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‘‘(B) to create jobs and enhance the eco-
nomic development of the rural economy; 
‘‘(C) to enhance the environment and pub-
lic health; and 
‘‘(D) to diversify markets for raw agricul-
tural and forestry products. 
‘‘(4) TECHNICAL AREAS.—To advance the ob-
jectives and purposes of the Initiative, the Secretary 
of Agriculture and the Secretary of Energy, in con-
sultation with the Administrator of the Environ-
mental Protection Agency and heads of other appro-
priate departments and agencies (referred to in this 
subsection as the ‘Secretaries’), shall direct research, 
development, and commercial applications toward— 
‘‘(A) feedstocks and feedstock systems rel-
evant to production of raw materials for conver-
sion to biobased fuels and biobased products, 
including— 
‘‘(i) development of advanced and 
dedicated crops and other biomass sources 
with desired features, including enhanced 
productivity, broader site range, low re-
quirements for chemical inputs, and en-
hanced processing; 
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‘‘(ii) advanced crop production meth-
ods to achieve the features described in 
clause (i); 
‘‘(iii) feedstock harvest, handling, 
transport, and storage; 
‘‘(iv) strategies for integrating feed-
stock production into existing managed 
land; and 
‘‘(v) improving the value and quality 
of coproducts, including materials used for 
animal feeding; 
‘‘(B) overcoming recalcitrance of cellulosic 
biomass through developing technologies for 
converting cellulosic biomass into intermediates 
that can subsequently be converted into 
biobased fuels and biobased products, includ-
ing— 
‘‘(i) pretreatment in combination with 
enzymatic or microbial hydrolysis; 
‘‘(ii) thermochemical approaches, in-
cluding gasification and pyrolysis; and 
‘‘(iii) self-processing crops that ex-
press enzymes capable of degrading cel-
lulosic biomass; 
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‘‘(C) product diversification through tech-
nologies relevant to production of a range of 
biobased products (including chemicals, animal 
feeds, and cogenerated power) that eventually 
can increase the feasibility of fuel production in 
a biorefinery, including— 
‘‘(i) catalytic processing, including 
thermochemical fuel production; 
‘‘(ii) metabolic engineering, enzyme 
engineering, and fermentation systems for 
biological production of desired products, 
coproducts, or cogeneration of power; 
‘‘(iii) product recovery; 
‘‘(iv) power production technologies; 
‘‘(v) integration into existing biomass 
processing facilities, including starch eth-
anol plants, sugar processing or refining 
plants, paper mills, and power plants; and 
‘‘(vi) enhancement of products and co-
products, including dried distillers grains 
(including substantially elevated starch 
content, increased oil content, improved 
fatty acid profiles, and improved resistance 
to mold and mycotoxins; and 
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‘‘(D) analysis that provides strategic guid-
ance for the application of biomass technologies 
in accordance with realization of improved sus-
tainability and environmental quality, cost ef-
fectiveness, security, and rural economic devel-
opment, usually featuring system-wide ap-
proaches. 
‘‘(5) ADDITIONAL
CONSIDERATIONS.—Within 
the technical areas described in paragraph (4), and 
in addition to advancing the purposes described in 
paragraph (3) and the objectives described in para-
graph (2), the Secretaries shall support research and 
development— 
‘‘(A) to create continuously expanding op-
portunities for participants in existing biofuels 
production by seeking synergies and continuity 
with current technologies and practices, such as 
improvements in dried distillers grains as a 
bridge feedstock; 
‘‘(B) to maximize the environmental, eco-
nomic, and social benefits of production of 
biobased fuels and biobased products on a large 
scale through life-cycle economic and environ-
mental analysis and other means; and 
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‘‘(C) to assess the potential of Federal 
land and land management programs as feed-
stock resources for biobased fuels and biobased 
products, consistent with the integrity of soil 
and water resources and with other environ-
mental considerations. 
‘‘(6) ELIGIBLE ENTITIES.—To be eligible for a 
grant, contract, or assistance under this subsection, 
an applicant shall be— 
‘‘(A) an institution of higher education; 
‘‘(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 two or more entities 
described in subparagraphs (A) through (F). 
