[Congressional Record (Bound Edition), Volume 146 (2000), Part 2]
[Senate]
[Pages 1763-1766]
[From the U.S. Government Publishing Office, www.gpo.gov]



          NATIONAL SUSTAINABLE FUELS AND CHEMICALS ACT OF 1999

  Mr. CRAPO. Mr. President, I ask unanimous consent that the Senate now 
proceed to the consideration of Calendar No. 310, S. 935.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will state the bill by title.
  The senior assistant bill clerk read as follows:

       A bill (S. 935) to amend the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 to 
     authorize research to promote the conversion of biomass into 
     biobased industrial products, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Agriculture, Nutrition, 
and Forestry, with an amendment to strike all after enacting clause and 
inserting in lieu thereof the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Sustainable Fuels 
     and Chemicals Act of 1999''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) conversion of biomass into biobased industrial products 
     offers outstanding potential for benefit to the national 
     interest through improved strategic security and balance of 
     payments, healthier rural economies, improved environmental 
     quality, near-zero net greenhouse gas emissions, technology 
     export, and sustainable resource supply;
       (2)(A) biomass is widely available at prices that are 
     competitive with low cost petroleum; and
       (B) the key technical challenges to be overcome in order 
     for biobased industrial products to be cost competitive are 
     finding new technology and reducing the cost of technology 
     for converting biomass into desired biobased industrial 
     products;
       (3) biobased fuels, such as ethanol, have the clear 
     potential to be sustainable, low cost, and high performance 
     fuels that are compatible with both current and future 
     transportation systems and provide near zero net greenhouse 
     gas emissions;
       (4) biobased chemicals--
       (A) can provide functional replacements for essentially all 
     organic chemicals that are currently derived from petroleum; 
     and
       (B) have the clear potential for environmentally benign 
     product life cycles;
       (5) biobased power can provide environmental benefits, 
     promote rural economic development, and diversify energy 
     resource options;
       (6) many biomass feedstocks suitable for industrial 
     processing show the clear potential for sustainable 
     production, in some cases resulting in improved soil 
     fertility and carbon sequestration;
       (7)(A) grain processing mills are biorefineries that 
     produce a diversity of useful food, chemical, feed, and fuel 
     products; and
       (B) technologies that result in further diversification of 
     the range of value-added biobased industrial products can 
     meet a key need for the grain processing industry;
       (8)(A) cellulosic feedstocks are attractive because of 
     their low cost and widespread availability; and
       (B) research resulting in cost-effective technology to 
     overcome the recalcitrance of cellulosic biomass would allow 
     biorefineries to produce fuels and bulk chemicals on a very 
     large scale, with a commensurately large realization of the 
     benefit described in paragraph (1);
       (9) research into the fundamentals to understand important 
     mechanisms of biomass conversion can be expected to 
     accelerate the application and advancement of biomass 
     processing technology by--
       (A) increasing the confidence and speed with which new 
     technologies can be scaled up; and
       (B) giving rise to processing innovations based on new 
     knowledge;
       (10) the added utility of biobased industrial products 
     developed through improvements in processing technology would 
     encourage the design of feedstocks that would meet future 
     needs more effectively;
       (11) the creation of value-added biobased industrial 
     products would create new jobs in construction, 
     manufacturing, and distribution, as well as new higher-valued 
     exports of products and technology;
       (12)(A) because of the relatively short-term time horizon 
     characteristic of private sector investments, and because 
     many benefits of biomass processing are in the national 
     interest, it is appropriate for the Federal Government to 
     provide precommercial investment in fundamental research and 
     research-driven innovation in the biomass processing area; 
     and
       (B) such an investment would provide a valuable complement 
     to ongoing and past governmental support in the biomass 
     processing area; and
       (13) several prominent studies, including studies by the 
     President's Council of Advisors on Science and Technology and 
     the National Research Council--
       (A) support the potential for large research-driven 
     advances in technologies for production of biobased 
     industrial products as well as associated benefits; and
       (B) document the need for a focused, integrated, and 
     innovation-driven research effort to provide the appropriate 
     progress in a timely manner.

     SEC. 3. CONVERSION OF BIOMASS INTO BIOBASED INDUSTRIAL 
                   PRODUCTS.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by 
     adding at the end the following:

 ``Subtitle N--Conversion of Biomass Into Biobased Industrial Products

     ``SEC. 1490. DEFINITIONS.

