‘‘(B) any organic material grown or col-
lected for the purpose of being converted to en-
ergy (including aquatic plants); 
‘‘(C) any organic byproduct of agriculture 
and forestry (including wastes from food pro-
duction and processing, used vegetable oil, mill 
residues, and storm-, insect- and diseased-dam-
aged crops and trees) that can be converted 
into energy; or 
‘‘(D) any waste material that can be con-
verted to energy.’’. 
(c) CLEAN AIR ACT.— 
(1) So much of section 211(o) of the Clean Air 
Act (42 U.S.C. 7545(o)) as precedes subparagraph 
(C) of paragraph (1) is amended to read as follows: 
‘‘(o) RENEWABLE FUEL PROGRAM.— 
‘‘(1) DEFINITIONS.—In this section: 
‘‘(A) CELLULOSIC
BIOMASS
ETHANOL.— 
The term ‘cellulosic biomass ethanol’ means 
ethanol, or any other alcohol- or oxygenate- 
based fuel and related co-product derived di-
rectly from any lignocellulosic or hemicellulosic 
matter that is available on a renewable or re-
curring basis, and is not grown for food or feed, 
including— 
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‘‘(i) any plant material grown or col-
lected for the purpose of being converted to 
energy (including aquatic plants); 
‘‘(ii) any organic byproduct or residue 
from agriculture and forestry (including 
wastes from food production and proc-
essing, used vegetable oil, mill residues, 
and storm-, insect- and diseased-damaged 
crops and trees) that can be converted into 
energy; or 
‘‘(iii) Any waste material that can be 
converted to energy and is derived from— 
‘‘(I) vegetative waste material 
(including wood waste and wood resi-
dues); 
‘‘(II) invasive plants; 
‘‘(III) fibers; 
‘‘(IV) animal waste and byprod-
ucts; 
‘‘(V) non-recyclable paper; and 
‘‘(VI) municipal solid waste. 
‘‘(B) WASTE
DERIVED
ETHANOL.—The 
term ‘waste derived ethanol’ means ethanol, or 
any other alcohol- or oxygenate-based fuel and 
related co-product derived from— 
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‘‘(i) animal waste and byproducts, in-
cluding fats, oils, greases, offal, methane 
gas, and manure; 
‘‘(ii) municipal solid waste, including 
sludges and oils derived from wastewater 
and the treatment of wastewater; or 
‘‘(iii) other waste materials.’’. 
(2) Section 211(r)(4)(B) of the Clean Air Act 
(42 U.S.C. 7545(r)) is amended to read as follows: 
‘‘(B) The term ‘renewable biomass’ means 
any organic material that is available on a re-
newable or recurring basis. 
‘‘(i) INCLUSIONS.—The term ‘renew-
able biomass’ includes— 
‘‘(I) any renewable plant material 
that can be grown or collected for the 
purpose of being converted to energy 
(including aquatic plants, but not in-
cluding those portions of a plant 
grown for food or feed); 
‘‘(II) any organic byproduct or 
residue from agriculture and forestry 
(including wastes from food produc-
tion and processing, used vegetable 
oil, mill residues, and storm-, insect- 
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and 
diseased-damaged 
crops 
and 
trees) that can be converted into en-
ergy; or 
‘‘(III) Any waste material that 
can be converted to energy and is de-
rived from— 
‘‘(aa) vegetative waste mate-
rial (including wood waste and 
wood residues); 
‘‘(bb) invasive plants; 
‘‘(cc) fibers; 
‘‘(dd) animal waste and by-
products (including fats, oils, 
greases, offal, methane gas, and 
manure); 
‘‘(ee) non-recyclable paper; 
and 
‘‘(ff) municipal solid waste 
(including sludges and oils de-
rived from wastewater and the 
treatment of wastewater). 
‘‘(ii) EXCLUSIONS.—The term ‘renew-
able biomass’ does not include old-growth 
timber of a forest from the late succes-
sional stage of forest development, but 
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does include storm-, insect- or disease- 
damaged trees that can be removed with-
out damage to the forest.’’. 
