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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 36 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                 S. 36

  To amend the Farm Security and Rural Investment Act to establish a 
    biofuels promotion program to promote sustainable production of 
             biofuels and biomass, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 23, 2007

   Mr. Thune (for himself and Mr. Nelson of Nebraska) 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 to establish a 
    biofuels promotion program to promote sustainable production of 
             biofuels and biomass, and for other purposes.

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

SECTION 1. BIOFUELS INNOVATION PROGRAM.

    Title IX of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8101 et seq.) is amended by adding at the end the following:

``SEC. 9012. BIOFUELS INNOVATION PROGRAM.

    ``(a) Purpose.--The purpose of this section is to establish a 
Biofuels Innovation Program--
            ``(1) to encourage production of dedicated energy crops in 
        a sustainable manner that protects the soil, air, water, and 
        wildlife of the United States; and
            ``(2) to provide financial and technical assistance to 
        owners and operators of eligible cropland to produce dedicated 
        energy crops and crop mixes of suitable quality and in 
        sufficient quantities to support and induce development and 
        expansion of the use of the crop for--
                    ``(A) biofuels;
                    ``(B) power or heat generation to supplement or 
                replace nonbiobased energy sources; and
                    ``(C) biobased products to supplement or replace 
                non biobased products;
            ``(3) to establish Biofuels Innovation Program project 
        areas; and
            ``(4) to provide financial and technical assistance to 
        owners and operators for harvesting, storing, and transporting 
        cellulosic material.
    ``(b) Definitions.--In this section:
            ``(1) Beginning farmer or rancher.--The term `beginning 
        farmer or rancher' has the meaning given the term in section 
        343(a) of the Consolidated Farm and Rural Development Act (7 
        U.S.C. 1991(a)).
            ``(2) BIP.--The term `BIP' means the Biofuels Innovation 
        Program established under this section.
            ``(3) BIP project area.--The term `BIP project area' means 
        an area that--
                    ``(A) has eligible cropland that--
                            ``(i) is owned or operated by eligible 
                        participants; and
                            ``(ii) has specified boundaries that are 
                        submitted to the Secretary by eligible 
                        participants and subsequently approved by the 
                        Secretary; and
                    ``(B) is physically located within a 70-mile radius 
                of an existing or proposed biofuels facility or another 
                boundary, as determined by the Secretary.
            ``(4) Conservation reserve program.--The term `conservation 
        reserve program' means the conservation reserve program 
        established under subchapter B of chapter 1 of subtitle D of 
        title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et 
        seq.).
            ``(5) Conservation security program.--The term 
        `conservation security program' means the conservation security 
        program established under subchapter A of chapter 2 of subtitle 
        D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 
        et seq.).
            ``(6) Contract acreage.--The term `contract acreage' means 
        eligible cropland that is--
                    ``(A) enrolled in the BIP by an eligible 
                participant; and
                    ``(B) covered by a BIP contract entered into with 
                the Secretary.
            ``(7) Eligible cropland.--
                    ``(A) In general.--The term `eligible cropland' 
                means land that the applicable county committee of the 
                Farm Service Agency determines--
                            ``(i) is currently being tilled for the 
                        production of a crop for harvest; or
                            ``(ii) is not currently being tilled but 
                        has been tilled in a prior crop year and is 
                        suitable for production of an eligible 
                        dedicated energy crop.
                    ``(B) Inclusions.--The term `eligible cropland' 
                includes--
                            ``(i) land that in the native state of the 
                        land was not forest land, if the land is 
                        planted with nonwoody eligible dedicated energy 
                        crops and, for at least 3 of the 5 crop years 
                        preceding the date of enactment of this 
                        section, the land has been--
                                    ``(I) devoted to managed pasture; 
                                or
                                    ``(II) enrolled in the conservation 
                                reserve program and the conservation 
                                reserve program contract has been 
                                voluntarily terminated or is expired; 
                                and
                            ``(ii) land that in the native state of 
                        land was forest land, if the land is planted 
                        with woody or nonwoody eligible dedicated 
                        energy crops and the land has been--
                                    ``(I) forest land but subsequently 
                                clear-cut during the 2-year period 
                                ending on the date of enactment of this 
                                section; or
                                    ``(II) converted from forest land 
                                before the 5-year period ending on the 
                                date of enactment of this section and--
                                            ``(aa) has been tilled for 
                                        the production of a crop for 
                                        harvest;
                                            ``(bb) devoted to managed 
                                        pasture; or
                                            ``(cc) enrolled in the 
                                        conservation reserve program 
                                        for at least 3 of the 5 five 
                                        crop years preceding the date 
                                        of enactment of this section 
                                        and is no longer covered by a 
                                        conservation reserve program 
                                        contract.
