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(b) TECHNOLOGIES.—The program shall consider tech-
nologies that provide significant improvement in thermal 
controls, metering, load management, peak load reduction, 
or the efficient cooling of electronics. 
SEC. 923. MICRO-COGENERATION ENERGY TECHNOLOGY. 
(a) IN GENERAL.—The Secretary shall make competi-
tive, merit-based grants to consortia for the development of 
micro-cogeneration energy technology. 
(b) USES.—The consortia shall explore— 
(1) the use of small-scale combined heat and 
power in residential heating appliances; 
(2) the use of excess power to operate other appli-
ances within the residence; and 
(3) the supply of excess generated power to the 
power grid. 
SEC. 
924. 
DISTRIBUTED 
ENERGY 
TECHNOLOGY 
DEM-
ONSTRATION PROGRAM. 
The Secretary may provide financial assistance to co-
ordinating consortia of interdisciplinary participants for 
demonstrations designed to accelerate the use of distributed 
energy technologies (such as fuel cells, microturbines, recip-
rocating engines, thermally activated technologies, and com-
bined heat and power systems) in highly energy intensive 
commercial applications.
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SEC. 925. ELECTRIC TRANSMISSION AND DISTRIBUTION 
PROGRAMS. 
(a) DEMONSTRATION PROGRAM.—The Secretary shall 
establish a comprehensive research, development, and dem-
onstration program to ensure the reliability, efficiency, and 
environmental integrity of electrical transmission and dis-
tribution systems, which shall include— 
(1) advanced energy and energy storage tech-
nologies, materials, and systems, giving priority to 
new transmission technologies, including composite 
conductor materials and other technologies that en-
hance reliability, operational flexibility, or power-car-
rying capability; 
(2) advanced grid reliability and efficiency tech-
nology development; 
(3) technologies contributing to significant load 
reductions; 
(4) advanced metering, load management, and 
control technologies; 
(5) technologies to enhance existing grid compo-
nents; 
(6) the development and use of high-temperature 
superconductors to— 
(A) enhance the reliability, operational 
flexibility, or power-carrying capability of elec-
tric transmission or distribution systems; or
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(B) increase the efficiency of electric energy 
generation, transmission, distribution, or storage 
systems; 
(7) integration of power systems, including sys-
tems to deliver high-quality electric power, electric 
power reliability, and combined heat and power; 
(8) supply of electricity to the power grid by 
small scale, distributed and residential-based power 
generators; 
(9) the development and use of advanced grid de-
sign, operation, and planning tools; 
(10) any other infrastructure technologies, as ap-
propriate; and 
(11) technology transfer and education. 
(b) PROGRAM PLAN.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary, in 
consultation with other appropriate Federal agencies, 
shall prepare and submit to Congress a 5-year pro-
gram plan to guide activities under this section. 
(2) CONSULTATION.—In preparing the program 
plan, the Secretary shall consult with— 
(A) utilities; 
(B) energy service providers; 
(C) manufacturers;
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(D) institutions of higher education; 
(E) other appropriate State and local agen-
cies; 
(F) environmental organizations; 
(G) professional and technical societies; and 
(H) any other persons the Secretary con-
siders appropriate. 
(c) IMPLEMENTATION.—The Secretary shall consider 
implementing the program under this section using a con-
sortium of participants from industry, institutions of high-
er education, and National Laboratories. 
(d) REPORT.—Not later than 2 years after the submis-
sion of the plan under subsection (b), the Secretary shall 
submit to Congress a report— 
(1) describing the progress made under this sec-
tion; and 
(2) identifying any additional resources needed 
to continue the development and commercial applica-
tion of transmission and distribution of infrastruc-
ture technologies. 
(e) POWER DELIVERY RESEARCH INITIATIVE.— 
(1) IN GENERAL.—The Secretary shall establish 
a research, development, and demonstration initiative 
specifically focused on power delivery using compo-
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nents incorporating high temperature superconduc-
tivity. 
(2) GOALS.—The goals of the Initiative shall 
be— 
(A) to establish world-class facilities to de-
velop high temperature superconductivity power 
applications in partnership with manufacturers 
and utilities; 
(B) to provide technical leadership for es-
tablishing reliability for high temperature super-
conductivity power applications, including suit-
able modeling and analysis; 
(C) to facilitate the commercial transition 
toward direct current power transmission, stor-
age, and use for high power systems using high 
temperature superconductivity; and 
(D) to facilitate the integration of very low 
impedance high temperature superconducting 
wires and cables in existing electric networks to 
improve system performance, power flow control, 
and reliability. 
(3) INCLUSIONS.—The Initiative shall include— 
(A) feasibility analysis, planning, research, 
and design to construct demonstrations of super-
conducting links in high power, direct current,
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and controllable alternating current trans-
mission systems; 
(B) public-private partnerships to dem-
onstrate deployment of high temperature super-
conducting cable into testbeds simulating a real-
istic transmission grid and under varying trans-
mission conditions, including actual grid inser-
tions; and 
(C) testbeds developed in cooperation with 
National Laboratories, industries, and institu-
tions of higher education to— 
(i) demonstrate those technologies; 
(ii) prepare the technologies for com-
mercial introduction; and 
(iii) address cost or performance road-
blocks to successful commercial use. 