       ``In this subtitle:
       ``(1) Advisory committee.--The term `Advisory Committee' 
     means the Sustainable Fuels and Chemicals Technical Advisory 
     Committee established by section 1490C.
       ``(2) Biobased industrial product.--The term `biobased 
     industrial product' means any power, fuel, feed, chemical 
     product, or other consumer good derived from biomass.
       ``(3) Biomass.--The term `biomass' means any organic matter 
     that is available on a renewable or recurring basis 
     (excluding old growth timber), including dedicated energy 
     crops and trees, wood and wood residues, plants (including 
     aquatic plants), grasses, agricultural crops, residues, 
     fibers, and animal wastes and other waste materials.
       ``(4) Board.--The term `Board' means the Sustainable Fuels 
     and Chemicals Board established by section 1490B.
       ``(5) Initiative.--The term `Initiative' means the 
     Sustainable Fuels and Chemicals Research Initiative 
     established under section 1490D.
       ``(6) Point of contact.--The term `point of contact' means 
     a point of contact designated under section 1490A(d).
       ``(7) Processing.--The term `processing' means the 
     derivation of biobased industrial products from biomass, 
     including--
       ``(A) feedstock production;
       ``(B) harvest and handling;
       ``(C) pretreatment or thermochemical processing;
       ``(D) fermentation;
       ``(E) catalytic processing;
       ``(F) product recovery; and
       ``(G) coproduct production.

     ``SEC. 1490A. COOPERATION AND COORDINATION IN SUSTAINABLE 
                   FUELS AND CHEMICALS RESEARCH.

       ``(a) In General.--The Secretary of Agriculture and the 
     Secretary of Energy shall cooperate with respect to, and 
     coordinate, policies and procedures that promote research and 
     development leading to the production of biobased industrial 
     products.
       ``(b) Purpose.--The purpose of the cooperation and 
     coordination shall be to--
       ``(1) understand the key mechanisms underlying the 
     recalcitrance of biomass for conversion into biobased 
     industrial products;
       ``(2) develop new and cost-effective technologies that 
     would result in large-scale commercial production of low cost 
     and sustainable biobased industrial products;
       ``(3) ensure that biobased industrial products are 
     developed in a manner that enhances their economic, energy 
     security, and environmental benefits; and
       ``(4) promote the development and use of agricultural and 
     energy crops for conversion into biobased industrial 
     products.
       ``(c) Areas.--In carrying out this subtitle, the Secretary 
     of Agriculture and the Secretary of Energy, in consultation 
     with heads of appropriate departments and agencies, shall 
     promote research and development to--
       ``(1) advance the availability and widespread use of energy 
     efficient, economically competitive, and environmentally 
     sound biobased industrial products in a manner that is 
     consistent with the goals of the United States relating to 
     sustainable and secure supplies of food, chemicals, and fuel;
       ``(2) ensure full consideration of Federal land and land 
     management programs as potential feedstock resources for 
     biobased industrial products; and
       ``(3) assess the environmental, economic, and social impact 
     of production of biobased industrial products from biomass on 
     a large scale.
       ``(d) Points of Contact.--
       ``(1) In general.--To coordinate research and development 
     programs and activities relating to biobased industrial 
     products that are carried out by their respective 
     Departments--
       ``(A) the Secretary of Agriculture shall designate, as the 
     point of contact for the Department of Agriculture, an 
     officer of the Department of Agriculture appointed by the 
     President to a position in the Department before the date of 
     the designation, by and with the advice and consent of the 
     Senate; and
       ``(B) the Secretary of Energy shall designate, as the point 
     of contact for the Department of Energy, an officer of the 
     Department of Energy appointed by the President to a position 
     in the Department before the date of the designation, by and 
     with the advice and consent of the Senate.
       ``(2) Duties.--The points of contact shall jointly--

[[Page 1764]]

       ``(A) assist in arranging interlaboratory and site-specific 
     supplemental agreements for research, development, and 
     demonstration projects relating to biobased industrial 
     products;
       ``(B) serve as cochairpersons of the Board;
       ``(C) administer the Initiative; and
       ``(D) respond in writing to each recommendation of the 
     Advisory Committee made under section 1490C(c)(2).

