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110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-302

======================================================================



 
           BIOFUELS RESEARCH AND DEVELOPMENT ENHANCEMENT ACT

                                _______
                                

 August 3, 2007.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Gordon of Tennessee, from the Committee on Science and Technology, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2773]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Science and Technology, to whom was referred 
the bill (H.R. 2773) to enhance research, development, 
demonstration, and commercial application of biofuels related 
technologies, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
   I. Amendment.......................................................2
  II. Purpose of the Bill.............................................5
 III. Background and Need for the Legislation.........................5
  IV. Hearing Summary.................................................6
   V. Committee Actions...............................................7
  VI. Summary of Major Provisions of the Bill, as Reported............9
 VII. Section-by-Section Analysis (by Title and Section), as Reported.9
VIII. Committee Views................................................11
  IX. Cost Estimate..................................................16
   X. Congressional Budget Office Cost Estimate......................16
  XI. Compliance With Public Law 104-4...............................18
 XII. Committee Oversight Findings and Recommendations...............18
XIII. Statement on General Performance Goals and Objectives..........18
 XIV. Constitutional Authority Statement.............................19
  XV. Federal Advisory Committee Statement...........................19
 XVI. Congressional Accountability Act...............................19
XVII. Earmark Identification.........................................19
XVIII.Statement on Preemption of State, Local, or Tribal Law.........19

 XIX. Changes in Existing Law Made by the Bill, as Reported..........19
  XX. Committee Recommendations......................................21
 XXI. Additional Views...............................................22
XXII. Proceedings of the Subcommittee Markup.........................23
XXIII.Proceedings of the Full Committee Markup.......................56


                              I. Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Biofuels Research and Development 
Enhancement Act''.

SEC. 2. BIOFUELS AND BIOREFINERY INFORMATION CENTER.

  (a) In General.--The Secretary of Energy (in this Act referred to as 
the ``Secretary''), in cooperation with the Secretary of Agriculture, 
shall establish a technology transfer center to make available 
information on research, development, and commercial application of 
technologies related to biofuels and biorefineries, including--
          (1) biochemical and thermochemical conversion technologies 
        capable of making fuels from lignocellulosic feedstocks;
          (2) biotechnology processes capable of making biofuels with 
        an emphasis on development of biorefinery technologies using 
        enzyme-based processing systems;
          (3) biogas collection and production technologies suitable 
        for vehicular use;
          (4) cost-effective reforming technologies that produce 
        hydrogen fuel from biogas sources;
          (5) biogas production from cellulosic and recycled organic 
        waste sources and advancement of gaseous storage systems and 
        advancement of gaseous storage systems; and
          (6) other advanced processes and technologies that will 
        enable the development of biofuels.
  (b) Administration.--In administering this section, the Secretary 
shall ensure that the center shall--
          (1) continually update information provided by the center;
          (2) make information available on biotechnology processes; 
        and
          (3) make information and assistance provided by the center 
        available for those involved in energy research, development, 
        demonstration, and commercial application.

SEC. 3. BIOFUELS AND ADVANCED BIOFUELS INFRASTRUCTURE.

  Section 932 of the Energy Policy Act of 2005 (42 U.S.C. 16232) is 
amended by adding at the end the following new subsection:
  ``(f) Biofuels and Advanced Biofuels Infrastructure.--The Secretary, 
in consultation with the Secretary of Transportation and the Assistant 
Administrator for Research and Development of the Environmental 
Protection Agency, shall carry out a program of research, development, 
and demonstration as it relates to existing transportation fuel 
distribution infrastructure and new alternative distribution 
infrastructure. The program shall focus on the physical and chemical 
properties of biofuels and efforts to prevent or mitigate against 
adverse impacts of those properties in the following areas:
          ``(1) Corrosion of metal, plastic, rubber, cork, fiberglass, 
        glues, or any other material used in pipes and storage tanks.
          ``(2) Dissolving of storage tank sediments.
          ``(3) Clogging of filters.
          ``(4) Contamination from water or other adulterants or 
        pollutants.
          ``(5) Poor flow properties related to low temperatures.
          ``(6) Oxidative and thermal instability in long-term storage 
        and use.
          ``(7) Microbial contamination.
          ``(8) Problems associated with electrical conductivity.
          ``(9) Such other areas as the Secretary considers 
        appropriate.''.

SEC. 4. BIODIESEL.

  (a) Biodiesel Study.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall submit to Congress a report 
on any research and development challenges inherent in increasing to 
2.5 percent the proportion of diesel fuel sold in the United States 
that is biodiesel (within the meaning of section 211(o) of the Clean 
Air Act).
  (b) Materials for the Establishment of Standards.--The Director of 
the National Institute of Standards and Technology shall make publicly 
available the physical property data and characterization of biodiesel, 
as is defined in subsection (a), in order to encourage the 
establishment of standards that will promote their utilization in the 
transportation and fuel delivery system.

SEC. 5. BIOGAS.

  Not later than 180 days after the date of enactment of this Act, the 
Secretary shall submit to Congress a report on any research and 
development challenges inherent in increasing to 5 percent of the 
transportation fuels sold in the United States fuel with biogas or a 
blend of biogas and natural gas.

SEC. 6. BIORESEARCH CENTERS FOR SYSTEMS BIOLOGY PROGRAM.

  Section 977(a)(1) of the Energy Policy Act of 2005 (42 U.S.C. 
16317(a)(1)) is amended by inserting before the period at the end the 
following: ``, including the establishment of at least 5 bioresearch 
centers of varying sizes, as appropriate, that focus on biofuels, of 
which at least 1 center shall be located in each of the 5 Petroleum 
Administration for Defense Districts, which shall be established for a 
period of 5 years, after which the grantee may reapply for selection on 
a competitive basis''.

SEC. 7. GRANTS FOR BIOFUEL PRODUCTION RESEARCH AND DEVELOPMENT IN 
                    CERTAIN STATES.

  (a) In General.--The Secretary shall provide grants to eligible 
entities for research, development, demonstration, and commercial 
application of biofuel production technologies in States with low rates 
of ethanol production, including low rates of production of cellulosic 
biomass ethanol, as determined by the Secretary.
  (b) Eligibility.--To be eligible to receive a grant under this 
section, an entity shall--
          (1)(A) be an institution of higher education (as defined in 
        section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)) 
        located in a State described in subsection (a); or
          (B) be a consortium including at least 1 such institution of 
        higher education, and industry, State agencies, Indian tribal 
        agencies, National Laboratories, or local government agencies 
        located in the State; and
          (2) have proven experience and capabilities with relevant 
        technologies.
  (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $25,000,000 for 
each of fiscal years 2008 through 2010.

SEC. 8. BIOREFINERY ENERGY EFFICIENCY.

  Section 932 of Energy Policy Act of 2005 (42 U.S.C. 16232), is 
amended by adding at the end the following new subsections:
  ``(g) Biorefinery Energy Efficiency.--The Secretary shall establish a 
program of research, development, demonstration, and commercial 
application for increasing energy efficiency and reducing energy 
consumption in the operation of biorefinery facilities.
  ``(h) Retrofit Technologies for the Development of Ethanol From 
Cellulosic Materials.--The Secretary shall establish a program of 
research, development, demonstration, and commercial application on 
technologies and processes to enable biorefineries that exclusively use 
corn grain or corn starch as a feedstock to produce ethanol to be 
retrofitted to accept a range of biomass, including lignocellulosic 
feedstocks.''.

SEC. 9. STUDY OF INCREASED CONSUMPTION OF ETHANOL-BLENDED GASOLINE WITH 
                    HIGHER LEVELS OF ETHANOL.

  (a) In General.--The Secretary, in cooperation with the Secretary of 
Agriculture, the Administrator of the Environmental Protection Agency, 
and the Secretary of Transportation, shall conduct a study of the 
methods of increasing consumption in the United States of ethanol-
blended gasoline with levels of ethanol that are not less than 10 
percent and not more than 40 percent.
  (b) Study.--The study under subsection (a) shall include--
          (1) a review of production and infrastructure constraints on 
        increasing consumption of ethanol;
          (2) an evaluation of the environmental consequences of the 
        ethanol blends described in subsection (a) on evaporative and 
        exhaust emissions from on-road, off-road, and marine vehicle 
        engines;
          (3) an evaluation of the consequences of the ethanol blends 
        described in subsection (a) on the operation, durability, and 
        performance of on-road, off-road, and marine vehicle engines; 
        and
          (4) an evaluation of the life cycle impact of the use of the 
        ethanol blends described in subsection (a) on carbon dioxide 
        and greenhouse gas emissions.
  (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report describing 
the results of the study conducted under this section.

SEC. 10. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES TO USE E-85 
                    FUEL.

  (a) In General.--The Secretary, in consultation with the Secretary of 
Transportation, shall conduct a study of whether optimizing flexible 
fueled vehicles to operate using E-85 fuel would increase the fuel 
efficiency of flexible fueled vehicles.
  (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Science and 
Technology of the House of Representatives the Committee on Energy and 
Natural Resources of the Senate a report that describes the results of 
the study under this section, including any recommendations of the 
Secretary.

SEC. 11. STUDY OF ENGINE DURABILITY AND PERFORMANCE ASSOCIATED WITH THE 
                    USE OF BIODIESEL.

  (a) In General.--Not later than 30 days after the date of enactment 
of this Act, the Secretary shall initiate a study on the effects of the 
use of biodiesel on the performance and durability of engines and 
engine systems.
  (b) Components.--The study under this section shall include--
          (1) an assessment of whether the use of biodiesel lessens the 
        durability and performance of conventional diesel engines and 
        engine systems; and
          (2) an assessment of the effects referred to in subsection 
        (a) with respect to biodiesel blends at varying concentrations, 
        including the following percentage concentrations of biodiesel:
                  (A) 5 percent biodiesel.
                  (B) 10 percent biodiesel.
                  (C) 20 percent biodiesel.
                  (D) 30 percent biodiesel.
                  (E) 100 percent biodiesel.
  (c) Report.--Not later than 24 months after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Science and 
Technology of the House of Representatives the Committee on Energy and 
Natural Resources of the Senate a report that describes the results of 
the study under this section, including any recommendations of the 
Secretary.

SEC. 12. BIOENERGY RESEARCH AND DEVELOPMENT, AUTHORIZATION OF 
                    APPROPRIATION.

  (a) Section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231) is 
amended--
          (1) in subsection (b)--
                  (A) at the end of paragraph (2) by striking ``and'';
                  (B) at the end of paragraph (3) by striking the 
                period and inserting ``; and''; and
                  (C) by adding at the end the following new paragraph:
          ``(4) $963,000,000 for fiscal year 2010.''; and
          (2) in subsection (c)--
                  (A) in paragraph (2), by striking ``$251,000,000'' 
                and inserting ``$377,000,000'';
                  (B) in paragraph (3), by striking ``$274,000,000'' 
                and inserting ``$398,000,000''; and
                  (C) by adding at the end the following new paragraph:
          ``(4) $419,000,000 for fiscal year 2010, of which 
        $150,000,000 shall be for section 932(d).''.

SEC. 13. ENVIRONMENTAL RESEARCH AND DEVELOPMENT.

  (a) Amendments.--Section 977 of the Energy Policy Act of 2005 (42 
U.S.C. 16317) is amended--
          (1) in subsection (a)(1), by striking ``and computational 
        biology'' and inserting ``computational biology, and 
        environmental science''; and
          (2) in subsection (b)--
                  (A) in paragraph (1), by inserting ``in sustainable 
                production systems that reduce greenhouse gas 
                emissions'' after ``hydrogen'';
                  (B) at the end of paragraph (3), by striking ``and'';
                  (C) by redesignating paragraph (4) as paragraph (5); 
                and
                  (D) by inserting after paragraph (3) the following 
                new paragraph:
          ``(4) develop cellulosic and other feedstocks that are less 
        resource and land intensive and that promote sustainable use of 
        resources, including soil, water, energy, forests, and land, 
        and ensure protection of air, water, and soil quality; and''.
  (b) Tools and Evaluation.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency and the Secretary 
of Agriculture, shall establish a research and development program to--
          (1) improve and develop analytical tools to facilitate the 
        analysis of life-cycle energy and greenhouse gas emissions, 
        including emissions related to direct and indirect land use 
        changes, attributable to all potential biofuel feedstocks and 
        production processes; and
          (2) promote the systematic evaluation of the impact of 
        expanded biofuel production on the environment, including 
        forestlands, and on the food supply for humans and animals.
  (c) Small-Scale Production and Use of Biofuels.--The Secretary, in 
cooperation with the Secretary of Agriculture, shall establish a 
research and development program to facilitate small-scale production, 
local, and on-farm use of biofuels, including the development of small-
scale gasification technologies for production of biofuel from 
cellulosic feedstocks.

SEC. 14. STUDY OF OPTIMIZATION OF BIOGAS USED IN NATURAL GAS VEHICLES.

  (a) In General.--The Secretary of Energy shall conduct a study of 
methods of increasing the fuel efficiency of vehicles using biogas by 
optimizing natural gas vehicle systems that can operate on biogas, 
including the advancement of vehicle fuel systems and the combination 
of hybrid-electric and plug-in hybrid electric drive platforms with 
natural gas vehicle systems using biogas.
  (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary of Energy shall submit to the Committee on 
Energy and Natural Resources of the Senate and the Committee on Science 
and Technology of the House of Representatives a report that describes 
the results of the study, including any recommendations of the 
Secretary.

SEC. 15. STANDARDS FOR BIOFUELS DISPENSERS.

  In the absence of appropriate private sector standards adopted prior 
to the date of enactment of this Act, and consistent with the National 
Technology Transfer and Advancement Act of 1995, the Secretary of 
Energy, in consultation with the Director of the National Institute of 
Standards and Technology, shall develop standards for biofuel dispenser 
systems in order to promote broader biofuels adoption and utilization.

SEC. 16. ALGAL BIOMASS.

  Not later than 90 days after the date of enactment of this Act, the 
Secretary shall submit to the Committee on Science and Technology of 
the House of Representatives and the Committee on Energy and Natural 
Resources of the Senate a report on the progress of the research and 
development that is being conducted on the use of algae as a feedstock 
for the production of biofuels. The report shall identify continuing 
research and development challenges and any regulatory or other 
barriers found by the Secretary that hinder the use of this resource, 
as well as recommendations on how to encourage and further its 
development as a viable transportation fuel.

