II 

113TH CONGRESS 

1ST SESSION S. 860 

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

energy programs. 

IN THE SENATE OF THE UNITED STATES 

MAY 6, 2013 

Mr. FRANKEN (for himself, Mr. HARKIN, Mr. BROWN, Mr. DURBIN, Ms. 

CANTWELL, Mr. JOHNSON of South Dakota, Mr. COWAN, Ms. HIRONO, 

Ms. BALDWIN, and Mr. SCHATZ) 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. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Rural Energy Invest5 ment Act of 2013’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 

8 (1) production of energy from domestic sources 

9 offers considerable economic and energy security 


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1 benefits to the United States, including enduring 

2 and desirable jobs; 

3 (2) the agricultural and forestry sectors of the 

4 United States offer significant potential for produc5 tion of renewable energy; 

6 (3) both renewable energy production and adop7 tion of energy efficiency offer considerable environ8 mental benefits; and 

9 (4) investments in energy efficiency projects 

10 and renewable energy systems in rural areas of the 

11 United States provide very significant energy secu12 rity, economic, and environmental benefits to the en13 tire United States in addition to the rural area bene14 fits. 

15 SEC. 3. DEFINITIONS. 

16 Section 9001 of the Farm Security and Rural Invest17 ment Act of 2002 (7 U.S.C. 8101) is amended— 

18 (1) by redesignating paragraphs (5) through 

19 (14) as paragraphs (6) through (15), respectively; 

20 (2) by inserting after paragraph (4) the fol21 lowing: 

22 ‘‘(5) BIOCHEMICAL.—The term ‘biochemical’ 

23 means a chemical derived from renewable biomass.’’; 

24 and 


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1 (3) in paragraph (7)(A), by inserting ‘‘, bio2 chemicals,’’ after ‘‘biofuels’’. 

3 SEC. 4. BIOBASED MARKETS PROGRAM. 

4 Section 9002 of the Farm Security and Rural Invest5 ment Act of 2002 (7 U.S.C. 8102) is amended— 

6 (1) in subsection (a)— 

7 (A) in paragraph (3), by adding at the end 

8 the following: 

9 ‘‘(F) BIOBASED PRODUCT DESIGNA10 TIONS.—Not later than 1 year after the date of 

11 enactment of this subparagraph, the Secretary 

12 shall— 

13 ‘‘(i) begin to designate intermediate 

14 ingredients, feedstocks, and complex prod15 ucts in the guidelines issued under this 

16 paragraph; and 

17 ‘‘(ii) develop a recommendation for 

18 the designation of complex and finished 

19 biobased products in those guidelines. 

20 ‘‘(G) CHANGES IN PROCUREMENT MECHA21 NISMS.— 

22 ‘‘(i) ELECTRONIC PRODUCT PROCURE23 MENT CATALOGS.—The Secretary shall 

24 work with relevant officials in agencies 

25 that have electronic product procurement 


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1 catalogs to identify and implement solu2 tions to increase the visibility of biobased 

3 and other sustainable products. 

4 ‘‘(ii) AGENCY-SPECIFIC PRODUCT

5 SPECIFICATIONS.— 

6 ‘‘(I) IN GENERAL.—Not later 

7 than 1 year after the date of enact8 ment of this subparagraph and every 

9 4 years thereafter, the Secretary, in 

10 coordination with other appropriate 

11 officials, shall work with the senior 

12 sustainability officer of each agency 

13 that has established agency-specific 

14 product specifications to review and 

15 revise the product specifications to en16 sure that, to the maximum extent 

17 practicable, the product specifica18 tions— 

19 ‘‘(aa) require the use of sus20 tainable products, including 

21 biobased products designated in 

22 accordance with this section; and 

23 ‘‘(bb) do not contain any 

24 language prohibiting the use of 

25 biobased products. 


