building on the Energy Star for Small Business program, 
to assist small businesses in— 
‘‘(1) becoming more energy efficient; 
‘‘(2) understanding the cost savings from im-
proved energy efficiency; and 
‘‘(3) identifying financing options for energy ef-
ficiency upgrades. 
‘‘(b) CONSULTATION AND COOPERATION.—The pro-
gram required by subsection (a) shall be developed and 
coordinated— 
‘‘(1) in consultation with the Secretary of En-
ergy and the Administrator of the Environmental 
Protection Agency; and 
‘‘(2) in cooperation with any entities the Ad-
ministrator considers appropriate, such as industry 
trade associations, industry members, and energy ef-
ficiency organizations. 
‘‘(c) AVAILABILITY OF INFORMATION.—The Admin-
istrator shall make available the information and materials 
developed under the program required by subsection (a) 
to— 
‘‘(1) small businesses; and 
‘‘(2) other Federal programs for energy effi-
ciency, such as the Energy Star for Small Business 
program.
‘‘(d) STRATEGY AND REPORT.— 
‘‘(1) STRATEGY
REQUIRED.—The Adminis-
trator shall develop a strategy to educate, encourage, 
and assist small business to adopt energy efficient 
building fixtures and equipment. 
‘‘(2) REPORT.—Not later than December 31, 
2008, the Administrator shall submit to Congress a 
report containing a plan to implement the strat-
egy.’’. 
SEC. 3007. ENERGY SAVING DEBENTURES. 
Section 303 of the Small Business Investment Act 
of 1958 (15 U.S.C. 683) is amended by adding at the end 
the following new subsection: 
‘‘(k) ENERGY SAVING DEBENTURES.— 
‘‘(1) IN GENERAL.—In addition to any other 
authority under this Act, a small business invest-
ment company licensed after September 30, 2007, 
shall have authority to issue Energy Saving deben-
tures. 
‘‘(2) ENERGY SAVING DEBENTURE DEFINED.— 
As used in this Act, the term ‘Energy Saving deben-
ture’ means a deferred interest debenture that— 
‘‘(A) is issued at a discount; 
‘‘(B) has a five-year maturity or a ten-year 
maturity;
‘‘(C) requires no interest payment or an-
nual charge for the first five years; 
‘‘(D) is restricted to Energy Saving quali-
fied investments; and 
‘‘(E) is issued at no cost (as defined in 
section 502 of the Credit Reform Act of 1990) 
with respect to purchasing and guaranteeing 
the debenture. 
‘‘(3) ENERGY SAVING QUALIFIED INVESTMENT 
DEFINED.—As used in this Act, the term ‘Energy 
Saving qualified investment’ means investment in a 
small business that is primarily engaged in research-
ing, manufacturing, developing, or providing prod-
ucts, goods, or services that reduce the use or con-
sumption of non-renewable energy resources.’’. 
SEC. 3008. INVESTMENTS IN ENERGY SAVING SMALL BUSI-
NESSES. 
(a) MAXIMUM LEVERAGE.—Paragraph (2) of sub-
section (b) of section 303 of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 303(b)(2)) is amended by 
adding at the end the following new subparagraph: 
‘‘(D) INVESTMENTS
IN
ENERGY
SAVING 
SMALL
BUSINESSES.—In calculating the out-
standing leverage of a company for purposes of 
subparagraph (A), the Administrator shall not
include the amount of the cost basis of any En-
ergy Saving qualified investment (as defined in 
subsection (k)) made after September 30, 2007, 
by a company licensed after September 30, 
2007, in a smaller enterprise, to the extent that 
the total of such amounts does not exceed 50 
percent of the company’s private capital, sub-
ject to such terms as the Administrator may 
impose to assure no cost (as defined in section 
502 of the Federal Credit Reform Act of 1990) 
with respect to purchasing or guaranteeing any 
debenture involved.’’. 
(b) MAXIMUM AGGREGATE AMOUNT
OF LEVER-
AGE.—Paragraph (4) of subsection (b) of section 303 of 
the Small Business Investment Act of 1958 (15 U.S.C. 
303(b)(4)) is amended by adding at the end the following 
new subparagraph: 
‘‘(E) INVESTMENTS
IN
ENERGY
SAVING 
SMALL BUSINESSES.—In calculating the aggre-
gate outstanding leverage of a company for pur-
poses of subparagraph (A), the Administrator 
shall not include the amount of the cost basis 
of any Energy Saving qualified investment (as 
defined in subsection (k)) made after Sep-
tember 30, 2007, by a company licensed after
September 30, 2007, in a smaller enterprise, to 
the extent that the total of such amounts does 
not exceed 50 percent of the company’s private 
capital, subject to such terms as the Adminis-
trator may impose to assure no cost (as defined 
in section 502 of the Federal Credit Reform 
Act of 1990) with respect to purchasing or 
guaranteeing any debenture involved.’’. 
SEC. 3009. RENEWABLE FUEL CAPITAL INVESTMENT COM-
PANY. 
Title III of the Small Business Investment Act of 
1958 (15 U.S.C. 681 et seq.) is amended by adding at 
the end the following new part: 
‘‘PART C—RENEWABLE FUEL CAPITAL 
INVESTMENT PILOT PROGRAM 
‘‘SEC. 381. DEFINITIONS. 
‘‘In this part, the following definitions apply: 
‘‘(1) VENTURE
CAPITAL.—The term ‘venture 
capital’ means capital in the form of equity capital 
investments. For the purposes of this paragraph, the 
term ‘equity capital’ has the same meaning given 
such term in section 303(g)(4). 
‘‘(2) RENEWABLE FUEL CAPITAL INVESTMENT 
COMPANY.—The term ‘Renewable Fuel Capital In-
vestment Company’ means a company that—
102 
‘‘(1) IN
GENERAL.—From among companies 
submitting applications under subsection (b), the 
Administrator shall, in accordance with this sub-
section, conditionally approve companies to partici-
pate in the Renewable Fuel Capital Investment Pro-
gram. 
