(1) by redesignating subsections (a) through (g) 
as subsections (b) through (h), respectively; 
(2) by inserting before subsection (b) (as so re-
designated), the following new subsection: 
‘‘(a) AGRICULTURAL PRODUCER DEFINED.—In this 
section, the term ‘agricultural producer’ includes rural and 
non-rural agricultural producers.’’; 
(3) in subsection (d) (as redesignated by para-
graph (1))— 
(A) by striking paragraph (1) and insert-
ing the following new paragraph: 
‘‘(1) LOAN
GUARANTEE
AND
GRANT
PRO-
GRAM.— 
‘‘(A) IN
GENERAL.—In addition to any 
similar authority, the Secretary shall provide 
loan guarantees and grants to agricultural pro-
ducers and rural small businesses— 
‘‘(i) to purchase renewable energy sys-
tems, including— 
‘‘(I) systems that may be used to 
produce and sell electricity, such as 
for agricultural, and associated resi-
dential, purposes; and 
‘‘(II) unique components of re-
newable energy systems; and 
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‘‘(ii) to make energy efficiency im-
provements. 
‘‘(B) TIERED APPLICATION PROCESS.— 
‘‘(i) IN GENERAL.—In providing loan 
guarantees and grants under this sub-
section, the Secretary shall use a 3-tiered 
application process that reflects the sizes 
of proposed projects in accordance with 
this subparagraph. 
‘‘(ii) TIER 1.—The Secretary shall es-
tablish a separate application process for 
projects for which the cost of the activity 
funded under this subsection is not more 
than $80,000. 
‘‘(iii) TIER 2.—The Secretary shall es-
tablish a separate application process for 
projects for which the cost of the activity 
funded under this subsection is greater 
than $80,000 but less than $200,000. 
‘‘(iv) TIER 3.—The Secretary shall es-
tablish a separate application process for 
projects for which the cost of the activity 
funded under this subsection is equal to or 
greater than $200,000. 
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‘‘(v) 
APPLICATION
PROCESS.—The 
Secretary shall establish an application, 
evaluation, and oversight process that is 
most simplified for tier I projects and more 
comprehensive for each subsequent tier.’’; 
(B) in paragraph (3)— 
(i) in subparagraph (A), by inserting 
‘‘in an amount not to exceed $100,000 per 
grant’’ after ‘‘in the form of grants’’; and 
(ii) by striking subparagraph (C); 
(C) in paragraph (4)(C), by striking ‘‘75 
percent of the cost’’ and inserting ‘‘all eligible 
costs’’; and 
(D) by adding at the end the following new 
paragraph: 
‘‘(5) REQUIREMENT.—In carrying out this sec-
tion, the Secretary shall not require a second meter 
for on-farm residential portions of rural projects 
connected to the grid.’’; 
(4) in subsection (g) (as redesignated by para-
graph (1))— 
(A) by striking ‘‘Not later’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—Not later’’; and 
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(B) by adding at the end the following new 
paragraph: 
‘‘(2) SUBSEQUENT REPORT.—Not later than 4 
years after the date of enactment of this paragraph, 
the Secretary shall submit to Congress a report on 
activities carried out under this section, including 
the outcomes achieved by projects funded under this 
section.’’; and 
(5) in subsection (h) (as redesignated by para-
graph (1))— 
(A) in paragraph (1)(D), by striking ‘‘fis-
cal year 2012’’ and inserting ‘‘each of fiscal 
years 2012 through 2017’’; and 
(B) in paragraph (3), by inserting ‘‘and 
$70,000,000 for each of fiscal years 2013 
through 2017’’ before the period at the end. 
SEC. 8. BIOMASS RESEARCH AND DEVELOPMENT. 
Section 9008 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8108) is amended— 
(1) by striking ‘‘biofuels and’’ each place it ap-
pears in subsections (b), (c)(3), (d)(2)(A), (e), and 
(g)(2) and inserting ‘‘biofuels, renewable chemicals, 
and’’; 
(2) in subsection (e)— 
(A) in paragraph (2)— 
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(i) in subparagraph (A)— 
(I) by striking ‘‘at prices com-
petitive with fossil fuels’’ and insert-
ing ‘‘and biobased products’’; and 
(II) by inserting ‘‘and’’ after the 
semicolon at the end; 
(ii) by striking subparagraph (B); 
(iii) by redesignating subparagraph 
(C) as subparagraph (B); and 
(iv) in subparagraph (B) (as so redes-
ignated), by inserting ‘‘renewable chemi-
cals,’’ after ‘‘bioenergy,’’; 
(B) in paragraph (3)— 
(i) in subparagraph (B), in the sub-
paragraph heading, by inserting ‘‘, RENEW-
ABLE CHEMICALS,’’ after ‘‘BIOFUELS’’; and 
(ii) by striking subparagraph (C); 
(C) by striking paragraph (4); and 
(D) by redesignating paragraphs (5) and 
(6) as paragraphs (4) and (5), respectively; and 
(3) in subsection (h)— 
(A) in paragraph (1)— 
(i) in subparagraph (C), by striking 
‘‘and’’ at the end; 
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(ii) in subparagraph (D), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(E) $30,000,000 for each of fiscal years 
2013 through 2017.’’; and 
(B) in paragraph (2), by inserting ‘‘and 
$30,000,000 for each of fiscal years 2013 
through 2017’’ before the period at the end. 