(d) ENERGY TITLE DEFINITIONS OF THE FARM SE-
CURITY AND RURAL INVESTMENT ACT OF 2002.—Section 
9001 of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8101) is amended— 
(1) in paragraph (3), to read as follows: 
‘‘(3) BIOMASS.—The term ‘biomass’ means— 
‘‘(A) any organic material that is available 
on a renewable or recurring basis; 
‘‘(B) any organic material grown or col-
lected for the purpose of being converted to en-
ergy (including aquatic plants); 
‘‘(C) any organic byproduct of agriculture 
and forestry (including wastes from food pro-
duction and processing, used vegetable oil, mill 
residues, and storm-damaged, insect-damaged, 
and diseased-damaged crops and trees) that can 
be converted into energy; or 
‘‘(D) any waste material that can be con-
verted to energy and is derived from— 
‘‘(i) vegetative waste material (includ-
ing wood waste and wood residues); 
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‘‘(ii) invasive plants (including aquatic 
plants); 
‘‘(iii) fibers; 
‘‘(iv) animal waste and byproducts 
(including fats, oils, greases, offal, meth-
ane gas, and manure); 
‘‘(v) non-recyclable paper; and 
‘‘(vi) municipal solid waste (including 
sludges and oils derived from wastewater 
and the treatment of wastewater).’’; 
(2) by redesignating paragraphs (4) through 
(6) as paragraphs (5) through (7); and 
(3) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) CELLULOSIC BIOMASS, CELLULOSIC FEED-
STOCK, 
LIGNOCELLULOSIC
BIOMASS
AND 
LIGNOCELLULOSIC
FEEDSTOCK.—The terms ‘cel-
lulosic biomass’, ‘cellulosic feedstock’, ‘lignocellulosic 
biomass’ and ‘lignocellulosic feedstock’ all shall be 
considered equivalent terms and shall mean any por-
tion of a plant or plant byproduct from conversion 
that is available on a renewable or recurring basis, 
and is not grown for food or feed, including the non- 
food, non-feed portions of crops, trees, forest resi-
dues, and agricultural residues, as well as any part 
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of a storm-damaged, insect-damaged, or disease- 
damaged food, feed, or tree crop.’’. 
(e) EXECUTIVE ORDER 13134.—In carrying out sec-
tion 7 of Executive Order 13134 (7 U.S.C. 8601 note) 
the following modifications shall apply to the specified pro-
visions of such Executive Order: 
(1) In lieu of subsection (a), the following shall 
apply: 
‘‘(a) The term ‘biomass’ means any organic matter 
that is available on a renewable or recurring basis. 
‘‘(1) INCLUSIONS.—The term ‘biomass’ in-
cludes— 
‘‘(A) any organic material grown or col-
lected for the purpose of being converted to en-
ergy (including aquatic plants); 
‘‘(B) any organic byproduct of agriculture 
and forestry (including wastes from food pro-
duction and processing, used vegetable oil, mill 
residues, and storm-, insect- and diseased-dam-
aged crops and trees) that can be converted 
into energy; or 
‘‘(C) any waste material that can be con-
verted to energy; 
‘‘(2) EXCLUSIONS.—The term ‘biomass’ does 
not include old-growth timber of a forest from the 
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late successional stage of forest development, but 
does include storm-, insect- or disease-damaged trees 
that can be removed without damage to the forest.’’. 
(2) The following sentence shall be treated as 
included at the end of subsection (d): ‘‘Storm-dam-
aged, insect-damaged, and disease-damaged trees 
are excluded from the limitation on their use for bio-
mass.’’. 
(f) BIOENERGY PROGRAM OF THE FARM SECURITY 
AND
RURAL
INVESTMENT
ACT
OF
2002.—Section 
9010(a) of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 8108(a)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), by striking 
‘‘and’’; and 
(B) in subparagraph (B)— 
(i) by striking the period at the end 
and inserting a semicolon; and 
(ii) by adding the following new sub-
paragraphs: 
‘‘(C) butanol; and 
‘‘(D) other similar oxygenates.’’; and 
(2) in paragraph (3), by amending subpara-
graph (B) to read as follows: 
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‘‘(B) any cellulosic feedstock or commodity 
(including crop residues, agriculture and food 
processing wastes, vegetative and wood wastes 
and residues, invasive plants, and other plant 
materials that can be used for energy produc-
tion such as hybrid poplar and switch grass).’’. 
(g) TECHNOLOGIES USING AGRICULTURAL CROPS, 
BYPRODUCTS AND RESIDUES TO PRODUCE CELLULOSIC 
ETHANOL AND OTHER BIOFUELS.— 
(1) Subsections (a) and (b) and paragraphs (1) 
and (3) of subsection (d) of section 417 of the En-
ergy Policy Act of 2005 (Public Law 109–58) are 
each amended by striking ‘‘Fischer-Tropsch trans-
portation fuels’’ and inserting ‘‘transportation fuels 
derived from any coal to liquid process that is envi-
ronmentally compatible.’’. 
