H. R. 6—285
‘‘(4) MATCHING FUNDS.— 
‘‘(A) IN
GENERAL.—A minimum 20 percent funding 
match shall be required for demonstration projects under 
this title. 
‘‘(B) COMMERCIAL
APPLICATIONS.—A minimum of 50 
percent funding match shall be required for commercial 
application projects under this title. 
‘‘(5) TECHNOLOGY AND INFORMATION TRANSFER TO AGRICUL-
TURAL
USERS.—The Administrator 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.’’. 
(f) ANNUAL REPORTS.—Section 309 of the Biomass Research 
and Development Act of 2000 (Public Law 106–224; 7 U.S.C. 8101 
note) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking ‘‘purposes 
described in section 307(b)’’ and inserting ‘‘objectives, 
purposes, and additional considerations described in 
subsections (b) through (e) of section 307’’; 
(ii) in subparagraph (B), by striking ‘‘and’’ at the 
end; 
(iii) by redesignating subparagraph (C) as subpara-
graph (D); and 
(iv) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) achieves the distribution of funds described in 
paragraphs (2) and (3) of section 307(g); and’’; and 
(B) in paragraph (2), by striking ‘‘industrial products’’ 
and inserting ‘‘fuels and biobased products’’; and 
(2) by adding at the end the following: 
‘‘(c) UPDATES.—The Secretary and the Secretary of Energy shall 
update the Vision and Roadmap documents prepared for Federal 
biomass research and development activities.’’. 
(g) AUTHORIZATION OF APPROPRIATIONS.—Section 310(b) of the 
Biomass Research and Development Act of 2000 (Public Law 106–
224; 7 U.S.C. 8101 note) is amended by striking ‘‘title $54,000,000 
for each of fiscal years 2002 through 2007’’ and inserting ‘‘title 
$200,000,000 for each of fiscal years 2006 through 2015’’. 
(h) REPEAL OF SUNSET PROVISION.—Section 311 of the Biomass 
Research and Development Act of 2000 (Public Law 106–224; 7 
U.S.C. 8101 note) is repealed. 
SEC. 942. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS. 
(a) PURPOSE.—The purpose of this section is to— 
(1) 
accelerate 
deployment 
and 
commercialization 
of 
biofuels; 
(2) deliver the first 1,000,000,000 gallons in annual cel-
lulosic biofuels production by 2015; 
(3) ensure biofuels produced after 2015 are cost competitive 
with gasoline and diesel; and 
(4) ensure that small feedstock producers and rural small 
businesses are full participants in the development of the cel-
lulosic biofuels industry.
H. R. 6—286
(b) DEFINITIONS.—In this section: 
(1) CELLULOSIC BIOFUELS.—The term ‘‘cellulosic biofuels’’ 
means any fuel that is produced from cellulosic feedstocks. 
(2) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means a 
producer of fuel from cellulosic biofuels the production facility 
of which— 
(A) is located in the United States; 
(B) meets all applicable Federal and State permitting 
requirements; and 
(C) meets any financial criteria established by the Sec-
retary. 
(c) PROGRAM.— 
(1) ESTABLISHMENT.—The Secretary, in consultation with 
the Secretary of Agriculture, the Secretary of Defense, and 
the Administrator of the Environmental Protection Agency, 
shall establish an incentive program for the production of cel-
lulosic biofuels. 
(2) BASIS OF INCENTIVES.—Under the program, the Sec-
retary shall award production incentives on a per gallon basis 
of cellulosic biofuels from eligible entities, through— 
(A) set payments per gallon of cellulosic biofuels pro-
duced in an amount determined by the Secretary, until 
initiation of the first reverse auction; and 
(B) reverse auction thereafter. 
(3) FIRST REVERSE AUCTION.—The first reverse auction shall 
be held on the earlier of— 
(A) not later than 1 year after the first year of annual 
production in the United States of 100,000,000 gallons 
of cellulosic biofuels, as determined by the Secretary; or 
(B) not later than 3 years after the date of enactment 
of this Act. 
(4) REVERSE AUCTION PROCEDURE.— 
(A) IN
GENERAL.—On initiation of the first reverse 
auction, and each year thereafter until the earlier of the 
first year of annual production in the United States of 
1,000,000,000 gallons of cellulosic biofuels, as determined 
by the Secretary, or 10 years after the date of enactment 
of this Act, the Secretary shall conduct a reverse auction 
at which— 
(i) the Secretary shall solicit bids from eligible 
entities; 
(ii) eligible entities shall submit— 
(I) a desired level of production incentive on 
a per gallon basis; and 
(II) an estimated annual production amount 
in gallons; and 
(iii) the Secretary shall issue awards for the 
production amount submitted, beginning with the 
eligible entity submitting the bid for the lowest level 
of production incentive on a per gallon basis and 
meeting such other criteria as are established by the 
Secretary, until the amount of funds available for the 
reverse auction is committed. 
(B) AMOUNT
OF
INCENTIVE
RECEIVED.—An eligible 
entity selected by the Secretary through a reverse auction 
shall receive the amount of performance incentive
H. R. 6—287
requested in the auction for each gallon produced and 
sold by the entity during the first 6 years of operation. 
(C) COMMENCEMENT
OF
PRODUCTION
OF
CELLULOSIC 
BIOFUELS.—As a condition of the receipt of an award under 
this section, an eligible entity shall enter into an agreement 
with the Secretary under which the eligible entity agrees 
to begin production of cellulosic biofuels not later than 
3 years after the date of the reverse auction in which 
the eligible entity participates. 
(d) LIMITATIONS.—Awards under this section shall be limited 
to— 
(1) a per gallon amount determined by the Secretary during 
the first 4 years of the program; 
(2) a declining per gallon cap over the remaining lifetime 
of the program, to be established by the Secretary so that 
cellulosic biofuels produced after the first year of annual cel-
lulosic biofuels production in the United States in excess of 
1,000,000,000 gallons are cost competitive with gasoline and 
diesel; 
(3) not more than 25 percent of the funds committed within 
each reverse auction to any 1 project; 
(4) not more than $100,000,000 in any 1 year; and 
(5) not more than $1,000,000,000 over the lifetime of the 
program. 
(e) PRIORITY.—In selecting a project under the program, the 
Secretary shall give priority to projects that— 
(1) demonstrate outstanding potential for local and regional 
economic development; 
(2) include agricultural producers or cooperatives of agricul-
tural producers as equity partners in the ventures; and 
(3) have a strategic agreement in place to fairly reward 
feedstock suppliers. 
(f) AUTHORIZATIONS OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out this section $250,000,000. 
SEC. 943. PROCUREMENT OF BIOBASED PRODUCTS. 
(a) FEDERAL PROCUREMENT.— 
(1) DEFINITION OF PROCURING AGENCY.—Section 9001 of 
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
8101) is amended— 
(A) by redesignating paragraphs (4), (5), and (6) as 
paragraphs (5), (6), and (7), respectively; and 
(B) by inserting after paragraph (3) the following: 
‘‘(4) PROCURING
AGENCY.—The term ‘procuring agency’ 
means— 
‘‘(A) any Federal agency that is using Federal funds 
for procurement; or 
‘‘(B) any person contracting with any Federal agency 
with respect to work performed under the contract.’’. 
(2) PROCUREMENT.—Section 9002 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 8102) is amended— 
(A) by striking ‘‘Federal agency’’ each place it appears 
(other than in subsections (f) and (g)) and inserting ‘‘pro-
curing agency’’; 
(B) in subsection (c)(2)— 
(i) by striking ‘‘(2)’’ and all that follows through 
‘‘Notwithstanding’’ and inserting the following: