[Congressional Record Volume 161, Number 72 (Tuesday, May 12, 2015)]
[Senate]
[Pages S2796-S2797]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN:
  S. 1294. A bill to require the Secretary of Energy and the Secretary 
of Agriculture to collaborate in promoting the development of 
efficient, economical, and environmentally sustainable thermally led 
wood energy systems; to the Committee on Energy and Natural Resources.
  Mr. WYDEN. Mr. President, today I am proud to introduce the Bioenergy 
Act of 2015.
  Managed in an environmentally responsible way, woody biomass presents 
a carbon-neutral alternative to fossil fuels for heating and powering 
homes, schools and businesses. Much of the woody biomass in the U.S. 
that could be used for energy production is either waste from the 
forest products industry, or small trees that contribute to the 
overcrowding of forests and wildfires. In 2013, wildfires burned 4.3 
million acres of American forests and rangeland, and the Federal 
Government spent $1.7 billion to fight them. Additionally, about 2 
billion metric tons, or 30 percent, of U.S. carbon dioxide emissions 
came from fossil fuel use in space heating, water heating or 
electricity generation for American homes and businesses. Using woody 
biomass for heat and power can help fund wildfire risk reduction and 
forest restoration, all while creating low-carbon energy and a stable 
source of jobs in rural economies across the country.
  Despite this potential, the U.S. Department of Energy, DOE, has not 
invested in biomass heat, bioheat, and power, biopower, projects and 
research. This bill introduces modest steps to develop this resource, 
learn more about its full potential, and improve interagency 
coordination between DOE and the U.S. Department of Agriculture, USDA, 
Forest Service on this topic.
  Specifically, the bill will establish a competitive cost-share grant 
program at the Department of Energy to improve technologies for 
processing woody biomass and bringing down transportation costs, as 
well as innovative technologies for using biomass for heat and power--
from new power plant designs, to neighborhood heating systems called 
``district energy'' systems.
  The bill also creates a cost-share grant program through the U.S. 
Forest Service to support proven biomass technologies, like combined 
heat and power, CHP. To assist with financing, the bill expands a loan 
program run by the USDA Rural Utilities Service to include bioheat and 
biopower, and establishes a new loan program for projects that are not 
located in a rural utility service territory. Finally, the bill would 
support continued research into the environmental sustainability and 
economics of using biomass for heat and power, and would establish a 
collaborative platform for directing this research across the 
Departments of Energy and Agriculture.
  This bill is good for the environment, good for rural jobs, and good 
for stopping wildfires before they start. I encourage my colleagues to 
support it.
  Mr. President, I ask unanimous consent 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. 1294

       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 ``Bioenergy Act of 2015''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Bioheat.--The term ``bioheat'' means the use of woody 
     biomass to generate heat.
       (2) Biopower.--The term ``biopower'' means the use of woody 
     biomass to generate electricity.
       (3) Initiative.--The term ``Initiative'' means the Bioheat 
     and Biopower Initiative established under section 3(a).
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (5) State wood energy team.--The term ``State Wood Energy 
     Team'' means a collaborative group of stakeholders that--
       (A) carry out activities within a State to identify 
     sustainable energy applications for woody biomass; and
       (B) has been designated by the State and Private Forestry 
     organization of the Forest Service as a State Wood Energy 
     Team.

     SEC. 3. BIOHEAT AND BIOPOWER INITIATIVE.