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1 ‘‘(II) REPORT.—Results of the 

2 reviews conducted under subclause (I) 

3 shall be reported annually to the Of4 fice of Management and Budget, the 

5 Office of Science and Technology Pol6 icy, and the appropriate committees of 

7 Congress. 

8 ‘‘(H) REPORTING.— 

9 ‘‘(i) IN GENERAL.—Not later than 1 

10 year after the date of enactment of this 

11 subparagraph, the Administrator of Gen12 eral Services shall implement a system for 

13 service and construction contractors to re14 port annual purchases of biobased products 

15 under Federal Government contracts. 

16 ‘‘(ii) RELATIONSHIP TO OTHER RE17 PORTING SYSTEMS.—The system under 

18 clause (i) may be incorporated as an ele19 ment of 1 or more other contractor report20 ing systems.’’; and 

21 (B) by adding at the end the following: 

22 ‘‘(5) COMPLIANCE.—The Secretary may take 

23 such action as the Secretary determines to be nec24 essary— 


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1 ‘‘(A) to determine the compliance rate 

2 among Federal agencies in buying designated 

3 biobased products; and 

4 ‘‘(B) to determine whether vendor and con5 tractor claims about biobased products meeting 

6 item designation definitions and minimum re7 quired biobased content are accurate.’’; 

8 (2) in subsection (b)(3)— 

9 (A) by striking ‘‘The Secretary’’ and in10 serting the following: 

11 ‘‘(A) IN GENERAL.—The Secretary’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(B) AUDITING AND COMPLIANCE.—The 

14 Secretary may carry out such auditing and 

15 compliance activities as the Secretary deter16 mines to be necessary to ensure compliance 

17 with subparagraph (A), including the imposition 

18 of a civil penalty of not more than $10,000 on 

19 a person who misuses the label and, after re20 ceiving a notice of violation, fails to take action 

21 to correct the misuse described in the notice.’’; 

22 (3) by redesignating subsections (d) through (h) 

23 as subsections (f) through (j), respectively; 

24 (4) by inserting after subsection (c) the fol25 lowing: 


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1 ‘‘(d) OUTREACH, EDUCATION, AND PROMOTION.— 

2 ‘‘(1) IN GENERAL.—The Secretary shall carry 

3 out a program of outreach, education, and pro4 motion activities intended to increase knowledge, 

5 awareness, and benefits of biobased products. 

6 ‘‘(2) AUTHORIZED ACTIVITIES.—In carrying 

7 out this subsection, the Secretary, at a minimum, 

8 shall— 

9 ‘‘(A) not later than 1 year after the date 

10 of enactment of this paragraph, update all ex11 isting BioPreferred and related sustainable ac12 quisition training materials of the Department; 

13 ‘‘(B) work cooperatively with the senior 

14 sustainability officers and chief acquisition offi15 cers of Federal agencies to immediately imple16 ment such BioPreferred program agency edu17 cation and outreach programs as are necessary 

18 to meet the requirements of this section; 

19 ‘‘(C) work actively with groups that sup20 port employment for the blind or disabled, such 

21 as the Committee for Purchase From People 

22 Who Are Blind or Severely Disabled, to pro23 mote education and outreach regarding BioPre24 ferred AbilityOne products to— 


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1 ‘‘(i) program, technical, and con2 tracting personnel; and 

3 ‘‘(ii) Federal agency purchase card 

4 holders; 

5 ‘‘(D) conduct consumer education and out6 reach (including consumer and awareness sur7 veys); 

8 ‘‘(E) conduct outreach to and support for 

9 State and local governments interested in im10 plementing biobased purchasing programs; 

11 ‘‘(F) partner with industry and nonprofit 

12 groups to produce educational and outreach 

13 materials and conduct educational and outreach 

14 events; 

15 ‘‘(G) sponsor special conferences and 

16 events to bring together buyers and sellers of 

17 biobased products; and 

18 ‘‘(H) support pilot and demonstration 

19 projects. 

