```

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2270 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 2270

To amend the Farm Security and Rural Investment Act of 2002 to improve 
                            energy programs.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 29, 2012

 Mr. Harkin (for himself, Mr. Franken, Ms. Klobuchar, and Mr. Conrad) 
introduced the following bill; which was read twice and referred to the 
           Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL

 
To amend the Farm Security and Rural Investment Act of 2002 to improve 
                            energy programs.

    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 ``Rural Energy Investment Act of 
2012''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) production of energy from domestic sources offers 
        considerable economic and energy security benefits to the 
        United States, including enduring and desirable jobs;
            (2) the agricultural and forestry sectors of the United 
        States offer significant potential for production of renewable 
        energy;
            (3) both renewable energy production and adoption of energy 
        efficiency offer considerable environmental benefits; and
            (4) investments in energy efficiency projects and renewable 
        energy systems in rural areas of the United States provide very 
        significant energy security, economic, and environmental 
        benefits to the entire United States in addition to the rural 
        area benefits.

SEC. 3. DEFINITIONS.

    Section 9001 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8101) is amended--
            (1) by redesignating paragraphs (5) through (14) as 
        paragraphs (6) through (15), respectively; and
            (2) by inserting after paragraph (4) the following:
            ``(5) Biochemical.--The term `biochemical' means a chemical 
        derived from renewable biomass.''.

SEC. 4. BIOBASED MARKETS PROGRAM.

    Section 9002 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8102) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (3), by adding at the end the 
                following:
                    ``(F) Biobased product designations.--Not later 
                than 1 year after the date of enactment of this 
                subparagraph, the Secretary shall--
                            ``(i) increase the number of categories of 
                        biobased products designated and individual 
                        biobased products eligible for preferred 
                        purchasing by 50 percent;
                            ``(ii) begin to designate intermediate 
                        ingredients or feedstocks in the guidelines 
                        issued under this paragraph; and
                            ``(iii) develop a recommendation for the 
                        designation of complex and finished biobased 
                        products in those guidelines.
                    ``(G) Changes in procurement mechanisms.--
                            ``(i) Electronic product procurement 
                        catalogs.--The Secretary shall work with 
                        relevant officials in agencies that have 
                        electronic product procurement catalogs to 
                        identify and implement solutions to increase 
                        the visibility of biobased and other 
                        sustainable products.
                            ``(ii) Agency-specific product 
                        specifications.--
                                    ``(I) In general.--Not later than 1 
                                year after the date of enactment of 
                                this subparagraph and every 4 years 
                                thereafter, the Secretary, in 
                                coordination with other appropriate 
                                officials, shall work with the senior 
                                sustainability officer of each agency 
                                that has established agency-specific 
                                product specifications to review and 
                                revise the product specifications to 
                                ensure that, to the maximum extent 
                                practicable, the product 
                                specifications--
                                            ``(aa) require the use of 
                                        sustainable products, including 
                                        biobased products designated in 
                                        accordance with this section; 
                                        and
                                            ``(bb) do not contain any 
                                        language prohibiting the use of 
                                        biobased products.
                                    ``(II) Report.--Results of the 
                                reviews conducted under subclause (I) 
                                shall be reported annually to the 
                                Office of Management and Budget, the 
                                Office of Science and Technology 
                                Policy, and the appropriate committees 
                                of Congress.
                    ``(H) Reporting.--
                            ``(i) In general.--Not later than 1 year 
                        after the date of enactment of this 
                        subparagraph, the Secretary and the Federal 
                        Acquisition Regulatory Council shall jointly 
                        propose an amendment to the Federal Acquisition 
                        Regulation to require reporting of biobased 
                        product purchases, to be made public on an 
                        annual basis.
