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                                                       Calendar No. 310

106th CONGRESS

  1st Session

                                 S. 935

                          [Report No. 106-179]

_______________________________________________________________________

                                 A BILL

 To amend the National Agricultural Research, Extension, and Teaching 
 Policy Act of 1977 to authorize research to promote the conversion of 
   biomass into biobased industrial products, and for other purposes.

_______________________________________________________________________

                            October 8, 1999

                       Reported with an amendment





                                                       Calendar No. 310
106th CONGRESS
  1st Session
                                 S. 935

                          [Report No. 106-179]

 To amend the National Agricultural Research, Extension, and Teaching 
 Policy Act of 1977 to authorize research to promote the conversion of 
   biomass into biobased industrial products, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 30, 1999

   Mr. Lugar (for himself, Mr. Chafee, Mr. Harkin, Mr. Jeffords, Mr. 
   Murkowski, Mr. Allard, Mr. Daschle, Mr. Domenici, Mr. Kerrey, Mr. 
    Leahy, Mr. Lieberman, Mr. Craig, Mr. Grassley, Mr. Johnson, Mr. 
    Fitzgerald, Mr. Durbin, Mr. Kerry, Mr. Bayh, Mr. Burns, and Mr. 
   Bingaman) introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

                            October 8, 1999

                Reported by Mr. Lugar, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To amend the National Agricultural Research, Extension, and Teaching 
 Policy Act of 1977 to authorize research to promote the conversion of 
   biomass into biobased industrial products, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``National Sustainable Fuels 
and Chemicals Act of 1999''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds that--</DELETED>
        <DELETED>    (1) conversion of biomass into biobased industrial 
        products offers outstanding potential for benefit to the 
        national interest through improved strategic security and 
        balance of payments, healthier rural economies, improved 
        environmental quality, near-zero net greenhouse gas emissions, 
        technology export, and sustainable resource supply;</DELETED>
        <DELETED>    (2)(A) biomass is widely available at prices that 
        are competitive with low cost petroleum; and</DELETED>
        <DELETED>    (B) the key technical challenge to be overcome in 
        order for biobased industrial products to be cost competitive 
        is reducing the cost of technology for converting biomass into 
        desired biobased industrial products;</DELETED>
        <DELETED>    (3) biobased fuels, such as ethanol, have the 
        clear potential to be sustainable, low cost, and high 
        performance fuels that are compatible with both current and 
        future transportation systems and provide near zero net 
        greenhouse gas emissions;</DELETED>
        <DELETED>    (4) biobased chemicals--</DELETED>
                <DELETED>    (A) can provide functional replacements 
                for essentially all organic chemicals that are 
                currently derived from petroleum; and</DELETED>
                <DELETED>    (B) have the clear potential for 
                environmentally benign product life cycles;</DELETED>
        <DELETED>    (5) many biomass feedstocks suitable for 
        industrial processing show the clear potential for sustainable 
        production, in some cases resulting in improved soil fertility 
        and carbon sequestration;</DELETED>
        <DELETED>    (6)(A) grain processing mills are biorefineries 
        that produce a diversity of useful food, chemical, feed, and 
        fuel products; and</DELETED>
        <DELETED>    (B) technologies that result in further 
        diversification of the range of value-added biobased industrial 
        products can meet a key need for the grain processing 
        industry;</DELETED>
        <DELETED>    (7)(A) cellulosic feedstocks are attractive 
        because of their low cost and widespread availability; 
        and</DELETED>
        <DELETED>    (B) research resulting in cost-effective 
        technology to overcome the recalcitrance of cellulosic biomass 
        would allow biorefineries to produce fuels and bulk chemicals 
        on a very large scale, with a commensurately large realization 
        of the benefit described in paragraph (1);</DELETED>
        <DELETED>    (8) research into the fundamentals to understand 
        important mechanisms of biomass conversion processes can be 
        expected to accelerate the application and advancement of 
        biomass processing technology by--</DELETED>
                <DELETED>    (A) increasing the confidence and speed 
                with which new technologies can be scaled up; 
                and</DELETED>
                <DELETED>    (B) giving rise to processing innovations 
                based on new knowledge;</DELETED>
        <DELETED>    (9) the utility of biotechnology allows the design 
        of feedstocks that will meet future needs more 
        effectively;</DELETED>
        <DELETED>    (10)(A) because of the relatively short-term time 
        horizon characteristic of private sector investments, and 
        because many benefits of biomass processing are in the national 
        interest, it is appropriate for the Federal Government to 
        provide precommercial investment in fundamental and research-
        driven innovation in the biomass processing area; and</DELETED>
        <DELETED>    (B) such an investment would provide a valuable 
        complement to ongoing and past governmental support in the 
        biomass processing area; and</DELETED>
        <DELETED>    (11) several prominent studies, including studies 
        by the President's Council of Advisors on Science and 
        Technology and the National Research Council, support the 
        potential for large research-driven advances in technologies 
        for production of biobased industrial products as well as 
        associated benefits.</DELETED>