‘‘(7) ADMINISTRATION.— 
‘‘(A) IN
GENERAL.—After consultation 
with the Board, the points of contact shall— 
‘‘(i) publish annually one or more 
joint requests for proposals for grants, 
contracts, and assistance under this sub-
section; 
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‘‘(ii) require that grants, contracts, 
and assistance under this section be 
awarded competitively, on the basis of 
merit, after the establishment of proce-
dures that provide for scientific peer review 
by an independent panel of scientific and 
technical peers; and 
‘‘(iii) give some preference to applica-
tions that— 
‘‘(I) involve a consortia of experts 
from multiple institutions; 
‘‘(II) encourage the integration 
of disciplines and application of the 
best technical resources; and 
‘‘(III) increase the geographic di-
versity of demonstration projects. 
‘‘(B) DISTRIBUTION
OF
FUNDING
BY 
TECHNICAL AREA.—Of the funds authorized to 
be appropriated for activities described in this 
subsection, funds shall be distributed for each 
of fiscal years 2007 through 2012 so as to 
achieve an approximate distribution of— 
‘‘(i) 20 percent of the funds to carry 
out activities for feedstock production 
under paragraph (4)(A); 
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‘‘(ii) 45 percent of the funds to carry 
out activities for overcoming recalcitrance 
of cellulosic biomass under paragraph 
(4)(B), of which not less than 10 percent 
shall be used for activities referred to in 
each clause of paragraph (4)(B); 
‘‘(iii) 30 percent of the funds to carry 
out activities for product diversification 
under paragraph (4)(C); and 
‘‘(iv) 5 percent of the funds to carry 
out activities for strategic guidance under 
paragraph (4)(D). 
‘‘(C) DISTRIBUTION OF FUNDING WITHIN 
EACH TECHNICAL AREA.—Within each technical 
area described in subparagraphs (A) through 
(C) of paragraph (4), funds shall be distributed 
for each of fiscal years 2007 through 2012 so 
as to achieve an approximate distribution of— 
‘‘(i) 15 percent of the funds for ap-
plied fundamentals; 
‘‘(ii) 35 percent of the funds for inno-
vation; and 
‘‘(iii) 50 percent of the funds for dem-
onstration and commercial applications. 
‘‘(D) MATCHING FUNDS.— 
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‘‘(i) IN
GENERAL.—A minimum 20 
percent funding match shall be required 
for demonstration projects under this sec-
tion. 
‘‘(ii) COMMERCIAL APPLICATIONS.—A 
minimum of 50 percent funding match 
shall be required for commercial applica-
tion projects under this section. 
‘‘(E) TECHNOLOGY
AND
INFORMATION 
TRANSFER TO AGRICULTURAL USERS.—The Ad-
ministrator of the Cooperative State Research, 
Education, and Extension Service and the Chief 
of the Natural Resources Conservation Service 
shall ensure that applicable research results and 
technologies from the Initiative are adapted, 
made available, and disseminated through those 
services, as appropriate. 
‘‘(h) ADMINISTRATIVE SUPPORT AND FUNDS.— 
‘‘(1) IN GENERAL.—To the extent administra-
tive support and funds are not provided by other 
agencies under paragraph (2)(b), the Secretary of 
Energy and the Secretary of Agriculture may pro-
vide such administrative support and funds of the 
Department of Energy and the Department of Agri-
culture to the Board and the Advisory Committee as 
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are necessary to enable the Board and the Advisory 
Committee to carry out their duties under this sec-
tion. 
‘‘(2) OTHER
AGENCIES.—The heads of the 
agencies referred to in subsection (e)(2)(C), and the 
other 
members 
appointed 
under 
subsection 
(e)(2)(D), may, and are encouraged to, provide ad-
ministrative support and funds of their respective 
agencies to the Board and the Advisory Committee. 
‘‘(3) LIMITATION.—Not more than 4 percent of 
the amount appropriated for each fiscal year under 
subsection (g)(6) may be used to pay the adminis-
trative costs of carrying out this section. 
