A bill to amend the Farm Security and Rural Investment Act of 2002 to provide incentives for the production of bioenergy crops.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Farm-to-Fuel Investment Act of 
2007''.

SEC. 2. BIOENERGY TRANSITION ASSISTANCE.

    (a) Definitions.--Section 9003(b) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8103(b)) is amended--
            (1) by redesignating paragraphs (2) through (4) as 
        paragraphs (5) through (7), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(2) Bioenergy crop.--
                    ``(A) In general.--The term `bioenergy crop' 
                means--
                            ``(i) a perennial plant that can be used as 
                        feedstock for bioenergy production; or
                            ``(ii) an annual plant that--
                                    ``(I) can be used as feedstock for 
                                bioenergy production; and
                                    ``(II) is grown in a resource-
                                conserving crop rotation.
                    ``(B) Exclusions.--The term `bioenergy crop' does 
                not include--
                            ``(i) any crop that is eligible for any 
                        payments under title I; or
                            ``(ii) any plant that--
                                    ``(I) the Secretary determines to 
                                be invasive or noxious; or
                                    ``(II) has the potential to become 
                                invasive or noxious, as determined by 
                                the Secretary, in consultation with the 
                                United States Fish and Wildlife Service 
                                or a State conservation agency.
            ``(3) Bioenergy cropshed.--The term `bioenergy cropshed' 
        means a bioenergy cropshed designated by the Secretary under 
        subsection (g)(1).
            ``(4) Bioenergy producer.--The term `bioenergy producer' 
        means a producer that produces a bioenergy crop that, as 
        determined by the Secretary--
                    ``(A) is physically located in a bioenergy 
                cropshed; and
                    ``(B) can be used by the local biorefinery.''.
    (b) Bioenergy Transition Assistance.--Section 9003 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 8103) is amended--
            (1) by redesignating subsections (g) and (h) as subsections 
        (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following:
    ``(g) Bioenergy Transition Assistance.--
            ``(1) Designation of bioenergy cropsheds.--
                    ``(A) In general.--The Secretary shall designate as 
                bioenergy cropsheds, areas that are physically located 
                within, as determined by the Secretary--
                            ``(i) a 50-mile radius of an existing or 
                        planned biorefinery; or
                            ``(ii) some other economically-practicable 
                        distance from an existing or planned 
                        biorefinery.
                    ``(B) Specific conservation objectives.--Each 
                bioenergy cropshed designated under subparagraph (A) 
                shall include specific conservation objectives for 
                local resources of concern, including water quality, 
                wildlife habitat, soil quality, and air quality, as 
                determined by the Secretary, acting through the Natural 
                Resources Conservation Service and in consultation with 
                State technical committees.
                    ``(C) Priority.--In designating bioenergy cropsheds 
                under subparagraph (A), the Secretary shall give 
                priority to--
                            ``(i) locations in which the establishment 
                        of bioenergy cropsheds is most likely, as 
                        determined by the Secretary, to result in--
                                    ``(I) geographic diversity;
                                    ``(II) diversity of feedstocks;
                                    ``(III) net environmental benefit; 
                                and
                                    ``(IV) minimal environmental harm; 
                                and
                            ``(ii) areas in which the existing or 
                        planned biorefinery is owned primarily by 
                        residents of a rural area.
            ``(2) Bioenergy crop transition assistance.--
                    ``(A) In general.--The Secretary, acting through 
                the Natural Resources Conservation Service, shall offer 
                to enter into contracts with producers on a farm in a 
                bioenergy cropshed to provide bioenergy crop transition 
                assistance to encourage the producers to produce 
                bioenergy crops for a biorefinery located in the 
                bioenergy cropshed.
                    ``(B) Term of contract.--Contracts described in 
                subparagraph (A) shall be for a term of 3 years.
            ``(3) Eligibility.--
                    ``(A) In general.--As a condition of entering into 
                a bioenergy crop transition assistance contract, the 
                producers on a farm shall, as determined by the 
                Secretary--
                            ``(i) demonstrate that the producers are 
                        producing a bioenergy crop that is contracted 
                        for use by the biorefinery in the bioenergy 
                        cropshed;
                            ``(ii) agree to meet the quality criteria 
                        for water quality, wildlife habitat, and soil 
                        quality by the end of the contract period; and
                            ``(iii) agree to make available to the 
                        Secretary (or to an institution of higher 
                        education designated by the Secretary) such 
                        information as the Secretary considers to be 
                        appropriate--
                                    ``(I) to promote the production of 
                                bioenergy crops and the development of 
                                biorefinery technology; and
                                    ``(II) to evaluate the bioenergy 
                                transition assistance.
                    ``(B) Best practices database.--Subject to section 
                1770 of the Food Security Act of 1985 (7 U.S.C. 2276), 
                the Secretary shall make available to the public in a 
                database format the best practices information 
                developed by the Secretary in providing bioenergy 
                transition assistance.
            ``(4) Amount of payments.--In determining the amount of 
        annual bioenergy crop transition assistance to be paid to 
        producers on a farm under this subsection, the Secretary shall 
        consider--
                    ``(A) the cost of establishing the bioenergy crop;
                    ``(B) the amount necessary to encourage producers 
                on a farm to produce bioenergy crops in the quantity 
                needed by the biorefinery in the bioenergy cropshed;
                    ``(C) the amount that the producers on a farm would 
                have earned if the producers had produced a crop other 
                than a bioenergy crop; and
                    ``(D) such other factors as the Secretary considers 
                to be appropriate.
            ``(5) Funding.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use to carry out this 
        subsection $350,000,000 for the period of fiscal years 2008 
        through 2012, to remain available until expended.''.
    (c) Conforming Amendments.--Section 1770(d) of the Food Security 
Act of 1985 (7 U.S.C. 2276(d)) is amended--
            (1) in paragraph (11), by striking ``or'' at the end;
            (2) in paragraph (12), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(13) section 9003(g) of the Farm Security and Rural 
        Investment of 2002 (7 U.S.C. 8103(g))''.