                    ``(C) Exclusions.--The term `eligible cropland' 
                does not include--
                            ``(i) Federally-owned land;
                            ``(ii) land enrolled in--
                                    ``(I) the conservation reserve 
                                program;
                                    ``(II) the grassland reserve 
                                program; or
                                    ``(III) the wetlands reserve 
                                program;
                            ``(iii) land with greater than 50 percent 
                        cover of native nonwoody vegetation or forest 
                        land, as of the date of enactment of this 
                        section (other than land described in 
                        subparagraph (B)(iii)); and
                            ``(iv) land that historically was not 
                        native forest land, if planted to woody crops.
            ``(8) Eligible dedicated energy crop.--
                    ``(A) In general.--The term `eligible dedicated 
                energy crop' means any crop native to the United 
                States, or another crop, as determined by the 
                Secretary, grown specifically to provide raw materials 
                for--
                            ``(i) conversion to liquid transportation 
                        fuels or chemicals through biochemical or 
                        thermochemical processes; or
                            ``(ii) energy generation through 
                        combustion, pyrolysis, or cofiring.
                    ``(B) Exclusions.--The term `eligible dedicated 
                energy crop' does not include--
                            ``(i) any crop that is eligible for 
                        payments under title I or a successor title; or
                            ``(ii) any plant that is invasive or 
                        noxious or has the potential to become invasive 
                        or noxious, as determined by--
                                    ``(I) the Secretary of the Interior 
                                (acting through the United States Fish 
                                and Wildlife Service);
                                    ``(II) the Secretary; or
                                    ``(III)(aa) the head of an 
                                applicable State department of 
                                agriculture; or
                                    ``(bb) the head of an applicable 
                                State conservation agency.
            ``(9) Eligible participant.--The term `eligible 
        participant' means an owner or operator of contract acreage 
        that is physically located within a BIP project area .
            ``(10) Federally-owned land.--The term `Federally-owned 
        land' means land owned by--
                    ``(A) the Federal Government (including any 
                department, instrumentality, bureau, or agency of the 
                Federal Government); or
                    ``(B) any corporation whose stock is wholly owned 
                by the Federal Government.
            ``(11) Forest land.--The term `forest land' means an 
        ecosystem that is at least 1 acre in size (including timberland 
        and woodland) and that (as determined by the Secretary)--
                    ``(A) is characterized by dense and extensive tree 
                cover;
                    ``(B) contains, or once contained, at least 10 
                percent tree crown cover; and
                    ``(C) is not developed and planned for exclusive 
                nonforest resource use.
            ``(12) Grassland reserve program.--The term `grassland 
        reserve program' means the grassland reserve program 
        established under subchapter C of chapter 2 of subtitle D of 
        title XII of the Food Security Act of 1985 (16 U.S.C. 3838n et 
        seq.).
            ``(13) Managed pasture.--The term `managed pasture' means 
        land that--
                    ``(A) is currently vegetated with less than 25 
                percent native plant cover;
                    ``(B) has been converted from noncropland to 
                cropland during the 30-year period ending on the date 
                of enactment of this section; and
                    ``(C) has been actively managed for intensive 
                livestock grazing.
            ``(14) Operator.--The term `operator' means an individual, 
        entity, or joint operation that, as determined by the 
        applicable county committee of the Farm Service Agency, is in 
        general control of the farming operations on a farm during the 
        applicable crop year.
            ``(15) Owner.--
                    ``(A) In general.--The term `owner' means a person 
                that has legal ownership of eligible cropland.
                    ``(B) Inclusion.--The term `owner' includes--
                            ``(i) a person that is buying eligible 
                        cropland under a contract for deed;
                            ``(ii) a person that has a life estate in 
                        eligible cropland; and
                            ``(iii) for the purposes of enrolling 
                        eligible cropland in the BIP, a person that has 
                        purchased a farm in a foreclosure proceeding 
                        and--
                                    ``(I) the redemption period has not 
                                passed; and
                                    ``(II) the original owner has not 
                                redeemed the property.
            ``(16) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Natural Resources 
        Conservation Service.
            ``(17) Socially disadvantaged farmer or rancher.--The term 
        `socially disadvantaged farmer or rancher' means a farmer or 
        rancher who--
                    ``(A) is a member of a socially disadvantaged group 
                (as defined in section 355(e) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 2003(e)));
                    ``(B) has limited resources; or
                    ``(C) is a member of a federally recognized Indian 
                tribe.
            ``(18) State.--The term `State' means each of the several 
        States of the United States.
            ``(19) Wetlands reserve program.--The term `wetlands 
        reserve program' means the wetlands reserve program established 
        under subchapter C of chapter 1 of subtitle D of title XII of 
        the Food Security Act of 1985 (16 U.S.C. 3837 et seq.).
    ``(c) Establishment.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall establish a Biofuels 
Innovation Program in accordance with this section.
