“(13) Renewable chemical—The term renewable chemical means a monomer, polymer, plastic, formulated product, or chemical substance produced from renewable biomass.”
“(III) establish a targeted biobased-only procurement requirement under which the procuring agency shall issue a certain number of biobased-only contracts when the procuring agency is purchasing products, or purchasing services that include the use of products, that are included in a biobased product category designated by the Secretary.”
“(v) require reporting of quantities and types of biobased products purchased by procuring agencies;
“(vi) focus on products that apply an innovative approach to growing, harvesting, procuring, processing, or manufacturing biobased products regardless of the date of entry of the products into the marketplace;”
“(F) Required designations—Not later than 1 year after the date of enactment of this subparagraph, the Secretary shall begin to designate intermediate ingredients or feedstocks and assembled and finished biobased products in the guidelines issued under this paragraph.”
“(A) In general—The Secretary”
“(B) Auditing and compliance—The Secretary may carry out such auditing and compliance activities as the Secretary determines to be necessary to ensure compliance with subparagraph (A).”
“(4) Assembled and finished products—Not later than 1 year after the date of enactment of this paragraph, the Secretary shall begin issuing criteria for determining which assembled and finished products may qualify to receive the label under paragraph (1).”
“(d) Outreach, education, and promotion
“(1) In general—The Secretary may engage in outreach, educational, and promotional activities intended to increase knowledge, awareness, and benefits of biobased products.
“(2) Authorized activities—In carrying out this subsection, the Secretary may—
“(A) conduct consumer education and outreach (including consumer and awareness surveys);
“(B) conduct outreach to and support for State and local governments interested in implementing biobased purchasing programs;
“(C) partner with industry and nonprofit groups to produce educational and outreach materials and conduct educational and outreach events;
“(D) sponsor special conferences and events to bring together buyers and sellers of biobased products; and
“(E) support pilot and demonstration projects.”
“(C) the progress made by other Federal agencies in compliance with the biobased procurement requirements, including the quantity of purchases made; and
“(D) the status of outreach, educational, and promotional activities carried out by the Secretary under subsection (d), including the attainment of specific milestones and overall results.”
“(3) Economic impact study and report
“(A) In general—The Secretary shall conduct a study to assess the economic impact of the biobased products industry, including—
“(i) the quantity of biobased products sold;
“(ii) the value of the biobased products;
“(iii) the quantity of jobs created;
“(iv) the quantity of petroleum displaced;
“(v) other environmental benefits; and
“(vi) areas in which the use or manufacturing of biobased products could be more effectively used, including identifying any technical and economic obstacles and recommending how those obstacles can be overcome.
“(B) Report—Not later than 180 days after the date of enactment of this subparagraph, the Secretary shall submit to Congress a report describing the results of the study conducted under subparagraph (A).”
“(h) Forest products laboratory coordination—In determining whether products are eligible for the “USDA Certified Biobased Product” label, the Secretary (acting through the Forest Products Laboratory) shall—
“(1) review and approve forest-related products for which an application is submitted for the program;
“(2) expedite the approval of innovative products resulting from technology developed by the Forest Products Laboratory or partners of the Laboratory; and
“(3) provide appropriate technical assistance to applicants, as determined by the Secretary.”
“(3) Fiscal years 2014 through 2018—There is authorized to be appropriated to carry out this section $2,000,000 for each of fiscal years 2014 through 2018.
“(4) Mandatory funding for fiscal years 2014 through 2018—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $3,000,000 for each of fiscal years 2014 through 2018.”
“(1) Biobased product manufacturing—The term biobased product manufacturing means development, construction, and retrofitting of technologically new commercial-scale processing and manufacturing equipment and required facilities that will be used to convert renewable chemicals and other biobased outputs of biorefineries into end-user products on a commercial scale.”
“(3) grants and loan guarantees to fund the development and construction of renewable chemical and biobased product manufacturing facilities.”
“(1) Mandatory funding
“(A) In general—Subject to subparagraph (B), of the funds of the Commodity Credit Corporation, the Secretary shall use for the cost of loan guarantees under this section, to remain available until expended—
“(i) $100,000,000 for fiscal year 2013; and
“(ii) $58,000,000 for each of fiscal years 2014 and 2015.
“(B) Biobased product manufacturing—Of the total amount of funds made available for the period of fiscal years 2013 through 2015 under subparagraph (A), the Secretary use for the cost of loan guarantees under this section not more than $25,000,000 to promote biobased product manufacturing.”
“(3) Fiscal years 2014 through 2018—There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2014 through 2018.”
