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retary (in this section referred to as the ‘Council’) to co-
ordinate the energy policy of the Department of Agri-
culture and consult with other departments and agencies 
of the Federal Government. 
‘‘(b) MEMBERSHIP.— 
‘‘(1) IN GENERAL.—The Secretary shall appoint 
the members of the Council from among the staff of 
the agencies and mission areas of the Department of 
Agriculture with responsibilities relating to energy 
programs or policies. 
‘‘(2) CHAIR.—The chief economist and the 
Under Secretary for Rural Development of the De-
partment of Agriculture shall serve as the Chairs of 
the Council. 
‘‘(c) DUTIES OF OFFICE OF ENERGY POLICY AND 
NEW USES.—The Office of Energy Policy and New Uses 
of the Department of Agriculture shall support the activi-
ties of the Council.’’. 
SEC. 9010. FARM ENERGY PRODUCTION PILOT PROGRAM. 
Title IX of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 8101 et seq.) is further amended 
by adding at the end the following new section: 
‘‘SEC. 9013. FARM ENERGY PRODUCTION PILOT PROGRAM. 
‘‘(a) PROGRAM.—The Secretary of Agriculture shall 
establish a pilot program to provide grants to farmers for 
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the purpose of demonstrating the feasibility of making a 
farm energy neutral using existing technologies. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section 
$5,000,000 for fiscal years 2008 through 2012.’’. 
SEC. 9011. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 
Title IX of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 8101 et seq.) is further amended 
by adding at the end the following new section: 
‘‘SEC. 9014. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 
‘‘(a) GRANT AUTHORITY.— 
‘‘(1) IN
GENERAL.—The Secretary of Agri-
culture (in this section referred to as the ‘Secretary’) 
may make grants in accordance with this section to 
enable eligible rural communities to substantially in-
crease their energy self-sufficiency. 
‘‘(2) ELIGIBLE RURAL COMMUNITY DEFINED.— 
In this section, the term ‘eligible rural community’ 
means a community that has a population of fewer 
than 25,000 individuals, and is not located in a met-
ropolitan statistical area (as defined by the Bureau 
of the Census). 
‘‘(b) APPLICATIONS.— 
‘‘(1) IN GENERAL.—A community desiring to 
receive a grant under this section shall submit to the 
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Secretary an application for the grant, which con-
tains a description of how the community would use 
the grant to develop an integrated renewable energy 
system to substantially increase its energy self-suffi-
ciency. 
‘‘(2) INTEGRATED
RENEWABLE
ENERGY
SYS-
TEM.—In paragraph (1), the term ‘integrated renew-
able energy system’ includes— 
‘‘(A) the use of biofuels; 
‘‘(B) the use of biomass to produce elec-
tricity; 
‘‘(C) the use of animal manure to produce 
biogas as a substitute for natural gas; 
‘‘(D) the use of new technologies to pro-
vide highly energy efficient lighting, buildings, 
or vehicles; 
‘‘(E) the use of wind power to produce 
electricity and hydrogen; and 
‘‘(F) the use of solar energy. 
‘‘(c) CONSIDERATION OF APPLICATIONS.— 
‘‘(1) EVALUATION.—In making grants under 
this section, the Secretary shall evaluate applications 
based on their ability to demonstrate— 
‘‘(A) integration of different renewable en-
ergy sources at lowest total cost; 
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‘‘(B) integration of different renewable en-
ergy sources with greatest potential for com-
mercialization; and 
‘‘(C) development of best practices, and 
models for viable rural energy self-sufficiency. 
‘‘(2) PREFERENCE.—In making grants under 
this section, the Secretary shall give preference to 
those which propose a project developed or carried 
out in coordination with— 
‘‘(A) universities or their non-profit foun-
dations; 
‘‘(B) Federal, State, or local government 
agencies; 
‘‘(C) public or private power generation en-
tities; or 
‘‘(D) government entities with responsi-
bility for water or natural resources. 
‘‘(d) GRANTS.— 
‘‘(1) COST-SHARING.—The amount of a grant 
under this section with respect to an application 
shall not exceed 75 percent of the cost of the activi-
ties described in the application. 
‘‘(2) NUMBER
OF
GRANTS
PER
YEAR.—The 
Secretary may make not more than 5 grants under 
this section in each fiscal year. 
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‘‘(e) USE OF GRANTS.—A community to which a 
grant is made under this section shall use the grant to 
develop an integrated renewable energy system to improve 
the energy efficiency of the community, and shall docu-
ment any energy savings resulting from the use of the 
grant. 
‘‘(f) REPORT TO THE CONGRESS.—The Secretary 
shall submit to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nu-
trition, and Forestry of the Senate a report that document 
the best practices and approaches used by grantees receiv-
ing funds under this section. 
‘‘(g) LIMITATIONS ON AUTHORIZATION OF APPRO-
PRIATIONS.—For grants under this section, there are au-
thorized to be appropriated to the Secretary not more than 
$5,000,000 for fiscal year 2008, and such sums as may 
be necessary for fiscal years 2009 through 2012.’’. 
SEC. 9012. AGRICULTURAL BIOFUELS FROM BIOMASS IN-
TERNSHIP PILOT PROGRAM. 
Title IX of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 8101 et seq.) is further amended 
by adding at the end the following new section: 
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