                              II. Purpose

    The purpose of H.R. 2773 is to enhance research, 
development, demonstration, and commercial application of 
biofuels related technologies and promote a greater degree of 
federal coordination of research and development materials 
related to biofuels.

              III. Background and Need for the Legislation

    High gasoline prices, a desire to reduce our dependence on 
foreign sources of energy, and concerns over climate change 
have greatly increased interest in bio-based fuels as an 
alternative to petroleum for transportation fuel. Over the last 
several years, in part as a result of the Renewable Fuel 
Standard included in the Energy Policy Act of 2005, the use of 
biofuels--most notably corn-based ethanol--has grown 
significantly. Ethanol is most commonly blended with gasoline 
at a level of 10 percent or less. And, this still only 
represents a small portion (less than 5 percent) of the total 
gasoline sold.
    Recent proposals in Congress and by the Administration have 
called for significant increases in the use of biofuels over 
the next ten years. Currently biofuel supply relies almost 
exclusively on corn-based ethanol. Concerns have been raised 
about further expansion of corn-based ethanol to meet the 
targets set for biofuel production. Competition with food and 
feed supply, water and nutrient demand associated with corn 
production, and continued questions about the energy balance of 
corn-based ethanol production all suggest that biomass sources 
for biofuel production must be diversified.
    The majority of this focus to diversify the feedstocks has 
been on cellulosic materials including grasses, wood, and waste 
materials. However, current technologies for the development of 
fuel from these sources continue to be expensive and not cost-
competitive with corn-based ethanol. If we are going to move 
toward broader use of biofuels, technology will be necessary to 
create reasonably priced fuels from cellulosic materials.
    The Agricultural Risk Protection Act of 2000 (Title III), 
the Farm Security and Rural Investment Act of 2002, and the 
Energy Policy Act of 2005 created bioenergy research and 
development programs to focus federal research funding on the 
development of biofuels derived from cellulosic materials. This 
research is ongoing and operates under a Memorandum of 
Understanding between the Department of Energy and the 
Department of Agriculture.
    Though these efforts present a reasonable starting point, 
an enhanced federal commitment will be needed. To realize this 
needed improvement in technology, we must increase our 
investment in research and development, focus our research on 
the most promising technologies, and ensure that the latest 
research information is readily available for those looking to 
either expand their biofuels production or embark upon the 
development of new facilities.  

                          IV. Hearing Summary

    The Subcommittee on Energy and Environment held a hearing 
on June 14, 2007 entitled ``A path toward the broader use of 
Biofuels: ``Enhancing the federal commitment to research and 
development to meet the growing need.'' The purpose of this 
hearing was to examine the federal efforts on research, 
development and demonstration of technologies related to the 
production of biofuels, the development of biorefineries and 
demonstrations of those technologies and to identify gaps in 
current federal research and development programs.
    The hearing further focused on legislative proposals to 
restructure and enhance the biofuels research and development 
programs of the Department of Energy and the Department of 
Agriculture under consideration in the House and Senate, 
including an evaluation of a ``Discussion Draft'' version of 
H.R. 2773. At the hearing, the witnesses appearing before the 
Subcommittee were Mr. Robert Dinneen, President, Renewable 
Fuels Association. RFA is a national trade association for the 
domestic ethanol industry. RFA's membership includes a broad 
cross-section of businesses, individuals and organizations 
dedicated to the expansion of the U.S. fuel ethanol industry. 
Dr. Thomas Foust, Biofuels Research Director, National 
Renewable Energy Laboratory. The National Renewable Energy 
Laboratory (NREL) is the Nation's primary laboratory for 
renewable energy research and development. The Biomass Program 
includes NREL R&D focused on biomass characterization, 
thermochemical and biochemical biomass conversion technologies, 
biobased products development, and biomass process engineering 
and analysis. Mr. John Berger, Chairman and CEO, Standard 
Renewable Energy and CEO, BioSelect. Standard Renewable Energy 
is a leader in renewable energy, serving commercial and 
residential customers with clean, renewable energy and energy 
efficiency technologies. BioSelect, a division of Standard 
Renewable Energy, is a developer and operator of biodiesel 
production facilities. Mr. David Waskow, Policy Analyst, 
Friends of the Earth, U.S. Friends of the Earth, U.S. is part 
of a network of international groups in 70 countries. David 
Waskow is an international policy analyst and works on the 
environment, trade policy, and corporate accountability. Mr. 
Michael J. McAdams, Executive Director, Advanced Biofuels 
Coalition. The Advanced Biofuels Coalition is a collection of 
companies who utilize advanced technologies or provide 
renewable-based feedstocks to produce renewable fuels--both 
biodiesel and gasoline compatible components.
    Members of the Subcommittee asked the panelists questions 
related to:
     The need for a dedicated infrastructure to 
transport large volumes of biofuels and the possible use of the 
petroleum transport and storage infrastructure for transporting 
biofuels;
     The need for sustainable management of forest and 
agricultural lands to ensure long term health of these lands 
when they are being used as a feedstock for biofuels;
     Issues related to food supply and food and feed 
prices as it relates to greater production of ethanol;
     The need for additional bioresearch centers, the 
possible focus of these centers, and need for regional 
distribution of these centers;
     Whether the focus on efficient production of 
biofuels needs to be feedstock specific; and
     On the promise of algal biomass as a feedstock for 
the development of biofuels, what challenges are still present, 
and what can Congress do to support this research.

                          V. Committee Actions

    H.R. 2773 was introduced by Subcommittee Chairman Lampson 
on June 19, 2007, and referred to the House Committee on 
Science and Technology, Subcommittee on Energy and Environment.
    The Subcommittee on Energy and Environment met to consider 
H.R. 2773 on June 21, 2007. The Subcommittee considered the 
following amendments:
    (1) A Manager's Amendment offered by Chairman Lampson, 
makes several technical changes; clarifies that the Technology 
Transfer Center, not the Secretary of Energy, will carry out 
the tasks of the center; recognizing that the Department of 
Transportation regulates pipelines, the amendment ensures that 
the Secretary of Energy will consult with the Department of 
Transportation as it engages in the infrastructure research and 
development program created in section 3 of the bill; removes a 
few unnecessary focus areas for the infrastructure research 
program created in section 3 and provides the Secretary with 
the ability to look at other areas deemed appropriate; inserts 
a more appropriate definition of biodiesel for the purpose of 
the study in section 4; and reduces the number of Bioresearch 
Centers authorized in the bill from 11 to 5. Agreed to by voice 
vote.
    (2) An amendment offered by Ms. Woolsey and Mr. Bartlett, 
amends section 977 of the Energy Policy Act of 2005 to add 
environmental science to the list of disciplines that the 
Bioenergy Centers created in the Act may pursue; indicates the 
goal of producing biofuels should be pursued in a manner that 
ensures the cropping systems will be sustainable and the 
feedstock production and processing will result in lower 
greenhouse gas emissions; adds a new goal for the research 
conducted by the Centers to develop cellulosic feedstocks that 
efficiently utilize resources and promote environmental 
sustainability; adds a research and development program in 
consultation with EPA to develop tools to do life-cycle 
analysis of biofuel feedstocks and to evaluate the potential 
environmental impacts associated with increased feedstock 
production; and adds a research and development program in 
consultation with the Secretary of Agriculture for small-scale 
production and processing of biofuels for on-farm use. Agreed 
to by voice vote.
    The subcommittee favorably reported the bill H.R. 2773, as 
amended, to the Full Committee. A quorum was noted and the 
motion was agreed to by voice vote.
    The Committee on Science and Technology met in open session 
to consider H.R. 2773 as reported by the Subcommittee on Energy 
and Environment on June 27, 2007. The Committee considered 11 
amendments to H.R. 2773--9 were approved by voice vote and 2 
failed by recorded vote. The amendments were considered in the 
following order:
    (1) A Manager's amendment offered by Mr. Gordon adding 
consultations with additional agencies for two studies in the 
bill and making the national laboratories eligible participants 
in the consortium in Section 7. Agreed to by voice vote.
    (2) An amendment offered by Mr. Hall adding a new section 
creating a research program on blending biofuels with coal-to-
liquids. Defeated on a recorded vote of 12-20.
    (3) An amendment offered by Mr. Hall adding a new section 
with provisions related to biogas. Specifically, the amendment 
incorporated biogas information into the technology transfer 
center in section 2 and directs the Secretary to conduct two 
biogas studies--related to the challenges of increasing 
consumption of biogas and optimization of vehicles using 
biogas. Agreed to by voice vote.
    (4) An amendment offered by Mr. Matheson adding a new 
section allowing for a Federal backstop for development of 
standards for biofuels dispensers. Agreed to by voice vote.
    (5) An En Bloc amendment offered by Ms. Biggert amending 
multiple sections of the bill by requiring bioresearch centers 
to reapply and compete for funding every 5 years; adding 
evaluation of life cycle impacts to the mid-level ethanol blend 
study; expanding the biodiesel engine durability study to 
include engine performance and extending the deadline for the 
study. Agreed to by voice vote.
    (6) An amendment offered by Mr. Bartlett and Ms. Woolsey 
amending section 12 by including food supply and forest lands 
in the environmental research program. Agreed to by voice vote.
    (7) An amendment offered by Mr. Hill amending section 7 by 
creating a program of research, development, demonstration and 
commercial application to retrofit corn ethanol plants to 
accommodate the use of diverse feedstocks including cellulosic 
materials. Agreed to by voice vote.
    (8) An amendment offered by Mr. Bartlett to amend the study 
authorized in section 4 to report on challenges to increasing 
the percentage of biodiesel as a proportion of all diesel fuel. 
The report will now address the challenge of increasing 
biodiesel to 2.5 percent of diesel fuel production. Agreed to 
by voice vote.
    (9) An amendment offered by Mr. Lampson amending section 4 
by adding a new paragraph directing the National Institute of 
Standards and Technology to compile materials to support the 
establishment of biodiesel standards. Agreed to by voice vote.
    (10) An amendment offered by Mr. A. Smith and Mr. Lampson 
adding a new section directing the Secretary to conduct a study 
on algal biomass for biofuels development. Agreed to by voice 
vote.
    (11) An amendment offered by Mr. A. Smith amending section 
6 by eliminating the production threshold from the grant 
program for low ethanol producing states. Defeated on a 
recorded vote of 11-17.
    The committee favorably reported the bill H.R. 2773, as 
amended, to the House of Representatives. A quorum was noted 
and the motion was agreed to by voice vote.

        VI. Summary of Major Provisions of the Bill, as Reported

    H.R. 2773 will expand federal biofuels research efforts and 
authorizes several studies that will provide necessary 
information to the Committee that will allow the Committee to 
make additional research commitments in the future. More 
specifically, the bill attempts to better coordinate and 
compile information from federal biofuels research programs, 
focus some of the biofuels research on infrastructure needs and 
efficiency of biorefineries, study some of the continuing 
challenges facing broader use of biofuels, and increase the 
funding levels for Department of Energy biofuels research.

                    VII. Section-by-Section Analysis

    Section 1. Short Title
    Section 2. Biofuels and Biorefinery Information Center--
Directs the Secretary of Energy, in cooperation with the 
Secretary of Agriculture, to establish a technology transfer 
center to serve as a clearinghouse of information related to 
the research, development, and commercial application of 
technologies related to biofuels, biogas and biorefineries.
    Section 3. Biofuels and Advanced Biofuels Infrastructure--
This section directs the Secretary, in consultation with the 
Secretary of Transportation and the Assistant Administrator for 
Research and Development of the Environmental Protection 
Agency, to establish a program of research, development, and 
demonstration for modifications and treatments to existing 
infrastructure and of research into the development of new 
infrastructure for transporting biofuels to address problems 
with transporting and storing biofuels in the existing 
petroleum fuel infrastructure.
    Section 4. Biodiesel--This section addresses two matters 
related to biodiesel.
    Subsection (a) directs the Secretary to submit a report to 
Congress on any research and development challenges inherent in 
increasing the proportion of biodiesel sold to 2.5 percent of 
total diesel fuel sales in the U.S.
    Subsection (b) provides for the National Institute of 
Standards and Technology to make available the physical 
property data and the characterization of biodiesel to support 
the development of consensus biodiesel standards.
    Section 5. Biogas--The Secretary is directed to submit a 
report to Congress on the research and development challenges 
inherent in increasing to 5 percent the amount of 
transportation fuels that is biogas or a biogas and natural gas 
blend used as a transportation fuel.
    Section 6. Bioresearch Centers for Systems Biology 
Program--The Systems Biology program created in section 977 of 
the Energy Policy Act of 2005 is amended to establish at least 
five regionally located centers with a research focus on 
biofuels. The centers are to be located in each of the five 
Petroleum Administration Defense Districts (PADDs).
    Section 7. Grants for Biofuels Production Research and 
Development in Certain States--The Secretary is directed to 
establish a research and development grant program in states 
with low rates of ethanol production, as determined by the 
Secretary, to support research on feedstock and biofuel 
production technologies.
    Section 8. Biorefinery Energy Efficiency--Adds two new 
subsections to section 932 of the Energy Policy Act of 2005 
(Bioenergy Program).
    Section 8(a) directs the Secretary to establish a program 
of research, development, demonstration and commercial 
application of technologies to reduce the energy consumption of 
biorefinery facilities.
    Section 8(b) directs the Secretary to establish a program 
of research, development, demonstration and commercial 
application of technologies that would enable facilities that 
currently produce ethanol exclusively from corn and corn 
starch, to accept other feedstocks.
    Section 9. Study of Increased Consumption of Ethanol-
Blended Gasoline with Higher Levels--Directs the Secretary of 
Energy to conduct a study, in cooperation with the Secretaries 
of Agriculture and Transportation and the Administrator of EPA, 
on the feasibility of increasing the consumption of ethanol-
blended gasoline at blend levels between 10 and 40 percent.
    Section 10. Study of Optimization of Flexible Fueled 
Vehicles to use E-85--Directs the Secretary of Energy, in 
consultation with the Secretary of Transportation, to conduct a 
study to determine if optimizing flexible fuel vehicles to 
operate using E-85 would increase vehicle fuel efficiency while 
using E-85.
    Section 11. Study of Engine Durability and Performance 
Associated with the Use of Biodiesel--Directs the Secretary of 
Energy, to conduct a study on the effects of the use of 
biodiesel, at varying blend levels, on engine and engine system 
durability and performance and to issue a report to Congress on 
the findings within two years of enactment.
    Section 12. Authorization for Appropriation--This section 
makes the following changes to authorizations in the Energy 
Policy Act of 2005:
     Extends the authorization for section 931 
(Renewable Energy) of the Energy Policy Act by one year and 
funds the programs at $963 million in FY 2010.
     Increases the authorization levels for section 932 
(Bioenergy Programs) of the Energy Policy Act of 2005 to $377 
million in FY 2008, $398 million in FY 2009, and $419 million 
in FY 2010.
    Section 13. Environmental Research and Development--This 
section amends section 977 of the Energy Policy Act of 2005 to 
add environmental science to the list of disciplines that the 
Bioenergy Centers created in the Act may pursue. It modifies 
the goal of developing technologies and methods to produce 
biofuels to specify this production should be pursued in a 
manner that ensures the cropping systems will be sustainable 
and the feedstock production and processing will result in 
lower greenhouse gas emissions. It also adds a goal of 
producing biofuels in a manner that promotes the sustainable 
use of resources and the protection of air, water resources and 
soil quality.
    This section also directs the Secretary to establish a 
research and development program in consultation with the 
Administrator of EPA and the Secretary of Agriculture to 
develop tools to do life-cycle analysis of biofuel feedstocks 
and to evaluate the potential environmental impacts associated 
with increased feedstock production and to establish a research 
and development program in consultation with the Secretary of 
Agriculture for small-scale production and processing of 
biofuels for on-farm use.
    Section 14. Study of Optimization of Biogas Used in Natural 
Gas Vehicles--Directs the Secretary of Energy to conduct a 
study of methods available to optimize natural gas-fueled 
vehicles to operate using biogas such that the efficiency of 
the vehicles while using biogas would be increased. This is 
also to include an analysis of hybrid technologies using biogas 
as primary fuel. The Secretary will report to Congress on the 
results of the study within six months of enactment.
    Section 15. Standards for Biofuels Dispensers--The 
Secretary, in consultation with the Director of the National 
Institute of Standards and Technology, shall develop standards 
for biofuels retail dispensers if an appropriate private sector 
standard is not adopted prior to the date of enactment.
    Section 16. Algal Biomass--Directs the Secretary to conduct 
a study on the progress of the Department's research and 
development related to the use of algae as a feedstock for 
development of biofuels. The report is to identify any research 
and development challenges, as well as any regulatory barriers, 
that hinder the use of algae for biofuels development.