20 ‘‘(e) FOREST PRODUCTS LABORATORY COORDINA21 TION.—In determining whether products are eligible for 

22 the ‘USDA Certified Biobased Product’ label, the Sec23 retary (acting through the Forest Products Laboratory) 

24 shall— 


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1 ‘‘(1) review and approve forest-related products 

2 for which an application is submitted for the pro3 gram; 

4 ‘‘(2) expedite the approval of innovative prod5 ucts resulting from technology developed by the For6 est Products Laboratory or partners of the Labora7 tory; and 

8 ‘‘(3) provide appropriate technical assistance to 

9 applicants, as determined by the Secretary.’’; 

10 (5) in subsection (i) (as redesignated by para11 graph (3)), by adding at the end the following: 

12 ‘‘(3) JOBS CREATION RESEARCH AND RE13 PORT.—Not later than 2 years after the date of en14 actment of this paragraph, the Secretary shall carry 

15 out a study, and submit to the President and the ap16 propriate committees of Congress a report, on job 

17 creation and the economic impact associated with 

18 the biobased product industry, including— 

19 ‘‘(A) the number of jobs in the United 

20 States originating from the biobased product in21 dustry annually over the preceding 10 years, in22 cluding the job changes in specific sectors; 

23 ‘‘(B) the dollar value of the domestic 

24 biobased products industry at the time of the 


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1 report, including intermediates, feedstocks, and 

2 finished products, but excluding biofuels; 

3 ‘‘(C) a forecast for biobased job creation 

4 potential over the next 10 years; 

5 ‘‘(D) a forecast for growth in the biobased 

6 industry over the next 10 years; and 

7 ‘‘(E) jobs data for both biofuels and 

8 biobased products, with data generated sepa9 rately for each category.’’; and 

10 (6) in subsection (j) (as redesignated by para11 graph (3))— 

12 (A) in paragraph (1)— 

13 (i) in subparagraph (A), by striking 

14 ‘‘and’’ at the end; 

15 (ii) in subparagraph (B), by striking 

16 the period at the end and inserting ‘‘; 

17 and’’; and 

18 (iii) by adding at the end the fol19 lowing: 

20 ‘‘(C) $4,000,000 for each of fiscal years 

21 2014 through 2018.’’; and 

22 (B) in paragraph (2), by inserting ‘‘and 

23 $4,000,000 for each of fiscal years 2014 

24 through 2018’’ before the period at the end. 


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1 SEC. 5. BIOREFINERY ASSISTANCE. 

2 Section 9003 of the Farm Security and Rural Invest3 ment Act of 2002 (7 U.S.C. 8103) is amended— 

4 (1) in subsection (a), in the matter preceding 

5 paragraph (1), by inserting ‘‘, biochemicals, or 

6 biobased products’’ after ‘‘biofuels’’; 

7 (2) in subsection (b)(2), by inserting ‘‘, a bio8 chemical, or a biobased product’’ after ‘‘biofuel’’ 

9 each place it appears in subparagraphs (A) and (B); 

10 (3) in subsection (c)(1), by inserting ‘‘, bio11 chemicals, or biobased products’’ after ‘‘biofuels’’; 

12 (4) in subsection (d)(2)(C)— 

13 (A) in clause (i), by inserting ‘‘, bio14 chemical, or biobased product’’ after ‘‘biofuel’’; 

15 and 

16 (B) in clause (iii), by inserting ‘‘, bio17 chemicals, or biobased products’’ after 

18 ‘‘biofuels’’; 

19 (5) in subsection (e)(1)(C)— 

20 (A) in clause (i), by inserting ‘‘, bio21 chemical, or biobased product’’ after ‘‘biofuel’’; 

22 and 

23 (B) in clauses (iii) and (vii), by inserting 

24 ‘‘, biochemicals, or biobased products’’ after 

25 ‘‘biofuels’’ each place it appears; and 

26 (6) in subsection (h)— 


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1 (A) in paragraph (1)— 

2 (i) in subparagraph (A), by striking 

3 ‘‘and’’ at the end; 

4 (ii) in subparagraph (B), by striking 

5 the period at the end and inserting ‘‘; 

6 and’’; and 

7 (iii) by adding at the end the fol8 lowing: 

9 ‘‘(C) $75,000,000 for each of fiscal years 

10 2014 through 2018.’’; 

11 (B) in paragraph (2), by inserting ‘‘and 

12 $75,000,000 for each of fiscal years 2014 

13 through 2018’’ before the period at the end; 

14 and 

15 (C) by adding at the end the following: 

16 ‘‘(3) LIMITATION.—Of the funds made available 

17 under this subsection, at least 75 percent for each 

18 fiscal year shall be made available for the manufac19 ture of advanced biofuels.’’. 