    ``(d) Proposals for BIP Project Areas.--
            ``(1) In general.--To be considered a BIP project area, an 
        eligible applicant shall submit to the Secretary, through the 
        Under Secretary for Rural Development, for approval a written 
        proposal that--
                    ``(A) identifies the eligible cropland that will be 
                a part of the proposed BIP project area; and
                    ``(B) indicates a strong likelihood that the 
                proposed BIP project area will generate a sufficient 
                quantity of biomass from eligible dedicated energy 
                crops and acres or other sources to supply an existing 
                biofuels facility, or to attract a new biofuels 
                facility to an area, to meet the purposes of the BIP.
            ``(2) Minimum requirements.--The written proposal for a 
        proposed BIP project area shall include, at a minimum--
                    ``(A) a description of the eligible cropland of 
                each eligible participant that will participate in the 
                proposed BIP project area, including--
                            ``(i) the quantity of eligible cropland of 
                        each eligible participant;
                            ``(ii) the physical location of the 
                        eligible cropland;
                            ``(iii) the 1 or more eligible dedicated 
                        energy crops that will be produced on the 
                        eligible cropland; and
                            ``(iv) the type of land use or crop that 
                        will be displaced by the eligible dedicated 
                        energy crop;
                    ``(B)(i) the name, if available, and type, 
                location, and description of the existing or proposed 
                biofuel facility that will use the eligible dedicated 
                energy crops to be produced in the proposed BIP project 
                area;
                    ``(ii) a letter of commitment to build a proposed 
                bioenergy facility that will use the eligible dedicated 
                energy crops intended to be produced in the proposed 
                BIP project area; or
                    ``(iii) a letter of commitment from an existing 
                bioenergy facility that the facility will use the 
                eligible dedicated energy crops intended to be produced 
                in the proposed BIP project area;
                    ``(C) a general analysis of the anticipated local 
                economic impact of the proposed BIP project; and
                    ``(D) any additional information needed to 
                determine the eligibility for, and ranking of, the 
                proposal, as determined by the Secretary.
            ``(3) Eligible applicants.--Applicants that are eligible to 
        submit a proposal for a BIP project area include--
                    ``(A) a collective group of owners and operators 
                producing or proposing to produce eligible dedicated 
                energy crops;
                    ``(B) an energy or agricultural company or 
                refinery;
                    ``(C) a Resource Conservation and Development 
                council; and
                    ``(D) any other entity that submits an acceptable 
                proposal for production and use of an eligible 
                dedicated energy crop that promotes the purposes of the 
                BIP.
            ``(4) Individual owners and operators.--An individual owner 
        or operator may not submit an individual proposal to 
        participate in the BIP.
    ``(e) Eligibility Criteria for BIP Project Areas.--
            ``(1) Establishment.--The Secretary shall establish a 
        system for ranking BIP project areas.
            ``(2) Criteria.--The Secretary shall rank proposed BIP 
        project areas on the basis of whether (in order of ranking)--
                    ``(A) there is a high probability that the eligible 
                dedicated energy crops proposed to be produced in the 
                proposed BIP project area will be used for the purposes 
                of the BIP;
                    ``(B) the proposed BIP project area includes 
                applications of eligible participants that provide 
                adequate potential feedstocks and suitable placement 
                with respect to existing or proposed bioenergy 
                facility;
                    ``(C) a significant potential for a positive 
                economic impact exists in the proposed BIP project 
                area;
                    ``(D) ownership of the biofuels facility in the 
                proposed BIP project area is available to producers and 
                local investors;
                    ``(E) the participation rate by beginning farmers 
                or ranchers or socially disadvantaged farmers or 
                ranchers;
                    ``(F) the proposed BIP project area includes 
                applications of eligible participants that have the 
                greatest potential to improve soil conservation and 
                water quality, and enhance wildlife habitat, when 
                compared to existing land uses; and
                    ``(G) the proposed eligible dedicated energy crop 
                harvesting practices on contract acreage maximize land 
                stewardship and habitat goals.
    ``(f) Business Planning and Assistance Grants.--
            ``(1) In general.--The Secretary, acting through the Under 
        Secretary for Rural Development, shall provide BIP business 
        planning and assistance grants to eligible applicants--
                    ``(A) for the purpose of--
                            ``(i) establishing BIP project areas; and
                            ``(ii) hiring consultants and technical and 
                        other relevant experts for the purpose of 
                        providing expert guidance and technical 
                        assistance to potential eligible participants; 
                        and
                    ``(B) in an amount not to exceed $30,000 in 
                matching funds, at a rate of $3 for every $2 provided 
                by the eligible applicant.
            ``(2) Inclusions.--Funds provided under this subsection may 
        be used to conduct feasibility analyses and planning for 
        inclusion of--
                    ``(A) agricultural waste biomass;
                    ``(B) sustainably-harvested agricultural and forest 
                residues; and
                    ``(C) biomass produced on land subject to a BIP 
                contract.