                         VIII. Committee Views

    For sometime now, it has become clear to the Committee that 
our nation's energy needs can no longer be fully met with 
fossil fuels. Our reliance on fossil fuels, and more 
specifically foreign sources of energy, jeopardizes our 
economy, foreign policy, national security, and most 
importantly our environment. The scale and complexity of 
addressing these challenges cannot be overstated.
    Though fossil fuels still remain an important part of any 
viable, balanced energy strategy, we must enhance our efforts 
to develop a diverse set of alternative energy sources. 
Biofuels represent one of our best opportunities to accomplish 
this.
    We have seen rapid growth in our country's biofuels 
development mostly in the forms of corn-based ethanol and soy-
based biodiesel. However, ethanol still represents only 5 
percent of the total gasoline sold, and biodiesel is an even 
smaller portion of the total diesel market.
    The Committee recognizes we would not be where we are today 
without the efforts of those who pioneered the development of 
our corn-based ethanol industry. However, concerns have been 
raised about further expansion of corn-based ethanol, its 
impact on food and feed supply and costs, and on the 
sustainability of expanded corn production for ethanol. It 
would require nearly half of the current corn crop produced 
annually to meet the biofuels targets that have been proposed. 
The Committee recognizes further expansion of the current corn-
based ethanol production system will have negative consequences 
for commodity prices and the environment. Therefore, a greater 
effort must be made to diversify the biomass sources for 
biofuel production.
    The Committee believes the future of biofuels lies in 
diversifying the feedstocks to include cellulosic materials 
such as grasses, wood, and waste materials. Current 
technologies for the development of cellulosic biofuels 
continue to be expensive and not yet cost-competitive with 
corn-based ethanol. Research should be focused on improving 
cellulosic ethanol production methods to increase the 
processing efficiencies and lower production costs.
    The Committee is very encouraged by the promise of 
diversified feedstocks to be used for the development of 
biofuels. However, the Committee believes this development 
needs to occur in an environmentally sensitive way that ensures 
the cropping systems will be sustainable and the feedstock 
production and processing will result in lower greenhouse gas 
emissions, and in fuel that will improve air quality. 
Therefore, a portion of the biofuel research and development 
program should focus on the environmental aspects of biofuel 
production, processing, and use.
    The Committee believes the establishment of a Biofuels and 
Biorefinery Information Center will facilitate the 
dissemination of research findings and the status of technology 
development for biofuel production and processing. The Center 
will provide a convenient entry point for all interested 
parties seeking the latest information on research, 
development, and demonstration projects conducted on biofuels 
and help to support the growth and deployment of biofuel 
production and processing methods.
    The Committee is aware of the significant barrier to more 
widespread distribution of biofuels presented by the lack of 
dedicated pipeline infrastructure to transport biofuels. The 
current problems associated with using the existing petroleum 
infrastructure for distributing and dispensing fuel must be 
addressed if we are to achieve goals of wider distribution of 
biofuel. The Committee also believes consideration must be 
given to the development of new biofuel distribution 
infrastructure. Rural areas of the U.S. are presumed to be the 
future source of most biofuel feedstocks. However, the areas of 
greatest fuel use are in urban and suburban areas. Fuel must be 
able to reach areas with high demand in an efficient, cost-
effective manner.
    The Committee intends the research program authorized in 
Section 3 of the legislation to examine all issues associated 
with the development of an efficient distribution system for 
biofuels. This would include consideration of the 
transportation and distribution of feedstocks to biofuel 
refineries as well as the transportation and distribution of 
biofuel or biodiesel from the processing plant to the customer.
    The Committee believes we must address barriers to 
realizing broader use of biofuels. Standardization of biofuels 
to ensure fuel fungibility remains an important goal to 
facilitate the widespread use of biofuels. The Committee 
believes that setting standards for biofuels with an 
understanding of the potential impacts of these fuels on 
engines, engine systems, and engine performance will facilitate 
the broader use of biofuels in commerce and provide more 
consumer confidence in these new products.
    The Committee believes there is also a need for uniformity 
in the biodiesel market to ensure consistent performance and 
durability of engines and the ability to move biodiesel through 
storage and transport infrastructure. Though private sector 
standards exist for certain biodiesel, new renewable forms of 
diesel continue to be presented. Providing a set of standards 
for these fuels will ensure consistency in the performance of 
this product.
    The Committee believes another bio-based fuel with 
potential for expanded use as a transportation fuel is biogas--
gas produced through microbial digestion of organic materials 
under anaerobic conditions. Biogas is primarily composed of 
carbon dioxide and methane. There are numerous sources for 
biogas, however they are diverse and due to a variety of 
barriers, they are not being exploited for significant biogas 
production, capture, and distribution. These sources include 
manure, sewage sludge, and municipal solid waste. The Committee 
recognizes that natural gas fueled vehicles have been 
introduced for sometime and are in regular use in some fleets. 
However, these vehicles comprise a small percentage of the 
vehicle fleet and natural gas is not widely available at all 
fueling stations. Section 5 of the legislation directs the 
Secretary to provide Congress with a report on the barriers to 
achieving broader use of natural gas, including biogas as a 
transportation fuel.
    The Energy Policy Act of 2005 authorized the Department to 
establish Bioresearch Centers in microbial and plant systems 
biology, protein science and computational biology to support 
DOE missions. Committee believes the Department should 
establish five centers distributed within each of the five 
Petroleum Administration Defense Districts (PADDs). The centers 
are to include those already established by the Secretary and 
are not to be in addition to already established centers. With 
centers already being established in three of the five 
Petroleum Administration Defense Districts (PADDs), the 
Committee expects that the next two centers to be established 
would be in the PADDs without an established center.
    Biofuel production is currently concentrated in States with 
significant corn production. The Committee believes we need to 
diversify biofuel production in terms of both the feedstock 
used to produce fuel and the regions of our Nation where fuel 
is produced. While the grain-based ethanol market has grown 
significantly, the future of biofuels lies in the ability to 
make fuels out of a wide variety of region-specific feedstocks. 
The Committee believes that research directed to development of 
feedstock-flexible refining systems could enable a much wider, 
more flexible and resilient market to develop that would not 
require long-distance transportation of feedstocks and fuels.
    The Committee believes we should pursue multiple strategies 
to ensure widespread availability of biofuels. The current 
barriers to long-distance transport of ethanol would be 
overcome through the development of more biofuel production 
sites throughout the country. The grain-based ethanol industry 
benefits from a wide range of subsidies, tariff protections, 
and loan guarantees, including a 51 cent tax credit for ethanol 
blended with gasoline. The Committee believes States with the 
potential for biofuel production from other feedstocks should 
be supported through additional Federal support of research and 
development to overcome the processing challenges associated 
with cellulosic feedstocks. Section 7 will provide grants in 
States with low levels of ethanol production to spur the 
development of ethanol from cellulosic materials--the materials 
these States are more likely to utilize for ethanol production.
    The Committee believes we should increase the energy yield 
of biofuels by making ethanol production plants more energy 
efficient. The Committee also recognizes that as new feedstocks 
are developed ethanol production from grain may be reduced. The 
existing infrastructure that is now dedicated to ethanol 
production from grain should be adapted to ensure that we 
continue to utilize this infrastructure for biofuel production. 
The Committee directs the Department to focus research on the 
development of technologies and processes that will permit us 
to retrofit existing ethanol plants to accept feedstocks other 
than grains.
    It is the Committee's expectation that the Department will 
use a representative sample of diesel engines, each of which 
has differing duty cycles, to conduct the study of the 
potential effects of different biodiesel blends on engine and 
engine system durability. This includes diesel engines of 
differing applications including on-road, off-road, marine, 
agricultural related uses, and construction related uses.
    The Committee believes we should pursue the expanded use of 
biofuels in an environmentally responsible manner. Expanded 
biofuel production that results in degraded soil, water, or air 
quality will not provide the long-term fuel supply stability 
the Nation needs. Research support for biofuels must also 
include research to develop production systems for biofuel 
feedstocks that will maintain soil, water, and air quality.
    The Committee also believes we need a better understanding 
of the emissions and energy balance associated with the full 
life-cycle of biofuels from feedstock production to final use. 
If we are to reduce carbon emissions associated with fuel use, 
we need to understand the emissions associated with biofuels as 
well as others. Because biofuels are produced from feedstocks 
that first absorb carbon from the atmosphere, it may be 
possible to produce, process, and utilize biofuels in a manner 
that substantially reduces our current level of greenhouse gas 
emissions. Better life-cycle models that track emissions 
throughout the production, processing and fuel use cycle can 
help in the design of systems to minimize carbon emissions. The 
Committee intends that DOE support improvements to the current 
modeling capabilities in this area as well as supporting 
research to develop new modeling and analytical techniques.
    The Committee is also concerned about the increases in food 
and animal feed prices related to the expansion of ethanol 
production from corn. The Committee recognizes the competition 
for productive land for biofuel and food production has 
implications for food production and therefore, food and animal 
feed prices.
    The Committee does not intend the goals included in Section 
13 of the bill to be a barrier to research and development of 
any biofuel or to prejudge the ultimate outcome of research on 
any fuel regarding its sustainability and greenhouse gas 
emissions. The Committee believes the ultimate goal we should 
be striving to achieve through the research programs funded on 
biofuels is to develop them in a manner that expands our fuel 
supply in a manner that is environmentally sound. At the outset 
of the research, the fuel or system for producing may not have 
achieved this ultimate goal, but certainly should be focused in 
that direction. The Committee believes that all fuels need 
research and development support to achieve these important 
goals, however if it is discovered that a fuel cannot be 
produced in a manner that provides a net energy yield, reduced 
greenhouse gas emissions or through production systems that 
degrade air, soil, and water resources, the Committee feels it 
should be abandoned.
    The Committee is concerned that the absence of private 
sector-developed standards for biofuels dispensers, 
specifically E-85, has been an impediment to the broader use of 
biofuels. Though private sector standard-setting organizations 
have been examining this issue for some time, the Committee is 
concerned with the lack of progress toward establishment of 
such standards. As the production of biofuels increases, the 
retail outlets for distributing these fuels to consumers must 
also be available. The absence of standards for equipment to 
dispense these fuels should not be an impediment to their 
broader use. If no standards are in place at the time this 
legislation is enacted, it is the Committee's intention to have 
the Director of NIST and the Secretary of Energy utilize the 
authorities in the National Technology Transfer Act to 
establish standards for biofuel dispensing equipment.
    The Committee believes there is potential for utilizing 
algal biomass as a feedstock for the production of biofuels. 
Algae are extremely productive and may be grown in areas that 
are unsuitable for growing land-based biofuel feedstocks. DOE's 
National Renewable Energy Laboratory has conducted research in 
this area in the past. With renewed interest in biofuel 
production and new technologies available to lower the costs 
associated with algal production, the Committee believes 
additional research in this area is warranted.
    In summary, the Committee believes we must increase our 
investment in research and development on biofuels, focus on 
overcoming the barriers to broader biofuel production and use, 
ensure the expansion of biofuel production occurs in an 
environmentally responsible manner, and that the latest 
research information is readily available for those looking to 
expand their biofuels production or embark upon the development 
of new facilities.
    H.R. 2773 will help to enhance the on-going Federal efforts 
to support biofuels research and development, as well provide 
necessary information back to Congress that will allow us to 
make additional research commitments in the future.

                           IX. Cost Estimate

    A cost estimate and comparison prepared by the Director of 
the Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974 has been timely submitted to 
the Committee on Science and Technology prior to the filing of 
this report and is included in Section X of this report 
pursuant to House Rule XIII, clause 3(c)(3).
    H.R. 2773 does not contain new budget authority, credit 
authority, or changes in revenues or tax expenditures. Assuming 
that the sums authorized under the bill are appropriated, H.R. 
2773 does authorize additional discretionary spending, as 
described in the Congressional Budget Office report on the 
bill, which is contained in Section X of this report.