20 SEC. 6. BIODIESEL FUEL EDUCATION PROGRAM. 

21 Section 9006 of the Farm Security and Rural Invest22 ment Act of 2002 (7 U.S.C. 8106) is amended by striking 

23 subsection (d) and inserting the following: 

24 ‘‘(d) FUNDING.— 


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1 ‘‘(1) MANDATORY FUNDING.—Of the funds of 

2 the Commodity Credit Corporation, the Secretary 

3 shall use to carry out this section $1,000,000 for 

4 each of fiscal years 2014 through 2018, to remain 

5 available until expended. 

6 ‘‘(2) DISCRETIONARY FUNDING.—In addition to 

7 any other funds made available to carry out this sec8 tion, there is authorized to be appropriated to carry 

9 out this section $1,000,000 for each of fiscal years 

10 2014 through 2018.’’. 

11 SEC. 7. RURAL ENERGY FOR AMERICA PROGRAM. 

12 Section 9007 of the Farm Security and Rural Invest13 ment Act of 2002 (7 U.S.C. 8107) is amended— 

14 (1) in subsection (b)(2)— 

15 (A) in subparagraph (C), by striking 

16 ‘‘and’’ at the end; 

17 (B) by redesignating subparagraph (D) as 

18 subparagraph (E); and 

19 (C) by inserting after subparagraph (C) 

20 the following: 

21 ‘‘(D) a nonprofit organization; and’’; 

22 (2) in subsection (c)— 

23 (A) by striking paragraph (1) and insert24 ing the following: 


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1 ‘‘(1) LOAN GUARANTEE AND GRANT PRO2 GRAM.— 

3 ‘‘(A) IN GENERAL.—In addition to any 

4 similar authority, the Secretary shall provide 

5 loan guarantees and grants to agricultural pro6 ducers and rural small businesses— 

7 ‘‘(i) to purchase renewable energy sys8 tems, including— 

9 ‘‘(I) systems that may be used to 

10 produce and sell electricity, such as 

11 for agricultural, and associated resi12 dential, purposes; and 

13 ‘‘(II) unique components of re14 newable energy systems; and 

15 ‘‘(ii) to make energy efficiency im16 provements. 

17 ‘‘(B) APPLICATION PROCESS.— 

18 ‘‘(i) IN GENERAL.—In carrying out 

19 this subsection, the Secretary shall estab20 lish a multi-tiered application process that 

21 varies based on the cost of the proposed 

22 project. 

23 ‘‘(ii) SIMPLIFICATION.—The multi24 tiered process shall ensure that applicaVerDate Mar 15 2010 04:27 May 07, 2013 Jkt 029200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S860.IS S860

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1 tions are most simplified for the projects 

2 with the lowest project costs.’’; 

3 (B) in paragraph (2)— 

4 (i) in the matter preceding subpara5 graph (A)— 

6 (I) by striking ‘‘amount’’ and in7 serting ‘‘priority’’; and 

8 (II) by striking ‘‘section’’ and in9 serting ‘‘subsection’’; 

10 (ii) in subparagraph (A), by inserting 

11 ‘‘and the type of energy efficiency improve12 ment to be made so as to ensure that the 

13 program supports a diversity of tech14 nologies across the United States’’ before 

15 the semicolon at the end; 

16 (iii) in subparagraph (C)— 

17 (I) by inserting ‘‘and public 

18 health’’ before ‘‘benefits’’; and 

19 (II) by inserting ‘‘and energy ef20 ficiency improvements’’ before the 

21 semicolon at the end; and 

22 (iv) by striking paragraph (F) and in23 serting the following: 

