595 
(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 following 
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 con-
siders appropriate.’’; 
(B) by striking paragraph (3) and inserting 
the following: 
‘‘(3) ELIGIBLE FEEDSTOCK.— 
‘‘(A) IN GENERAL.—The term ‘eligible feed-
stock’ 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 ‘renewable 
diesel’ means any type of biobased renewable fuel de-
rived 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 term does not 
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include any fuel derived from coprocessing an eligible 
feedstock with a feedstock that is not biomass.’’; and 
(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).’’; and 
(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 eligi-
ble producer under this section as the Secretary con-
siders appropriate.’’. 
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SEC. 9008. RESEARCH, EXTENSION, AND EDUCATIONAL 
PROGRAMS ON BIOBASED ENERGY TECH-
NOLOGIES AND PRODUCTS. 
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 striking ‘‘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 Secretary 
(in this section referred to as the ‘Council’) to coordinate 
the energy policy of the Department of Agriculture and con-
sult with other departments and agencies of the Federal 
Government. 
‘‘(b) MEMBERSHIP.— 
‘‘(1) IN GENERAL.—The Secretary shall appoint 
the members of the Council from among the staff of 
the agencies and mission areas of the Department of 
Agriculture with responsibilities relating to energy 
programs or policies. 
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‘‘(2) CHAIR.—The chief economist and the Under 
Secretary for Rural Development of the Department 
of Agriculture shall serve as the Chairs of the Council. 
‘‘(c) DUTIES OF OFFICE OF ENERGY POLICY AND NEW 
USES.—The Office of Energy Policy and New Uses of the 
Department of Agriculture shall support the activities of the 
Council.’’. 
SEC. 9010. FARM ENERGY PRODUCTION PILOT PROGRAM. 
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. 9013. FARM ENERGY PRODUCTION PILOT PROGRAM. 
‘‘(a) PROGRAM.—The Secretary of Agriculture shall es-
tablish a pilot program to provide grants to farmers for 
the purpose of demonstrating the feasibility of making a 
farm energy neutral using existing technologies. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$5,000,000 for fiscal years 2008 through 2012.’’. 
SEC. 9011. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 
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. 9014. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 
‘‘(a) GRANT AUTHORITY.— 
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‘‘(1) IN GENERAL.—The Secretary of Agriculture 
(in this section referred to as the ‘Secretary’) may 
make grants in accordance with this section to enable 
eligible rural communities to substantially increase 
their energy self-sufficiency. 
‘‘(2) ELIGIBLE RURAL COMMUNITY DEFINED.—In 
this section, the term ‘eligible rural community’ 
means a community that has a population of fewer 
than 25,000 individuals, and is not located in a met-
ropolitan statistical area (as defined by the Bureau 
of the Census). 
‘‘(b) APPLICATIONS.— 
‘‘(1) IN GENERAL.—A community desiring to re-
ceive a grant under this section shall submit to the 
Secretary an application for the grant, which con-
tains a description of how the community would use 
the grant to develop an integrated renewable energy 
system to substantially increase its energy self-suffi-
ciency. 
‘‘(2) INTEGRATED
RENEWABLE
ENERGY
SYS-
TEM.—In paragraph (1), the term ‘integrated renew-
able energy system’ includes— 
‘‘(A) the use of biofuels; 
‘‘(B) the use of biomass to produce elec-
tricity; 
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‘‘(C) the use of animal manure to produce 
biogas as a substitute for natural gas; 
‘‘(D) the use of new technologies to provide 
highly energy efficient lighting, buildings, or ve-
hicles; 
‘‘(E) the use of wind power to produce elec-
tricity and hydrogen; and 
‘‘(F) the use of solar energy. 
‘‘(c) CONSIDERATION OF APPLICATIONS.— 
‘‘(1) EVALUATION.—In making grants under this 
section, the Secretary shall evaluate applications 
based on their ability to demonstrate— 
‘‘(A) integration of different renewable en-
ergy sources at lowest total cost; 
‘‘(B) integration of different renewable en-
ergy sources with greatest potential for commer-
cialization; and 
‘‘(C) development of best practices, and 
models for viable rural energy self-sufficiency. 