              X. Congressional Budget Office Cost Estimate

                                                      July 5, 2007.
Hon. Bart Gordon,
Chairman, Committee on Science and Technology,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2773, the Biofuels 
Research and Development Enhancement Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Daniel 
Hoople.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 2773--Biofuels Research and Development Enhancement Act

    Summary: H.R. 2773 would authorize the appropriation of 
$963 million in 2010 for the Department of Energy (DOE) to 
research and develop renewable energy technologies. The bill 
also would authorize $75 million over the 2008-2010 period for 
DOE to make grants to certain institutions of higher education 
to research and develop biofuel production technologies. 
Moreover, H.R. 2773 would authorize additional funding for 
systems biology (the study of the structural and functional 
design of organisms) and bioenergy programs from amounts 
authorized in 2008 and 2009 under current law.
    CBO estimates that implementing H.R. 2773 would cost $16 
million in 2008 and about $1 billion over the 2008-2012 period, 
assuming appropriation of the authorized funds. Enacting H.R. 
2773 would have no effect on direct spending or revenues.
    H.R. 2773 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would benefit state and local governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2773 is shown in the following table. 
The costs of this legislation fall within budget function 250 
(general science, space, and technology).

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Renewable Energy Programs:
    Authorization Level \1\.....       0       0     963       0       0
    Estimated Outlays...........       0       0     530     289     144
Biofuels Production Research
 Grants:
    Authorization Level.........      25      25      25       0       0
    Estimated Outlays...........      14      21      25      11       4
Bioenergy Studies:
    Estimated Authorization            2       1       0       0       0
     Level......................
    Estimated Outlays...........       2       1       0       0       0
    Total Changes:
        Estimated Authorization       27      26     988       0       0
         Level..................
        Estimated Outlays.......      16      22     555     300     148
------------------------------------------------------------------------
\1\ Public Law 109-58 authorized the appropriation of $743 million in
  2008 and $852 million in 2009 for renewable energy programs.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted in fiscal year 2007 and that the amounts 
authorized and estimated to be necessary will be appropriated 
for each fiscal year.

Renewable energy programs

    H.R. 2773 would authorize the appropriation of $963 million 
in 2010 for renewable energy research and development. Based on 
the historical spending patterns of DOE research programs, CBO 
estimates that implementing this provision would cost $963 
million over the 2010-2012 period, subject to appropriation of 
the specified amount. In 2005, the Congress authorized the 
appropriation of $743 million in 2008 and $852 million in 2009 
for renewable energy research and development (see Public Law 
109-58).

Biofuels production research grants

    H.R. 2773 would authorize the appropriation of $25 million 
a year over the 2008-2010 period to research and develop 
biofuel production technologies. The bill would direct the 
Secretary to make research grants to institutions of higher 
education located in states with low rates of ethanol 
production. Based on information from DOE, CBO estimates that 
implementing this provision would cost $75 million over the 
2008-2012 period, subject to appropriation of the specified 
amounts.

Bioenergy studies

    H.R. 2773 would require DOE to examine several issues 
involving the production, consumption, and impact of bioenergy 
fuels. The bill would require the Secretary to complete those 
studies within two years of enactment. Based on the costs of 
similar activities, CBO estimates that producing the studies 
outlined in the bill would cost $3 million over the next two 
years, subject to the appropriation of the necessary funds.

Bioenergy research and development

    H.R. 2773 would increase the authorized funding level for 
bioenergy research and development programs of DOE by $126 
million in 2008 and $147 million in 2009. (The current law 
authorization levels for those programs are $251 million and 
$274 million, respectively.) Additional amounts authorized by 
the bill would be used to examine the existing fuel 
distribution infrastructure as well as ways to improve the 
energy efficiency of biorefinery facilities and enabling them 
to accept a wider range of biomass inputs. Funding also would 
be used to establish an information center for biofuels and 
biorefineries research.
    The additional amounts authorized by the bill would be 
allocated from $1.6 billion previously authorized to be 
appropriated for all DOE renewable energy programs in 2008 and 
2009 (see Public Law 109-58). Because the additional amounts 
specified in the bill for bioenergy programs would effectively 
set aside part of the existing authorization levels for 
renewable energy programs, CBO estimates that implementing this 
provision would have no net additional cost over the five-year 
period.

Systems biology research and development

    H.R. 2773 would expand DOE's systems biology research and 
development programs to include environmental science, and 
would establish at least five centers for biofuels research. In 
2005, the Congress authorized the appropriation of $4.6 billion 
for 2008 and $5.2 billion for 2009 for the DOE Office of 
Science. Those authorizations included such sums as necessary 
for systems biology research and development (see Public Law 
109-58). Because H.R. 2773 would not amend the overall 
authorization level for the Office of Science, it would 
effectively reallocate the existing authorization levels for 
DOE science programs, and we estimate that implementing this 
provision would have no net cost over the five-year period.
    Intergovernmental and private-sector impact: H.R. 2773 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would create a grant program 
benefitting institutions of higher education. Any costs that 
state, local, or tribal governments might incur, including 
matching funds, would be incurred voluntarily.
    Estimate prepared by: Federal Costs: Daniel Hoople; Impact 
on State, Local, and Tribal Governments: Neil Hood; Impact on 
the Private Sector: Craig Cammarata.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                  XI. Compliance With Public Law 104-4

    H.R. 2773 contains no unfunded mandates.

         XII. Committee Oversight Findings and Recommendations

    The oversight findings and recommendations of the Committee 
on Science and Technology are reflected in the body of this 
report.

      XIII. Statement on General Performance Goals and Objectives

    Pursuant to clause (3)(c) of House rule XIII, the goal of 
H.R. 2773 is to advance biofuels related technologies by 
establishing a biofuels and biorefinery information center, 
biofuels and advanced biofuels infrastructure, biodiesel, a 
bioresearch centers for systems biology program, grants for 
biofuel production research and development in certain states, 
biorefinery energy efficiency, and conducting biofuels studies, 
including a study of increased consumption of ethanol-blended 
gasoline with higher levels of ethanol, a study of optimization 
of flexible fueled vehicles to use e-85 fuel, and a study of 
engine durability associated with the use of biodiesel.

                XIV. Constitutional Authority Statement

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 2773.

                XV. Federal Advisory Committee Statement

    H.R. 2773 does not establish nor authorize the 
establishment of any advisory committee.

                 XVI. Congressional Accountability Act

    The Committee finds that H.R. 2773 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
the Congressional Accountability Act (Public Law 104-1).

                      XVII. Earmark Identification

    H.R. 2773 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e), or 9(f) of rule XXI.

     XVIII. Statement on Preemption of State, Local, or Tribal Law

    This bill is not intended to preempt any state, local, or 
tribal law.

       XIX. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

ENERGY POLICY ACT OF 2005

           *       *       *       *       *       *       *



TITLE IX--RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *


                      Subtitle C--Renewable Energy

SEC. 931. RENEWABLE ENERGY.

  (a) * * *
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary to carry out renewable energy 
research, development, demonstration, and commercial 
application activities, including activities authorized under 
this subtitle--
          (1) * * *
          (2) $743,000,000 for fiscal year 2008; [and]
          (3) $852,000,000 for fiscal year 2009[.]; and
          (4) $963,000,000 for fiscal year 2010.
  (c) Bioenergy.--From the amounts authorized under subsection 
(b), there are authorized to be appropriated to carry out 
section 932--
          (1) * * *
          (2) [$251,000,000] $377,000,000 for fiscal year 2008, 
        of which $125,000,000 shall be for section 932(d); and
          (3) [$274,000,000] $398,000,000 for fiscal year 2009, 
        of which $150,000,000 shall be for section 932(d).
          (4) $419,000,000 for fiscal year 2010, of which 
        $150,000,000 shall be for section 932(d).

           *       *       *       *       *       *       *


SEC. 932. BIOENERGY PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Biofuels and Advanced Biofuels Infrastructure.--The 
Secretary, in consultation with the Secretary of Transportation 
and the Assistant Administrator for Research and Development of 
the Environmental Protection Agency, shall carry out a program 
of research, development, and demonstration as it relates to 
existing transportation fuel distribution infrastructure and 
new alternative distribution infrastructure. The program shall 
focus on the physical and chemical properties of biofuels and 
efforts to prevent or mitigate against adverse impacts of those 
properties in the following areas:
          (1) Corrosion of metal, plastic, rubber, cork, 
        fiberglass, glues, or any other material used in pipes 
        and storage tanks.
          (2) Dissolving of storage tank sediments.
          (3) Clogging of filters.
          (4) Contamination from water or other adulterants or 
        pollutants.
          (5) Poor flow properties related to low temperatures.
          (6) Oxidative and thermal instability in long-term 
        storage and use.
          (7) Microbial contamination.
          (8) Problems associated with electrical conductivity.
          (9) Such other areas as the Secretary considers 
        appropriate.
  (g) Biorefinery Energy Efficiency.--The Secretary shall 
establish a program of research, development, demonstration, 
and commercial application for increasing energy efficiency and 
reducing energy consumption in the operation of biorefinery 
facilities.
  (h) Retrofit Technologies for the Development of Ethanol from 
Cellulosic Materials.--The Secretary shall establish a program 
of research, development, demonstration, and commercial 
application on technologies and processes to enable 
biorefineries that exclusively use corn grain or corn starch as 
a feedstock to produce ethanol to be retrofitted to accept a 
range of biomass, including lignocellulosic feedstocks.

           *       *       *       *       *       *       *


Subtitle G--Science

           *       *       *       *       *       *       *


SEC. 977. SYSTEMS BIOLOGY PROGRAM.

  (a) Program.--
          (1) Establishment.--The Secretary shall establish a 
        research, development, and demonstration program in 
        microbial and plant systems biology, protein science, 
        [and computational biology] computational biology, and 
        environmental science to support the energy, national 
        security, and environmental missions of the Department, 
        including the establishment of at least 5 bioresearch 
        centers of varying sizes, as appropriate, that focus on 
        biofuels, of which at least 1 center shall be located 
        in each of the 5 Petroleum Administration for Defense 
        Districts, which shall be established for a period of 5 
        years, after which the grantee may reapply for 
        selection on a competitive basis.

           *       *       *       *       *       *       *

  (b) Goals.--The program shall have the goal of developing 
technologies and methods based on the biological functions of 
genomes, microbes, and plants that--
          (1) can facilitate the production of fuels, including 
        hydrogen in sustainable production systems that reduce 
        greenhouse gas emissions;

           *       *       *       *       *       *       *

          (3) detoxify soils and water, including at facilities 
        of the Department, contaminated with heavy metals and 
        radiological materials; [and]
          (4) develop cellulosic and other feedstocks that are 
        less resource and land intensive and that promote 
        sustainable use of resources, including soil, water, 
        energy, forests, and land, and ensure protection of 
        air, water, and soil quality; and
          [(4)] (5) address other Department missions as 
        identified by the Secretary.

           *       *       *       *       *       *       *


                     XX. Committee Recommendations

    On June 27, 2007, the Committee on Science and Technology 
favorably reported H.R. 2773, as amended, by a voice vote and 
recommended its enactment.

                         XXI. Additional Views

                              ----------                              


      ADDITIONAL VIEWS OF REPRESENTATIVES RALPH M. HALL, F. JAMES 
  SENSENBRENNER, Jr., MICHAEL T. McCAUL, PHIL GINGREY, TODD AKIN, TOM 
         FEENEY, BOB INGLIS, RANDY NEUGEBAUER AND ADRIAN SMITH

    At the Committee markup of H.R. 2773, Representative Hall 
(TX) offered an amendment to direct the Secretary to carry out 
a program of research, development and demonstration as it 
relates to the blending of transportation fuels derived from 
coal-to-liquids with biofuels. This amendment was supported by 
many of my minority colleagues, but unfortunately was voted 
down by the majority.
    As we continue to work towards energy independence and 
security in our transportation fuels, we need to look at all 
our domestic resources both renewable and alternative. On the 
one hand we have biofuels which are an exciting option using 
renewable feedstocks, and on the other we have the option of 
turning coal into a liquid transportation fuel. While biofuels 
have the potential to displace a portion of our current oil 
use, we simply don't have the supply to displace all of it. 
Coal-to-liquids (CTL) also has the potential to displace oil 
use, but as we develop clean coal technologies for all sectors, 
we won't have an unlimited supply for this now-abundant 
domestic resource.
    This amendment would have allowed us to conduct R&D into 
the blending of the two types of fuel in order that by 
combining them we can increase and prolong our supply of 
domestic fuels. By combining biofuels with CTL, we use less of 
our country's--and the world's--food supply, and less of our 
coal reserves that can also be used for electricity generation 
and other applications.
    I believe we owe it to the American people to explore all 
avenues of energy independence and I urge my colleagues to 
consider exploration of coal-to-liquids technology as a viable 
alternative source of fuel.

                                   Ralph M. Hall,
                                   W. Todd Akin,
                                   Michael T. McCaul,
                                   Randy Neugebauer,
                                   Tom Feeney,
                                   F. James Sensenbrenner, Jr.
                                   Phil Gingrey,
                                   Bob Inglis,
                                   Adrian Smith.

              XXII. Proceedings of the Subcommittee Markup



   XXII. PROCEEDINGS OF THE MARKUP BY THE SUBCOMMITTEE ON ENERGY AND 
  ENVIRONMENT ON H.R. 2773, THE BIOFUELS RESEARCH AND DEVELOPMENT ACT

                              ----------                              


                        THURSDAY, JUNE 21, 2007

                  House of Representatives,
            Subcommittee on Energy and Environment,
                       Committee on Science and Technology,
                                                    Washington, DC.