24 ‘‘(F) the natural resource conservation 

25 benefits of the renewable energy system;’’; 


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1 (C) in paragraph (3)— 

2 (i) in subparagraph (B), by striking 

3 ‘‘The Secretary’’ and inserting the fol4 lowing: 

5 ‘‘(i) IN GENERAL.—The Secretary’’; 

6 (ii) by adding at the end the fol7 lowing: 

8 ‘‘(ii) MAXIMUM GRANT AMOUNT.— 

9 ‘‘(I) IN GENERAL.—Except as 

10 provided in subclause (II), the amount 

11 of a grant under this paragraph shall 

12 not exceed the lesser of $100,000 or 

13 50 percent of the cost of the activity 

14 carried out using funds from the 

15 grant. 

16 ‘‘(II) SOCIALLY DISADVANTAGED

17 FARMER OR RANCHER.—In the case 

18 of an agricultural producer who is a 

19 socially disadvantaged farmer or 

20 rancher (as defined in section 2501(e) 

21 of the Food, Agriculture, Conserva22 tion, and Trade Act of 1990 (7 

23 U.S.C. 2279(e))), the amount of a 

24 grant under this paragraph shall not 

25 exceed the lesser of $100,000 or 75 


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1 percent of the cost of the activity car2 ried out using funds from the grant.’’; 

3 and 

4 (iii) by striking subparagraph (C); 

5 (D) in paragraph (4)— 

6 (i) by striking subparagraph (A) and 

7 inserting the following: 

8 ‘‘(A) GRANTS.—Subject to subparagraph 

9 (B), the amount of a grant under this sub10 section shall not exceed the lesser of— 

11 ‘‘(i) 25 percent of the cost of the ac12 tivity carried out using funds from the 

13 grant; or 

14 ‘‘(ii) as applicable— 

15 ‘‘(I) if the project is for energy 

16 efficiency improvements, $250,000; or 

17 ‘‘(II) if the project is for a re18 newable energy system, $500,000.’’; 

19 and 

20 (ii) in subparagraph (C), by striking 

21 ‘‘75 percent of the cost’’ and inserting ‘‘all 

22 eligible costs’’; and 

23 (E) by adding at the end the following: 

24 ‘‘(5) REQUIREMENT.—In carrying out this sec25 tion, the Secretary shall not require a second meter 


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1 for on-farm residential portions of rural projects 

2 connected to the grid.’’; 

3 (3) in subsection (e)(2), strike ‘‘June 30 of 

4 each fiscal year’’ and insert ‘‘a date to be deter5 mined each fiscal year by the Secretary’’; 

6 (4) in subsection (f)— 

7 (A) by striking ‘‘Not later’’ and inserting 

8 the following: 

9 ‘‘(1) IN GENERAL.—Not later’’; and 

10 (B) by adding at the end the following: 

11 ‘‘(2) SUBSEQUENT REPORT.—Not later than 4 

12 years after the date of enactment of this paragraph, 

13 the Secretary shall submit to Congress a report on 

14 activities carried out under this section, including 

15 the outcomes achieved by projects funded under this 

16 section.’’; and 

17 (5) in subsection (g)— 

18 (A) in paragraph (1)— 

19 (i) in subparagraph (C), by striking 

20 ‘‘and’’ at the end; 

21 (ii) in subparagraph (D), by striking 

22 the period at the end and inserting ‘‘; 

23 and’’; and 

24 (iii) by adding at the end the fol25 lowing: 


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1 ‘‘(E) $70,000,000 for each of fiscal years 

2 2014 through 2018;’’; 

3 (B) in paragraph (2)(B), strike ‘‘April 1 of 

4 each fiscal year’’ and insert ‘‘the date deter5 mined each fiscal year by the Secretary’’; and 

6 (C) in paragraph (3), by inserting ‘‘and 

7 $70,000,000 for each of fiscal years 2014 

8 through 2018’’ before the period at the end. 

