Sec. 3017. Bio-power
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Section 9008(a) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8108(a) ) is amended— by redesignating paragraphs
(2)and
(3)as paragraphs
(4)and (5), respectively; by inserting after paragraph
(1)the following: The term bio-power means the use of woody biomass to generate electricity. The term Board means the Biomass Research and Development Board. ; and by adding at the end the following: The term woody biomass heat means the use of woody biomass to generate heat. . Section 9008(c)(3)(A) of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8108(c)(3)(A) ) is amended by striking biofuels and biobased products and inserting biofuels, biobased products, bio-power, and woody biomass heat projects . Section 9008 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8108 ) is amended— by redesignating subsections (f), (g), and
(h)as subsections (g), (h), and (i), respectively; and by inserting after subsection
(e)the following: The Secretary of Agriculture and the Secretary of Energy, in consultation with the Board, shall establish a program under which the Secretary of Agriculture and the Secretary of Energy shall provide grants to relevant projects to support innovation and market development in woody biomass heat and bio-power. To be eligible to receive a grant under this subsection, the owner or operator of a relevant project shall submit to the Secretary of Agriculture and the Secretary of Energy an application at such time, in such manner, and containing such information as the Secretary of Agriculture and the Secretary of Energy may require. Of the amounts appropriated to carry out this subsection, the Secretary of Agriculture and the Secretary of Energy shall not provide more than— $15,000,000 for projects that develop innovative techniques for preprocessing biomass for woody biomass heat and bio-power, with the goals of lowering the costs of— distributed preprocessing technologies, including technologies designed to promote densification, torrefaction, and the broader commoditization of bioenergy feedstocks; and transportation; and $15,000,000 for innovative woody biomass heat and bio-power demonstration projects, including— district energy projects; innovation in transportation; and projects addressing the challenges of retrofitting existing coal-fired electricity generation facilities to use biomass. In selecting projects to receive grants under this subsection, the Secretary of Agriculture and the Secretary of Energy shall ensure, to the maximum extent practicable, diverse geographical distribution among the projects. The Federal share of the cost of a project carried out using a grant under this subsection shall be 50 percent. As a condition of receiving a grant under this subsection, the owner or operator of a project shall— participate in the applicable working group under paragraph (7); submit to the Secretary of Agriculture and the Secretary of Energy a report that includes— a description of the project and any relevant findings; and such other information as the Secretary of Agriculture and the Secretary of Energy determine to be necessary to complete the report of the Secretary under paragraph (9); and carry out such other activities as the Secretary of Agriculture and the Secretary of Energy determine to be necessary. The Secretary of Agriculture and the Secretary of Energy shall establish 2 working groups to share best practices and collaborate in project implementation, of which— 1 shall be comprised of representatives of projects that receive grants under paragraph (3)(A); and 1 shall be comprised of representatives of projects that receive grants under paragraph (3)(B). A grant may be provided under this subsection to relevant projects to support innovation and market development in oilseed crops. Not later than 5 years after the date of enactment of this Act, the Secretary of Agriculture and the Secretary of Energy shall submit to Congress a report describing— each project for which a grant has been provided under this subsection; any findings as a result of those projects; and the state of market and technology development, including market barriers and opportunities. . The Secretary of Agriculture shall establish, within the Rural Development Office, a low-interest loan program to support construction of residential, commercial or institutional, and industrial woody biomass heat and bio-power systems. The program under this subsection shall be carried out in accordance with such requirements as the Secretary of Agriculture may establish, by regulation, in taking into consideration best practices. There is authorized to be appropriated to the Secretary of Agriculture to carry out this subsection $50,000,000. In addition to loans under paragraph (1), woody biomass heat residential, commercial or institutional, and industrial wood energy systems shall be eligible to receive loans under the energy efficiency and conservation loan program of the Department of Agriculture under section 2 of the Rural Electrification Act of 1936 ( 7 U.S.C. 902 ).
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