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Full Text of this Amendment
SA 3499. Mr. WYDEN submitted an amendment intended to be proposed by him to the bill H.R. 2419, to provide for the continuation of agricultural programs through fiscal year 2012, and for other purposes; which was ordered to lie on the table; as follows:
Strike section 9005 of the Farm Security and Rural Investment Act of 2002 (as amended by section 9001) and insert the following:
``SEC. 9005. BIOREFINERY AND REPOWERING ASSISTANCE.
``(a) Purpose.--The purpose of this section is to assist in the development of new or emerging technologies for the use of renewable biomass or other sources of renewable energy--
``(1) to develop advanced biofuels;
``(2) to increase the energy independence of the United States by promoting the replacement of energy generated from fossil fuels with energy generated from a renewable energy source;
``(3) to promote resource conservation, public health, and the environment;
``(4) to diversify markets for raw agricultural and forestry products, and agriculture waste material; and
``(5) to create jobs and enhance the economic development of the rural economy.
``(b) Definition of Repower.--In this section, the term `repower' means to substitute the production of heat or power from a fossil fuel source with heat or power from sources of renewable energy.
``(c) Assistance.--
``(1) IN GENERAL.--The Secretary shall make available to eligible entities described in subsection (d)--
``(A) grants to assist in paying the costs of--
``(i) development and construction of pilot- and demonstration-scale biorefineries intended to demonstrate the commercial viability of 1 or more processes for converting renewable biomass to advanced biofuels;
``(ii) repowering a biomass conversion facility, power plant, or manufacturing facility, in whole or in part;
``(iii) conducting a study to determine the feasibility of repowering a biomass conversion facility, power plant, or manufacturing facility, in whole or in part; or
``(iv) development and demonstration of harvesting, transportation, preprocessing, and storage technologies relating to the production and use of renewable biomass feedstocks in biorefineries and repowering projects; and
``(B) guarantees for loans made to fund--
``(i) the development and construction of commercial-scale biorefineries; or
``(ii) the repowering of a biomass conversion facility, power plant, or manufacturing facility, in whole or in part.
``(2) PREFERENCE.--In selecting projects to receive grants and loan guarantees under this section, the Secretary shall give preference to projects that receive or will receive financial support from the State in which the project is carried out.
``(d) Eligible Entities.--An eligible entity under this section is--
``(1) an individual;
``(2) a corporation;
``(3) a farm cooperative;
``(4) a rural electric cooperative or public power entity;
``(5) an association of agricultural producers;
``(6) a State or local energy agency or office;
``(7) an Indian tribe;
``(8) an institution of higher education;
``(9) a consortium comprised of any individuals or entities described in any of paragraphs (1) through (8); or
``(10) any other similar entity, as determined by the Secretary.
``(e) Grants.--
``(1) IN GENERAL.--The Secretary shall award grants under subsection (c)(1)(A) on a competitive basis.
``(2) SELECTION CRITERIA.--
``(A) GRANTS FOR DEVELOPMENT AND CONSTRUCTION OF PILOT AND DEMONSTRATION SCALE BIOREFINERIES.--
``(i) IN GENERAL.--In awarding grants for development and construction of pilot and demonstration scale biorefineries under subsection (c)(1)(A)(i), the Secretary shall select projects based on the likelihood that the projects will demonstrate the commercial viability of a new or emerging process for converting renewable biomass into advanced biofuels.
``(ii) FACTORS.--The factors to be considered under clause (i) may include--
``(I) the potential market for 1 or more products;
``(II) the level of financial participation by the applicants;
``(III) the availability of adequate funding from other sources;
``(IV) the participation of producer associations and cooperatives;
``(V) the beneficial impact on resource conservation, public health, and the environment;
``(VI) the timeframe in which the project will be operational;
``(VII) the potential for rural economic development;
``(VIII) the participation of multiple eligible entities; and
``(IX) the potential for developing advanced industrial biotechnology approaches.
``(B) GRANTS FOR REPOWERING.--In selecting projects to receive grants for repowering under clauses (ii) and (iii) of subsection (c)(1)(A), the Secretary shall consider--
``(i) the change in energy efficiency that would result from the proposed repowering of the eligible entity;
``(ii) the reduction in fossil fuel use that would result from the proposed repowering; and
``(iii) the volume of renewable biomass located in such proximity to the eligible entity as to make local sourcing of feedstock economically practicable.
