II 

110TH CONGRESS 

1ST SESSION S. 1884 

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

reauthorize and improve agricultural energy programs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 26, 2007 

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

to the Committee on Agriculture, Nutrition, and Forestry 

A BILL 

To amend the Farm Security and Rural Investment Act 

of 2002 to reauthorize and improve agricultural energy 

programs, and for other purposes. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Harvesting Energy Act of 2007’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—ENERGY 

Sec. 101. Federal procurement of biobased products. 

Sec. 102. Biorefinery development grants. 


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Sec. 103. Biodiesel fuel education program. 

Sec. 104. Energy audit and renewable energy development program. 

Sec. 105. Renewable energy systems and energy efficiency improvements. 

Sec. 106. Biomass research and development. 

Sec. 107. Cooperative research and extension projects. 

Sec. 108. Continuation of bioenergy program. 

Sec. 109. Research, extension, and educational programs on biobased technologies and products. 

Sec. 110. Research and demonstration grants for biochar production systems. 

Sec. 111. Strategic biofuel feedstock reserve. 

TITLE II—DIRECT PAYMENTS FOR VALUE-ADDED AND 

RENEWABLE ENERGY ENTERPRISES 

Sec. 201. Direct payments for value-added and renewable energy enterprises. 

TITLE III—CONSERVATION 

Sec. 301. Conservation security program. 

Sec. 302. Environmental quality incentives program. 

Sec. 303. Funding and administration. 

TITLE IV—CLEAN ENERGY PRACTICES 

Sec. 401. Flexible fuel vehicles. 

TITLE V—RESEARCH, DEVELOPMENT, AND EDUCATION 

Sec. 501. High-priority research and extension initiatives. 

Sec. 502. Research and development. 

Sec. 503. Renewable energy research, education, and educational program. 

Sec. 504. Renewable electricity and renewable fuels research and development. 

TITLE VI—FARM AND RURAL APPLICATIONS FOR PLUG-IN 

ELECTRIC DRIVE VEHICLES 

Sec. 601. Farm and rural applications for plug-in electric drive vehicles. 

1 TITLE I—ENERGY 

2 SEC. 101. FEDERAL PROCUREMENT OF BIOBASED PROD3 UCTS. 

4 Section 9002(k)(2)(A) of the Farm Security and 

5 Rural Investment Act of 2002 (7 U.S.C. 8102(k)(2)(A)) 

6 is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 


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1 SEC. 102. BIOREFINERY DEVELOPMENT GRANTS. 

2 Section 9003(h) of the Farm Security and Rural In3 vestment Act of 2002 (7 U.S.C. 8103(h)) is amended by 

4 striking ‘‘2007’’ and inserting ‘‘2012’’. 

5 SEC. 103. BIODIESEL FUEL EDUCATION PROGRAM. 

6 Section 9004(d) of the Farm Security and Rural In7 vestment Act of 2002 (7 U.S.C. 8104(d)) is amended by 

8 striking ‘‘2007’’ and inserting ‘‘2012’’. 

9 SEC. 104. ENERGY AUDIT AND RENEWABLE ENERGY DEVEL10 OPMENT PROGRAM. 

11 Section 9005(i) of the Farm Security and Rural In12 vestment Act of 2002 (7 U.S.C. 8105(i)) is amended by 

13 striking ‘‘2002 through 2007’’ and inserting ‘‘2008 

14 through 2012’’. 

15 SEC. 105. RENEWABLE ENERGY SYSTEMS AND ENERGY EF16 FICIENCY IMPROVEMENTS. 

17 (a) PYROLYSIS AND THERMOCHEMICAL CONVERSION

18 SYSTEMS.—Section 9006(a)(1) of the Farm Security and 

19 Rural Investment Act of 2002 (7 U.S.C. 8106(a)(1)) is 

20 amended by inserting ‘‘, including pyrolysis and 

21 thermochemical conversion systems that can provide fuel 

22 and energy and electricity for use on farm or for sale’’ 

23 after ‘‘systems’’. 

24 (b) FUNDING.—Section 9006 of the Farm Security 

25 and Rural Investment Act of 2002 (7 U.S.C. 8106) is 


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1 amended by striking subsection (f) and inserting the fol2 lowing: 

3 ‘‘(f) FUNDING.—Of the funds of the Commodity 

4 Credit Corporation, the Secretary shall make available to 

5 carry out this section $280,000,000 for each of fiscal 

6 years 2008 through 2012, of which not less than 

7 $30,000,000 shall be used to assist in the purchase of py8 rolysis and thermochemical conversion systems described 

9 in subsection (a)(1).’’. 

10 SEC. 106. BIOMASS RESEARCH AND DEVELOPMENT. 

11 (a) BIOMASS RESEARCH AND DEVELOPMENT INITIA12 TIVE.—Section 307 of the Biomass Research and Develop13 ment Act of 2000 (7 U.S.C. 8606) is amended— 

14 (1) in subsection (d)(1)— 

15 (A) in the matter preceding subparagraph 

16 (A), by inserting ‘‘diversified’’ after ‘‘develop17 ment of’’; 

18 (B) in subparagraph (A), by inserting 

19 ‘‘(including native grasses and short-rotation 

20 trees)’’ after ‘‘dedicated crops’’; and 

21 (C) by striking subparagraph (C) and in22 serting the following: 

23 ‘‘(C) the harvesting, handling, processing, 

24 transportation, and storage (including improve25 ment of process technologies for the harvesting, 


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1 processing, and preparation components) of 

2 feedstocks, including agricultural, forest, and 

3 waste products; and’’; 

4 (2) in subsection (e)(3), by inserting ‘‘, and to 

5 identify best practices to maximize water efficiency’’ 

6 after ‘‘biobased products’’; and 

7 (3) in subsection (g)— 

8 (A) in paragraph (2)— 

9 (i) in the matter preceding subpara10 graph (A), by striking ‘‘2010’’ and insert11 ing ‘‘2012’’; 

12 (ii) in subparagraph (A), by striking 

13 ‘‘20 percent’’ and inserting ‘‘15 percent’’; 

14 and 

15 (iii) in subparagraph (D), by striking 

16 ‘‘5 percent’’ and inserting ‘‘10 percent’’; 

17 and 

18 (B) in paragraph (3), by striking ‘‘2010’’ 

19 and inserting ‘‘2012’’. 