                            ``(ii) Reporting template.--After the 
                        promulgation of the proposed amendment 
                        described in clause (i), the Secretary, in 
                        consultation with the Chief Acquisition 
                        Officers Council, shall develop and make 
                        available a reporting template to facilitate 
                        the annual reporting requirement.''; and
                    (B) by adding at the end the following:
            ``(5) Compliance.--The Secretary may take such action as 
        the Secretary determines to be necessary--
                    ``(A) to determine the compliance rate among 
                Federal agencies in buying designated biobased 
                products; and
                    ``(B) to determine whether vendor and contractor 
                claims about biobased products meeting item designation 
                definitions and minimum required biobased content are 
                accurate.'';
            (2) in subsection (b)--
                    (A) in paragraph (3)--
                            (i) by striking ``The Secretary'' and 
                        inserting the following:
                    ``(A) In general.--The Secretary''; and
                            (ii) by adding at the end the following:
                    ``(B) Auditing and compliance.--The Secretary may 
                carry out such auditing and compliance activities as 
                the Secretary determines to be necessary to ensure 
                compliance with subparagraph (A), including the 
                imposition of a civil penalty of not more than $10,000 
                on a person who misuses the label and, after receiving 
                a notice of violation, fails to take action to correct 
                the misuse described in the notice.''; and
                    (B) by adding at the end the following:
            ``(4) Complex and finished products.--Not later than 1 year 
        after the date of enactment of this paragraph, the Secretary 
        shall develop a recommendation for labeling complex and 
        finished products.'';
            (3) by redesignating subsections (d) through (h) as 
        subsections (e) through (i), respectively;
            (4) by inserting after subsection (c) the following:
    ``(d) Outreach, Education, and Promotion.--
            ``(1) In general.--The Secretary shall carry out a program 
        of outreach, education, and promotion activities intended to 
        increase knowledge, awareness, and benefits of biobased 
        products.
            ``(2) Authorized activities.--In carrying out this 
        subsection, the Secretary, at a minimum, shall--
                    ``(A) not later than 1 year after the date of 
                enactment of this paragraph, update all existing 
                BioPreferred and related sustainable acquisition 
                training materials of the Department;
                    ``(B) work cooperatively with the senior 
                sustainability officers and chief acquisition officers 
                of Federal agencies to immediately implement such 
                BioPreferred program agency education and outreach 
                programs as are necessary to meet the requirements of 
                this section;
                    ``(C) work actively with groups that support 
                employment for the blind or disabled, such as the 
                Committee for Purchase From People Who Are Blind or 
                Severely Disabled, to promote education and outreach 
                regarding BioPreferred AbilityOne products to--
                            ``(i) program, technical, and contracting 
                        personnel; and
                            ``(ii) Federal agency purchase card 
                        holders;
                    ``(D) conduct consumer education and outreach 
                (including consumer and awareness surveys);
                    ``(E) conduct outreach to and support for State and 
                local governments interested in implementing biobased 
                purchasing programs;
                    ``(F) partner with industry and nonprofit groups to 
                produce educational and outreach materials and conduct 
                educational and outreach events;
                    ``(G) sponsor special conferences and events to 
                bring together buyers and sellers of biobased products; 
                and
                    ``(H) support pilot and demonstration projects.'';
            (5) in subsection (h) (as redesignated by paragraph (3)), 
        by adding at the end the following:
            ``(3) Jobs creation research and report.--Not later than 2 
        years after the date of enactment of this paragraph, the 
        Secretary shall carry out a study, and submit to the President 
        and the appropriate committees of Congress a report, on job 
        creation and the economic impact associated with the biobased 
        product industry, including--
                    ``(A) the number of jobs in the United States 
                originating from the biobased product industry annually 
                over the preceding 10 years, including the job changes 
                in specific sectors;
                    ``(B) the dollar value of the domestic biobased 
                products industry at the time of the report, including 
                intermediates, feedstocks, and finished products, but 
                excluding biofuels;
                    ``(C) a forecast for biobased job creation 
                potential over the next 10 years;
                    ``(D) a forecast for growth in the biobased 
                industry over the next 10 years; and
                    ``(E) jobs data for both biofuels and biobased 
                products, with data generated separately for each 
                category.''; and
            (6) in subsection (i) (as redesignated by paragraph (3))--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(C) $4,000,000 for each of fiscal years 2013 
                through 2017.''; and
                    (B) in paragraph (2), by inserting ``and $4,000,000 
                for each of fiscal years 2013 through 2017'' before the 
                period at the end.

SEC. 5. BIOREFINERY ASSISTANCE.