            ``(3) Limitation.--The total amount of funds used to carry 
        out this subsection shall not exceed $5,000,000.
    ``(g) Forest Biomass Planning Grants.--
            ``(1) In general.--The Secretary shall provide forest 
        biomass planning assistance grants to private landowners to 
        develop forest stewardship plans that involve sustainable 
        management of biomass from land of the private landowners that 
        will preserve diversity, soil, water, or wildlife values of the 
        land, while ensuring a steady supply of biomass material, 
        through--
                    ``(A) State forestry agencies, in consultation with 
                State wildlife agencies; and
                    ``(B) technical service provider arrangements with 
                third-party, independent forest sustainability 
                certification programs.
            ``(2) Limitation.--The total amount of funds used to carry 
        out this subsection shall not exceed $5,000,000.
    ``(h) Maximum Enrollment.--The Secretary shall enroll not more than 
5,000,000 acres of eligible cropland in the BIP at any 1 time.
    ``(i) Duration of Contract.--
            ``(1) In general.--Subject to paragraph (2), for purposes 
        of carrying out the BIP, the Secretary shall enter into 
        contracts of 10 years.
            ``(2) Early termination.--The Secretary may terminate a 
        contract early if the Secretary determines that--
                    ``(A) contract acreage will not be used to produce 
                an eligible dedicated energy crop (as determined not 
                earlier than 5 years after entering into a contract);
                    ``(B) a material breach of the contract has 
                occurred;
                    ``(C) the owner or operator has died; or
                    ``(D) continuation of the contract will cause undue 
                economic hardship.
    ``(j) Effect of Noncompliance Due to Circumstances Beyond Control 
of Producers.--The Secretary shall include in each contract entered 
into under this section a provision to ensure that a producer shall not 
be considered to be in violation of the contract for failure to comply 
with 1 or more requirements of the contract due to circumstances beyond 
the control of the producer, including any disaster-related condition, 
as determined by the Secretary.
    ``(k) Reserve Acreage.--
            ``(1) In general.--Subject to paragraphs (2) and (3), for 
        each year of participation in the BIP, at least 20 percent of 
        the contract acreage shall remain unharvested.
            ``(2) Rotation.--The location of the unharvested contract 
        acreage shall rotate from year-to-year.
            ``(3) Nonapplicability.--Paragraph (1) shall not apply--
                    ``(A) to land that is used to meet any BIP 
                requirement for diverse vegetated buffers under 
                subsection (l)(3)(D); and
                    ``(B) during any crop year in which a natural 
                disaster is declared by the Secretary for production 
                losses under section 321(a) of the Consolidated Farm 
                and Rural Development Act (7 U.S.C. 1961(a)) in the 
                county in which the enrolled land is located.
    ``(l) Contract Acreage Requirements.--
            ``(1) In general.--On approval of a BIP project area by the 
        Secretary, each eligible participant in the BIP project area 
        shall enter into a contract with the Secretary that is 
        consistent with the BIP.
            ``(2) Additional eligible participants.--The Secretary may 
        add eligible participants to a BIP project area after approval 
        of the BIP project area.
            ``(3) Conservation practices.--To ensure the sustainability 
        of farm operations and the protection of soil, air, water and 
        wildlife, to be eligible to participate in the BIP, an eligible 
        participant shall agree that--
                    ``(A) harvesting of eligible dedicated energy crops 
                shall not occur during the primary nesting or brood 
                rearing seasons of bird species nesting in the BIP 
                project area;
                    ``(B) stubble remnants for nonwoody crops shall be 
                of sufficient height to provide for wildlife cover and 
                soil protection, with minimum stubble remnants that are 
                not less than 10 inches in height, or another minimum 
                height as determined by--
                            ``(i) the Secretary of the Interior, acting 
                        through the United States Fish and Wildlife 
                        Service;
                            ``(ii) the Secretary;
                            ``(iii) the head of each applicable State 
                        fish and wildlife agency; and
                            ``(iv) the head of each applicable State 
                        conservation agency;
                    ``(C) soil conservation plans, designed and 
                approved by the Secretary, shall be implemented by the 
                eligible participant for preventing erosion on areas 
                planted and harvested for eligible dedicated energy 
                crops;
                    ``(D) diverse vegetated buffers, the width, 
                characteristics, and management of which shall be 
                determined by Secretary, shall be established and 
                maintained at all times surrounding all water resources 
                on contract acreage; and
                    ``(E) chemical inputs shall be minimized and 
                properly applied to ensure protection of soil, air, 
                water, and wildlife resources.
            ``(4) Purposes.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), to be eligible to participate in the 
                BIP, an eligible participant may use eligible dedicated 
                energy crops produced on contract acreage only for the 
                purposes described in subsection (a).