‘‘(i) REPORTS.— 
‘‘(1) ANNUAL REPORTS.—For each fiscal year 
for which funds are made available to carry out this 
section, the Secretary of Energy and the Secretary 
of Agriculture shall jointly submit to Congress a de-
tailed report on— 
‘‘(A) the status and progress of the Initia-
tive, including a report from the Advisory Com-
mittee on whether funds appropriated for the 
Initiative have been distributed and used in a 
manner that— 
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‘‘(i) is consistent with the objectives, 
purposes, and additional considerations de-
scribed in paragraphs (2) through (5) of 
subsection (g); 
‘‘(ii) uses the set of criteria estab-
lished in the initial report submitted under 
title III of the Agricultural Risk Protection 
Act of 2000; 
‘‘(iii) achieves the distribution of 
funds described in subparagraphs (B) and 
(C) of subsection (g)(7); and 
‘‘(iv) takes into account any rec-
ommendations that have been made by the 
Advisory Committee; 
‘‘(B) the general status of cooperation and 
research and development efforts carried out at 
each agency with respect to biobased fuels and 
biobased products, including a report from the 
Advisory Committee on whether the points of 
contact are funding proposals that are selected 
under subsection (g)(3)(B)(iii); and 
‘‘(C) the plans of the Secretary of Energy 
and the Secretary of Agriculture for addressing 
concerns raised in the report, including con-
cerns raised by the Advisory Committee. 
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‘‘(2) UPDATES.—The Secretary and the Sec-
retary of Energy shall update the Vision and Road-
map documents prepared for Federal biomass re-
search and development activities. 
‘‘(3) MANAGEMENT PLAN.—The Secretary shall 
every five years, in consultation with the Secretary 
of Energy, submit to Congress a detailed manage-
ment plan for the implementation of this section. 
The management plan shall include— 
‘‘(A) consideration of the contribution of 
the section towards achieving the objectives re-
ferred to in paragraphs (2) and (3) of sub-
section (g) and in achieving the goals of the 
biomass program of the Department of Energy; 
‘‘(B) consideration of input solicited from 
the Advisory Committee, State, and private 
sources; and 
‘‘(C) specific and quantifiable near and 
long-term goals. 
‘‘(j) FUNDING.— 
‘‘(1) IN GENERAL.—Of the funds of the Com-
modity Credit Corporation, the Secretary of Agri-
culture shall make available to carry out this sec-
tion— 
‘‘(A) $35,000,000 for fiscal year 2008; 
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‘‘(B) $60,000,000 for fiscal year 2009; 
‘‘(C) $75,000,000 for fiscal year 2010; 
‘‘(D) $100,000,000 for fiscal year 2011; 
and 
‘‘(E) $150,000,000 for fiscal year 2012. 
‘‘(2) ADDITIONAL
FUNDING.—In addition to 
amounts transferred under paragraph (1), there are 
authorized to be appropriated to carry out this sec-
tion $200,000,000 for each of fiscal years 2006 
through 2015.’’. 
(b) REPEAL.—Title III of the Agricultural Risk Pro-
tection Act of 2000 (Public Law 106–224) is hereby re-
pealed. 
(c) MANAGEMENT PLAN SUBMISSION DATE.—The 
first management plan required to be submitted under sec-
tion 9008(i)(3) of the Biomass Research and Development 
Act of 2000, as added by subsection (a), shall be sub-
mitted not later than 180 days after the date of the enact-
ment of this Act. 
SEC. 9007. ADJUSTMENTS TO THE BIOENERGY PROGRAM. 
Section 9010 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8108) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
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(i) in subparagraph (A), by striking 
‘‘and’’; 
(ii) in subparagraph (B), by striking 
the final period and inserting a semicolon; 
and 
(iii) by adding at the end the fol-
lowing new subparagraphs: 
‘‘(C) production of heat and power at a 
biofuels plant; 
‘‘(D) biomass gasification; 
‘‘(E) hydrogen made from cellulosic com-
modities for fuel cells; 
‘‘(F) renewable diesel; 
‘‘(G) such other items as the Secretary 
considers appropriate.’’; 
(B) by striking paragraph (3) and insert-
ing the following: 
‘‘(3) ELIGIBLE FEEDSTOCK.— 
‘‘(A) IN
GENERAL.—The term ‘eligible 
feedstock’ means— 
‘‘(i) any plant material grown or col-
lected for the purpose of being converted to 
energy (including aquatic plants); 
‘‘(ii) any organic byproduct or residue 
from agriculture and forestry, including 
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mill residues and pulping residues that can 
be converted into energy; 
‘‘(iii) any waste material that can be 
converted to energy and is derived from 
plant material, including— 
‘‘(I) wood waste and residue; 
‘‘(II) specialty crop waste, includ-
ing waste derived from orchard trees, 
vineyard crops, and nut crops; or 
‘‘(III) other fruit and vegetable 
byproducts or residues; or 
‘‘(iv) animal waste and byproducts. 