<DELETED>SEC. 3. CONVERSION OF BIOMASS INTO BIOBASED INDUSTRIAL 
              PRODUCTS.</DELETED>

<DELETED>    Title XIV of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is 
amended by adding at the end the following:</DELETED>

 <DELETED>``Subtitle N--Conversion of Biomass Into Biobased Industrial 
                           Products</DELETED>

<DELETED>``SEC. 1490. DEFINITIONS.</DELETED>

<DELETED>    ``In this subtitle:</DELETED>
        <DELETED>    ``(1) Advisory committee.--The term `Advisory 
        Committee' means the Sustainable Fuels and Chemicals Technical 
        Advisory Committee established by section 1490C.</DELETED>
        <DELETED>    ``(2) Biobased industrial product.--The term 
        `biobased industrial product' means any power, fuel, feed, 
        chemical product, or other consumer good derived from 
        biomass.</DELETED>
        <DELETED>    ``(3) Biomass.--The term `biomass' means any 
        organic matter that is available on a renewable or recurring 
        basis, including plants, trees, grasses, agricultural crops and 
        residues, wood and wood residues, municipal waste, animal waste 
        and residues, and aquatic plants.</DELETED>
        <DELETED>    ``(4) Board.--The term `Board' means the 
        Sustainable Fuels and Chemicals Board established by section 
        1490B.</DELETED>
        <DELETED>    ``(5) Initiative.--The term `Initiative' means the 
        Sustainable Fuels and Chemicals Research Initiative established 
        under section 1490D.</DELETED>
        <DELETED>    ``(6) Point of contact.--The term `point of 
        contact' means a point of contact designated under section 
        1490A(d).</DELETED>

<DELETED>``SEC. 1490A. COOPERATION AND COORDINATION IN SUSTAINABLE 
              FUELS AND CHEMICALS RESEARCH.</DELETED>