                    ``(B) Personal use.--During the period before the 
                commercial viability of a bioenergy facility, an 
                eligible participant may use eligible dedicated energy 
                crops produced by the eligible participant on contract 
                acreage for personal use.
                    ``(C) Seed production.--During the period before 
                the commercial viability of a bioenergy facility, an 
                eligible participant may harvest and sell seed produced 
                on contract acreage.
            ``(5) Requirements.--To be eligible to participate in the 
        BIP, during the term of the BIP contract, an eligible 
        participant shall--
                    ``(A) enter into a contract with the Secretary to 
                participate in the BIP and comply with the BIP 
                contract;
                    ``(B) comply with--
                            ``(i) the highly erodible land conservation 
                        requirements of subtitle B of title XII of the 
                        Food Security Act of 1985 (16 U.S.C. 3811 et 
                        seq.); and
                            ``(ii) the wetland conservation 
                        requirements of subtitle C of title XII of that 
                        Act (16 U.S.C. 3821 et seq.);
                    ``(C)(i) plant at least 40 acres, or any other 
                quantity of acres specified by the Secretary, of an 
                eligible dedicated energy crop not later than 1 year 
                after entering into a BIP contract or within an 
                alternate time period specified by the Secretary; and
                    ``(ii) produce an eligible dedicated energy crop on 
                the contract acreage throughout the term of the BIP 
                contract.
    ``(m) Additional Eligible Biomass.--
            ``(1) In general.--The Secretary may allow on land that is 
        enrolled in the conservation reserve program and located within 
        the BIP project area, in accordance with the soil-related, 
        water-related, and wildlife conservation purposes of the 
        conservation reserve program under contract terms governing 
        managed haying and grazing and the harvesting of biomass--
                    ``(A) in exchange for a reduction of an applicable 
                annual payment in an amount to be determined by the 
                Secretary;
                    ``(B) in accordance with an approved conservation 
                reserve program plan and applicable field office 
                technical guide standards;
                    ``(C) in a manner that ensures that biomass harvest 
                activities occur outside the official nesting and brood 
                rearing season for those plans;
                    ``(D) not more frequently than once every 3 years 
                after the date on which vegetative cover has been 
                established under the conservation reserve program;
                    ``(E) as a result of forestry maintenance 
                activities, such as pruning, thinning, and timber stand 
                improvement, on land that has been converted to 
                forestry use--
                            ``(i) in accordance with a conservation 
                        plan; and
                            ``(ii) in exchange for an applicable 
                        reduction in the annual rental payment, as 
                        determined by the Secretary; or
                    ``(F) as a result of a midcontract management 
                activity, such as mowing or clipping, that is conducted 
                according to an approved conservation plan as 
                determined by the Secretary.
    ``(n) Payments for Collecting, Harvesting, Storing, and 
Transporting Biomass Produced on BIP Contract Acreage, Agricultural 
Waste Biomass, and Sustainably-Harvested Agricultural and Forest 
Residues.--
            ``(1) In general.--Subject to paragraph (2), for the 2-year 
        period beginning on the date on which a biofuels facility 
        enters operation, the Secretary may provide matching payments 
        at a rate of $1 for every $1 per ton provided by the biofuels 
        facility, in an amount equal to not more than $45 per ton--
                    ``(A) to eligible participants for biomass produced 
                on BIP contract acreage in exchange for a reduction of 
                the annual payment issued under subsection (r)(3), as 
                determined by the Secretary;
                    ``(B) to any producer of agricultural waste biomass 
                or sustainably-harvested agricultural and forest 
                residues in the United States for the agricultural 
                waste or residue; and
                    ``(C) for residue collected as a result of the 
                removal of noxious and invasive species, in accordance 
                with methods approved by the Secretary.
            ``(2) Eligibility.--Only owners of forest land acting 
        pursuant to a forest stewardship plan shall be eligible to 
        receive payments under this subsection.
    ``(o) Duties of Secretary.--The Secretary shall--
            ``(1) establish and administer the BIP;
            ``(2) authorize establishment of BIP project areas for the 
        purposes of the BIP described in subsection (a);
            ``(3) develop procedures--
                    ``(A) to monitor the compliance of eligible 
                participants that have land enrolled in the BIP with 
                the requirements of the BIP;
                    ``(B) to measure the performance of the BIP; and
                    ``(C) to demonstrate whether the long-term eligible 
                dedicated energy crop production goals are being 
                achieved.
            ``(4) enter into a written contract with each eligible 
        participant that elects to participate in the BIP in a BIP 
        project area;
            ``(5) not enter into a contract under the BIP with an 
        individual owner or operator unless the land of the eligible 
        participant is physically located in an approved BIP project 
        area; and
            ``(6) provide all payments under the contract directly to 
        the eligible participant.
