I
106TH CONGRESS
1ST SESSION
H. R. 2827
To amend the National Agricultural Research, Extension, and Teaching Policy
Act of 1977 to authorize research to promote the conversion of biomass
into biobased industrial products, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 9, 1999
Mr. EWING (for himself and Mr. SHIMKUS) introduced the following bill;
which was referred to the Committee on Agriculture, and in addition to
the Committee on Science, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned
A BILL
To amend the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 to authorize research
to promote the conversion of biomass into biobased in-
dustrial products, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘National Sustainable
Fuels and Chemicals Act of 1999’’.
SEC. 2. FINDINGS.
Congress finds that—
(1) conversion of biomass into biobased indus-
trial products offers outstanding potential for benefit
to the national interest through improved strategic
security and balance of payments, healthier rural
economies, improved environmental quality, near-
zero net greenhouse gas emissions, technology ex-
port, and sustainable resource supply;
(2)(A) biomass is widely available at prices that
are competitive with low cost petroleum; and
(B) 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
desired biobased industrial products;
(3) biobased fuels, such as ethanol, have the
clear potential to be sustainable, low cost, and high
performance fuels that are compatible with both cur-
rent and future transportation systems and provide
near zero net greenhouse gas emissions;
(4) biobased chemicals—
(A) can provide functional replacements
for essentially all organic chemicals that are
currently derived from petroleum; and
(B) have the clear potential for environ-
mentally benign product life cycles;
(5) biobased power can provide environmental
benefits, promote rural economic development, and
diversify energy resource options;
(6) many biomass feedstocks suitable for indus-
trial processing show the clear potential for sustain-
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 in-
dustrial products can meet a key need for the grain
processing 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
(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
feedstocks that would meet future needs more effec-
tively;
(11) the creation of value-added biobased indus-
trial products would create new jobs in construction,
manufacturing, and distribution, as well as new
higher-valued exports of products and technology;
(12)(A) because of the relatively short-term
time horizon characteristic of private sector invest-
ments, and because many benefits of biomass proc-
essing are in the national interest, it is appropriate
for 
the 
Federal 
Government 
to 
provide
precommercial investment in fundamental research
and research-driven innovation in the biomass proc-
essing 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 Council of Advisors on Science
and 
Technology 
and 
the 
National 
Research
Council—
(A) support the potential for large re-
search-driven advances in technologies for pro-
duction of biobased industrial products as well
as associated benefits; and
(B) document the need for a focused, inte-
grated, and innovation-driven research effort to
provide the appropriate progress in a timely
manner.
SEC. 3. CONVERSION OF BIOMASS INTO BIOBASED INDUS-
TRIAL PRODUCTS.
Title XIV of the National Agricultural Research, Ex-
tension, and Teaching Policy Act of 1977 (7 U.S.C. 3101
et seq.) is amended by adding at the end the following:
‘‘Subtitle N—Conversion of Bio-
mass Into Biobased Industrial
Products
‘‘SEC. 1490. DEFINITIONS.
‘‘In this subtitle:
‘‘(1) ADVISORY COMMITTEE.—The term ‘Advi-
sory Committee’ means the Sustainable Fuels and
Chemicals Technical Advisory Committee established
by section 1490C.
‘‘(2) BIOBASED
INDUSTRIAL
PRODUCT.—The
term ‘biobased industrial product’ means any power,
fuel, feed, chemical product, or other consumer good
derived from biomass.
‘‘(3) BIOMASS.—The term ‘biomass’ means any
organic matter that is available on a renewable or
recurring basis (excluding old growth timber), in-
cluding dedicated energy crops and trees, wood and
wood residues, plants (including aquatic plants),
grasses, agricultural crops, residues, fibers, and ani-
mal wastes and other waste materials.
‘‘(4) BOARD.—The term ‘Board’ means the
Sustainable Fuels and Chemicals Board established
by section 1490B.
‘‘(5) INITIATIVE.—The term ‘Initiative’ means
the Sustainable Fuels and Chemicals Research Ini-
tiative established under section 1490D.
‘‘(6) POINT OF CONTACT.—The term ‘point of
contact’ means a point of contact designated under
section 1490A(d).
