I 

108TH CONGRESS 

1ST SESSION H. R. 1550

To authorize the Secretary of the Interior and the Secretary of Agriculture 

to make grants to improve the commercial value of forest biomass for 

electric energy, useful heat, transportation fuels, petroleum-based product 

substitutes, and other commercial purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2003

Mr. REHBERG (for himself, Mr. MCINNIS, and Mr. RENZI) introduced the following bill; which was referred to the Committee on Agriculture, and in 

addition to the Committees on Resources and Science, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL

To authorize the Secretary of the Interior and the Secretary 

of Agriculture to make grants to improve the commercial 

value of forest biomass for electric energy, useful heat, 

transportation fuels, petroleum-based product substitutes, and other commercial purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

•HR 1550 IH 

1 SECTION 1. GRANTS TO IMPROVE THE COMMERCIAL 

2 VALUE OF FOREST BIOMASS FOR ELECTRIC 

3 ENERGY, USEFUL HEAT, TRANSPORTATION 

4 FUELS, PETROLEUM-BASED PRODUCT SUB5 STITUTES, AND OTHER COMMERCIAL PUR6 POSES. 

7 (a) FINDINGS.—Congress finds the following: 

8 (1) Thousands of communities in the United 

9 States, many located near Federal lands, are at risk 

10 to wildfire. Approximately 190,000,000 acres of land 

11 managed by the Secretary of Agriculture and the 

12 Secretary of the Interior are at risk of catastrophic 

13 fire in the near future. The accumulation of heavy 

14 forest fuel loads continues to increase as a result of 

15 disease, insect infestations, and drought, further 

16 raising the risk of fire each year. 

17 (2) In addition, more than 70,000,000 acres 

18 across all land ownerships are at risk to higher than 

19 normal mortality over the next 15 years from insect 

20 infestation and disease. High levels of tree mortality 

21 from insects and disease result in increased fire risk, 

22 loss of old growth, degraded watershed conditions, 

23 and changes in species diversity and productivity, as 

24 well as diminished fish and wildlife habitat and de25 creased timber values. 
3

•HR 1550 IH 

1 (3) Preventive treatments such as removing fuel 

2 loading, ladder fuels, and hazard trees, planting 

3 proper species mix and restoring and protecting 

4 early successional habitat, and other specific restora5 tion treatments designed to reduce the susceptibility 

6 of forest land, woodland, and rangeland to insect 

7 outbreaks, disease, and catastrophic fire present the 

8 greatest opportunity for long-term forest health by 

9 creating a mosaic of species-mix and age distribu10 tion. Such prevention treatments are widely acknowl11 edged to be more successful and cost effective than 

12 suppression treatments in the case of insects, dis13 ease, and fire. 

14 (4) The by-products of preventive treatment 

15 (wood, brush, thinnings, chips, slash, and other haz16 ardous fuels) removed from forest lands, woodlands 

17 and rangelands represent an abundant supply of bio18 mass for biomass-to-energy facilities and raw mate19 rial for business. There are currently few markets 

20 for the extraordinary volumes of by-products being 

21 generated as a result of the necessary large-scale 

22 preventive treatment activities. 

23 (5) The United States should—

24 (A) promote economic and entrepreneurial 

25 opportunities in using by-products removed 
4

•HR 1550 IH 

1 through preventive treatment activities related 

2 to hazardous fuels reduction, disease, and insect 

3 infestation; and 

4 (B) develop and expand markets for tradi5 tionally underused wood and biomass as an out6 let for by-products of preventive treatment ac7 tivities. 

8 (b) DEFINITIONS.—In this section: 

9 (1) BIOMASS.—The term ‘‘biomass’’ means 

10 trees and woody plants, including limbs, tops, nee11 dles, and other woody parts, and by-products of pre12 ventive treatment, such as wood, brush, thinnings, 

13 chips, and slash, that are removed—

14 (A) to reduce hazardous fuels; or 

15 (B) to reduce the risk of or to contain dis16 ease or insect infestation. 

17 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

18 has the meaning given the term in section 4(e) of 

19 the Indian Self-Determination and Education Assist20 ance Act (25 U.S.C. 450b(e)). 

21 (3) PERSON.—The term ‘‘person’’ includes—

22 (A) an individual; 

23 (B) a community (as determined by the 

24 Secretary concerned); 

25 (C) an Indian tribe;
5

•HR 1550 IH 

1 (D) a small business, micro-business, or a 

2 corporation that is incorporated in the United 

3 States; and 

4 (E) a nonprofit organization. 