    ``(p) Relationship to Other Programs.--
            ``(1) Conservation security program.--Land enrolled in the 
        BIP may also be enrolled in the conservation security program 
        if all of the other requirements for participation in the 
        conservation security program are met.
            ``(2) Environmental credit programs.--The Secretary may 
        allow the sale of carbon credits, water quality credits, or 
        other environmental credits on land enrolled in BIP that do not 
        interfere with the purposes of the BIP.
    ``(q) Contracts.--A contract entered into between the Secretary and 
an eligible participant under the BIP shall include, at a minimum, 
terms that cover--
            ``(1) requirements for the eligible participant in carrying 
        out the contract, including requirements described in 
        subsections (i), (k), and (l);
            ``(2) a maintenance agreement to maintain the benefits of 
        the contract after the payment period, as determined by the 
        Secretary;
            ``(3) termination provisions;
            ``(4) payment terms and amounts to be provided on an annual 
        basis;
            ``(5) the sales or transfer of contract acreage;
            ``(6) the modification of the contract;
            ``(7) penalties in cases of a breach of the contract or 
        other situations;
            ``(8) the maximum quantity of contract acreage and an 
        estimated schedule for how much eligible cropland will be 
        enrolled each contract year; and
            ``(9) any additional terms the Secretary considers 
        appropriate.
    ``(r) Payments.--
            ``(1) In general.--The Secretary shall provide payments 
        directly to eligible participants who enter into contracts 
        described in subsection (q) in accordance with the subsection.
            ``(2) Cost-share payments.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall provide to an 
                eligible participant who enters into a BIP contract a 
                cost-share payment in an amount equal to 50 percent of 
                the costs of establishing an eligible dedicated energy 
                crop on the contract acreage covered by the contract.
                    ``(B) Exceptions.--
                            ``(i) Beginning and social disadvantaged 
                        farmers or ranchers.--The amount of cost-share 
                        payments made to beginning farmers or ranchers 
                        and socially disadvantaged farmers or ranchers 
                        shall be equal to 75 percent of the costs of 
                        establishing an eligible dedicated energy crop 
                        on the contract acreage.
                            ``(ii) Polyculture crop mixes.--The amount 
                        of cost-share payments made to any eligible 
                        participant who establishes a polyculture crop 
                        mix of at least 3 species of eligible dedicated 
                        energy crops shall be equal to 90 percent of 
                        the costs of establishing an eligible dedicated 
                        energy crop on the contract acreage.
                    ``(C) Eligible cost-share payments.--The costs for 
                which an eligible owner may receive a cost-share 
                payment under this paragraph include--
                            ``(i) the cost of seeds and stock; and
                            ``(ii) the cost of planting field buffer 
                        strips, unless the owner and operator is 
                        eligible for payments for those practices under 
                        the continuous conservation reserve program.
            ``(3) Rental payments.--
                    ``(A) In general.--The Secretary shall make annual 
                rental payments to an eligible participant who enters 
                into a BIP contract in an amount equal to the average 
                agricultural rental rate for land of similar 
                characteristics in the BIP project area during the 
                preceding 2-year period, as determined by the Secretary 
                using National Agricultural Statistic Services data or 
                another source (as determined by the Secretary).
                    ``(B) Period.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), an eligible participant shall 
                        receive rental payments for a period of not 
                        more than 5 years after entering into a BIP 
                        contract with the Secretary on contract 
                        acreage.
                            ``(ii) Disasters.--If the Secretary 
                        declares a natural disaster for production 
                        losses under section 321(a) of the Consolidated 
                        Farm and Rural Development Act (7 U.S.C. 
                        1961(a)) in the county in which contract 
                        acreage is located for a crop year that 
                        immediately follows the period described in 
                        clause (i), the Secretary may provide rental 
                        payments to eligible participants under this 
                        paragraph for that crop year for contract 
                        acreage that is located in the county.
                    ``(C) Reduction.--The Secretary shall reduce rental 
                payments under (A) by an amount determined to be 
                appropriate by the Secretary, if an eligible dedicated 
                energy crop is harvested in accordance with subsection 
                (l)(4).
            ``(4) Bonus payments.--The Secretary shall provide bonus 
        payments to an eligible participant who enters into a BIP 
        contract if--
                    ``(A) the production of an eligible dedicated 
                energy crop under the contract maximizes wildlife 
                diversity on the contract acreage; or
                    ``(B) the farming operation of the eligible 
                participant is modified to address the needs of 
                wildlife species identified in a State wildlife 
                management plan.
            ``(5) Timing of payments.--
                    ``(A) Cost-share payments.--The Secretary shall 
                provide cost-share payments to eligible participants 
                who enter into BIP contracts on the implementation of 
                the covered practices.
                    ``(B) Rental and bonus payments.--The Secretary 
                shall make rental and bonus payments to eligible 
                participants who enter into BIP contracts on an annual 
                basis, based on the number of contract acres covered by 
                BIP contracts.