(f) TRANSMISSION AND DISTRIBUTION GRID PLANNING 
AND OPERATIONS INITIATIVE.— 
(1) IN GENERAL.—The Secretary shall establish 
a research, development, and demonstration initiative 
specifically focused on tools needed to plan, operate, 
and expand the transmission and distribution grids 
in the presence of competitive market mechanisms for 
energy, load demand, customer response, and ancil-
lary services.
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(2) GOALS.—The goals of the Initiative shall 
be— 
(A)(i) to develop and use a geographically 
distributed center, consisting of institutions of 
higher education, and National Laboratories, 
with expertise and facilities to develop the under-
lying theory and software for power system ap-
plication; and 
(ii) to ensure commercial development in 
partnership with software vendors and utilities; 
(B) to provide technical leadership in engi-
neering and economic analysis for the reliability 
and efficiency of power systems planning and 
operations in the presence of competitive markets 
for electricity; 
(C) to model, simulate, and experiment with 
new market mechanisms and operating practices 
to understand and optimize those new methods 
before actual use; and 
(D) to provide technical support and tech-
nology transfer to electric utilities and other par-
ticipants in the domestic electric industry and 
marketplace.
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Subtitle C—Renewable Energy 
SEC. 931. RENEWABLE ENERGY. 
(a) IN GENERAL.—There are authorized to be appro-
priated to the Secretary to carry out renewable energy re-
search, development, demonstration, and commercial appli-
cation activities, including activities authorized under this 
subtitle— 
(1) $610,000,000 for fiscal year 2006; 
(2) $659,000,000 for fiscal year 2007; and 
(3) $710,000,000 for fiscal year 2008. 
(b) BIOENERGY.—From the amounts authorized under 
subsection (a), there are authorized to be appropriated to 
carry out section 932— 
(1) $167,650,000 for fiscal year 2006; 
(2) $180,000,000 for fiscal year 2007; and 
(3) $192,000,000 for fiscal year 2008. 
(c) CONCENTRATING SOLAR POWER.—From amounts 
authorized under subsection (a), there is authorized to be 
appropriated to carry out section 933 $50,000,000 for each 
of fiscal years 2006 through 2008. 
(d) ADMINISTRATION.—Of the funds authorized under 
subsection (b), not less than $5,000,000 for each fiscal year 
shall be made available for grants to— 
(1) part B institutions;
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(2) Tribal Colleges or Universities (as defined in 
section 316(b) of the Higher Education Act of 1965 
(20 U.S.C. 1059c(b))); and 
(3) Hispanic-serving institutions. 
(e) CONSULTATION.—In carrying out this section, the 
Secretary, in consultation with the Secretary of Agri-
culture, shall demonstrate the use of— 
(1) advanced wind power technology, including 
combined use with coal gasification; 
(2) biomass; 
(3) geothermal energy systems; and 
(4) other renewable energy technologies to assist 
in delivering electricity to rural and remote locations. 
SEC. 932. BIOENERGY PROGRAM. 
(a) DEFINITION OF LIGNOCELLULOSIC FEEDSTOCK.— 
In this section, the term ‘‘lignocellulosic feedstock’’ means 
any portion of a plant or coproduct from conversion, in-
cluding crops, trees, and agricultural and forest residues 
not specifically grown for food. 
(b) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and commer-
cial application for bioenergy, including— 
(1) biopower energy systems; 
(2) biofuels; 
(3) bioproducts;
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(4) integrated biorefineries that may produce 
biopower, biofuels, and bioproducts; 
(5) cross-cutting research and development in 
feedstocks; and 
(6) economic analysis. 
(c) BIOFUELS AND BIOPRODUCTS.—The goals of the 
biofuels and bioproducts programs shall be to develop, in 
partnership with industry and institutions of higher edu-
cation— 
(1) advanced biochemical and thermochemical 
conversion technologies capable of making fuels from 
lignocellulosic feedstocks that are price-competitive 
with gasoline or diesel in either internal combustion 
engines or fuel cell-powered vehicles; 
(2) advanced biotechnology processes capable of 
making biofuels and bioproducts with emphasis on 
development of biorefinery technologies using enzyme- 
based processing systems; 
(3) advanced biotechnology processes capable of 
increasing energy production from lignocellulosic 
feedstocks, with emphasis on reducing the dependence 
of industry on fossil fuels in manufacturing facilities; 
and
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(4) other advanced processes that will enable the 
development of cost-effective bioproducts, including 
biofuels. 
(d) REPEAL OF SUNSET PROVISION.—Section 311 of 
the Biomass Research and Development Act of 2000 (7 
U.S.C. 8101 note) is repealed. 
SEC. 933. HYDROGEN INTERMEDIATE FUELS RESEARCH 
PROGRAM. 
(a) IN GENERAL.—The Secretary, in coordination 
with the Secretary of Agriculture, shall carry out a 3-year 
program of research, development, and demonstration on 
the use of ethanol and other low-cost transportable renew-
able feedstocks as intermediate fuels for the safe, energy effi-
cient, and cost-effective transportation of hydrogen. 