20 (b) FUNDING.—Section 310 of the Biomass Research 

21 and Development Act of 2000 (7 U.S.C. 8609) is amend22 ed— 

23 (1) in subsection (a), by striking paragraph (2) 

24 and inserting the following: 


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1 ‘‘(2) $200,000,000 for each of fiscal years 2008 

2 through 2012;’’; and 

3 (2) in subsection (b), by striking ‘‘2015’’ and 

4 inserting ‘‘2012’’. 

5 SEC. 107. COOPERATIVE RESEARCH AND EXTENSION 

6 PROJECTS. 

7 Section 221 of the Agricultural Risk Protection Act 

8 of 2000 (7 U.S.C. 6711) is amended by striking ‘‘2007’’ 

9 each place it appears and inserting ‘‘2012’’. 

10 SEC. 108. CONTINUATION OF BIOENERGY PROGRAM. 

11 (a) FEEDSTOCK RESIDUE MANAGEMENT PRO12 GRAM.—Section 9010 of the Farm Security and Rural In13 vestment Act of 2002 (7 U.S.C. 8108) is amended— 

14 (1) in subsection (b), by striking ‘‘subsection 

15 (c)’’ each place it appears in paragraphs (4) and (6) 

16 and inserting ‘‘subsection (e)’’; 

17 (2) by redesignating subsection (c) as sub18 section (e); and 

19 (3) by inserting after subsection (b) the fol20 lowing: 

21 ‘‘(c) FEEDSTOCK RESIDUE MANAGEMENT PRO22 GRAM.— 

23 ‘‘(1) IN GENERAL.—As part of the program 

24 carried out under this section, the Secretary shall es25 tablish a feedstock residue management program 


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1 under which the Secretary shall provide incentives to 

2 agricultural producers (including forest owners) to 

3 properly collect, store, and transport cellulosic feed4 stocks for biofuel production. 

5 ‘‘(2) INCENTIVES.—In providing incentives 

6 under this subsection, the Secretary shall ensure, to 

7 the maximum extent practicable, that water quality, 

8 soil quality, wildlife habitat, and air quality are pro9 tected and enhanced. 

10 ‘‘(d) TRANSITION ASSISTANCE PROGRAM.— 

11 ‘‘(1) IN GENERAL.—As part of the program 

12 carried out under this section, the Secretary shall es13 tablish a transition assistance program for biomass 

14 energy feedstocks under which the Secretary shall 

15 provide funds to cellulosic biorefineries for use in 

16 making transition payments to agricultural pro17 ducers, forest landowners, and ranchers for the con18 version of land to energy crop production in prepara19 tion for bioenergy operations. 

20 ‘‘(2) REQUIREMENTS.—In carrying out the pro21 gram under this subsection, the Secretary shall— 

22 ‘‘(A) require an agricultural producer, for23 est landowner, or rancher participating in the 

24 program to establish, on land of the agricul25 tural producer, forest landowner, or rancher, 1 


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1 or more crops of perennial plant material (such 

2 as switch-grass or short-rotation trees); 

3 ‘‘(B) require that, with respect to a land 

4 conversion described in paragraph (1), an agri5 cultural producer, forest landowner, or rancher 

6 shall ensure the protection and enhancement of 

7 soil quality and the prevention of soil erosion, 

8 nutrient leaching, and run off, particularly if 

9 the converted land is withdrawn from or other10 wise was previously enrolled in the conservation 

11 reserve program established under subchapter 

12 B of chapter 1 of subtitle D of title XII of the 

13 Food Security Act of 1985 (16 U.S.C. 3831 et 

14 seq.) or other reserve program or is marginal, 

15 sensitive, or eroded land; and 

16 ‘‘(C) provide to the agricultural producer, 

17 forest landowner, or rancher an annual pay18 ment during the period required to establish the 

19 crops on the land of the agricultural producer, 

20 forest landowner, or rancher.’’. 

21 (b) FUNDING.—Subsection (e) of section 9010 of the 

22 Farm Security and Rural Investment Act of 2002 (7 

23 U.S.C. 8108) (as redesignated by subsection (a)(2)) is 

24 amended— 


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1 (1) in paragraph (1), by striking ‘‘and’’ at the 

2 end; 

3 (2) in paragraph (2), by striking the period at 

4 the end and inserting a semicolon; and 

5 (3) by adding at the end the following: 

6 ‘‘(3) $158,000,000 for fiscal year 2008, of 

7 which there shall be used to carry out subsection (c) 

8 not less than $8,000,000; and 

9 ‘‘(4) $325,000,000 for each of fiscal years 2009 

10 through 2012, of which— 

11 ‘‘(A) there shall be used to carry out sub12 section (c) not less than— 

13 ‘‘(i) $16,000,000 for fiscal year 2009; 

14 ‘‘(ii) $32,000,000 for fiscal year 2010; 

15 ‘‘(iii) $44,000,000 for fiscal year 

16 2011; and 

17 ‘‘(iv) $75,000,000 for fiscal year 

18 2012; and 

19 ‘‘(B) there shall be used to carry out sub20 section (d) not more than $150,000,000 for 

21 each fiscal year.’’. 


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1 SEC. 109. RESEARCH, EXTENSION, AND EDUCATIONAL PRO2 GRAMS ON BIOBASED TECHNOLOGIES AND 

3 PRODUCTS. 

4 (a) DATABASE.—Section 9011(e)(2) of the Farm Se5 curity and Rural Investment Act of 2002 (7 U.S.C. 

6 8109(e)(2)) is amended by adding at the end the fol7 lowing: 

8 ‘‘(C) DATABASE.—To be eligible to receive 

9 a grant under this paragraph, not later than 1 

10 year after the date of enactment of this sub11 paragraph, each land-grant college or university 

12 that receives a grant shall make available to the 

13 public all information on biomass and other re14 newable energy resources, in a centralized, 

15 interactive database or wiki created and main16 tained by the Secretary.’’. 