            ``(6) Enrolled land ineligible for commodity payments.--
        Land enrolled in the BIP shall not be eligible to be used for 
        direct or counter-cyclical payments or any other payments under 
        title I or a successor title.
    ``(s) Eligibility.--
            ``(1) In general.--As a condition of entering into a 
        bioenergy crop transition assistance contract, the owners and 
        operators of a farm shall agree, as determined by the 
        Secretary, to make available to the Secretary, or to an 
        institution of higher education designated by the Secretary, 
        such information as the Secretary considers to be appropriate--
        --
                    ``(A) to promote the production of bioenergy crops 
                and the development of biorefinery technology; and
                    ``(B) to evaluate the bioenergy transition 
                assistance.
            ``(2) Best practices database.--Subject to section 1770 of 
        the Food Security Act of 1985 (7 U.S.C. 2276), the Secretary 
        shall make available to the public in a database format the 
        best practices information developed by the Secretary in 
        providing bioenergy assistance under this section.
    ``(t) Technical Assistance.--An eligible participant who enters 
into a BIP contract shall be eligible for conservation technical 
assistance for conservation planning and implementation through the 
Secretary or a qualified non-Federal entity that is approved by the 
Secretary.
    ``(u) Training.--The Secretary shall establish training programs 
for employees of the Cooperative Extension Service and other interested 
entities and individuals on how to develop viable proposals for 
participation in the BIP, including--
            ``(1) business plan development;
            ``(2) recruitment and organization of eligible 
        participants; and
            ``(3) the status of, and trends in, of the bioenergy 
        industry.
    ``(v) Funding.--Of the funds of the Commodity Credit Corporation, 
the Secretary shall use to carry out this section such sums as are 
necessary for each of fiscal years 2008 through 2012.''.

SEC. 2. RESEARCH, EXTENSION, AND EDUCATIONAL PROGRAMS ON BIOBASED 
              ENERGY TECHNOLOGIES AND PRODUCTS.

    Section 9011 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8109) is amended to read as follows:

``SEC. 9011. RESEARCH, EXTENSION, AND EDUCATIONAL PROGRAMS ON BIOBASED 
              ENERGY TECHNOLOGIES AND PRODUCTS.

    ``(a) Purposes.--The purposes of the programs established under 
this section are--
            ``(1) to enhance national energy security through the 
        development, distribution, and implementation of biobased 
        energy technologies;
            ``(2) to promote diversification in, and the environmental 
        sustainability of, agricultural production in the United States 
        through biobased energy and product technologies;
            ``(3) to promote economic diversification in rural areas of 
        the United States through biobased energy and product 
        technologies; and
            ``(4) to enhance the efficiency of bioenergy and biomass 
        research and development programs through improved coordination 
        and collaboration between the Department of Agriculture, the 
        Department of Energy, and the land-grant colleges and 
        universities.
    ``(b) Definition of Land-Grant Colleges and Universities.--In this 
section, the term `land-grant colleges and universities' means--
            ``(1) 1862 Institutions (as defined in section 2 of the 
        Agricultural Research, Extension, and Education Reform Act of 
        1998 (7 U.S.C. 7601));
            ``(2) 1890 Institutions (as defined in section 2 of that 
        Act) and West Virginia State College; and
            ``(3) 1994 Institutions (as defined in section 2 of that 
        Act).
    ``(c) Establishment.--To carry out the purposes described in 
subsection (a), the Secretary shall establish programs under which--
            ``(1) the Secretary shall provide grants to sun grant 
        centers specified in subsection (d); and
            ``(2) the sun grant centers shall use the grants in 
        accordance with this section.
    ``(d) Grants to Centers.--The Secretary shall use amounts made 
available for a fiscal year under subsection (j) to provide a grants in 
equal amounts to each of the following sun grant centers:
            ``(1) North-central center.--A north-central sun grant 
        center at South Dakota State University for the region composed 
        of the States of Illinois, Indiana, Iowa, Minnesota, Montana, 
        Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming.
            ``(2) Southeastern center.--A southeastern sun grant center 
        at the University of Tennessee at Knoxville for the region 
        composed of--
                    ``(A) the States of Alabama, Florida, Georgia, 
                Kentucky, Mississippi, North Carolina, South Carolina, 
                Tennessee, and Virginia;
                    ``(B) the Commonwealth of Puerto Rico; and
                    ``(C) the United States Virgin Islands.
            ``(3) South-central center.--A south-central sun grant 
        center at Oklahoma State University for the region composed of 
        the States of Arkansas, Colorado, Kansas, Louisiana, Missouri, 
        New Mexico, Oklahoma, and Texas.