‘‘(B) EXCLUSION.—The term ‘eligible feed-
stock’ does not include corn starch.’’; 
(C) in paragraph (4), by striking ‘‘an eligi-
ble commodity’’ and inserting ‘‘eligible feed-
stock’’; and 
(D) by adding at the end the following new 
paragraph: 
‘‘(5) RENEWABLE DIESEL.—The term ‘renew-
able diesel’ means any type of biobased renewable 
fuel derived from plant or animal matter that may 
be used as a substitute for standard diesel fuel and 
meets the requirements of an appropriate American 
Society for Testing and Material standard. Such 
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term does not include any fuel derived from coproc-
essing an eligible feedstock with a feedstock that is 
not biomass.’’; 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) by striking ‘‘The Secretary shall 
continue’’ and all that follows through ‘‘the 
Secretary makes’’ and inserting ‘‘The Sec-
retary shall make’’; and 
(ii) by striking ‘‘eligible commodities’’ 
and inserting ‘‘eligible feedstock’’; 
(B) in paragraph (2)(B), by striking ‘‘eligi-
ble commodities’’ and inserting ‘‘eligible feed-
stock’’; 
(C) in paragraph (3), by striking subpara-
graphs (B) and (C) and inserting the following: 
‘‘(B) PRIORITY.—In making payments 
under this paragraph, the Secretary shall give 
priority to contracts by considering the factors 
referred to in section 9003(e)(2)(B).’’; 
(D) by striking paragraph (6) and insert-
ing the following: 
‘‘(6) LIMITATION.—The Secretary may limit 
the amount of payments that may be received by an 
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eligible producer under this section as the Secretary 
considers appropriate.’’; and 
(E) by adding at the end the following new 
paragraph: 
‘‘(8) RENEWAL OF CONTRACTS.—When consid-
ering the renewal of a contract under this section, 
the Secretary shall review such contract to deter-
mine whether the production of bioenergy at the fa-
cility under contract is economically viable and re-
consider the need for the contract based on that de-
termination.’’; and 
(3) by striking subsection (c) and inserting the 
following: 
‘‘(c) FUNDING.—Of the funds of the Commodity 
Credit Corporation, the Secretary of Agriculture shall use 
to carry out this section— 
‘‘(1) $225,000,000 for fiscal year 2008; 
‘‘(2) $250,000,000 for fiscal year 2009; 
‘‘(3) $275,000,000 for fiscal year 2010; 
‘‘(4) $300,000,000 for fiscal year 2011; and 
‘‘(5) $350,000,000 for fiscal year 2012.’’. 
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SEC. 9008. RESEARCH, EXTENSION, AND EDUCATIONAL 
PROGRAMS ON BIOBASED ENERGY TECH-
NOLOGIES AND PRODUCTS. 
(a) WESTERN INSULAR PACIFIC CENTER.—Section 
9011(d) is amended by adding at the end the following 
new paragraph: 
‘‘(6) WESTERN INSULAR PACIFIC CENTER.—A 
western insular pacific center at the University of 
Hawaii for the region of Alaska, Hawaii, Guam, 
American Samoa, the Commonwealth of the North-
ern Mariana Islands, the Federated States of Micro-
nesia, the Republic of the Marshall Islands, and the 
Republic of Palau.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 
9011(j)(1)(C) of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 8109(j)(1)(C)) is amended by strik-
ing ‘‘2010’’ and inserting ‘‘2012’’. 
SEC. 9009. ENERGY COUNCIL OF THE DEPARTMENT OF AG-
RICULTURE. 
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. 9012. ENERGY COUNCIL OF THE DEPARTMENT OF AG-
RICULTURE. 
‘‘(a) IN GENERAL.—The Secretary of Agriculture 
shall establish an energy council in the Office of the Sec-
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