H. R. 2419—401 
subclause (I) if the appropriate Secretary deter-
mines the reduction to be necessary and appro-
priate. 
‘‘(ii) 
DEMONSTRATION
AND
COMMERCIAL 
PROJECTS.—The non-Federal share of the cost of a dem-
onstration or commercial project under this section 
shall be not less than 50 percent. 
‘‘(C) TECHNOLOGY AND INFORMATION TRANSFER.—The 
Secretary of Agriculture and the Secretary of Energy shall 
ensure that applicable research results and technologies 
from the Initiative are— 
‘‘(i) adapted, made available, and disseminated, 
as appropriate; and 
‘‘(ii) included in the best practices database estab-
lished under section 1672C(e) of the Food, Agriculture, 
Conservation, and Trade Act of 1990. 
‘‘(f) ADMINISTRATIVE SUPPORT AND FUNDS.— 
‘‘(1) IN GENERAL.—The Secretary of Energy and the Sec-
retary of Agriculture may provide such administrative support 
and funds of the Department of Energy and the Department 
of Agriculture to the Board and the Advisory Committee as 
are necessary to enable the Board and the Advisory Committee 
to carry out their duties under this section. 
‘‘(2) OTHER AGENCIES.—The heads of the agencies referred 
to in subsection (c)(2)(B), and the other members of the Board 
appointed under subsection (c)(2)(C), are encouraged to provide 
administrative support and funds of their respective agencies 
to the Board and the Advisory Committee. 
‘‘(3) LIMITATION.—Not more than 4 percent of the amount 
made available for each fiscal year under subsection (h) may 
be used to pay the administrative costs of carrying out this 
section. 
‘‘(g) REPORTS.—For each fiscal year for which funds are made 
available to carry out this section, the Secretary of Energy and 
the Secretary of Agriculture shall jointly submit to Congress a 
detailed report on— 
‘‘(1) the status and progress of the Initiative, including 
a report from the Advisory Committee on whether funds appro-
priated for the Initiative have been distributed and used in 
a manner that is consistent with the objectives and require-
ments of this section; 
‘‘(2) the general status of cooperation and research and 
development efforts carried out at each agency with respect 
to biofuels and biobased products; and 
‘‘(3) the plans of the Secretary of Energy and the Secretary 
of Agriculture for addressing concerns raised in the report, 
including concerns raised by the Advisory Committee. 
‘‘(h) FUNDING.— 
‘‘(1) MANDATORY FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary of Agriculture shall use to 
carry out this section, to remain available until expended— 
‘‘(A) $20,000,000 for fiscal year 2009; 
‘‘(B) $28,000,000 for fiscal year 2010; 
‘‘(C) $30,000,000 for fiscal year 2011; and 
‘‘(D) $40,000,000 for fiscal year 2012.
H. R. 2419—402 
‘‘(2) DISCRETIONARY FUNDING.—In addition to any other 
funds made available to carry out this section, there is author-
ized to be appropriated to carry out this section $35,000,000 
for each of fiscal years 2009 through 2012. 
‘‘SEC. 9009. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE RURAL COMMUNITY.—The term ‘eligible rural 
community’ means a community located in a rural area (as 
defined in section 343(a)(13)(A) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1991(a)(13)(A))). 
‘‘(2) INITIATIVE.—The term ‘Initiative’ means the Rural 
Energy Self-Sufficiency Initiative established under this section. 
‘‘(3) INTEGRATED RENEWABLE ENERGY SYSTEM.—The term 
‘integrated renewable energy system’ means a community-wide 
energy system that— 
‘‘(A) reduces conventional energy use; and 
‘‘(B) increases the use of energy from renewable 
sources. 
‘‘(b) ESTABLISHMENT.—The Secretary shall establish a Rural 
Energy Self-Sufficiency Initiative to provide financial assistance 
for the purpose of enabling eligible rural communities to substan-
tially increase the energy self-sufficiency of the eligible rural 
communities. 
‘‘(c) GRANT ASSISTANCE.— 
‘‘(1) IN GENERAL.—The Secretary shall make grants avail-
able under the Initiative to eligible rural communities to carry 
out an activity described in paragraph (2). 
‘‘(2) USE OF GRANT FUNDS.—An eligible rural community 
may use a grant— 
‘‘(A) to conduct an energy assessment that assesses 
the total energy use of all energy users in the eligible 
rural community; 
‘‘(B) to formulate and analyze ideas for reducing energy 
usage by the eligible rural community from conventional 
sources; and 
‘‘(C) to develop and install an integrated renewable 
energy system. 
‘‘(3) GRANT SELECTION.— 
‘‘(A) APPLICATION.—To be considered for a grant, an 
eligible rural community shall submit an application to 
the Secretary that describes the ways in which the commu-
nity would use the grant to carry out an activity described 
in paragraph (2). 
‘‘(B) PREFERENCE.—The Secretary shall give preference 
to those applications that propose to carry out an activity 
in coordination with— 
‘‘(i) institutions of higher education or nonprofit 
foundations of institutions of higher education; 
‘‘(ii) Federal, State, or local government agencies; 
‘‘(iii) public or private power generation entities; 
or 
‘‘(iv) government entities with responsibility for 
water or natural resources. 
‘‘(4) REPORT.—An eligible rural community receiving a 
grant under the Initiative shall submit to the Secretary a 
report on the project of the eligible rural community.
H. R. 2419—403 
‘‘(5) COST-SHARING.—The amount of a grant under the Ini-
tiative shall not exceed 50 percent of the cost of the activities 
described in the application. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $5,000,000 for each 
of fiscal years 2009 through 2012. 