<DELETED>    ``(a) In General.--The Secretary of Agriculture and the 
Secretary of Energy shall cooperate with respect to, and coordinate, 
policies and procedures that promote research and development leading 
to the production of biobased industrial products.</DELETED>
<DELETED>    ``(b) Purpose.--The purpose of the cooperation and 
coordination shall be to promote research and development related to--
</DELETED>
        <DELETED>    ``(1) understanding the key mechanisms underlying 
        the recalcitrance of biomass for conversion into biobased 
        industrial products, including the use of agricultural crops 
        for conversion into biobased industrial products; and</DELETED>
        <DELETED>    ``(2) advanced technologies that will result in 
        large-scale commercial production of low cost biobased 
        industrial products.</DELETED>
<DELETED>    ``(c) Areas.--In carrying out this subtitle, the Secretary 
of Agriculture and the Secretary of Energy shall promote research and 
development to--</DELETED>
        <DELETED>    ``(1) advance the availability and widespread use 
        of energy efficient, economically competitive, and 
        environmentally sound biobased industrial products in a manner 
        that is consistent with the goals of the United States relating 
        to sustainable and secure supplies of food, chemicals, and 
        fuel;</DELETED>
        <DELETED>    ``(2) ensure full consideration of Federal land 
        and land management programs as potential feedstock resources 
        for biobased industrial products; and</DELETED>
        <DELETED>    ``(3) assess the environmental, economic, and 
        social impact of production of biobased industrial products 
        from biomass on a large scale.</DELETED>
<DELETED>    ``(d) Points of Contact.--</DELETED>
        <DELETED>    ``(1) In general.--To coordinate research and 
        development programs and activities relating to biobased 
        industrial products that are carried out by their respective 
        Departments--</DELETED>
                <DELETED>    ``(A) the Secretary of Agriculture shall 
                designate, as the point of contact for the Department 
                of Agriculture, an officer of the Department of 
                Agriculture appointed by the President to a position in 
                the Department before the date of the designation, by 
                and with the advice and consent of the Senate; 
                and</DELETED>
                <DELETED>    ``(B) the Secretary of Energy shall 
                designate, as the point of contact for the Department 
                of Energy, an officer of the Department of Energy 
                appointed by the President to a position in the 
                Department before the date of the designation, by and 
                with the advice and consent of the Senate.</DELETED>
        <DELETED>    ``(2) Duties.--The points of contact shall 
        jointly--</DELETED>
                <DELETED>    ``(A) assist in arranging interlaboratory 
                and site-specific supplemental agreements for research, 
                development, and demonstration projects relating to 
                biobased industrial products;</DELETED>
                <DELETED>    ``(B) serve as cochairpersons of the 
                Board;</DELETED>
                <DELETED>    ``(C) administer the Initiative; 
                and</DELETED>
                <DELETED>    ``(D) respond in writing to each 
                recommendation of the Advisory Committee made under 
                section 1490C(c)(2).</DELETED>

<DELETED>``SEC. 1490B. SUSTAINABLE FUELS AND CHEMICALS BOARD.</DELETED>

<DELETED>    ``(a) Establishment.--There is established the Sustainable 
Fuels and Chemicals Board to coordinate programs within and among 
departments and agencies of the Federal Government for the purpose of 
promoting the use of biobased industrial products by--</DELETED>
        <DELETED>    ``(1) maximizing the benefits deriving from 
        Federal grants and assistance; and</DELETED>
        <DELETED>    ``(2) bringing coherence to Federal 
        planning.</DELETED>
<DELETED>    ``(b) Membership.--The Board shall consist of:</DELETED>
        <DELETED>    ``(1) The point of contact of the Department of 
        Agriculture designated under section 1490A(d)(1)(A), who shall 
        serve as cochairperson of the Board.</DELETED>
        <DELETED>    ``(2) The point of contact of the Department of 
        Energy designated under section 1490A(d)(1)(B), who shall serve 
        as cochairperson of the Board.</DELETED>
        <DELETED>    ``(3) A senior officer of each of the following 
        agencies who is appointed by the head of the agency and who has 
        a rank that is equivalent to the points of contact:</DELETED>
                <DELETED>    ``(A) The Department of the 
                Interior.</DELETED>
                <DELETED>    ``(B) The Environmental Protection 
                Agency.</DELETED>
                <DELETED>    ``(C) The National Science 
                Foundation.</DELETED>
                <DELETED>    ``(D) The Office of Science and Technology 
                Policy.</DELETED>
        <DELETED>    ``(4) At the option of the Secretary of 
        Agriculture and the Secretary of Energy, other members 
        appointed by the Secretaries (after consultation with members 
        described in paragraphs (1) through (3)).</DELETED>
<DELETED>    ``(c) Duties.--The Board shall--</DELETED>
        <DELETED>    ``(1) coordinate research, development, and 
        demonstration activities relating to biobased industrial 
        products--</DELETED>
                <DELETED>    ``(A) between the Department of 
                Agriculture and the Department of Energy; and</DELETED>
                <DELETED>    ``(B) with other departments and agencies 
                of the Federal Government; and</DELETED>
        <DELETED>    ``(2) provide recommendations to the points of 
        contact concerning administration of this subtitle.</DELETED>
<DELETED>    ``(d) Funding.--Each agency represented on the Board is 
encouraged to provide funds for any purpose under this 
subtitle.</DELETED>

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