     ``SEC. 1490B. SUSTAINABLE FUELS AND CHEMICALS BOARD.

       ``(a) Establishment.--There is established the Sustainable 
     Fuels and Chemicals Board to coordinate programs within and 
     among departments and agencies of the Federal Government for 
     the purpose of promoting the use of biobased industrial 
     products by--
       ``(1) maximizing the benefits deriving from Federal grants 
     and assistance; and
       ``(2) bringing coherence to Federal strategic planning.
       ``(b) Membership.--The Board shall consist of:
       ``(1) The point of contact of the Department of Agriculture 
     designated under section 1490A(d)(1)(A), who shall serve as 
     cochairperson of the Board.
       ``(2) The point of contact of the Department of Energy 
     designated under section 1490A(d)(1)(B), who shall serve as 
     cochairperson of the Board.
       ``(3) A senior officer of each of the following agencies 
     who is appointed by the head of the agency and who has a rank 
     that is equivalent to the points of contact:
       ``(A) The Department of the Interior.
       ``(B) The Environmental Protection Agency.
       ``(C) The National Science Foundation.
       ``(D) The Office of Science and Technology Policy.
       ``(4) At the option of the Secretary of Agriculture and the 
     Secretary of Energy, other members appointed by the 
     Secretaries (after consultation with members described in 
     paragraphs (1) through (3)).
       ``(c) Duties.--The Board shall--
       ``(1) coordinate research, development, and demonstration 
     activities relating to biobased industrial products--
       ``(A) between the Department of Agriculture and the 
     Department of Energy; and
       ``(B) with other departments and agencies of the Federal 
     Government; and
       ``(2) provide recommendations to the points of contact 
     concerning administration of this subtitle.
       ``(d) Funding.--Each agency represented on the Board is 
     encouraged to provide funds for any purpose under this 
     subtitle.
       ``(e) Meetings.--The Board shall meet at least quarterly to 
     enable the Board to carry out the duties of the Board under 
     subsection (c).

     ``SEC. 1490C. SUSTAINABLE FUELS AND CHEMICALS TECHNICAL 
                   ADVISORY COMMITTEE.

       ``(a) Establishment.--There is established the Sustainable 
     Fuels and Chemicals Technical Advisory Committee to--
       ``(1) advise the Secretary of Agriculture, the Secretary of 
     Energy, and the points of contact concerning--
       ``(A) the technical focus and direction of requests for 
     proposals issued under the Initiative; and
       ``(B) procedures for reviewing and evaluating the 
     proposals;
       ``(2) facilitate consultations and partnerships among 
     Federal and State agencies, agricultural producers, industry, 
     consumers, the research community, and other interested 
     groups to carry out program activities relating to the 
     Initiative; and
       ``(3) evaluate and perform strategic planning on program 
     activities relating to the Initiative.
       ``(b) Membership.--The Committee shall consist of the 
     following members appointed by the points of contact:
       ``(1) An individual affiliated with the biobased industrial 
     products industry.
       ``(2) An individual affiliated with a college or university 
     who has expertise in biobased industrial products.
       ``(3) 2 prominent engineers or scientists from government 
     or academia who have expertise in biobased industrial 
     products.
       ``(4) An individual affiliated with a commodity trade 
     association.
       ``(5) An individual affiliated with an environmental or 
     conservation organization.
       ``(6) An individual associated with State government who 
     has expertise in biobased industrial products.
       ``(7) At the option of the points of contact, other 
     members.
       ``(c) Duties.--The Advisory Committee shall--
       ``(1) advise the points of contact with respect to the 
     Initiative; and
       ``(2) evaluate whether, and make recommendations in writing 
     to the Board to ensure that--
       ``(A) funds authorized for the Initiative are distributed 
     and used in a manner that is consistent with the goals of the 
     Initiative;
       ``(B) the points of contact are funding proposals under 
     this subtitle that are selected on the basis of merit, as 
     determined by an independent panel of scientific and 
     technical peers; and
       ``(C) activities under this subtitle are carried out in 
     accordance with this subtitle.
       ``(d) Meetings.--The Advisory Committee shall meet at least 
     quarterly to enable the Advisory Committee to carry out the 
     duties of the Advisory Committee under subsection (c).

     ``SEC. 1490D. SUSTAINABLE FUELS AND CHEMICALS RESEARCH 
                   INITIATIVE.