17 (b) PRIORITIES.—Section 9011(f)(1) of the Farm Se18 curity and Rural Investment Act of 2002 (7 U.S.C. 

19 8109(f)(1)) is amended by striking the period at the end 

20 and inserting ‘‘, including— 

21 ‘‘(A) the development of regional-scale ag22 ronomic production systems for energy feed23 stocks; 

24 ‘‘(B) regional-scale analysis of natural re25 source management and environmental impacts 

26 of residue removal; 


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1 ‘‘(C) development of economically useful 

2 biobased byproducts; and 

3 ‘‘(D) the facilitation of economic diver4 sification in rural communities.’’. 

5 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

6 9011(j)(1)(C) of the Farm Security and Rural Investment 

7 Act of 2002 (7 U.S.C. 8109(j)(1)(C)) is amended by strik8 ing ‘‘2010’’ and inserting ‘‘2015’’. 

9 SEC. 110. RESEARCH AND DEMONSTRATION GRANTS FOR 

10 BIOCHAR PRODUCTION SYSTEMS. 

11 Title IX of the Farm Security and Rural Investment 

12 Act of 2002 (7 U.S.C. 8101 et seq.) is amended by adding 

13 at the end the following: 

14 ‘‘SEC. 9012. RESEARCH AND DEMONSTRATION GRANTS FOR 

15 BIOCHAR PRODUCTION SYSTEMS. 

16 ‘‘(a) DEFINITION OF BIOCHAR.—In this section, the 

17 term ‘biochar’ means charcoal or biomass-derived black 

18 carbon that is added to soil to improve soil fertility, nutri19 ent retention, and carbon sequestration. 

20 ‘‘(b) GRANTS.—The Secretary shall award competi21 tive grants to eligible entities to assist in paying the cost 

22 of research and development to develop and commercialize 

23 biochar production systems on multiple scales (including 

24 on a single farm, local community, and cooperative scale), 

25 with a goal of creating production systems that maximize 


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1 the coproduction of renewable energy and biochar for use 

2 as a soil enhancement. 

3 ‘‘(c) ELIGIBLE ENTITIES.—To be eligible to receive 

4 a grant under this section, an entity shall be an eligible 

5 entity described in section 9003(d). 

6 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

7 is authorized to be appropriated to carry out this section 

8 $10,000,000 for each of fiscal years 2008 through 2012.’’. 

9 SEC. 111. STRATEGIC BIOFUEL FEEDSTOCK RESERVE. 

10 Title IX of the Farm Security and Rural Investment 

11 Act of 2002 (7 U.S.C. 8101 et seq.) (as amended by sec12 tion 110) is amended by adding at the end the following: 

13 ‘‘SEC. 9013. STRATEGIC BIOFUEL FEEDSTOCK RESERVE. 

14 ‘‘(a) DEFINITIONS.—In this section: 

15 ‘‘(1) ELIGIBLE COMMODITY.—The term ‘eligible 

16 commodity’ means a biofuel feedstock that is pro17 duced in the United States. 

18 ‘‘(2) FEEDSTOCK RESERVE.—The term ‘feed19 stock reserve’ means the sum of all eligible commod20 ities stored by producers in accordance with sub21 section (b)(2). 

22 ‘‘(3) PRODUCER.—The term ‘producer’ has the 

23 meaning given the term in section 1001. 


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1 ‘‘(b) PROGRAM.—The Secretary shall carry out a 

2 strategic biofuel feedstock reserve program under which 

3 the Secretary shall— 

4 ‘‘(1) purchase eligible commodities from pro5 ducers; and 

6 ‘‘(2) store the eligible commodities with the pro7 ducers. 

8 ‘‘(c) PURCHASES.— 

9 ‘‘(1) IN GENERAL.—The Secretary shall pur10 chase an eligible commodity at commercial rates in 

11 order to establish, maintain, or enhance the feed12 stock reserve in any case in which, as determined by 

13 the Secretary— 

14 ‘‘(A) the eligible commodity is in abundant 

15 supply; 

16 ‘‘(B) there is need for adequate carryover 

17 stocks to ensure a reliable supply of the eligible 

18 commodities to meet renewable energy de19 mands; 

20 ‘‘(C) the average price of the eligible com21 modity in a county is less than 100 percent of 

22 the applicable loan rate for a nonrecourse mar23 keting assistance loan made available under 

24 subtitle B of title I; and 


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1 ‘‘(D) the purchase is necessary to ensure 

2 an adequate supply of a renewable fuel in the 

3 marketplace. 

4 ‘‘(2) LIMITATION.—Purchases by the Secretary 

5 under paragraph (1) shall be limited to— 

6 ‘‘(A) the type and quantity of an eligible 

7 commodity necessary to provide for not more 

8 than 1 year of estimated use for renewable en9 ergy purposes; and 

10 ‘‘(B) quantities of an eligible commodity 

11 for research and development of renewable 

12 fuels. 

13 ‘‘(d) SALE OF STOCKS.—An eligible commodity shall 

14 not be sold from the feedstock reserve unless— 

15 ‘‘(1) the average market price of the eligible 

16 commodity in the United States is not less than the 

17 applicable loan rate for a nonrecourse marketing as18 sistance loan made available under subtitle B of title 

19 I; and 

20 ‘‘(2) the eligible commodity will be used to 

21 produce renewable energy. 

22 ‘‘(e) STORAGE PAYMENTS.—Payments made by the 

23 Secretary for the storage of an eligible commodity shall 

24 reflect local commercial storage rates. 


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1 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated such sums as are nec3 essary to carry out this section for each of fiscal years 

4 2008 through 2012.’’. 

5 TITLE II—DIRECT PAYMENTS 

6 FOR VALUE-ADDED AND RE7 NEWABLE ENERGY ENTER8 PRISES 

9 SEC. 201. DIRECT PAYMENTS FOR VALUE-ADDED AND RE10 NEWABLE ENERGY ENTERPRISES. 

11 Title IX of the Farm Security and Rural Investment 

12 Act of 2002 (7 U.S.C. 8101 et seq.) (as amended by sec13 tion 111) is amended by adding at the end the following: 

14 ‘‘SEC. 9014. DIRECT PAYMENTS FOR VALUE-ADDED AND RE15 NEWABLE ENERGY ENTERPRISES. 