            ``(4) Western center.--A western sun grant center at Oregon 
        State University for the region composed of--
                    ``(A) the States of Alaska, Arizona, California, 
                Hawaii, Idaho, Nevada, Oregon, Utah, and Washington; 
                and
                    ``(B) territories and possessions of the United 
                States (other than the territories referred to in 
                subparagraphs (B) and (C) of paragraph (2)).
            ``(5) Northeastern center.--A northeastern sun grant center 
        at Cornell University for the region composed of the States of 
        Connecticut, Delaware, Massachusetts, Maryland, Maine, 
        Michigan, New Hampshire, New Jersey, New York, Ohio, 
        Pennsylvania, Rhode Island, Vermont, and West Virginia.
    ``(e) Use of Funds.--
            ``(1) Centers of excellence.--Of the amount of funds that 
        are made available for a fiscal year to a sun grant center 
        under subsection (d), the center shall use not more than 25 
        percent of the amount for administration to support excellence 
        in science, engineering, and economics at the center to promote 
        the purposes described in subsection (a) through the State 
        agricultural experiment station, cooperative extension 
        services, and relevant educational programs of the university.
            ``(2) Grants to land-grant colleges and universities.--
                    ``(A) In general.--The sun grant center established 
                for a region shall use the funds that remain available 
                for a fiscal year after expenditures made under 
                paragraph (1) to provide competitive grants to land-
                grant colleges and universities in the region of the 
                sun grant center to conduct, consistent with the 
                purposes described in subsection (a), multi-
                institutional and multi-State--
                            ``(i) research, extension, and educational 
                        programs on technology development; and
                            ``(ii) integrated research, extension, and 
                        educational programs on technology 
                        implementation.
                    ``(B) Programs.--Of the amounts that are used to 
                provide grants for a fiscal year under subparagraph 
                (A), the center shall use--
                            ``(i) not less than 30 percent of the funds 
                        to carry out programs described in subparagraph 
                        (A)(i); and
                            ``(ii) not less than 30 percent of the 
                        funds to carry out programs described in 
                        subparagraph (A)(ii).
            ``(3) Indirect costs.--A sun grant center may not recover 
        the indirect costs of making grants under paragraph (2) to 
        other land-grant colleges and universities.
    ``(f) Plan.--
            ``(1) In general.--Subject to the availability of funds 
        under subsection (j), in cooperation with other land-grant 
        colleges and universities and private industry in accordance 
        with paragraph (2), the sun grant centers shall jointly develop 
        and submit to the Secretary, for approval, a plan for 
        addressing at the State and regional levels the bioenergy, 
        biomass, and gasification research priorities of the Department 
        of Agriculture and the Department of Energy for the provision 
        of grants under paragraphs (1) and (2) of subsection (e).
            ``(2) Gasification coordination.--
                    ``(A) In general.--In developing the plan under 
                paragraph (1) with respect to gasification research, 
                the sun grant centers identified in paragraphs (1) and 
                (2) of subsection (d) shall coordinate with land grant 
                colleges and universities in their respective regions 
                that have ongoing research activities with respect to 
                the research.
                    ``(B) Funding.--Funds made available under 
                subsection (d) to the sun grant center identified in 
                subsection (e)(2) shall be available to carry out 
                planning coordination under paragraph (1).
    ``(g) Grants to Other Land-Grant Colleges and Universities.--
            ``(1) Priority.--In making grants under subsection (e)(2), 
        a sun grant center shall give a higher priority to programs 
        that are consistent with the plan approved by the Secretary 
        under subsection (f).
            ``(2) Term.--The term of a grant provided by a sun grant 
        center under subsection (e)(2) shall not exceed 5 years.
    ``(h) Sun Grant Biobased Energy and Products Information Analysis 
Center.--The sun grant centers shall maintain a Sun Grant Biobased 
Energy and Products Information Analysis Center at the sun grant center 
specified in subsection (d)(1) to provide analysis and data management 
support to sun grant centers, including--
            ``(1) regional-scale geographic information systems and 
        associated decision tools for biomass resource assessment;
            ``(2) regional-scale experimental design for bioenergy 
        feedstock production;
            ``(3) bioenergy research and education accountability 
        systems; and
            ``(4) the Sun Grant BioWeb, an online educational biomass 
        encyclopedia.
    ``(i) Annual Reports.--Not later than 90 days after the end of a 
year for which a sun grant center receives a grant under subsection 
(d), the sun grant center shall submit to the Secretary a report that 
describes the policies, priorities, and operations of the program 
carried out by the center during the year, including a description of 
progress made in facilitating the priorities described in subsection 
(f).
    ``(j) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $100,000,000 for each of fiscal years 
        2008 through 2012.
            ``(2) Grant information analysis center.--Of amounts made 
        available under paragraph (1), not more than $5,000,000 for 
        each fiscal year shall be made available to carry out 
        subsection (h).''.
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