To enhance the national security of the United States by providing for the research, development, demonstration, administrative support, and market mechanisms for widespread deployment and commercialization of biobased fuels and biobased products.

1. Adds SEC. 9__. BIOMASS RESEARCH AND DEVELOPMENT on page 493, between lines 19 and 20

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   Inserted: SEC. 9__. BIOMASS RESEARCH AND DEVELOPMENT.

   Inserted: (a) Definitions.--Section 303 of the Biomass Research and Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--

   Inserted: (1) by striking paragraphs (2), (9), and (10);

   Inserted: (2) by redesignating paragraphs (3), (4), (5), (6), (7), and (8) as paragraphs (4), (5), (7), (8), (9), and (10), respectively;

   Inserted: (3) by inserting after paragraph (1) the following:

   Inserted: "(2) Biobased fuel.--The term 'biobased fuel' means any transportation fuel produced from biomass.

   Inserted: "(3) Biobased product.--The term 'biobased product' means an industrial product (including chemicals, materials, and polymers) produced from biomass, or a commercial or industrial product (including animal feed and electric power) derived in connection with the conversion of biomass to fuel.";

   Inserted: (4) by inserting after paragraph (5) (as redesignated by paragraph (2)) the following:

   Inserted: "(6) Demonstration.--The term 'demonstration' means demonstration of technology in a pilot plant or semi-works scale facility."; and

   Inserted: (5) by striking paragraph (9) (as redesignated by paragraph (2)) and inserting the following:

   Inserted: "(9) National laboratory.--The term 'National Laboratory' means any of the following laboratories owned by the Department:

   Inserted: "(A) Ames Laboratory.

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   Inserted: "(B) Argonne National Laboratory.

   Inserted: "(C) Brookhaven National Laboratory.

   Inserted: "(D) Fermi National Accelerator Laboratory.

   Inserted: "(E) Idaho National Laboratory.

   Inserted: "(F) Lawrence Berkeley National Laboratory.

   Inserted: "(G) Lawrence Livermore National Laboratory.

   Inserted: "(H) Los Alamos National Laboratory.

   Inserted: "(I) National Energy Technology Laboratory.

   Inserted: "(J) National Renewable Energy Laboratory.

   Inserted: "(K) Oak Ridge National Laboratory.

   Inserted: "(L) Pacific Northwest National Laboratory.

   Inserted: "(M) Princeton Plasma Physics Laboratory.

   Inserted: "(N) Sandia National Laboratories.

   Inserted: "(O) Stanford Linear Accelerator Center.

   Inserted: "(P) Thomas Jefferson National Accelerator Facility.".

   Inserted: (b) Cooperation and Coordination in Biomass Research and Development.--Section 304 of the Biomass Research and Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--

   Inserted: (1) in subsections (a) and (d), by striking "industrial products" each place it appears and inserting "fuels and biobased products";

   Inserted: (2) by striking subsections (b) and (c); and

   Inserted: (3) by redesignating subsection (d) as subsection (b).

   Inserted: (c) Biomass Research and Development Board.--Section 305 of the Biomass Research and Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--

   Inserted: (1) in subsections (a) and (c), by striking "industrial products" each place it appears and inserting "fuels and biobased products";

   Inserted: (2) in subsection (b)--

   Inserted: (A) in paragraph (1), by striking "304(d)(1)(B)" and inserting "304(b)(1)(B)"; and

   Inserted: (B) in paragraph (2), by striking "304(d)(1)(A)" and inserting "304(b)(1)(A)"; and

   Inserted: (3) in subsection (c)--

   Inserted: (A) in paragraph (1)(B), by striking "and" at the end;

   Inserted: (B) in paragraph (2), by striking the period at the end and inserting a semicolon; and

   Inserted: (C) by adding at the end the following:

   Inserted: "(3) ensure that--

   Inserted: "(A) solicitations are open and competitive with awards made annually; and

   Inserted: "(B) objectives and evaluation criteria of the solicitations are clearly stated and minimally prescriptive, with no areas of special interest; and

   Inserted: "(4) ensure that the panel of scientific and technical peers assembled under section 307(c)(2)(C) to review proposals is composed predominantly of independent experts selected from outside the Departments of Agriculture and Energy.".