‘‘(7) 
PROCESSING.—The 
term 
‘processing’
means the derivation of biobased industrial products
from biomass, including—
‘‘(A) feedstock production;
‘‘(B) harvest and handling;
‘‘(C) pretreatment or thermochemical proc-
essing;
‘‘(D) fermentation;
‘‘(E) catalytic processing;
‘‘(F) product recovery; and
‘‘(G) coproduct production.
‘‘SEC. 1490A. COOPERATION AND COORDINATION IN SUS-
TAINABLE 
FUELS 
AND 
CHEMICALS 
RE-
SEARCH.
‘‘(a) IN GENERAL.—The Secretary of Agriculture
and the Secretary of Energy shall cooperate with respect
to, and coordinate, policies and procedures that promote
research and development leading to the production of
biobased industrial products.
‘‘(b) PURPOSE.—The purpose of the cooperation and
coordination shall be to—
‘‘(1) understand the key mechanisms underlying
the recalcitrance of biomass for conversion into
biobased industrial products;
‘‘(2) develop new and cost-effective technologies
that would result in large-scale commercial produc-
tion of low cost and sustainable biobased industrial
products;
‘‘(3) ensure that biobased industrial products
are developed in a manner that enhances their eco-
nomic, energy security, and environmental benefits;
and
‘‘(4) promote the development and use of agri-
cultural and energy crops for conversion into
biobased industrial products.
‘‘(c) AREAS.—In carrying out this subtitle, the Sec-
retary of Agriculture and the Secretary of Energy, in con-
sultation with heads of appropriate departments and agen-
cies, shall promote research and development to—
‘‘(1) advance the availability and widespread
use of energy efficient, economically competitive, and
environmentally sound biobased industrial products
in a manner that is consistent with the goals of the
United States relating to sustainable and secure
supplies of food, chemicals, and fuel;
‘‘(2) ensure full consideration of Federal land
and land management programs as potential feed-
stock resources for biobased industrial products; and
‘‘(3) assess the environmental, economic, and
social impact of production of biobased industrial
products from biomass on a large scale.
‘‘(d) POINTS OF CONTACT.—
‘‘(1) IN GENERAL.—To coordinate research and
development programs and activities relating to
biobased industrial products that are carried out by
their respective Departments—
‘‘(A) the Secretary of Agriculture shall
designate, as the point of contact for the De-
partment of Agriculture, an officer of the De-
partment of Agriculture appointed by the Presi-
dent to a position in the Department before the
date of the designation, by and with the advice
and consent of the Senate; and
‘‘(B) the Secretary of Energy shall des-
ignate, as the point of contact for the Depart-
ment of Energy, an officer of the Department
of Energy appointed by the President to a posi-
tion in the Department before the date of the
designation, by and with the advice and consent
of the Senate.
‘‘(2) DUTIES.—The points of contact shall
jointly—
‘‘(A) assist in arranging interlaboratory
and site-specific supplemental agreements for
research, 
development, 
and 
demonstration
projects relating to biobased industrial prod-
ucts;
‘‘(B) serve as cochairpersons of the Board;
‘‘(C) administer the Initiative; and
‘‘(D) respond in writing to each rec-
ommendation of the Advisory Committee made
under section 1490C(c)(2).
‘‘SEC. 1490B. SUSTAINABLE FUELS AND CHEMICALS BOARD.
‘‘(a) ESTABLISHMENT.—There is established the
Sustainable Fuels and Chemicals Board to coordinate pro-
grams within and among departments and agencies of the
Federal Government for the purpose of promoting the use
of biobased industrial products by—
‘‘(1) maximizing the benefits deriving from
Federal grants and assistance; and
‘‘(2) bringing coherence to Federal strategic
planning.
‘‘(b) MEMBERSHIP.—The Board shall consist of:
‘‘(1) The point of contact of the Department of
Agriculture 
designated 
under 
section
1490A(d)(1)(A), who shall serve as cochairperson of
the Board.
‘‘(2) The point of contact of the Department of
Energy designated under section 1490A(d)(1)(B),
who shall serve as cochairperson of the Board.