``(C) GRANTS FOR HARVESTING, TRANSPORTATION, PREPROCESSING, AND STORAGE OF RENEWABLE BIOMASS FEEDSTOCKS.--In selecting projects to receive grants for the development and demonstration of harvesting, transportation, preprocessing, and storage technologies relating to the production and use of biomass feedstocks in biorefineries and repowering projects, the Secretary shall consider--
``(i) the regional diversity and availability of renewable biomass; and
``(ii) the economic and energy potential for use of the proposed type of renewable biomass.
``(3) COST SHARING.--
``(A) LIMITS.--
``(i) DEVELOPMENT AND CONSTRUCTION OF PILOT AND DEMONSTRATION SCALE BIOREFINERIES.--The amount of a grant awarded for development and construction of a biorefinery under subsection (c)(1)(A)(i) shall not exceed 50 percent of the cost of the project.
``(ii) REPOWERING.--The amount of a grant awarded for repowering under subsection (c)(1)(A)(ii) shall not exceed 20 percent of the cost of the project.
``(iii) FEASIBILITY STUDY FOR REPOWERING.--The amount of a grant awarded for a feasibility study for repowering under subsection (c)(1)(A)(iii) shall not exceed an amount equal to the lesser of--
``(I) an amount equal to 50 percent of the total cost of conducting the feasibility study; and
``(II) $150,000.
``(iv) HARVESTING, TRANSPORTATION, PREPROCESSING, AND STORAGE.--The amount of a grant awarded for harvesting, transportation, preprocessing, and storage under subsection (c)(1)(A)(iv) shall not exceed an amount equal to 50 percent of the cost of the project.
``(B) FORM OF GRANTEE SHARE.--
``(i) IN GENERAL.--The grantee share of the cost of a project may be made in the form of cash or the provision of services, material, or other in-kind contributions.
``(ii) LIMITATION.--The amount of the grantee share of the cost of a project that is made in the form of the provision of services, material, or other in-kind contributions shall not exceed 15 percent of the amount of the grantee share determined under subparagraph (A).
``(f) Loan Guarantees.--
``(1) CONDITIONS.--As a condition of making a loan guarantee under subsection (c)(1)(B), the Secretary shall require--
``(A) demonstration of binding commitments to cover, from sources other than Federal funds, at least 20 percent of the total cost of the project described in the application;
``(B) in the case of a new or emerging technology, demonstration that the project design has been validated through a technical review and subsequent operation of a pilot or demonstration scale facility that can be scaled up to commercial size; and
``(C) demonstration that the applicant provided opportunities to local investors (as determined by the Secretary) to participate in the financing or ownership of the biorefinery.
``(2) LOCAL OWNERSHIP.--The Secretary shall give preference under subsection (c)(1)(B) to applications for projects with significant local ownership.
``(3) APPROVAL.--Not later than 90 days after the Secretary receives an application for a loan guarantee under subsection (c)(1)(B), the Secretary shall approve or disapprove the application.
``(4) LIMITATIONS.--
``(A) MAXIMUM AMOUNT OF LOAN GUARANTEED.--
``(i) COMMERCIAL-SCALE BIOREFINERIES.--Subject to clause (iii), the principal amount of a loan guaranteed under subsection (c)(1)(B)(i) may not exceed $250,000,000.
``(ii) REPOWERING.--Subject to clause (iii), the principal amount of a loan guaranteed under subsection (c)(1)(B)(ii) may not exceed $70,000,000.
``(iii) RELATIONSHIP TO OTHER FEDERAL FUNDING.--The amount of a loan guaranteed under subsection (c)(1)(B) shall be reduced by the amount of other Federal funding that the entity receives for the same project.
``(B) MAXIMUM PERCENTAGE OF LOAN GUARANTEED.--A loan guaranteed under subsection (c)(1)(B) shall be in an amount not to exceed 80 percent of the project costs, as determined by the Secretary.
``(C) AUTHORITY TO GUARANTEE ENTIRE AMOUNT OF THE LOAN.--The Secretary may guarantee up to 100 percent of the principal and interest due on a loan guaranteed under subsection (c)(1)(B).
``(g) Consultation.--In carrying out this section, the Secretary shall consult with the Secretary of Energy.
``(h) Funding.--Of the funds of the Commodity Credit Corporation, the Secretary shall use for the cost of grants and loan guarantees to carry out this section $300,000,000 for fiscal year 2008, to remain available until expended.''.