9 SEC. 8. BIOMASS RESEARCH AND DEVELOPMENT. 

10 Section 9008 of the Farm Security and Rural Invest11 ment Act of 2002 (7 U.S.C. 8108) is amended— 

12 (1) by striking ‘‘biofuels and’’ each place it ap13 pears in subsections (b), (c)(3), (d)(2)(A), (e), and 

14 (g)(2) and inserting ‘‘biofuels, biochemicals, and’’; 

15 (2) in subsection (e)— 

16 (A) in paragraph (2)— 

17 (i) in subparagraph (A)— 

18 (I) by striking ‘‘at prices com19 petitive with fossil fuels’’ and insert20 ing ‘‘, biochemicals, and biobased 

21 products’’; and 

22 (II) by inserting ‘‘and’’ after the 

23 semicolon at the end; 

24 (ii) by striking subparagraph (B); 


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1 (iii) by redesignating subparagraph 

2 (C) as subparagraph (B); and 

3 (iv) in subparagraph (B) (as so redes4 ignated), by inserting ‘‘biochemicals,’’ after 

5 ‘‘bioenergy,’’; 

6 (B) in paragraph (3)— 

7 (i) in subparagraph (B)— 

8 (I) in the subparagraph heading, 

9 by inserting ‘‘, BIOCHEMICALS,’’ after 

10 ‘‘BIOFUELS’’; and 

11 (II) in clause (i), by striking 

12 ‘‘cellulosic’’; and 

13 (ii) in subparagraph (C)— 

14 (I) in the heading, by striking 

15 ‘‘BIOFUELS DEVELOPMENT’’; and 

16 (II) in clause (ii), by inserting ‘‘, 

17 biochemical, or biobased product’’ 

18 after ‘‘biofuel’’; 

19 (C) by striking paragraph (4); 

20 (D) by redesignating paragraphs (5) and 

21 (6) as paragraphs (4) and (5), respectively; and 

22 (E) in paragraph (4) (as redesignated by 

23 subparagraph (D))— 


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1 (i) by redesignating subparagraphs 

2 (F) and (G) as subparagraphs (G) and 

3 (H), respectively; and 

4 (ii) by inserting after subparagraph 

5 (E) the following: 

6 ‘‘(G) a tribal organization (as defined in 

7 section 4 of the Indian Self-Determination and 

8 Education Assistance Act (25 U.S.C. 450b));’’; 

9 and 

10 (3) in subsection (h)— 

11 (A) in paragraph (1)— 

12 (i) in subparagraph (C), by striking 

13 ‘‘and’’ at the end; 

14 (ii) in subparagraph (D), by striking 

15 the period at the end and inserting ‘‘; 

16 and’’; and 

17 (iii) by adding at the end the fol18 lowing: 

19 ‘‘(E) $30,000,000 for each of fiscal years 

20 2014 through 2018.’’; and 

21 (B) in paragraph (2), by inserting ‘‘and 

22 $30,000,000 for each of fiscal years 2014 

23 through 2018’’ before the period at the end. 


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1 SEC. 9. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 

2 Section 9009(d) of the Farm Security and Rural In3 vestment Act of 2002 (7 U.S.C. 8109(d)) is amended by 

4 inserting ‘‘and $10,000,000 for each of fiscal years 2014 

5 through 2018’’ before the period at the end. 

6 SEC. 10. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIO7 ENERGY PRODUCERS. 

8 Section 9010(b) of the Farm Security and Rural In9 vestment Act of 2002 (7 U.S.C. 8110(b)) is amended— 

10 (1) in paragraph (1)(A), by striking ‘‘2013’’ 

11 and inserting ‘‘2018’’; and 

12 (2) in paragraph (2)(A), by striking ‘‘2013’’ 

13 and inserting ‘‘2018’’. 