‘‘(2) PREFERENCE.—In making grants under 
this section, the Secretary shall give preference to 
those which propose a project developed or carried out 
in coordination with— 
‘‘(A) universities or their non-profit founda-
tions; 
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‘‘(B) Federal, State, or local government 
agencies; 
‘‘(C) public or private power generation en-
tities; or 
‘‘(D) government entities with responsibility 
for water or natural resources. 
‘‘(d) GRANTS.— 
‘‘(1) COST-SHARING.—The amount of a grant 
under this section with respect to an application shall 
not exceed 75 percent of the cost of the activities de-
scribed in the application. 
‘‘(2) NUMBER OF GRANTS PER YEAR.—The Sec-
retary may make not more than 5 grants under this 
section in each fiscal year. 
‘‘(e) USE OF GRANTS.—A community to which a grant 
is made under this section shall use the grant to develop 
an integrated renewable energy system to improve the en-
ergy efficiency of the community, and shall document any 
energy savings resulting from the use of the grant. 
‘‘(f) REPORT TO THE CONGRESS.—The Secretary shall 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that document 
the best practices and approaches used by grantees receiving 
funds under this section. 
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‘‘(g) LIMITATIONS ON AUTHORIZATION OF APPROPRIA-
TIONS.—For grants under this section, there are authorized 
to be appropriated to the Secretary not more than 
$5,000,000 for fiscal year 2008, and such sums as may be 
necessary for fiscal years 2009 through 2012.’’. 
SEC. 9012. AGRICULTURAL BIOFUELS FROM BIOMASS IN-
TERNSHIP PILOT PROGRAM. 
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. 9015. AGRICULTURAL BIOFUELS FROM BIOMASS IN-
TERNSHIP PILOT PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary of Agriculture 
shall establish a structured, academically-oriented intern-
ship pilot program (in this section referred to as the ‘Pro-
gram’) to provide students from universities in California, 
Iowa, Missouri, Georgia, Minnesota, and other states with 
substantial farm-based economies with the opportunity to 
work within the Department of Agriculture, Congress and 
legislative branch agencies, other Federal departments and 
agencies, corporations, and nonprofit institutions on mat-
ters pertaining to policies regarding renewable energy, in-
cluding the conversion of biomass and other agricultural 
products to produce ethanol and other biofuels. 
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‘‘(b) ELIGIBILITY.—To be eligible for an internship 
under subsection (a) a student shall— 
‘‘(1) be a third or fourth year undergraduate stu-
dent or a graduate student at an accredited college or 
university in California, Iowa, Missouri, Georgia, 
Minnesota, or another State with a substantial farm- 
based economy that commits matching funds in ac-
cordance with subsection (g); 
‘‘(2) be a United States citizen; 
‘‘(3) be pursuing an undergraduate or graduate 
program in agriculture and related supporting sub-
jects with direct relevance to the subject of biorefinery, 
biofuels, and renewable energy; and 
‘‘(4) meet any other conditions or requirements 
that the Secretary considers necessary. 
‘‘(c) PRIORITIES OF INTERNSHIP PILOT PROGRAM.— 
In administering the Program (including in the selection 
of students to participate in the Program), the Secretary 
shall prioritize the following activities and placements: 
‘‘(1) Structured internship experiences that fea-
ture direct, hands-on assistance to policy makers en-
gaged in the development and implementation of ag-
riculture and related supporting policies and legisla-
tion, with direct relevance to the subject of bio-
refinery, biofuels, and renewable energy. 
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‘‘(2) Internship and academic seminar programs 
that provide a combination of workforce training, ex-
periential education, and leadership development de-
signed specifically for the Department of Agriculture 
and Congress, with regard to agriculture-based bio-
refinery, biofuels, and related renewable energy poli-
cies. 