   Inserted: (d) Biomass Research and Development Technical Advisory Committee.--Section 306 of the Biomass Research and Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--

   Inserted: (1) in subsection (b)(1)--

   Inserted: (A) in subparagraph (A), by striking "biobased industrial products" and inserting "biofuels";

   Inserted: (B) by redesignating subparagraphs (B) through (J) as subparagraphs (C) through (K), respectively;

   Inserted: (C) by inserting after subparagraph (A) the following:

   Inserted: "(B) an individual affiliated with the biobased industrial and commercial products industry;";

   Inserted: (D) in subparagraph (F) (as redesignated by subparagraph (B)) by striking "an individual" and inserting "2 individuals";

   Inserted: (E) in subparagraphs (C), (D), (G), and (I) (as redesignated by subparagraph (B)) by striking "industrial products" each place it appears and inserting "fuels and biobased products"; and

   Inserted: (F) in subparagraph (H) (as redesignated by subparagraph (B)), by inserting "and environmental" before "analysis";

   Inserted: (2) in subsection (c)(2)--

   Inserted: (A) in subparagraph (A), by striking "goals" and inserting "objectives, purposes, and considerations";

   Inserted: (B) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively;

   Inserted: (C) by inserting after subparagraph (A) the following:

   Inserted: "(B) solicitations are open and competitive with awards made annually and that objectives and evaluation criteria of the solicitations are clearly stated and minimally prescriptive, with no areas of special interest;"; and

   Inserted: (D) in subparagraph (C) (as redesignated by subparagraph (B)) by inserting "predominantly from outside the Departments of Agriculture and Energy" after "technical peers".

   Inserted: (e) Biomass Research and Development Initiative.--Section 307 of the Biomass Research and Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--

   Inserted: (1) in subsection (a), by striking "research on biobased industrial products" and inserting "research on, and development and demonstration of, biobased fuels and biobased products, and the methods, practices and technologies, biotechnology, for their production"; and

   Inserted: (2) by striking subsections (b) through (e) and inserting the following:

   Inserted: "(b) Agencies.--

   Inserted: "(1) Agriculture.--The Secretary of Agriculture, through the point of contact of the Department of Agriculture and in consultation with the Board, shall provide, or enter into, grants, contracts, and financial assistance under this section through the Cooperative State Research, Education, and Extension Service of the Department of Agriculture.

   Inserted: "(2) Energy.--The Secretary of Energy, though the point of contact of the Department of Energy and in consultation with the Board, shall provide, or enter into, grants, contracts, and financial assistance under this section through the appropriate agency, as determined by the Secretary of Energy.

   Inserted: "(c) Objectives.--The objectives of the Initiative are to develop--

   Inserted: "(1) technologies and processes necessary for abundant commercial production of biobased fuels at prices competitive with fossil fuels;

   Inserted: "(2) high-value biobased products--

   Inserted: "(A) to enhance the economic viability of biobased fuels and power; and

   Inserted: "(B) as substitutes for petroleum-based feedstocks and products; and

   Inserted: "(3) a diversity of sustainable domestic sources of biomass for conversion to biobased fuels and biobased products.

   Inserted: "(d) Purposes.--The purposes of the Initiative are--

   Inserted: "(1) to increase the energy security of the United States;

   Inserted: "(2) to create jobs and enhance the economic development of the rural economy;

   Inserted: "(3) to enhance the environment and public health; and

   Inserted: "(4) to diversify markets for raw agricultural and forestry products.