‘‘(2) SELECTION CRITERIA.—In selecting com-
panies under paragraph (1), the Administrator shall 
consider the following: 
‘‘(A) The likelihood that the company will 
meet the goal of its business plan. 
‘‘(B) The experience and background of 
the company’s management team. 
‘‘(C) The need for venture capital invest-
ments in the geographic areas in which the 
company intends to invest. 
‘‘(D) The extent to which the company will 
concentrate its activities on serving the geo-
graphic areas in which it intends to invest. 
‘‘(E) The likelihood that the company will 
be able to satisfy the conditions under sub-
section (d). 
‘‘(F) The extent to which the activities 
proposed by the company will expand economic
103 
opportunities in the geographic areas in which 
the company intends to invest. 
‘‘(G) The strength of the company’s pro-
posal to provide operational assistance under 
this part as the proposal relates to the ability 
of the applicant to meet applicable cash require-
ments and properly utilize in-kind contribu-
tions, including the use of resources for the 
services of licensed professionals, when nec-
essary, whether provided by persons on the 
company’s staff or by persons outside of the 
company. 
‘‘(H) Any other factors deemed appro-
priate by the Administrator. 
‘‘(3) NATIONWIDE DISTRIBUTION.—The Admin-
istrator shall select companies under paragraph (1) 
in such a way that promotes investment nationwide. 
‘‘(d) REQUIREMENTS TO BE MET FOR FINAL AP-
PROVAL.—The Administrator shall grant each condi-
tionally approved company a period of time, not to exceed 
2 years, to satisfy the following requirements: 
‘‘(1) CAPITAL
REQUIREMENT.—Each condi-
tionally approved company shall raise not less than 
$5,000,000 of private capital or binding capital com-
mitments from one or more investors (other than
104 
agencies or departments of the Federal Government) 
who met criteria established by the Administrator. 
‘‘(2) NONADMINISTRATION
RESOURCES
FOR 
OPERATIONAL ASSISTANCE.— 
‘‘(A) IN
GENERAL.—In order to provide 
operational assistance to smaller enterprises ex-
pected to be financed by the company, each 
conditionally approved company— 
‘‘(i) shall have binding commitments 
(for contribution in cash or in kind)— 
‘‘(I) from any sources other than 
the Small Business Administration 
that meet criteria established by the 
Administrator; 
‘‘(II) payable or available over a 
multiyear period acceptable to the Ad-
ministrator (not to exceed 10 years); 
and 
‘‘(III) in an amount not less than 
30 percent of the total amount of cap-
ital and commitments raised under 
paragraph (1); 
‘‘(ii) shall have purchased an annu-
ity—
105 
‘‘(I) from an insurance company 
acceptable to the Administrator; 
‘‘(II) using funds (other than the 
funds raised under paragraph (1)), 
from any source other than the Ad-
ministrator; and 
‘‘(III) that yields cash payments 
over a multiyear period acceptable to 
the Administrator (not to exceed 10 
years) in an amount not less than 30 
percent of the total amount of capital 
and commitments raised under para-
graph (1); or 
‘‘(iii) shall have binding commitments 
(for contributions in cash or in kind) of the 
type described in clause (i) and shall have 
purchased an annuity of the type described 
in clause (ii), which in the aggregate make 
available, over a multiyear period accept-
able to the Administrator (not to exceed 10 
years), an amount not less than 30 percent 
of the total amount of capital and commit-
ments raised under paragraph (1). 
‘‘(B) 
EXCEPTION.—The 
Administrator 
may, in the discretion of the Administrator and
106 
based upon a showing of special circumstances 
and good cause, consider an applicant to have 
satisfied the requirements of subparagraph (A) 
if the applicant has— 
‘‘(i) a viable plan that reasonably 
projects the capacity of the applicant to 
raise the amount (in cash or in-kind) re-
quired under subparagraph (A); and 
‘‘(ii) binding commitments in an 
amount equal to not less than 20 percent 
of the total amount required under para-
graph (A). 
‘‘(C) LIMITATION.—In order to comply 
with the requirements of subparagraphs (A) 
and (B), the total amount of a company’s in- 
kind contributions may not exceed 50 percent 
of the company’s total contributions. 
‘‘(e) FINAL APPROVAL; DESIGNATION.—The Admin-
istrator shall, with respect to each applicant conditionally 
approved to operate as a Renewable Fuel Capital Invest-
ment Company under subsection (c), either— 
‘‘(1) grant final approval to the applicant to op-
erate as a Renewable Fuel Capital Investment com-
pany under this part and designate the applicant as 
such a company, if the applicant—
107 
‘‘(A) satisfies the requirements of sub-
section (d) on or before the expiration of the 
time period described in that subsection; and 
‘‘(B) enters into a participation agreement 
with the Administrator; or 
‘‘(2) if the applicant fails to satisfy the require-
ments of subsection (d) on or before the expiration 
of the time period described in that subsection, re-
voke the conditional approval granted under that 
subsection. 
‘‘SEC. 385. DEBENTURES. 
‘‘(a) IN GENERAL.—The Administrator may guar-
antee the timely payment of principal and interest, as 
scheduled, on debentures issued by any Renewable Fuel 
Capital Investment company. 
‘‘(b) TERMS AND CONDITIONS.—The Administrator 
may make guarantees under this section on such terms 
and conditions as it deems appropriate, except that the 
term of any debenture guaranteed under this section shall 
not exceed 15 years. 
‘‘(c) FULL FAITH AND CREDIT OF THE UNITED 
STATES.—The full faith and credit of the United States 
is pledged to pay all amounts that may be required to be 
paid under any guarantee under this part. 
‘‘(d) MAXIMUM GUARANTEE.—
109 
priate, guarantee the timely payment of the principal 
of and interest on trust certificates issued by the 
Administrator or its agents for purposes of this sec-
tion. 
