II 

110TH CONGRESS 

1ST SESSION S. 1242 

To amend the Federal Crop Insurance Act and the Farm Security and 

Rural Investment Act of 2002 to establish a biofuel pilot program to 

offer crop insurance to producers of experimental biofuel crops and 

a program to make loans and loan guarantees to producers of experimental biofuel crops. 

IN THE SENATE OF THE UNITED STATES 

APRIL 26, 2007 

Mr. TESTER introduced the following bill; which was read twice and referred 

to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To amend the Federal Crop Insurance Act and the Farm 

Security and Rural Investment Act of 2002 to establish 

a biofuel pilot program to offer crop insurance to producers of experimental biofuel crops and a program to 

make loans and loan guarantees to producers of experimental biofuel crops. 

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

3 SECTION 1. EXPERIMENTAL BIOFUEL PILOT PROGRAM. 

4 (a) IN GENERAL.—Section 523 of the Federal Crop 

5 Insurance Act (7 U.S.C. 1523) is amended by adding at 

6 the end the following: 


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1 ‘‘(f) EXPERIMENTAL BIOFUEL PILOT PROGRAM.— 

2 ‘‘(1) DEFINITIONS.—In this subsection: 

3 ‘‘(A) EXPERIMENTAL BIOFUEL CROP.— 

4 ‘‘(i) IN GENERAL.—The term ‘experi5 mental biofuel crop’ means a crop— 

6 ‘‘(I) that is produced for use 

7 as— 

8 ‘‘(aa) a nonpetroleum fuel 

9 source; or 

10 ‘‘(bb) nonpetroleum lubri11 cant; 

12 ‘‘(II) for which there is informa13 tion to demonstrate that there are 

14 sufficient safeguards to prevent the 

15 spread of the crop as a noxious weed, 

16 as determined by the Corporation; 

17 ‘‘(III) for which there is not an 

18 existing crop-specific policy or plan of 

19 insurance offered pursuant to this 

20 title; and 

21 ‘‘(IV) for which yield data exists 

22 for at least 1 crop year, as determined 

23 by the Corporation based on research 

24 or data, including research or data 

25 provided by— 


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1 ‘‘(aa) an institution of high2 er education (as defined in sec3 tion 101(a) of the Higher Edu4 cation Act of 1965 (20 U.S.C. 

5 1001(a))); or 

6 ‘‘(bb) a research facility ap7 proved by the Corporation. 

8 ‘‘(ii) INCLUSION.—The term ‘experi9 mental biofuel crop’ includes camelina. 

10 ‘‘(B) PRODUCER.—The term ‘producer’ 

11 means an owner, landlord, tenant, or share12 cropper on a farm that— 

13 ‘‘(i) produces, and has beneficial in14 terest in, an experimental biofuel crop; and 

15 ‘‘(ii) files a record of the farming op16 eration for the farm in the appropriate 

17 county office of the Farm Service Agency. 

18 ‘‘(2) ESTABLISHMENT.—The Corporation shall 

19 carry out a pilot program under which producers of 

20 experimental biofuel crops may elect to receive crop 

21 insurance in accordance with this subsection. 

22 ‘‘(3) EXPECTED MARKET PRICE.—In estab23 lishing the expected market price for each experi24 mental biofuel crop, the Corporation may consider 

25 the expected market price established or approved by 


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1 the Corporation for other reference crops, including 

2 similar oilseed and biofuel crops, as determined by 

3 the Corporation. 

4 ‘‘(4) ACTUAL PRODUCTION HISTORY.—In deter5 mining the actual production history for a producer 

6 of an experimental biofuel crop, the Corporation may 

7 consider the production history for the producer of, 

8 or may apply transitional yields based on, reference 

9 crops, including oilseed and biofuel crops with simi10 lar yields to the experimental biofuel crop, as deter11 mined by the Corporation. 

12 ‘‘(5) REQUIREMENT.—As a condition of receiv13 ing crop insurance under this subsection, producers 

14 shall— 

15 ‘‘(A) submit to the Corporation such yield 

16 and productivity information as the Corporation 

17 considers to be necessary to determine historical 

18 crop yields for the experimental biofuel crops; 

19 and 

20 ‘‘(B) agree that the Corporation may make 

21 the yield and productivity information available 

22 to the public. 