   Inserted: "(e) Technical Areas.--To advance the objectives and purposes of the Initiative, the Secretary of Agriculture and the Secretary of Energy, in consultation with the Administrator of the Environmental Protection Agency and heads of other appropriate departments and agencies (referred to in this section as the 'Secretaries'), shall direct research and development toward--

   Inserted: "(1) feedstock production through the development of crops and cropping systems relevant to production of raw materials for conversion to biobased fuels and biobased products, including--

   Inserted: "(A) development of advanced and dedicated crops with desired features, including enhanced productivity, broader site range, low requirements for chemical inputs, and enhanced processing;

   Inserted: "(B) advanced crop production methods to achieve the features described in subparagraph (A);

   Inserted: "(C) feedstock harvest, handling, transport, and storage; and

   Inserted: "(D) strategies for integrating feedstock production into existing managed land;

   Inserted: "(2) overcoming recalcitrance of cellulosic biomass through developing technologies for converting cellulosic biomass into intermediates that can subsequently be converted into biobased fuels and biobased products, including--

   Inserted: "(A) pretreatment in combination with enzymatic or microbial hydrolysis; and

   Inserted: "(B) thermochemical approaches, including gasification and pyrolysis;

   Inserted: "(3) product diversification through technologies relevant to production of a range of biobased products (including chemicals, animal feeds, and cogenerated power) that eventually can increase the feasibility of fuel production in a biorefinery, including--

   Inserted: "(A) catalytic processing, including thermochemical fuel production;

   Inserted: "(B) metabolic engineering, enzyme engineering, and fermentation systems for biological production of desired products or cogeneration of power;

   Inserted: "(C) product recovery;

   Inserted: "(D) power production technologies; and

   Inserted: "(E) integration into existing biomass processing facilities, including starch ethanol plants, paper mills, and power plants; and

   Inserted: "(4) analysis that provides strategic guidance for the application of biomass technologies in accordance with realization of societal benefits in improved sustainability and environmental quality, cost effectiveness, security, and rural economic development, usually featuring system-wide approaches.

   Inserted: "(f) Additional Considerations.--Within the technical areas described in subsection (e), and in addition to advancing the purposes described in subsection (d) and the objectives described in subsection (c), the Secretaries shall support research and development--

   Inserted: "(1) to create continuously expanding opportunities for participants in existing biofuels production by seeking synergies and continuity with current technologies and practices, including the use of dried distillers grains as a bridge feedstock;

   Inserted: "(2) to maximize the environmental, economic, and social benefits of production of biobased fuels and biobased products on a large scale through life-cycle economic and environmental analysis and other means; and

   Inserted: "(3) to assess the potential of Federal land and land management programs as feedstock resources for biobased fuels and biobased products, consistent with the integrity of soil and water resources and with other environmental considerations.

   Inserted: "(g) Eligible Entities.--To be eligible for a grant, contract, or assistance under this section, an applicant shall be--

   Inserted: "(1) an institution of higher education;

   Inserted: "(2) a national laboratory;

   Inserted: "(3) a Federal research agency;

   Inserted: "(4) a State research agency;

   Inserted: "(5) a private sector entity;

   Inserted: "(6) a nonprofit organization; or

   Inserted: "(7) a consortium of 2 of more entities described in paragraphs (1) through (6).

   Inserted: "(h) Administration.--

   Inserted: "(1) In general.--After consultation with the Board, the points of contact shall--

   Inserted: "(A) publish annually 1 or more joint requests for proposals for grants, contracts, and assistance under this section;

   Inserted: "(B) establish a priority in grants, contracts, and assistance under this section for research that advances the objectives, purposes, and additional considerations of this title;

   Inserted: "(C) require that grants, contracts, and assistance under this section be awarded competitively, on the basis of merit, after the establishment of procedures that provide for scientific peer review by an independent panel of scientific and technical peers; and

   Inserted: "(D) give some preference to applications that--

   Inserted: "(i) involve a consortia of experts from multiple institutions;

   Inserted: "(ii) encourage the integration of disciplines and application of the best technical resources; and

   Inserted: "(iii) increase the geographic diversity of demonstration projects.