‘‘(3) Establishment of regional and state net-
works that partner with the agricultural business, 
government and academic communities to enhance the 
prospects for providing financial assistance to stu-
dents, particularly minority students, from colleges 
and universities in each participating State who are 
from economically disadvantaged backgrounds. 
‘‘(4) Internship and academic seminar programs 
that focus on agriculture-based research, development, 
and policies addressing new technologies to enhance 
agriculture production and enhanced economic devel-
opment in the agriculture sector of the United States. 
‘‘(d) ADMINISTRATION OF THE PILOT PROGRAM.—The 
Secretary, in consultation with other executive and legisla-
tive branch officials, shall administer the Program. The 
Secretary may engage the services of an experienced, non-
profit, nonpartisan professional internship and academic 
seminar organization with extensive experience in devel-
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oping and carrying out Washington-based or other State- 
based internship programs and State-based financial assist-
ance initiatives for interns to assist in carrying out the 
Program. 
‘‘(e) SCHOLARSHIPS AND OTHER ASSISTANCE FOR IN-
TERNSHIPS.—The Secretary may make available to under-
graduate and graduate students participating in the Pro-
gram scholarships or other types of financial assistance, in-
cluding funds to cover the cost of housing, per diem living 
expenses, transportation, tuition and other educational ex-
penses, and related costs, that would allow participation 
by eligible undergraduate and graduate students from eco-
nomically-disadvantaged backgrounds within the Program 
States. 
‘‘(f) LONGITUDINAL STUDIES AND REPORTING RE-
QUIREMENTS.— 
‘‘(1) LONGITUDINAL STUDIES AND EVALUATION 
OF INTERNSHIP PROGRAM.—In developing and imple-
menting the Program, the Secretary shall carry out 
such longitudinal studies and program evaluations as 
he or she deems appropriate to ensure that the pro-
gram is administered in a cost-effective manner and 
has specific milestones, objectives, and results quan-
tified with regard to such Program. 
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‘‘(2) REPORTING
REQUIREMENTS.—The Sec-
retary shall submit to the Committee on Agriculture 
of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate 
periodic reports regarding the development and im-
plementation of the Program, including the longitu-
dinal 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 Secretary 
may not expend more than $200,000 in any fiscal year to 
provide internships to students pursuing an undergraduate 
or graduate degree in any particular State. 
‘‘(i) APPLICATION OF FUNDS.—The Secretary shall, to 
the maximum extent practicable, use funds made available 
under subsection (j) to provide scholarships and the other 
forms of financial assistance described in subsection (e) di-
rectly attributable to the participation in the Program by 
students from rural, economically-disadvantaged back-
grounds. 
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‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated such sums as may be nec-
essary to carry out this section.’’. 
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 consumption. 
‘‘(4) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means an entity located in the United States that 
markets an eligible commodity in the United States. 
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‘‘(b) FEEDSTOCK FLEXIBILITY PROGRAM.— 
‘‘(1) IN GENERAL.— 
‘‘(A) PURCHASES AND SALES.—For each of 
fiscal years 2008 through 2012, the Secretary 
shall purchase eligible commodities from eligible 
entities and sell such commodities to bioenergy 
producers for the purpose of producing 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 Fed-
eral Government by avoiding forfeitures to the 
Commodity Credit Corporation. 
‘‘(B) COMPETITIVE PROCEDURES.—In car-
rying out the purchases and sales required under 
subparagraph (A), the Secretary shall, to the 
maximum extent practicable, use competitive 
procedures, including the receiving, offering, 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 that 
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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 forfeitures to 
the Commodity Credit Corporation. 
‘‘(2) NOTICE.— 
‘‘(A) IN
GENERAL.—Not later than Sep-
tember 1, 2007, and each September 1 thereafter 
through fiscal year 2011, the Secretary shall pro-
vide notice to eligible entities and bioenergy pro-
ducers of the quantity of eligible commodities 
that shall be made available for purchase and 
sale for the subsequent fiscal year under this sec-
tion. 
‘‘(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 quantity 
of eligible commodities determined under sub-
paragraph (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 Cred-
it Corporation (accumulated pursuant to the program 
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