†
218
HR 6 EAS
SEC. 242. ASSESSMENT.
(a) IN GENERAL.—Not later than 1 year after the date
of enactment of this Act, the Secretary (in consultation with
the Secretary of Interior) shall—
(1) conduct an assessment of the energy needs of
insular areas; and
(2) submit a report describing the results of the
assessment to—
(A) the Committee on Energy and Natural
Resources of the Senate;
(B) the Committee on Energy and Com-
merce of the House of Representatives; and
(C) the Committee on Resources of the
House of Representatives.
(b) STRATEGIES AND PROJECTS.—In conducting the
assessment, for each of the insular areas, the Secretary shall
identify and evaluate the strategies or projects with the
greatest potential for reducing the dependence of the insular
area on imported fossil fuels as used for the generation of
electricity, including strategies and projects for—
(1) improved supply-side efficiency of centralized
electrical generation, transmission, and distribution
systems;
(2) 
improved 
demand-side 
management
through—
†
219
HR 6 EAS
(A) the application of established standards
for energy efficiency for appliances;
(B) the conduct of energy audits for busi-
ness and industrial customers; and
(C) the use of energy savings performance
contracts;
(3) 
increased 
use 
of 
renewable 
energy,
including—
(A) solar thermal energy for electric genera-
tion;
(B) solar thermal energy for water heating
in large buildings, such as hotels, hospitals, gov-
ernment buildings, and residences;
(C) photovoltaic energy;
(D) wind energy;
(E) hydroelectric energy;
(F) wave energy;
(G) energy from ocean thermal resources,
including ocean thermal-cooling for community
air conditioning;
(H) water vapor condensation for the pro-
duction of potable water;
(I) fossil fuel and renewable hybrid elec-
trical generation systems; and
†
220
HR 6 EAS
(J) other strategies or projects that the Sec-
retary may identify as having significant poten-
tial; and
(4) fuel substitution and minimization with in-
digenous biofuels, such as coconut oil.
(c) DISTRIBUTED GENERATION.—In conducting the
assessment, for each insular area with a significant need
for distributed generation, the Secretary shall identify and
evaluate the most promising strategies and projects de-
scribed in paragraphs (3) and (4) of subsection (b) for meet-
ing that need.
(d) FACTORS.—In assessing the potential of any strat-
egy or project under this section, the Secretary shall
consider—
(1) the estimated cost of the power or energy to
be produced, including—
(A) any additional costs associated with the
distribution of the generation; and
(B) the long-term availability of the genera-
tion source;
(2) the capacity of the local electrical utility to
manage, operate, and maintain any project that may
be undertaken; and
(3) other factors the Secretary considers to be ap-
propriate.
†
221
HR 6 EAS
SEC. 243. PROJECT FEASIBILITY STUDIES.
(a) IN GENERAL.—On a request described in sub-
section (b), the Secretary shall conduct a feasibility study
of a project to implement a strategy or project identified
under section 222 as having the potential to—
(1) significantly reduce the dependence of an in-
sular area on imported oil; or
(2) provide needed distributed generation to an
insular area.
(b) REQUEST.—The Secretary shall conduct a feasi-
bility study under subsection (a) on—
(1) the request of an electric utility located in an
insular area that commits to fund at least 10 percent
of the cost of the study; and
(2) if the electric utility is located in the Fed-
erated States of Micronesia, the Republic of the Mar-
shall Islands, or the Republic of Palau, written sup-
port for that request by the President or the Ambas-
sador of the affected freely associated state.
(c) CONSULTATION.—The Secretary shall consult with
regional utility organizations in—
(1) conducting feasibility studies under sub-
section (a); and
(2) determining the feasibility of potential
projects.
†
222
HR 6 EAS
(d) FEASIBILITY.—For the purpose of a feasibility
study under subsection (a), a project shall be determined
to be feasible if the project would significantly reduce the
dependence of an insular area on imported fossil fuels, or
provide needed distributed generation to an insular area,
at a reasonable cost.
SEC. 244. IMPLEMENTATION.
(a) IN GENERAL.—On a determination by the Sec-
retary (in consultation with the Secretary of the Interior)
that a project is feasible under section 223 and a commit-
ment by an electric utility to operate and maintain the
project, the Secretary may provide such technical and fi-
nancial assistance as the Secretary determines is appro-
priate for the implementation of the project.
(b) REGIONAL UTILITY ORGANIZATIONS.—In pro-
viding assistance under subsection (a), the Secretary shall
consider providing the assistance through regional utility
organizations.
SEC. 245. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated to the Secretary—
(1) $500,000 for the completion of the assessment
under section 222;
(2) $500,000 for each fiscal year for project feasi-
bility studies under section 223; and
†
223
HR 6 EAS
(3) $5,000,000 for each fiscal year for project
implementation under section 224.
