II
110th CONGRESS
1st Session
S. 1242
IN THE SENATE OF THE UNITED STATES
April 26, 2007
Mr. Tester introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry
A BILL
To amend the Federal Crop Insurance Act and the Farm Security and Rural Investment Act of 2002 to establish a biofuel pilot program to offer crop insurance to producers of experimental biofuel crops and a program to make loans and loan guarantees to producers of experimental biofuel crops.
Experimental biofuel pilot program
In general
Section 523 of the Federal Crop Insurance Act (7 U.S.C. 1523) is amended by adding at the end the following:
Experimental biofuel pilot program
Definitions
In this subsection:
Experimental biofuel crop
In general
The term experimental biofuel crop means a crop—
that is produced for use as—
a nonpetroleum fuel source; or
nonpetroleum lubricant;
for which there is information to demonstrate that there are sufficient safeguards to prevent the spread of the crop as a noxious weed, as determined by the Corporation;
for which there is not an existing crop-specific policy or plan of insurance offered pursuant to this title; and
for which yield data exists for at least 1 crop year, as determined by the Corporation based on research or data, including research or data provided by—
an institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))); or
a research facility approved by the Corporation.
Inclusion
The term experimental biofuel crop includes camelina.
Producer
The term producer means an owner, landlord, tenant, or sharecropper on a farm that—
produces, and has beneficial interest in, an experimental biofuel crop; and
files a record of the farming operation for the farm in the appropriate county office of the Farm Service Agency.
Establishment
The Corporation shall carry out a pilot program under which producers of experimental biofuel crops may elect to receive crop insurance in accordance with this subsection.
Expected market price
In establishing the expected market price for each experimental biofuel crop, the Corporation may consider the expected market price established or approved by the Corporation for other reference crops, including similar oilseed and biofuel crops, as determined by the Corporation.
Actual production history
In determining the actual production history for a producer of an experimental biofuel crop, the Corporation may consider the production history for the producer of, or may apply transitional yields based on, reference crops, including oilseed and biofuel crops with similar yields to the experimental biofuel crop, as determined by the Corporation.
Requirement
As a condition of receiving crop insurance under this subsection, producers shall—
submit to the Corporation such yield and productivity information as the Corporation considers to be necessary to determine historical crop yields for the experimental biofuel crops; and
agree that the Corporation may make the yield and productivity information available to the public.
Limitations
Acreage
The Corporation shall enroll in the pilot program under this subsection not more than—
250 acres per producer;
100,000 acres per State; and
500,000 total acres.
Expenditures
The Corporation shall carry out the experimental biofuel pilot program under this subsection so that, to the maximum extent practicable, all costs associated with the pilot program do not exceed $15,000,000 for the period of fiscal years 2008 through 2012.
Administrative costs
The Corporation may use not more than 10 percent of amounts made available under this or any other Act for administrative and operating expenses of the Risk Management Agency to pay administrative costs to assess whether certain biofuel crops are experimental biofuel crops for which crop insurance can be provided under this subsection.
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Funding
Section 516(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended by adding at the end the following:
Costs associated with the conduct of the experimental biofuel pilot program carried out under section 523(f), subject to the limitations in paragraph (6) of that subsection.
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Experimental biofuel programs
Title IX of the Farm Security and Rural Investment Act (7 U.S.C. 8101 et seq.) is amended by adding at the end the following:
Experimental biofuel programs
Definitions
In this section, the terms experimental biofuel crop and producer have the meanings given the terms in section 523(f)(1) of the Federal Crop Insurance Act (7 U.S.C. 1523(f)(1)).
Loan and loan guarantee program
In general
To improve and stabilize farm income, to promote a better balance between supply and demand for experimental biofuel crops, and to assist producers in the orderly marketing of crops, the Secretary shall establish a program under which the Secretary shall make loans and loan guarantees to producers of experimental biofuel crops.
Use of funds
Producers of experimental biofuel crops that receive loans or loan guarantees under this subsection may use the funds—
to pay reasonable storage costs incurred by the producers, as determined by the Secretary; and
to pay other appropriate costs, as determined by the Secretary.
Grant program
The Secretary may make grants to research facilities and institutions of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))—
to study the use of experimental biofuel crops for animal feed; and
to conduct research on specific harvesting and planting techniques for new experimental biofuel crops.
Funding
In general
Notwithstanding any other provision of law, on October 1, 2007, and on each October 1 thereafter through October 1, 2011, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary—
$5,000,000 to carry out subsection (b); and
$5,000,000 to carry out subsection (c).
Receipt and acceptance
The Secretary shall be entitled to receive, shall accept, and shall use to carry out this section the funds transferred under paragraph (1), without further appropriation.
Availability of funds
Funds transferred under paragraph (1) shall remain available until expended.
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