‘‘(2) LIMITATION.—Each guarantee under this 
subsection shall be limited to the extent of principal 
and interest on the guaranteed debentures that com-
pose the trust or pool. 
‘‘(3) PREPAYMENT OR DEFAULT.—In the event 
that a debenture in a trust or pool is prepaid, or in 
the event of default of such a debenture, the guar-
antee of timely payment of principal and interest on 
the trust certificates shall be reduced in proportion 
to the amount of principal and interest such prepaid 
debenture represents in the trust or pool. Interest on 
prepaid or defaulted debentures shall accrue and be 
guaranteed by the Administrator only through the 
date of payment of the guarantee. At any time dur-
ing its term, a trust certificate may be called for re-
demption due to prepayment or default of all deben-
tures. 
‘‘(c) FULL FAITH AND CREDIT OF THE UNITED 
STATES.—The full faith and credit of the United States 
is pledged to pay all amounts that may be required to be
110 
paid under any guarantee of a trust certificate issued by 
the Administrator or its agents under this section. 
‘‘(d) FEES.—The Administrator shall not collect a fee 
for any guarantee of a trust certificate under this section, 
but any agent of the Administrator may collect a fee ap-
proved by the Administrator for the functions described 
in subsection (f )(2). 
‘‘(e) SUBROGATION AND OWNERSHIP RIGHTS.— 
‘‘(1) SUBROGATION.—In the event the Adminis-
trator pays a claim under a guarantee issued under 
this section, it shall be subrogated fully to the rights 
satisfied by such payment. 
‘‘(2) OWNERSHIP RIGHTS.—No Federal, State, 
or local law shall preclude or limit the exercise by 
the Administrator of its ownership rights in the de-
bentures residing in a trust or pool against which 
trust certificates are issued under this section. 
‘‘(f) MANAGEMENT AND ADMINISTRATION.— 
‘‘(1) REGISTRATION.—The Administrator may 
provide for a central registration of all trust certifi-
cates issued under this section. 
‘‘(2) CONTRACTING OF FUNCTIONS.— 
‘‘(A) IN
GENERAL.—The Administrator 
may contract with an agent or agents to carry 
out on behalf of the Administrator the pooling
111 
and the central registration functions provided 
for in this section including, notwithstanding 
any other provision of law— 
‘‘(i) maintenance, on behalf of and 
under the direction of the Administrator, 
of such commercial bank accounts or in-
vestments in obligations of the United 
States as may be necessary to facilitate the 
creation of trusts or pools backed by de-
bentures guaranteed under this part; and 
‘‘(ii) the issuance of trust certificates 
to facilitate the creation of such trusts or 
pools. 
‘‘(B) FIDELITY BOND OR INSURANCE RE-
QUIREMENT.—Any agent performing functions 
on behalf of the Administrator under this para-
graph shall provide a fidelity bond or insurance 
in such amounts as the Administrator deter-
mines to be necessary to fully protect the inter-
ests of the United States. 
‘‘(3) REGULATION
OF
BROKERS
AND
DEAL-
ERS.—The Administrator may regulate brokers and 
dealers in trust certificates issued under this section. 
‘‘(4) ELECTRONIC REGISTRATION.—Nothing in 
this subsection may be construed to prohibit the use
112 
of a book-entry or other electronic form of registra-
tion for trust certificates issued under this section. 
‘‘SEC. 387. FEES. 
‘‘(a) IN GENERAL.—Except as provided in section 
386(d), the Administrator may charge such fees as it 
deems appropriate with respect to any guarantee or grant 
issued under this part, in an amount established annually 
by the Administration, as necessary to reduce to zero the 
cost (as defined in section 502 of the Federal Credit Re-
form Act of 1990) to the Administration of purchasing 
and guaranteeing debentures under this Act, which 
amounts shall be paid to and retained by the Administra-
tion. 
‘‘(b) OFFSET.—The Administrator may, as provided 
by section 388, offset fees changed and collected under 
subsection (a). 
‘‘SEC. 388. FEE CONTRIBUTION. 
‘‘(a) IN GENERAL.—To the extent that amounts are 
made available to the Administrator for the purpose of fee 
contributions, the administrator shall contribute to fees 
paid by the Renewable Fuel Capital Investment companies 
under section 387. 
‘‘(b) ANNUAL ADJUSTMENT.—Each fee contribution 
under subsection (a) shall be effective for one fiscal year 
and shall be adjusted as necessary for each fiscal year
113 
thereafter to ensure that amounts under subsection (a) are 
fully used. The fee contribution for a fiscal year shall be 
based on the outstanding commitments made and the 
guarantees and grants that the Administrator projects will 
be made during that fiscal year, given the program level 
authorized by law for that fiscal year and any other fac-
tors that the Administrator deems appropriate. 
‘‘SEC. 389. OPERATIONAL ASSISTANCE GRANTS. 
‘‘(a) IN GENERAL.— 
‘‘(1) AUTHORITY.—In accordance with this sec-
tion, the Administrator may make grants to Renew-
able Fuel Capital Investment companies and to 
other entities, as authorized by this part, to provide 
operational assistance to smaller enterprises fi-
nanced, or expected to be financed, by such compa-
nies or other entities. 
‘‘(2) TERMS.—Grants made under this sub-
section shall be made over a multiyear period not to 
exceed 10 years, under such other terms as the Ad-
ministrator may require. 
‘‘(3) GRANTS TO SPECIALIZED SMALL BUSINESS 
INVESTMENT COMPANIES.— 
‘‘(A) AUTHORITY.—In accordance with 
this section, the Administrator may make 
grants to specialized small business investment
114 
companies to provide operational assistance to 
smaller enterprises financed, or expected to be 
financed, by such companies after the effective 
date of the Small Energy Efficient Businesses 
Act. 
‘‘(B) USE OF FUNDS.—The proceeds of a 
grant made under this paragraph may be used 
by the company receiving such grant only to 
provide operational assistance in connection 
with an equity investment (made with capital 
raised after the effective date of the Small En-
ergy Efficient Businesses Act) in a business lo-
cated in a low-income geographic area. 
