II 

110TH CONGRESS 

1ST SESSION S. 426 

To provide that all funds collected from the tariff on imports of ethanol 

be invested in the research, development, and deployment of biofuels, 

especially cellulosic ethanol produced from biomass feedstocks. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 29, 2007 

Mr. NELSON of Nebraska introduced the following bill; which was read twice 

and referred to the Committee on Energy and Natural Resources 

A BILL 

To provide that all funds collected from the tariff on imports 

of ethanol be invested in the research, development, and 

deployment of biofuels, especially cellulosic ethanol produced from biomass feedstocks. 

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 ‘‘Biofuels Investment 

5 Trust Fund Act’’. 

6 SEC. 2. BIOFUELS INVESTMENT TRUST FUND. 

7 (a) ESTABLISHMENT.— 


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1 (1) IN GENERAL.—There is established in the 

2 Treasury of the United States a trust fund, to be 

3 known as the ‘‘Biofuels Investment Trust Fund’’ 

4 (referred to in this Act as the ‘‘Trust Fund’’), con5 sisting of such amounts as may be transferred to the 

6 Trust Fund under paragraph (2). 

7 (2) TRANSFER.—As soon as practicable after 

8 the date of enactment of this Act, the Secretary of 

9 the Treasury shall transfer to the Trust Fund, from 

10 amounts in the general fund of the Treasury, such 

11 amounts as the Secretary of the Treasury deter12 mines to be equivalent to the amounts received in 

13 the general fund as of January 1, 2007, that are at14 tributable to duties received on articles entered 

15 under heading 9901.00.50 of the Harmonized Tariff 

16 Schedule of the United States. 

17 (b) EXPENDITURES FROM TRUST FUND.— 

18 (1) IN GENERAL.—The Secretary of Energy, in 

19 consultation with the Secretary of Agriculture and 

20 the Secretary of the Treasury, shall use amounts in 

21 the Trust Fund to provide financial assistance for 

22 research, development, and deployment programs for 

23 biofuels to increase the amount and diversity of 

24 biofuels produced in the United States and made 


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1 available to consumers, especially for cellulosic eth2 anol production from biomass feedstocks. 

3 (2) REQUIREMENTS.—The Secretary of Energy 

4 shall ensure that amounts made available under 

5 paragraph (1) shall be used only— 

6 (A) to provide financial assistance to farm7 ers, producers, biorefiners, researchers, univer8 sities, and other persons or entities involved in 

9 the research, development, deployment, or pro10 duction of biofuels, especially the production of 

11 biomass feedstock for cellulosic ethanol produc12 tion; or 

13 (B) as otherwise directed by Congress to 

14 advance research, development, and deployment 

15 of biofuels, especially cellulosic ethanol pro16 duced from biomass feedstocks. 

17 (c) INVESTMENT OF AMOUNTS.— 

18 (1) IN GENERAL.—The Secretary of the Treas19 ury shall invest such portion of the Trust Fund as 

20 is not, in the judgment of the Secretary of the 

21 Treasury, required to meet current withdrawals. 

22 (2) INTEREST-BEARING OBLIGATIONS.—Invest23 ments may be made only in interest-bearing obliga24 tions of the United States. 


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1 (3) ACQUISITION OF OBLIGATIONS.—For the 

2 purpose of investments under paragraph (1), obliga3 tions may be acquired— 

4 (A) on original issue at the issue price; or 

5 (B) by purchase of outstanding obligations 

6 at the market price. 

7 (4) SALE OF OBLIGATIONS.—Any obligation ac8 quired by the Trust Fund may be sold by the Sec9 retary of the Treasury at the market price. 

10 (5) CREDITS TO TRUST FUND.—The interest 

11 on, and the proceeds from the sale or redemption of, 

12 any obligations held in the Trust Fund shall be 

13 credited to and form a part of the Trust Fund. 

14 (d) TRANSFERS OF AMOUNTS.— 

15 (1) IN GENERAL.—The amounts required to be 

16 transferred to the Trust Fund under subsection 

17 (a)(1) shall be transferred at least quarterly from 

18 the general fund of the Treasury to the Trust Fund 

19 on the basis of estimates made by the Secretary of 

20 the Treasury. 

21 (2) ADJUSTMENTS.—Proper adjustment shall 

22 be made in amounts subsequently transferred to the 

23 extent prior estimates were in excess of or less than 

24 the amounts required to be transferred. 

Æ 


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