       ``(a) In General.--The Secretary of Agriculture and the 
     Secretary of Energy, acting through their respective points 
     of contact and in consultation with the Board, shall 
     establish and carry out a Sustainable Fuels and Chemicals 
     Research Initiative under which competitively-awarded grants, 
     contracts, and financial assistance are provided to, or 
     entered into with, eligible entities to carry out research on 
     biobased industrial products.
       ``(b) Purposes.--The purposes of grants, contracts, and 
     assistance under this section shall be to--
       ``(1) stimulate collaborative activities by a diverse range 
     of experts in all aspects of biomass processing for the 
     purpose of conducting fundamental and innovation-targeted 
     research and technology development;
       ``(2) enhance creative and imaginative approaches toward 
     biomass processing that will serve to develop the next 
     generation of advanced technologies making possible low cost 
     and sustainable biobased industrial products;
       ``(3) strengthen the intellectual resources of the United 
     States through the training and education of future 
     scientists, engineers, managers, and business leaders in the 
     field of biomass processing; and
       ``(4) promote integrated research partnerships among 
     colleges, universities, national laboratories, Federal and 
     State research agencies, and the private sector as the best 
     means of overcoming technical challenges that span multiple 
     research and engineering disciplines and of gaining better 
     leverage from limited Federal research funds.
       ``(c) Eligible Entities.--
       ``(1) In general.--To be eligible for a grant, contract, or 
     assistance under this section, an applicant shall be--
       ``(A) a college or university;
       ``(B) a national laboratory;
       ``(C) a Federal research agency;
       ``(D) a State research agency;
       ``(E) a private sector entity;
       ``(F) a nonprofit organization; or
       ``(G) a consortium of 2 or more entities described in 
     subparagraphs (A) through (E).
       ``(2) Administration.--After consultation with the Board, 
     the points of contact, on behalf of the Board, 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--
       ``(i) demonstrates potential for significant advances in 
     biomass processing;
       ``(ii) demonstrates potential to substantially impact 
     scale-sensitive national objectives such as sustainable 
     resource supply, reduced greenhouse gas emissions, healthier 
     rural economies, and improved strategic security and trade 
     balances; and
       ``(iii) would improve knowledge of important biomass 
     processing systems that demonstrate potential for commercial 
     applications;
       ``(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 preference to applications that--
       ``(i) involve a consortia of experts from multiple 
     institutions; and
       ``(ii) encourage the integration of disciplines and 
     application of the best technical resources.
       ``(d) Uses of Grants, Contracts, and Assistance.--A grant, 
     contract, or assistance under this section shall be used to 
     conduct--
       ``(1) research on process technology for overcoming the 
     recalcitrance of biomass, including research on key 
     mechanisms, advanced technologies, and demonstration test 
     beds for--
       ``(A) feedstock pretreatment and hydrolysis of cellulose 
     and hemicellulose, including new technologies for--
       ``(i) enhanced sugar yields;
       ``(ii) lower overall chemical use;
       ``(iii) less costly materials; and
       ``(iv) cost reduction;
       ``(B) development of novel organisms and other approaches 
     to substantially lower the cost of cellulase enzymes and 
     enzymatic hydrolysis, including dedicated cellulase 
     production and consolidated bioprocessing strategies; and
       ``(C) approaches other than enzymatic hydrolysis for 
     overcoming the recalcitrance of cellulosic biomass;
       ``(2) research on technologies for diversifying the range 
     of products that can be efficiently and cost-competitively 
     produced from biomass, including research on--
       ``(A) metabolic engineering of biological systems 
     (including the safe use of genetically modified crops) to 
     produce novel products, especially commodity products, or to 
     increase product selectivity and tolerance, with a research 
     priority on the development of biobased products that can 
     compete in performance and cost with fossil-based products;
       ``(B) catalytic processing to convert intermediates of 
     biomass processing into products of interest;
       ``(C) separation technologies for cost-effective product 
     recovery and purification;
       ``(D) approaches other than metabolic engineering and 
     catalytic conversion of intermediates of biomass processing;
       ``(E) advanced biomass gasification technologies, including 
     coproduction of power and heat as an integrated component of 
     biomass processing, with the possibility of generating excess 
     electricity for sale; and
       ``(F) related research in advanced turbine and stationary 
     fuel cell technology for production of electricity from 
     biomass; and