‘‘(3) A senior officer of each of the following
agencies who is appointed by the head of the agency
and who has a rank that is equivalent to the points
of contact:
‘‘(A) The Department of the Interior.
‘‘(B) The Environmental Protection Agen-
cy.
‘‘(C) The National Science Foundation.
‘‘(D) The Office of Science and Technology
Policy.
‘‘(4) At the option of the Secretary of Agri-
culture and the Secretary of Energy, other members
appointed by the Secretaries (after consultation with
members described in paragraphs (1) through (3)).
‘‘(c) DUTIES.—The Board shall—
‘‘(1) coordinate research, development, and
demonstration activities relating to biobased indus-
trial products—
‘‘(A) between the Department of Agri-
culture and the Department of Energy; and
‘‘(B) with other departments and agencies
of the Federal Government; and
‘‘(2) provide recommendations to the points of
contact concerning administration of this subtitle.
‘‘(d) FUNDING.—Each agency represented on the
Board is encouraged to provide funds for any purpose
under this subtitle.
‘‘(e) MEETINGS.—The Board shall meet at least
quarterly to enable the Board to carry out the duties of
the Board under subsection (c).
‘‘SEC. 1490C. SUSTAINABLE FUELS AND CHEMICALS TECH-
NICAL ADVISORY COMMITTEE.
‘‘(a) ESTABLISHMENT.—There is established the
Sustainable Fuels and Chemicals Technical Advisory
Committee to—
‘‘(1) advise the Secretary of Agriculture, the
Secretary of Energy, and the points of contact
concerning—
‘‘(A) the technical focus and direction of
requests for proposals issued under the Initia-
tive; and
‘‘(B) procedures for reviewing and evalu-
ating the proposals;
‘‘(2) facilitate consultations and partnerships
among Federal and State agencies, agricultural pro-
ducers, industry, consumers, the research commu-
nity, and other interested groups to carry out pro-
gram activities relating to the Initiative; and
‘‘(3) evaluate and perform strategic planning on
program activities relating to the Initiative.
‘‘(b) MEMBERSHIP.—The Committee shall consist of
the following members appointed by the points of contact:
‘‘(1) An individual affiliated with the biobased
industrial products industry.
‘‘(2) An individual affiliated with a college or
university who has expertise in biobased industrial
products.
‘‘(3) 2 prominent engineers or scientists from
government or academia who have expertise in
biobased industrial products.
‘‘(4) An individual affiliated with a commodity
trade association.
‘‘(5) An individual affiliated with an environ-
mental or conservation organization.
‘‘(6) An individual associated with State gov-
ernment who has expertise in biobased industrial
products.
‘‘(7) At the option of the points of contact,
other members.
‘‘(c) DUTIES.—The Advisory Committee shall—
‘‘(1) advise the points of contact with respect to
the Initiative; and
‘‘(2) evaluate whether, and make recommenda-
tions in writing to the Board to ensure that—
‘‘(A) funds authorized for the Initiative are
distributed and used in a manner that is con-
sistent with the goals of the Initiative;
‘‘(B) the points of contact are funding pro-
posals under this subtitle that are selected on
the basis of merit, as determined by an inde-
pendent panel of scientific and technical peers;
and
‘‘(C) activities under this subtitle are car-
ried out in accordance with this subtitle.
‘‘(d) MEETINGS.—The Advisory Committee shall
meet at least quarterly to enable the Advisory Committee
to carry out the duties of the Advisory Committee under
subsection (c).
‘‘SEC. 1490D. SUSTAINABLE FUELS AND CHEMICALS RE-
SEARCH INITIATIVE.
‘‘(a) IN GENERAL.—The Secretary of Agriculture
and the Secretary of Energy, acting through their respec-
tive points of contact and in consultation with the Board,
shall establish and carry out a Sustainable Fuels and
Chemicals Research Initiative under which competitively-
awarded grants, contracts, and financial assistance are
provided to, or entered into with, eligible entities to carry
out research on biobased industrial products.