    Section 9003 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8103) is amended--
            (1) in subsection (b)(2), by inserting ``or a biochemical'' 
        after ``biofuel'' each place it appears in subparagraphs (A) 
        and (B);
            (2) in subsection (c)(1), by inserting ``or biochemicals'' 
        after ``biofuels'';
            (3) in subsection (d)(2)(C)--
                    (A) in clause (i), by inserting ``or biochemical'' 
                after ``biofuel''; and
                    (B) in clause (iii), by inserting ``or 
                biochemicals'' after ``biofuels'';
            (4) in subsection (e)(1)(C)--
                    (A) in clause (i), by inserting ``or biochemical'' 
                after ``biofuel''; and
                    (B) in clauses (iii) and (vii), by inserting ``or 
                biochemicals'' after ``biofuels'' each place it 
                appears; and
            (5) in subsection (h)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(C) $75,000,000 for each of fiscal years 2013 
                through 2017.''; and
                    (B) in paragraph (2), by inserting ``and 
                $75,000,000 for each of fiscal years 2013 through 
                2017'' before the period at the end.

SEC. 6. BIODIESEL FUEL EDUCATION PROGRAM.

    Section 9006 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8106) is amended by striking subsection (d) and inserting the 
following:
    ``(d) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry out this 
        section $1,000,000 for each of fiscal years 2013 through 2017, 
        to remain available until expended.
            ``(2) Discretionary funding.--In addition to any other 
        funds made available to carry out this section, there is 
        authorized to be appropriated to carry out this section 
        $1,000,000 for each of fiscal years 2013 through 2017.''.

SEC. 7. RURAL ENERGY FOR AMERICA PROGRAM.

    Section 9007 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8107) is amended--
            (1) in subsection (b)(2)--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (D) as 
                subparagraph (E); and
                    (C) by inserting after subparagraph (C) the 
                following:
                    ``(D) a nonprofit organization; and'';
            (2) in subsection (c)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Loan guarantee and grant program.--
                    ``(A) In general.--In addition to any similar 
                authority, the Secretary shall provide loan guarantees 
                and grants to agricultural producers and rural small 
                businesses--
                            ``(i) to purchase renewable energy systems, 
                        including--
                                    ``(I) systems that may be used to 
                                produce and sell electricity, such as 
                                for agricultural, and associated 
                                residential, purposes; and
                                    ``(II) unique components of 
                                renewable energy systems; and
                            ``(ii) to make energy efficiency 
                        improvements.
                    ``(B) Tiered application process.--
                            ``(i) In general.--In providing loan 
                        guarantees and grants under this subsection, 
                        the Secretary shall use a 3-tiered application 
                        process that reflects the sizes of proposed 
                        projects in accordance with this subparagraph.
                            ``(ii) Tier 1.--The Secretary shall 
                        establish a separate application process for 
                        projects for which the cost of the activity 
                        funded under this subsection is not more than 
                        $80,000.
                            ``(iii) Tier 2.--The Secretary shall 
                        establish a separate application process for 
                        projects for which the cost of the activity 
                        funded under this subsection is greater than 
                        $80,000 but less than $200,000.
                            ``(iv) Tier 3.--The Secretary shall 
                        establish a separate application process for 
                        projects for which the cost of the activity 
                        funded under this subsection is equal to or 
                        greater than $200,000.
                            ``(v) Application process.--The Secretary 
                        shall establish an application, evaluation, and 
                        oversight process that is most simplified for 
                        tier I projects and more comprehensive for each 
                        subsequent tier.'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by inserting ``so 
                        as to ensure that the program supports a 
                        diversity of technologies across the United 
                        States'' before the semicolon at the end;
                            (ii) in subparagraph (C), by inserting 
                        ``and public health'' before ``benefits''; and
                            (iii) by striking paragraph (F) and 
                        inserting the following:
                    ``(F) the natural resource conservation benefits of 
                the renewable energy system; and;''
                    (C) in paragraph (3)--
                            (i) in subparagraph (A), by inserting ``in 
                        an amount not to exceed $100,000 per grant'' 
                        after ``in the form of grants''; and
                            (ii) by striking subparagraph (C);
                    (D) in paragraph (4)(C), by striking ``75 percent 
                of the cost'' and inserting ``all eligible costs''; and
                    (E) by adding at the end the following:
            ``(5) Requirement.--In carrying out this section, the 
        Secretary shall not require a second meter for on-farm 
        residential portions of rural projects connected to the 
        grid.'';
            (3) in subsection (f)--
                    (A) by striking ``Not later'' and inserting the 
                following:
            ``(1) In general.--Not later''; and
                    (B) by adding at the end the following:
            ``(2) Subsequent report.--Not later than 4 years after the 
        date of enactment of this paragraph, the Secretary shall submit 
        to Congress a report on activities carried out under this 
        section, including the outcomes achieved by projects funded 
        under this section.''; and
            (4) in subsection (g)--
                    (A) in paragraph (1)(D), by striking ``fiscal year 
                2012'' and inserting ``each of fiscal years 2012 
                through 2017''; and
                    (B) in paragraph (3), by inserting ``and 
                $70,000,000 for each of fiscal years 2013 through 
                2017'' before the period at the end.

SEC. 8. BIOMASS RESEARCH AND DEVELOPMENT.

    Section 9008 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8108) is amended--
            (1) by striking ``biofuels and'' each place it appears in 
        subsections (b), (c)(3), (d)(2)(A), (e), and (g)(2) and 
        inserting ``biofuels, biochemicals, and'';
            (2) in subsection (e)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``at prices 
                                competitive with fossil fuels'' and 
                                inserting ``and biobased products''; 
                                and
                                    (II) by inserting ``and'' after the 
                                semicolon at the end;
                            (ii) by striking subparagraph (B);
                            (iii) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                            (iv) in subparagraph (B) (as so 
                        redesignated), by inserting ``biochemicals,'' 
                        after ``bioenergy,'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (B), in the 
                        subparagraph heading, by inserting ``, 
                        biochemicals,'' after ``Biofuels''; and
                            (ii) by striking subparagraph (C);
                    (C) by striking paragraph (4); and
                    (D) by redesignating paragraphs (5) and (6) as 
                paragraphs (4) and (5), respectively; and
            (3) in subsection (h)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (C), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (D), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(E) $30,000,000 for each of fiscal years 2013 
                through 2017.''; and
                    (B) in paragraph (2), by inserting ``and 
                $30,000,000 for each of fiscal years 2013 through 
                2017'' before the period at the end.

SEC. 9. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE.

    Section 9009(d) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8109(d)) is amended by inserting ``and $10,000,000 for 
each of fiscal years 2013 through 2017'' before the period at the end.

SEC. 10. BIOMASS CROP ASSISTANCE PROGRAM.

    Section 9011 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8111) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (4)(B)(ii), by striking ``or has 
                the potential to become invasive or noxious'';
                    (B) in paragraph (5)--
                            (i) in subparagraph (B), in the matter 
                        preceding clause (i), by striking ``The term'' 
                        and inserting ``Except as provided in 
                        subparagraph (C), the term''; and
                            (ii) by adding at the end the following:
                    ``(C) Certain conservation programs.--Land 
                described in clause (iii), (iv), or (v) of subparagraph 
                (B) may be prepared for biomass production before 
                October 1 of the current fiscal year, as determined by 
                the Secretary, if a contract described in that clause 
                that covers the land will expire at the end of the 
                current fiscal year.''; and
                    (C) by adding at the end the following:
            ``(9) Qualifying eligible material.--The term `qualifying 
        eligible material' means an eligible material, including 
        residue from crops described in paragraph (6)(B)(i), that 
        before transport and delivery to the biomass conversion 
        facility--
                    ``(A) is collected or harvested by the eligible 
                material owner--
                            ``(i) directly from--
                                    ``(I) National Forest System land;
                                    ``(II) Bureau of Land Management 
                                land;
                                    ``(III) non-Federal land; or
                                    ``(IV) land belonging to an Indian 
                                or Indian tribe that is held in trust 
                                by the United States or subject to a 
                                restriction against alienation imposed 
                                by the United States; and
                            ``(ii) in accordance with--
                                    ``(I) applicable law and land 
                                management plans;
                                    ``(II) a conservation, forest 
                                stewardship, or equivalent plan, as 
                                determined by the Secretary;
                                    ``(III) Executive Order 13112 (42 
                                U.S.C. 4321 note; relating to invasive 
                                species); and
                                    ``(IV) if harvested from Federal 
                                land, the requirements for old growth 
                                forest maintenance, restoration, and 
                                management direction provided by 
                                section 102 of the Healthy Forests 
                                Restoration Act of 2003 (16 U.S.C. 
