[Congressional Record Volume 153, Number 17 (Monday, January 29, 2007)]
[Senate]
[Pages S1292-S1293]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. NELSON of Nebraska:
  S. 426. A bill to provide that all funds collected from the tariff on 
imports of ethanol be invested in the research, development, and 
deployment of biofuels, especially cellulosic ethanol produced from 
biomass feedstocks; to the Committee on Energy and Natural Resources.
  Mr. NELSON of Nebraska. Mr. President, today I rise to introduce the 
``Biofuels Investment Trust Fund Act'' because I believe it is 
legislation that can help America progress towards a more secure energy 
future; I believe it is a small piece to the puzzle that is our energy 
policy. The Biofuels Investment Trust Fund Act seeks to take a simple, 
common sense step down the path we in this country need to take to 
improve our energy security. The Act would direct that all money 
collected by the Federal Government pursuant to the tariff on imported 
ethanol be invested in the research, development and deployment of 
biofuels--especially biofuels like cellulosic ethanol that can be 
produced from biomass feedstocks.
  There are some who advocate removing the ethanol tariff but I believe 
that it is currently unwise to do so. We are in the early stages of 
trying to build a renewable fuels industry that will eventually allow 
ethanol and other biofuels to be a real alternative to the fuels we 
currently derive from oil. The tariff is an important part of that 
because it helps the nascent ethanol industry and it ensures that we 
are not providing subsidies to ethanol produced in other nations.
  It seems to me, however, that the money collected from this tariff 
can be put to better, more productive uses than merely deposited in the 
general fund. And, it would seem, that using these funds to help build 
our domestic ethanol production would be the wisest use of the money. 
Therefore, I propose that the tariff funds be collected in a specific 
trust fund and only be used for investment in biofuels research, 
development and deployment. Moreover, I propose that those funds be 
more specifically invested in the next generation of ethanol 
production--cellulosic ethanol produced from biomass feedstocks. These 
funds can be used in any of a number of ways to help offset the 
substantial costs inherent in starting an entire industry--like one for 
cellulosic ethanol--from scratch and in the face of volatile 
commodities and energy markets.
  Our Nation faces a serious crisis brought on by our energy 
consumption and, most importantly, by our reliance on foreign sources 
of oil. As a Nebraskan, my focus has been on the role agriculture can 
play in the development of alternative sources of energy and I am 
convinced that American agriculture is positioned to supply the nation 
with an abundant source of clean, high-quality energy that will reduce 
our destructive reliance on foreign oil.
  I also believe that biofuels production can be the catalyst for a new 
wave of American innovation as a part of the continuing search for 
better energy solutions. The virtue in producing cleaner, more 
sustainable fuels derived from our own fields rather than extracted 
from distant lands could help spur new technologies, new jobs and new 
growth in our national economy.
  We in Nebraska know the value of ethanol. We know the benefits it 
holds for the environment and our farmers and we know that it is 
critical in lessening our dependence on foreign oil.

[[Page S1293]]

We also know that the ethanol industry creates jobs--nearly 1 in 4 jobs 
in Nebraska are agriculture related and new ethanol plants are opening 
across the State.
  I believe that a national emphasis on biofuels production represents 
an important investment in the proud tradition of the American farmer, 
American ingenuity and American productivity. It's a win-win-win 
situation--a win for farmers, a win for agriculture and win for 
national security.
  There is not an area of the country that does not have some 
agriculture product that can be used as an alternative energy source 
whether it's corn in Nebraska, forestry wastes in the Northeast and 
Northwest, or sugar cane in Hawaii, Louisiana and Florida; or whether 
it is biomass energy crops that can be grown throughout the country.
  In conclusion, I am proud to introduce the Biofuels Investment Trust 
Fund Act with the hope that it will be part of the solution to our 
energy problems. The money we deposit in this Biofuels Trust Fund will 
help grow our biofuels industry and through that investment we will 
improve our national energy security, as well as boosting the economies 
in agriculture and our rural communities.
  I request that the text of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 426

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Biofuels Investment Trust 
     Fund Act''.

     SEC. 2. BIOFUELS INVESTMENT TRUST FUND.

       (a) Establishment.--
       (1) In general.--There is established in the Treasury of 
     the United States a trust fund, to be known as the ``Biofuels 
     Investment Trust Fund'' (referred to in this Act as the 
     ``Trust Fund''), consisting of such amounts as may be 
     transferred to the Trust Fund under paragraph (2).
       (2) Transfer.--As soon as practicable after the date of 
     enactment of this Act, the Secretary of the Treasury shall 
     transfer to the Trust Fund, from amounts in the general fund 
     of the Treasury, such amounts as the Secretary of the 
     Treasury determines to be equivalent to the amounts received 
     in the general fund as of January 1, 2007, that are 
     attributable to duties received on articles entered under 
     heading 9901.00.50 of the Harmonized Tariff Schedule of the 
     United States.
       (b) Expenditures From Trust Fund.--
       (1) In general.--The Secretary of Energy, in consultation 
     with the Secretary of Agriculture and the Secretary of the 
     Treasury, shall use amounts in the Trust Fund to provide 
     financial assistance for research, development, and 
     deployment programs for biofuels to increase the amount and 
     diversity of biofuels produced in the United States and made 
     available to consumers, especially for cellulosic ethanol 
     production from biomass feedstocks.
       (2) Requirements.--The Secretary of Energy shall ensure 
     that amounts made available under paragraph (1) shall be used 
     only--
       (A) to provide financial assistance to farmers, producers, 
     biorefiners, researchers, universities, and other persons or 
     entities involved in the research, development, deployment, 
     or production of biofuels, especially the production of 
     biomass feedstock for cellulosic ethanol production; or
       (B) as otherwise directed by Congress to advance research, 
     development, and deployment of biofuels, especially 
     cellulosic ethanol produced from biomass feedstocks.
       (c) Investment of Amounts.--
       (1) In general.--The Secretary of the Treasury shall invest 
     such portion of the Trust Fund as is not, in the judgment of 
     the Secretary of the Treasury, required to meet current 
     withdrawals.
       (2) Interest-bearing obligations.--Investments may be made 
     only in interest-bearing obligations of the United States.
       (3) Acquisition of obligations.--For the purpose of 
     investments under paragraph (1), obligations may be 
     acquired--
       (A) on original issue at the issue price; or
       (B) by purchase of outstanding obligations at the market 
     price.
       (4) Sale of obligations.--Any obligation acquired by the 
     Trust Fund may be sold by the Secretary of the Treasury at 
     the market price.
       (5) Credits to trust fund.--The interest on, and the 
     proceeds from the sale or redemption of, any obligations held 
     in the Trust Fund shall be credited to and form a part of the 
     Trust Fund.
       (d) Transfers of Amounts.--
       (1) In general.--The amounts required to be transferred to 
     the Trust Fund under subsection (a)(1) shall be transferred 
     at least quarterly from the general fund of the Treasury to 
     the Trust Fund on the basis of estimates made by the 
     Secretary of the Treasury.
       (2) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.

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