(2) Subsection (c) of section 417 of the Energy 
Policy Act of 2005 (Public Law 109–58) is amended 
by— 
(A) striking ‘‘Fischer-Tropsch transpor-
tation fuel’’; and 
(B) striking the period at the end of the 
sentence and inserting a comma and the fol-
lowing ‘‘derived from any coal to liquid process 
that is environmentally compatible.’’. 
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(3) Clause (ii) of subparagraph (D) of para-
graph (1) of subsection (c) of section 1703 of the 
Energy Policy Act of 2005 (Public Law 109–58) is 
amended by striking ‘‘the Fischer-Tropsch process’’ 
and inserting ‘‘any coal to liquid process that is en-
vironmentally compatible.’’. 
SEC. 202. CELLULOSIC BIOFUEL AND EMERGING TECH-
NOLOGY LOAN GUARANTEE PROGRAM. 
Section 310B(g) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(g)) is amended by add-
ing at the end the following: 
‘‘(9) EMERGING TECHNOLOGY LOAN GUARAN-
TEES.— 
‘‘(A) IN
GENERAL.—The Secretary may 
guarantee loans made by private institutions for 
the construction of facilities to use established, 
new, or emerging technologies to process and 
convert cellulosic biomass materials directly into 
alcohol-based fuels, bio-fuels, or other commer-
cial products. 
‘‘(B) APPLICANT ASSURANCES.—An appli-
cation for a loan guarantee under this section 
shall include assurances, satisfactory to the 
Secretary, that— 
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‘‘(i) the project design has been vali-
dated through the operation of a pilot fa-
cility which can be reasonably scaled up to 
commercial size; 
‘‘(ii) the project has been subject to a 
full technical review; 
‘‘(iii) the project is covered by ade-
quate project performance guarantees (ex-
cluding process performance guarantees on 
new or emerging technologies); 
‘‘(iv) the project, with the loan guar-
antee, is economically viable; and 
‘‘(v) there is a reasonable assurance of 
repayment of the guaranteed loan. 
‘‘(C) COST-SHARING.—An application for a 
loan guarantee under this paragraph shall in-
clude binding commitments to cover, from 
sources other than Federal grants, at least 20 
percent of the total cost of the project described 
in the application. 
‘‘(D) PREFERENCES.—In making loan 
guarantees under this paragraph, the Secretary 
shall give preference to applications which con-
tain proposals that— 
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‘‘(i) meet all applicable Federal and 
State permitting requirements; 
‘‘(ii) are most likely to be successful; 
and 
‘‘(iii) are located in local markets that 
have the greatest need for the facility be-
cause of— 
‘‘(I) the availability on a renew-
able basis of sufficient quantities of 
cellulosic biomass; 
‘‘(II) opportunities to provide 
jobs and promote economic develop-
ment in rural areas; 
‘‘(III) opportunities to expand 
markets for agricultural producers 
near the facility; 
‘‘(IV) opportunities to dispose of 
cellulosic-based waste material or de-
bris; or 
‘‘(V) a high level of demand for 
alcohol-based fuels, bio-fuels, or other 
commercial products of the facility. 
‘‘(E) APPROVAL.—Not later than 90 days 
after the Secretary receives an application for a 
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loan guarantee under this section, the Secretary 
shall approve or disapprove the application. 
‘‘(F) LIMITATIONS.— 
‘‘(i) 
MAXIMUM
AMOUNT
GUARAN-
TEED.—The total amount of loan guaran-
tees made under this paragraph for a 
project described in an application ap-
proved under this paragraph shall not ex-
ceed $250,000,000. 
‘‘(ii) MAXIMUM PERCENTAGE OF LOAN 
GUARANTEED.—Except as provided in sub-
paragraph (G)(ii), a loan guarantee under 
this paragraph for a project described in 
an application approved under this para-
graph shall be for not more than 80 per-
cent of the cost of the project estimated in 
the application. 
‘‘(G) ADDITIONAL GUARANTEES.— 
‘‘(i) IN
GENERAL.—The Secretary 
may provide additional loan guarantees for 
a project described in an application ap-
proved under this paragraph, to cover up 
to 80 percent of the excess of the actual 
cost of the project over the cost of the 
project estimated in the application. 
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‘‘(ii) LIMITATIONS.— 
‘‘(I) MAXIMUM AMOUNT GUARAN-
TEED.—The total amount of addi-
tional guarantees issued under clause 
(i) of this subparagraph for a project 
shall not exceed 15 percent of the 
amount of the original guarantee pro-
vided under this paragraph for the 
project, 
subject 
to 
subparagraph 
(F)(i). 