[[Page 1765]]

       ``(3) research aimed at ensuring the environmental 
     performance and economic viability of biobased industrial 
     products and their raw material input of biomass when 
     considered as an integrated system, including research on--
       ``(A) the analysis of, and strategies to enhance, the 
     environmental performance and sustainability of biobased 
     industrial products, including research on--
       ``(i) accurate measurement and analysis of greenhouse gas 
     emissions, carbon sequestration, and carbon cycling in 
     relation to the life cycle of biobased industrial products 
     and feedstocks with respect to other alternatives;
       ``(ii) evaluation of current and future biomass resource 
     availability;
       ``(iii) development and analysis of land management 
     practices and alternative biomass cropping systems that 
     ensure the environmental performance and sustainability of 
     biomass production and harvesting;
       ``(iv) land, air, water, and biodiversity impacts of large-
     scale biomass production, processing, and use of biobased 
     industrial products relative to other alternatives; and
       ``(v) biomass gasification and combustion to produce 
     electricity;
       ``(B) the analysis of, and strategies to enhance, the 
     economic viability of biobased industrial products, including 
     research on--
       ``(i) the cost of the required process technology;
       ``(ii) the impact of coproducts, including power and heat 
     generation, on biobased industrial product price and large-
     scale economic viability; and
       ``(iii) interactions between an emergent biomass refining 
     industry and the petrochemical refining infrastructure; and
       ``(C) the field and laboratory research related to 
     feedstock production with the interrelated goals of enhancing 
     the sustainability, increasing productivity, and decreasing 
     the cost of biomass processing, including research on--
       ``(i) altering biomass to make biomass easier and less 
     expensive to process;
       ``(ii) existing and new agricultural and energy crops that 
     provide a sustainable resource for conversion to biobased 
     industrial products while simultaneously serving as a source 
     for coproducts such as food, animal feed, and fiber;
       ``(iii) improved technologies for harvest, collection, 
     transport, storage, and handling of crop and residue 
     feedstocks; and
       ``(iv) development of economically viable cropping systems 
     that improve the conservation and restoration of marginal 
     land.
       ``(e) Authorization of Appropriations.--In addition to any 
     other amounts that are authorized to be appropriated, there 
     are authorized to be appropriated to carry out this section 
     $49,000,000 for each of fiscal years 2000 through 2005.

     ``SEC. 1490E. ADMINISTRATIVE SUPPORT AND FUNDS.

       ``(a) In General.--To the extent administrative support and 
     funds are not provided by other agencies under subsection 
     (b), the Secretary of Energy shall provide such 
     administrative support and funds of the Department of Energy 
     to the Board and the Advisory Committee as are necessary to 
     enable the Board and the Advisory Committee to carry out this 
     subtitle.
       ``(b) Other Agencies.--The Secretary of Agriculture and the 
     heads of the agencies referred to, or appointed under, 
     paragraphs (3) and (4) of section 1490B(a) may, and are 
     encouraged to, provide administrative support and funds of 
     their respective agencies to the Board and the Advisory 
     Committee.

     ``SEC. 1490F. REPORTS.

       ``For each fiscal year that funds are made available to 
     carry out this subtitle, the Secretary of Agriculture and the 
     Secretary of Energy shall jointly transmit to Congress a 
     detailed report on--
       ``(1) the status and progress of the Initiative, including 
     a certification from the Board that funds authorized for the 
     Initiative are distributed and used in a manner that is 
     consistent with the goals of the Initiative; and
       ``(2) the general status of cooperation and research 
     efforts carried out by each Secretary with respect to 
     sustainable fuels, chemicals, and electricity derived from 
     biomass, including a certification from the Board that the 
     points of contact are funding proposals that are selected on 
     the basis of merit, as determined by an independent panel of 
     scientific and technical peers.

     ``SEC. 1490G. AUTHORIZATION OF APPROPRIATIONS FOR ETHANOL 
                   RESEARCH PILOT PLANT.

       ``There are authorized to be appropriated to construct a 
     Department of Agriculture corn-based ethanol research pilot 
     plant a total of $14,000,000 for fiscal year 2000 and 
     subsequent fiscal years.''.

     SEC. 4. USE OF CONSERVATION RESERVE LAND FOR RECOVERY OF 
                   BIOMASS USED IN ENERGY PRODUCTION.

