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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 935 Reported in Senate (RS)]

                                                       Calendar No. 310

106th CONGRESS

  1st Session

                                 S. 935

                          [Report No. 106-179]

_______________________________________________________________________

                                 A BILL

 To amend the National Agricultural Research, Extension, and Teaching 
 Policy Act of 1977 to authorize research to promote the conversion of 
   biomass into biobased industrial products, and for other purposes.

_______________________________________________________________________

                            October 8, 1999

                       Reported with an amendment

                                                       Calendar No. 310
106th CONGRESS
  1st Session
                                 S. 935

                          [Report No. 106-179]

 To amend the National Agricultural Research, Extension, and Teaching 
 Policy Act of 1977 to authorize research to promote the conversion of 
   biomass into biobased industrial products, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 30, 1999

   Mr. Lugar (for himself, Mr. Chafee, Mr. Harkin, Mr. Jeffords, Mr. 
   Murkowski, Mr. Allard, Mr. Daschle, Mr. Domenici, Mr. Kerrey, Mr. 
    Leahy, Mr. Lieberman, Mr. Craig, Mr. Grassley, Mr. Johnson, Mr. 
    Fitzgerald, Mr. Durbin, Mr. Kerry, Mr. Bayh, Mr. Burns, and Mr. 
   Bingaman) introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

                            October 8, 1999

                Reported by Mr. Lugar, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
 To amend the National Agricultural Research, Extension, and Teaching 
 Policy Act of 1977 to authorize research to promote the conversion of 
   biomass into biobased industrial products, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``National Sustainable Fuels 
and Chemicals Act of 1999''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds that--</DELETED>
        <DELETED>    (1) conversion of biomass into biobased industrial 
        products offers outstanding potential for benefit to the 
        national interest through improved strategic security and 
        balance of payments, healthier rural economies, improved 
        environmental quality, near-zero net greenhouse gas emissions, 
        technology export, and sustainable resource supply;</DELETED>
        <DELETED>    (2)(A) biomass is widely available at prices that 
        are competitive with low cost petroleum; and</DELETED>
        <DELETED>    (B) the key technical challenge to be overcome in 
        order for biobased industrial products to be cost competitive 
        is reducing the cost of technology for converting biomass into 
        desired biobased industrial products;</DELETED>
        <DELETED>    (3) biobased fuels, such as ethanol, have the 
        clear potential to be sustainable, low cost, and high 
        performance fuels that are compatible with both current and 
        future transportation systems and provide near zero net 
        greenhouse gas emissions;</DELETED>
        <DELETED>    (4) biobased chemicals--</DELETED>
                <DELETED>    (A) can provide functional replacements 
                for essentially all organic chemicals that are 
                currently derived from petroleum; and</DELETED>
                <DELETED>    (B) have the clear potential for 
                environmentally benign product life cycles;</DELETED>
        <DELETED>    (5) many biomass feedstocks suitable for 
        industrial processing show the clear potential for sustainable 
        production, in some cases resulting in improved soil fertility 
        and carbon sequestration;</DELETED>
        <DELETED>    (6)(A) grain processing mills are biorefineries 
        that produce a diversity of useful food, chemical, feed, and 
        fuel products; and</DELETED>
        <DELETED>    (B) technologies that result in further 
        diversification of the range of value-added biobased industrial 
        products can meet a key need for the grain processing 
        industry;</DELETED>
        <DELETED>    (7)(A) cellulosic feedstocks are attractive 
        because of their low cost and widespread availability; 
        and</DELETED>
        <DELETED>    (B) research resulting in cost-effective 
        technology to overcome the recalcitrance of cellulosic biomass 
        would allow biorefineries to produce fuels and bulk chemicals 
        on a very large scale, with a commensurately large realization 
        of the benefit described in paragraph (1);</DELETED>
        <DELETED>    (8) research into the fundamentals to understand 
        important mechanisms of biomass conversion processes can be 
        expected to accelerate the application and advancement of 
        biomass processing technology by--</DELETED>
                <DELETED>    (A) increasing the confidence and speed 
                with which new technologies can be scaled up; 
                and</DELETED>
                <DELETED>    (B) giving rise to processing innovations 
                based on new knowledge;</DELETED>
        <DELETED>    (9) the utility of biotechnology allows the design 
        of feedstocks that will meet future needs more 
        effectively;</DELETED>
        <DELETED>    (10)(A) because of the relatively short-term time 
        horizon characteristic of private sector investments, and 
        because many benefits of biomass processing are in the national 
        interest, it is appropriate for the Federal Government to 
        provide precommercial investment in fundamental and research-
        driven innovation in the biomass processing area; and</DELETED>
        <DELETED>    (B) such an investment would provide a valuable 
        complement to ongoing and past governmental support in the 
        biomass processing area; and</DELETED>
        <DELETED>    (11) several prominent studies, including studies 
        by the President's Council of Advisors on Science and 
        Technology and the National Research Council, support the 
        potential for large research-driven advances in technologies 
        for production of biobased industrial products as well as 
        associated benefits.</DELETED>

<DELETED>SEC. 3. CONVERSION OF BIOMASS INTO BIOBASED INDUSTRIAL 
              PRODUCTS.</DELETED>

<DELETED>    Title XIV of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is 
amended by adding at the end the following:</DELETED>

 <DELETED>``Subtitle N--Conversion of Biomass Into Biobased Industrial 
                           Products</DELETED>