    The Subcommittee met, pursuant to call, at 2:10 p.m., in 
Room 2318 of the Rayburn House Office Building, Hon. Nick 
Lampson [Chairman of the Subcommittee] presiding.
    Chairman Lampson. The Subcommittee on Energy and 
Environment will come to order. Pursuant to notice, the 
Subcommittee on Energy and Environment meets to consider the 
following measures: H.R. 1933, the Department of Energy Carbon 
Capture and Storage Research, Development and Demonstration Act 
of 2007; H.R. 2774, the Solar Energy Research and Advancement 
Act of 2007; and H.R. 2773, the Biofuels Research and 
Development Enhancement Act.
    We will now proceed with the markup beginning with opening 
statements, and I will begin.
    Energy is not something most Americans have thought about 
since the oil embargo of the 1970s. Gas and electricity were 
cheap, environmental issues were not a concern and we did not 
appreciate our increased vulnerability to unstable foreign 
energy supplies. Consequently, energy stayed out of the 
legislative spotlight for many years.
    The Congress passed significant energy legislation in 2005 
in response to rising fuel prices and increased concerns about 
energy security. Since then the growing public awareness and 
acceptance of climate change compels us to take further actions 
on energy. Today this committee is taking yet another step to 
increase federal investment in energy technologies that we know 
will lessen the environmental impact of our energy use, 
decrease our reliance on foreign fuels and still maintain the 
quality of life we enjoy today.
    First on the agenda is H.R. 1933 by Representative Udall 
which sets out the next steps in DOE's carbon mitigation 
strategies. In addition to continuing the Department's research 
on carbon dioxide management, the bill authorizes large-scale 
demonstrations of carbon sequestration technologies through 
partnerships with industrial, academic and government entities. 
An amendment by Mr. Udall will add demonstrations of carbon 
capture technology as well. Because we will continue to use our 
abundant resources of coal to meet our energy needs for the 
foreseeable future, it is critical that we demonstrate an 
integrated system of capture, transportation and storage of 
carbon dioxide at a large scale.
    Next we will take H.R. 2774, the Solar Energy and 
Advancement Act of 2007, introduced by Congresswoman Giffords. 
This bill creates a research and development program on energy 
storage technology for concentrating solar power plants which 
allows for the use of solar energy even when the sun isn't 
shining. It also asks the DOE to conduct studies on how best to 
integrate concentrating solar plants with the grid and ways to 
reduce water usage in these plants. I know the Congresswoman 
also plans to introduce an amendment today that creates a solar 
workforce program, and this will further improve the bill and I 
look forward to hearing what my distinguished colleague has to 
say about it soon.
    And finally, the Subcommittee will consider my bill, H.R. 
2773, the Biofuels Research and Development Enhancement Act. 
This bill attempts to better coordinate and compile information 
from federal biofuels research programs, focus some of the 
biofuels research on infrastructure needs and efficiency of 
biorefinery technologies, study some of the continuing 
challenges facing broader use of biofuels, and increase the 
funding levels for biofuels research.
    For each of these bills, the Subcommittee has held hearings 
examining the various technical barriers and possible pathways 
for these technologies. Many of the amendments that will be 
offered today result from the advice and input provided by the 
witnesses at these hearings. Today the Subcommittee should 
report meaningful legislation that will bring us one step 
closer to their consideration on the House Floor in July. I 
urge support for all of these bills and I look forward to 
working with all of you as we move these bills forward to Full 
Committee next week.
    [The prepared statement of Chairman Lampson follows:]
              Prepared Statement of Chairman Nick Lampson
    Energy is not something most Americans have thought about since the 
oil embargo in the 1970's. Gas and electricity were cheap, 
environmental issues were not a concern, and we did not appreciate our 
increased vulnerability to unstable foreign energy supplies. 
Consequently ``Energy'' stayed out of the legislative spotlight for 
many years.
    The Congress passed significant energy legislation in 2005 in 
response to rising fuel prices and increased concerns about energy 
security. Since then, the growing public awareness and acceptance of 
climate change compels us to take further actions on energy. Today this 
committee is taking yet another step to increase federal investment in 
energy technologies that we know will lessen the environmental impact 
of our energy use, decrease our reliance on foreign fuels, and still 
maintain the quality of life we enjoy today.
    First on the agenda is H.R. 1933 by Rep. Udall, which sets out the 
next steps in DOE's carbon mitigation strategies. In addition to 
continuing the Department's research on carbon dioxide management, the 
bill authorizes large-scale demonstrations of carbon sequestration 
technologies through partnerships with industrial, academic and 
government entities.
    An amendment by Mr. Udall will add demonstrations of carbon capture 
technology as well. Because we will continue to use our abundant 
resources of coal to meet our energy needs for the foreseeable future, 
it is critical that we demonstrate an INTEGRATED system of capture, 
transportation, and storage of carbon dioxide at a large scale.
    Next we will take up H.R. 2774, the Solar Energy Research and 
Advancement Act of 2007, introduced by Congresswoman Giffords. This 
bill creates an R&D program on energy storage technology for 
concentrating solar power plants, which allows for the use of solar 
energy even when the sun isn't shining.
    It also asks the DOE to conduct studies on how to best integrate 
concentrating solar plants with the grid, and ways to reduce water 
usage in these plants. I know the Congresswoman also plans to introduce 
an amendment today that creates a solar workforce program. This will 
further improve the bill, and I look forward to hearing what my 
distinguished colleague has to say about it soon.
    And finally the Subcommittee will consider my bill, H.R. 2773, the 
Biofuels Research and Development Enhancement Act. This bill attempts 
to better coordinate and compile information from federal biofuels 
research programs, focus some of the biofuels research on 
infrastructure needs and efficiency of biorefinery technologies, study 
some of the continuing challenges facing broader use of biofuels, and 
increase the funding levels for biofuels research.
    For each of these bills the Subcommittee has held hearings 
examining the various technical barriers and possible pathways for 
these technologies. Many of the amendments that will be offered today 
result from the advice and input provided by the witnesses at these 
hearings. Today the Subcommittee should report meaningful legislation 
that will bring us one step closer to their consideration on the House 
Floor in July. I urge support for all of these bills and I look forward 
to working with all of you as we move these bills forward to the Full 
Committee next week.

    Chairman Lampson. I now recognize Mr. Inglis, the Ranking 
Member, to present his opening remarks.
    Mr. Inglis. Thank you, Mr. Chairman, and I look forward to 
this markup.
    The bills we mark up today are reflections of the 
commitment we have made to move away from our dependence on 
foreign oil and toward solutions that make both economic and 
environmental sense.
    Renewable energy sources give us the opportunity to end our 
dependence on fossil fuels like oil and coal. In the meantime 
though, we will use a lot of oil and a lot of coal. That is why 
we must work to make sure especially that our coal consumption 
is as emission-free and energy efficient as possible, bringing 
benefits to both industry and to the environment.
    Carbon capture and storage technologies hold significant 
promise for reducing carbon emissions. H.R. 1933, the 
Department of Energy Carbon Capture and Storage Research, 
Development and Demonstration Act, will fund demonstration 
projects that integrate these technologies. The aim is that the 
research and experience gained from these projects will help 
bring down the cost of implementing carbon-reducing 
technologies in the private sector.
    As I mentioned earlier, the ultimate goal is energy sources 
that are renewable and emission-free. H.R. 2774, the Solar 
Research and Advancement Act, and H.R. 2773, the Biofuels 
Research and Development Act, are two steps in that direction. 
Biofuels and solar energy should be sources of energy for us, 
and I am looking forward to promoting research programs that 
will make these alternatives commercially viable.
    Thank you again, Mr. Chairman, and I look forward to 
working with you to advance these pieces of legislation.
    [The prepared statement of Mr. Inglis follows:]
            Prepared Statement of Representative Bob Inglis
    Thank you for holding this markup, Mr. Chairman.
    The bills we're marking up today are reflections of the commitment 
we have made to move away from our dependence on foreign oil, and 
toward solutions that make both economic and environmental sense.
    Renewable energy sources give us the opportunity to end our 
dependence on fossil fuels like oil and coal. In the meantime we'll use 
lots of coal. That's why we must work to make sure that our coal 
consumption is as emission-free and energy efficient as possible, 
bringing benefits to both industry and the environment.
    Carbon capture and storage technologies hold significant promise 
for reducing carbon emissions. H.R. 1933, the Department of Energy 
Carbon Capture and Storage Research, Development, and Demonstration 
Act, will fund demonstration projects that integrate these 
technologies. The aim is that the research and experience gained from 
these projects will help bring down the cost of implementing carbon-
reducing technologies in the private sector.
    As I mentioned earlier, the ultimate goal is energy sources that 
are renewable and emission-free. H.R. 2774, the Solar Research and 
Advancement Act, and H.R. 2773, the Biofuels Research and Development 
Act, are two steps in that direction. Biofuels and solar energy should 
be sources of energy for us, and I'm looking forward to promoting 
research programs that will make these alternatives commercially 
viable.
    Thank you again, Mr. Chairman, and I look forward to working with 
you to advance this legislation.

    Chairman Lampson. Thank you, Mr. Inglis.
    Without objection, Members may place statements in the 
record at this point.
    We will now consider H.R. 2773, the Biofuels Research and 
Development Enhancement Act. I yield myself five minutes to 
describe this bill.
    While I believe that fossil fuels still remain an important 
part of any viable balanced energy strategy, we must enhance 
our efforts to develop a diverse set of alternative energy 
sources. Biofuels represent one of our best opportunities to 
accomplish this. Though we have seen amazing growth in our 
country's biofuels development mostly in the form of corn-based 
ethanol and soy-based biodiesel, ethanol still represents only 
five percent of the total gasoline sold and biodiesel is an 
even smaller portion of the total diesel market. Surely we 
would not be where we are today without the efforts of those 
who pioneered the development of our corn-based ethanol 
industry but the future of biofuels lies in diversifying the 
feedstocks to include cellulosic materials such as grasses, 
wood and waste materials. Current technologies for the 
development of cellulosic biofuels continue to be expensive and 
not yet cost-competitive with corn-based ethanol. Research 
breakthroughs could bring down costs and greatly increase the 
process efficiency sparking another revolution in the biofuels 
industry.
    H.R. 2773, the Biofuels Research and Development 
Enhancement Act, presents another effort toward reducing our 
country's dependence on foreign sources of oil and building a 
domestic industry for clean, renewable fuels. The bill has 
several key components.
    The bill creates two focused research efforts within the 
existing Bioenergy Research Program created in the Energy 
Policy Act of 2005. First, recognizing the inherent problems 
with transporting and storing biofuels in the existing 
petroleum fuels infrastructure, this section establishes a 
program of research, development and demonstration for 
modification and treatments to existing infrastructure and 
research and development of new infrastructure systems for 
biofuels.
    Recognizing the technical barriers to increasing the 
production of biofuels, the bill also establishes a program of 
research, development, demonstration and commercial application 
of technologies to increase the energy efficiency and reduce 
the energy consumption of biorefinery facilities. The bill will 
help to better coordinate and compile the rapidly expanding 
base of information from biofuels research programs by setting 
up a DOE Center to serve as a clearinghouse of information 
related to the research, development and commercial 
applications of technologies related to biofuels and 
biorefinery technologies. The bill will provide research grants 
in states with low rates of biofuels production to work toward 
the development of biofuels assets. And the bill will expand 
the Bioresearch Center Program created in the Energy Policy Act 
of 2005 allowing for the establishment of additional regionally 
dispersed centers.
    The bill also directs the Secretary to conduct several 
studies. These studies relate to increasing the utilization of 
biodiesel, examining the feasibility of mid-level ethanol 
blended gasoline and the challenges of using such blends, the 
engine durability associated with use of differing blend levels 
of biodiesel and the technical challenges to optimizing the 
engines of flex-fuel vehicles to more efficiently use E85.
    Last, the bill makes additional commitments to ongoing 
biofuels research programs by increasing the authorization 
levels for these programs. This increase will also accommodate 
the new focused infrastructure and efficiency research efforts 
I mentioned earlier. This bill will help to enhance the ongoing 
federal efforts to support biofuels research and development as 
well as provide necessary information back to Congress that 
will allow us to make additional research commitments in the 
future. I urge the Members of the Subcommittee to support the 
bill, and I yield back the balance of my time.
    And at this point I recognize Mr. Inglis to present any 
remarks on the bill.
    Mr. Inglis. Thank you, Mr. Chairman. I appreciate the 
Chairman's amendment and--you are on the amendment, right? Or 
no, you----
    Chairman Lampson. Yes, I am.
    Mr. Inglis. You are on the amendment. Or are you on the 
bill itself?
    Chairman Lampson. The bill.
    Mr. Inglis. Okay. Good. Well, I have already spoken to this 
bill and we have got a vote on the House Floor, so I thank you 
for the opportunity to speak, but I will pass.
    Chairman Lampson. You want to save something for later.
    Does anyone else wish to be recognized? I ask unanimous 
consent that the bill is considered as read and open to 
amendment at any point and that Members proceed with the 
amendments in order of the roster. Without objection, it I so 
ordered.
    The first amendment on the roster is a manager's amendment 
offered by the Chair. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 2773 offered by Mr. Lampson of 
Texas.
    Chairman Lampson. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered. And I will now 
postpone recognizing myself for the five minutes to describe 
this bill as we have votes and we will come back, and if you 
see any other Members on the Floor, bring them with you so we 
can finish this thing and complete our markup. We stand in 
recess.
    [Recess.]
    Chairman Lampson. I will call the meeting back to order. 
Thank you for everyone's patience while we went off to vote. We 
had left with the dispensing of the reading of the bill and at 
this point will recognize myself five minutes to explain the 
amendment.
    The manager's amendment I offer will make several simple 
but necessary changes to the bill. Following the testimony of 
the witnesses at our hearing, consultation with the Minority 
staff and a last review of the bill, I offer this amendment to 
resolve a few technical issues, clarify the intent of a few 
provisions and resolve some concerns raised by Members of the 
Subcommittee.
    More specifically, the amendment makes the following 
changes. It clarifies that the Technology Transfer Center, not 
the Secretary of Energy, will carry out the tasks of the 
Center.
    Two, recognizing that the Department of Transportation 
regulates pipelines, the amendment ensures that the Secretary 
of Energy will consult with the Department of Transportation as 
it engages in the infrastructure research and development 
program created in section III of the bill.
    Three, it removes a few unnecessary focus areas for the 
infrastructure research program created in section III and 
provides the Secretary with the ability to look at other areas 
deemed appropriate.
    Four, it inserts a more appropriate definition of biodiesel 
for the purpose of the study in section IV and V, and finally, 
following discussion at the Subcommittee hearing, the amendment 
reduces the number of Bioresearch Centers authorized in the 
bill from 11 to five.
    I appreciate the Minority consultation on these changes. I 
believe they will enhance the bill and I urge adoption of the 
manager's amendment. With that, I yield back the balance of my 
time.
    Is there further discussion on the amendment? Further 
discussion on the amendment? If no----
    Mr. Neugebauer. Mr. Chairman?
    Chairman Lampson. Yes, sir.
    Mr. Neugebauer. Could you just talk a little bit about the 
reduction in the bioresearch centers going from 11 to five? I 
mean, I think that is probably a good idea. How do you see 
those being determined?
    Chairman Lampson. I am sure by the Secretary, but if the 
Counsel would----
    The Counsel. Pretty much the same way as the program 
authorizing the Energy Policy Act of 2005 with the existing two 
with the third one to come. The total of five would be 
determined at the discretion of the Secretary through public 
filing in the Federal Register and applications being submitted 
to the Secretary.
    Mr. Neugebauer. I thank the Chairman for that 
clarification.
    Chairman Lampson. Thank you. You are welcome.
    Any other----
    Mr. Inglis. Mr. Chairman, one question about the term used, 
Counsel may be able to help us with this, apparently some 
question about the transportation of fuel infrastructure as a 
defined term perhaps. Does it include storing and delivering of 
fuels to the final point of sale?
    The Counsel. It does, Mr. Inglis.
    Mr. Inglis. It does. And how about does it include tankage 
and pipelines as well?
    The Counsel. It does, Mr. Inglis.
    Mr. Inglis. Thanks.
    Chairman Lampson. Any further discussion on the amendment? 
If no, the vote occurs on the amendment. All in favor say aye. 
Those opposed, say no. The ayes have it and the amendment is 
agreed to.
    The second amendment on the roster is an amendment offered 
by the gentlelady from California, Ms. Woolsey. Are you ready 
to proceed with your amendment?
    Ms. Woolsey. Mr. Chairman, Congressman Bartlett and I have 
an amendment at the desk.
    Chairman Lampson. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 2773 offered by Ms. Woolsey of 
California and Mr. Bartlett of Maryland.
    Chairman Lampson. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered. I recognize the 
gentlelady for five minutes to explain the amendment.
    Ms. Woolsey. Mr. Chairman, our amendment adds language to 
ensure that as we move forward to enhance our nation's fuel 
supply that we do so in an environmentally responsible manner. 
As Mr. Waskow pointed out at our hearing last week, biofuels do 
have the potential to diversify our energy needs and reduce 
greenhouse gas emissions but only if we pursue this path with a 
full understanding of the implications of biofuel production 
and processing. That is why our amendment adds a new section of 
the bill that does three things.
    It amends the Energy Policy Act of 2005 to explicitly add 
environmental science to the list of disciplines that the 
bioenergy centers created in the Act making sure that they are 
authorized to pursue. Our amendment also specifies the goal of 
producing biofuels should be pursued in a manner that ensures 
the cropping systems will be sustainable and the feedstock 
production and processing will result in lower greenhouse gas 
emissions. Our amendment also finally adds a new goal for the 
research conducted by the centers to develop cellulosic 
feedstocks that efficiently utilize resources and promote 
environmental sustainability.
    Two new research and development programs are also added to 
the bill. One directs the Secretary in consultation with EPA to 
develop a research and development program to develop tools to 
do life cycle analysis of biofuel feedstocks and to evaluate 
the potential environmental impacts associated with increased 
feedstock production. The other new program directs the 
Secretary in consultation with the Secretary of Agriculture to 
establish a research and development program on small-scale 
production and processing of biofuels for farm use.
    Mr. Chairman, these are some modest steps and I believe, as 
does Mr. Bartlett, that we must take these steps to develop 
information so that we can be guided in our effort to promote 
biofuel production so that it can be used in a manner that will 
truly address both our need for energy security and our need 
for a clean, healthy environment. So I urge my colleagues to 
support our amendment.
    [The prepared statement of Ms. Woolsey follows:]
           Prepared Statement of Representative Lynn Woolsey
    Mr. Chairman, my amendment adds language to ensure that as we move 
forward to enhance our nation's fuel supply that we do so in an 
environmentally responsible manner.
    As Mr. Waskow pointed out at our hearing last week, biofuels do 
have potential to diversify our energy needs and reduce greenhouse gas 
emissions, but only if we pursue this path with a full understanding of 
the implications of biofuel production and processing.
    That's why my amendment adds a new section of the bill that does 
three things:
    It amends the Energy Policy Act of 2005 to explicitly add 
environmental science to the list of disciplines that the Bioenergy 
Centers created in the Act are authorized to pursue. My amendment also 
specifies the goal of producing biofuels should be pursued in a manner 
that ensures the cropping systems will be sustainable and the feedstock 
production and processing will result in lower greenhouse gas 
emissions.
    My amendment also adds a new goal for the research conducted by the 
Centers to develop cellulosic feedstocks that efficiently utilize 
resources and promote environmental sustainability.
    Two new research and development programs are also added to the 
bill. One directs the Secretary in consultation with EPA to develop a 
research and development program to develop tools to do life cycle 
analysis of biofuel feedstocks and to evaluate the potential 
environmental impacts associated with increased feedstock production.
    The other new program directs the Secretary in consultation with 
the Secretary of Agriculture to establish a research and development 
program on small-scale production and processing of biofuels for on-
farm use.
    These are some modest steps that I believe we must take to develop 
information that will guide us in our efforts to promote biofuel 
production and use in a manner that will truly be address both our need 
for energy security and our need for a clean, healthy environment.
    I urge my colleagues to support my amendment.