       Section 1232(a)(7) of the Food Security Act of 1985 (16 
     U.S.C. 3832(a)(7)) is amended--
       (1) by striking ``except that the Secretary may permit 
     harvesting'' and inserting ``except that the Secretary--
       ``(A) may permit--
       ``(i) harvesting'';
       (2) by striking ``emergency, and the Secretary may permit 
     limited'' and inserting ``emergency; and
       ``(ii) limited'';
       (3) by inserting ``and'' after the semicolon at the end; 
     and
       (4) by adding at the end the following:
       ``(B) shall approve not more than 18 projects under which 
     crops on land subject to the contract may be harvested for 
     recovery of biomass used in energy production if--
       ``(i) no acreage subject to the contract is harvested more 
     than once every other year;
       ``(ii) not more than 25 percent of the total acreage 
     enrolled in the program under this subchapter in any crop 
     reporting district (as designated by the Secretary), is 
     harvested in any 1 year;
       ``(iii) no portion of the crop is used for any commercial 
     purpose other than energy production from biomass;
       ``(iv) no wetland, or acreage of any type enrolled in a 
     partial field conservation practice (including riparian 
     forest buffers, filter strips, and buffer strips), is 
     harvested;
       ``(v) the owner or operator agrees to a payment reduction 
     under this section in an amount determined by the Secretary;
       ``(vi) the owner or operator agrees to commission and 
     submit to the Secretary a study and report, to be conducted 
     and written by a third party approved by the Secretary, on 
     the impact of the biomass production and harvesting on 
     wildlife; and
       ``(vii) the owner or operator agrees to such other terms 
     and conditions as the Secretary, in consultation with the 
     State technical committee for the State and appropriate 
     conservation and wildlife advocates, may establish to ensure 
     that the production and harvesting of biomass crops minimize 
     disturbance of wildlife habitat and are otherwise consistent 
     with the purposes of the program established under this 
     subchapter, with any biomass harvesting project permitted to 
     harvest at least 50,000 acres per year.''.


                           Amendment No. 2862

                   (Purpose: To provide a substitute)

  Mr. CRAPO. Mr. President, I send an amendment to the desk and ask for 
its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Idaho [Mr. Crapo], for Mr. Murkowski, 
     proposes an amendment numbered 2862.

  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.'')
  Mr. LUGAR. Mr. President, I rise to recommend that the Senate pass S. 
935.
  At a time when American farmers and rural communities are having a 
difficult time making ends meet, it is appropriate for the Senate to 
support this initiative that holds great promise for agriculture, 
strengthens America's energy security and helps clean America's air and 
water while dramatically reducing greenhouse gas emissions.
  Early civilizations relied on plants and trees for all their energy 
and food needs. With the passage of time and technological advancement, 
however, an increasing share of the world's energy demands shifted from 
plants and trees toward fossil fuels. Time and technology march on, and 
today we witness the beginning of a revolution from non-renewable 
fossil fuels toward renewable resources that can help meet the energy 
demands of a world now numbering six billion people. Ironically, plants 
and trees are once again being valued as raw material for energy 
production because they contain an enormous store of energy freely 
delivered by the sun.
  Using nature's renewable raw material for production of needed fuels, 
chemicals and energy is not a new idea. What is new, however, is a 
better understanding of chemistry and molecular biology which has led 
to the development of advanced biotechnologies and processing 
techniques for efficiently converting plants to energy. With these 
advances, it is now possible to envisage a future where the world's 
thirst for additional sources of energy is fueled by biomass.
  Biobased fuels are our best means of reducing American dependence on 
imported oil. Reliance on the unstable states of the Middle East 
adversely impacts American strategic security, and massive oil imports 
skew our balance of payments. Fuels and chemicals derived from biomass 
will reduce our dependence on Middle Eastern oil without necessitating 
a rebuilding of the existing gasoline infrastructure. With the need for 
affordable energy rising as population grows, the Middle East will 
control nearly three-quarters of the world's oil this century. We have 
stark options: submit to increased influence of foreign oil cartels; 
wrangle over pipeline routes to new oil supplies at the ends of the 
Earth, such as the Caspian region; or, support research that could lead 
to a revolution in the way we produce energy.