(b) GOALS.—The goals of the program shall include— 
(1) demonstrating the cost-effective conversion of 
ethanol or other low-cost transportable renewable feed-
stocks to pure hydrogen suitable for eventual use in 
fuel cells; 
(2) using existing commercial reforming tech-
nology or modest modifications of existing technology 
to reform ethanol or other low-cost transportable re-
newable feedstocks into hydrogen;
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(3) converting at least 1 commercially available 
internal combustion engine hybrid electric passenger 
vehicle to operate on hydrogen; 
(4) not later than 1 year after the date on which 
the program begins, installing and operating an eth-
anol reformer, or reformer for another low-cost trans-
portable renewable feedstock (including onsite hydro-
gen compression, storage, and dispensing), at the fa-
cilities of a fleet operator; 
(5) operating the 1 or more vehicles described in 
paragraph (3) for a period of at least 2 years; and 
(6) collecting emissions and fuel economy data 
on the 1 or more vehicles described in paragraph (3) 
in various operating and environmental conditions. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$5,000,000. 
SEC. 934. CONCENTRATING SOLAR POWER RESEARCH PRO-
GRAM. 
(a) IN GENERAL.—The Secretary shall conduct a pro-
gram of research and development to evaluate the potential 
for concentrating solar power for hydrogen production, in-
cluding cogeneration approaches for both hydrogen and elec-
tricity.
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(b) ADMINISTRATION.—The program shall take advan-
tage of existing facilities to the extent practicable and shall 
include— 
(1) development of optimized technologies that 
are common to both electricity and hydrogen produc-
tion; 
(2) evaluation of thermochemical cycles for hy-
drogen production at the temperatures attainable 
with concentrating solar power; 
(3) evaluation of materials issues for the 
thermochemical cycles described in paragraph (2); 
(4) cogeneration of solar thermal electric power 
and photo-synthetic-based hydrogen production; 
(5) system architectures and economics studies; 
and 
(6) coordination with activities under the Ad-
vanced Reactor Hydrogen Co-generation Project es-
tablished under subtitle C of title VI on high tempera-
ture materials, thermochemical cycles, and economic 
issues. 
(c) ASSESSMENT.—In carrying out the program under 
this section, the Secretary shall— 
(1) assess conflicting guidance on the economic 
potential of concentrating solar power for electricity 
production received from the National Research Coun-
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cil in the report entitled ‘‘Renewable Power Path-
ways: A Review of the U.S. Department of Energy’s 
Renewable Energy Programs’’ and dated 2000 and 
subsequent reviews of that report funded by the De-
partment; and 
(2) provide an assessment of the potential im-
pact of technology used to concentrate solar power for 
electricity before, or concurrent with, submission of 
the budget for fiscal year 2007. 
(d) REPORT.—Not later than 5 years after the date 
of enactment of this Act, the Secretary shall provide to Con-
gress a report on the economic and technical potential for 
electricity or hydrogen production, with or without cogen-
eration, with concentrating solar power, including the eco-
nomic and technical feasibility of potential construction of 
a pilot demonstration facility suitable for commercial pro-
duction of electricity or hydrogen from concentrating solar 
power. 
SEC. 935. HYBRID SOLAR LIGHTING RESEARCH AND DEVEL-
OPMENT PROGRAM. 
(a) DEFINITION OF HYBRID SOLAR LIGHTING.—In 
this section, the term ‘‘hybrid solar lighting’’ means a novel 
lighting system that integrates sunlight and electrical light-
ing in complement to each other in common lighting fix-
tures for the purpose of improving energy efficiency.
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(b) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and commer-
cial application for hybrid solar lighting aimed at devel-
oping hybrid solar lighting systems that are— 
(1) designed to eliminate large roof penetrations 
and associated architectural design and maintenance 
problems that limit the conventional use of daylight 
in most buildings; 
(2) easily integrated with electric lights; and 
(3) compatible with a majority of electric lamps 
and light fixtures. 
(c) LIMITATIONS.—Funding authorized under this sec-
tion shall not be used for lighting systems based on conven-
tional daylighting installations such as skylights, light 
wells, light shelves, or roof monitors. 
(d) NATIONAL ACADEMY
OF SCIENCES.—Not later 
than 2 years after the date of enactment of this Act, the 
Secretary shall enter into an arrangement with the Na-
tional Academy of Sciences to conduct a biannual review 
of the activities under this section including program prior-
ities, technical milestones, and opportunities for technology 
transfer and commercialization. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to carry out this section— 
(1) $4,000,000 for fiscal year 2006;
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(2) $6,000,000 for fiscal year 2007; and 
(3) $6,000,000 for fiscal year 2008. 
SEC. 936. MISCELLANEOUS PROJECTS. 
The Secretary shall conduct research, development, 
demonstration, and commercial application programs for— 
(1) ocean energy, including wave energy; 
(2) the combined use of renewable energy tech-
nologies with 1 another and with other energy tech-
nologies, including the combined use of wind power 
and coal gasification technologies; and 
(3) renewable energy technologies for cogenera-
tion of hydrogen and electricity. 
SEC. 937. BIOMASS RESEARCH AND DEVELOPMENT. 
(a) DEFINITIONS.—Section 303 of the Biomass Re-
search and Development Act of 2000 (Public Law 106–224; 
7 U.S.C. 8101 note) is amended— 
(1) by striking paragraphs (2), (9), and (10); 
(2) by redesignating paragraphs (3), (4), (5), 
(6), (7), and (8) as paragraphs (4), (5), (7), (8), (9), 
and (10), respectively; 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) BIOBASED FUEL.—The term ‘biobased fuel’ 
means any transportation fuel produced from bio-
mass.