<DELETED>``SEC. 1490. DEFINITIONS.</DELETED>

<DELETED>    ``In this subtitle:</DELETED>
        <DELETED>    ``(1) Advisory committee.--The term `Advisory 
        Committee' means the Sustainable Fuels and Chemicals Technical 
        Advisory Committee established by section 1490C.</DELETED>
        <DELETED>    ``(2) Biobased industrial product.--The term 
        `biobased industrial product' means any power, fuel, feed, 
        chemical product, or other consumer good derived from 
        biomass.</DELETED>
        <DELETED>    ``(3) Biomass.--The term `biomass' means any 
        organic matter that is available on a renewable or recurring 
        basis, including plants, trees, grasses, agricultural crops and 
        residues, wood and wood residues, municipal waste, animal waste 
        and residues, and aquatic plants.</DELETED>
        <DELETED>    ``(4) Board.--The term `Board' means the 
        Sustainable Fuels and Chemicals Board established by section 
        1490B.</DELETED>
        <DELETED>    ``(5) Initiative.--The term `Initiative' means the 
        Sustainable Fuels and Chemicals Research Initiative established 
        under section 1490D.</DELETED>
        <DELETED>    ``(6) Point of contact.--The term `point of 
        contact' means a point of contact designated under section 
        1490A(d).</DELETED>

<DELETED>``SEC. 1490A. COOPERATION AND COORDINATION IN SUSTAINABLE 
              FUELS AND CHEMICALS RESEARCH.</DELETED>

<DELETED>    ``(a) In General.--The Secretary of Agriculture and the 
Secretary of Energy shall cooperate with respect to, and coordinate, 
policies and procedures that promote research and development leading 
to the production of biobased industrial products.</DELETED>
<DELETED>    ``(b) Purpose.--The purpose of the cooperation and 
coordination shall be to promote research and development related to--
</DELETED>
        <DELETED>    ``(1) understanding the key mechanisms underlying 
        the recalcitrance of biomass for conversion into biobased 
        industrial products, including the use of agricultural crops 
        for conversion into biobased industrial products; and</DELETED>
        <DELETED>    ``(2) advanced technologies that will result in 
        large-scale commercial production of low cost biobased 
        industrial products.</DELETED>
<DELETED>    ``(c) Areas.--In carrying out this subtitle, the Secretary 
of Agriculture and the Secretary of Energy shall promote research and 
development to--</DELETED>
        <DELETED>    ``(1) advance the availability and widespread use 
        of energy efficient, economically competitive, and 
        environmentally sound biobased industrial products in a manner 
        that is consistent with the goals of the United States relating 
        to sustainable and secure supplies of food, chemicals, and 
        fuel;</DELETED>
        <DELETED>    ``(2) ensure full consideration of Federal land 
        and land management programs as potential feedstock resources 
        for biobased industrial products; and</DELETED>
        <DELETED>    ``(3) assess the environmental, economic, and 
        social impact of production of biobased industrial products 
        from biomass on a large scale.</DELETED>
<DELETED>    ``(d) Points of Contact.--</DELETED>
        <DELETED>    ``(1) In general.--To coordinate research and 
        development programs and activities relating to biobased 
        industrial products that are carried out by their respective 
        Departments--</DELETED>
                <DELETED>    ``(A) the Secretary of Agriculture shall 
                designate, as the point of contact for the Department 
                of Agriculture, an officer of the Department of 
                Agriculture appointed by the President to a position in 
                the Department before the date of the designation, by 
                and with the advice and consent of the Senate; 
                and</DELETED>
                <DELETED>    ``(B) the Secretary of Energy shall 
                designate, as the point of contact for the Department 
                of Energy, an officer of the Department of Energy 
                appointed by the President to a position in the 
                Department before the date of the designation, by and 
                with the advice and consent of the Senate.</DELETED>
        <DELETED>    ``(2) Duties.--The points of contact shall 
        jointly--</DELETED>
                <DELETED>    ``(A) assist in arranging interlaboratory 
                and site-specific supplemental agreements for research, 
                development, and demonstration projects relating to 
                biobased industrial products;</DELETED>
                <DELETED>    ``(B) serve as cochairpersons of the 
                Board;</DELETED>
                <DELETED>    ``(C) administer the Initiative; 
                and</DELETED>
                <DELETED>    ``(D) respond in writing to each 
                recommendation of the Advisory Committee made under 
                section 1490C(c)(2).</DELETED>

<DELETED>``SEC. 1490B. SUSTAINABLE FUELS AND CHEMICALS BOARD.</DELETED>

<DELETED>    ``(a) Establishment.--There is established the Sustainable 
Fuels and Chemicals Board to coordinate programs within and among 
departments and agencies of the Federal Government for the purpose of 
promoting the use of biobased industrial products by--</DELETED>
        <DELETED>    ``(1) maximizing the benefits deriving from 
        Federal grants and assistance; and</DELETED>
        <DELETED>    ``(2) bringing coherence to Federal 
        planning.</DELETED>
<DELETED>    ``(b) Membership.--The Board shall consist of:</DELETED>
        <DELETED>    ``(1) The point of contact of the Department of 
        Agriculture designated under section 1490A(d)(1)(A), who shall 
        serve as cochairperson of the Board.</DELETED>
        <DELETED>    ``(2) The point of contact of the Department of 
        Energy designated under section 1490A(d)(1)(B), who shall serve 
        as cochairperson of the Board.</DELETED>
        <DELETED>    ``(3) A senior officer of each of the following 
        agencies who is appointed by the head of the agency and who has 
        a rank that is equivalent to the points of contact:</DELETED>
                <DELETED>    ``(A) The Department of the 
                Interior.</DELETED>
                <DELETED>    ``(B) The Environmental Protection 
                Agency.</DELETED>
                <DELETED>    ``(C) The National Science 
                Foundation.</DELETED>
                <DELETED>    ``(D) The Office of Science and Technology 
                Policy.</DELETED>
        <DELETED>    ``(4) At the option of the Secretary of 
        Agriculture and the Secretary of Energy, other members 
        appointed by the Secretaries (after consultation with members 
        described in paragraphs (1) through (3)).</DELETED>
<DELETED>    ``(c) Duties.--The Board shall--</DELETED>
        <DELETED>    ``(1) coordinate research, development, and 
        demonstration activities relating to biobased industrial 
        products--</DELETED>
                <DELETED>    ``(A) between the Department of 
                Agriculture and the Department of Energy; and</DELETED>
                <DELETED>    ``(B) with other departments and agencies 
                of the Federal Government; and</DELETED>
        <DELETED>    ``(2) provide recommendations to the points of 
        contact concerning administration of this subtitle.</DELETED>
<DELETED>    ``(d) Funding.--Each agency represented on the Board is 
encouraged to provide funds for any purpose under this 
subtitle.</DELETED>
<DELETED>    ``(e) Meetings.--The Board shall meet at least quarterly 
to enable the Board to carry out the duties of the Board under 
subsection (c).</DELETED>

