II 

109TH CONGRESS 

2D SESSION S. 3844 

To provide for the investment of all funds collected from the tariff on 

imports of ethanol in the research, development, and deployment of 

biofuels, especially cellulosic ethanol produced from biomass feedstocks. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 5, 2006 

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

and referred to the Committee on Energy and Natural Resources 

A BILL 

To provide for the investment of all funds collected from 

the tariff on imports of ethanol in the research, development, and deployment of biofuels, especially cellulosic 

ethanol produced from biomass feedstocks. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Biofuels Investment 

5 Trust Fund Act’’. 

6 SEC. 2. BIOFUELS INVESTMENT TRUST FUND. 

7 (a) ESTABLISHMENT.— 


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

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

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

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

6 Trust Fund under paragraph (2). 

7 (2) TRANSFER.—Beginning on January 1, 

8 2007, the Secretary of the Treasury shall transfer to 

9 the Trust Fund, from amounts in the general fund 

10 of the Treasury, such amounts as the Secretary of 

11 the Treasury determines to be equivalent to the 

12 amounts received in the general fund that are attrib13 utable to duties received on articles entered under 

14 heading 9901.00.50 of the Harmonized Tariff 

15 Schedule of the United States. 

16 (b) EXPENDITURES FROM TRUST FUND.— 

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

18 consultation with the Secretary of Agriculture and 

19 the Secretary of the Treasury, shall use amounts in 

20 the Trust Fund to provide financial assistance for 

21 research, development, and deployment programs for 

22 biofuels to increase the amount and diversity of 

23 biofuels produced in the United States and made 

24 available to consumers, especially for cellulosic eth25 anol production from biomass feedstocks. 


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1 (2) REQUIREMENTS.—The Secretary of Energy 

2 shall ensure that amounts made available under 

3 paragraph (1) shall be used only— 

4 (A) to provide financial assistance to farm5 ers, producers, biorefiners, researchers, univer6 sities, and other persons or entities involved in 

7 the research, development, deployment, or pro8 duction of biofuels, especially the production of 

9 biomass feedstock for cellulosic ethanol produc10 tion; or 

11 (B) as otherwise directed by Congress to 

12 advance research, development, and deployment 

13 of biofuels, especially cellulosic ethanol pro14 duced from biomass feedstocks. 

15 (c) INVESTMENT OF AMOUNTS.— 

16 (1) IN GENERAL.—The Secretary of the Treas17 ury shall invest such portion of the Trust Fund as 

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

19 Treasury, required to meet current withdrawals. 

20 (2) INTEREST-BEARING OBLIGATIONS.—Invest21 ments may be made only in interest-bearing obliga22 tions of the United States. 

23 (3) ACQUISITION OF OBLIGATIONS.—For the 

24 purpose of investments under paragraph (1), obliga25 tions may be acquired— 


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

2 (B) by purchase of outstanding obligations 

3 at the market price. 

4 (4) SALE OF OBLIGATIONS.—Any obligation ac5 quired by the Trust Fund may be sold by the Sec6 retary of the Treasury at the market price. 

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

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

9 any obligations held in the Trust Fund shall be 

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

11 (d) TRANSFERS OF AMOUNTS.— 

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

13 transferred to the Trust Fund under subsection 

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

15 the general fund of the Treasury to the Trust Fund 

16 on the basis of estimates made by the Secretary of 

17 the Treasury. 

18 (2) ADJUSTMENTS.—Proper adjustment shall 

19 be made in amounts subsequently transferred to the 

20 extent prior estimates were in excess of or less than 

21 the amounts required to be transferred. 

Æ 


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