SEC. 9. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 
Section 9009(d) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 8109(d)) is amended by 
inserting ‘‘and $10,000,000 for each of fiscal years 2013 
through 2017’’ before the period at the end. 
SEC. 10. BIOMASS CROP ASSISTANCE PROGRAM. 
(a) DEFINITIONS.—Section 9011(a) of the Farm Se-
curity and Rural Investment Act of 2002 (7 U.S.C. 
8111(a)) is amended— 
(1) in paragraph (4)(B)— 
(A) in clause (i), by striking ‘‘or’’ at the 
end; 
(B) in clause (ii)— 
(i) by striking ‘‘has the potential to 
become invasive or noxious’’ and inserting 
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‘‘species or varieties of plants that credible 
risk assessment tools or other credible 
sources determine are potentially invasive’’; 
and 
(ii) by striking the period at the end 
and inserting ‘‘; or’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(iii) algae.’’; 
(2) in paragraph (5)(B), by striking clauses (iv) 
and (v) and inserting the following new clauses: 
‘‘(iv) land enrolled in the environ-
mental 
easement 
program 
established 
under chapter 3 of subtitle D of such title 
(16 U.S.C. 3839 et seq.); or 
‘‘(v) land enrolled in the programs de-
scribed in clauses (iii) and (iv) under a 
contract that expires at the end of fiscal 
year ølll¿.’’; 
(3) in paragraph (6)— 
(A) by striking subparagraph (A) and in-
serting the following new subparagraph: 
‘‘(A) IN GENERAL.—The term ‘eligible ma-
terial’ means the following materials: 
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‘‘(i) Renewable biomass material har-
vested directly from the land, including 
crop residue from any crop that is eligible 
to receive payments under title I of the 
Food, Conservation, and Energy Act of 
2008 (7 U.S.C. 8701 et seq.). 
‘‘(ii) Material that is collected or har-
vested by the owner of such material— 
‘‘(I) directly from the National 
Forest System, Bureau of Land Man-
agement land, non-Federal land, or 
land owned by an individual Indian or 
Indian tribe that is held in trust by 
the United States for the benefit of 
the individual Indian or Indian tribe 
or subject to a restriction against 
alienation imposed by the United 
States; or 
‘‘(II) in a manner that is con-
sistent with a conservation plan, a for-
est stewardship plan, or a plan that 
the Secretary determines is equivalent 
to a conservation plan or a forest 
stewardship plan and consistent with 
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Executive Order 13112 (64 Fed. Reg. 
6183; relating to invasive species). 
‘‘(iii) In the case of woody material, 
material that is produced on land other 
than contract acreage that— 
‘‘(I) is a byproduct of a preventa-
tive treatment that is removed to re-
duce hazardous fuel or to reduce or 
contain disease or insect infestation; 
and 
‘‘(II) if harvested from Federal 
land, is harvested in accordance with 
section 102(e) of the Healthy Forests 
Restoration Act of 2003 (16 U.S.C. 
6512(e)). 
‘‘(iv) Material that is delivered to a 
qualified biomass conversion facility to be 
used for heat, power, biobased products, 
research, or advanced biofuels.’’; and 
(B) in subparagraph (B)— 
(i) in clause (iii), by striking ‘‘or’’ at 
the end; 
(ii) in clause (iv), by striking the pe-
riod at the end and inserting ‘‘; or’’; and 
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(iii) by adding at the end the fol-
lowing new clause: 
‘‘(v) bagasse.’’; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(9) SOCIALLY
DISADVANTAGED
FARMER
OR 
RANCHER.—The term ‘socially disadvantaged farmer 
or rancher’ has the meaning given such term in sec-
tion 2501(e) of the Food, Conservation, and Trade 
Act of 1990 (7 U.S.C. 2279(e)).’’. 