‘‘(C) SUBMISSION OF PLANS.—A special-
ized small business investment company shall 
be eligible for a grant under this section only if 
the company submits to the Administrator, in 
such form and manner as the Administrator 
may require, a plan for use of the grant. 
‘‘(4) GRANT AMOUNT.— 
‘‘(A) RENEWABLE FUEL CAPITAL INVEST-
MENT
COMPANIES.—The amount of a grant 
made under this subsection to a Renewable 
Fuel Capital Investment company shall be equal
165 
(i) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary for the 
purposes of carrying out this section— 
(1) $15,000,000 for fiscal year 2008; 
(2) $30,000,000 for fiscal year 2009; 
(3) $45,000,000 for fiscal year 2010; 
(4) $60,000,000 for fiscal year 2011; and 
(5) $70,000,000 for fiscal year 2012. 
PART 2—DEVELOPMENT AND USE OF SOLAR 
ENERGY PRODUCTS 
SEC. 4311. DEFINITIONS. 
For purposes of this part: 
(1) The term ‘‘Board’’ means the Solar Energy 
Industries Research and Promotion Board estab-
lished under section 4312(b)(1). 
(2) The term ‘‘Committee’’ means the Solar 
Energy Research and Promotion Operating Com-
mittee established under section 4312(b)(4). 
(3) The term ‘‘Department’’ means the Depart-
ment of Energy. 
(4) The term ‘‘importer’’ means any person 
who imports solar energy products from outside the 
United States.
166 
(5) The term ‘‘order’’ means a solar energy 
product research and promotion order issued under 
section 4312. 
(6) The term ‘‘promotion’’ means any action to 
advance the image and desirability of solar energy 
products with the express intent of improving the 
competitive position and stimulating sales of solar 
energy products in the marketplace. 
(7) The term ‘‘Secretary’’ means the Secretary 
of Energy. 
(8) The term ‘‘solar energy products’’ means 
solar water heating components and systems and 
photovoltaic components and systems. 
SEC. 4312. SOLAR RESEARCH AND INFORMATION PRO-
GRAM. 
(a) ISSUANCE OF ORDERS.— 
(1) PROPOSED ORDER.—Not later than 30 days 
after receipt of a proposal for a solar energy product 
research and promotion order, the Secretary shall 
publish such proposed order and give due notice and 
opportunity for public comment on such proposed 
order. Such proposal may be submitted by any orga-
nization meeting the requirements for certification 
under section 4313 or any interested person, includ-
ing the Secretary.
167 
(2) FINAL
ORDER.—After notice and oppor-
tunity for public comment are given, as provided for 
in paragraph (1), the Secretary shall issue a solar 
energy product research and promotion order. The 
order shall become effective not later than 120 days 
after publication of the proposed order. 
(b) REQUIRED TERMS IN ORDERS.—An order issued 
under subsection (a) shall contain the following terms and 
conditions: 
(1) The order shall provide for the establish-
ment and selection of a Solar Energy Industries Re-
search and Promotion Board. In addition to non-
permanent members of the Board, there shall be two 
permanent members of the Board, a representative 
chosen by the Secretary and a representative chosen 
by one of the organizations certified under section 
4313. Nonpermanent members of the Board shall be 
solar energy products producers and importers ap-
pointed by the Secretary from— 
(A) nominations submitted by eligible or-
ganizations certified under section 4313; and 
(B) nominations submitted by importers 
under such procedures as the Secretary deter-
mines appropriate.
168 
The Secretary shall ensure adequate representation 
of all geographic regions of the United States on the 
Board. 
(2) The order shall define the powers and du-
ties of the Board, which shall be exercised at an an-
nual meeting, and shall include only the following 
powers: 
(A) To administer the order in accordance 
with its terms and provisions. 
(B) To make rules and regulations to ef-
fectuate the terms and provisions of the order. 
(C) To elect members of the Board to 
serve on the Committee. 
(D) To approve or disapprove budgets sub-
mitted by the Committee. 
(E) To receive, investigate, and report to 
the Secretary complaints of violations of the 
order. 
(F) To recommend to the Secretary 
amendments to the order. In addition, the order 
shall determine the circumstances under which 
special meetings of the Board may be held. 
(3) The order shall provide that the term of ap-
pointment for nonpermanent members of the Board 
shall be 3 years with no nonpermanent member serv-
169 
ing more than 2 consecutive terms, except that ini-
tial appointments shall be proportionately for 1-year, 
2-year, and 3-year terms; and that Board members 
shall serve without compensation, but shall be reim-
bursed for their reasonable expenses incurred in per-
forming their duties as members of the Board. 
(4)(A) The order shall provide that the Board 
shall elect from its membership 10 members to serve 
on the Solar Energy Research and Promotion Oper-
ating Committee. 
(B) The Committee shall develop plans or 
projects of research, information, and promotion 
which shall be paid for with assessments collected by 
the Board. In developing plans or projects, the Com-
mittee shall, to the extent practicable, ensure that 
all segments of the solar industry receive fair treat-
ment under this part based upon contributions made 
under paragraph (8). 
(C) The Committee shall be responsible for de-
veloping and submitting to the Board, for its ap-
proval, budgets on a fiscal year basis of its antici-
pated expenses and disbursements, including prob-
able costs of research, promotion, and information 
projects. The Board shall approve or disapprove
170 
such budgets and, if approved, shall submit such 
budget to the Secretary for the Secretary’s approval. 
(D) The total costs of collection of assessments 
and administrative staff incurred by the Board dur-
ing any fiscal year shall not exceed 5 percent of the 
projected total assessments to be collected by the 
Board for such fiscal year. The Board shall use, to 
the extent possible, the resources, staffs, and facili-
ties of existing organizations. 
(5) The order shall provide that terms of ap-
pointment to the Committee shall be 1 year, and 
that no person may serve on the Committee for 
more than 6 consecutive terms. Committee members 
shall serve without compensation, but shall be reim-
bursed for their reasonable expenses incurred in per-
forming their duties as members of the Committee. 