‘‘(b) PURPOSES.—The purposes of grants, contracts,
and assistance under this section shall be to—
‘‘(1) stimulate collaborative activities by a di-
verse range of experts in all aspects of biomass proc-
essing for the purpose of conducting fundamental
and innovation-targeted research and technology de-
velopment;
‘‘(2) enhance creative and imaginative ap-
proaches toward biomass processing that will serve
to develop the next generation of advanced tech-
nologies making possible low cost and sustainable
biobased industrial products;
‘‘(3) strengthen the intellectual resources of the
United States through the training and education of
future scientists, engineers, managers, and business
leaders in the field of biomass processing; and
‘‘(4) promote integrated research partnerships
among colleges, universities, national laboratories,
Federal and State research agencies, and the private
sector as the best means of overcoming technical
challenges that span multiple research and engineer-
ing disciplines and of gaining better leverage from
limited Federal research funds.
‘‘(c) ELIGIBLE ENTITIES.—
‘‘(1) IN GENERAL.—To be eligible for a grant,
contract, or assistance under this section, an appli-
cant shall be—
‘‘(A) a college or university;
‘‘(B) a national laboratory;
‘‘(C) a Federal research agency;
‘‘(D) a State research agency;
‘‘(E) a private sector entity;
‘‘(F) a nonprofit organization; or
‘‘(G) a consortium of 2 or more entities de-
scribed in subparagraphs (A) through (E).
‘‘(2) 
ADMINISTRATION.—After 
consultation
with the Board, the points of contact, on behalf of
the Board, shall—
‘‘(A) publish annually 1 or more joint re-
quests for proposals for grants, contracts, and
assistance under this section;
‘‘(B) establish a priority in grants, con-
tracts, and assistance under this section for re-
search that—
‘‘(i) demonstrates potential for signifi-
cant advances in biomass processing;
‘‘(ii) demonstrates potential to sub-
stantially impact scale-sensitive national
objectives such as sustainable resource
supply, reduced greenhouse gas emissions,
healthier rural economies, and improved
strategic security and trade balances; and
‘‘(iii) would improve knowledge of im-
portant biomass processing systems that
demonstrate potential for commercial ap-
plications;
‘‘(C) require that grants, contracts, and
assistance under this section be awarded com-
petitively, on the basis of merit, after the estab-
lishment of procedures that provide for sci-
entific peer review by an independent panel of
scientific and technical peers; and
‘‘(D) give preference to applications that—
‘‘(i) involve a consortia of experts
from multiple institutions; and
‘‘(ii) encourage the integration of dis-
ciplines and application of the best tech-
nical resources.
‘‘(d) USES OF GRANTS, CONTRACTS, AND ASSIST-
ANCE.—A grant, contract, or assistance under this section
shall be used to conduct—
‘‘(1) research on process technology for over-
coming the recalcitrance of biomass, including re-
search on key mechanisms, advanced technologies,
and demonstration test beds for—
‘‘(A) feedstock pretreatment and hydrolysis
of cellulose and hemicellulose, including new
technologies for—
‘‘(i) enhanced sugar yields;
‘‘(ii) lower overall chemical use;
‘‘(iii) less costly materials; and
‘‘(iv) cost reduction;
‘‘(B) development of novel organisms and
other approaches to substantially lower the cost
of cellulase enzymes and enzymatic hydrolysis,
including dedicated cellulase production and
consolidated bioprocessing strategies; and
‘‘(C) approaches other than enzymatic hy-
drolysis for overcoming the recalcitrance of cel-
lulosic biomass;
‘‘(2) research on technologies for diversifying
the range of products than can be efficiently and
cost-competitively produced from biomass, including
research on—
‘‘(A) metabolic engineering of biological
systems (including the safe use of genetically
modified crops) to produce novel products, espe-
cially commodity products, or to increase prod-
uct selectivity and tolerance, with a research
priority on the development of biobased prod-
ucts that can compete in performance and cost
with fossil-based products;
‘‘(B) catalytic processing to convert inter-
mediates of biomass processing into products of
interest;
‘‘(C) separation technologies for cost-effec-
tive product recovery and purification;
‘‘(D) approaches other than metabolic en-
gineering and catalytic conversion of intermedi-
ates of biomass processing;
‘‘(E) advanced biomass gasification tech-
nologies, including coproduction of power and
heat as an integrated component of biomass
processing, with the possibility of generating ex-
