Energy Crop Production Act of 1995

Summary: Energy Crop Production Act of 1995 - Amends the Food Security Act of 1985 and the Agricultural Act of 1949 to permit harvesting of crops on conservation reserve and conservation use lands that may be used to generate electric power or other energy products("energy crops").

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Crop Production Act of 
1995''.

SEC. 2. FINDINGS.

    Congress finds that energy crops--
            (1) provide many of the soil and water conservation and 
        wildlife habitat benefits associated with cover already planted 
        on land enrolled in the conservation reserve program;
            (2) can be harvested using best management practices 
        without compromising the conservation benefits being achieved 
        by the conservation reserve program;
            (3) can maintain and enhance farm income while allowing 
        land to remain in the conservation reserve program at a reduced 
        cost to the Federal government;
            (4) can supply a significant proportion of the energy needs 
        of the United States using domestic resources that are 
        renewable, sustainable, and environmentally beneficial; and
            (5) can effectively trap carbon from the atmosphere and 
        provide air quality benefits.

SEC. 3. HARVESTING OF ENERGY CROPS ON CONSERVATION RESERVE LAND.

    Section 1232 of the Food Security Act of 1985 (16 U.S.C. 3832) is 
amended by adding at the end the following:
    ``(f) Energy Crops.--
            ``(1) Definition of energy crop.--In this subsection, the 
        term `energy crop' means a herbaceous perennial grass, a short 
        rotation woody coppice species of tree, or other crop, that may 
        be used to generate electric power or other energy product, as 
        determined by the Secretary in consultation with the State 
        technical committee for a State established under section 1261.
            ``(2) Harvesting of energy crops in designated 
        demonstration areas.--In not more than 10 demonstration project 
        areas not exceeding a total of 1,000,000 acres (based on an 
        evaluation by the Secretary of joint industry and landowner 
        proposals to designate areas as demonstration project areas), 
        the Secretary shall permit an owner or operator of land, 
        located within a demonstration project area, that is subject to 
        a contract entered into under this subtitle to harvest an 
        energy crop on the land if the owner or operator--
                    ``(A) carries out appropriate conservation measures 
                and practices on the land;
                    ``(B) harvests energy crops in accordance with this 
                subsection on not more than 75 percent of the land that 
                is subject to the contract, in accordance with a 
                conservation plan and in a manner and at times of the 
                year that ensure that soil, water, and wildlife habitat 
                subject to the conservation reserve program as a whole 
                are not compromised;
                    ``(C) if harvesting of energy crops on the land is 
                discontinued, maintains grasses or trees on the land 
                for the duration of the contract; and
                    ``(D) submits a bid under paragraph (3) that is 
                accepted by the Secretary.
            ``(3) Bids.--To carry out this subsection, the Secretary 
        shall establish a bid system under which an owner or operator 
        of land that is subject to a contract entered into under this 
        subtitle may offer to reduce the rental payments that would 
        otherwise be payable under the contract in exchange for 
        permission to harvest an energy crop on the land.
            ``(4) Cost-Sharing.--The Secretary shall pay an owner or 
        operator of land described in paragraph (2) 50 percent of the 
        cost of converting land under the contract that is planted to 
        grasses not identified as an energy crop to the production of 
        an energy crop.
            ``(5) Duration.--The Secretary shall permit an owner or 
        operator described in paragraph (2)--
                    ``(A) to extend a contract entered into under this 
                subtitle for not to exceed 5 years; and
                    ``(B) on expiration of a contract entered into 
                under this subtitle, obtain a priority, at an 
                appropriate rental rate, for reenrollment of the land 
                subject to the contract.''.

SEC. 4. HARVESTING OF ENERGY CROPS ON CONSERVATION USE ACREAGE.

    Section 503 of the Agricultural Act of 1949 (7 U.S.C. 1463) is 
amended--
            (1) in subsection (c)--
                    (A) in paragraph (7), by striking ``and'' at the 
                end;
                    (B) in paragraph (8), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(9) any acreage on the farm that is planted to an energy 
        crop in accordance with subsection (i).''; and
            (2) by adding at the end the following:
    ``(i) Energy Crops.--
            ``(1) Definition of energy crop.--In this subsection, the 
        term `energy crop' means a herbaceous perennial grass, a short 
        rotation woody coppice species of tree, or other crop, that may 
        be used to generate electric power or other energy product, as 
        determined by the Secretary in consultation with the State 
        technical committee for a State established under section 1261 
        of the Food Security Act of 1985 (16 U.S.C. 3861).
            ``(2) Planting of energy crops.--For purposes of this Act, 
        acreage on a farm that is planted to an energy crop shall be 
        considered devoted to conservation uses if the producers on the 
        farm carry out appropriate conservation measures and practices 
        on the acreage, in accordance with a conservation plan that is 
        approved by the Secretary.
            ``(3) Cost sharing.--The Secretary shall pay the producers 
        on a farm 50 percent of the cost of establishing an energy crop 
        if the producers agree to maintain the crop for at least 3 crop 
        years.''.