The Committee may utilize the resources, staffs, and 
facilities of the Board and industry organizations. 
An employee of an industry organization may not re-
ceive compensation for work performed for the Com-
mittee, but shall be reimbursed from assessments 
collected by the Board for reasonable expenses in-
curred in performing such work. 
(6) The order shall provide that, to ensure co-
ordination and efficient use of funds, the Committee
171 
shall enter into contracts or agreements for imple-
menting and carrying out the activities authorized 
by this part with established national nonprofit in-
dustry-governed organizations to implement pro-
grams of research, promotion, and information. In 
any fiscal year, the total assessments available for 
spending for this program (including administrative 
expenses under paragraph (4)(D)) shall not exceed 
50 percent of the projected total assessments for 
that year. Any such contract or agreement shall pro-
vide that— 
(A) the person entering the contract or 
agreement shall develop and submit to the 
Committee a plan or project together with a 
budget or budgets that shows estimated costs to 
be incurred for the plan or project; 
(B) the plan or project shall become effec-
tive on the approval of the Secretary; and 
(C) the person entering the contract or 
agreement shall keep accurate records of all of 
its transactions, account for funds received and 
expended, and make periodic reports to the 
Committee of activities conducted, and such 
other reports as the Secretary, the Board, or 
the Committee may require.
239 
controlled by socially and economically dis-
advantaged persons). 
‘‘(ii) ANNOUNCEMENT THROUGH FED-
ERAL
REGISTER
NOTICE.—The Secretary 
shall announce each prize competition 
under this subsection by publishing a no-
tice in the Federal Register. This notice 
shall include essential elements of the com-
petition such as the subject of the competi-
tion, the duration of the competition, the 
eligibility requirements for participation in 
the competition, the process for partici-
pants to register for the competition, the 
amount of the prize, and the criteria for 
awarding the prize. 
‘‘(C) 
ADMINISTERING
THE
COMPETI-
TIONS.—The Secretary shall enter into an 
agreement with a private, nonprofit entity to 
administer the prize competitions under this 
subsection, subject to the provisions of this sub-
section (in this subsection referred to as the 
‘administering entity’). The duties of the ad-
ministering entity under the agreement shall in-
clude—
240 
‘‘(i) advertising prize competitions 
under this subsection and their results; 
‘‘(ii) raising funds from private enti-
ties and individuals to pay for administra-
tive costs and to contribute to cash prizes, 
including funds provided in exchange for 
the right to name a prize awarded under 
this subsection; 
‘‘(iii) developing, in consultation with 
and subject to the final approval of the 
Secretary, the criteria for selecting winners 
in prize competitions under this subsection, 
based on goals provided by the Secretary; 
‘‘(iv) determining, in consultation with 
the Secretary, the appropriate amount and 
funding sources for each prize to be award-
ed under this subsection, subject to the 
final approval of the Secretary with respect 
to Federal funding; 
‘‘(v) providing advice and consultation 
to the Secretary on the selection of judges 
in accordance with paragraph (2)(D), 
using criteria developed in consultation 
with and subject to the final approval of 
the Secretary; and
241 
‘‘(vi) protecting against the admin-
istering entity’s unauthorized use or disclo-
sure of a registered participant’s trade se-
crets and confidential business informa-
tion. Any information properly identified 
as trade secrets or confidential business in-
formation that is submitted by a partici-
pant as part of a competitive program 
under this subsection may be withheld 
from public disclosure. 
‘‘(D) FUNDING
SOURCES.—Prizes under 
this subsection shall consist of Federal appro-
priated funds and any funds provided by the 
administering entity (including funds raised 
pursuant to subparagraph (C)(ii)) for such cash 
prize programs. The Secretary may accept 
funds from other Federal agencies for such 
cash 
prizes 
and, 
notwithstanding 
section 
3302(b) of title 31, United States Code, may 
use such funds for the cash prize program 
under this subsection. Other than publication of 
the names of prize sponsors, the Secretary may 
not give any special consideration to any private 
sector entity or individual in return for a dona-
tion to the Secretary or administering entity.
242 
‘‘(E) ANNOUNCEMENT
OF
PRIZES.—The 
Secretary may not issue a notice required by 
subparagraph (B)(ii) until all the funds needed 
to pay out the announced amount of the prize 
have been appropriated or committed in writing 
by the administering entity. The Secretary may 
increase the amount of a prize after an initial 
announcement is made under subparagraph 
(B)(ii) if— 
‘‘(i) notice of the increase is provided 
in the same manner as the initial notice of 
the prize; and 
‘‘(ii) the funds needed to pay out the 
announced amount of the increase have 
been appropriated or committed in writing 
by the administering entity. 
‘‘(F) SUNSET.—The authority to announce 
prize competitions under this subsection shall 
terminate on September 30, 2018. 
‘‘(2) PRIZE CATEGORIES.— 
‘‘(A) CATEGORIES.—The Secretary shall 
establish prizes under this subsection for— 
‘‘(i) advancements in technologies, 
components, or systems related to— 
‘‘(I) hydrogen production;
243 
‘‘(II) hydrogen storage; 
‘‘(III) hydrogen distribution; and 
‘‘(IV) hydrogen utilization; 
‘‘(ii) prototypes of hydrogen-powered 
vehicles or other hydrogen-based products 
that best meet or exceed objective perform-
ance criteria, such as completion of a race 
over a certain distance or terrain or gen-
eration of energy at certain levels of effi-
ciency; and 
‘‘(iii) transformational changes in 
technologies for the distribution or produc-
tion of hydrogen that meet or exceed far- 
reaching objective criteria, which shall in-
clude minimal carbon emissions and which 
may include cost criteria designed to facili-
tate the eventual market success of a win-
ning technology. 