16 ‘‘(a) DEFINITIONS.—In this section: 

17 ‘‘(1) PRODUCER.—The term ‘producer’ has the 

18 meaning given the term in section 1001. 

19 ‘‘(2) QUALIFIED VALUE-ADDED ENTERPRISE.— 

20 The term ‘qualified value-added enterprise’ means a 

21 value-added or renewable energy business enterprise 

22 that— 

23 ‘‘(A)(i) adds value to an agricultural prod24 uct (including ethanol, methanol, electrical 

25 power, biodiesel, wind, building materials, lubriVerDate Aug 31 2005 22:32 Jul 27, 2007 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S1884.IS S1884

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1 cants, soil amendments such as biochar, bio-oils 

2 or biogases, and adhesives); or 

3 ‘‘(ii) improves the production of an agricul4 tural commodity through efficiency gains or en5 vironmental benefits; 

6 ‘‘(B) is located in a rural area (as defined 

7 in section 343(a) of the Consolidated Farm and 

8 Rural Development Act (7 U.S.C. 1991(a)); 

9 and 

10 ‘‘(C) is certified by the Secretary. 

11 ‘‘(b) PROGRAM.—The Secretary shall carry out a pro12 gram under which the Secretary shall provide direct pay13 ments to producers to match the equity investment of the 

14 producers in qualified value-added enterprises. 

15 ‘‘(c) AMOUNT.—A direct payment described in sub16 section (b) shall not exceed $10,000. 

17 ‘‘(d) USE OF FUNDS.—A producer may use funds re18 ceived under this section only to invest in qualified value19 added enterprises located in the same region as the pro20 ducer. 

21 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated such sums as are nec23 essary to carry out this section for each of fiscal years 

24 2008 through 2012.’’. 


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1 TITLE III—CONSERVATION 

2 SEC. 301. CONSERVATION SECURITY PROGRAM. 

3 (a) IN GENERAL.—Section 1238A(a) of the Food Se4 curity Act of 1985 (16 U.S.C. 3838a(a)) is amended by 

5 striking ‘‘2011’’ and inserting ‘‘2012’’. 

6 (b) TECHNICAL ASSISTANCE.—Section 1238C(g) of 

7 the Food Security Act of 1985 (16 U.S.C. 3838c(g)) is 

8 amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

9 (c) BIOMASS FEEDSTOCK PILOT PROGRAM.—Sub10 chapter A of chapter 2 of subtitle D of title XII of the 

11 Food Security Act of 1985 (16 U.S.C. 3838 et seq.) is 

12 amended by adding at the end the following: 

13 ‘‘SEC. 1238D. BIOMASS FEEDSTOCK PILOT PROGRAM. 

14 ‘‘(a) DEFINITIONS.—In this section: 

15 ‘‘(1) BIOMASS.— 

16 ‘‘(A) IN GENERAL.—In this section, the 

17 term ‘biomass’ means any biological matter that 

18 is available on a renewable or recurring basis. 

19 ‘‘(B) INCLUSIONS.—The term ‘biomass’ in20 cludes— 

21 ‘‘(i) agricultural crops and trees; 

22 ‘‘(ii) wood and wood wastes and resi23 dues; 

24 ‘‘(iii) plants (including aquatic 

25 plants); 


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1 ‘‘(iv) grasses; 

2 ‘‘(v) residue; 

3 ‘‘(vi) fibers; and 

4 ‘‘(vii) animal waste, municipal waste, 

5 and other waste material. 

6 ‘‘(2) LOCAL AREA.—The term ‘local area’ 

7 means an area that is physically located within a 75- 

8 mile radius of an existing or proposed biorefinery. 

9 ‘‘(b) PROGRAM.—The Secretary shall carry out a 

10 pilot program under which the Secretary shall offer to 

11 enter into conservation security contracts with eligible pro12 ducers (including agricultural producers, ranchers, and 

13 forest landowners) in a local area that produce biomass 

14 feedstocks using methods that enhance soil, water, and air 

15 quality and conserve natural resources.’’. 

16 (d) BIOCHAR DEMONSTRATION PROJECTS.—Sub17 chapter A of chapter 2 of subtitle D of title XII of the 

18 Food Security Act of 1985 (16 U.S.C. 3838 et seq.) (as 

19 amended by subsection (c)) is amended by adding at the 

20 end the following: 

21 ‘‘SEC. 1238E. BIOCHAR DEMONSTRATION PROJECTS. 

22 ‘‘(a) DEFINITION OF BIOCHAR.—In this section, the 

23 term ‘biochar’ means charcoal or biomass-derived black 

24 carbon that is added to soil to improve soil fertility, nutri25 ent retention, and soil carbon sequestration. 


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1 ‘‘(b) DEMONSTRATION PROJECTS.—In carrying out 

2 the conservation security program under this subchapter, 

3 the Secretary shall carry out demonstration projects that 

4 demonstrate, on a farm-scale and local agricultural coop5 erative-scale, the advantages of using biochar production 

6 systems (including pyrolysis and thermocombustion sys7 tems) to improve renewable energy production and protect 

8 and enhance soil quality. 

9 ‘‘(c) USE OF BIOCHAR TO GENERATE AGRICUL10 TURAL CREDITS FOR CARBON TRADING.— 

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

12 out demonstration projects under this section in a 

13 manner that demonstrates the manner in which 

14 biochar may be used to generate agricultural credits 

15 for carbon trading in any greenhouse gas emissions 

16 reduction program. 

17 ‘‘(2) SOURCES OF GREENHOUSE GAS EMISSIONS

18 REDUCTIONS.—In carrying out this subsection, the 

19 Secretary shall, to the maximum extent practicable, 

20 demonstrate that greenhouse gas emissions reduc21 tions can be achieved from— 

22 ‘‘(A) fossil fuel displacement through on23 farm production of bioenergy using a biochar 

24 production system; 


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1 ‘‘(B) the building of stable soil sinks, using 

2 biochar; and 

3 ‘‘(C) reduced nitrous oxide emissions asso4 ciated with— 

5 ‘‘(i) the impact of biochar in soils; and 

6 ‘‘(ii) reductions in nitrogen fertilizer 

7 requirements due to greater fertilizer effi8 ciencies with biochar applications. 