“(D) a council (as defined in section 1528 of the Agriculture and Food Act of 1981 (16 U.S.C. 3451)); and”
“(A) Grants—The amount of a grant under this subsection shall not exceed the lesser of—
“(i) $500,000; and
“(ii) 25 percent of the cost of the activity carried out using funds from the grant.”
“(4) Tiered application process
“(A) In general—In providing loan guarantees and grants under this subsection, the Secretary shall use a 3-tiered application process that reflects the size of proposed projects in accordance with this paragraph.
“(B) Tier 1—The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is not more than $80,000.
“(C) Tier 2—The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is greater than $80,000 but less than $200,000.
“(D) Tier 3—The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is equal to or greater than $200,000.
“(E) Application process—The Secretary shall establish an application, evaluation, and oversight process that is the most simplified for tier I projects and more comprehensive for each subsequent tier.”
“(4) Fiscal years 2014 through 2018—There is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2014 through 2018.
“(5) Mandatory funding for fiscal years 2013 through 2018—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $48,200,000 for each of fiscal years 2014 through 2018.”
“(3) Fiscal years 2014 through 2018—There is authorized to be appropriated to carry out this section $30,000,000 for each of fiscal years 2014 through 2018.
“(4) Mandatory funding for fiscal years 2014 through 2018—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $26,000,000 for each of fiscal years 2014 through 2018.”
“9011. Biomass Crop Assistance Program
“(a) Definitions—In this section:
“(1) BCAP—The term BCAP means the Biomass Crop Assistance Program established under this section.
“(2) BCAP project area—The term BCAP project area means an area that—
“(A) has specified boundaries that are submitted to the Secretary by the project sponsor and subsequently approved by the Secretary;
“(B) includes producers with contract acreage that will supply a portion of the renewable biomass needed by a biomass conversion facility; and
“(C) is physically located within an economically practicable distance from the biomass conversion facility.
“(3) Contract acreage—The term contract acreage means eligible land that is covered by a BCAP contract entered into with the Secretary.
“(4) Eligible crop
“(A) In general—The term eligible crop means a crop of renewable biomass.
“(B) Exclusions—The term eligible crop does not include—
“(i) any crop that is eligible to receive payments under title I of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8702 et seq.) or an amendment made by that title;
“(ii) any plant that is invasive or noxious or species or varieties of plants that credible risk assessment tools or other credible sources determine are potentially invasive, as determined by the Secretary in consultation with other appropriate Federal or State departments and agencies; or
“(iii) algae.
“(5) Eligible land
“(A) In general—The term eligible land includes—
“(i) agricultural and nonindustrial private forest lands (as defined in section 5(c) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103a(c))); and
“(ii) land enrolled in the agricultural conservation easement program established under subtitle H of title XII of the Food Security Act of 1985.
“(B) Exclusions—The term eligible land does not include—
“(i) Federal- or State-owned land;
“(ii) land that is native sod, as of the date of enactment of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8701 et seq.);
“(iii) land enrolled in the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.);
“(iv) land enrolled in the Agricultural Conservation Easement Program established under subtitle H of title XII of that Act; or
“(v) land enrolled in the conservation reserve program or the Agricultural Conservation Easement Program under a contract that will expire at the end of the current fiscal year.
“(6) Eligible material
“(A) In general—The term eligible material means renewable biomass harvested directly from the land, including crop residue from any crop that is eligible to receive payments under title I of the Agriculture Reform, Food, and Jobs Act of 2013 or an amendment made by that title.
“(B) Inclusions—The term eligible material shall only include—
“(i) eligible material that is collected or harvested by the eligible material owner—
“(I) directly from—
“(aa) National Forest System;
“(bb) Bureau of Land Management land;
“(cc) non-Federal land; or
“(dd) land owned by an individual Indian or Indian tribe that is held in trust by the United States for the benefit of the individual Indian or Indian tribe or subject to a restriction against alienation imposed by the United States;
“(II) in a manner that is consistent with—
“(aa) a conservation plan;
“(bb) a forest stewardship plan; or
“(cc) a plan that the Secretary determines is equivalent to a plan described in item (aa) or (bb) and consistent with Executive Order 13112 (42 U.S.C. 4321 note; relating to invasive species);
“(ii) if woody eligible material, woody eligible material that is produced on land other than contract acreage that—
“(I) is a byproduct of a preventative treatment that is removed to reduce hazardous fuel or to reduce or contain disease or insect infestation; and
“(II) if harvested from Federal land, is harvested in accordance with section 102(e) of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512(e)); and
“(iii) eligible material that is delivered to a qualified biomass conversion facility to be used for heat, power, biobased products, research, or advanced biofuels.
