petroleum-based items. There are also 
     tremendous opportunities for grower-owned processing 
     facilities and rural American and agriculture as a whole. New 
     jobs and investments will be brought into rural communities, 
     as new processing and manufacturing facilities move into 
     those communities to be near renewable feed stocks.
       NCGA, ASA and RFA applaud your continued efforts to promote 
     the use of biobased products that will encourage the 
     development of new markets for corn and soybeans and 
     ultimately help to revitalize rural economies and the 
     agriculture industry as a whole. We have been avid supporters 
     of the biobased products industry, and we look forward to 
     working with you as you continue to provide vision and 
     direction for this emerging industry.
           Sincerely,
     Leon Corzine,
       President, National Corn Growers Association.
     Neal Bredehoeft,
       President, American Soybean Association.
     Bob Dinneen,
       President, Renewable Fuels Association.
                                  ____



                                 Governors' Ethanol Coalition,

                                        Lincoln, NE, June 9, 2005.
     Hon. Tom Harkin,
     Hart Senate Office Building,
     Washington, DC.
     Hon. Barack Obama,
     Hart Senate Office Building,
     Washington, DC.
     Hon. Richard Lugar,
     Hart Senate Office Building,
     Washington, DC.
     Hon. Norm Coleman,
     Hart Senate Office Building,
     Washington, DC.
       Dear Senators: On behalf of the thirty members of the 
     Governors' Ethanol Coalition, we strongly support and endorse 
     the National Security and Bioenergy Investment Act of 2005, 
     as well as your efforts to expand development of other 
     biofue1s and co-products. The Governors' Ethanol Coalition is 
     pleased that this bill embodies the recommendations developed 
     by the Coalition in Ethanol From Biomass, America's 21st 
     Century Transportation Fuel. When signed into law, this act 
     will catalyze needed research, production, and use of 
     biofue1s and bio-based products, thereby enhancing our 
     economic, environmental, and national security.
       The Coalition believes that the nation's dependency on 
     imported oil presents a huge risk to this country's future. 
     The combination of political tensions in major oi1-producing 
     nations with growing oil demand from China and India is 
     seriously threatening our national security. Moreover, as we 
     import greater amounts of oil each year, we are draining more 
     and more of the wealth from our states.
       The key provisions contained in your bill bring focus and 
     resources to biomass-derived ethanol research and 
     commercialization efforts. The result, over time, will be the 
     replacement of significant amounts of imported oil with 
     domestically produced fuels--improving our rural economies, 
     cleaning our air, and contributing to our national security. 
     Of particular importance is the bill's aim to broaden ethanol 
     production to include all regions of the nation so that many 
     more states will reap the benefits of biofuels.
       Again, thank you for inclusion of the Coalition's 
     recommendations in this landmark legislation. Please let us 
     know how the Coalition can help with the passage of this very 
     important legislation. The continued expansion of ethanol 
     production and use, particularly biomass-derived fuels, and 
     the accompanying economic growth and environmental benefits 
     for our states is essential to the nation's long-term 
     economic vitality and national security.
           Sincere1y,
     Tim Pawlenty,
       Chair, Governor of Minnesota.
     Kathleen Sebelius,
       Vice Chair, Governor of Kansas.
                                  ____



                         Energy FutureSM Coalition,

                                     Washington, DC, June 8, 2005.
     Hon. Tom Harkin,
     Hon. Richard G. Lugar,
     U.S. Senate,
     Washington, DC.
       Dear Senators Harkin and Lugar: On behalf of the Energy 
     Future Coalition, I am writing to commend your leadership and 
     vision in drafting the National Security and Bioenergy 
     Investment Act of 2005.
       In our judgment, America's growing dependence on foreign 
     oil endangers our national and economic security. We believe 
     the Federal government should undertake a major new 
     initiative to curtail U.S. oil consumption through improved 
     efficiency and the rapid development and deployment of 
     advanced biomass, alcohol and other available petroleum fuel 
     alternatives.
       With such a push, we believe domestic biofuels can cut the 
     nation's oil use by 25 percent by 2025, and substantial 
     further reductions are possible through efficiency gains from 
     advanced technologies. That is an ambitious goal, but it is 
     also an extraordinary opportunity for American leadership, 
     innovation, job creation, and economic growth.
       You took an important step forward by introducing S. 650, 
     the Fuels Security Act, incorporated into the Senate energy 
     bill during Committee markup. This legislation is another 
     important step, authorizing the additional research and 
     development and federal incentives needed to accelerate the 
     adoption of biobased fuels and coproducts. We are pleased to 
     support it.
            Sincerely,
     Reid Detchon.
                                  ____

                                            Biotechnology Industry


                                                 Organization,

                                     Washington, DC, June 8, 2005.
     Hon. Tom Harkin,
      Ranking Democratic Member.
     Hon. Richard Lugar,
     Member, U.S. Senate Committee on Agriculture, Nutrition and 
         Forestry, Russell Senate Office Building, Washington, DC.
       Dear Senators Harkin and Lugar: The Biotechnology Industry 
     Organization (BIO) Industrial and Environmental Section fully 
     supports the National Security and Bioenergy Investment Act 
     of 2005. We greatly appreciate your vision and initiative to 
     expand the Biomass Research and Development Act and to create 
     new incentives to produce biofuels and biobased products.
       America's growing dependence on foreign energy is eroding 
     our national security. We must take steps to drastically 
     increase production of domestic energy. As an active 
     participant in the Energy Future Coalition, BIO believes this 
     country needs a major new initiative to more aggressively 
     research, develop and deploy advanced biofuels technologies. 
     With sufficient government support, we can meet up to 25% of 
     our transportation fuel needs by converting farm crops and 
     crop residues to transportation fuel.
       The National Security and Bioenergy Investment Act of 2005 
     will boost the use of industrial biotechnology to produce 
     fuels and biobased products from renewable agricultural 
     feedstocks. With the use of new biotech tools, we can now 
     utilize millions of tons of crop residues, such as corn 
     stover and wheat straw, to produce sugars that can then be 
     converted to ethanol, chemicals and bio-based plastics. These 
     biotech tools can only be rapidly deployed if federal policy 
     makers take steps to help our innovative companies get over 
     the initial hurdles they face during