<DELETED>``SEC. 1490C. SUSTAINABLE FUELS AND CHEMICALS TECHNICAL 
              ADVISORY COMMITTEE.</DELETED>

<DELETED>    ``(a) Establishment.--There is established the Sustainable 
Fuels and Chemicals Technical Advisory Committee to--</DELETED>
        <DELETED>    ``(1) advise the Secretary of Agriculture and the 
        Secretary of Energy concerning--</DELETED>
                <DELETED>    ``(A) the technical focus and direction of 
                requests for proposals issued under the Initiative; 
                and</DELETED>
                <DELETED>    ``(B) procedures for reviewing the 
                proposals;</DELETED>
        <DELETED>    ``(2) facilitate consultations and partnerships 
        among Federal agencies, agricultural producers, industry, 
        consumers, the research community, and other interested groups 
        to carry out program activities relating to the Initiative; 
        and</DELETED>
        <DELETED>    ``(3) evaluate and perform strategic planning on 
        program activities relating to the Initiative.</DELETED>
<DELETED>    ``(b) Membership.--The Committee shall consist of the 
following members appointed by the points of contact:</DELETED>
        <DELETED>    ``(1) An individual affiliated with the biobased 
        industrial products industry.</DELETED>
        <DELETED>    ``(2) An individual affiliated with a college or 
        university who has expertise in biobased industrial 
        products.</DELETED>
        <DELETED>    ``(3) 2 prominent engineers or scientists who have 
        expertise in biobased industrial products.</DELETED>
        <DELETED>    ``(4) An individual affiliated with a commodity 
        trade association.</DELETED>
        <DELETED>    ``(5) An individual affiliated with an 
        environmental or conservation organization.</DELETED>
        <DELETED>    ``(6) At the option of the points of contact, 
        other members.</DELETED>
<DELETED>    ``(c) Duties.--The Advisory Committee shall--</DELETED>
        <DELETED>    ``(1) advise the points of contact with respect to 
        the Initiative; and</DELETED>
        <DELETED>    ``(2) evaluate whether, and make recommendations 
        in writing to the Board to ensure that--</DELETED>
                <DELETED>    ``(A) funds authorized for the Initiative 
                are distributed and used in a manner that is consistent 
                with the goals of the Initiative;</DELETED>
                <DELETED>    ``(B) the points of contact are funding 
                proposals under this subtitle that are selected on the 
                basis of merit, as determined by an independent panel 
                of scientific and technical peers; and</DELETED>
                <DELETED>    ``(C) activities under this subtitle are 
                carried out in accordance with this subtitle.</DELETED>
<DELETED>    ``(d) Meetings.--The Advisory Committee shall meet at 
least quarterly to enable the Advisory Committee to carry out the 
duties of the Advisory Committee under subsection (c).</DELETED>