   Inserted: "(2) Distribution of funding by technical area.--Of the funds authorized to be appropriated for activities described in this section, funds shall be distributed for each fiscal year so as to achieve an approximate distribution of--

   Inserted: "(A) 20 percent of the funds to carry out activities for feedstock production under subsection (e)(1);

   Inserted: "(B) 45 percent of the funds to carry out activities for overcoming recalcitrance of cellulosic biomass under subsection (e)(2);

   Inserted: "(C) 30 percent of the funds to carry out activities for product diversification under subsection (e)(3); and

   Inserted: "(D) 5 percent of the funds to carry out activities for strategic guidance under subsection (e)(4).

   Inserted: "(3) Distribution of funding within each technical area.--Within each technical area described in paragraphs (1) through (3) of subsection (e), funds shall be distributed for each fiscal year so as to achieve an approximate distribution of--

   Inserted: "(A) 15 percent of the funds for applied fundamentals;

   Inserted: "(B) 35 percent of the funds for innovation; and

   Inserted: "(C) 50 percent of the funds for demonstration.

   Inserted: "(4) Matching funds.--

   Inserted: "(A) In general.--A minimum 20 percent funding match shall be required for demonstration projects under this title.

   Inserted: "(B) Commercial applications.--A minimum of 50 percent funding match shall be required for commercial application projects under this title.

   Inserted: "(5) Technology and information transfer to agricultural users.--

   Inserted: "(A) In general.--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.

   Inserted: "(B) Report.--Not later than 2 years after the date of enactment of this paragraph, and every 2 years thereafter, the Administrator of the Cooperative State Research, Education, and Extension Service and the Chief of the Natural Resources Conservation Service shall submit to the committees of Congress with jurisdiction over the Initiative a report describing the activities conducted by the services under this subsection.".

   Inserted: (f) Reports.--Section 309 of the Biomass Research and Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is amended--

   Inserted: (1) in subsection (a)--

   Inserted: (A) in paragraph (2), by striking "industrial product" and inserting "fuels and biobased products"; and

   Inserted: (B) in paragraph (3), by striking "industrial products" each place it appears and inserting "fuels and biobased products";

   Inserted: (2) by redesignating subsection (b) as subsection (c);

   Inserted: (3) by inserting after subsection (a) the following:

   Inserted: "(b) Assessment Report and Strategic Plan.--Not later than 1 year after the date of enactment of the Energy Policy Act of 2005, the Secretary and the Secretary of Energy shall jointly submit to Congress a report that--

   Inserted: "(1) describes the status and progress of current research and development efforts in both the Federal Government and private sector in achieving the objectives, purposes, and considerations of this title, specifically addressing each of the technical areas identified in section 307(e);

   Inserted: "(2) describes the actions taken to implement the improvements directed by this title; and

   Inserted: "(3) outlines a strategic plan for achieving the objectives, purposes, and considerations of this title."; and

   Inserted: (4) in subsection (c) (as redesignated by paragraph (2))--

   Inserted: (A) in paragraph (1)--

   Inserted: (i) in subparagraph (A), by striking "purposes described in section 307(b)" and inserting "objectives, purposes, and additional considerations described in subsections (c) through (f) of section 307";

   Inserted: (ii) in subparagraph (B), by striking "and" at the end;

   Inserted: (iii) by redesignating subparagraph (C) as subparagraph (D); and

   Inserted: (iv) by inserting after subparagraph (B) the following:

   Inserted: "(C) achieves the distribution of funds described in paragraphs (2) and (3) of section 307(h); and"; and

   Inserted: (B) in paragraph (2), by striking "industrial products" and inserting "fuels and biobased products".

   Inserted: (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 fiscal year 2006 and each fiscal year thereafter".

   Inserted: (h) Hydrogen Intermediate Fuels Research Program.--

   Inserted: (1) In general.--The Secretary shall conduct a research, development, and demonstration program focused on the economic production and use of hydrogen from biofuels, with emphasis on the rural transportation and rural electrical generation sectors.

   Inserted: (2) Transportation sector objectives.--

   Inserted: (A) In general.--As part of the program conducted under paragraph (1), the Secretary, in coordination with the Secretary of Agriculture, shall conduct a 3-year program of research, development, and demonstration on the use of ethanol and other low-cost transportable renewable feedstocks as intermediate fuels for the safe, energy efficient, and cost-effective transportation of hydrogen.