‘‘(B) AWARDS.— 
‘‘(i) ADVANCEMENTS.—To the extent 
permitted under paragraph (1)(E), the 
prizes 
authorized 
under 
subparagraph 
(A)(i) shall be awarded biennially to the 
most significant advance made in each of 
the four subcategories described in sub-
259 
‘‘(2) $65,000,000 for fiscal year 2009; 
‘‘(3) $75,000,000 for fiscal year 2010; 
‘‘(4) $150,000,000 for fiscal year 2011; and 
‘‘(5) $250,000,000 for fiscal year 2012. 
‘‘(l) CONTINUATION OF OPERATIONS.— 
‘‘(1) FUNDING.—The Secretary shall continue 
to carry out this section at the rate of operation in 
effect on September 30, 2012, from sums in the 
Treasury not otherwise appropriated, through Sep-
tember 30, 2017. 
‘‘(2) AUTHORITY.—The program and authori-
ties provided under this section shall continue in 
force and effect through September 30, 2017.’’. 
SEC. 5004. BIODIESEL FUEL EDUCATION PROGRAM. 
Section 9004(d) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 8104(d)) is amended to 
read as follows: 
‘‘(d) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary of Agriculture shall 
make available to carry out this section $2,000,000 for 
each of fiscal years 2008 through 2012.’’.
260 
SEC. 5005. ENERGY AUDIT AND RENEWABLE ENERGY DE-
VELOPMENT PROGRAM. 
Section 9005(i) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 8105) is amended by 
striking ‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 5006. RENEWABLE ENERGY SYSTEMS AND ENERGY EF-
FICIENCY IMPROVEMENTS. 
Section 9006 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8106) is amended— 
(1) by striking the section heading and insert-
ing the following: 
‘‘SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM.’’; 
(2) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘, other agricultural producer’’ 
after ‘‘rancher’’; 
(B) in paragraph (1), by striking ‘‘and’’ at 
the end; 
(C) in paragraph (2), by striking the pe-
riod and inserting ‘‘; and’’; and 
(D) by adding at the end the following new 
paragraph: 
‘‘(3) produce and sell electricity generated by 
new renewable energy systems.’’; 
(3) in subsection (b), by inserting ‘‘, other agri-
cultural producer’’ after ‘‘rancher’’;
261 
(4) in subsection (c)— 
(A) in paragraph (1)— 
(i) in subparagraph (B), by striking 
‘‘50 percent’’ and inserting ‘‘75 percent’’; 
and 
(ii) by redesignating subparagraph 
(B) as subparagraph (C) and inserting 
after subparagraph (A) the following: 
‘‘(B) LOAN GUARANTEES.— 
‘‘(i) 
MAXIMUM
AMOUNT.—The 
amount of a loan guaranteed under this 
section shall not exceed $25,000,000. 
‘‘(ii) MAXIMUM PERCENTAGE.—A loan 
guaranteed under this section shall not ex-
ceed 75 percent of the cost of the activity 
funded under subsection (a).’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(3) PRIORITIZATION.—The Secretary shall 
give the greatest priority for grants under subsection 
(a) to activities for which the least percentage of the 
total cost of such activities is requested by the farm-
er, rancher, other agricultural producer, or rural 
small business.’’.
262 
(5) by redesignating subsection (e) as sub-
section (g) and striking subsection (f); 
(6) by inserting after subsection (d) the fol-
lowing new subsections: 
‘‘(e) FEASIBILITY STUDIES.— 
‘‘(1) IN GENERAL.—The Secretary may provide 
assistance to a farmer, rancher, other agricultural 
producer, or rural small business to conduct a feasi-
bility study of a project for which assistance may be 
provided under this section. 
‘‘(2) LIMITATION.—The Secretary shall use not 
more than 10 percent of the funds made available to 
carry out this section to provide assistance described 
in paragraph (1). 
‘‘(3) CRITERIA.—The Secretary shall issue reg-
ulations establishing criteria for the receipt of assist-
ance under this subsection. 
‘‘(4) AVOIDANCE
OF
DUPLICATIVE
ASSIST-
ANCE.—An farmer, rancher, other agricultural pro-
ducer, or rural small business that receives assist-
ance to carry out a feasibility study for a project 
under this subsection shall not be eligible for assist-
ance to carry out a feasibility study for the project 
under any other provision of law. 
‘‘(f) SMALL ACTIVITIES.—
263 
‘‘(1) LIMITATION ON USE OF FUNDS.—The Sec-
retary shall use not less than 15 percent of the 
funds made available under subsection (h) to provide 
grants for activities that have a cost of $50,000 or 
less. 
‘‘(2) EXCEPTION.—Beginning on the first day 
of the third quarter of a fiscal year, the limitation 
on the use of funds under paragraph (1) shall not 
apply to funds made available under subsection (h) 
for such fiscal year.’’; and 
(7) by adding at the end the following new sub-
section: 
‘‘(h) FUNDING.— 
‘‘(1) IN GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary of Agri-
culture shall make available to carry out this sec-
tion— 
‘‘(A) $40,000,000 for fiscal year 2008; 
‘‘(B) $60,000,000 for fiscal year 2009; 
‘‘(C) $75,000,000 for fiscal year 2010; 
‘‘(D) $100,000,000 for fiscal year 2011; 
and 
‘‘(E) $150,000,000 for fiscal year 2012. 
‘‘(3) CONTINUATION OF OPERATIONS.—
264 
‘‘(A) FUNDING.—The Secretary shall con-
tinue to carry out this section at the rate of op-
eration in effect on September 30, 2012, from 
sums in the Treasury not otherwise appro-
priated, through September 30, 2017. 
‘‘(B) AUTHORITY.—The program and au-
thorities provided under this section shall con-
tinue in force and effect through September 30, 
2017.’’. 
SEC. 5007. BIOMASS RESEARCH AND DEVELOPMENT ACT 
OF 2000. 
(a) RESTATEMENT OF ACT.—Section 9008 of the 
Farm Security and Rural Investment Act of 2002 (116 
Stat. 486) is amended to read as follows: 
‘‘SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT 
OF 2000. 