<DELETED>``SEC. 1490D. SUSTAINABLE FUELS AND CHEMICALS RESEARCH 
              INITIATIVE.</DELETED>

<DELETED>    ``(a) In General.--The Secretary of Agriculture and the 
Secretary of Energy, acting through their respective points of contact 
and in consultation with the Board, shall establish and carry out a 
Sustainable Fuels and Chemicals Research Initiative under which 
competitively-awarded grants, contracts, and financial assistance are 
provided to, or entered into with, eligible entities to carry out 
research on biobased industrial products.</DELETED>
<DELETED>    ``(b) Purposes.--The purposes of grants, contracts, and 
assistance under this section shall be to--</DELETED>
        <DELETED>    ``(1) stimulate collaborative activities by a 
        diverse range of experts in all aspects of biomass processing 
        for the purpose of conducting fundamental and innovation-
        targeted research and technology development;</DELETED>
        <DELETED>    ``(2) enhance creative and imaginative approaches 
        toward biomass processing that will serve to develop the next 
        generation of advanced technologies making possible low cost 
        biobased industrial products;</DELETED>
        <DELETED>    ``(3) strengthen the intellectual resources of the 
        United States through the training and education of future 
        scientists, engineers, managers, and business leaders in the 
        field of biomass processing; and</DELETED>
        <DELETED>    ``(4) promote integrated research partnerships 
        among colleges, universities, national laboratories, Federal 
        research agencies, and the private sector as the best means of 
        overcoming technical challenges that span multiple academic 
        disciplines and leveraging scarce Federal research 
        funds.</DELETED>
<DELETED>    ``(c) Eligible Entities.--</DELETED>
        <DELETED>    ``(1) In general.--To be eligible for a grant, 
        contract, or assistance under this section, an applicant shall 
        be--</DELETED>
                <DELETED>    ``(A) a college or university;</DELETED>
                <DELETED>    ``(B) a national laboratory;</DELETED>
                <DELETED>    ``(C) a Federal research agency;</DELETED>
                <DELETED>    ``(D) a State research agency;</DELETED>
                <DELETED>    ``(E) a private sector entity; 
                or</DELETED>
                <DELETED>    ``(F) a consortium of 2 or more entities 
                described in subparagraphs (A) through (E).</DELETED>
        <DELETED>    ``(2) Administration.--After consultation with the 
        Board, the points of contact shall--</DELETED>
                <DELETED>    ``(A) publish annually a joint request for 
                proposals for grants, contracts, and assistance under 
                this section;</DELETED>
                <DELETED>    ``(B) provide a preference in grants, 
                contracts, and assistance under this section to 
                consortia involving experts from multiple institutions 
                and multiple academic disciplines working on cross-
                cutting or integrative research, development, and 
                demonstration challenges; and</DELETED>
                <DELETED>    ``(C) require that grants, contracts, and 
                assistance under this section be awarded competitively 
                after the establishment of procedures that provide for 
                scientific peer review by an independent panel of 
                scientific and technical peers.</DELETED>
<DELETED>    ``(d) Uses of Grants, Contracts, and Assistance.--A grant, 
contract, or assistance under this section shall be used to conduct--
</DELETED>
        <DELETED>    ``(1) research on process technology for 
        overcoming the recalcitrance of biomass, including research on 
        key mechanisms, advanced technologies, and demonstration test 
        beds for--</DELETED>
                <DELETED>    ``(A) feedstock pretreatment and 
                hydrolysis of cellulose and hemicellulose, including 
                new technologies for--</DELETED>
                        <DELETED>    ``(i) enhanced sugar 
                        yields;</DELETED>
                        <DELETED>    ``(ii) lower overall chemical 
                        use;</DELETED>
                        <DELETED>    ``(iii) less costly materials; 
                        and</DELETED>
                        <DELETED>    ``(iv) cost reduction;</DELETED>
                <DELETED>    ``(B) novel organism development and 
                cellulose production, including consolidated 
                bioprocessing techniques; and</DELETED>
                <DELETED>    ``(C) approaches other than enzymatic 
                hydrolysis for overcoming the recalcitrance of 
                cellulosic biomass;</DELETED>
        <DELETED>    ``(2) research on technologies for diversifying 
        the range of products that can be efficiently and cost-
        competitively produced from biomass, including research on--
        </DELETED>
                <DELETED>    ``(A) metabolic engineering of biological 
                systems (including genetically modified crops) to 
                produce novel products, especially commodity products, 
                or to increase product selectivity and tolerance, with 
                a research priority on the development of biobased 
                products that can compete in performance and cost with 
                fossil-based products;</DELETED>
                <DELETED>    ``(B) catalytic processing to convert 
                intermediates of biomass processing into products of 
                interest;</DELETED>
                <DELETED>    ``(C) separation technologies for cost-
                effective product recovery and purification;</DELETED>
                <DELETED>    ``(D) approaches other than metabolic 
                engineering and catalytic conversion of intermediates 
                of biomass processing; and</DELETED>
                <DELETED>    ``(E) advanced technologies for biomass 
                gasification and related research in turbine and 
                stationary fuel cell technology for production of 
                electricity from biomass and related research in 
                advanced turbine and stationary fuel cell technology; 
                and</DELETED>
        <DELETED>    ``(3) research aimed at evaluating the 
        sustainability and economic viability of biobased industrial 
        products and their raw material input of biomass, including 
        research on--</DELETED>
                <DELETED>    ``(A) the evaluation of, and strategies to 
                enhance, the sustainability of biomass-based production 
                of fuels and commodity chemicals, including research 
                on--</DELETED>
                        <DELETED>    ``(i) accurate measurement and 
                        analysis of carbon sequestration and carbon 
                        cycling in relation to biobased industrial 
                        products and feedstocks;</DELETED>
                        <DELETED>    ``(ii) crops that provide a 
                        sustainable resource for conversion to 
                        industrial products while also serving as a 
                        source for other needs such as food or animal 
                        feed;</DELETED>
                        <DELETED>    ``(iii) development and analysis 
                        of best land management practices that enhance 
                        the environmental sustainability of the 
                        production and harvesting of biomass;</DELETED>
                        <DELETED>    ``(iv) development of biomass 
                        cropping systems that improve the conservation 
                        and use of marginal land; and</DELETED>
                        <DELETED>    ``(v) biomass gasification and 
                        combustion to produce electricity; 
                        and</DELETED>
                <DELETED>    ``(B) the evaluation of, and strategies to 
                enhance, the economic viability of fuels and commodity 
                chemicals produced from biomass, including research 
                on--</DELETED>
                        <DELETED>    ``(i) the evaluation of the energy 
                        balances for biorefineries;</DELETED>
                        <DELETED>    ``(ii) the cost of the required 
                        process technology; and</DELETED>
                        <DELETED>    ``(iii) the impact of coproduction 
                        on product price and large-scale economic 
                        viability.</DELETED>
<DELETED>    ``(e) Authorization of Appropriations.--</DELETED>
        <DELETED>    ``(1) In general.--In addition to any other 
        amounts that are authorized to be appropriated, there are 
        authorized to be appropriated to carry out this section 
        $49,000,000 for each of fiscal years 2000 through 
        2005.</DELETED>
        <DELETED>    ``(2) Research on cellulosic biomass.--For each 
        fiscal year, of the amounts that are made available under 
        paragraph (1), not less than 30 percent shall be used to 
        conduct research described in subsection (d)(1).</DELETED>

<DELETED>``SEC. 1490E. ADMINISTRATIVE SUPPORT AND FUNDS.</DELETED>

<DELETED>    ``(a) In General.--To the extent administrative support 
and funds are not provided by other agencies under subsection (b), the 
Secretary of Energy shall provide such administrative support and funds 
of the Department of Energy to the Board and the Advisory Committee as 
are necessary to enable the Board and the Advisory Committee to carry 
out this subtitle.</DELETED>
<DELETED>    ``(b) Other Agencies.--The Secretary of Agriculture and 
the heads of the agencies referred to in section 1490B(a)(3) may, and 
are encouraged to, provide administrative support and funds of their 
respective agencies to the Board and the Advisory Committee.</DELETED>