9 ‘‘(3) HIGH-PRIORITY RESEARCH AND DEM10 ONSTRATION.—In carrying out this subsection, the 

11 Secretary shall, to the maximum extent practicable, 

12 promote high-priority research and demonstration 

13 by— 

14 ‘‘(A) in the case of biochar production and 

15 commercialization— 

16 ‘‘(i) producing a consistent, high-qual17 ity biochar product and an analysis of the 

18 properties, chemical structure, and per19 formance of biochar in different soil types; 

20 ‘‘(ii) optimizing coproduction of 

21 biochar and bioenergy; and 

22 ‘‘(iii) scaling up of biochar production; 

23 ‘‘(B) in the case of biochar behavior in the 

24 environment, analyzing— 


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1 ‘‘(i) biochar performance by soil type, 

2 feedstock, and production method; and 

3 ‘‘(ii) application rates and effects in 

4 soils; and 

5 ‘‘(C) in the case of economic and life-cycle 

6 issues, analyzing— 

7 ‘‘(i) the full production costs versus 

8 the economic benefits of biochar; 

9 ‘‘(ii) the impact of biochar on green10 house gas emissions, including the per11 formance of biochar in carbon markets; 

12 ‘‘(iii) the availability of feedstocks or 

13 competition of biochar with other biofuels; 

14 ‘‘(iv) the impact of biomass removal 

15 on soil quality and erosion; 

16 ‘‘(v) the potential to reduce fertilizer 

17 use, greenhouse gas emissions, nutrient 

18 leaching, and run-off; and 

19 ‘‘(vi) the potential to reduce water 

20 pollution from feedlot runoff by capturing 

21 ammonia as a valuable addition to agricul22 tural charcoal. 

23 ‘‘(d) FUNDING.—Of the funds that are made avail24 able to carry out this subchapter, the Secretary shall use 


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1 to carry out this section not less than $20,000,000 for 

2 each of fiscal years 2008 through 2012.’’. 

3 SEC. 302. ENVIRONMENTAL QUALITY INCENTIVES PRO4 GRAM. 

5 (a) IN GENERAL.—Section 1240B(a)(1) of the Food 

6 Security Act of 1985 (16 U.S.C. 3839aa–2(a)(1)) is 

7 amended by striking ‘‘2010’’ and inserting ‘‘2012’’. 

8 (b) ALLOCATION OF FUNDING.—Section 1240B(g) of 

9 the Food Security Act of 1985 (16 U.S.C. 3839aa–2(g)) 

10 is amended— 

11 (1) by striking ‘‘For each of fiscal years 2002 

12 through 2007’’ and inserting the following: 

13 ‘‘(1) LIVESTOCK PRODUCTION.—For each of 

14 fiscal years 2002 through 2012’’; and 

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

16 ‘‘(2) BIOENERGY PRODUCTS.—For each of fis17 cal years 2008 through 2012, the Secretary may use 

18 funds made available to carry out this chapter to fa19 cilitate practices relating to the production of bio20 energy products, including by assisting producers— 

21 ‘‘(A) to install biodigesters, biogasifiers, or 

22 biochar production units; 

23 ‘‘(B) to conserve water; 

24 ‘‘(C) to control erosion; 

25 ‘‘(D) to improve wildlife habitat; and 


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1 ‘‘(E) to enhance soil quality.’’. 

2 (c) GROUND AND SURFACE WATER CONSERVA3 TION.—Section 1240I(c)(1)(C)) of the Food Security Act 

4 of 1985 (16 U.S.C. 3839aa–9(c)(1)(C)) is amended by 

5 striking ‘‘2007’’ and inserting ‘‘2012’’. 

6 SEC. 303. FUNDING AND ADMINISTRATION. 

7 Section 1241(a) of the Food Security Act of 1985 

8 (16 U.S.C. 3841(a)) is amended in the matter preceding 

9 paragraph (1) by striking ‘‘2007’’ and inserting ‘‘2012’’. 

10 TITLE IV—CLEAN ENERGY 

11 PRACTICES 

12 SEC. 401. FLEXIBLE FUEL VEHICLES. 

13 Title IX of the Farm Security and Rural Investment 

14 Act of 2002 (7 U.S.C. 8101 et seq.) (as amended by sec15 tion 201) is amended by adding at the end the following: 

16 ‘‘SEC. 9015. FLEXIBLE FUEL VEHICLES. 

17 ‘‘(a) DEFINITIONS.—In this section: 

18 ‘‘(1) FLEXIBLE FUEL VEHICLE.—The term 

19 ‘flexible fuel vehicle’ means— 

20 ‘‘(A) a GEM flex fuel vehicle; and 

21 ‘‘(B) a vehicle warranted by the manufac22 turer of the vehicle to operate on biodiesel. 

23 ‘‘(2) GEM FLEX FUEL VEHICLE.— 

24 ‘‘(A) IN GENERAL.—The term ‘GEM flex 

25 fuel vehicle’ means a motor vehicle warranted 


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1 by the manufacturer of the vehicle to operate 

2 on gasoline, E85, and M85. 

3 ‘‘(B) RELATED DEFINITIONS.—In sub4 paragraph (A): 

5 ‘‘(i) E85.—The term ‘E85’ means a 

6 fuel blend containing 85 percent ethanol 

7 and 15 percent gasoline, by volume. 

8 ‘‘(ii) M85.—The term ‘M85’ means a 

9 fuel blend containing 85 percent methanol 

10 and 15 percent gasoline, by volume. 

11 ‘‘(b) USE OF FLEXIBLE FUEL VEHICLES.—Begin12 ning not later than 180 days after the date of enactment 

13 of this section, the Secretary shall ensure that all vehicles 

14 purchased or leased by the Department of Agriculture are 

15 flexible fuel vehicles that, to the maximum extent prac16 ticable, use biobased fuels.’’. 