    Chairman Lampson. Thank you, Ms. Woolsey.
    I recognize Mr. Bartlett for remarks, five minutes.
    Mr. Bartlett. I am pleased to join my friend in proposing 
this amendment. Farmers are our best environmental stewards. 
They do not eat their seed corn so that they can ensure future 
harvests. Sustainable biofuel production will require reducing 
fossil fuel inputs and ensure sufficient organic material is 
retained to maintain soil fertility.
    Congresswoman Woolsey and I both represent primarily small 
and medium-sized family farms. Our family farmers own most of 
the land and assets in our country. They dedicate the largest 
proportion of land set aside to protect the environment in the 
Conservation Reserve Program and the Wetlands Reserve Program. 
However, more than half of them are losing money farming and 
must rely on other work for income. We really need to help our 
family farmers reduce their energy costs and provide them with 
opportunities to become energy producers.
    This program also addresses a tendency for stovepiping that 
can isolate expertise within departments. Research under this 
bill should complement rather than duplicate other Federal 
Government efforts. It is important that research authorized 
under this bill by the Department of Energy take advantage of 
and benefit from creating a synergy with ongoing biofuels 
research and development and field testing initiatives by the 
Department of Agriculture.
    [The prepared statement of Mr. Bartlett follows:]
          Prepared Statement of Representative Roscoe Bartlett
    Mr. Chairman, I am offering an amendment sponsored by my good 
friend, Congresswoman Lynn Woolsey, and I am presenting it to you on 
behalf of both of us. The Woolsey amendment adds language to ensure 
that as we move forward to enhance our nation's fuel supply that we do 
so in an environmentally responsible manner.
    As Mr. Waskow pointed out at our hearing last week, biofuels do 
have potential to diversify our energy needs and reduce greenhouse gas 
emissions, but only if we pursue this path with a full understanding of 
the implications of biofuel production and processing.
    That's why this amendment adds a new section of the bill that does 
three things:
    First, it amends the Energy Policy Act of 2005 to explicitly add 
environmental science to the list of disciplines that the Bioenergy 
Centers created in the Act are authorized to pursue. This amendment 
also specifies the goal of producing biofuels should be pursued in a 
manner that ensures the cropping systems will be sustainable and the 
feedstock production and processing will result in lower greenhouse gas 
emissions. Farmers are our best environmental stewards. They do not eat 
their seed corn so that they can ensure future harvests. Sustainable 
biofuel production will require reducing fossil fuel inputs and ensure 
sufficient organic material is retained to maintain soil fertility.
    The amendment also adds a new goal for the research conducted by 
the Centers to develop cellulosic feedstocks that will not entail a 
food versus fuel trade-off and efficiently utilize resources and 
promote environmental sustainability.
    The second change is that there would be two new research and 
development programs also added to the bill. One directs the Secretary 
in consultation with EPA to develop a research and development program 
to develop tools to do life cycle analysis of biofuel feedstocks and to 
evaluate the potential environmental impacts associated with increased 
feedstock production.
    Third, the other new program directs the Secretary in consultation 
with the Secretary of Agriculture to establish a research and 
development program on small-scale production and processing of 
biofuels for on-farm use.
    Congresswoman Woolsey and I both represent primarily small and 
medium-size family farms. Our family farmers own most of the land and 
assets in our country. They dedicate the largest proportion of land set 
aside to protect the environment in the Conservation Reserve Program 
and the Wetlands Reserve Program. However, more than half of them are 
losing money farming and must rely on other work for income. We really 
need to help our family farmers reduce their energy costs and provide 
them with opportunities to become energy producers.
    This program also addresses a tendency for stove piping that can 
isolate expertise within Departments. Research under this bill should 
complement rather than duplicate other Federal Government efforts. It 
is important that research authorized under this bill by the Department 
of Energy takes advantage of and benefits from creating a synergy with 
ongoing biofuels research and development and field testing initiatives 
by the Department of Agriculture.
    These are some modest steps that Congresswoman Woolsey and I 
believe we must take to develop information that will guide us in our 
efforts to promote biofuel production and use in a manner that will 
truly address both our need for energy security and our need for a 
clean, healthy environment.
    I urge my colleagues to support the Woolsey amendment.