‘‘(a) SHORT TITLE.—This section may be cited as the 
‘Biomass Research and Development Act of 2000’. 
‘‘(b) FINDINGS.—Congress finds that— 
‘‘(1) conversion of biomass into biobased indus-
trial products offers outstanding potential for benefit 
to the national interest through— 
‘‘(A) improved strategic security and bal-
ance of payments; 
‘‘(B) healthier rural economies;
265 
‘‘(C) improved environmental quality; 
‘‘(D) near-zero net greenhouse gas emis-
sions; 
‘‘(E) technology export; and 
‘‘(F) sustainable resource supply; 
‘‘(2) the key technical challenges to be overcome 
in order for biobased industrial products to be cost- 
competitive are finding new technology and reducing 
the cost of technology for converting biomass into 
desired biobased industrial products; 
‘‘(3) biobased fuels have the clear potential to 
be sustainable, low cost, and high performance fuels 
that are compatible with both current and future 
transportation systems and provide near-zero net 
greenhouse gas emissions; 
‘‘(4) biobased chemicals have the clear potential 
for environmentally benign product life cycles; 
‘‘(5) biobased power can— 
‘‘(A) provide environmental benefits; 
‘‘(B) promote rural economic development; 
and 
‘‘(C) diversify energy resource options; 
‘‘(6) many biomass feedstocks suitable for in-
dustrial processing show the clear potential for sus-
266 
tainable production, in some cases resulting in im-
proved soil fertility and carbon sequestration; 
‘‘(7)(A) grain processing mills are biorefineries 
that produce a diversity of useful food, chemical, 
feed, and fuel products; and 
‘‘(B) technologies that result in further diver-
sification of the range of value-added biobased in-
dustrial products can meet a key need for the grain 
processing industry; 
‘‘(8)(A) cellulosic feedstocks are attractive be-
cause of their low cost and widespread availability; 
and 
‘‘(B) research resulting in cost-effective tech-
nology to overcome the recalcitrance of cellulosic bio-
mass would allow biorefineries to produce fuels and 
bulk chemicals on a very large scale, with a commen-
surately large realization of the benefit described in 
paragraph (1); 
‘‘(9) research into the fundamentals to under-
stand important mechanisms of biomass conversion 
can be expected to accelerate the application and ad-
vancement of biomass processing technology by— 
‘‘(A) increasing the confidence and speed 
with which new technologies can be scaled up; 
and
267 
‘‘(B) giving rise to processing innovations 
based on new knowledge; 
‘‘(10) the added utility of biobased industrial 
products developed through improvements in proc-
essing technology would encourage the design of 
feedstocks that would meet future needs more effec-
tively; 
‘‘(11) the creation of value-added biobased in-
dustrial products would create new jobs in construc-
tion, manufacturing, and distribution, as well as new 
higher-valued exports of products and technology; 
‘‘(12)(A) because of the relatively short-term 
time horizon characteristic of private sector invest-
ments, and because many benefits of biomass proc-
essing are in the national interest, it is appropriate 
for 
the 
Federal 
Government 
to 
provide 
precommercial investment in fundamental research 
and research-driven innovation in the biomass proc-
essing area; and 
‘‘(B) such an investment would provide a valu-
able complement to ongoing and past governmental 
support in the biomass processing area; and 
‘‘(13) several prominent studies, including stud-
ies by the President’s Committee of Advisors on
268 
Science and Technology and the National Research 
Council— 
‘‘(A) support the potential for large re-
search-driven advances in technologies for pro-
duction of biobased industrial products as well 
as associated benefits; and 
‘‘(B) document the need for a focused, in-
tegrated, and innovation-driven research effort 
to provide the appropriate progress in a timely 
manner. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) ADVISORY COMMITTEE.—The term ‘Advi-
sory Committee’ means the Biomass Research and 
Development Technical Advisory Committee estab-
lished by this section. 
‘‘(2) BIOBASED
FUEL.—The term ‘biobased 
fuel’ means any transportation or heating fuel pro-
duced from biomass. 
‘‘(3) BIOBASED PRODUCT.—The term ‘biobased 
product’ means an industrial product (including 
chemicals, materials, and polymers) produced from 
biomass, or a commercial or industrial product (in-
cluding animal feed and electric power) derived in 
connection with the conversion of biomass to fuel.
269 
‘‘(4) BIOMASS.—The term ‘biomass’ means any 
organic matter that is available on a renewable or 
recurring basis, including agricultural crops and 
trees, wood and wood wastes and residues, plants 
(including aquatic plants), grasses, residues, fibers, 
and animal wastes, municipal wastes, and other 
waste materials. 
‘‘(5) BOARD.—The term ‘Board’ means the 
Biomass Research and Development Board estab-
lished by this section. 
‘‘(6) DEMONSTRATION.—The term ‘demonstra-
tion’ means demonstration of technology in a pilot 
plant or semi-works scale facility. 
‘‘(7) INITIATIVE.—The term ‘Initiative’ means 
the Biomass Research and Development Initiative 
established under this section. 
‘‘(8) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given the term in section 102(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1002(a)). 
‘‘(9) NATIONAL LABORATORY.—The term ‘Na-
tional Laboratory’ has the meaning given that term 
in section 2 of the Energy Policy Act of 2005.
270 
‘‘(10) POINT OF CONTACT.—The term ‘point of 
contact’ means a point of contact designated under 
this section. 
‘‘(d) COOPERATION AND COORDINATION IN BIOMASS 
RESEARCH AND DEVELOPMENT.— 
‘‘(1) IN
GENERAL.—The Secretary of Agri-
culture and the Secretary of Energy shall cooperate 
with respect to, and coordinate, policies and proce-
dures that promote research and development lead-
ing to the production of biobased fuels and biobased 
products. 