       (a) Establishment.--The Secretary, acting jointly with the 
     Secretary of Agriculture, shall establish a collaborative 
     working group, to be known as the ``Bioheat and Biopower 
     Initiative'', to carry out the duties described in subsection 
     (c).
       (b) Board of Directors.--
       (1) In general.--The Initiative shall be led by a Board of 
     Directors.
       (2) Membership.--The Board of Directors shall consist of--
       (A) representatives of the Department of Energy and the 
     Department of Agriculture, who shall serve as cochairpersons 
     of the Board;
       (B) a senior officer or employee, each of whom shall have a 
     rank that is equivalent to the departmental rank of a 
     representative described in subparagraph (A), of each of--
       (i) the Department of the Interior;
       (ii) the Environmental Protection Agency;
       (iii) the National Science Foundation; and
       (iv) the Office of Science and Technology Policy; and
       (C) at the election of the Secretary and the Secretary of 
     Agriculture, such other members as may be appointed by the 
     Secretaries, in consultation with the Board.
       (3) Meetings.--The Board of Directors shall meet not less 
     frequently than once each quarter.
       (c) Duties.--The Initiative shall--
       (1) coordinate research and development activities relating 
     to biopower and bioheat projects--
       (A) between the Department of Agriculture and the 
     Department of Energy; and
       (B) with other Federal departments and agencies;
       (2) provide recommendations to the Department of 
     Agriculture and the Department of Energy concerning the 
     administration of this Act; and
       (3) ensure that--
       (A) solicitations are open and competitive with respect to 
     applicable annual grant awards; and
       (B) objectives and evaluation criteria of solicitations for 
     those awards are clearly stated and minimally prescriptive, 
     with no areas of special interest.

     SEC. 4. GRANT PROGRAMS.

       (a) Demonstration Grants.--
       (1) Establishment.--The Secretary shall establish, within 
     the Bioenergy Technologies Office, a program under which the 
     Secretary shall provide grants to relevant projects to 
     support innovation and market development in bioheat and 
     biopower.
       (2) Applications.--To be eligible to receive a grant under 
     this subsection, the owner or operator of a relevant project 
     shall submit to the Secretary an application at such time, in 
     such manner, and containing such information as the Secretary 
     may require.
       (3) Allocation.--Of the amounts made available to carry out 
     this section, the Secretary shall allocate--
       (A) $15,000,000 to projects that develop innovative 
     techniques for preprocessing biomass for heat and electricity 
     generation, with the goals of--
       (i) lowering the costs of--

       (I) distributed preprocessing technologies, including 
     technologies designed to promote densification, torrefaction, 
     and the broader commoditization of bioenergy feedstocks; and
       (II) transportation and logistics costs; and

       (ii) developing technologies and procedures that maximize 
     environmental integrity, such as reducing greenhouse gas 
     emissions and local air pollutants and bolstering the health 
     of forest ecosystems and watersheds; and
       (B) $15,000,000 to innovative bioheat and biopower 
     demonstration projects, including--
       (i) district energy projects;
       (ii) innovation in transportation and logistics; and
       (iii) innovative projects addressing the challenges of 
     retrofitting existing coal-fired electricity generation 
     facilities to use biomass.
       (4) Regional distribution.--In selecting projects to 
     receive grants under this subsection, the Secretary shall 
     ensure, to the maximum extent practicable, diverse 
     geographical distribution among the projects.
       (5) Cost share.--The Federal share of the cost of a project 
     carried out using a grant under this subsection shall be 50 
     percent.
       (6) Duties of recipients.--As a condition of receiving a 
     grant under this subsection, the owner or operator of a 
     project shall--
       (A) participate in the applicable working group under 
     paragraph (7);
       (B) submit to the Secretary a report that includes--
       (i) a description of the project and any relevant findings; 
     and

[[Page S2797]]