(b) BCAP PROJECT AREA.—Section 9011(c) of the 
Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8111(c)) is amended— 
(1) in paragraph (2)— 
(A) in subparagraph (A), by striking 
clause (iv) and inserting the following new 
clause: 
‘‘(iv) any other information about the 
biomass conversion facility or proposed bio-
mass conversion facility that the Secretary 
determines necessary for the Secretary to 
be reasonably assured that the plant will 
be in operation by the date on which the 
eligible crops are ready for harvest.’’; and 
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(B) in subparagraph (B)(ix), by striking 
‘‘information’’ and all that follows through the 
period and inserting ‘‘information that the Sec-
retary determines to be necessary.’’; 
(2) in paragraph (3)— 
(A) in subparagraph (B)— 
(i) in clause (iii)— 
(I) in subclause (I), by striking 
‘‘or’’ at the end; 
(II) in subclause (II), by striking 
‘‘or an equivalent; and’’ at the end 
and inserting ‘‘; or’’; and 
(III) by adding at the end the 
following new subclause: 
‘‘(III) a plan that is equivalent to 
a conservation plan or a forest stew-
ardship plan; and’’; and 
(ii) in clause (iv), by striking ‘‘the 
Secretary’’ and all that follows through the 
period and inserting ‘‘that the Secretary 
determines to be necessary.’’; and 
(B) in subparagraph (C), in the matter 
preceding clause (i), by striking ‘‘up to’’ and in-
serting ‘‘not more than’’; and 
(3) in paragraph (5)— 
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(A) in subparagraph (B)— 
(i) by redesignating clauses (i), (ii), 
and (iii) as subclauses (I), (II), and (III), 
respectively, and moving the margins of 
such subclauses two ems to the right; 
(ii) by striking ‘‘(B) AMOUNT OF ES-
TABLISHMENT
PAYMENTS.—The amount 
of’’ and inserting the following: 
‘‘(B) AMOUNT
OF
ESTABLISHMENT
PAY-
MENTS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the amount of’’; 
(iii) in clause (i) (as designated by 
clause (ii)), by striking ‘‘up to 75 percent’’ 
and inserting ‘‘not more than the lesser of 
$500 per acre or 75 percent’’; and 
(iv) by adding at the end the following 
new clause: 
‘‘(ii) 
SOCIALLY
DISADVANTAGED 
FARMERS OR RANCHERS.—The limitation 
on the amount of an establishment pay-
ment under clause (i) shall apply in the 
case of a socially disadvantaged farmer or 
rancher in the same manner as such limi-
tation applies to any farmer or rancher 
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under such clause except that the limita-
tion on the costs of establishment applica-
ble to a socially disadvantaged farmer or 
rancher shall be not more than the lesser 
of $750 per acre or 85 percent of such 
costs.’’; and 
(B) in subparagraph (C)(ii), by striking 
subclause (V) and inserting the following new 
subclause: 
‘‘(V) the Secretary determines a 
reduction is necessary to carry out 
this section.’’. 
(c) ASSISTANCE
WITH
COLLECTION, HARVEST, 
STORAGE, AND TRANSPORTATION.—Section 9011(d) of 
the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8111(d)) is amended— 
(1) in paragraph (1)(B), by inserting before the 
period at the end ‘‘, regardless of whether the eligi-
ble material is produced on contract acreage’’; and 
(2) in paragraph (2)(B)— 
(A) by striking ‘‘rate of $1’’ and inserting 
‘‘rate of not more than $1’’; and 
(B) by striking ‘‘$45 per ton’’ and all that 
follows through the period and inserting ‘‘$20 
per dry ton for a period of 4 years.’’. 
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(d) FUNDING.—Section 9011(f) of the Farm Security 
and Rural Investment Act of 2002 (7 U.S.C. 8111(f)) is 
amended to read as follows: 
‘‘(f) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of 
the Commodity Credit Corporation, the Secretary 
shall use to carry out this section $75,000,000 for 
each of fiscal years 2013 through 2017, of which not 
more than $15,000,000 for each fiscal year may be 
used for providing assistance with collection, harvest, 
storage, and transportation under subsection (d). 
‘‘(2) DISCRETIONARY FUNDING.—In addition to 
any other funds made available to carry out this sec-
tion, there are authorized to be appropriated to 
carry out this section $75,000,000 for each of fiscal 
years 2013 through 2017.’’. 
(e) CONFORMING AMENDMENTS; TECHNICAL COR-
RECTIONS.— 
(1) DEFINITION OF ELIGIBLE LAND.—Section 
9011(a)(5)(B)(ii) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8111(a)(5)(B)(ii)) 
is amended by inserting ‘‘(7 U.S.C. 8701 et seq.)’’ 
after ‘‘2008’’. 
(2) ESTABLISHMENT
AND
PURPOSE.—Section 
9011(b)(2) of the Farm Security and Rural Invest-
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ment Act of 2002 (7 U.S.C. 8111(b)(2)) is amended 
by inserting ‘‘the’’ before ‘‘collection’’. 
(3) SOCIALLY DISADVANTAGED FARMERS AND 
RANCHERS.—Section 9011(c)(2)(B)(v)(II) of the 
Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8111(c)(2)(B)(v)(II)) is amended by striking 
‘‘ranchers’’ and all that follows through the semi-
colon and inserting ‘‘ranchers;’’. 
(4) LIMITATION
ON
ASSISTANCE
FOR
BCAP 
CONTRACT
ACREAGE.—Section 9011(d)(3) of the 
Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8111(d)(3)) is amended by inserting ‘‘an’’ 
before ‘‘annual’’. 
SEC. 11. FOREST BIOMASS FOR ENERGY. 
Section 9012(d) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 8112(d)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2017’’. 
SEC. 12. COMMUNITY WOOD ENERGY PROGRAM. 
Section 9013(e) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 8113(e)) is amended by 
striking ‘‘2012’’ and inserting ‘‘2017’’. 
Æ 
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