<DELETED>``SEC. 1490F. REPORTS.</DELETED>

<DELETED>    ``For each fiscal year that funds are made available to 
carry out this subtitle, the Secretary of Agriculture and the Secretary 
of Energy shall jointly transmit to Congress a detailed report on--
</DELETED>
        <DELETED>    ``(1) the status and progress of the Initiative, 
        including a certification from the Board that funds authorized 
        for the Initiative are distributed and used in a manner that is 
        consistent with the goals of the Initiative; and</DELETED>
        <DELETED>    ``(2) the general status of cooperation and 
        research efforts carried out by each Secretary with respect to 
        sustainable fuels, chemicals, and electricity derived from 
        biomass, including a certification from the Board that the 
        points of contact are funding proposals that are selected on 
        the basis of merit, as determined by an independent panel of 
        scientific and technical peers.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Sustainable Fuels and 
Chemicals Act of 1999''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) conversion of biomass into biobased industrial products 
        offers outstanding potential for benefit to the national 
        interest through improved strategic security and balance of 
        payments, healthier rural economies, improved environmental 
        quality, near-zero net greenhouse gas emissions, technology 
        export, and sustainable resource supply;
            (2)(A) biomass is widely available at prices that are 
        competitive with low cost petroleum; and
            (B) the key technical challenges to be overcome in order 
        for biobased industrial products to be cost competitive are 
        finding new technology and reducing the cost of technology for 
        converting biomass into desired biobased industrial products;
            (3) biobased fuels, such as ethanol, have the clear 
        potential to be sustainable, low cost, and high performance 
        fuels that are compatible with both current and future 
        transportation systems and provide near zero net greenhouse gas 
        emissions;
            (4) biobased chemicals--
                    (A) can provide functional replacements for 
                essentially all organic chemicals that are currently 
                derived from petroleum; and
                    (B) have the clear potential for environmentally 
                benign product life cycles;
            (5) biobased power can provide environmental benefits, 
        promote rural economic development, and diversify energy 
        resource options;
            (6) many biomass feedstocks suitable for industrial 
        processing show the clear potential for sustainable production, 
        in some cases resulting in improved soil fertility and carbon 
        sequestration;
            (7)(A) grain processing mills are biorefineries that 
        produce a diversity of useful food, chemical, feed, and fuel 
        products; and
            (B) technologies that result in further diversification of 
        the range of value-added biobased industrial products can meet 
        a key need for the grain processing industry;
            (8)(A) cellulosic feedstocks are attractive because of 
        their low cost and widespread availability; and
            (B) research resulting in cost-effective technology to 
        overcome the recalcitrance of cellulosic biomass would allow 
        biorefineries to produce fuels and bulk chemicals on a very 
        large scale, with a commensurately large realization of the 
        benefit described in paragraph (1);
            (9) research into the fundamentals to understand important 
        mechanisms of biomass conversion can be expected to accelerate 
        the application and advancement of biomass processing 
        technology by--
                    (A) increasing the confidence and speed with which 
                new technologies can be scaled up; and
                    (B) giving rise to processing innovations based on 
                new knowledge;
            (10) the added utility of biobased industrial products 
        developed through improvements in processing technology would 
        encourage the design of feedstocks that would meet future needs 
        more effectively;
            (11) the creation of value-added biobased industrial 
        products would create new jobs in construction, manufacturing, 
        and distribution, as well as new higher-valued exports of 
        products and technology;
            (12)(A) because of the relatively short-term time horizon 
        characteristic of private sector investments, and because many 
        benefits of biomass processing are in the national interest, it 
        is appropriate for the Federal Government to provide 
        precommercial investment in fundamental research and research-
        driven innovation in the biomass processing area; and
            (B) such an investment would provide a valuable complement 
        to ongoing and past governmental support in the biomass 
        processing area; and
            (13) several prominent studies, including studies by the 
        President's Council of Advisors on Science and Technology and 
        the National Research Council--
                    (A) support the potential for large research-driven 
                advances in technologies for production of biobased 
                industrial products as well as associated benefits; and
                    (B) document the need for a focused, integrated, 
                and innovation-driven research effort to provide the 
                appropriate progress in a timely manner.

SEC. 3. CONVERSION OF BIOMASS INTO BIOBASED INDUSTRIAL PRODUCTS.

    The National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3101 et seq.) is amended by adding at the end the 
following:

 ``Subtitle N--Conversion of Biomass Into Biobased Industrial Products

``SEC. 1490. DEFINITIONS.

    ``In this subtitle:
            ``(1) Advisory committee.--The term `Advisory Committee' 
        means the Sustainable Fuels and Chemicals Technical Advisory 
        Committee established by section 1490C.
            ``(2) Biobased industrial product.--The term `biobased 
        industrial product' means any power, fuel, feed, chemical 
        product, or other consumer good derived from biomass.
            ``(3) Biomass.--The term `biomass' means any organic matter 
        that is available on a renewable or recurring basis (excluding 
        old growth timber), including dedicated energy crops and trees, 
        wood and wood residues, plants (including aquatic plants), 
        grasses, agricultural crops, residues, fibers, and animal 
        wastes and other waste materials.
            ``(4) Board.--The term `Board' means the Sustainable Fuels 
        and Chemicals Board established by section 1490B.
            ``(5) Initiative.--The term `Initiative' means the 
        Sustainable Fuels and Chemicals Research Initiative established 
        under section 1490D.
            ``(6) Point of contact.--The term `point of contact' means 
        a point of contact designated under section 1490A(d).
            ``(7) Processing.--The term `processing' means the 
        derivation of biobased industrial products from biomass, 
        including--
                    ``(A) feedstock production;
                    ``(B) harvest and handling;
                    ``(C) pretreatment or thermochemical processing;
                    ``(D) fermentation;
                    ``(E) catalytic processing;
                    ``(F) product recovery; and
                    ``(G) coproduct production.

``SEC. 1490A. COOPERATION AND COORDINATION IN SUSTAINABLE FUELS AND 
              CHEMICALS RESEARCH.