‘‘SEC. 9010. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIOENERGY PRO-
DUCERS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BIOENERGY.—The term ‘bioenergy’ means fuel grade 
ethanol and other biofuel. 
‘‘(2) BIOENERGY PRODUCER.—The term ‘bioenergy producer’ 
means a producer of bioenergy that uses an eligible commodity 
to produce bioenergy under this section. 
‘‘(3) ELIGIBLE COMMODITY.—The term ‘eligible commodity’ 
means a form of raw or refined sugar or in-process sugar 
that is eligible to be marketed in the United States for human 
consumption or to be used for the extraction of sugar for human 
consumption. 
‘‘(4) ELIGIBLE ENTITY.—The term ‘eligible entity’ means an 
entity located in the United States that markets an eligible 
commodity in the United States. 
‘‘(b) FEEDSTOCK FLEXIBILITY PROGRAM.— 
‘‘(1) IN GENERAL.— 
‘‘(A) PURCHASES
AND
SALES.—For each of the 2008 
through 2012 crops, the Secretary shall purchase eligible 
commodities from eligible entities and sell such commod-
ities to bioenergy producers for the purpose of producing 
bioenergy in a manner that ensures that section 156 of 
the Federal Agriculture Improvement and Reform Act (7 
U.S.C. 7272) is operated at no cost to the Federal Govern-
ment by avoiding forfeitures to the Commodity Credit Cor-
poration. 
‘‘(B) COMPETITIVE PROCEDURES.—In carrying out the 
purchases and sales required under subparagraph (A), the 
Secretary shall, to the maximum extent practicable, use 
competitive procedures, including the receiving, offering, 
and accepting of bids, when entering into contracts with 
eligible entities and bioenergy producers, provided that 
such procedures are consistent with the purposes of 
subparagraph (A). 
‘‘(C) LIMITATION.—The purchase and sale of eligible 
commodities under subparagraph (A) shall only be made 
in crop years in which such purchases and sales are nec-
essary to ensure that the program authorized under section 
156 of the Federal Agriculture Improvement and Reform 
Act (7 U.S.C. 7272) is operated at no cost to the Federal 
Government by avoiding forfeitures to the Commodity 
Credit Corporation. 
‘‘(2) NOTICE.— 
‘‘(A) IN
GENERAL.—As soon as practicable after the 
date of enactment of the Food, Conservation, and Energy 
Act of 2008 and each September 1 thereafter through Sep-
tember 1, 2012, the Secretary shall provide notice to eligible 
entities and bioenergy producers of the quantity of eligible 
commodities that shall be made available for purchase
H. R. 2419—404 
and sale for the crop year following the date of the notice 
under this section. 
‘‘(B) REESTIMATES.—Not later than the January 1, 
April 1, and July 1 of the calendar year following the 
date of a notice under subparagraph (A), the Secretary 
shall reestimate the quantity of eligible commodities deter-
mined under subparagraph (A), and provide notice and 
make purchases and sales based on such reestimates. 
‘‘(3) COMMODITY CREDIT CORPORATION INVENTORY.— 
‘‘(A) DISPOSITIONS.— 
‘‘(i) BIOENERGY AND GENERALLY.—Except as pro-
vided in clause (ii), to the extent that an eligible com-
modity is owned and held in inventory by the Com-
modity Credit Corporation (accumulated pursuant to 
the program authorized under section 156 of the Fed-
eral Agriculture Improvement and Reform Act (7 
U.S.C. 7272)), the Secretary shall— 
‘‘(I) sell the eligible commodity to bioenergy 
producers under this section consistent with para-
graph (1)(C); 
‘‘(II) dispose of the eligible commodity in 
accordance with section 156(f)(2) of that Act; or 
‘‘(III) otherwise dispose of the eligible com-
modity through the buyback of certificates of quota 
entry. 
‘‘(ii) PRESERVATION
OF
OTHER
AUTHORITIES.— 
Nothing in this section limits the use of other authori-
ties for the disposition of an eligible commodity held 
in the inventory of the Commodity Credit Corporation 
for nonfood use or otherwise in a manner that does 
not increase the net quantity of sugar available for 
human consumption in the United States market, con-
sistent with section 156(f)(1) of the Federal Agriculture 
Improvement and Reform Act (7 U.S.C. 7272(f)(1)). 
‘‘(B) 
EMERGENCY
SHORTAGES.—Notwithstanding 
subparagraph (A), if there is an emergency shortage of 
sugar for human consumption in the United States market 
that is caused by a war, flood, hurricane, or other natural 
disaster, or other similar event, the Secretary may dispose 
of an eligible commodity that is owned and held in inven-
tory by the Commodity Credit Corporation (accumulated 
pursuant to the program authorized under section 156 
of the Federal Agriculture Improvement and Reform Act 
(7 U.S.C. 7272)) through disposition as authorized under 
section 156(f) of that Act or through the use of any other 
authority of the Commodity Credit Corporation. 
‘‘(4) TRANSFER RULE; STORAGE FEES.— 
‘‘(A) GENERAL
TRANSFER
RULE.—Except with regard 
to emergency dispositions under paragraph (3)(B) and as 
provided in subparagraph (C), the Secretary shall ensure 
that bioenergy producers that purchase eligible commod-
ities pursuant to this section take possession of the eligible 
commodities within 30 calendar days of the date of such 
purchase from the Commodity Credit Corporation. 
‘‘(B) PAYMENT OF STORAGE FEES PROHIBITED.— 
‘‘(i) IN GENERAL.—The Secretary shall, to the max-
imum extent practicable, carry out this section in a