    Chairman Lampson. Thank you, Mr. Bartlett.
    Is there further discussion on the amendment?
    Mr. Inglis. Mr. Chairman, I----
    Chairman Lampson. I recognize the Ranking Member.
    Mr. Inglis. A question for Ms. Woolsey and Dr. Bartlett. I 
want to make sure that what we are doing here is not letting 
the perfect be the enemy of the good. If we have a requirement 
that these alternative energies be created in sustainable 
production systems that reduce greenhouse gas emissions, if 
that is the case, are we basically making it so that you have 
got to have a perfectly elegant system to create these new 
fuels such that we will never get there because right now, for 
example, we create hydrogen by re-forming natural gas, which 
creates CO2, I assume, Dr. Bartlett, and if it 
does----
    Mr. Bartlett. If the gentleman would yield, that is true, 
and if you used it no more efficiently than you used the energy 
source in which you produced it, you would be increasing the 
CO2 footprint, but hopefully you would use the 
hydrogen much more efficiently as, for instance, in a fuel 
cell, which will operate at at least twice the efficiency of a 
reciprocating engine where you would reduce the carbon 
footprint. If you are going to increase the carbon footprint 
and if it is not going to be sustainable, then I don't know why 
you would want to do it. It would be counterproductive to even 
start down that road, wouldn't it?
    Mr. Inglis. Well, no, I don't think so because what you 
might have to do is, you might have to pursue a technology for 
a period of time, learn what you can out of it and then proceed 
to the next technology.
    Ms. Woolsey. Will the gentleman yield?
    Mr. Inglis. But if you wait for the most elegant 
technology, you may wait forever so that, you know, the Wright 
brothers, if they could have waited for a jet engine, it is 
better than a propeller, I suppose, but you can't do that. You 
have to go ahead with the propeller and get it going and then 
later you get a jet engine.
    Mr. Bartlett. If the gentleman would yield, I appreciate 
what you are saying. I agree with you totally, but this 
amendment certainly does not do that. All this says is that if 
you are starting down the road whose terminus you know will 
result in depletion of our topsoil and then the production of 
more CO2, a bigger CO2 footprint, you 
would never start down that road. Hopefully tomorrow you will 
be better than you were today but you shouldn't start down a 
road that you know leads you totally to the wrong place. If you 
know that to begin with, you shouldn't start down that road. I 
think that is all this legislation says.
    Mr. Inglis. Well, then I think that you must be assuming 
you are clairvoyant then because you must also assume that it 
is also all linear because it is not linear. The reality is 
that there may be some breakthrough that comes in from some 
unexpected source that solves one of the problems you have got. 
It isn't linear. You can't say we are going to make biofuels in 
a certain way that is totally elegant because you limit the 
possibilities, and science should be about expanding the 
possibilities, not limiting the possibilities.
    Ms. Woolsey. If the gentleman will yield?
    Mr. Inglis. Yes, I would be happy to.
    Ms. Woolsey. There is a lot we already know and we are 
saying apply what we know, and as we learn more, apply that. We 
want to prevent some fad from being the new biofuel energy and 
find out 10 years from now that it did nothing but raise the 
price of corn, for example, so that our dairies can't even 
afford it and when we haven't gotten any advantage for our 
environment. So there are things we already know, we will build 
on that and we take what we know into account and go forward.
    Mr. Inglis. Well, I would observe that there are some 
exciting things in the area of production of biomass that may 
be as elegant as what we all hope to have some day but there 
are others that aren't quite so elegant. In the meantime, we 
are learning a lot through the not so elegant, and to sort of--
it seems to me this amendment, I am not sure the full effect of 
it but it seems to me it just--a cursory reading of it that it 
seems to limit those possibilities by saying you have to have 
total elegance.
    Ms. Woolsey. Well, I didn't see the word ``elegance''--if 
the gentleman would yield again--ever in our legislation. What 
we are looking for is a check and balance so that we don't just 
go straight down some path and then find out that was the wrong 
way to go. I mean, assuming that example would be corn and 
ethanol, that that is the way we are going so then we don't 
look at some better ways to produce efficiency.
    Mr. Inglis. So the research that we are talking about under 
this bill, if this amendment prevails, could any of the 
research be devoted to corn ethanol?
    Ms. Woolsey. I mean, as far as I am concerned, it could be 
applied to anything that has to do with biofuels.
    Mr. Inglis. Well, if you insert in 2A, line 8--8, 9, and 
10, if you insert that language, I am not sure you can use any 
of this research that we are setting up here on corn ethanol, 
or can you? I would--if you say yes, you still could use the 
money provided in this research for corn ethanol, then I am 
happy. If you say no, it can't be used on corn ethanol, I am 
not happy.
    Mr. Bartlett. If the gentleman would yield, why couldn't it 
be?
    Mr. Inglis. Well, because----
    Mr. Bartlett. Unless you were using more fossil-fuel energy 
to produce the corn ethanol than you were getting out of the 
corn ethanol, which I think is not the case, it is around 75, 
80 percent of all the energy in corn ethanol is represented by 
the fossil fuels that it took to produce it. So certainly with 
this language you could pursue corn ethanol.
    Mr. Inglis. Well, then you are making me happy. So it is--
it can be done--corn ethanol can be done in ``sustainable 
production systems that reduce greenhouse gas emissions''?
    Mr. Bartlett. Of course. If it only takes 75 percent as 
much energy or 80 percent as much energy to produce the corn 
ethanol as you get out of it, certainly you are reducing the 
CO2 footprint.
    Mr. Inglis. Well, then what does that quote that I just 
read take out of consideration?
    Mr. Bartlett. What quote was that?
    Mr. Inglis. Lines 8, 9 and 10. What does it take out of the 
realm of possibilities?
    Ms. Woolsey. Well, actually it is not intended to take 
anything out. It is intended to be a research project so that 
we know what is and what is not effective, I mean, where we get 
the best bang for our buck.
    Chairman Lampson. If I might add one comment, Ranking 
Member. There is nothing in this amendment which is intended to 
stop or slow down the production of biofuels, and if we might 
call on the Counsel while you are still claiming the time would 
yield to him for just a minute to hear his comment.
    The Counsel. Nothing in section 977 of the Energy Policy 
Act would preclude research on corn or any other feedstocks.
    Mr. Inglis. If I may continue. My time is expired, I guess, 
but you are very gracious to indulge me. I am just trying to 
make sure--I am trying to clarify the meaning of lines 8, 9 and 
10. That is where some crucial language exists, and what piqued 
my interest was the word ``hydrogen'' because, you know, for 
example, right now we are creating a lot of hydrogen by re-
forming natural gas which creates a CO2 problem.
    Mr. Bartlett. If the gentleman would yield. But hopefully 
we will use that hydrogen more efficiently than we would have 
used the natural gas from which we produced it. Otherwise there 
would be no reason to produce the hydrogen. When you use the 
hydrogen, you produce water that is pretty clean and it is very 
much more difficult to clean up the use of energy when you are 
using it in small amounts as you are in a car. It is a whole 
lot easier to clean it up in a major, like an electricity-
producing facility or something like that. Even if you are 
coming out even, you might still want to go to hydrogen because 
when you use it, it is really clean. But hydrogen has such a 
potential, it is a great candidate for fuel cells, and the hope 
would be that when we finally get to using hydrogen, having a 
hydrogen economy, it would be with fuel cells. We are not there 
yet. It is probably another decade or more before we get there 
but I think that was the dream of everybody who was promoting 
hydrogen. It is a great candidate for fuel cells.
    Mr. Inglis. Right, and I am looking for the--maybe the 
Counsel can help us with this. Can you read the paragraph with 
the insert in it? It is----
    The Counsel. We are talking about lines 8, 9----
    Mr. Inglis. Eight, 9 and 10.
    The Counsel. That would add it to B-1. B would read, 
``Goals: The program shall have the goal of developing 
technologies and methods based on the biological functions of 
genomes, microbes and plants that--'' and the amendment is 
added to the following: ``1. Can facilitate the production of 
fuels including hydrogen,'' and the language being added is, 
``in sustainable production systems that reduce greenhouse gas 
emissions.''
    Mr. Inglis. And you said earlier it is not a limitation. It 
is clearly a limitation, right? I mean, in other words, there 
might be some----
    Ms. Woolsey. Mr. Chairman.
    Mr. Inglis.--system that isn't a sustainable production 
system.
    The Counsel. Mr. Inglis, those are the goals of the 
program, exclusively the goals of the program to look at those 
areas.
    Mr. Inglis. Right, but if I am the guy administering it or 
the lady administering this, I wouldn't consider making a grant 
to one that doesn't fit the definition of sustainable, whatever 
I come up with is my definition of sustainable. I mean, it 
wouldn't fit the goals and therefore I wouldn't fund it, which 
seems to me is a little bit odd if it has got to be a jet 
engine, can't be a propeller.
    Chairman Lampson. Would the gentleman yield?
    Mr. Inglis. I would be happy to yield.
    Ms. Woolsey. Well, let us be clear that we are striving to 
produce biofuels systems that are sustainable.
    Mr. Inglis. Right.
    Mr. Woolsey. That is our intention, and it is the goal that 
we are trying to achieve, and if a person wants a grant, did 
you say they wouldn't apply for a grant if they weren't going 
to produce sustainable biofuel? Well, good, we will give the 
grants to those that do produce sustainability.
    Mr. Bartlett. If the gentlelady would yield, you may decide 
after pursuing a technology that it is not sustainable but I am 
having trouble understanding why you would want to start the 
pursuit of a technology if your perception from the beginning 
was that it was not going to be sustainable. That is all this 
says that clearly we are going to start down some paths that 
won't be fruitful. That is what R&D and research is. And, you 
know, everything you do in R&D and research is a success. There 
are no failures. You know you shouldn't go down that road again 
if it doesn't lead you to where you want to go. People don't 
understand that about basic research. There are no failures in 
basic research. You are testing a hypothesis and you test a 
hypothesis, and if that is the wrong way to go, you go 
somewhere else. But why would you ever start a program when 
your perception from the beginning was that it was not going to 
be sustainable?
    Mr. Inglis. Because you might get some breakthroughs. I 
know my time has expired but if I could just close with this, 
Mr. Chairman. The concern I have is having been out to visit in 
Ms. Woolsey's state to see the hydrogen partnership folks out 
there, they educated me about a big controversy in California 
involving whether the hydrogen must be green hydrogen and 
whether the hydrogen comes from, let us say, re-formed natural 
gas or coal, then it is not green and the result is, you don't 
want to make the hydrogen from that, or some people feel that 
you shouldn't make it from those sources. My view would be, you 
would want to go ahead and make the hydrogen from any source 
you can get it to get on down the road with discovery and 
knowing that you ultimately want to get to a totally green 
production of hydrogen but you don't let the perfect become the 
enemy of the good. You move down the road with the propeller 
and don't wait for the jet.
    Ms. Woolsey. Mr. Chairman.
    Chairman Lampson. The gentleman's time is expired.
    Mr. Neugebauer. Mr. Chairman.
    Chairman Lampson. Who seeks--yes?
    Mr. Neugebauer. I move to strike the last word. Well, 
speaking in support of this amendment, I think this is exactly 
the issue that we actually need to be discussing as we look at 
alternative energy because in many ways we are talking about 
policy in this Congress and I think we know there is an energy 
bill looming both in the House and the Senate that quite 
honestly pulls us away from traditional sources of producing 
energy in this country, moving away from coal, moving away from 
natural gas, moving away from hydrocarbons, and all under the 
umbrella of the carbon footprint, and I think as we move away 
from that and quite honestly I think there is some risk in 
doing that if we do not have developed other alternative energy 
resources to replace that because the demand for energy in this 
country, in this world is not going down, it is going up 
exponentially and all you have to do--and I know that Mr. 
Bartlett and I were in China not too long ago and there is an 
economy that is doubling about every six years and their energy 
consumption is doubling about every six years as well. And so I 
think as we start down the road with many of these promising--
seemingly promising alternatives, we need to make sure that we 
understand what our energy goal is and what our goal is for the 
carbon footprint because there are going to be some tradeoffs, 
and so it makes sense to measure those tradeoffs before you 
view the whole industry--and certainly I have a lot of ethanol 
production plants under construction in my district and there 
is a lot of promise there but we need to also make sure that in 
that process that we are accomplishing two goals but the number 
one goal has to be that we are moving the ball down the field 
of providing additional energy resources for this country 
because we are falling behind in that way. But secondly, making 
sure that we are using science and using our--and in some 
cases, you know, you have to also throw a little common sense 
in there at the same time to make sure that these new 
technologies are in fact accomplishing the environmental pluses 
that we think should be accruing over walking away from some of 
our traditional resources. And so I think it makes sense as we 
move forward to ask that question. I take the gentlewoman, the 
gentleman at his word that this doesn't prevent them from 
looking at that but it just says early on, hey, if this doesn't 
look like this is panning out, let us go in a different 
direction and not throw out--sometimes I think--and I think we 
have to be very careful here with the American people letting 
them think that some of these new technologies are some kind of 
breakthroughs that are going to solve our energy problems when 
in fact they are going to be a piece, some of them a small 
piece, in my estimation, of being able to satisfy and make our 
country less dependent on foreign oil and other sources of 
energy. So I would speak in favor of that because I just 
think--I think this is kind of what I call a common sense 
amendment. It just says you know what, let us just make sure 
that we are accomplishing what are the national priorities of 
this country, and that is more energy, and doing it with the 
least increase or in any way we can diminish the carbon 
footprint as we move forward. So I urge my colleagues to 
support this amendment.
    Chairman Lampson. Thank you. I recognize Ms. Woolsey.
    Ms. Woolsey. Well, I couldn't have said it better myself, 
so I am not going to repeat what the gentleman said. Thank you. 
I just want to remind all of us that states can set their own 
standards, they can set higher standards, and California always 
will. That doesn't mean your state has to. And we already know 
green hydrogen technologies, so it is not like we have to throw 
the baby out with the bath water. If other areas want to adopt 
those standards, I mean they have that opportunity. But, you 
know, you are a state's rights guy.
    Mr. Bartlett. Mr. Chairman.
    Chairman Lampson. Will you yield back?
    Ms. Woolsey. Yes, I yield to Mr. Bartlett.
    Mr. Bartlett. Thank you very much. Mr. Chairman, I am very 
sensitive to the concerns that our Ranking Member has and I 
would like to note that this is the Subcommittee, that if this 
language can be improved, I would like to commit that I would 
like to work with our Ranking Member so that we can improve 
this language if it needs improved so that a manager's 
amendment when this goes to the Full Committee would include 
the improved language so that nobody has the kinds of concerns 
that our Ranking Member has.
    Chairman Lampson. Thank you very much. Do you want to make 
another comment?
    Mr. Inglis. If the gentlelady will yield?
    Ms. Woolsey. Yes.
    Mr. Inglis. That is a very nice offer from Dr. Bartlett and 
I accept that offer.
    Chairman Lampson. Any other discussion on the amendment? 
Any other discussion on the amendment? If no, the vote occurs 
on the amendment. All in favor say aye. Those opposed, say no. 
The ayes have it and the amendment is agreed to.
    Are there other amendments? Hearing none, the vote is on 
the bill, and the Chair makes note of a quorum being present. 
Hearing none, the vote is on the bill, H.R. 2773, the Biofuels 
Research and Development Enhancement Act, as amended. All those 
in favor will say aye. All those opposed, say no. In the 
opinion of the Chair, the ayes have it.
    We will recognize Ms. Woolsey to offer a motion.
    Ms. Woolsey. Mr. Chairman, I move that the Subcommittee 
favorably report H.R. 2773 as amended to the Full Committee. 
Furthermore, I move that the staff be instructed to prepare the 
Subcommittee legislative report and make necessary technical 
and conforming changes to the bill as amended in accordance 
with the recommendations of the Subcommittee.
    Chairman Lampson. The question is on the motion to report 
the bill favorably. Those in favor of the motion will signify 
by saying aye. Those opposed, no. The ayes have it and the bill 
is favorably reported.
    I want to thank the Members for their attendance, and this 
concludes our Subcommittee markup. We stand adjourned.
    [Whereupon, at 4:10 p.m., the Subcommittee was adjourned.]
                               Appendix:

                              ----------                              


        H.R. 2773, Section-by-Section Analysis, Amendment Roster






               Section-by-Section Analysis of H.R. 2773,
               the Biofuels Research and Development Act

Section 2.  Biofuels and Biorefinery Information Center

    Directs the Secretary of Energy, in cooperation with the Secretary 
of Agriculture, to establish an information center to serve as a 
clearinghouse of information related to the research, development, and 
commercial applications of technologies related to biofuels and 
biorefinery technologies. This section will help make readily available 
to interested parties the latest information on methods for biofuels 
development to help support the rapid growth and deployment of 
biofuels.

Section 3.  Biofuels and Advanced Biofuels Infrastructure

    Recognizing the inherent problems with transporting and storing 
biofuels in the existing petroleum fuels infrastructure, this section 
establishes and program of research, development, and demonstration for 
modifications and treatments to existing infrastructure and development 
of new infrastructure.

Section 4. Biodiesel

    The Secretary is directed to submit a report to Congress on any 
research and development challenges in increasing to five percent the 
amount of biodiesel, as compared to the current level, the amount of 
all diesels sold nationally.

Section 5.  Bioresearch Centers for Systems Biology Program

    The Bioresearch Center program created in the Energy Policy 
establish at least 11 regionally located centers.

Section 6.  Grants for Biofuels Production Research and Development in 
                    Certain States

    Establishes a research and development grant program in states with 
low rates of Biofuels production, as is determined by the Secretary of 
Energy.

Section 7. Biorefine Energy Efficiency

    Adds a new subsection the Section 932 of the Energy Policy Act of 
2005 (Bioenergy Program) to establish a program of research, 
development, demonstration and commercial application of technologies 
to increase the energy efficiency and reduce the energy consumption of 
biorefinery facilities.

Section 8.  Stuff of Increase Consumption of Ethanol-Blended Gasoline 
                    with Higher Levels

    Directs the Secretary of Energy to conduct a study, in cooperation 
with the Secretaries of Agriculture and Transportation and EPA, on the 
feasibility of increasing the consumption of ethanol-blended gasoline 
at blend levels between 10 and 40 percent.

Section 9.  Study of Optimization of Flexible Fueled Vehicles to Use E-
                    85

    Directs the Secretary of Energy to conduct a study to determine if 
optimizing flexible fuel vehicles to operate using E-85 would increase 
the fuel efficiency while using E-85.

Section 10.  Study of Engine Durability Associated with the Use of 
                    Biodiesel

    Directs the Secretary of Energy to conduct a study on the effects 
of the use of biodiesel, at varying blend levels, on engine durability.

Section 11. Authorization for Appropriation

    This section makes the following authorizing changes:

          Extends the authorization of Section 931 (Renewable 
        Energy) Energy Policy Act of 2005 through 2010 (currently 
        expires in 2009) and funds the programs at $963 million.