17 TITLE V—RESEARCH, DEVELOP18 MENT, AND EDUCATION 

19 SEC. 501. HIGH-PRIORITY RESEARCH AND EXTENSION INI20 TIATIVES. 

21 (a) HIGH-PRIORITY RESEARCH AND EXTENSION

22 AREAS.—Section 1672(e) of the Food, Agriculture, Con23 servation, and Trade Act of 1990 (7 U.S.C. 5925(e)) is 

24 amended by adding at the end the following: 


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1 ‘‘(46) BIOCHAR RESEARCH.—Research grants 

2 may be made under this section to promote— 

3 ‘‘(A) biochar technology for adding char4 coal or biomass-derived black carbon to soil to 

5 improve soil fertility, nutrient retention, and 

6 carbon sequestration; and 

7 ‘‘(B) the movement of the technology from 

8 a pre-commercial to a fully-commercialized 

9 state.’’. 

10 (b) FUNDING.—Section 1672(h) of the Food, Agri11 culture, Conservation, and Trade Act of 1990 (7 U.S.C. 

12 5925(h)) is amended by striking ‘‘1999 through 2007’’ 

13 and inserting ‘‘2008 through 2012, of which not less 

14 $20,000,000 shall be used each fiscal year to make grants 

15 described in subsection (e)(46)’’. 

16 SEC. 502. RESEARCH AND DEVELOPMENT. 

17 Title IX of the Farm Security and Rural Investment 

18 Act of 2002 (7 U.S.C. 8101 et seq.) (as amended by sec19 tion 401) is amended by adding at the end the following: 

20 ‘‘SEC. 9016. RESEARCH AND DEVELOPMENT OF RENEWABLE 

21 ENERGY. 

22 ‘‘(a) IN GENERAL.—The Secretary, in conjunction 

23 with the Colorado Renewable Energy Collaboratory, shall 

24 carry out a research and development program relating 

25 to renewable energy— 


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1 ‘‘(1) to conduct research on and develop high2 quality energy crops that— 

3 ‘‘(A) have high energy production values; 

4 ‘‘(B) are cost efficient for producers and 

5 refiners; 

6 ‘‘(C) are well suited to high yields with 

7 minimal inputs in arid and semiarid regions; 

8 and 

9 ‘‘(D) are regionally appropriate; 

10 ‘‘(2) to conduct research on and develop bio11 refining and biofuels through multidisciplinary re12 search, including research relating to— 

13 ‘‘(A) biochemical engineering; 

14 ‘‘(B) process engineering; 

15 ‘‘(C) thermochemical engineering; 

16 ‘‘(D) product engineering; and 

17 ‘‘(E) systems engineering; 

18 ‘‘(3) to develop cost-effective methods for the 

19 harvesting, handling, transport, and storage of cel20 lulosic biomass feedstocks; 

21 ‘‘(4) to conduct research on and develop fer22 tilizers from biobased sources other than hydro23 carbon fuels; 

24 ‘‘(5) to develop energy- and water-efficient irri25 gation systems; 


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1 ‘‘(6) to research and develop water-efficient 

2 biofuel production technologies; 

3 ‘‘(7) to research and develop additional 

4 biobased products; 

5 ‘‘(8) in cooperation with the Department of En6 ergy and the Department of Defense, to develop 

7 storage technologies for wind- and solar-generated 

8 power for small-scale and utility-scale generation fa9 cilities; and 

10 ‘‘(9) in cooperation with the Department of En11 ergy, to research fuel cell technologies for use in 

12 farm, ranch, and rural applications. 

13 ‘‘(b) FUNDING.— 

14 ‘‘(1) MANDATORY FUNDS.— 

15 ‘‘(A) TRANSFER.—In addition to any other 

16 funds made available under paragraph (2), be17 ginning on October 1, 2007, and on each Octo18 ber 1 thereafter through October 1, 2011, out 

19 of any funds in the Treasury not otherwise ap20 propriated, the Secretary of the Treasury shall 

21 transfer to the Secretary, $5,000,000 to carry 

22 out this section, to remain available until ex23 pended. 

24 ‘‘(B) RECEIPT AND ACCEPTANCE.—The 

25 Secretary shall be entitled to receive, shall acVerDate Aug 31 2005 22:32 Jul 27, 2007 Jkt 059200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S1884.IS S1884

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1 cept, and shall use to carry out this section the 

2 funds transferred under subparagraph (A), 

3 without further appropriation. 

4 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In 

5 addition to any other funds made available under 

6 paragraph (1), there are authorized to be appro7 priated— 

8 ‘‘(A) $110,000,000 to the Under Secretary 

9 for Research, Education, and Economics, acting 

10 through the Agricultural Research Service, for 

11 cellulosic biofuel research for each of fiscal 

12 years 2008 through 2012; 

13 ‘‘(B) $110,000,000 to the Secretary and 

14 the Secretary of Energy for the development of 

15 smaller-scale biorefineries and biofuel plants for 

16 each of fiscal years 2008 through 2012; and 

17 ‘‘(C) such sums as are necessary to carry 

18 out this section.’’. 

19 SEC. 503. RENEWABLE ENERGY RESEARCH, EDUCATION, 

20 AND EDUCATIONAL PROGRAM. 

21 Title IX of the Farm Security and Rural Investment 

22 Act of 2002 (7 U.S.C. 8101 et seq.) (as amended by sec23 tion 502(a)) is amended by adding at the end the fol24 lowing: 


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1 ‘‘SEC. 9017. RENEWABLE ENERGY RESEARCH, EDUCATION, 

2 AND EDUCATIONAL PROGRAM. 

3 ‘‘(a) IN GENERAL.—The Secretary, in cooperation 

4 with the Administrator of the Environmental Protection 

5 Agency and the Secretary of Energy, shall establish a pro6 gram under which the Secretary shall— 

7 ‘‘(1) establish a standardized protocol for mar8 ket-based trading of greenhouse gas emissions re9 ductions from soil carbon sequestration, based on ex10 isting technologies to measure, monitor, and verify 

11 soil carbon sequestration and increases in soil carbon 

12 stocks associated with agricultural management 

13 practices; 

14 ‘‘(2) revise the standardized protocols estab15 lished under paragraph (1) as necessary and as tech16 nological advancements warrant, to ensure full mar17 ket participation and remuneration for those credits 

18 in market-based greenhouse gas emissions reduction 

19 programs; 

20 ‘‘(3) provide information to agricultural pro21 ducers concerning the economic (including market22 based sale and trading opportunities) and environ23 mental benefits of conservation and management 

24 practices that increase soil carbon sequestration; and 

25 ‘‘(4) provide grants to— 


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1 ‘‘(A) land-grant colleges and universities 

2 (as defined in section 9011(b))— 

3 ‘‘(i) to develop renewable energy and 

4 value-added curricula that provide training 

5 for individuals pursuing careers in the re6 newable energy field (including individuals 

7 majoring in renewable energy engineering); 

8 ‘‘(ii) to provide extension services re9 lating to renewable energy; and 

10 ‘‘(iii) to encourage cellulosic biofuel 

11 research; and 

12 ‘‘(B) nonprofit organizations to educate 

13 fleet operators and the public about the benefits 

14 of biodiesel and other renewable fuels. 

