H. R. 6—64
(ii) at the option of each such State, that have 
an incentive program that requires the use of ethanol 
in the State; and 
(B) designed to study the production of ethanol from 
cane sugar, sugarcane, and sugarcane byproducts. 
(2) REQUIREMENTS.—A project described in paragraph (1) 
shall— 
(A) be limited to sugar producers and the production 
of ethanol in the States of Florida, Louisiana, Texas, and 
Hawaii, divided equally among the States, to demonstrate 
that the process may be applicable to cane sugar, sugar-
cane, and sugarcane byproducts; 
(B) include information on the ways in which the scale 
of production may be replicated once the sugar cane 
industry has located sites for, and constructed, ethanol 
production facilities; and 
(C) not last more than 3 years. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $36,000,000, to remain 
available until expended. 
SEC. 209. RURAL AND REMOTE COMMUNITY ELECTRIFICATION 
GRANTS. 
The Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2601 et seq.) is amended in title VI by adding at the end the 
following: 
‘‘SEC. 609. RURAL AND REMOTE COMMUNITIES ELECTRIFICATION 
GRANTS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) The term ‘eligible grantee’ means a local government 
or municipality, peoples’ utility district, irrigation district, and 
cooperative, nonprofit, or limited-dividend association in a rural 
area. 
‘‘(2) The term ‘incremental hydropower’ means additional 
generation achieved from increased efficiency after January 
1, 2005, at a hydroelectric dam that was placed in service 
before January 1, 2005. 
‘‘(3) The term ‘renewable energy’ means electricity gen-
erated from— 
‘‘(A) a renewable energy source; or 
‘‘(B) hydrogen, other than hydrogen produced from a 
fossil fuel, that is produced from a renewable energy source. 
‘‘(4) The term ‘renewable energy source’ means— 
‘‘(A) wind; 
‘‘(B) ocean waves; 
‘‘(C) biomass; 
‘‘(D) solar; 
‘‘(E) landfill gas; 
‘‘(F) incremental hydropower; 
‘‘(G) livestock methane; or 
‘‘(H) geothermal energy. 
‘‘(5) The term ‘rural area’ means a city, town, or unincor-
porated area that has a population of not more than 10,000 
inhabitants. 
‘‘(b) GRANTS.—The Secretary, in consultation with the Secretary 
of Agriculture and the Secretary of the Interior, may provide grants 
under this section to eligible grantees for the purpose of—
H. R. 6—65
‘‘(1) increasing energy efficiency, siting or upgrading trans-
mission and distribution lines serving rural areas; or 
‘‘(2) providing or modernizing electric generation facilities 
that serve rural areas. 
‘‘(c) GRANT ADMINISTRATION.—(1) The Secretary shall make 
grants under this section based on a determination of cost-effective-
ness and the most effective use of the funds to achieve the purposes 
described in subsection (b). 
‘‘(2) For each fiscal year, the Secretary shall allocate grant 
funds under this section equally between the purposes described 
in paragraphs (1) and (2) of subsection (b). 
‘‘(3) In making grants for the purposes described in subsection 
(b)(2), the Secretary shall give preference to renewable energy facili-
ties. 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to the Secretary to carry out this section 
$20,000,000 for each of fiscal years 2006 through 2012.’’. 
SEC. 210. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST 
BIOMASS 
FOR 
ELECTRIC 
ENERGY, 
USEFUL 
HEAT, 
TRANSPORTATION FUELS, AND OTHER COMMERCIAL 
PURPOSES. 
(a) DEFINITIONS.—In this section: 
(1) BIOMASS.—The term ‘‘biomass’’ means nonmerchantable 
materials or precommercial thinnings that are byproducts of 
preventive treatments, such as trees, wood, brush, thinnings, 
chips, and slash, that are removed— 
(A) to reduce hazardous fuels; 
(B) to reduce or contain disease or insect infestation; 
or 
(C) to restore forest health. 
(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has the meaning 
given the term in section 4(e) of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450b(e)). 
(3) NONMERCHANTABLE.—For purposes of subsection (b), 
the term ‘‘nonmerchantable’’ means that portion of the 
byproducts of preventive treatments that would not otherwise 
be used for higher value products. 
(4) PERSON.—The term ‘‘person’’ includes— 
(A) an individual; 
(B) a community (as determined by the Secretary con-
cerned); 
(C) an Indian tribe; 
(D) a small business or a corporation that is incor-
porated in the United States; and 
(E) a nonprofit organization. 
(5) PREFERRED COMMUNITY.—The term ‘‘preferred commu-
nity’’ means— 
(A) any Indian tribe; 
(B) any town, township, municipality, or other similar 
unit of local government (as determined 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 Federal or Indian land, the condition of
H. R. 6—66
which is at significant risk of catastrophic wildfire, 
disease, or insect infestation or which suffers from 
disease or insect infestation; or 
(C) any county that— 
(i) is not contained within a metropolitan statis-
tical area; and 
(ii) the Secretary concerned, in the sole discretion 
of the Secretary concerned, determines contains or is 
located near Federal or Indian land, the condition of 
which is at significant risk of catastrophic wildfire, 
disease, or insect infestation or which suffers from 
disease or insect infestation. 
(6) SECRETARY
CONCERNED.—The term ‘‘Secretary con-
cerned’’ means the Secretary of Agriculture or the Secretary 
of the Interior. 
(b) BIOMASS COMMERCIAL USE GRANT PROGRAM.— 
(1) IN
GENERAL.—The Secretary concerned may make 
grants to any person in a preferred community that owns 
or operates a facility that uses biomass as a raw material 
to produce electric energy, sensible heat, or transportation fuels 
to offset the costs incurred to purchase biomass for use by 
such facility. 
(2) GRANT AMOUNTS.—A grant under this subsection may 
not exceed $20 per green ton of biomass delivered. 
(3) MONITORING
OF
GRANT
RECIPIENT
ACTIVITIES.—As a 
condition of a grant under this subsection, 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 representative reasonable access to 
the facility that purchases or uses biomass and an opportunity 
to examine the inventory and records of the facility. 
(c) 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 improve the use of, or add value 
to, biomass. In making 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— 
(A) the anticipated public benefits of the project, 
including the potential to develop thermal or electric energy 
resources or affordable energy; 
(B) opportunities for the creation or expansion of small 
businesses and micro-businesses; 
(C) the potential for new job creation; 
(D) the potential for the project to improve efficiency 
or develop cleaner technologies for biomass utilization; and 
(E) the potential for the project to reduce the hazardous 
fuels from the areas in greatest need of treatment. 
(3) GRANT AMOUNT.—A grant under this subsection may 
not exceed $500,000. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated $50,000,000 for each of the fiscal years 2006 
through 2016 to carry out this section.