1018 
will use the eligible crops intended to be 
produced in the proposed BCAP project 
area; 
‘‘(iii) evidence that the biomass con-
version facility has sufficient equity avail-
able, as determined by the Secretary, if the 
biomass conversion facility is not oper-
ational at the time the proposal is sub-
mitted to the Secretary; and 
‘‘(iv) any other information about the 
biomass conversion facility or proposed bio-
mass conversion facility that the Secretary 
determines necessary for the Secretary to 
be reasonably assured that the plant will 
be in operation by the date on which the 
eligible crops are ready for harvest. 
‘‘(B) BCAP PROJECT
AREA
SELECTION 
CRITERIA.—In selecting BCAP project areas, 
the Secretary shall consider— 
‘‘(i) the volume of the eligible crops 
proposed to be produced in the proposed 
BCAP project area and the probability 
that those crops will be used for the pur-
poses of the BCAP; 
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‘‘(ii) the volume of renewable biomass 
projected to be available from sources 
other than the eligible crops grown on con-
tract acres; 
‘‘(iii) the anticipated economic impact 
in the proposed BCAP project area; 
‘‘(iv) the opportunity for producers 
and local investors to participate in the 
ownership of the biomass conversion facil-
ity in the proposed BCAP project area; 
‘‘(v) the participation rate by— 
‘‘(I) beginning farmers or ranch-
ers (as defined in accordance with sec-
tion 343(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 
1991(a))); or 
‘‘(II) 
socially 
disadvantaged 
farmers or ranchers; 
‘‘(vi) the impact on soil, water, and 
related resources; 
‘‘(vii) the variety in biomass produc-
tion approaches within a project area, in-
cluding (as appropriate)— 
‘‘(I) agronomic conditions; 
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‘‘(II) harvest and postharvest 
practices; and 
‘‘(III) monoculture and polycul-
ture crop mixes; 
‘‘(viii) the range of eligible crops 
among project areas; and 
‘‘(ix) any additional information that 
the Secretary determines to be necessary. 
‘‘(3) CONTRACT.— 
‘‘(A) IN
GENERAL.—On approval of a 
BCAP project area by the Secretary, each pro-
ducer in the BCAP project area shall enter into 
a contract directly with the Secretary. 
‘‘(B) MINIMUM TERMS.—At a minimum, a 
contract under this subsection shall include 
terms that cover— 
‘‘(i) an agreement to make available 
to the Secretary, or to an institution of 
higher education or other entity designated 
by the Secretary, such information as the 
Secretary considers to be appropriate to 
promote the production of eligible crops 
and the development of biomass conversion 
technology; 
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1021 
‘‘(ii) compliance with the highly erod-
ible land conservation requirements of sub-
title B of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3811 et seq.) and 
the wetland conservation requirements of 
subtitle C of title XII of that Act (16 
U.S.C. 3821 et seq.); 
‘‘(iii) the implementation of (as deter-
mined by the Secretary)— 
‘‘(I) a conservation plan; 
‘‘(II) a forest stewardship plan; 
or 
‘‘(III) a plan that is equivalent to 
a conservation or forest stewardship 
plan; and 
‘‘(iv) any additional requirements that 
Secretary determines to be necessary. 
‘‘(C) DURATION.—A contract under this 
subsection shall have a term of not more 
than— 
‘‘(i) 5 years for annual and perennial 
crops; or 
‘‘(ii) 15 years for woody biomass. 
‘‘(4) RELATIONSHIP TO OTHER PROGRAMS.—In 
carrying out this subsection, the Secretary shall pro-
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vide for the preservation of cropland base and yield 
history applicable to the land enrolled in a BCAP 
contract. 
‘‘(5) PAYMENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
make establishment and annual payments di-
rectly to producers to support the establishment 
and production of eligible crops on contract 
acreage. 
‘‘(B) AMOUNT
OF
ESTABLISHMENT
PAY-
MENTS.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the amount of an establishment pay-
ment under this subsection shall be not 
more than 50 percent of the costs of estab-
lishing an eligible perennial crop covered 
by the contract but not to exceed $500 per 
acre, including— 
‘‘(I) the cost of seeds and stock 
for perennials; 
‘‘(II) the cost of planting the pe-
rennial crop, as determined by the 
Secretary; and 
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