23 ‘‘(6) LIMITATIONS.— 


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1 ‘‘(A) ACREAGE.—The Corporation shall 

2 enroll in the pilot program under this sub3 section not more than— 

4 ‘‘(i) 250 acres per producer; 

5 ‘‘(ii) 100,000 acres per State; and 

6 ‘‘(iii) 500,000 total acres. 

7 ‘‘(B) EXPENDITURES.—The Corporation 

8 shall carry out the experimental biofuel pilot 

9 program under this subsection so that, to the 

10 maximum extent practicable, all costs associ11 ated with the pilot program do not exceed 

12 $15,000,000 for the period of fiscal years 2008 

13 through 2012. 

14 ‘‘(C) ADMINISTRATIVE COSTS.—The Cor15 poration may use not more than 10 percent of 

16 amounts made available under this or any other 

17 Act for administrative and operating expenses 

18 of the Risk Management Agency to pay admin19 istrative costs to assess whether certain biofuel 

20 crops are experimental biofuel crops for which 

21 crop insurance can be provided under this sub22 section.’’. 

23 (b) FUNDING.—Section 516(a)(2) of the Federal 

24 Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended by 

25 adding at the end the following: 


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1 ‘‘(E) Costs associated with the conduct of 

2 the experimental biofuel pilot program carried 

3 out under section 523(f), subject to the limita4 tions in paragraph (6) of that subsection.’’. 

5 SEC. 2. EXPERIMENTAL BIOFUEL PROGRAMS. 

6 Title IX of the Farm Security and Rural Investment 

7 Act (7 U.S.C. 8101 et seq.) is amended by adding at the 

8 end the following: 

9 ‘‘SEC. 9013. EXPERIMENTAL BIOFUEL PROGRAMS. 

10 ‘‘(a) DEFINITIONS.—In this section, the terms ‘ex11 perimental biofuel crop’ and ‘producer’ have the meanings 

12 given the terms in section 523(f)(1) of the Federal Crop 

13 Insurance Act (7 U.S.C. 1523(f)(1)). 

14 ‘‘(b) LOAN AND LOAN GUARANTEE PROGRAM.— 

15 ‘‘(1) IN GENERAL.—To improve and stabilize 

16 farm income, to promote a better balance between 

17 supply and demand for experimental biofuel crops, 

18 and to assist producers in the orderly marketing of 

19 crops, the Secretary shall establish a program under 

20 which the Secretary shall make loans and loan guar21 antees to producers of experimental biofuel crops. 

22 ‘‘(2) USE OF FUNDS.—Producers of experi23 mental biofuel crops that receive loans or loan guar24 antees under this subsection may use the funds— 


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1 ‘‘(A) to pay reasonable storage costs in2 curred by the producers, as determined by the 

3 Secretary; and 

4 ‘‘(B) to pay other appropriate costs, as de5 termined by the Secretary. 

6 ‘‘(c) GRANT PROGRAM.—The Secretary may make 

7 grants to research facilities and institutions of higher edu8 cation (as defined in section 101(a) of the Higher Edu9 cation Act of 1965 (20 U.S.C. 1001(a))— 

10 ‘‘(1) to study the use of experimental biofuel 

11 crops for animal feed; and 

12 ‘‘(2) to conduct research on specific harvesting 

13 and planting techniques for new experimental biofuel 

14 crops. 

15 ‘‘(d) FUNDING.— 

16 ‘‘(1) IN GENERAL.—Notwithstanding any other 

17 provision of law, on October 1, 2007, and on each 

18 October 1 thereafter through October 1, 2011, out 

19 of any funds in the Treasury not otherwise appro20 priated, the Secretary of the Treasury shall transfer 

21 to the Secretary— 

22 ‘‘(A) $5,000,000 to carry out subsection 

23 (b); and 

24 ‘‘(B) $5,000,000 to carry out subsection 

25 (c). 


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1 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec2 retary shall be entitled to receive, shall accept, and 

3 shall use to carry out this section the funds trans4 ferred under paragraph (1), without further appro5 priation. 

6 ‘‘(3) AVAILABILITY OF FUNDS.—Funds trans7 ferred under paragraph (1) shall remain available 

8 until expended.’’. 

Æ 


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