14 SEC. 11. BIOMASS CROP ASSISTANCE PROGRAM. 

15 Section 9011 of the Farm Security and Rural Invest16 ment Act of 2002 (7 U.S.C. 8111) is amended— 

17 (1) in subsection (a)— 

18 (A) in paragraph (4)(B)(ii), by striking 

19 ‘‘or has the potential to become invasive or nox20 ious’’; 

21 (B) in paragraph (5)— 

22 (i) in subparagraph (B), in the matter 

23 preceding clause (i), by striking ‘‘The 

24 term’’ and inserting ‘‘Except as provided 

25 in subparagraph (C), the term’’; and 


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1 (ii) by adding at the end the fol2 lowing: 

3 ‘‘(C) CERTAIN CONSERVATION PRO4 GRAMS.—Land described in clause (iii), (iv), or 

5 (v) of subparagraph (B) may be prepared for 

6 biomass production before October 1 of the cur7 rent fiscal year, as determined by the Secretary, 

8 if a contract described in that clause that cov9 ers the land will expire at the end of the cur10 rent fiscal year.’’; and 

11 (C) by adding at the end the following: 

12 ‘‘(9) QUALIFYING ELIGIBLE MATERIAL.—The 

13 term ‘qualifying eligible material’ means an eligible 

14 material, including residue from crops described in 

15 paragraph (6)(B)(i), that before transport and deliv16 ery to the biomass conversion facility— 

17 ‘‘(A) is collected or harvested by the eligi18 ble material owner— 

19 ‘‘(i) directly from— 

20 ‘‘(I) National Forest System 

21 land; 

22 ‘‘(II) Bureau of Land Manage23 ment land; 

24 ‘‘(III) non-Federal land; or 


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1 ‘‘(IV) land belonging to an In2 dian or Indian tribe that is held in 

3 trust by the United States or subject 

4 to a restriction against alienation im5 posed by the United States; and 

6 ‘‘(ii) in accordance with— 

7 ‘‘(I) applicable law and land 

8 management plans; 

9 ‘‘(II) a conservation, forest stew10 ardship, or equivalent plan, as deter11 mined by the Secretary; 

12 ‘‘(III) Executive Order 13112 

13 (42 U.S.C. 4321 note; relating to 

14 invasive species); and 

15 ‘‘(IV) if harvested from Federal 

16 land, the requirements for old growth 

17 forest maintenance, restoration, and 

18 management direction provided by 

19 section 102 of the Healthy Forests 

20 Restoration Act of 2003 (16 U.S.C. 

21 6512) for Federal land; and 

22 ‘‘(B) if woody, is removed as a byproduct 

23 of preventive treatments to— 

24 ‘‘(i) reduce hazardous fire fuels; 


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1 ‘‘(ii) reduce or contain disease or in2 sect infestation; 

3 ‘‘(iii) reduce or contain invasive spe4 cies; or 

5 ‘‘(iv) improve ecosystem health in ac6 cordance with a landscape scale strategy, 

7 as determined by the Secretary.’’; 

8 (2) in subsection (c)— 

9 (A) in paragraph (2)(B)— 

10 (i) in clause (vii)— 

11 (I) in subclause (II), by striking 

12 ‘‘and’’ at the end; 

13 (II) in subclause (III), by adding 

14 ‘‘and’’ at the end; and 

15 (III) by adding at the end the 

16 following: 

17 ‘‘(IV) geographic and feedstock 

18 diversity of the proposed BCAP 

19 project area as compared with existing 

20 BCAP project areas;’’; 

21 (ii) in clause (viii), by striking ‘‘and’’ 

22 at the end; 

23 (iii) by redesignating clause (ix) as 

24 clause (x); and 


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1 (iv) by inserting after clause (viii) the 

2 following: 

3 ‘‘(ix) the prospects for significant pro4 ducer participation; and’’; 

5 (B) in paragraph (3)(C)(ii), by striking 

6 ‘‘15’’ and inserting ‘‘7’’; and 

7 (C) in paragraph (5)— 

8 (i) in subparagraph (B)— 

9 (I) in the matter preceding clause 

10 (i), by striking ‘‘the amount’’ and in11 serting ‘‘Except as provided in sub12 paragraph (D), the amount’’; and 

13 (II) by striking ‘‘75 percent’’ and 

14 inserting ‘‘50 percent’’; and 

15 (ii) by adding at the end the fol16 lowing: 