5 (4) PREFERRED COMMUNITY.—The term ‘‘pre6 ferred community’’ means—

7 (A) any town, township, municipality, or 

8 other similar unit of local government (as deter9 mined by the Secretary concerned) that—

10 (i) has a population of not more than 

11 50,000 individuals; and 

12 (ii) the Secretary concerned, in the 

13 sole discretion of the Secretary concerned, 

14 determines contains or is located near 

15 land, the condition of which is at signifi16 cant risk of catastrophic wildfire, disease, 

17 or insect infestation or which suffers from 

18 disease or insect infestation; or 

19 (B) any county that—

20 (i) is not contained within a metro21 politan statistical area; and 

22 (ii) the Secretary concerned, in the 

23 sole discretion of the Secretary concerned, 

24 determines contains or is located near 

25 land, the condition of which is at signifi-
6

•HR 1550 IH 

1 cant risk of catastrophic wildfire, disease, 

2 or insect infestation or which suffers from 

3 disease or insect infestation. 

4 (5) SECRETARY CONCERNED.—The term ‘‘Sec5 retary concerned’’ means—

6 (A) the Secretary of Agriculture with re7 spect to National Forest System lands; and 

8 (B) the Secretary of the Interior with re9 spect to Federal lands under the jurisdiction of 

10 the Secretary of the Interior and Indian lands. 

11 (c) BIOMASS COMMERCIAL USE GRANT PROGRAM.—

12 (1) IN GENERAL.—The Secretary concerned 

13 may make grants to any person that owns or oper14 ates a facility that uses biomass as a raw material 

15 to produce electric energy, sensible heat, transpor16 tation fuels, or substitutes for petroleum-based prod17 ucts to offset the costs incurred to purchase biomass 

18 for use by such facility. 

19 (2) GRANT AMOUNTS.—A grant under this sub20 section may not exceed $20 per green ton of biomass 

21 delivered. 

22 (3) MONITORING OF GRANT RECIPIENT ACTIVI23 TIES.—As a condition of a grant under this sub24 section, the grant recipient shall keep such records 

25 as the Secretary concerned may require to fully and 
7

•HR 1550 IH 

1 correctly disclose the use of the grant funds and all 

2 transactions involved in the purchase of biomass. 

3 Upon notice by a representative of the Secretary 

4 concerned, the grant recipient shall afford the rep5 resentative reasonable access to the facility that pur6 chases or uses biomass and an opportunity to exam7 ine the inventory and records of the facility. 

8 (d) IMPROVED BIOMASS USE GRANT PROGRAM.—

9 (1) IN GENERAL.—The Secretary concerned 

10 may make grants to persons to offset the cost of 

11 projects to develop or research opportunities to im12 prove the use of, or add value to, biomass. In mak13 ing such grants, the Secretary concerned shall give 

14 preference to persons in preferred communities. 

15 (2) SELECTION.—The Secretary concerned shall 

16 select a grant recipient under paragraph (1) after 

17 giving consideration to the anticipated public bene18 fits of the project, including the potential to develop 

19 thermal or electric energy resources or affordable en20 ergy, opportunities for the creation or expansion of 

21 small businesses and micro-businesses, and the po22 tential for new job creation. 

23 (3) GRANT AMOUNT.—A grant under this sub24 section may not exceed $100,000. 
8

•HR 1550 IH 

1 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated $50,000,000 for each of the 

3 fiscal years 2004 through 2014 to carry out this section. 

4 (f) REPORT.—Not later than October 1, 2010, the 

5 Secretary of Agriculture, in consultation with the Sec6 retary of the Interior, shall submit to the Committee on 

7 Energy and Natural Resources and the Committee on Ag8 riculture, Nutrition, and Forestry of the Senate and the 

9 Committee on Resources and the Committee on Agri10 culture of the House of Representatives a report describ11 ing the results of the grant programs authorized by this 

12 section. The report shall include the following: 

13 (1) An identification of the size, type, and the 

14 use of biomass by persons that receive grants under 

15 this section. 

16 (2) The distance between the land from which 

17 the biomass was removed and the facility that used 

18 the biomass. 

19 (3) The economic impacts, particularly new job 

20 creation, resulting from the grants to and operation 

21 of the eligible operations.

Æ