   Inserted: (B) Goals.--The goals of the program shall include--

   Inserted: (i) demonstrating the cost-effective conversion of ethanol or other low-cost transportable renewable feedstocks to pure hydrogen suitable for eventual use fuel cells, using existing commercial reforming technology or modest modifications of existing technology to reform ethanol or other low-cost transportable renewable feedstocks into hydrogen;

   Inserted: (ii) converting at least 1 commercially available internal combustion engine hybrid electric passenger vehicle to operate on hydrogen;

   Inserted: (iii) installing and operating an ethanol reformer or reformer for another low-cost transportable renewable feedstock (including onsite hydrogen compression, storage, and dispensing) at the facilities of a fleet operator not later than 1 year after the date of the commencement of the program;

   Inserted: (iv) operating the 1 or more hydrogen internal combustion engine hybrid electric vehicles for a period of 2 years; and

   Inserted: (v) collecting emissions and fuel economy data on the 1 or more hydrogen-powered vehicles over various operating and environmental conditions.

   Inserted: (3) Electrical generation sector objectives.--The objectives of the program conducted under paragraph (1) in the rural electrical generation sector shall be to--

   Inserted: (A) design, develop, and test low-cost gasification equipment to convert biomass to hydrogen at regional rural cooperatives, or at businesses owned by farmers, close to agricultural operations to minimize the cost of biomass transportation to large central gasification plants;

   Inserted: (B) demonstrate low-cost electrical generation at such rural cooperatives or farmer-owned businesses, using renewable hydrogen derived from biomass in either fuel cell generators, or, as an interim cost reduction option, in conventional internal combustion engine gensets;

   Inserted: (C) determine the economic return to cooperatives or other businesses owned by farmers of producing hydrogen from biomass and selling electricity compared to agricultural economic returns from producing and selling conventional crops alone;

   Inserted: (D) evaluate the crop yield and long-term soil sustainability of growing and harvesting of feedstocks for biomass gasification, and

   Inserted: (E) demonstrate the use of a portion of the biomass-derived hydrogen in various agricultural vehicles to reduce--

   Inserted: (i) dependence on imported fossil fuel; and

   Inserted: (ii) environmental impacts.

   Inserted: (4) Authorization of appropriations.--There is authorized to be appropriated to carry out this subsection--

   Inserted: (A) $5,000,000 to carry out paragraph (2); and

   Inserted: (B) $5,000,000 to carry out paragraph (3).

   Inserted: SEC. 9__. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.

   Inserted: (a) Purpose.--The purpose of this section is to--

   Inserted: (1) accelerate deployment and commercialization of biofuels;

   Inserted: (2) deliver the first 1,000,000,000 gallons in annual cellulosic biofuels production by 2015;

   Inserted: (3) ensure biofuels produced after 2015 are cost competitive with gasoline and diesel; and

   Inserted: (4) ensure that small feedstock producers and rural small businesses are full participants in the development of the cellulosic biofuels industry.

   Inserted: (b) Definitions.--In this section:

   Inserted: (1) Cellulosic biofuels.--The term "cellulosic biofuels" means any fuel that is produced from cellulosic feedstocks.

   Inserted: (2) Eligible entity.--The term "eligible entity" means a producer of fuel from cellulosic biofuels the production facility of which--

   Inserted: (A) is located in the United States;

   Inserted: (B) meets all applicable Federal and State permitting requirements;

   Inserted: (C) is to begin production of cellulosic biofuels not later than 3 years after the date of the reverse auction in which the producer participates; and

   Inserted: (D) meets any financial criteria established by the Secretary.

   Inserted: (3) Secretary.--The term "Secretary" means the Secretary of Agriculture.

   Inserted: (c) Program.--

   Inserted: (1) Establishment.--The Secretary, in consultation with the Secretary of Energy, the Secretary of Defense, and the Administrator of the Environmental Protection Agency, shall establish an incentive program for the production of cellulosic biofuels.