‘‘(II) MAXIMUM PERCENTAGE OF 
LOAN
GUARANTEED.—The Secretary 
may guarantee not less than 90 per-
cent and not more than 100 percent 
of the principal and interest due on a 
loan guaranteed under clause (i). If 
the guarantee is for less than 100 
percent of the principal and interest 
due on the loan, the Secretary may 
not require the Federal Government 
to be accorded a position superior to 
the lender in the event of default. 
‘‘(H) LIMITATIONS ON AUTHORIZATION OF 
APPROPRIATIONS.—There are authorized to be 
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appropriated to the Secretary such sums as are 
necessary for the cost of providing— 
‘‘(i) $2,000,000,000 in loan guaran-
tees under this paragraph for fiscal year 
2008; 
‘‘(ii) $3,000,000,000 in loan guaran-
tees under this paragraph for fiscal year 
2009; 
‘‘(iii) $4,000,000,000 in loan guaran-
tees under this paragraph for fiscal year 
2010; 
‘‘(iv) $5,000,000,000 in loan guaran-
tees under this paragraph for fiscal year 
2011; and 
‘‘(v) $6,000,000,000 in loan guaran-
tees under this paragraph for fiscal year 
2012. 
‘‘(I) TERMINATION OF AUTHORITY.—The 
authority provided by this paragraph shall ter-
minate 10 years after the date of the enactment 
of this paragraph.’’. 
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SEC. 203. ANIMAL WASTE ENVIRONMENTAL PROTECTION 
AND BIOENERGY PRODUCTION GRANTS AND 
LOANS. 
Section 310B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932) is amended by redesig-
nating subsection (h) as subsection (i) and inserting after 
subsection (g) the following: 
‘‘(h) ANIMAL WASTE ENVIRONMENTAL PROTECTION 
AND BIOENERGY PRODUCTION GRANTS AND LOANS.— 
‘‘(1) IN GENERAL.—The Secretary may provide 
grants, loans, and loan guarantees to farm owners 
and tenants for the purchase and installation of 
equipment, and the construction of structures and 
facilities, for the processing and conversion of ani-
mal wastes and byproducts into liquid fuel, energy, 
and other commercial products. 
‘‘(2) PRIORITY.—In providing grants, loans, 
and loan guarantees under this subsection, the Sec-
retary shall give priority to producers who make a 
binding commitment to the Secretary to use the 
funds obtained thereby to install equipment or build 
structures and facilities that will lead to an improve-
ment in water quality, or that will accomplish other 
conservation objectives. 
‘‘(3) 
MAXIMUM
AMOUNTS.—The 
maximum 
amount of a grant or loan, and the maximum 
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amount the repayment of which may be guaranteed, 
under 
this 
subsection 
shall 
not 
exceed 
$10,000,000.’’. 
SEC. 204. BIOMASS FEEDSTOCK COMMERCIALIZATION INI-
TIATIVE. 
Paragraph (1) of section 307(d) of the Biomass Re-
search and Development Act of 2000 (7 U.S.C. 
8606(d)(1); Public Law 106–224) is amended— 
(1) in subparagraph (C), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (D), by adding ‘‘and’’ at 
the end; and 
(3) by adding after subparagraph (D) the fol-
lowing new subparagraph: 
‘‘(E) strategies to— 
‘‘(i) provide producers with the nec-
essary technical assistance, incentives and 
financial tools to facilitate a shift towards 
the production of crops grown for cellulosic 
feedstock and biomass (hereafter in this 
subparagraph 
referred 
to 
as 
‘energy 
crops’); 
‘‘(ii) provide producers with rec-
ommended practices for growing energy 
crops to ensure consistency with existing 
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recommended practices and conservation 
programs; 
‘‘(iii) provide incentives to producers 
in the form of price guarantees for plant-
ing energy crops to protect early adopters 
from perceived risk during start up of the 
industry; 
‘‘(iv) provide incentives to producers 
in the form of grants and guaranteed loans 
to establish new cropping systems for the 
production, collection and harvesting of 
biomass and to remove old cropping sys-
tems; 
‘‘(v) provide incentives in the form of 
grants and guaranteed loans to establish 
breeding programs for propagation mate-
rials, which will be necessary to make com-
mercial-scale energy crop production pos-
sible; and 
‘‘(vi) encourage development within 
the private sector of the necessary support 
services for energy crop production and 
biorefinery operations.’’. 
Æ 
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