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‘‘(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.’’; 
(4) by inserting after paragraph (5) (as redesig-
nated by paragraph (2)) the following: 
‘‘(6) DEMONSTRATION.—The term ‘demonstra-
tion’ means demonstration of technology in a pilot 
plant or semi-works scale facility.’’; and 
(5) by striking paragraph (9) (as redesignated 
by paragraph (2)) and inserting the following: 
‘‘(9) NATIONAL
LABORATORY.—The term ‘Na-
tional Laboratory’ means any of the following labora-
tories owned by the Department: 
‘‘(A) Ames Laboratory. 
‘‘(B) Argonne National Laboratory. 
‘‘(C) Brookhaven National Laboratory. 
‘‘(D) Fermi National Accelerator Labora-
tory. 
‘‘(E) Idaho National Laboratory. 
‘‘(F) Lawrence Berkeley National Labora-
tory.
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‘‘(G) Lawrence Livermore National Labora-
tory. 
‘‘(H) Los Alamos National Laboratory. 
‘‘(I) National Energy Technology Labora-
tory. 
‘‘(J) National Renewable Energy Labora-
tory. 
‘‘(K) Oak Ridge National Laboratory. 
‘‘(L) Pacific Northwest National Labora-
tory. 
‘‘(M) Princeton Plasma Physics Laboratory. 
‘‘(N) Sandia National Laboratories. 
‘‘(O) Stanford Linear Accelerator Center. 
‘‘(P) Thomas Jefferson National Accelerator 
Facility.’’. 
(b) COOPERATION AND COORDINATION IN BIOMASS 
RESEARCH AND DEVELOPMENT.—Section 304 of the Bio-
mass Research and Development Act of 2000 (Public Law 
106–224; 7 U.S.C. 8101 note) is amended— 
(1) in subsections (a) and (d), by striking ‘‘in-
dustrial products’’ each place it appears and insert-
ing ‘‘fuels and biobased products’’; 
(2) by striking subsections (b) and (c); and 
(3) by redesignating subsection (d) as subsection 
(b).
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(c) 
BIOMASS
RESEARCH
AND
DEVELOPMENT 
BOARD.—Section 305 of the Biomass Research and Devel-
opment Act of 2000 (Public Law 106–224; 7 U.S.C. 8101 
note) is amended— 
(1) in subsections (a) and (c), by striking ‘‘in-
dustrial products’’ each place it appears and insert-
ing ‘‘fuels and biobased products’’; 
(2) in subsection (b)— 
(A) 
in 
paragraph 
(1), 
by 
striking 
‘‘304(d)(1)(B)’’ and inserting ‘‘304(b)(1)(B)’’; 
and 
(B) 
in 
paragraph 
(2), 
by 
striking 
‘‘304(d)(1)(A)’’ and inserting ‘‘304(b)(1)(A)’’; 
and 
(3) in subsection (c)— 
(A) in paragraph (1)(B), by striking ‘‘and’’ 
at the end; 
(B) in paragraph (2), by striking the period 
at the end and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(3) ensure that— 
‘‘(A) solicitations are open and competitive 
with awards made annually; and 
‘‘(B) objectives and evaluation criteria of 
the solicitations are clearly stated and mini-
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mally prescriptive, with no areas of special in-
terest; and 
‘‘(4) ensure that the panel of scientific and tech-
nical peers assembled under section 307(g)(1)(C) to 
review proposals is composed predominantly of inde-
pendent experts selected from outside the Departments 
of Agriculture and Energy.’’. 
(d) BIOMASS RESEARCH AND DEVELOPMENT TECH-
NICAL ADVISORY COMMITTEE.—Section 306 of the Biomass 
Research and Development Act of 2000 (Public Law 106– 
224; 7 U.S.C. 8101 note) is amended— 
(1) in subsection (b)(1)— 
(A) in subparagraph (A), by striking 
‘‘biobased industrial products’’ and inserting 
‘‘biofuels’’; 
(B) by redesignating subparagraphs (B) 
through (J) as subparagraphs (C) through (K), 
respectively; 
(C) by inserting after subparagraph (A) the 
following: 
‘‘(B) an individual affiliated with the 
biobased industrial and commercial products in-
dustry;’’;
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(D) in subparagraph (F) (as redesignated 
by subparagraph (B)) by striking ‘‘an indi-
vidual has’’ and inserting ‘‘2 individuals have’’; 
(E) in subparagraphs (C), (D), (G), and (I) 
(as redesignated by subparagraph (B)) by strik-
ing ‘‘industrial products’’ each place it appears 
and inserting ‘‘fuels and biobased products’’; and 
(F) in subparagraph (H) (as redesignated 
by subparagraph (B)), by inserting ‘‘and envi-
ronmental’’ before ‘‘analysis’’; 
(2) in subsection (c)(2)— 
(A) in subparagraph (A), by striking 
‘‘goals’’ and inserting ‘‘objectives, purposes, and 
considerations’’; 
(B) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), respec-
tively; 
(C) by inserting after subparagraph (A) the 
following: 
‘‘(B) solicitations are open and competitive 
with awards made annually and that objectives 
and evaluation criteria of the solicitations are 
clearly stated and minimally prescriptive, with 
no areas of special interest;’’; and
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(D) in subparagraph (C) (as redesignated 
by subparagraph (B)) by inserting ‘‘predomi-
nantly from outside the Departments of Agri-
culture and Energy’’ after ‘‘technical peers’’. 