    ``(a) In General.--The Secretary of Agriculture and the Secretary 
of Energy shall cooperate with respect to, and coordinate, policies and 
procedures that promote research and development leading to the 
production of biobased industrial products.
    ``(b) Purpose.--The purpose of the cooperation and coordination 
shall be to--
            ``(1) understand the key mechanisms underlying the 
        recalcitrance of biomass for conversion into biobased 
        industrial products;
            ``(2) develop new and cost-effective technologies that 
        would result in large-scale commercial production of low cost 
        and sustainable biobased industrial products;
            ``(3) ensure that biobased industrial products are 
        developed in a manner that enhances their economic, energy 
        security, and environmental benefits; and
            ``(4) promote the development and use of agricultural and 
        energy crops for conversion into biobased industrial products.
    ``(c) Areas.--In carrying out this subtitle, the Secretary of 
Agriculture and the Secretary of Energy, in consultation with heads of 
appropriate departments and agencies, shall promote research and 
development to--
            ``(1) advance the availability and widespread use of energy 
        efficient, economically competitive, and environmentally sound 
        biobased industrial products in a manner that is consistent 
        with the goals of the United States relating to sustainable and 
        secure supplies of food, chemicals, and fuel;
            ``(2) ensure full consideration of Federal land and land 
        management programs as potential feedstock resources for 
        biobased industrial products; and
            ``(3) assess the environmental, economic, and social impact 
        of production of biobased industrial products from biomass on a 
        large scale.
    ``(d) Points of Contact.--
            ``(1) In general.--To coordinate research and development 
        programs and activities relating to biobased industrial 
        products that are carried out by their respective Departments--
                    ``(A) the Secretary of Agriculture shall designate, 
                as the point of contact for the Department of 
                Agriculture, an officer of the Department of 
                Agriculture appointed by the President to a position in 
                the Department before the date of the designation, by 
                and with the advice and consent of the Senate; and
                    ``(B) the Secretary of Energy shall designate, as 
                the point of contact for the Department of Energy, an 
                officer of the Department of Energy appointed by the 
                President to a position in the Department before the 
                date of the designation, by and with the advice and 
                consent of the Senate.
            ``(2) Duties.--The points of contact shall jointly--
                    ``(A) assist in arranging interlaboratory and site-
                specific supplemental agreements for research, 
                development, and demonstration projects relating to 
                biobased industrial products;
                    ``(B) serve as cochairpersons of the Board;
                    ``(C) administer the Initiative; and
                    ``(D) respond in writing to each recommendation of 
                the Advisory Committee made under section 1490C(c)(2).

``SEC. 1490B. SUSTAINABLE FUELS AND CHEMICALS BOARD.

    ``(a) Establishment.--There is established the Sustainable Fuels 
and Chemicals Board to coordinate programs within and among departments 
and agencies of the Federal Government for the purpose of promoting the 
use of biobased industrial products by--
            ``(1) maximizing the benefits deriving from Federal grants 
        and assistance; and
            ``(2) bringing coherence to Federal strategic planning.
    ``(b) Membership.--The Board shall consist of:
            ``(1) The point of contact of the Department of Agriculture 
        designated under section 1490A(d)(1)(A), who shall serve as 
        cochairperson of the Board.
            ``(2) The point of contact of the Department of Energy 
        designated under section 1490A(d)(1)(B), who shall serve as 
        cochairperson of the Board.
            ``(3) A senior officer of each of the following agencies 
        who is appointed by the head of the agency and who has a rank 
        that is equivalent to the points of contact:
                    ``(A) The Department of the Interior.
                    ``(B) The Environmental Protection Agency.
                    ``(C) The National Science Foundation.
                    ``(D) The Office of Science and Technology Policy.
            ``(4) At the option of the Secretary of Agriculture and the 
        Secretary of Energy, other members appointed by the Secretaries 
        (after consultation with members described in paragraphs (1) 
        through (3)).
    ``(c) Duties.--The Board shall--
            ``(1) coordinate research, development, and demonstration 
        activities relating to biobased industrial products--
                    ``(A) between the Department of Agriculture and the 
                Department of Energy; and
                    ``(B) with other departments and agencies of the 
                Federal Government; and
            ``(2) provide recommendations to the points of contact 
        concerning administration of this subtitle.
    ``(d) Funding.--Each agency represented on the Board is encouraged 
to provide funds for any purpose under this subtitle.
    ``(e) Meetings.--The Board shall meet at least quarterly to enable 
the Board to carry out the duties of the Board under subsection (c).

``SEC. 1490C. SUSTAINABLE FUELS AND CHEMICALS TECHNICAL ADVISORY 
              COMMITTEE.

    ``(a) Establishment.--There is established the Sustainable Fuels 
and Chemicals Technical Advisory Committee to--
            ``(1) advise the Secretary of Agriculture, the Secretary of 
        Energy, and the points of contact concerning--
                    ``(A) the technical focus and direction of requests 
                for proposals issued under the Initiative; and
                    ``(B) procedures for reviewing and evaluating the 
                proposals;
            ``(2) facilitate consultations and partnerships among 
        Federal and State agencies, agricultural producers, industry, 
        consumers, the research community, and other interested groups 
        to carry out program activities relating to the Initiative; and
            ``(3) evaluate and perform strategic planning on program 
        activities relating to the Initiative.
    ``(b) Membership.--The Committee shall consist of the following 
members appointed by the points of contact:
            ``(1) An individual affiliated with the biobased industrial 
        products industry.
            ``(2) An individual affiliated with a college or university 
        who has expertise in biobased industrial products.
            ``(3) 2 prominent engineers or scientists from government 
        or academia who have expertise in biobased industrial products.
            ``(4) An individual affiliated with a commodity trade 
        association.
            ``(5) An individual affiliated with an environmental or 
        conservation organization.
            ``(6) An individual associated with State government who 
        has expertise in biobased industrial products.
            ``(7) At the option of the points of contact, other 
        members.
    ``(c) Duties.--The Advisory Committee shall--
            ``(1) advise the points of contact with respect to the 
        Initiative; and
            ``(2) evaluate whether, and make recommendations in writing 
        to the Board to ensure that--
                    ``(A) funds authorized for the Initiative are 
                distributed and used in a manner that is consistent 
                with the goals of the Initiative;
                    ``(B) the points of contact are funding proposals 
                under this subtitle that are selected on the basis of 
                merit, as determined by an independent panel of 
                scientific and technical peers; and
                    ``(C) activities under this subtitle are carried 
                out in accordance with this subtitle.
    ``(d) Meetings.--The Advisory Committee shall meet at least 
quarterly to enable the Advisory Committee to carry out the duties of 
the Advisory Committee under subsection (c).