                                6512) for Federal land; and
                    ``(B) if woody, is removed as a byproduct of 
                preventive treatments to--
                            ``(i) reduce hazardous fire fuels;
                            ``(ii) reduce or contain disease or insect 
                        infestation;
                            ``(iii) reduce or contain invasive species; 
                        or
                            ``(iv) improve ecosystem health in 
                        accordance with a landscape scale strategy, as 
                        determined by the Secretary.'';
            (2) in subsection (c)--
                    (A) in paragraph (2)(B)--
                            (i) in clause (vii)--
                                    (I) in subclause (II), by striking 
                                ``and'' at the end;
                                    (II) in subclause (III), by adding 
                                ``and'' at the end; and
                                    (III) by adding at the end the 
                                following:
                                    ``(IV) geographic and feedstock 
                                diversity of the proposed BCAP project 
                                area as compared with existing BCAP 
                                project areas;'';
                            (ii) in clause (viii), by striking ``and'' 
                        at the end;
                            (iii) by redesignating clause (ix) as 
                        clause (x); and
                            (iv) by inserting after clause (viii) the 
                        following:
                            ``(ix) the prospects for significant 
                        producer participation; and'';
                    (B) in paragraph (3)(C)(ii), by striking ``15'' and 
                inserting ``7''; and
                    (C) in paragraph (5)--
                            (i) in subparagraph (B)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``the amount'' and 
                                inserting ``Except as provided in 
                                subparagraph (D), the amount'';
                                    (II) by striking ``75 percent'' and 
                                inserting ``50 percent''; and
                                    (III) by inserting ``but not to 
                                exceed $500 per acre'' after ``by the 
                                contract''; and
                            (ii) by adding at the end the following:
                    ``(D) Beginning, socially disadvantaged, and 
                geographically disadvantaged farmers or ranchers.--In 
                the case of a beginning, socially disadvantaged, or 
                geographically disadvantaged farmer or rancher (as 
                determined by the Secretary), the amount of an 
                establishment payment under this subsection shall be up 
                to 75 percent of the costs of establishing an eligible 
                perennial crop covered by the contract but not to 
                exceed $750 per acre, including the costs described in 
                clauses (i) through (iii) of subparagraph (B).'';
            (3) in subsection (d)--
                    (A) in paragraph (1), by inserting ``qualifying'' 
                before ``eligible material'' both places it appears;
                    (B) in paragraph (2)(B)--
                            (i) by striking ``paragraph (3)'' and 
                        inserting ``paragraph (4)''; and
                            (ii) by striking ``$45 per ton for a period 
                        of 2 years'' and inserting ``$25 per ton for a 
                        period of up to 3 years'';
                    (C) by redesignating paragraph (3) as paragraph 
                (4); and
                    (D) by inserting after paragraph (2) the following:
            ``(3) Limitation on assistance with collection, harvest, 
        storage, and transportation.--To ensure effective 
        administration of this subsection, the Secretary may--
                    ``(A) require such documentation from producers or 
                persons seeking payments as the Secretary considers 
                necessary;
                    ``(B) establish limits on the total number and 
                amounts of payments received by any producer or person 
                under this subsection; and
                    ``(C) implement any additional requirements the 
                Secretary determines necessary.''; and
            (4) by striking subsection (f) and inserting the following:
    ``(f) Funding.--
            ``(1) Mandatory funding.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall use to carry out this 
        section $75,000,000 for each of fiscal years 2013 through 2017, 
        of which not more than $15,000,000 for each fiscal year may be 
        used for collection, harvest, storage, and transportation.
            ``(2) Discretionary funding.--In addition to any other 
        funds made available to carry out this section, there is 
        authorized to be appropriated to carry out this section 
        $75,000,000 for each of fiscal years 2013 through 2017''.

SEC. 11. FOREST BIOMASS FOR ENERGY.

    Section 9012(d) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8112(d)) is amended by striking ``2012'' and inserting 
``2017''.

SEC. 12. COMMUNITY WOOD ENERGY PROGRAM.

    Section 9013(e) of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8113(e)) is amended by striking ``2012'' and inserting 
``2017''.

SEC. 13. BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
                                 <all>
```