“(C) Exclusions—The term eligible material does not include—
“(i) material that is whole grain from any crop that is eligible to receive payments under title I of the Agriculture Reform, Food, and Jobs Act of 2013 or an amendment made by that title, including—
“(I) barley, corn, grain sorghum, oats, rice, or wheat;
“(II) honey;
“(III) mohair;
“(IV) oilseeds, including canola, crambe, flaxseed, mustard seed, rapeseed, safflower seed, soybeans, sesame seed, and sunflower seed;
“(V) peanuts;
“(VI) pulse;
“(VII) chickpeas, lentils, and dry peas;
“(VIII) dairy products;
“(IX) sugar; and
“(X) wool and cotton boll fiber;
“(ii) animal waste and byproducts, including fat, oil, grease, and manure;
“(iii) food waste and yard waste;
“(iv) algae;
“(v) woody eligible material that—
“(I) is removed outside contract acreage; and
“(II) is not a byproduct of a preventative treatment to reduce hazardous fuel or to reduce or contain disease or insect infestation;
“(vi) any woody eligible material collected or harvested outside contract acreage that would otherwise be used for existing market products; or
“(vii) bagasse.
“(7) Producer—The term producer means an owner or operator of contract acreage that is physically located within a BCAP project area.
“(8) Project sponsor—The term project sponsor means—
“(A) a group of producers; or
“(B) a biomass conversion facility.
“(9) Socially disadvantaged farmer or rancher—The term socially disadvantaged farmer or rancher has the meaning given the term in section 2501(e) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)).
“(b) Establishment and purpose—The Secretary shall establish and administer a Biomass Crop Assistance Program to—
“(1) support the establishment and production of eligible crops for conversion to bioenergy in selected BCAP project areas; and
“(2) assist agricultural and forest land owners and operators with the collection, harvest, storage, and transportation of eligible material for use in a biomass conversion facility.
“(c) BCAP project area
“(1) In general—The Secretary shall provide financial assistance to a producer of an eligible crop in a BCAP project area.
“(2) Selection of project areas
“(A) In general—To be considered for selection as a BCAP project area, a project sponsor shall submit to the Secretary a proposal that, at a minimum, includes—
“(i) a description of the eligible land and eligible crops of each producer that will participate in the proposed BCAP project area;
“(ii) a letter of commitment from a biomass conversion facility that the facility will use the eligible crops intended to be produced in the proposed BCAP project area;
“(iii) evidence that the biomass conversion facility has sufficient equity available, as determined by the Secretary, if the biomass conversion facility is not operational at the time the proposal is submitted to the Secretary; and
“(iv) any other information about the biomass conversion facility or proposed biomass conversion facility that the Secretary determines necessary for the Secretary to be reasonably assured that the plant will be in operation by the date on which the eligible crops are ready for harvest.
“(B) BCAP project area selection criteria—In selecting BCAP project areas, the Secretary shall consider—
“(i) the volume of the eligible crops proposed to be produced in the proposed BCAP project area and the probability that those crops will be used for the purposes of the BCAP;
“(ii) the volume of renewable biomass projected to be available from sources other than the eligible crops grown on contract acres;
“(iii) the anticipated economic impact in the proposed BCAP project area;
“(iv) the opportunity for producers and local investors to participate in the ownership of the biomass conversion facility in the proposed BCAP project area;
“(v) the participation rate by—
“(I) beginning farmers or ranchers (as defined in accordance with section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a))); or
“(II) socially disadvantaged farmers or ranchers;
“(vi) the impact on soil, water, and related resources;
“(vii) the variety in biomass production approaches within a project area, including (as appropriate)—
“(I) agronomic conditions;
“(II) harvest and postharvest practices; and
“(III) monoculture and polyculture crop mixes;
“(viii) the range of eligible crops among project areas; and
“(ix) any additional information that the Secretary determines to be necessary.
“(3) Contract
“(A) In general—On approval of a BCAP project area by the Secretary, each producer in the BCAP project area shall enter into a contract directly with the Secretary.
“(B) Minimum terms—At a minimum, a contract under this subsection shall include terms that cover—
“(i) an agreement to make available to the Secretary, or to an institution of higher education or other entity designated by the Secretary, such information as the Secretary considers to be appropriate to promote the production of eligible crops and the development of biomass conversion technology;
“(ii) compliance with the highly erodible land conservation requirements of subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and the wetland conservation requirements of subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.);
“(iii) the implementation of (as determined by the Secretary)—
“(I) a conservation plan;
“(II) a forest stewardship plan; or
“(III) a plan that is equivalent to a conservation or forest stewardship plan; and
“(iv) any additional requirements that Secretary determines to be necessary.