17 ‘‘(D) BEGINNING, SOCIALLY DISADVAN18 TAGED, AND GEOGRAPHICALLY DISADVANTAGED

19 FARMERS OR RANCHERS.—In the case of a be20 ginning, socially disadvantaged, or geographi21 cally disadvantaged farmer or rancher (as de22 termined by the Secretary), the amount of an 

23 establishment payment under this subsection 

24 shall be up to 75 percent of the costs of estab25 lishing an eligible perennial crop covered by the 


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1 contract, including the costs described in 

2 clauses (i) through (iii) of subparagraph (B).’’; 

3 (3) in subsection (d)— 

4 (A) in paragraph (1), by inserting ‘‘quali5 fying’’ before ‘‘eligible material’’ both places it 

6 appears; 

7 (B) in paragraph (2)(B)— 

8 (i) by striking ‘‘paragraph (3)’’ and 

9 inserting ‘‘paragraph (4)’’; and 

10 (ii) by striking ‘‘$45 per ton for a pe11 riod of 2 years’’ and inserting ‘‘$25 per 

12 ton for a period of up to 3 years’’; 

13 (C) by redesignating paragraph (3) as 

14 paragraph (4); and 

15 (D) by inserting after paragraph (2) the 

16 following: 

17 ‘‘(3) LIMITATION ON ASSISTANCE WITH COL18 LECTION, HARVEST, STORAGE, AND TRANSPOR19 TATION.—To ensure effective administration of this 

20 subsection, the Secretary may— 

21 ‘‘(A) require such documentation from pro22 ducers or persons seeking payments as the Sec23 retary considers necessary; 


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1 ‘‘(B) establish limits on the total number 

2 and amounts of payments received by any pro3 ducer or person under this subsection; and 

4 ‘‘(C) implement any additional require5 ments the Secretary determines necessary.’’; 

6 and 

7 (4) by striking subsection (f) and inserting the 

8 following: 

9 ‘‘(f) FUNDING.— 

10 ‘‘(1) MANDATORY FUNDING.—Of the funds of 

11 the Commodity Credit Corporation, the Secretary 

12 shall use to carry out this section $75,000,000 for 

13 each of fiscal years 2014 through 2018, of which not 

14 more than $15,000,000 for each fiscal year may be 

15 used for collection, harvest, storage, and transpor16 tation. 

17 ‘‘(2) DISCRETIONARY FUNDING.—In addition to 

18 any other funds made available to carry out this sec19 tion, there is authorized to be appropriated to carry 

20 out this section $75,000,000 for each of fiscal years 

21 2014 through 2018’’. 

22 SEC. 12. FOREST BIOMASS FOR ENERGY. 

23 Section 9012(d) of the Farm Security and Rural In24 vestment Act of 2002 (7 U.S.C. 8112(d)) is amended by 

25 striking ‘‘2012’’ and inserting ‘‘2018’’. 


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1 SEC. 13. COMMUNITY WOOD ENERGY PROGRAM. 

2 Section 9013 of the Farm Security and Rural Invest3 ment Act of 2002 (7 U.S.C. 8113) is amended— 

4 (1) by redesignating subsection (e) as sub5 section (f); 

6 (2) by inserting after subsection (d) the fol7 lowing: 

8 ‘‘(e) MANDATORY FUNDING.—Of the funds of the 

9 Commodity Credit Corporation, the Secretary shall use to 

10 carry out this section $10,000,000 for each of fiscal years 

11 2014 through 2018.’’; and 

12 (3) in subsection (f) (as redesignated by para13 graph (1)), by striking ‘‘2013’’ and inserting 

14 ‘‘2018’’. 

15 SEC. 14. BUDGETARY EFFECTS. 

16 The budgetary effects of this Act, for the purpose of 

17 complying with the Statutory Pay-As-You-Go Act of 2010, 

18 shall be determined by reference to the latest statement 

19 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

20 Act, submitted for printing in the Congressional Record 

21 by the Chairman of the Senate Budget Committee, pro22 vided that such statement has been submitted prior to the 

23 vote on passage. 

Æ 


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