[[Page 1766]]

  In addition to fuels, biobased chemicals have the potential to 
replace essentially all chemicals currently derived from petroleum, and 
they are often endowed with superior performance characteristics. The 
manufacturing of biobased products is generally more environmentally 
friendly than analogue petrochemical processes.
  Fuels, cloth fibers, plastics and adhesives are already produced from 
corn; the new genetic engineering techniques will make it possible to 
use entire plants, rather than just the tiny portion of edible grains. 
With sound land use policies, local crops that enrich the soil, prevent 
erosion and improve local environmental conditions can be planted and 
then harvested for co-production of food, fuel, chemicals, electricity 
and materials. Rural communities will be strengthened through the 
diversification of marketable agricultural products and farmers will 
have expanded sources of income.
  Before we are able to reap the outstanding benefits offered through 
utilization of America's sustainable biomass resource, costs of the new 
conversion technology must be significantly reduced. Research offers 
the only systematic means for creating the innovations and technical 
improvements that will lower the costs of biomass processing. Given the 
relatively short-term horizon characteristic of private sector 
investments, and because many benefits of biomass processing are in the 
public interest, the Federal government has a compelling mandate to 
fund the necessary innovation-driven research that will result in cost 
effective technologies for biomass conversion.
  Although government sponsored research programs have been largely 
responsible for demonstrating the potential of biomass conversion 
technology, coordination among key Federal agencies is disjointed and 
funding levels are declining. The Biomass Research and Development Act 
is designed to address these shortcomings. America's leading technical 
experts from universities, national laboratories and the private sector 
will be brought together in a dynamic research initiative with the 
purpose of overcoming technical barriers to low cost biomass 
conversion.
  At a time when political compromise seems elusive and progress on 
environmental and energy issues often seems slow, I am convinced that 
the idea of encouraging human ingenuity to create a sustainable 
resource for clean fuels and chemicals represents a remarkable 
opportunity for consensus. Working together we can promote research 
that will improve our national security and balance of payments, reduce 
greenhouse gas emissions and strengthen rural economies.
  Mr. President, I would like to take this opportunity to thank Dr. 
Joseph Michels, my science policy adviser, for the excellent advice he 
has provided me on this issue. Dr. Michels is leaving my staff to 
assume an important post at Princeton University. I shall miss him.
  I urge my colleagues to support this bill.


                      jurisdictional clarification

 Mr. LUGAR. I would like to enter into a colloquy with my 
distinguished colleague, Senator Murkowski, Chairman of the Energy and 
Natural Resources Committee. I want to inform my colleague that any 
action taken by the Committee on Agriculture, Nutrition, and Forestry 
in relation to S. 935 is not an attempt to encroach on the jurisdiction 
of the Committee on Energy and Natural Resources. Further, the fact 
that S. 935 was reported from the Committee on Agriculture, Nutrition, 
and Forestry does not affect the jurisdiction of the Committee on 
Energy and Natural Resources over energy matters, including biofuels 
and bioenergy. Specifically, USDA biomass research and development 
programs remain within the jurisdiction of the Committee on 
Agriculture, Nutrition, and Forestry and DOE biomass research and 
development programs remain within the jurisdiction of the Committee on 
Energy and Natural Resources.
  Mr. MURKOWSKI. I thank my colleague, the Chairman of the Agriculture, 
Nutrition, and Forestry Committee, for addressing this matter and 
clarifying our understanding that this legislation does not alter the 
jurisdiction of the Committee on Energy and Natural Resources.
  I would also like to note that the authorization of appropriations 
contained in section 3 of S. 935 clarifies that money may be 
appropriated for the biomass research and development activities 
described in the bill pursuant to the existing general authority of the 
Secretary of Energy to fund biomass research and development, and does 
not create a new specific level of authorization for this program.
  Mr. LUGAR. I agree and thank the Senator from Alaska.
  Mr. CRAPO. Mr. President, I ask unanimous consent that the amendment 
be agreed to, the committee substitute, as amended, be agreed to, the 
bill be read the third time and passed, the amendment to the title be 
agreed to, the motion to reconsider be laid upon the table, and that 
any statements relating to the bill appear at this point in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2862) was agreed to.
  The committee amendment, as amended, was agreed to.
  The bill (S. 935), as amended, was read the third time and passed.
  The title was amended so as to read:

       To authorize research to promote the conversion of biomass 
     into biobased industrial products, and for other purposes.

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