``SEC. 1490D. SUSTAINABLE FUELS AND CHEMICALS RESEARCH INITIATIVE.

    ``(a) In General.--The Secretary of Agriculture and the Secretary 
of Energy, acting through their respective points of contact and in 
consultation with the Board, shall establish and carry out a 
Sustainable Fuels and Chemicals Research Initiative under which 
competitively-awarded grants, contracts, and financial assistance are 
provided to, or entered into with, eligible entities to carry out 
research on biobased industrial products.
    ``(b) Purposes.--The purposes of grants, contracts, and assistance 
under this section shall be to--
            ``(1) stimulate collaborative activities by a diverse range 
        of experts in all aspects of biomass processing for the purpose 
        of conducting fundamental and innovation-targeted research and 
        technology development;
            ``(2) enhance creative and imaginative approaches toward 
        biomass processing that will serve to develop the next 
        generation of advanced technologies making possible low cost 
        and sustainable biobased industrial products;
            ``(3) strengthen the intellectual resources of the United 
        States through the training and education of future scientists, 
        engineers, managers, and business leaders in the field of 
        biomass processing; and
            ``(4) promote integrated research partnerships among 
        colleges, universities, national laboratories, Federal and 
        State research agencies, and the private sector as the best 
        means of overcoming technical challenges that span multiple 
        research and engineering disciplines and of gaining better 
        leverage from limited Federal research funds.
    ``(c) Eligible Entities.--
            ``(1) In general.--To be eligible for a grant, contract, or 
        assistance under this section, an applicant shall be--
                    ``(A) a college or university;
                    ``(B) a national laboratory;
                    ``(C) a Federal research agency;
                    ``(D) a State research agency;
                    ``(E) a private sector entity;
                    ``(F) a nonprofit organization; or
                    ``(G) a consortium of 2 or more entities described 
                in subparagraphs (A) through (E).
            ``(2) Administration.--After consultation with the Board, 
        the points of contact, on behalf of the Board, shall--
                    ``(A) publish annually 1 or more joint requests for 
                proposals for grants, contracts, and assistance under 
                this section;
                    ``(B) establish a priority in grants, contracts, 
                and assistance under this section for research that--
                            ``(i) demonstrates potential for 
                        significant advances in biomass processing;
                            ``(ii) demonstrates potential to 
                        substantially impact scale-sensitive national 
                        objectives such as sustainable resource supply, 
                        reduced greenhouse gas emissions, healthier 
                        rural economies, and improved strategic 
                        security and trade balances; and
                            ``(iii) would improve knowledge of 
                        important biomass processing systems that 
                        demonstrate potential for commercial 
                        applications;
                    ``(C) require that grants, contracts, and 
                assistance under this section be awarded competitively, 
                on the basis of merit, after the establishment of 
                procedures that provide for scientific peer review by 
                an independent panel of scientific and technical peers; 
                and
                    ``(D) give preference to applications that--
                            ``(i) involve a consortia of experts from 
                        multiple institutions; and
                            ``(ii) encourage the integration of 
                        disciplines and application of the best 
                        technical resources.
    ``(d) Uses of Grants, Contracts, and Assistance.--A grant, 
contract, or assistance under this section shall be used to conduct--
            ``(1) research on process technology for overcoming the 
        recalcitrance of biomass, including research on key mechanisms, 
        advanced technologies, and demonstration test beds for--
                    ``(A) feedstock pretreatment and hydrolysis of 
                cellulose and hemicellulose, including new technologies 
                for--
                            ``(i) enhanced sugar yields;
                            ``(ii) lower overall chemical use;
                            ``(iii) less costly materials; and
                            ``(iv) cost reduction;
                    ``(B) development of novel organisms and other 
                approaches to substantially lower the cost of cellulase 
                enzymes and enzymatic hydrolysis, including dedicated 
                cellulase production and consolidated bioprocessing 
                strategies; and
                    ``(C) approaches other than enzymatic hydrolysis 
                for overcoming the recalcitrance of cellulosic biomass;
            ``(2) research on technologies for diversifying the range 
        of products that can be efficiently and cost-competitively 
        produced from biomass, including research on--
                    ``(A) metabolic engineering of biological systems 
                (including the safe use of genetically modified crops) 
                to produce novel products, especially commodity 
                products, or to increase product selectivity and 
                tolerance, with a research priority on the development 
                of biobased products that can compete in performance 
                and cost with fossil-based products;
                    ``(B) catalytic processing to convert intermediates 
                of biomass processing into products of interest;
                    ``(C) separation technologies for cost-effective 
                product recovery and purification;
                    ``(D) approaches other than metabolic engineering 
                and catalytic conversion of intermediates of biomass 
                processing;
                    ``(E) advanced biomass gasification technologies, 
                including coproduction of power and heat as an 
                integrated component of biomass processing, with the 
                possibility of generating excess electricity for sale; 
                and
                    ``(F) related research in advanced turbine and 
                stationary fuel cell technology for production of 
                electricity from biomass; and
            ``(3) research aimed at ensuring the environmental 
        performance and economic viability of biobased industrial 
        products and their raw material input of biomass when 
        considered as an integrated system, including research on--
                    ``(A) the analysis of, and strategies to enhance, 
                the environmental performance and sustainability of 
                biobased industrial products, including research on--
                            ``(i) accurate measurement and analysis of 
                        greenhouse gas emissions, carbon sequestration, 
                        and carbon cycling in relation to the life 
                        cycle of biobased industrial products and 
                        feedstocks with respect to other alternatives;
                            ``(ii) evaluation of current and future 
                        biomass resource availability;
                            ``(iii) development and analysis of land 
                        management practices and alternative biomass 
                        cropping systems that ensure the environmental 
                        performance and sustainability of biomass 
                        production and harvesting;
                            ``(iv) land, air, water, and biodiversity 
                        impacts of large-scale biomass production, 
                        processing, and use of biobased industrial 
                        products relative to other alternatives; and
                            ``(v) biomass gasification and combustion 
                        to produce electricity;
                    ``(B) the analysis of, and strategies to enhance, 
                the economic viability of biobased industrial products, 
                including research on--
                            ``(i) the cost of the required process 
                        technology;
                            ``(ii) the impact of coproducts, including 
                        power and heat generation, on biobased 
                        industrial product price and large-scale 
                        economic viability; and
                            ``(iii) interactions between an emergent 
                        biomass refining industry and the petrochemical 
                        refining infrastructure; and
                    ``(C) the field and laboratory research related to 
                feedstock production with the interrelated goals of 
                enhancing the sustainability, increasing productivity, 
                and decreasing the cost of biomass processing, 
                including research on--
                            ``(i) altering biomass to make biomass 
                        easier and less expensive to process;
                            ``(ii) existing and new agricultural and 
                        energy crops that provide a sustainable 
                        resource for conversion to biobased industrial 
                        products while simultaneously serving as a 
                        source for coproducts such as food, animal 
                        feed, and fiber;
                            ``(iii) improved technologies for harvest, 
                        collection, transport, storage, and handling of 
                        crop and residue feedstocks; and
                            ``(iv) development of economically viable 
                        cropping systems that improve the conservation 
                        and restoration of marginal land.
    ``(e) Authorization of Appropriations.--In addition to any other 
amounts that are authorized to be appropriated, there are authorized to 
be appropriated to carry out this section $49,000,000 for each of 
fiscal years 2000 through 2005.

