I 
108TH CONGRESS 
1ST SESSION H. R. 1550
To authorize the Secretary of the Interior and the Secretary of Agriculture 
to make grants to improve the commercial value of forest biomass for 
electric energy, useful heat, transportation fuels, petroleum-based product 
substitutes, and other commercial purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 1, 2003
Mr. REHBERG (for himself, Mr. MCINNIS, and Mr. RENZI) introduced the fol-
lowing bill; which was referred to the Committee on Agriculture, and in 
addition to the Committees on Resources and Science, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
A BILL 
To authorize the Secretary of the Interior and the Secretary 
of Agriculture to make grants to improve the commercial 
value of forest biomass for electric energy, useful heat, 
transportation 
fuels, 
petroleum-based 
product 
sub-
stitutes, and other commercial purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. GRANTS TO IMPROVE THE COMMERCIAL 
VALUE OF FOREST BIOMASS FOR ELECTRIC 
ENERGY, USEFUL HEAT, TRANSPORTATION 
FUELS, PETROLEUM-BASED PRODUCT SUB-
STITUTES, AND OTHER COMMERCIAL PUR-
POSES. 
(a) FINDINGS.—Congress finds the following: 
(1) Thousands of communities in the United 
States, many located near Federal lands, are at risk 
to wildfire. Approximately 190,000,000 acres of land 
managed by the Secretary of Agriculture and the 
Secretary of the Interior are at risk of catastrophic 
fire in the near future. The accumulation of heavy 
forest fuel loads continues to increase as a result of 
disease, insect infestations, and drought, further 
raising the risk of fire each year. 
(2) In addition, more than 70,000,000 acres 
across all land ownerships are at risk to higher than 
normal mortality over the next 15 years from insect 
infestation and disease. High levels of tree mortality 
from insects and disease result in increased fire risk, 
loss of old growth, degraded watershed conditions, 
and changes in species diversity and productivity, as 
well as diminished fish and wildlife habitat and de-
creased timber values.
(3) Preventive treatments such as removing fuel 
loading, ladder fuels, and hazard trees, planting 
proper species mix and restoring and protecting 
early successional habitat, and other specific restora-
tion treatments designed to reduce the susceptibility 
of forest land, woodland, and rangeland to insect 
outbreaks, disease, and catastrophic fire present the 
greatest opportunity for long-term forest health by 
creating a mosaic of species-mix and age distribu-
tion. Such prevention treatments are widely acknowl-
edged to be more successful and cost effective than 
suppression treatments in the case of insects, dis-
ease, and fire. 
(4) The by-products of preventive treatment 
(wood, brush, thinnings, chips, slash, and other haz-
ardous fuels) removed from forest lands, woodlands 
and rangelands represent an abundant supply of bio-
mass for biomass-to-energy facilities and raw mate-
rial for business. There are currently few markets 
for the extraordinary volumes of by-products being 
generated as a result of the necessary large-scale 
preventive treatment activities. 
(5) The United States should—
(A) promote economic and entrepreneurial 
opportunities in using by-products removed
(D) a small business, micro-business, or a 
corporation that is incorporated in the United 
States; and 
(E) a nonprofit organization. 
(4) PREFERRED COMMUNITY.—The term ‘‘pre-
ferred community’’ means—
(A) any town, township, municipality, or 
other similar unit of local government (as deter-
mined by the Secretary concerned) that—
(i) has a population of not more than 
50,000 individuals; and 
(ii) the Secretary concerned, in the 
sole discretion of the Secretary concerned, 
determines contains or is located near 
land, the condition of which is at signifi-
cant risk of catastrophic wildfire, disease, 
or insect infestation or which suffers from 
disease or insect infestation; or 
(B) any county that—
(i) is not contained within a metro-
politan statistical area; and 
(ii) the Secretary concerned, in the 
sole discretion of the Secretary concerned, 
determines contains or is located near 
land, the condition of which is at signifi-
cant risk of catastrophic wildfire, disease, 
or insect infestation or which suffers from 
disease or insect infestation. 
(5) SECRETARY CONCERNED.—The term ‘‘Sec-
retary concerned’’ means—
(A) the Secretary of Agriculture with re-
spect to National Forest System lands; and 
(B) the Secretary of the Interior with re-
spect to Federal lands under the jurisdiction of 
the Secretary of the Interior and Indian lands. 
(c) BIOMASS COMMERCIAL USE GRANT PROGRAM.—
(1) IN
GENERAL.—The Secretary concerned 
may make grants to any person that owns or oper-
ates a facility that uses biomass as a raw material 
to produce electric energy, sensible heat, transpor-
tation fuels, or substitutes for petroleum-based prod-
ucts to offset the costs incurred to purchase biomass 
for use by such facility. 
(2) GRANT AMOUNTS.—A grant under this sub-
section may not exceed $20 per green ton of biomass 
delivered. 
(3) MONITORING OF GRANT RECIPIENT ACTIVI-
TIES.—As a condition of a grant under this sub-
section, the grant recipient shall keep such records 
as the Secretary concerned may require to fully and
correctly disclose the use of the grant funds and all 
transactions involved in the purchase of biomass. 
Upon notice by a representative of the Secretary 
concerned, the grant recipient shall afford the rep-
resentative reasonable access to the facility that pur-
chases or uses biomass and an opportunity to exam-
ine the inventory and records of the facility. 
(d) IMPROVED BIOMASS USE GRANT PROGRAM.—
(1) IN
GENERAL.—The Secretary concerned 
may make grants to persons to offset the cost of 
projects to develop or research opportunities to im-
prove the use of, or add value to, biomass. In mak-
ing such grants, the Secretary concerned shall give 
preference to persons in preferred communities. 
(2) SELECTION.—The Secretary concerned shall 
select a grant recipient under paragraph (1) after 
giving consideration to the anticipated public bene-
fits of the project, including the potential to develop 
thermal or electric energy resources or affordable en-
ergy, opportunities for the creation or expansion of 
small businesses and micro-businesses, and the po-
tential for new job creation. 
(3) GRANT AMOUNT.—A grant under this sub-
section may not exceed $100,000.
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $50,000,000 for each of the 
fiscal years 2004 through 2014 to carry out this section. 
(f) REPORT.—Not later than October 1, 2010, the 
Secretary of Agriculture, in consultation with the Sec-
retary of the Interior, shall submit to the Committee on 
Energy and Natural Resources and the Committee on Ag-
riculture, Nutrition, and Forestry of the Senate and the 
Committee on Resources and the Committee on Agri-
culture of the House of Representatives a report describ-
ing the results of the grant programs authorized by this 
section. The report shall include the following: 
(1) An identification of the size, type, and the 
use of biomass by persons that receive grants under 
this section. 
(2) The distance between the land from which 
the biomass was removed and the facility that used 
the biomass. 
(3) The economic impacts, particularly new job 
creation, resulting from the grants to and operation 
of the eligible operations.
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