‘‘(2) POINTS OF CONTACT.— 
‘‘(A) IN
GENERAL.—To coordinate re-
search and development programs and activities 
relating to biobased fuels and biobased products 
that are carried out by their respective Depart-
ments— 
‘‘(i) the Secretary of Agriculture shall 
designate, as the point of contact for the 
Department of Agriculture, an officer of 
the Department of Agriculture appointed 
by the President to a position in the De-
partment before the date of the designa-
tion, by and with the advice and consent of 
the Senate; and
271 
‘‘(ii) the Secretary of Energy shall 
designate, as the point of contact for the 
Department of Energy, an officer of the 
Department of Energy appointed by the 
President to a position in the Department 
before the date of the designation, by and 
with the advice and consent of the Senate. 
‘‘(B) DUTIES.—The points of contact shall 
jointly— 
‘‘(i) assist in arranging interlabora-
tory and site-specific supplemental agree-
ments 
for 
research 
and 
development 
projects relating to biobased fuels and 
biobased products; 
‘‘(ii) serve as cochairpersons of the 
Board; 
‘‘(iii) administer the Initiative; and 
‘‘(iv) respond in writing to each rec-
ommendation of the Advisory Committee 
made under subsection (f). 
‘‘(e) BIOMASS
RESEARCH
AND
DEVELOPMENT 
BOARD.— 
‘‘(1) ESTABLISHMENT.—There is established 
the Biomass Research and Development Board, 
which shall supersede the Interagency Council on
272 
Biobased Products and Bioenergy established by Ex-
ecutive Order No. 13134, to coordinate programs 
within and among departments and agencies of the 
Federal Government for the purpose of promoting 
the use of biobased fuels and biobased products by— 
‘‘(A) maximizing the benefits deriving from 
Federal grants and assistance; and 
‘‘(B) bringing coherence to Federal stra-
tegic planning. 
‘‘(2) MEMBERSHIP.—The Board shall consist 
of— 
‘‘(A) the point of contact of the Depart-
ment of Energy designated under subsection 
(d), who shall serve as cochairperson of the 
Board; 
‘‘(B) the point of contact of the Depart-
ment of Agriculture designated under sub-
section (d), who shall serve as cochairperson of 
the Board; 
‘‘(C) a senior officer of each of the Depart-
ment of the Interior, the Environmental Protec-
tion Agency, the National Science Foundation, 
and the Office of Science and Technology Pol-
icy, each of whom shall—
273 
‘‘(i) be appointed by the head of the 
respective agency; and 
‘‘(ii) have a rank that is equivalent to 
the rank of the points of contact; and 
‘‘(D) at the option of the Secretary of Ag-
riculture and the Secretary of Energy, other 
members appointed by the Secretaries (after 
consultation with the members described in sub-
paragraphs (A) through (C)). 
‘‘(3) DUTIES.—The Board shall— 
‘‘(A) coordinate research and development 
activities relating to biobased fuels and biobased 
products— 
‘‘(i) between the Department of Agri-
culture and the Department of Energy; 
and 
‘‘(ii) with other departments and 
agencies of the Federal Government; 
‘‘(B) provide recommendations to the 
points of contact concerning administration of 
this title; 
‘‘(C) ensure that— 
‘‘(i) solicitations are open and com-
petitive with awards made annually; and
274 
‘‘(ii) objectives and evaluation criteria 
of the solicitations are clearly stated and 
minimally prescriptive, with no areas of 
special interest; and 
‘‘(D) ensure that the panel of scientific 
and technical peers assembled under subsection 
(g) to review proposals is composed predomi-
nantly of independent experts selected from out-
side the Departments of Agriculture and En-
ergy. 
‘‘(4) FUNDING.—Each agency represented on 
the Board is encouraged to provide funds for any 
purpose under this section. 
‘‘(5) MEETINGS.—The Board shall meet at 
least quarterly to enable the Board to carry out the 
duties of the Board under paragraph (3). 
‘‘(f) BIOMASS RESEARCH AND DEVELOPMENT TECH-
NICAL ADVISORY COMMITTEE.— 
‘‘(1) ESTABLISHMENT.—There is established 
the Biomass Research and Development Technical 
Advisory Committee, which shall supersede the Advi-
sory Committee on Biobased Products and Bio-
energy established by Executive Order No. 13134—
275 
‘‘(A) to advise the Secretary of Energy, the 
Secretary of Agriculture, and the points of con-
tact concerning— 
‘‘(i) the technical focus and direction 
of requests for proposals issued under the 
Initiative; and 
‘‘(ii) procedures for reviewing and 
evaluating the proposals; 
‘‘(B) to facilitate consultations and part-
nerships among Federal and State agencies, ag-
ricultural producers, industry, consumers, the 
research community, and other interested 
groups to carry out program activities relating 
to the Initiative; and 
‘‘(C) to evaluate and perform strategic 
planning on program activities relating to the 
Initiative. 
‘‘(2) MEMBERSHIP.— 
‘‘(A) IN
GENERAL.—The Advisory Com-
mittee shall consist of— 
‘‘(i) an individual affiliated with the 
biofuels industry; 
‘‘(ii) an individual affiliated with the 
biobased industrial and commercial prod-
ucts industry;
284 
‘‘(C) a Federal research agency; 
‘‘(D) a State research agency; 
‘‘(E) a private sector entity; 
‘‘(F) a nonprofit organization; or 
‘‘(G) a consortium of two or more entities 
described in subparagraphs (A) through (F). 
‘‘(7) ADMINISTRATION.— 
‘‘(A) IN
GENERAL.—After consultation 
with the Board, the points of contact shall— 
‘‘(i) publish annually one or more 
joint requests for proposals for grants, 
contracts, and assistance under this sub-
section; 
‘‘(ii) require that grants, contracts, 
and assistance under this section be 
awarded competitively, on the basis of 
merit, after the establishment of proce-
dures that provide for scientific peer review 
by an independent panel of scientific and 
technical peers; and 
‘‘(iii) give some preference to applica-
tions that— 
‘‘(I) involve a consortia of experts 
from multiple institutions;