(e) BIOMASS RESEARCH AND DEVELOPMENT INITIA-
TIVE.—Section 307 of the Biomass Research and Develop-
ment Act of 2000 (Public Law 106–224; 7 U.S.C. 8101 
note) is amended— 
(1) in subsection (a), by striking ‘‘research on 
biobased industrial products’’ and inserting ‘‘research 
on, and development and demonstration of, biobased 
fuels and biobased products, and the methods, prac-
tices and technologies, biotechnology, for their produc-
tion’’; and 
(2) by striking subsections (b) through (e) and 
inserting the following: 
‘‘(b) OBJECTIVES.—The objectives of the Initiative are 
to develop— 
‘‘(1) technologies and processes necessary for 
abundant commercial production of biobased fuels at 
prices competitive with fossil fuels; 
‘‘(2) high-value biobased products— 
‘‘(A) to enhance the economic viability of 
biobased fuels and power; and
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‘‘(B) as substitutes for petroleum-based feed-
stocks and products; and 
‘‘(3) a diversity of sustainable domestic sources 
of biomass for conversion to biobased fuels and 
biobased products. 
‘‘(c) PURPOSES.—The purposes of the Initiative are— 
‘‘(1) to increase the energy security of the United 
States; 
‘‘(2) to create jobs and enhance the economic de-
velopment of the rural economy; 
‘‘(3) to enhance the environment and public 
health; and 
‘‘(4) to diversify markets for raw agricultural 
and forestry products. 
‘‘(d) TECHNICAL AREAS.—To advance the objectives 
and purposes of the Initiative, the Secretary of Agriculture 
and the Secretary of Energy, in consultation with the Ad-
ministrator of the Environmental Protection Agency and 
heads of other appropriate departments and agencies (re-
ferred to in this section as the ‘Secretaries’), shall direct 
research and development toward— 
‘‘(1) feedstock production through the develop-
ment of crops and cropping systems relevant to pro-
duction of raw materials for conversion to biobased 
fuels and biobased products, including—
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‘‘(A) development of advanced and dedi-
cated crops with desired features, including en-
hanced productivity, broader site range, low re-
quirements for chemical inputs, and enhanced 
processing; 
‘‘(B) advanced crop production methods to 
achieve the features described in subparagraph 
(A); 
‘‘(C) feedstock harvest, handling, transport, 
and storage; and 
‘‘(D) strategies for integrating feedstock pro-
duction into existing managed land; 
‘‘(2) overcoming recalcitrance of cellulosic bio-
mass through developing technologies for converting 
cellulosic biomass into intermediates that can subse-
quently be converted into biobased fuels and biobased 
products, including— 
‘‘(A) pretreatment in combination with en-
zymatic or microbial hydrolysis; and 
‘‘(B) thermochemical approaches, including 
gasification and pyrolysis; 
‘‘(3) product diversification through technologies 
relevant to production of a range of biobased products 
(including chemicals, animal feeds, and cogenerated
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power) that eventually can increase the feasibility of 
fuel production in a biorefinery, including— 
‘‘(A) 
catalytic 
processing, 
including 
thermochemical fuel production; 
‘‘(B) metabolic engineering, enzyme engi-
neering, and fermentation systems for biological 
production of desired products or cogeneration of 
power; 
‘‘(C) product recovery; 
‘‘(D) power production technologies; and 
‘‘(E) integration into existing biomass proc-
essing facilities, including starch ethanol plants, 
paper mills, and power plants; and 
‘‘(4) analysis that provides strategic guidance for 
the application of biomass technologies in accordance 
with realization of improved sustainability and envi-
ronmental quality, cost effectiveness, security, and 
rural economic development, usually featuring sys-
tem-wide approaches. 
‘‘(e) ADDITIONAL CONSIDERATIONS.—Within the tech-
nical areas described in subsection (d), and in addition to 
advancing the purposes described in subsection (c) and the 
objectives described in subsection (b), the Secretaries shall 
support research and development—
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‘‘(1) to create continuously expanding opportuni-
ties for participants in existing biofuels production by 
seeking synergies and continuity with current tech-
nologies and practices, such as the use of dried dis-
tillers grains as a bridge feedstock; 
‘‘(2) to maximize the environmental, economic, 
and social benefits of production of biobased fuels and 
biobased products on a large scale through life-cycle 
economic and environmental analysis and other 
means; and 
‘‘(3) to assess the potential of Federal land and 
land management programs as feedstock resources for 
biobased fuels and biobased products, consistent with 
the integrity of soil and water resources and with 
other environmental considerations. 
‘‘(f) ELIGIBLE ENTITIES.—To be eligible for a grant, 
contract, or assistance under this section, an applicant shall 
be— 
‘‘(1) an institution of higher education; 
‘‘(2) a national laboratory; 
‘‘(3) a Federal research agency; 
‘‘(4) a State research agency; 
‘‘(5) a private sector entity; 
‘‘(6) a nonprofit organization; or
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‘‘(7) a consortium of 2 of more entities described 
in paragraphs (1) through (6). 
‘‘(g) ADMINISTRATION.— 
‘‘(1) IN GENERAL.—After consultation with the 
Board, the points of contact shall— 
‘‘(A) publish annually 1 or more joint re-
quests for proposals for grants, contracts, and as-
sistance under this section; 
‘‘(B) require that grants, contracts, and as-
sistance under this section be awarded competi-
tively, on the basis of merit, after the establish-
ment of procedures that provide for scientific 
peer review by an independent panel of scientific 
and technical peers; and 
‘‘(C) give some preference to applications 
that— 
‘‘(i) involve a consortia of experts from 
multiple institutions; 
‘‘(ii) encourage the integration of dis-
ciplines and application of the best tech-
nical resources; and 
‘‘(iii) increase the geographic diversity 
of demonstration projects. 
