560 
‘‘(A) FEDERAL PROCUREMENT.—There are 
authorized to be appropriated $1,000,000 for 
each of fiscal years 2008 through 2013 to imple-
ment the provisions of this section other than 
subsection (h). 
‘‘(B) LABELING.—There are authorized to 
be appropriated $1,000,000 for each of fiscal 
years 2008 through 2013 to implement sub-
section (h) of this section.’’. 
(2) FUNDING FOR TESTING OF BIOBASED PROD-
UCTS.—Paragraph (2)(A) of such section is amended 
by striking ‘‘$1,000,000 for each of fiscal years 2002 
through 2007’’ and inserting ‘‘$2,000,000 for each of 
fiscal years 2008 through 2013’’. 
(e) REPORT REQUIREMENTS.— 
(1) REPORT BY AGENCIES TO ADMINISTRATOR 
FOR FEDERAL PROCUREMENT POLICY.—Subsection (f) 
of section 9002 of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 8102) is amended— 
(A) by striking ‘‘The Office of’’ and insert-
ing ‘‘(1) The Administrator for’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) To assist the Administrator for Federal Procure-
ment Policy in preparing the report to Congress required 
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under paragraph (1), each procuring agency each year shall 
submit to the Administrator a report covering the following: 
‘‘(A) Actions taken to implement subsections (c), 
(d), and (g) of this section. 
‘‘(B) The results of the annual review and moni-
toring program established under subsection (g)(2)(C). 
‘‘(C) The number of contracts entered into by the 
agency during the year covered by the report that in-
clude the procurement of biobased products. 
‘‘(D) A list of the biobased products procured by 
the agency during the year covered by the report.’’. 
(2) REPORT BY SECRETARY TO CONGRESS ON IM-
PLEMENTATION
OF
SECTION.—Section 9002 of the 
Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8102) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(l) REPORT BY SECRETARY TO CONGRESS ON IMPLE-
MENTATION OF SECTION.—Not later than six months after 
the date of the enactment of the Farm, Nutrition, and Bio-
energy Act of 2007, and each year thereafter, the Secretary 
shall submit to Congress a report on the implementation 
of this section. The report shall include the following: 
‘‘(1) A comprehensive management plan defining 
tasks, milestones, and funding allocations for fully 
implementing this section. 
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‘‘(2) A list of items designated under subsection 
(e)(1)(A) whose procurement will carry out the objec-
tives of this section, with associated cost and perform-
ance data. 
‘‘(3) Information on the current status of imple-
mentation of the procurement preference under this 
section, including the procurement program of each 
Federal agency under subsection (g), and the vol-
untary labeling program under subsection (h).’’. 
(f) REPEAL OF SUBSECTION.—Subsection (b) of sec-
tion 9002 of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8102(b)) is hereby repealed. 
SEC. 9003. LOAN GUARANTEES FOR BIOREFINERIES AND 
BIOFUEL PRODUCTION PLANTS. 
Section 9003 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8103) is amended— 
(1) in the section heading, by inserting ‘‘; LOAN 
GUARANTEES
FOR
BIOREFINERIES
AND 
BIOFUEL
PRODUCTION
PLANTS’’ 
after 
‘‘GRANTS’’; 
(2) in subsection (b)(2)(A), by striking ‘‘and’’ the 
1st place it appears and inserting ‘‘or’’; 
(3) in subsection (c), by redesignating sub-
sections (d) through (h) as subsections (e) through (i), 
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563 
respectively, and inserting after subsection (c) the fol-
lowing: 
‘‘(d) LOAN GUARANTEES.— 
‘‘(1) IN
GENERAL.—The Secretary shall make 
loan guarantees to eligible entities to assist in paying 
the cost of development and construction of biorefin-
eries and biofuel production plants (including retro-
fitting) to carry out projects to demonstrate the com-
mercial viability of 1 or more processes for converting 
biomass to fuels or chemicals. 
‘‘(2) LIMITATIONS.— 
‘‘(A) MAXIMUM
PERCENTAGE
OF
LOAN 
GUARANTEED.—A loan guarantee under para-
graph (1) shall be for not more than 90 percent 
of the principal and interest due on the loan. 
‘‘(B) TOTAL AMOUNTS GUARANTEED.—The 
total amount of principal and interest guaran-
teed under paragraph (1) shall not exceed— 
‘‘(i) $1,000,000,000, in the case of 
loans 
valued 
at 
not 
more 
than 
$100,000,000; or 
‘‘(ii) $1,000,000,000, in the case of 
loans valued at more than $100,000,000 but 
not more than $250,000,000. 
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564 
‘‘(C) MAXIMUM
TERM
OF
LOAN
GUARAN-
TEED.—The Secretary shall determine the max-
imum term of a loan guarantee provided under 
paragraph (1).’’; 
(4) in subsection (f) (as so redesignated)— 
(A) in paragraph (2)(B)— 
(i) by striking ‘‘and’’ at the end of 
clause (viii); 
(ii) by striking the period at the end of 
clause (ix) and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(x) The level of local ownership.’’; and 
(B) by adding at the end the following: 
‘‘(3) PRIORITY
IN
AWARDING
LOAN
GUARAN-
TEES.—In selecting projects to receive loan guaran-
tees under subsection (d), the Secretary shall give pri-
ority to projects based on the criteria set forth in 
paragraph (2)(B) of this subsection.’’; and 
(5) in subsection (i) (as so redesignated), by 
striking ‘‘2007’’ and inserting ‘‘2012’’. 
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565 
SEC. 9004. 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 strik-
ing ‘‘2007’’ and inserting ‘‘2012’’. 
SEC. 9005. 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 inserting 
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 period 
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’’; 
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(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 farmer, 
rancher, other agricultural producer, or rural small 
business.’’. 
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567 
(5) by redesignating subsections (e) and (f) as 
subsection (g) and (h), respectively; and 
(6) by inserting after subsection (d) the following 
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 regu-
lations establishing criteria for the receipt of assist-
ance under this subsection. 
‘‘(4) AVOIDANCE OF DUPLICATIVE ASSISTANCE.— 
An farmer, rancher, other agricultural producer, or 
rural small business that receives assistance to carry 
out a feasibility study for a project under this sub-
section shall not be eligible for assistance to carry out 
a feasibility study for the project under any other 
provision of law. 
‘‘(f) SMALL ACTIVITIES.— 
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568 
‘‘(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.’’. 
SEC. 9006. 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; 
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‘‘(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 de-
sired 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 transpor-
tation 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 indus-
trial processing show the clear potential for sustain-
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able production, in some cases resulting in improved 
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 indus-
trial products can meet a key need for the grain proc-
essing 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 
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‘‘(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 feed-
stocks that would meet future needs more effectively; 
‘‘(11) the creation of value-added biobased indus-
trial products would create new jobs in construction, 
manufacturing, and distribution, as well as new high-
er-valued exports of products and technology; 
‘‘(12)(A) because of the relatively short-term time 
horizon characteristic of private sector investments, 
and because many benefits of biomass processing are 
in the national interest, it is appropriate for the Fed-
eral Government to provide precommercial investment 
in fundamental research and research-driven innova-
tion in the biomass processing 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 
Science and Technology and the National Research 
Council— 
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