15 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated such sums as are nec17 essary to carry out this section.’’. 

18 SEC. 504. RENEWABLE ELECTRICITY AND RENEWABLE 

19 FUELS RESEARCH AND DEVELOPMENT. 

20 Title IX of the Farm Security and Rural Investment 

21 Act of 2002 (7 U.S.C. 8101 et seq.) (as amended by sec22 tion 503) is amended by adding at the end the following: 


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1 ‘‘SEC. 9018. RENEWABLE ELECTRICITY AND RENEWABLE 

2 FUELS RESEARCH AND DEVELOPMENT. 

3 ‘‘(a) JOINT RESEARCH WITH THE DEPARTMENT OF

4 ENERGY.— 

5 ‘‘(1) NATIONAL GOAL.—It is a goal of the 

6 United States that by calendar year 2025, the costs 

7 of producing electricity in the United States from re8 newable resources shall be reduced by at least 45 

9 percent from the cost of producing electricity from 

10 renewable resources as of the date of enactment of 

11 this section. 

12 ‘‘(2) STUDY.—The Secretary and the Secretary 

13 of Energy (referred to in this subsection as the ‘Sec14 retaries’) shall jointly carry out a study that— 

15 ‘‘(A) identifies research, development, dem16 onstration, and deployment steps necessary to 

17 achieve the national goal described in para18 graph (1); 

19 ‘‘(B) comprehensively examines the infra20 structure needs of the renewable fuels sector, 

21 including a study of biofuel pipeline needs and 

22 feasibility; 

23 ‘‘(C) assesses the water requirements nec24 essary to produce and process biobased and re25 newable energy feedstocks from agricultural 

26 production, forestry, and waste; 


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1 ‘‘(D) determines whether adequate water 

2 resources are projected to be available to 

3 meet— 

4 ‘‘(i) the requirements described in 

5 subparagraph (C); and 

6 ‘‘(ii) current and projected drinking 

7 water, sanitation, and ecosystem needs; 

8 ‘‘(E) identifies best practices to maximize 

9 water efficiency; and 

10 ‘‘(F) quantifies and verifies the carbon se11 questration benefits of various bioenergy and 

12 agricultural crops and practices, including the 

13 development of models to estimate the carbon 

14 sequestration benefits for different crops on dif15 ferent soils. 

16 ‘‘(3) REPORT.—Not later than 3 years after the 

17 date of enactment of this section, and every 3 years 

18 thereafter, the Secretaries shall submit to Congress 

19 a report that includes— 

20 ‘‘(A) the progress of the Secretaries in 

21 meeting the national goal described in para22 graph (1); 

23 ‘‘(B) any recommendations of the Secre24 taries to ensure that the national goal is met; 

25 and 


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1 ‘‘(C) the results of the study carried out 

2 under paragraph (2), including recommenda3 tions— 

4 ‘‘(i) to ensure delivery of adequate re5 newable fuels and feedstocks to the mar6 ket; and 

7 ‘‘(ii) to ensure the availability of ade8 quate water resources. 

9 ‘‘(b) ADDITIONAL RESEARCH AND DEVELOPMENT.— 

10 The Secretary shall carry out a research and development 

11 program under which the Secretary shall study— 

12 ‘‘(1) the use of alternative, renewable feedstocks 

13 and power sources, including livestock waste, to 

14 produce biofuels; 

15 ‘‘(2) methods to sustainably increase agricul16 tural and forestry crop energy yields while enhancing 

17 environmental benefits, in particular improving soil 

18 quality and air quality; 

19 ‘‘(3) methods of developing small-scale and dis20 tributed renewable energy technologies; 

21 ‘‘(4) biochar, animal agriculture residues, and 

22 other potential non-fossil-fuel-based, renewable fer23 tilizers to integrate energy production or agricultural 

24 management practices with enhanced soil quality 

25 and long-term carbon sequestration; 


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1 ‘‘(5) the development of efficient and environ2 mentally-sensitive harvesting equipment, including 

3 as 1-pass equipment, for agricultural production and 

4 forestry; 

5 ‘‘(6) the use of algae for the production of bio6 diesel and other biobased fuels and energy; 

7 ‘‘(7) the use of biotechnology, under acceptable 

8 protocols, to develop and deploy high-yielding or eas9 ily-fermentable biomass energy feedstocks or syngas 

10 derived from biomass energy feedstocks; and 

11 ‘‘(8) methods to develop and deploy distributed 

12 or portable biomass feedstock processing systems. 

13 ‘‘(c) SAFETY PROTOCOLS.—The Secretary shall carry 

14 out a program under which the Secretary provides coordi15 nation, outreach, and technical assistance to develop pro16 tocols for— 

17 ‘‘(1) the safe introduction of new biomass en18 ergy feedstocks, including by allowing crop testing to 

19 determine local compatibility while protecting exist20 ing agriculture and habitats; 

21 ‘‘(2) the safe disposal of livestock and poultry 

22 carcasses, including alternative uses; and 

23 ‘‘(3) the environmentally-sound production of 

24 feedstocks and use wastes for energy production. 