‘‘(2) DISTRIBUTION OF FUNDING BY TECHNICAL 
AREA.—Of the funds authorized to be appropriated
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for activities described in this section, funds shall be 
distributed for each of fiscal years 2006 through 2010 
so as to achieve an approximate distribution of— 
‘‘(A) 20 percent of the funds to carry out 
activities for feedstock production under sub-
section (d)(1); 
‘‘(B) 45 percent of the funds to carry out 
activities for overcoming recalcitrance of cel-
lulosic biomass under subsection (d)(2); 
‘‘(C) 30 percent of the funds to carry out 
activities for product diversification under sub-
section (d)(3); and 
‘‘(D) 5 percent of the funds to carry out ac-
tivities for strategic guidance under subsection 
(d)(4). 
‘‘(3) DISTRIBUTION OF FUNDING WITHIN EACH 
TECHNICAL AREA.—Within each technical area de-
scribed in paragraphs (1) through (3) of subsection 
(d), funds shall be distributed for each of fiscal years 
2006 through 2010 so as to achieve an approximate 
distribution of— 
‘‘(A) 15 percent of the funds for applied 
fundamentals; 
‘‘(B) 35 percent of the funds for innovation; 
and
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‘‘(C) 50 percent of the funds for demonstra-
tion. 
‘‘(4) MATCHING FUNDS.— 
‘‘(A) IN GENERAL.—A minimum 20 percent 
funding match shall be required for demonstra-
tion projects under this title. 
‘‘(B) COMMERCIAL APPLICATIONS.—A min-
imum of 50 percent funding match shall be re-
quired for commercial application projects under 
this title. 
‘‘(5) TECHNOLOGY AND INFORMATION TRANSFER 
TO AGRICULTURAL USERS.—The Administrator of the 
Cooperative State Research, Education, and Exten-
sion Service and the Chief of the Natural Resources 
Conservation Service shall ensure that applicable re-
search results and technologies from the Initiative are 
adapted, made available, and disseminated through 
those services, as appropriate.’’. 
(f) ANNUAL REPORTS.—Section 309 of the Biomass 
Research and Development Act of 2000 (Public Law 106– 
224; 7 U.S.C. 8101 note) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘purposes described in section 307(b)’’ and
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inserting ‘‘objectives, purposes, and addi-
tional considerations described in sub-
sections (b) through (e) of section 307’’; 
(ii) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(iii) by redesignating subparagraph 
(C) as subparagraph (D); and 
(iv) by inserting after subparagraph 
(B) the following: 
‘‘(C) achieves the distribution of funds de-
scribed in paragraphs (2) and (3) of section 
307(g); and’’; and 
(B) in paragraph (2), by striking ‘‘indus-
trial products’’ and inserting ‘‘fuels and biobased 
products’’; and 
(2) by adding at the end the following: 
‘‘(c) UPDATES.—The Secretary and the Secretary of 
Energy shall update the Vision and Roadmap documents 
prepared for Federal biomass research and development ac-
tivities.’’. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—Section 
310(b) of the Biomass Research and Development Act of 
2000 (Public Law 106–224; 7 U.S.C. 8101 note) is amended 
by striking ‘‘title $54,000,000 for each of fiscal years 2002
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through 2007’’ and inserting ‘‘title $200,000,000 for fiscal 
year 2006 and each fiscal year thereafter’’. 
(h) HYDROGEN INTERMEDIATE FUELS RESEARCH 
PROGRAM.— 
(1) IN GENERAL.—The Secretary shall conduct a 
research, development, and demonstration program fo-
cused on the economic production and use of hydrogen 
from biofuels, with emphasis on the rural electrical 
generation sectors. 
(2) ELECTRICAL
GENERATION
SECTOR
OBJEC-
TIVES.—The objectives of the program conducted 
under paragraph (1) in the rural electrical generation 
sector shall be to— 
(A) design, develop, and test low-cost gasifi-
cation equipment to convert biomass to hydrogen 
at regional rural cooperatives, or at businesses 
owned by farmers, close to agricultural oper-
ations to minimize the cost of biomass transpor-
tation to large central gasification plants; 
(B) demonstrate low-cost electrical genera-
tion at such rural cooperatives or farmer-owned 
businesses, using renewable hydrogen derived 
from biomass in either fuel cell generators, or, as 
an interim cost reduction option, in conven-
tional internal combustion engine gensets;
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(C) determine the economic return to co-
operatives or other businesses owned by farmers 
of producing hydrogen from biomass and selling 
electricity compared to agricultural economic re-
turns from producing and selling conventional 
crops alone; 
(D) evaluate the crop yield and long-term 
soil sustainability of growing and harvesting of 
feedstocks for biomass gasification, and 
(E) demonstrate the use of a portion of the 
biomass-derived hydrogen in various agricultural 
vehicles to reduce— 
(i) dependence on imported fossil fuel; 
and 
(ii) environmental impacts. 
(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection $5,000,000. 
SEC. 938. PRODUCTION INCENTIVES FOR CELLULOSIC 
BIOFUELS. 