(As printed in the Congressional Record for the Senate on Nov 5, 2007.)
Strike section 9005 of the Farm Security and Rural Investment Act of 2002 (as amended by section 9001) and insert the following:
``SEC. 9005. BIOREFINERY AND REPOWERING ASSISTANCE.
``(a) Purpose.--The purpose of this section is to assist in the development of new or emerging technologies for the use of renewable biomass or other sources of renewable energy--
``(1) to develop advanced biofuels;
``(2) to increase the energy independence of the United States by promoting the replacement of energy generated from fossil fuels with energy generated from a renewable energy source;
``(3) to promote resource conservation, public health, and the environment;
``(4) to diversify markets for raw agricultural and forestry products, and agriculture waste material; and
``(5) to create jobs and enhance the economic development of the rural economy.
``(b) Definition of Repower.--In this section, the term `repower' means to substitute the production of heat or power from a fossil fuel source with heat or power from sources of renewable energy.
``(c) Assistance.--
``(1) IN GENERAL.--The Secretary shall make available to eligible entities described in subsection (d)--
``(A) grants to assist in paying the costs of--
``(i) development and construction of pilot- and demonstration-scale biorefineries intended to demonstrate the commercial viability of 1 or more processes for converting renewable biomass to advanced biofuels;
``(ii) repowering a biomass conversion facility, power plant, or manufacturing facility, in whole or in part;
``(iii) conducting a study to determine the feasibility of repowering a biomass conversion facility, power plant, or manufacturing facility, in whole or in part; or
``(iv) development and demonstration of harvesting, transportation, preprocessing, and storage technologies relating to the production and use of renewable biomass feedstocks in biorefineries and repowering projects; and
``(B) guarantees for loans made to fund--
``(i) the development and construction of commercial-scale biorefineries; or
``(ii) the repowering of a biomass conversion facility, power plant, or manufacturing facility, in whole or in part.
``(2) PREFERENCE.--In selecting projects to receive grants and loan guarantees under this section, the Secretary shall give preference to projects that receive or will receive financial support from the State in which the project is carried out.
``(d) Eligible Entities.--An eligible entity under this section is--
``(1) an individual;
``(2) a corporation;
``(3) a farm cooperative;
``(4) a rural electric cooperative or public power entity;
``(5) an association of agricultural producers;
``(6) a State or local energy agency or office;
``(7) an Indian tribe;
``(8) an institution of higher education;
``(9) a consortium comprised of any individuals or entities described in any of paragraphs (1) through (8); or
``(10) any other similar entity, as determined by the Secretary.
``(e) Grants.--
``(1) IN GENERAL.--The Secretary shall award grants under subsection (c)(1)(A) on a competitive basis.
``(2) SELECTION CRITERIA.--
``(A) GRANTS FOR DEVELOPMENT AND CONSTRUCTION OF PILOT AND DEMONSTRATION SCALE BIOREFINERIES.--
``(i) IN GENERAL.--In awarding grants for development and construction of pilot and demonstration scale biorefineries under subsection (c)(1)(A)(i), the Secretary shall select projects based on the likelihood that the projects will demonstrate the commercial viability of a new or emerging process for converting renewable biomass into advanced biofuels.
``(ii) FACTORS.--The factors to be considered under clause (i) may include--
``(I) the potential market for 1 or more products;
``(II) the level of financial participation by the applicants;
``(III) the availability of adequate funding from other sources;
``(IV) the participation of producer associations and cooperatives;
``(V) the beneficial impact on resource conservation, public health, and the environment;
``(VI) the timeframe in which the project will be operational;
``(VII) the potential for rural economic development;
``(VIII) the participation of multiple eligible entities; and
``(IX) the potential for developing advanced industrial biotechnology approaches.
``(B) GRANTS FOR REPOWERING.--In selecting projects to receive grants for repowering under clauses (ii) and (iii) of subsection (c)(1)(A), the Secretary shall consider--
``(i) the change in energy efficiency that would result from the proposed repowering of the eligible entity;
``(ii) the reduction in fossil fuel use that would result from the proposed repowering; and
``(iii) the volume of renewable biomass located in such proximity to the eligible entity as to make local sourcing of feedstock economically practicable.