25 ‘‘(d) FUNDING.— 


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1 ‘‘(1) IN GENERAL.—On October 1, 2007, and 

2 on each October 1 thereafter through October 1, 

3 2011, out of any funds in the Treasury not other4 wise appropriated, the Secretary of the Treasury 

5 shall transfer to the Secretary— 

6 ‘‘(A) $120,000,000 to carry out subsection 

7 (a); 

8 ‘‘(B) $120,000,000 to carry out subsection 

9 (b); and 

10 ‘‘(C) $60,000,000 to carry out subsection 

11 (c). 

12 ‘‘(2) RECEIPT AND ACCEPTANCE.—The Sec13 retary shall be entitled to receive, shall accept, and 

14 shall use to carry out this section the funds trans15 ferred under paragraph (1), without further appro16 priation. 

17 ‘‘(3) AVAILABILITY OF FUNDS.—Funds trans18 ferred under paragraph (1) shall remain available 

19 until expended.’’. 

20 TITLE VI—FARM AND RURAL AP21 PLICATIONS FOR PLUG-IN 

22 ELECTRIC DRIVE VEHICLES 

23 SEC. 601. FARM AND RURAL APPLICATIONS FOR PLUG-IN 

24 ELECTRIC DRIVE VEHICLES. 

25 (a) DEFINITIONS.—In this section: 


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1 (1) PLUG-IN ELECTRIC DRIVE VEHICLE.—The 

2 term ‘‘plug-in electric drive vehicle’’ means a 

3 precommercial vehicle that— 

4 (A) draws motive power from a battery of 

5 at least 4 kWh; 

6 (B) can be recharged from an external 

7 source of electricity for motive power; and 

8 (C) is a light-duty, medium-duty, or heavy9 duty on-road or nonroad vehicle. 

10 (2) SECRETARY.—The term ‘‘Secretary’’ means 

11 the Secretary of Agriculture. 

12 (b) ESTABLISHMENT.—The Secretary, after con13 sultation with the Secretary of Energy, shall establish a 

14 competitive demonstration program to provide grants on 

15 a cost-shared basis to State governments, local govern16 ments, air pollution control districts, private or nonprofit 

17 entities, and any combinations of those entities, to carry 

18 out a projects to demonstrate farm and rural applications 

19 for plug-in electric drive vehicles. 

20 (c) APPLICATIONS.—The Secretary shall establish re21 quirements for applications for grants under this section, 

22 including, at a minimum, a requirement that an applicant 

23 shall describe the means by which the applicant will collect 

24 and summarize data for dissemination to the Department, 

25 other grantees, and the public, on— 


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1 (1) vehicle and component performance, includ2 ing performance of the battery, energy management, 

3 and charging systems, under various driving speeds, 

4 trip ranges, traffic, and other driving conditions; 

5 (2) vehicle and component costs, including ac6 quisition, operating, and maintenance costs; 

7 (3) vehicle emissions, including emissions of 

8 greenhouse gases; and 

9 (4) petroleum displacement as a result of the 

10 project. 

11 (d) SOLICITATION.—Not later than 180 days after 

12 the date of enactment of this Act, and annually thereafter, 

13 the Secretary shall solicit proposals to demonstrate plug14 in hybrid electric vehicles. 

15 (e) SELECTION CRITERIA.— 

16 (1) PRIORITY.—In providing grants under this 

17 section, the Secretary shall— 

18 (A) take into consideration the experience 

19 of each applicant with respect to plug-in hybrid 

20 electric vehicles; and 

21 (B) give priority to applicants that— 

22 (i) demonstrate a path to commer23 cialization for the vehicles demonstrated; 

24 and 


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1 (ii) are likely to make a significant 

2 contribution to the advancement of the 

3 technology and production in the United 

4 States. 

5 (2) SCOPE.—The Secretary shall ensure that 

6 projects carried out using a grant provided under 

7 this section— 

8 (A) demonstrate the operation of plug-in 

9 hybrid vehicles under various driving speeds, 

10 trip ranges, driving conditions, climate condi11 tions, and topography conditions; 

12 (B) demonstrate light-, medium-, and 

13 heavy-duty vehicles with a variety of battery 

14 and engine-turn-on control systems; 

15 (C) demonstrate plug-in hybrid vehicles in 

16 a variety of applications, including— 

17 (i) farm equipment applications; 

18 (ii) rural school bus applications; 

19 (iii) mass market passenger and light20 duty truck applications in rural areas; and 

21 (iv) fleet applications in rural areas; 

22 (D) demonstrate vehicles from original 

23 equipment manufacturers, Tier I suppliers, or 

24 other entities capable of achieving commer25 cialization of the technology; and 


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1 (E) provide an opportunity for innovation 

2 and creativity from small and breakthrough 

3 technology companies. 

4 (f) OTHER REQUIREMENTS.— 

5 (1) CONTINUING ELIGIBILITY.—An applicant 

6 that has received a grant under this section for a fis7 cal year— 

8 (A) may submit to the Secretary an appli9 cation under this section for a subsequent fiscal 

10 year; but 

11 (B) shall receive grants for an aggregate 

12 amount of not more than $20,000,000 for the 

13 period of fiscal years 2008 through 2013. 

14 (2) INFORMATION.—The Secretary shall ensure 

15 that nonproprietary information, test data, specifica16 tions, and other information obtained by participants 

17 in the program under this section are— 

18 (A) shared among participants in the pro19 gram; and 

20 (B) made available to other interested par21 ties, including applicants of the program. 

22 (3) CERTAIN APPLICANTS.—A battery manufac23 turer that proposes to supply to an applicant for a 

24 grant under this section for use in a plug-in hybrid 


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1 vehicle a battery with a capacity of greater than 1 

2 kilowatt-hour shall— 

3 (A) ensure that the applicant includes in 

4 the application a description of the price of the 

5 battery per kilowatt hour; 

6 (B) on approval by the Secretary of the 

7 application, publish, or permit the Secretary to 

8 publish, the price described in subparagraph 

9 (A); and 

10 (C) for any order received by the battery 

11 manufacturer for at least 1,000 batteries, offer 

12 the batteries at that price. 

13 (g) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated to carry out this section 

15 $60,000,000 for each of fiscal years 2008 through 2012, 

16 of which $20,000,000 shall be available only for use in 

17 providing grants to local and municipal units of govern18 ment. 

Æ 


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