[[Page S6312]]

     the commercialization phase of bioenergy production and your 
     bill will help get that job done.
       We are pleased to endorse this visionary legislation.
           Sincerely,
     Brent Erickson,
       Executive Vice President, Biotechnology Industry 
     Organization.
                                  ____



                            Natural Resources Defense Council,

                                     Washington, DC, June 7, 2005.
       Dear Senators Harkin and Lugar: The Natural Resources 
     Defense Council strongly supports the National Security and 
     Bioenergy Investment Act of 2005, which you introduced today. 
     This important bill would expand and refine research, 
     development, demonstration and deployment efforts for the 
     production of energy from crops grown by farmers here in 
     America. The bill would also expand and improve the 
     Department of Agriculture's efforts to promote a biobased 
     economy, federal bio-energy and bio-product purchasing 
     requirements, and federal educational efforts.
       The Research and Development (R&D) title of this bill 
     continues your tradition of leadership in this area by 
     updating the Biomass Research and Development Act of 2000, 
     which you also crafted. This title will not only extend the 
     provisions of the original bill and greatly increase the 
     funding for these provisions, it will also refine the 
     direction of this funding. Taken together, these changes 
     maximize the impacts of R&D on the greatest challenges facing 
     cellulosic biofuels today.
       Your bill also creates extremely important production 
     incentives for the first one billion gallons of cellulosic 
     biofuels. The production incentives approach taken by the 
     bill--a combination of fixed incentives per gallon at first, 
     switching over to a reverse auction--will maximize the 
     development of cellulosic biofuels production while 
     minimizing the cost to taxpayers.
       In addition, the bill creates an Assistant Secretary of 
     Agriculture for Energy and Biobased Products. Coupled with 
     the bill's development grants, tax incentives, biobased 
     product procurement provisions, and educational program, the 
     bill would make a huge contribution to developing a 
     sustainable biobased economy, reducing our oil dependence and 
     improving our national security.
       The technologies advanced by this bill will undoubtedly 
     make important contributions to reducing our global warming 
     pollution and the air and water pollution that comes from our 
     dependence on fossil fuels. We are concerned, however, that 
     the eligibility provisions for forest biomass do not exclude 
     sensitive areas that need protecting, including roadless 
     areas, old growth forests, and other endangered forests, and 
     do not restrict eligibility to renewable sources or prohibit 
     possible conversion of native forests to plantations. We know 
     that you do not want to see this admirable legislation 
     applied in ways that exploit these features, and will be 
     happy to work with you in the future to take any steps needed 
     if abuses arise.
           Sincerely,
                                                    Karen Wayland,
     Legislative Director.
                                  ____

                                             Environmental Law and


                                                Policy Center,

                                        Chicago, IL, June 8, 2005.
     Hon. Tom Harkin,
     Hon. Richard G. Lugar,
     U.S. Senate,
     Washington, DC.
       Dear Senators Harkin and Lugar: The Environmental Law and 
     Policy Center (``ELPC'') is pleased to support the National 
     Security and Bioenergy Investment Act of 2005, and we commend 
     you for your leadership and vision in introducing this 
     legislation. This bill would accelerate research, 
     development, demonstration and production efforts for energy 
     from farm crops in the United States, especially cellulosic 
     ethanol. It also will expand and prioritize the United States 
     Department of Agriculture's leadership responsibilities to 
     promote clean and sustainable energy development, and it will 
     increase procurement of biobased products.
       By significantly expanding the development and production 
     of clean energy ``cash crops,'' this legislation will improve 
     our environmental quality, stimulate significant rural 
     economic development, and strengthen our national energy 
     security. ELPC also appreciates that this legislation 
     reflects your longstanding support for farm-based sustainable 
     energy programs. ELPC strongly supported your successful 
     efforts to create the new Energy Title in the 2002 Farm Bill, 
     which established groundbreaking new federal incentives for 
     renewable energy and energy efficiency, while renewing 
     existing programs such as the Biomass Research and 
     Development Act of 2000.
       The National Security and Bioenergy Investment Act of 2005 
     is a natural complement to the 2002 Farm Bill Energy Title 
     programs, and it will help to strengthen support for the 
     right bioenergy production programs in the 2007 Farm Bill. 
     Accordingly, ELPC is pleased to support this legislation.
           Very truly yours,
                                                Howard A. Learner,
     Executive Director.
                                  ____



                            Institute for Local Self-Reliance,

                                     Washington, DC, June 6, 2005.
     Hon. Tom Harkin,
     U.S. Senate,
     Washington, DC.
       Dear Senator Tom Harkin: Congratulations on your bill, 
     National Security and Bioenergy Investment Act of 2005. It is 
     a breakthrough piece of legislation. Your well-conceived 
     bill, combining needed executive branch changes, welcome 
     increases in research and development funding and innovative 
     commercialization techniques, can move the use of plants as a 
     fuel and industrial material from the margins of the economy 
     to the mainstream. I urge everyone with an interest in our 
     environmental, agricultural and economic future to support 
     this bill.
           Sincerely,
                                                     David Morris,
                                                   Vice President.
                                 ______