(a) PURPOSE.—The purpose of this section is to— 
(1) accelerate deployment and commercialization 
of biofuels; 
(2) deliver the first 1,000,000,000 gallons in an-
nual cellulosic biofuels production by 2015;
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(3) ensure biofuels produced after 2015 are cost 
competitive with gasoline and diesel; and 
(4) ensure that small feedstock producers and 
rural small businesses are full participants in the de-
velopment of the cellulosic biofuels industry. 
(b) DEFINITIONS.—In this section: 
(1) CELLULOSIC
BIOFUELS.—The term ‘‘cel-
lulosic biofuels’’ means any fuel that is produced from 
cellulosic feedstocks. 
(2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a producer of fuel from cellulosic biofuels 
the production facility of which— 
(A) is located in the United States; 
(B) meets all applicable Federal and State 
permitting requirements; and 
(C) meets any financial criteria established 
by the Secretary. 
(c) PROGRAM.— 
(1) ESTABLISHMENT.—The Secretary, in con-
sultation with the Secretary of Agriculture, the Sec-
retary of Defense, and the Administrator of the Envi-
ronmental Protection Agency, shall establish an in-
centive program for the production of cellulosic 
biofuels.
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(2) BASIS OF INCENTIVES.—Under the program, 
the Secretary shall award production incentives on a 
per gallon basis of cellulosic biofuels from eligible en-
tities, through— 
(A) set payments per gallon of cellulosic 
biofuels produced in an amount determined by 
the Secretary, until initiation of the first reverse 
auction; and 
(B) reverse auction thereafter. 
(3) FIRST REVERSE AUCTION.—The first reverse 
auction shall be held on the earlier of— 
(A) not later than 1 year after the first year 
of annual production in the United States of 
100,000,000 gallons of cellulosic biofuels, as de-
termined by the Secretary; or 
(B) not later than 3 years after the date of 
enactment of this Act. 
(4) REVERSE AUCTION PROCEDURE.— 
(A) IN GENERAL.—On initiation of the first 
reverse auction, and each year thereafter until 
the earlier of the first year of annual production 
in the United States of 1,000,000,000 gallons of 
cellulosic biofuels, as determined by the Sec-
retary, or 10 years after the date of enactment
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of this Act, the Secretary shall conduct a reverse 
auction at which— 
(i) the Secretary shall solicit bids from 
eligible entities; 
(ii) eligible entities shall submit— 
(I) a desired level of production 
incentive on a per gallon basis; and 
(II) an estimated annual produc-
tion amount in gallons; and 
(iii) the Secretary shall issue awards 
for the production amount submitted, begin-
ning with the eligible entity submitting the 
bid for the lowest level of production incen-
tive on a per gallon basis and meeting such 
other criteria as are established by the Sec-
retary, until the amount of funds available 
for the reverse auction is committed. 
(B) AMOUNT OF INCENTIVE RECEIVED.—An 
eligible entity selected by the Secretary through 
a reverse auction shall receive the amount of per-
formance incentive requested in the auction for 
each gallon produced and sold by the entity dur-
ing the first 6 years of operation. 
(C) COMMENCEMENT
OF
PRODUCTION
OF 
CELLULOSIC BIOFUELS.—As a condition of the
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receipt of an award under this section, an eligi-
ble entity shall enter into an agreement with the 
Secretary under which the eligible entity agrees 
to begin production of cellulosic biofuels not later 
than 3 years after the date of the reverse auction 
in which the eligible entity participates. 
(d) LIMITATIONS.—Awards under this section shall be 
limited to— 
(1) a per gallon amount determined by the Sec-
retary during the first 4 years of the program; 
(2) a declining per gallon cap over the remain-
ing lifetime of the program, to be established by the 
Secretary so that cellulosic biofuels produced after the 
first year of annual cellulosic biofuels production in 
the United States in excess of 1,000,000,000 gallons 
are cost competitive with gasoline and diesel; 
(3) not more than 25 percent of the funds com-
mitted within each reverse auction to any 1 project; 
(4) not more than $100,000,000 in any 1 year; 
and 
(5) not more than $1,000,000,000 over the life-
time of the program. 
(e) PRIORITY.—In selecting a project under the pro-
gram, the Secretary shall give priority to projects that—
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(1) demonstrate outstanding potential for local 
and regional economic development; 
(2) include agricultural producers or coopera-
tives of agricultural producers as equity partners in 
the ventures; and 
(3) have a strategic agreement in place to fairly 
reward feedstock suppliers. 
(f) AUTHORIZATIONS OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$250,000,000. 
SEC. 939. PROCUREMENT OF BIOBASED PRODUCTS. 
(a) FEDERAL PROCUREMENT.— 
(1) DEFINITION OF PROCURING AGENCY.—Sec-
tion 9001 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8101) is amended— 
(A) by redesignating paragraphs (4), (5), 
and (6) as paragraphs (5), (6), and (7), respec-
tively; and 
(B) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) PROCURING AGENCY.—The term ‘procuring 
agency’ means— 
‘‘(A) any Federal agency that is using Fed-
eral funds for procurement; or
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‘‘(B) any person contracting with any Fed-
eral agency with respect to work performed 
under the contract.’’. 