   Inserted: (2) Basis of incentives.--Under the program, the Secretary shall award production incentives on a per gallon basis of cellulosic biofuels from eligible entities, through--

   Inserted: (A) set payments per gallon of cellulosic biofuels produced in an amount determined by the Secretary, until initiation of the first reverse auction; and

   Inserted: (B) reverse auction thereafter.

   Inserted: (3) First reverse auction.--The first reverse auction shall be held on the earlier of--

   Inserted: (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

   Inserted: (B) not later than 3 years after the date of enactment of this Act.

   Inserted: (4) Reverse auction procedure.--

   Inserted: (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--

   Inserted: (i) the Secretary shall solicit bids from eligible entities;

   Inserted: (ii) eligible entities shall submit--

   Inserted: (I) a desired level of production incentive on a per gallon basis; and

   Inserted: (II) an estimated annual production amount in gallons; and

   Inserted: (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, until the amount of funds available for the reverse auction is committed.

   Inserted: (B) Amount of incentive received.--An eligible entity selected by the Secretary through a reverse auction shall receive the amount of performance incentive requested in the auction for each gallon produced and sold by the entity during the first 6 years of operation.

   Inserted: (d) Limitations.--Awards under this section shall be limited to--

   Inserted: (1) a per gallon amount determined by the Secretary during the first 4 years of the program;

   Inserted: (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 cellulosic biofuels production in the United States in excess of 1,000,000,000 gallons are cost competitive with gasoline and diesel;

   Inserted: (3) not more than 25 percent of the funds committed within each reverse auction to any 1 project;

   Inserted: (4) not more than $100,000,000 in any 1 year; and

   Inserted: (5) not more than $1,000,000,000 over the lifetime of the program.

   Inserted: (e) Priority.--In selecting a project under the program, the Secretary shall give priority to projects that--

   Inserted: (1) demonstrate outstanding potential for local and regional economic development;

   Inserted: (2) include agricultural producers or cooperatives of agricultural producers as equity partners in the ventures; and

   Inserted: (3) have a strategic agreement in place to fairly reward feedstock suppliers.

   Inserted: (f) Authorizations of Appropriations.--There is authorized to be appropriated to carry out this section $250,000,000.

   Inserted: SEC. 9__. PROCUREMENT OF BIOBASED PRODUCTS.

   Inserted: (a) Federal Procurement.--

   Inserted: (1) Definition of procuring agency.--Section 9001 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8101) is amended--

   Inserted: (A) by redesignating paragraphs (4), (5), and (6) as paragraphs (5), (6), and (7), respectively; and

   Inserted: (B) by inserting after paragraph (3) the following:

   Inserted: "(4) Procuring agency.--The term 'procuring agency' means--

   Inserted: "(A) any Federal agency that is using Federal funds for procurement; or

   Inserted: "(B) any person contracting with any Federal agency with respect to work performed under the contract.".

   Inserted: (2) Procurement.--Section 9002 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102) is amended--

   Inserted: (A) by striking "Federal agency" each place it appears (other than in subsections (f) and (g)) and inserting "procuring agency";

   Inserted: (B) in subsection (c)(2)--

   Inserted: (i) by striking "(2)" and all that follows through "Notwithstanding" and inserting the following:

   Inserted: "(2) Flexibility.--Notwithstanding";

   Inserted: (ii) by striking "an agency" and inserting "a procuring agency"; and

   Inserted: (iii) by striking "the agency" and inserting "the procuring agency";

   Inserted: (C) in subsection (d), by striking "procured by Federal agencies" and inserting "procured by procuring agencies"; and

   Inserted: (D) in subsection (f), by striking "Federal agencies" and inserting "procuring agencies" .