cess electricity for sale; and
‘‘(F) related research in advanced turbine
and stationary fuel cell technology for produc-
tion of electricity from biomass; and
‘‘(3) research aimed at ensuring the environ-
mental performance and economic viability of
biobased industrial products and their raw material
input of biomass when considered as an integrated
system, including research on—
‘‘(A) the analysis of, and strategies to en-
hance, the environmental performance and sus-
tainability of biobased industrial products, in-
cluding research on—
‘‘(i) accurate measurement and anal-
ysis of greenhouse gas emissions, carbon
sequestration, and carbon cycling in rela-
tion to the life cycle of biobased industrial
products and feedstocks with respect to
other alternatives;
‘‘(ii) evaluation of current and future
biomass resource availability;
‘‘(iii) development and analysis of
land management practices and alternative
biomass cropping systems that ensure the
environmental performance and sustain-
ability of biomass production and har-
vesting;
‘‘(iv) land, air, water, and biodiversity
impacts of large-scale biomass production,
processing, and use of biobased industrial
products relative to other alternatives; and
‘‘(v) biomass gasification and combus-
tion to produce electricity;
‘‘(B) the analysis of, and strategies to en-
hance, the economic viability of biobased indus-
trial products, including research on—
‘‘(i) the cost of the required process
technology;
‘‘(ii) the impact of coproducts, includ-
ing power and heat generation, on biobased
industrial product price and large-scale
economic viability; and
‘‘(iii) interactions between an emer-
gent biomass refining industry and the pe-
trochemical refining infrastructure; and
‘‘(C) the field and laboratory research re-
lated to feedstock production with the inter-
related goals of enhancing the sustainability, in-
creasing productivity, and decreasing the cost of
biomass processing, including research on—
‘‘(i) altering biomass to make biomass
easier and less expensive to process;
‘‘(ii) existing and new agricultural and
energy crops that provide a sustainable re-
source for conversion to biobased industrial
products while simultaneously serving as a
source for coproducts such as food, animal
feed, and fiber;
‘‘(iii) improved technologies for har-
vest, collection, transport, storage, and
handling of crop and residue feedstocks;
and
‘‘(iv) development of economically via-
ble cropping systems that improve the con-
servation and restoration of marginal land.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—In ad-
dition to any other amounts that are authorized to be ap-
propriated, there are authorized to be appropriated to
carry out this section $49,000,000 for each of fiscal years
2000 through 2005.
‘‘SEC. 1490E. ADMINISTRATIVE SUPPORT AND FUNDS.
‘‘(a) IN GENERAL.—To the extent administrative
support and funds are not provided by other agencies
under subsection (b), the Secretary of Energy shall pro-
vide such administrative support and funds of the Depart-
ment of Energy to the Board and the Advisory Committee
as are necessary to enable the Board and the Advisory
Committee to carry out this subtitle.
‘‘(b) OTHER AGENCIES.—The Secretary of Agri-
culture and the heads of the agencies referred to in section
1490B(a)(3) may, and are encouraged to, provide admin-
istrative support and funds of their respective agencies to
the Board and the Advisory Committee.
‘‘SEC. 1490F. REPORTS.
‘‘For each fiscal year that funds are made available
to carry out this subtitle, the Secretary of Agriculture and
the Secretary of Energy shall jointly transmit to Congress
a detailed report on—
‘‘(1) the status and progress of the Initiative,
including a certification from the Board that funds
authorized for the Initiative are distributed and used
in a manner that is consistent with the goals of the
Initiative; and
‘‘(2) the general status of cooperation and re-
search efforts carried out by each Secretary with re-
spect to sustainable fuels, chemicals, and electricity
derived from biomass, including a certification from
the Board that the points of contact are funding
proposals that are selected on the basis of merit, as
determined by an independent panel of scientific and
technical peers.
‘‘SEC. 1490G. AUTHORIZATION OF APPROPRIATIONS FOR
ETHANOL RESEARCH PILOT PLANT.
‘‘There are authorized to be appropriated to con-
struct a Department of Agriculture corn-based ethanol re-
search pilot plant a total of $14,000,000 for fiscal year
2000 and subsequent fiscal years.’’.
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