``SEC. 1490E. ADMINISTRATIVE SUPPORT AND FUNDS.

    ``(a) In General.--To the extent administrative support and funds 
are not provided by other agencies under subsection (b), the Secretary 
of Energy shall provide such administrative support and funds of the 
Department of Energy to the Board and the Advisory Committee as are 
necessary to enable the Board and the Advisory Committee to carry out 
this subtitle.
    ``(b) Other Agencies.--The Secretary of Agriculture and the heads 
of the agencies referred to, or appointed under, paragraphs (3) and (4) 
of section 1490B(a) may, and are encouraged to, provide administrative 
support and funds of their respective agencies to the Board and the 
Advisory Committee.

``SEC. 1490F. REPORTS.

    ``For each fiscal year that funds are made available to carry out 
this subtitle, the Secretary of Agriculture and the Secretary of Energy 
shall jointly transmit to Congress a detailed report on--
            ``(1) the status and progress of the Initiative, including 
        a certification from the Board that funds authorized for the 
        Initiative are distributed and used in a manner that is 
        consistent with the goals of the Initiative; and
            ``(2) the general status of cooperation and research 
        efforts carried out by each Secretary with respect to 
        sustainable fuels, chemicals, and electricity derived from 
        biomass, including a certification from the Board that the 
        points of contact are funding proposals that are selected on 
        the basis of merit, as determined by an independent panel of 
        scientific and technical peers.

``SEC. 1490G. AUTHORIZATION OF APPROPRIATIONS FOR ETHANOL RESEARCH 
              PILOT PLANT.

    ``There are authorized to be appropriated to construct a Department 
of Agriculture corn-based ethanol research pilot plant a total of 
$14,000,000 for fiscal year 2000 and subsequent fiscal years.''.

SEC. 4. USE OF CONSERVATION RESERVE LAND FOR RECOVERY OF BIOMASS USED 
              IN ENERGY PRODUCTION.

    Section 1232(a)(7) of the Food Security Act of 1985 (16 U.S.C. 
3832(a)(7)) is amended--
            (1) by striking ``except that the Secretary may permit 
        harvesting'' and inserting ``except that the Secretary--
                    ``(A) may permit--
                            ``(i) harvesting'';
            (2) by striking ``emergency, and the Secretary may permit 
        limited'' and inserting ``emergency; and
                            ``(ii) limited'';
            (3) by inserting ``and'' after the semicolon at the end; 
        and
            (4) by adding at the end the following:
                    ``(B) shall approve not more than 18 projects under 
                which crops on land subject to the contract may be 
                harvested for recovery of biomass used in energy 
                production if--
                            ``(i) no acreage subject to the contract is 
                        harvested more than once every other year;
                            ``(ii) not more than 25 percent of the 
                        total acreage enrolled in the program under 
                        this subchapter in any crop reporting district 
                        (as designated by the Secretary), is harvested 
                        in any 1 year;
                            ``(iii) no portion of the crop is used for 
                        any commercial purpose other than energy 
                        production from biomass;
                            ``(iv) no wetland, or acreage of any type 
                        enrolled in a partial field conservation 
                        practice (including riparian forest buffers, 
                        filter strips, and buffer strips), is 
                        harvested;
                            ``(v) the owner or operator agrees to a 
                        payment reduction under this section in an 
                        amount determined by the Secretary;
                            ``(vi) the owner or operator agrees to 
                        commission and submit to the Secretary a study 
                        and report, to be conducted and written by a 
                        third party approved by the Secretary, on the 
                        impact of the biomass production and harvesting 
                        on wildlife; and
                            ``(vii) the owner or operator agrees to 
                        such other terms and conditions as the 
                        Secretary, in consultation with the State 
                        technical committee for the State and 
                        appropriate conservation and wildlife 
                        advocates, may establish to ensure that the 
                        production and harvesting of biomass crops 
                        minimize disturbance of wildlife habitat and 
                        are otherwise consistent with the purposes of 
                        the program established under this subchapter, 
                        with any biomass harvesting project permitted 
                        to harvest at least 50,000 acres per year.''.
```