(b) LIMITATION OF FUNDS RECEIVED BY INSULAR
AREAS.—No insular area may receive, during any 3-year
period, more than 20 percent of the total funds made avail-
able during that 3-year period under paragraphs (2) and
(3) of subsection (a) unless the Secretary determines that
providing funding in excess of that percentage best advances
existing opportunities to meet the objectives of this subtitle.
Subtitle E—Biomass Energy
SEC. 251. DEFINITIONS.
In this subtitle:
(1) BIOMASS.—The term ‘‘biomass’’ means non-
merchantable 
material 
from, 
or 
precommercial
thinnings of, trees and woody plants produced from
treatments—
(A) to reduce hazardous fuels;
(B) to reduce or contain disease or insect
infestations; or
(C) to restore forest health.
(2) ELIGIBLE COMMUNITY.—The term ‘‘eligible
community’’ means an Indian Reservation, or a
county, town, township, municipality, or other simi-
lar unit of local government with a population of not
more than 50,000 individuals that the Secretary de-
†
224
HR 6 EAS
termines is located in an area near Federal or Indian
land, that is—
(A) at significant risk of catastrophic wild-
fire, disease, or insect infestation; or
(B) diseased or infested by insects.
(3) ELIGIBLE
OPERATION.—The term ‘‘eligible
operation’’ means a facility that—
(A) is located within the boundaries of an
eligible community; and
(B) uses biomass from Federal or Indian
land as a raw material to produce electric en-
ergy, sensible heat, or transportation fuels.
(4) GREEN TON.—The term ‘‘green ton’’ means
2,000 pounds of biomass that has not been mechani-
cally or artificially dried.
(5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has
the meaning given the term in section 4(e) of the In-
dian Self-Determination and Education Assistance
Act (25 U.S.C. 450b(e)).
(6) PERSON.—The term ‘‘person’’ includes—
(A) an individual;
(B) an eligible community;
(C) an Indian tribe;
(D) a small business or a corporation that
is incorporated in the United States; and
†
225
HR 6 EAS
(E) a nonprofit organization.
(7) 
SECRETARY.—The 
term 
‘‘Secretary’’
means—
(A) the Secretary of Agriculture, with re-
spect to land within the National Forest System;
or
(B) the Secretary of the Interior, with re-
spect to Federal land under the jurisdiction of
the Secretary of the Interior and Indian land.
SEC. 252. BIOMASS COMMERCIAL UTILIZATION GRANT PRO-
GRAM.
(a) IN GENERAL.—The Secretary may make grants to
any person that owns or operates an eligible operation to
offset the costs incurred to purchase biomass for use by the
eligible operation.
(b) PRIORITY.—In making grants under subsection
(a), the Secretary shall give priority to eligible operations
that use biomass from the highest risk areas, as determined
by the Secretary.
(c) GRANT AMOUNT.—A grant provided under this sec-
tion may not exceed $20 per green ton of biomass delivered.
(d) MONITORING OF GRANT RECIPIENT ACTIVITIES.—
(1) IN GENERAL.—As a condition of a grant
under this section, the grant recipient shall keep such
records as the Secretary may require to fully and cor-
†
226
HR 6 EAS
rectly disclose the use of the grant funds and all
transactions involved in the purchase of biomass.
(2) ACCESS.—On notice by the Secretary, the
grant recipient shall provide the Secretary reasonable
access to examine the inventory and records of the eli-
gible operation.
(e) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to carry out this section for each of fiscal
years 2006 through 2010—
(A) $12,500,000 to the Secretary of Agri-
culture; and
(B) $12,500,000 to the Secretary of the Inte-
rior.
(2) AVAILABILITY.—Amounts made available
under paragraph (1) shall remain available until ex-
pended.
SEC. 253. IMPROVED BIOMASS UTILIZATION PROGRAM.
(a) IN GENERAL.—The Secretary may provide grants
to persons in eligible communities to offset the costs of devel-
oping or researching proposals to improve the use of bio-
mass or add value to biomass utilization.
(b) SELECTION.—Grant recipients shall be selected
based on the potential of a proposal to—
†
227
HR 6 EAS
(1) develop affordable thermal or electric energy
resources for the benefit of an eligible community;
(2) provide opportunities for the creation or ex-
pansion of small business concerns within an eligible
community;
(3) create new job opportunities within an eligi-
ble community;
(4) improve efficiency or develop cleaner tech-
nologies for biomass utilization; and
(5) reduce the hazardous fuel from the highest
risk areas.
(c) LIMITATION.—No grant provided under this section
shall exceed $500,000.
(d) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to carry out this section for each of fiscal
years 2006 through 2010—
(A) $12,500,000 to the Secretary of Agri-
culture; and
(B) $12,500,000 to the Secretary of the Inte-
rior.
(2) AVAILABILITY.—Amounts made available
under paragraph (1) shall remain available until ex-
pended.