       (ii) such other information as the Secretary determines to 
     be necessary to complete the report of the Secretary under 
     paragraph (8); and
       (C) carry out such other activities as the Secretary 
     determines to be necessary.
       (7) Working groups.--The Secretary shall establish 2 
     working groups to share best practices and collaborate in 
     project implementation, of which--
       (A) 1 shall be comprised of representatives of feedstock 
     projects that receive grants under paragraph (3)(A); and
       (B) 1 shall comprised of representatives of demand and 
     logistics projects that receive grants under paragraph 
     (3)(B).
       (8) Reports.--Not later than 5 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report describing--
       (A) each project for which a grant has been provided under 
     this subsection;
       (B) any findings as a result of those projects; and
       (C) the state of market and technology development, 
     including market barriers and opportunities.
       (b) Thermally Led Wood Energy Grants.--
       (1) Establishment.--The Secretary of Agriculture, acting 
     through the Chief of the Forest Service, shall establish a 
     program under which the Secretary of Agriculture shall 
     provide grants to support commercially demonstrated thermally 
     led wood energy technologies, with priority given to projects 
     proposed by State Wood Energy Teams.
       (2) Applications.--To be eligible to receive a grant under 
     this subsection, the owner or operator of a relevant project 
     shall submit to the Secretary of Agriculture an application 
     at such time, in such manner, and containing such information 
     as the Secretary of Agriculture may require.
       (3) Allocation.--Of the amounts made available to carry out 
     this section, the Secretary of Agriculture shall allocate 
     $10,000,000 for feasibility assessments, engineering designs, 
     and construction of thermally led wood energy systems, 
     including pellet boilers, district energy systems, combined 
     heat and power installations, and other technologies.
       (4) Regional distribution.--In selecting projects to 
     receive grants under this subsection, the Secretary of 
     Agriculture shall ensure, to the maximum extent practicable, 
     diverse geographical distribution among the projects.
       (5) Cost share.--The Federal share of the cost of a project 
     carried out using a grant under this subsection shall be 50 
     percent.
       [(c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--]
       [(1) $30,000,000 to the Secretary to provide grants under 
     subsection (a); and]
       [(2) $10,000,000 to the Secretary of Agriculture to provide 
     grants under subsection (b).]

     SEC. 5. LOAN PROGRAMS; STRATEGIC ANALYSIS AND RESEARCH.

       (a) Low-interest Loans.--
       (1) Establishment.--The Secretary of Agriculture shall 
     establish, within the Rural Development Office, a low-
     interest loan program to support construction of thermally 
     led residential, commercial or institutional, and industrial 
     wood energy systems.
       (2) Requirements.--The program under this subsection shall 
     be carried out in accordance with such requirements as the 
     Secretary of Agriculture may establish, by regulation, in 
     taking into consideration best practices.
       (3) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary of Agriculture to carry 
     out this subsection $50,000,000.
       (b) Energy Efficiency and Conservation Loan Program.--In 
     addition to loans under subsection (a), thermally led 
     residential, commercial or institutional, and industrial wood 
     energy systems shall be eligible to receive loans under the 
     energy efficiency and conservation loan program of the 
     Department of Agriculture under section 2 of the Rural 
     Electrification Act of 1936 (7 U.S.C. 902).
       (c) Strategic Analysis and Research.--
       (1) In general.--The Secretary, acting jointly with the 
     Secretary of Agriculture (acting through the Chief of the 
     Forest Service), shall establish a bioheat and biopower 
     research program--
       (A) the costs of which shall be divided equally between the 
     Department of Energy and the Department of Agriculture;
       (B) to be overseen by the Board of Directors of the 
     Initiative; and
       (C) to carry out projects and activities--
       (i)(I) to advance research and analysis on the 
     environmental, social, and economic costs and benefits of the 
     United States biopower and bioheat industries, including 
     associated lifecycle analysis of greenhouse gas emissions and 
     net energy analysis; and
       (II) to provide recommendations for policy and investment 
     in those areas;
       (ii) to identify and assess, through a joint effort between 
     the Chief of the Forest Service and the regional combined 
     heat and power groups of the Department of Energy, the 
     feasibility of thermally led district wood energy 
     opportunities in all regions of the Forest Service regions, 
     including by conducting broad regional assessments, 
     feasibility studies, and preliminary engineering assessments 
     at individual facilities; and
       (iii)(I) to offer to communities technical assistance to 
     explore thermally led wood energy opportunities; and
       (II) to provide enhanced services to smaller communities 
     that have limited resources and capacity to pursue new 
     thermally led wood energy opportunities.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary and the Secretary of 
     Agriculture--
       (A) $2,000,000 to carry out paragraph (1)(C)(i);
       (B) $1,000,000 to carry out paragraph (1)(C)(ii); and
       (C) $1,000,000 to carry out paragraph (1)(C)(iii).
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