(2) PROCUREMENT.—Section 9002 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 
8102) is amended— 
(A) by striking ‘‘Federal agency’’ each place 
it appears (other than in subsections (f) and (g)) 
and inserting ‘‘procuring agency’’; 
(B) in subsection (c)(2)— 
(i) by striking ‘‘(2)’’ and all that fol-
lows through ‘‘Notwithstanding’’ and insert-
ing the following: 
‘‘(2) FLEXIBILITY.—Notwithstanding’’; 
(ii) by striking ‘‘an agency’’ and in-
serting ‘‘a procuring agency’’; and 
(iii) by striking ‘‘the agency’’ and in-
serting ‘‘the procuring agency’’; 
(C) in subsection (d), by striking ‘‘procured 
by Federal agencies’’ and inserting ‘‘procured by 
procuring agencies’’; and 
(D) in subsection (f), by striking ‘‘Federal 
agencies’’ and inserting ‘‘procuring agencies’’ . 
(b) CAPITOL COMPLEX PROCUREMENT.—Section 9002 
of the Farm Security and Rural Investment Act of 2002
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(7 U.S.C. 8102) (as amended by subsection (a)(2)) is 
amended— 
(1) by redesignating subsection (j) as subsection 
(k); and 
(2) by inserting after subsection (i) the following: 
‘‘(j) INCLUSION.—Not later than 90 days after the date 
of enactment of the Energy Policy Act of 2005, the Architect 
of the Capitol, the Sergeant at Arms of the Senate, and the 
Chief Administrative Officer of the House of Representa-
tives shall establish procedures that apply the requirements 
of this section to procurement for the Capitol Complex.’’. 
(c) EDUCATION.— 
(1) IN GENERAL.—The Architect of the Capitol 
shall establish in the Capitol Complex a program of 
public education regarding use by the Architect of the 
Capitol of biobased products. 
(2) PURPOSES.—The purposes of the program 
shall be— 
(A) to establish the Capitol Complex as a 
showcase for the existence and benefits of 
biobased products; and 
(B) to provide access to further information 
on biobased products to occupants and visitors. 
(d) PROCEDURE.—Requirements issued under the 
amendments made by subsection (b) shall be made in ac-
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cordance with directives issued by the Committee on Rules 
and Administration of the Senate and the Committee on 
House Administration of the House of Representatives. 
SEC. 940. SMALL BUSINESS BIOPRODUCT MARKETING AND 
CERTIFICATION GRANTS. 
(a) IN GENERAL.—Using amounts made available 
under subsection (g), the Secretary of Agriculture (referred 
to in this section as the ‘‘Secretary’’) shall make available 
on a competitive basis grants to eligible entities described 
in subsection (b) for the biobased product marketing and 
certification purposes described in subsection (c). 
(b) ELIGIBLE ENTITIES.— 
(1) IN GENERAL.—An entity eligible for a grant 
under this section is any manufacturer of biobased 
products that— 
(A) proposes to use the grant for the 
biobased product marketing and certification 
purposes described in subsection (c); and 
(B) has not previously received a grant 
under this section. 
(2) PREFERENCE.—In making grants under this 
section, the Secretary provide a preference to an eligi-
ble entity that has fewer than 50 employees.
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(c) BIOBASED PRODUCT MARKETING AND CERTIFI-
CATION GRANT PURPOSES.—A grant made under this sec-
tion shall be used— 
(1) to provide working capital for marketing of 
biobased products; and 
(2) to provide for the certification of biobased 
products to— 
(A) qualify for the label described in section 
9002(h)(1) of the Farm Security and Rural In-
vestment Act of 2002 (7 U.S.C. 8102(h)(1)); or 
(B) meet other biobased standards deter-
mined appropriate by the Secretary. 
(d) MATCHING FUNDS.— 
(1) IN GENERAL.—Grant recipients shall provide 
matching non-Federal funds equal to the amount of 
the grant received. 
(2) EXPENDITURE.—Matching funds shall be ex-
pended in advance of grant funding, so that for every 
dollar of grant that is advanced, an equal amount of 
matching funds shall have been funded prior to sub-
mitting the request for reimbursement. 
(e) AMOUNT.—A grant made under this section shall 
not exceed $100,000. 
(f) ADMINISTRATION.—The Secretary shall establish 
such administrative requirements for grants under this sec-
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tion, including requirements for applications for the grants, 
as the Secretary considers appropriate. 
(g) AUTHORIZATIONS
OF APPROPRIATIONS.—There 
are authorized to be appropriated to make grants under this 
section— 
(1) $1,000,000 for fiscal year 2006; and 
(2) such sums as are necessary for fiscal year 
2007 and each subsequent fiscal year. 
SEC. 941. REGIONAL BIOECONOMY DEVELOPMENT GRANTS. 
(a) IN GENERAL.—Using amounts made available 
under subsection (g), the Secretary of Agriculture (referred 
to in this section as the ‘‘Secretary’’) shall make available 
on a competitive basis grants to eligible entities described 
in subsection (b) for the purposes described in subsection 
(c). 
(b) ELIGIBLE ENTITIES.—An entity eligible for a 
grant under this section is any regional bioeconomy devel-
opment association, agricultural or energy trade associa-
tion, or Land Grant institution that— 
(1) proposes to use the grant for the purposes de-
scribed in subsection (c); and 
(2) has not previously received a grant under 
this section. 
(c) REGIONAL BIOECONOMY DEVELOPMENT ASSOCIA-
TION GRANT PURPOSES.—A grant made under this section