“(C) Duration—A contract under this subsection shall have a term of not more than—
“(i) 5 years for annual and perennial crops; or
“(ii) 15 years for woody biomass.
“(4) Relationship to other programs—In carrying out this subsection, the Secretary shall provide for the preservation of cropland base and yield history applicable to the land enrolled in a BCAP contract.
“(5) Payments
“(A) In general—The Secretary shall make establishment and annual payments directly to producers to support the establishment and production of eligible crops on contract acreage.
“(B) Amount of establishment payments
“(i) In general—Subject to clause (ii), the amount of an establishment payment under this subsection shall be not more than 50 percent of the costs of establishing an eligible perennial crop covered by the contract but not to exceed $500 per acre, including—
“(I) the cost of seeds and stock for perennials;
“(II) the cost of planting the perennial crop, as determined by the Secretary; and
“(III) in the case of nonindustrial private forestland, the costs of site preparation and tree planting.
“(ii) Socially disadvantaged farmers or ranchers—In the case of socially disadvantaged farmers or ranchers, the costs of establishment may not exceed $750 per acre.
“(C) Amount of annual payments
“(i) In general—Subject to clause (ii), the amount of an annual payment under this subsection shall be determined by the Secretary.
“(ii) Reduction—The Secretary shall reduce an annual payment by an amount determined to be appropriate by the Secretary, if—
“(I) an eligible crop is used for purposes other than the production of energy at the biomass conversion facility;
“(II) an eligible crop is delivered to the biomass conversion facility;
“(III) the producer receives a payment under subsection (d);
“(IV) the producer violates a term of the contract; or
“(V) the Secretary determines a reduction is necessary to carry out this section.
“(D) Exclusion—The Secretary shall not make any BCAP payments on land for which payments are received under the conservation reserve program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) or the agricultural conservation easement program established under subtitle H of title XII of that Act.
“(d) Assistance with collection, harvest, storage, and transportation
“(1) In general—The Secretary shall make a payment for the delivery of eligible material to a biomass conversion facility to—
“(A) a producer of an eligible crop that is produced on BCAP contract acreage; or
“(B) a person with the right to collect or harvest eligible material, regardless of whether the eligible material is produced on contract acreage.
“(2) Payments
“(A) Costs covered—A payment under this subsection shall be in an amount described in subparagraph (B) for—
“(i) collection;
“(ii) harvest;
“(iii) storage; and
“(iv) transportation to a biomass conversion facility.
“(B) Amount—Subject to paragraph (3), the Secretary may provide matching payments at a rate of up to $1 for each $1 per ton provided by the biomass conversion facility, in an amount not to exceed $20 per dry ton for a period of 4 years.
“(3) Limitation on assistance for bcap contract acreage—As a condition of the receipt of an annual payment under subsection (c), a producer receiving a payment under this subsection for collection, harvest, storage, or transportation of an eligible crop produced on BCAP acreage shall agree to a reduction in the annual payment.
“(e) Report—Not later than 4 years after the date of enactment of the Agriculture Reform, Food, and Jobs Act of 2013, 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 on the dissemination by the Secretary of the best practice data and information gathered from participants receiving assistance under this section.
“(f) Funding
“(1) In general—Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $38,600,000 for each of fiscal years 2014 through 2018.
“(2) Collection, harvest, storage, and transportation payments—Of the amount made available under paragraph (1) for each fiscal year, the Secretary shall use not less than 10 percent, nor more than 50 percent, of the amount to make collection, harvest, transportation, and storage payments under subsection (d)(2).”
“(1) Biomass consumer cooperative—The term biomass consumer cooperative means a consumer membership organization the purpose of which is to provide members with services or discounts relating to the purchase of biomass heating products or biomass heating systems.”
“(C) grants of up to $50,000 to biomass consumer cooperatives for the purpose of establishing or expanding biomass consumer cooperatives that will provide consumers with services or discounts relating to—
“(i) the purchase of biomass heating systems;
“(ii) biomass heating products, including wood chips, wood pellets, and advanced biofuels; or
“(iii) the delivery and storage of biomass of heating products.”
“(1) State and local governments—A State or local government that receives a grant under subparagraph (A) or (B) of subsection (b)(1)”
“(2) Biomass consumer cooperatives—A biomass consumer cooperative that receives a grant under subsection (b)(1)(C) shall contribute an amount of non-Federal funds (which may include State, local, and nonprofit funds and membership dues) toward the establishment or expansion of a biomass consumer cooperative that is at least equal to 50 percent of the amount of Federal funds received for that purpose.”