Bioenergy Act of 2015

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
                            (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).

Summary: Bioenergy Act of 2015 This bill requires the Department of Energy (DOE) and the Department of Agriculture (USDA) to establish a working group known as the Bioheat and Biopower Initiative to: coordinate research and development relating to biopower and bioheat projects, provide recommendations to USDA and DOE regarding the implementation of this bill, and ensure that grants are awarded using an open and competitive process. Bioheat is the use of woody biomass to generate heat, and biopower is the use of woody biomass to generate electricity. DOE must establish: (1) a grant program for projects to support innovation and market development in bioheat and biopower, and (2) working groups to share best practices and collaborate in project implementation. The Forest Service must establish a grant program to support commercially demonstrated thermally led wood energy technologies. Priority is given to projects proposed by State Wood Energy Teams, which are groups of stakeholders that identify sustainable energy applications for woody biomass. The bill requires USDA to establish a loan program to support construction of thermally led residential, commercial or institutional, and industrial wood energy systems. The bill also makes these projects eligible for loans under USDA's energy efficiency and conservation loan program. DOE and the Forest Service must establish a bioheat and biopower research program to advance research on the costs and benefits, recommend policies and investments, assess the feasibility of thermally led district wood energy opportunities, and assist communities pursuing thermally led wood energy opportunities.