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on Agriculture, Nutrition, and Forestry of the Sen-
ate periodic reports regarding the development and 
implementation of the Program, including the longi-
tudinal studies and evaluations required under para-
graph (1). 
‘‘(g) STATE MATCHING REQUIREMENT.—As a condi-
tion of receiving an internship under the Program, the 
State in which the student receiving the internship is pur-
suing an undergraduate or graduate degree shall provide 
matching funds in the amount of one dollar for every two 
dollars provided by the Secretary under the Program. 
‘‘(h) FEDERAL CONTRIBUTION LIMIT.—The Sec-
retary may not expend more than $200,000 in any fiscal 
year to provide internships to students pursuing an under-
graduate or graduate degree in any particular State. 
‘‘(i) APPLICATION OF FUNDS.—The Secretary shall, 
to the maximum extent practicable, use funds made avail-
able under subsection (j) to provide scholarships and the 
other forms of financial assistance described in subsection 
(e) directly attributable to the participation in the Pro-
gram by students from rural, economically-disadvantaged 
backgrounds. 
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section.’’.
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SEC. 9013. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIO-
ENERGY PRODUCERS. 
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. 9016. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIO-
ENERGY PRODUCERS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BIOENERGY.—The term ‘bioenergy’ means 
fuel grade ethanol and other biofuel. 
‘‘(2) BIOENERGY PRODUCER.—The term ‘bio-
energy producer’ means a producer of bioenergy that 
uses an eligible commodity to produce bioenergy 
under this section. 
‘‘(3) ELIGIBLE COMMODITY.—The term ‘eligible 
commodity’ means a form of raw or refined sugar or 
in-process sugar that is eligible to be marketed in 
the United States for human consumption or to be 
used for the extraction of sugar for human consump-
tion. 
‘‘(4) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means an entity located in the United States 
that markets an eligible commodity in the United 
States. 
‘‘(b) FEEDSTOCK FLEXIBILITY PROGRAM.— 
‘‘(1) IN GENERAL.—
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‘‘(A) PURCHASES AND SALES.—For each 
of fiscal years 2008 through 2012, the Sec-
retary shall purchase eligible commodities from 
eligible entities and sell such commodities to 
bioenergy producers for the purpose of pro-
ducing bioenergy in a manner that ensures that 
156 of the Federal Agricultural Improvement 
and Reform Act (7 U.S.C. 7272) is operated at 
no cost to the Federal Government by avoiding 
forfeitures to the Commodity Credit Corpora-
tion. 
‘‘(B) COMPETITIVE PROCEDURES.—In car-
rying out the purchases and sales required 
under subparagraph (A), the Secretary shall, to 
the maximum extent practicable, use competi-
tive procedures, including the receiving, offer-
ing, and accepting of bids, when entering into 
contracts with eligible entities and bioenergy 
producers, provided that such procedures are 
consistent with the purposes of subparagraph 
(A). 
‘‘(C) LIMITATION.—The purchase and sale 
of eligible commodities under subparagraph (A) 
shall only be made in fiscal years in which such 
purchases and sales are necessary to ensure
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•HR 2419 EH1S 
that the program authorized under section 156 
of the Federal Agriculture Improvement and 
Reform Act (7 U.S.C. 7272) is operated at no 
cost to the Federal Government by avoiding for-
feitures to the Commodity Credit Corporation. 
‘‘(2) NOTICE.— 
‘‘(A) IN GENERAL.—Not later than Sep-
tember 1, 2007, and each September 1 there-
after through fiscal year 2011, the Secretary 
shall provide notice to eligible entities and bio-
energy producers of the quantity of eligible 
commodities that shall be made available for 
purchase and sale for the subsequent fiscal year 
under this section. 
‘‘(B) REESTIMATES.—Not later than the 
first day of each of the second through fourth 
quarters of each of fiscal years 2008 through 
2012, the Secretary shall reestimate the quan-
tity of eligible commodities determined under 
subparagraph (A), and provide notice and make 
purchases and sales based on such reestimates. 
‘‘(3) COMMODITY CREDIT CORPORATION INVEN-
TORY.—To the extent that an eligible commodity is 
owned and held in inventory by the Commodity 
Credit Corporation (accumulated pursuant to the
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•HR 2419 EH1S 
program authorized under section 156 of the Fed-
eral Agriculture Improvement and Reform Act (7 
U.S.C. 7272)), the Secretary shall sell such com-
modity to bioenergy producers under this section. 
‘‘(4) TRANSFER RULE; STORAGE FEES.— 
‘‘(A) GENERAL TRANSFER RULE.—Except 
as provided in subparagraph (C), the Secretary 
shall ensure that bioenergy producers that pur-
chase eligible commodities pursuant to this sub-
section take possession of such commodities 
within 30 calendar days of the date of such 
purchase from the Commodity Credit Corpora-
tion. 
‘‘(B) PAYMENT
OF
STORAGE
FEES
PRO-
HIBITED.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall, to the greatest extent practicable, 
carry out this subsection in a manner that 
ensures no storage fees are paid by the 
Commodity Credit Corporation in the ad-
ministration of this subsection. 
‘‘(ii) EXCEPTION.—Clause (i) shall 
not apply with respect to any commodities 
owned and held in inventory by the Com-
modity Credit Corporation (accumulated
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•HR 2419 EH1S 
pursuant to the program authorized under 
section 156 of the Federal Agriculture Im-
provement and Reform Act (7 U.S.C. 
7272)). 
‘‘(C) 
OPTION
TO
PREVENT
STORAGE 
FEES.— 
‘‘(i) IN
GENERAL.—The Secretary 
may enter into contracts with bioenergy 
producers to sell eligible commodities to 
such producers prior in time to entering 
into contracts with eligible entities to pur-
chase such commodities to be used to sat-
isfy the contracts entered into with the bio-
energy producers. 
‘‘(ii) SPECIAL
TRANSFER
RULE.—If 
the Secretary makes a sale and purchase 
referred to in clause (i), the Secretary shall 
ensure that the bioenergy producer that 
purchased eligible commodities takes pos-
session of such commodities within 30 cal-
endar days of the date the Commodity 
Credit Corporation purchases such com-
modities. 
‘‘(5) RELATION
TO
OTHER
LAWS.—If sugar 
that is subject to a marketing allotment under part