   Inserted: (b) Capitol Complex Procurement.--Section 9002 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8102) (as amended by subsection (a)(2)) is amended--

   Inserted: (1) by redesignating subsection (j) as subsection (k); and

   Inserted: (2) by inserting after subsection (i) the following:

   Inserted: "(j) Inclusion.--Not later than 90 days after the date of enactment of the Energy Policy Act of 2005, the Architect of the Capitol, the Sergeant of Arms of the Senate, and the Chief Administrative Officer of the House of Representatives shall issue regulations that apply the requirements of this section to procurement for the Capitol Complex.".

   Inserted: (c) Education.--

   Inserted: (1) In general.--The Architect of the Capitol shall establish in the Capitol Complex a program of public education regarding use by the Architect of the Capitol of biobased products.

   Inserted: (2) Purposes.--The purposes of the program shall be--

   Inserted: (A) to establish the Capitol Complex as a showcase for the existence and benefits of biobased products; and

   Inserted: (B) to provide access to further information on biobased products to occupants and visitors.

   Inserted: (d) Regulations.--Requirements issued under the amendments made by subsection (b) shall be made in accordance with regulations issued by the Committee on Rules and Administration of the Senate and the Committee on House Administration of the House of Representatives.

   Inserted: SEC. 9__. SMALL BUSINESS BIOPRODUCT MARKETING AND CERTIFICATION GRANTS.

   Inserted: (a) In General.--Using amounts made available under subsection (g), the Secretary of Agriculture (referred to in this section as the "Secretary") shall make available on a competitive basis grants to eligible entities described in subsection (b) for the biobased product marketing and certification purposes described in subsection (c).

   Inserted: (b) Eligible Entities.--An entity eligible for a grant under this section is any manufacturer of biobased products that--

   Inserted: (1) has fewer than 50 employees;

   Inserted: (2) proposes to use the grant for the biobased product marketing and certification purposes described in subsection (c); and

   Inserted: (3) has not previously received a grant under this section.

   Inserted: (c) Biobased Product Marketing and Certification Grant Purposes.--A grant made under this section shall be used--

   Inserted: (1) to plan activities and working capital for marketing of biobased products; and

   Inserted: (2) to provide private sector cost sharing for the certification of biobased products.

   Inserted: (d) Matching Funds.--

   Inserted: (1) In general.--Grant recipients shall provide matching non-Federal funds equal to the amount of the grant received.

   Inserted: (2) Expenditure.--Matching funds shall be expended in advance of grant funding, so that for every dollar of grant that is advanced, an equal amount of matching funds shall have been funded prior to submitting the request for reimbursement.

   Inserted: (e) Amount.--A grant made under this section shall not exceed $100,000.

   Inserted: (f) Administration.--The Secretary shall establish such administrative requirements for grants under this section, including requirements for applications for the grants, as the Secretary considers appropriate.

   Inserted: (g) Authorizations of Appropriations.--There are authorized to be appropriated to make grants under this section--

   Inserted: (1) $1,000,000 for fiscal year 2006; and

   Inserted: (2) such sums as are necessary for fiscal year 2007 and each subsequent fiscal year.

   Inserted: SEC. 9__. REGIONAL BIOECONOMY DEVELOPMENT GRANTS.

   Inserted: (a) In General.--Using amounts made available under subsection (g), the Secretary of Agriculture (referred to in this section as the "Secretary") shall make available on a competitive basis grants to eligible entities described in subsection (b) for the purposes described in subsection (c).

   Inserted: (b) Eligible Entities.--An entity eligible for a grant under this section is any regional bioeconomy development association, agricultural or energy trade association, or Land Grant institution that--

   Inserted: (1) proposes to use the grant for the purposes described in subsection (c); and

   Inserted: (2) has not previously received a grant under this section.

   Inserted: (c) Regional Bioeconomy Development Association Grant Purposes.--A grant made under this section shall be used to support and promote the growth and development of the bioeconomy within the region served by the eligible entity, through coordination, education, outreach, and other endeavors by the eligible entity.

   Inserted: (d) Matching Funds.--

   Inserted: (1) In general.--Grant recipients shall provide matching non-Federal funds equal to the amount of the grant received.