``(C) GRANTS FOR HARVESTING, TRANSPORTATION, PREPROCESSING, AND STORAGE OF RENEWABLE BIOMASS FEEDSTOCKS.--In selecting projects to receive grants for the development and demonstration of harvesting, transportation, preprocessing, and storage technologies relating to the production and use of biomass feedstocks in biorefineries and repowering projects, the Secretary shall consider--
``(i) the regional diversity and availability of renewable biomass; and
``(ii) the economic and energy potential for use of the proposed type of renewable biomass.
``(3) COST SHARING.--
``(A) LIMITS.--
``(i) DEVELOPMENT AND CONSTRUCTION OF PILOT AND DEMONSTRATION SCALE BIOREFINERIES.--The amount of a grant awarded for development and construction of a biorefinery under subsection (c)(1)(A)(i) shall not exceed 50 percent of the cost of the project.
``(ii) REPOWERING.--The amount of a grant awarded for repowering under subsection (c)(1)(A)(ii) shall not exceed 20 percent of the cost of the project.
``(iii) FEASIBILITY STUDY FOR REPOWERING.--The amount of a grant awarded for a feasibility study for repowering under subsection (c)(1)(A)(iii) shall not exceed an amount equal to the lesser of--
``(I) an amount equal to 50 percent of the total cost of conducting the feasibility study; and
``(II) $150,000.
``(iv) HARVESTING, TRANSPORTATION, PREPROCESSING, AND STORAGE.--The amount of a grant awarded for harvesting, transportation, preprocessing, and storage under subsection (c)(1)(A)(iv) shall not exceed an amount equal to 50 percent of the cost of the project.
``(B) FORM OF GRANTEE SHARE.--
``(i) IN GENERAL.--The grantee share of the cost of a project may be made in the form of cash or the provision of services, material, or other in-kind contributions.
``(ii) LIMITATION.--The amount of the grantee share of the cost of a project that is made in the form of the provision of services, material, or other in-kind contributions shall not exceed 15 percent of the amount of the grantee share determined under subparagraph (A).
``(f) Loan Guarantees.--
``(1) CONDITIONS.--As a condition of making a loan guarantee under subsection (c)(1)(B), the Secretary shall require--
``(A) demonstration of binding commitments to cover, from sources other than Federal funds, at least 20 percent of the total cost of the project described in the application;
``(B) in the case of a new or emerging technology, demonstration that the project design has been validated through a technical review and subsequent operation of a pilot or demonstration scale facility that can be scaled up to commercial size; and
``(C) demonstration that the applicant provided opportunities to local investors (as determined by the Secretary) to participate in the financing or ownership of the biorefinery.
``(2) LOCAL OWNERSHIP.--The Secretary shall give preference under subsection (c)(1)(B) to applications for projects with significant local ownership.
``(3) APPROVAL.--Not later than 90 days after the Secretary receives an application for a loan guarantee under subsection (c)(1)(B), the Secretary shall approve or disapprove the application.
``(4) LIMITATIONS.--
``(A) MAXIMUM AMOUNT OF LOAN GUARANTEED.--
``(i) COMMERCIAL-SCALE BIOREFINERIES.--Subject to clause (iii), the principal amount of a loan guaranteed under subsection (c)(1)(B)(i) may not exceed $250,000,000.
``(ii) REPOWERING.--Subject to clause (iii), the principal amount of a loan guaranteed under subsection (c)(1)(B)(ii) may not exceed $70,000,000.
``(iii) RELATIONSHIP TO OTHER FEDERAL FUNDING.--The amount of a loan guaranteed under subsection (c)(1)(B) shall be reduced by the amount of other Federal funding that the entity receives for the same project.
``(B) MAXIMUM PERCENTAGE OF LOAN GUARANTEED.--A loan guaranteed under subsection (c)(1)(B) shall be in an amount not to exceed 80 percent of the project costs, as determined by the Secretary.
``(C) AUTHORITY TO GUARANTEE ENTIRE AMOUNT OF THE LOAN.--The Secretary may guarantee up to 100 percent of the principal and interest due on a loan guaranteed under subsection (c)(1)(B).
``(g) Consultation.--In carrying out this section, the Secretary shall consult with the Secretary of Energy.
``(h) Funding.--Of the funds of the Commodity Credit Corporation, the Secretary shall use for the cost of grants and loan guarantees to carry out this section $300,000,000 for fiscal year 2008, to remain available until expended.''.
(As printed in the Congressional Record for the Senate on Nov 5, 2007.)