SEC. 3. CONSERVATION SECURITY PROGRAM.

    (a) Definition of Bioenergy Crops.--Section 1238 of the Food 
Security Act of 1985 (16 U.S.C. 3838) is amended--
            (1) by redesignating paragraphs (3) through (15) as 
        paragraphs (5) through (17), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) Bioenergy crop.--The term `bioenergy crop' has the 
        meaning given the term in section 9003(b) of the Farm Security 
        and Rural Investment of 2002 (7 U.S.C. 8103(b)).
            ``(4) Bioenergy producer.--The term `bioenergy producer' 
        has the meaning given the term in section 9003(b) of the Farm 
        Security and Rural Investment of 2002 (7 U.S.C. 8103(b)).''.
    (b) Conservation Security Contracts.--Section 1238C(b)(1)(C)(iii) 
of the Food Security Act of 1985 (16 U.S.C. 3838c(b)(1)(C)(iii)) is 
amended--
            (1) in subclause (IV), by striking ``or'' at the end;
            (2) in subclause (V), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
                                    ``(VI) is a bioenergy producer and 
                                maintains and actively manages a 
                                conservation system that incorporates 2 
                                or more native perennial bioenergy crop 
                                species; or
                                    ``(VII) is a bioenergy producer and 
                                participates in a bioenergy crop system 
                                research and demonstration project.''.

Summary: Farm-to-Fuel Investment Act of 2007 - Amends the Farm Security and Rural Investment Act of 2002 to direct the Secretary of Agriculture to designate as bioenergy cropsheds areas that are physically located within a 50-mile radius, or some other economically-practicable distance, from an existing or planned biorefinery.

States that each designated bioenergy cropshed shall include local conservation objectives, including water quality, wildlife habitat, soil quality, and air quality.

Directs the Secretary, through the Natural Resources Conservation Service, to offer to enter into contracts with producers on a farm in a bioenergy cropshed to provide bioenergy crop transition assistance to encourage the producers to produce bioenergy crops.