   Inserted: (2) Expenditure.--Matching funds shall be expended in advance of grant funding, so that for every dollar of grant that is advanced, an equal amount of matching funds shall have been funded prior to submitting the request for reimbursement.

   Inserted: (e) Administration.--The Secretary shall establish such administrative requirements for grants under this section, including requirements for applications for the grants, as the Secretary considers appropriate.

   Inserted: (f) Amount.--A grant made under this section shall not exceed $500,000.

   Inserted: (g) Authorizations of Appropriations.--There are authorized to be appropriated to make grants under this section--

   Inserted: (1) $1,000,000 for fiscal year 2006; and

   Inserted: (2) such sums as are necessary for fiscal year 2007 and each subsequent fiscal year.

   Inserted: SEC. 9__. PREPROCESSING AND HARVESTING DEMONSTRATION GRANTS.

   Inserted: (a) In General.--The Secretary of Agriculture (referred to in this section as the "Secretary") shall make grants available on a competitive basis to enterprises owned by agricultural producers, for the purposes of demonstrating cost-effective, cellulosic biomass innovations in--

   Inserted: (1) preprocessing of feedstocks, including cleaning, separating and sorting, mixing or blending, and chemical or biochemical treatments, to add value and lower the cost of feedstock processing at a biorefinery; or

   Inserted: (2) 1-pass or other efficient, multiple crop harvesting techniques.

   Inserted: (b) Limitations on Grants.--

   Inserted: (1) Number of grants.--Not more than 5 demonstration projects per fiscal year shall be funded under this section.

   Inserted: (2) Non-federal cost share.--The non-Federal cost share of a project under this section shall be not less than 20 percent, as determined by the Secretary.

   Inserted: (c) Condition of Grant.--To be eligible for a grant for a project under this section, a recipient of a grant or a participating entity shall agree to use the material harvested under the project--

   Inserted: (1) to produce ethanol; or

   Inserted: (2) for another energy purpose, such as the generation of heat or electricity.

   Inserted: (d) Authorization for Appropriations.--There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2006 through 2010.

   Inserted: SEC. 9__. SENSE OF THE SENATE.

   Inserted: It is the sense of the Senate that Congress should amend the Federal tax code to encourage investment in, and production and use of, biobased fuels and biobased products through--

   Inserted: (1) an investment tax credit for the construction or modification of facilities for the production of fuels from cellulose biomass, to drive private capital towards new biorefinery projects in a manner that allows participation by smaller farms and cooperatives; and

   Inserted: (2) an investment tax credit to small manufacturers of biobased products to lower the capital costs of starting and maintaining a biobased business.

   Inserted: SEC. 9__. EDUCATION AND OUTREACH.

   Inserted: (a) In General.--The Secretary of Agriculture shall establish, within the Department of Agriculture or through an independent contracting entity, a program of education and outreach on biobased fuels and biobased products consisting of--

   Inserted: (1) training and technical assistance programs for feedstock producers to promote producer ownership, investment, and participation in the operation of processing facilities; and

   Inserted: (2) public education and outreach to familiarize consumers with the biobased fuels and biobased products.

   Inserted: (b) Authorization of Appropriations.--There is authorized to be appropriated to carry out this title $1,000,000 for each of fiscal years 2006 through 2010.

   Inserted: SEC. 9__. REPORTS.

   Inserted: (a) Biobased Product Potential.--Not later than 1 year after the date of enactment of this Act, the Secretary of Agriculture (referred to in this section as the "Secretary") shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that--

   Inserted: (1) describes the economic potential for the United States of the widespread production and use of commercial and industrial biobased products through calendar year 2025; and

   Inserted: (2) as the maximum extent practicable, identifies the economic potential by product area.

   Inserted: (b) Analysis of Economic Indicators.--Not later than 2 years after the date of enactment of this Act, and every 2 years thereafter, the Secretary shall submit to Congress an analysis of economic indicators of the biobased economy during the 2-year period preceding the analysis.

   Original wording

   On page 493, between lines 19 and 20, insert the following:

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As printed