          Increases the authorization levels for Section 932 
        (Bioenergy Programs) of the Energy Policy Act of 2005 to:

                   FY08--$377 million

                   FY09--$398 million

                   FY10--$419 million
                
                

            XXIII. Proceedings of the Full Committee Markup



   XXIII. PROCEEDINGS OF THE FULL COMMITTEE MARKUP ON H.R. 2773, THE 
           BIOFUELS RESEARCH AND DEVELOPMENT ENHANCEMENT ACT

                              ----------                              


                        WEDNESDAY, JUNE 27, 2007

                  House of Representatives,
                       Committee on Science and Technology,
                                                    Washington, DC.

    The Committee met, pursuant to call, at 10:08 a.m., in Room 
2318 of the Rayburn House Office Building, Hon. Bart Gordon 
[Chairman of the Committee] presiding.
    Chairman Gordon. The Committee will come to order.
    Pursuant to notice, the Committee on Science and Technology 
meets to consider the following measures: H.R. 906, the Global 
Change Research and Data Management Act of 2007; H.R. 1933, the 
Department of Energy Carbon Capture and Storage Research, 
Development, and Demonstration Act of 2007; H.R. 2773, the 
Biofuels Research and Development Enhancement Act; and H.R. 
2774, the Solar Energy Research and Investment Act of 2007.
    I know that we have a lot of other markups going on today, 
so we are going to try to proceed, but I would like to make a 
couple of announcements at first. Now, some of the Members have 
been interested in the trip we are going to be taking, the 
fact-finding trip we are taking to Greenland the weekend of 
July the 19th. We should know today about--we have a plane, but 
we still have concern about in-country travel, because we can't 
use our plane there, because of the lengths of the runway. We 
should know more about that today, so we will know the size and 
the number of folks that we can take.
    Also, you have received a letter through your office, but I 
will remind you, in case you didn't know, that there is going 
to be a climate change meeting of the UN Framework Convention 
on Climate Change, the parent body that oversees the Kyoto 
Protocol. It will be held in Bali from December the 3rd to the 
14th. There will be important areas of discussion. It will 
include carbon sequestration, reforestation, avoiding 
deforestation, and carbon trading. There will be about 10,000 
international delegates there. We will not, or as Members, we 
will not be a credentialed participant, but we will be able to 
interact with those folks that are there. We will not be taking 
a Science Committee group as a whole, but we do have some 
slots, I think, that will be made available to us, for 
individuals that would like to go. But again, when you put 
10,000 people there, it is going to be crowded, and so, you 
need to let us know soon.
    And finally, I think that we should all say happy birthday 
to Margaret today. We congratulate her on surviving one more, 
and hope there will be more to come.
    Mr. Lampson. And happy anniversary to you and your wife, 
Mr. Chairman.
    Chairman Gordon. Thank you for reminding me. By the way, 
from 7:00 to 9:00 will be a good time to call votes, because I 
am not going to be here tonight.
    With concern about global climate change, the high gas and 
electricity prices, and our growing reliance on unstable energy 
supplying nations, energy has come to the forefront of our 
constituents' awareness, and has been placed at the top of the 
Congressional to-do list. Here, on the Science and Technology 
Committee, we have responded with an aggressive energy agenda. 
With the addition of four bills, that we are going to mark up 
today, this committee will contribute an even dozen pieces of 
bipartisan legislation that made a vital contribution to the 
national strategy to put U.S. and the world on track to a more 
sustainable future.
    First, we will consider H.R. 906. Mr. Udall and Mr. Inglis, 
the Ranking Member of the Energy and Environment Subcommittee 
and co-sponsor of the bill, have worked together to produce 
this legislation. H.R. 906 re-orients the U.S. Global Change 
Research Program to produce more policy relevant climate 
information for regional, State, and local governments, and 
other groups.
    We will then take up H.R. 1933, by Representative Udall, 
which sets out the next steps in DOE's carbon mitigation 
strategies. In addition to ongoing research in carbon 
management, the bill authorizes DOE to conduct demonstrations 
on large scale Carbon Capture and Storage technologies, through 
partnerships with industrial, academic, and government 
entities. Because we will continue to use our abundant 
resources of coal to meet our energy needs for the foreseeable 
future, it is critical that we demonstrate an integrated system 
of capture, transportation, and storage of carbon dioxide, at a 
scale that encourages industry to start making technological 
choices.
    Next, the Committee will take up a bill by the Chairman of 
the Energy and Environment Subcommittee, Representative Nick 
Lampson. H.R. 2773, the Biofuels Research and Development 
Enhancement Act, will better coordinate and compile information 
from federal biofuels research programs, and focus biofuels 
research on infrastructure needs and efficiency of biorefinery 
technologies. H.R. 2773 also provides for the in depth study of 
several challenges facing broader of biofuels, and increases 
the funding levels of biofuels research.
    Finally, we will consider H.R. 2774, the Solar Energy 
Research and Advancement Act of 2007, introduced by 
Congresswoman Giffords. This bill creates an R&D program on 
energy storage technology for concentrating solar plants, which 
allows for the use of solar energy, even when the sun isn't 
shining. It also asks DOE to conduct studies on how to best 
integrate concentrating solar plants within the grid, and ways 
to reduce water uses in these plants. In addition, it creates a 
workforce training program for solar installation and 
maintenance, which is critical to making solar power a real 
energy option across the Nation.
    For each of these bills, the Energy and Environment 
Subcommittee held legislative hearings, had markups, where we 
heard valuable witness testimony, and facilitated good Member 
discussions on the barriers and possible pathways to these 
programs. And as you know, we are not alone in this effort. The 
Energy and Commerce Committee is marking up a series of bills 
today, at this very moment, and my friend, Congressman Hall, as 
well as a few of the folks in the Majority, are on both 
committees, so we are monitoring that, and if you see a dust 
cloud here at some point, we will be moving to the other 
committee to make those votes, but I am sure we will be left in 
good hands here, and we will continue with this markup.
    In conclusion, I want to urge my colleagues to support 
these bills. I know that the Committee's pace has been very 
aggressive, and it has been difficult at times for all of us. 
However, I believe the products that have resulted from this 
process demonstrate the value of this committee, and its 
bipartisan work reflects the entire membership.
    The bottom line is that we are going to have an energy bill 
in July. The Science Committee is going to, in a bipartisan 
way, make a major, major contribution with that. There are 
going to be several other committees that will have bills. We 
are going to get a reference from most of those, sequential, 
which we will also put our mark on. Every bill that has come 
out of this committee has been bipartisan, all but one. We will 
see what happens today, but so far, all but one has been 
unanimous, and so, I think everyone on this committee can go 
home, and claim a great deal of credit for what I think will be 
not an enormously comprehensive, but a good bill, a step 
forward, that will pass by a large margin on the House Floor in 
July.
    So now, I recognize Mr. Hall to present his opening 
remarks.
    [The prepared statement of Chairman Gordon follows:]
               Prepared Statement of Chairman Bart Gordon
    With concerns about global climate change, high gas and electricity 
prices, and our growing reliance on unstable energy-supplying nations, 
energy has come to the forefront of our constituents' awareness and has 
been placed at the top of the Congressional ``To-Do'' list.
    Here on the Science and Technology Committee we have responded with 
an aggressive energy agenda.
    With the addition of the four bills we are marking up today, this 
committee will contribute an even dozen pieces of legislation that make 
a vital contribution to the national strategy to put the U.S., and the 
world, on track to a more sustainable future.
    First we will consider H.R. 906. Mr. Udall and Mr. Inglis, the 
Ranking Member of the Energy and Environment Subcommittee and co-
sponsor of the bill, have worked together to produce this legislation.
    H.R. 906 re-orients the U.S. Global Change Research Program to 
produce more policy-relevant climate information for regional, State, 
and local governments and other user groups.
    We will then take up H.R. 1933 by Rep. Udall, which sets out the 
next steps in DOE's carbon mitigation strategies. In addition to 
ongoing research in carbon management, the bill authorizes DOE to 
conduct demonstrations of large-scale carbon capture and storage 
technologies through partnerships with industrial, academic and 
government entities.
    Because we will continue to use our abundant resources of coal to 
meet our energy needs for the foreseeable future, it is critical that 
we demonstrate an integrated system of capture, transportation, and 
storage of carbon dioxide at a scale that encourages industry to start 
making technology choices.
    Next, the Committee will take up a bill by the Chairman of the 
Energy & Environment Subcommittee, Rep. Nick Lampson. H.R. 2773, the 
Biofuels Research and Development Enhancement Act, will better 
coordinate and compile information from federal biofuels research 
programs and focus biofuels research on infrastructure needs and 
efficiency of biorefinery technologies.
    H.R. 2773 also provides for the in-depth study of several 
challenges facing broader use of biofuels and increases the funding 
levels for biofuels research.
    Finally, we will consider H.R. 2774, the Solar Energy Research and 
Advancement Act of 2007, introduced by Congresswoman Giffords. This 
bill creates an R&D program on energy storage technology for 
concentrating solar power plants, which allows for the use of solar 
energy even when the sun isn't shining.
    It also asks DOE to conduct studies on how to best integrate 
concentrating solar plants with the grid, and ways to reduce water 
usage in these plants. In addition, it creates a workforce training 
program for solar installation and maintenance, which is critical to 
making solar power a real energy option across the country.
    For each of these bills the Energy and Environment Subcommittee 
held legislative hearings and markups where we heard valuable witness 
testimony and facilitated good Member discussions on the barriers and 
possible pathways for these programs.
    And, as you all may know, we are not alone in this effort today. 
The Energy and Commerce Committee is also marking up a series of energy 
bills and I, along with Ranking Member Hall and a few others, may have 
to excuse myself for votes in that committee.
    In conclusion, I urge my colleagues to support these four bills. I 
know the Committee's pace has been very aggressive and that has been 
difficult at times for all of us. However, I believe the products that 
have resulted from this process demonstrate the value of this committee 
and its work and it reflects well on the entire membership.
    I want to thank all the Members for their cooperation and 
participation.

    Mr. Hall. Thank you, Mr. Chairman, and I will try not to 
take the full length of time, and make one statement. I will be 
glad, as I am sure you will and others, when this month passes.
    I understand that you and your fellow Chairman and other 
Members have been working, I guess, under the usual pressure of 
this first year, to get and report bills out of the Committee, 
and sometimes, I fear that when we rush things through, we 
don't get the best end product we could have, if we had more 
time to fully vet the language, but I guess we will be working 
on that as we go.
    You have done a good job of working with us, and I thank 
you for that. While I think improvements in the bill before us 
today are going to occur through amendments to be offered, I 
think they could be improved further, and I hope we will have 
other opportunities to do this, as the bill moves to the Floor. 
It is also my hope and understanding that, going forward, there 
will be more of an effort to have both sides working together, 
as we craft legislation to come before this committee. We will 
have more time. I think this would improve not only the quality 
of work we produce, but also, the bipartisan way in which they 
are handled.
    With that said, I support and believe it is important to 
our country's energy future to keep all options on the table, 
and we strive to do that with the three energy bills before us. 
One of our greatest challenges as a Nation is energy self-
sufficiency. We need to break our dependence on foreign sources 
of energy from countries we don't trust and who don't trust us. 
To do that, we need to be honest and practical about what needs 
to be done to get to that point.
    Solar and biofuels are an important source of domestic 
energy, but they are also limited in their scope. It is 
important that we continue to research and develop the 
resources we know exist domestically, and currently provide 
reliable, affordable, and clean sources of energy. I look 
forward to working with the Committee and working with you, Mr. 
Chairman, in the months ahead, to address this reality, so that 
Americans can enjoy more energy choices at a lower cost.
    I yield back.
    [The prepared statement of Mr. Hall follows:]
           Prepared Statement of Representative Ralph M. Hall
    Thank you Mr. Chairman. In the interest of time, I will keep my 
statement brief and say that I will be glad when this month is over. I 
understand that you and your fellow Chairmen have been working under 
pressure from the Speaker to report bills out of committee, but I fear 
that sometimes when things are rushed through, we don't get the best 
end-products we could have if we had more time to fully vet the 
language. While I think there are improvements in the bills before us 
today with the Subcommittee markup last week and the amendments to be 
offered today, I think that they could still be improved upon, and I 
hope that we'll have other opportunities to do so. It is also my hope 
and understanding that going forward, there will be more of an effort 
to have both sides working together as we craft legislation to come 
before the Committee. I think this would improve not only the quality 
of work we produce, but also the bipartisan way in which they are 
handled.
    With that said, I support what we're doing here today. It's 
important to our country's energy future to keep all options on table, 
and we continue to do that with the three energy bills before us.
    With that I yield back the balance of my time.

    Chairman Gordon. Thank you, Mr. Chairman, or rather, thank 
you, Mr. Hall.
    Let me also say that you may not know, but I met privately 
and personally with the Republican, both the staff from the 
Members, as well as the Committee staff the other day, to talk 
about how we can, you know, do what I think is a good job even 
better. There were compliments in some areas of the 
consultation. There were suggestions for improvement in the 
others. I have asked for them to put together models of how 
they see things done, and good ways that we have done it, and 
if we haven't done it as well as we would like, so those kind 
of models, we are going to continue to work together.
    I am a new Chairman, there is a lot of new staff, and we 
are going to get this thing better and better, as we go along, 
because I truly believe that more consultation gets us a 
bipartisan bill, a consensus bill, and we are all going to be 
better off.
    So, does anyone else wish to be recognized?
    We will now consider H.R. 2773, the Biofuels Research and 
Development Enhancement Act. I yield the gentleman from Texas, 
Mr. Lampson, five minutes to describe his bill.
    Mr. Lampson. Thank you, Mr. Chairman.
    As I noted at our recent hearing, and during Subcommittee 
consideration, I believe that we must enhance our efforts to 
develop a diverse set of alternative energy sources, and 
biofuels represents one of our best opportunities to accomplish 
this.
    My bill, H.R. 2773, the Biofuels Research and Development 
Enhancement Act, represents another effort toward reducing our 
country's dependence on foreign oil, foreign sources of oil, 
and building a domestic industry for clean, renewable fuels.
    The bill has several key components. The bill creates two 
focused research efforts within the existing Bioenergy Research 
Program created in the Energy Policy Act of 2005. First, 
recognizing the inherent problems with transporting and storing 
biofuels in the existing petroleum fuels infrastructure, the 
bill establishes a program of research, development, and 
demonstration for modifications and treatments to existing 
infrastructure, and research and development of new 
infrastructure system for biofuels.
    Recognizing the technical barriers to increasing the 
production of biofuels, the bill also establishes a program of 
research, development, demonstration, and commercial 
application of technologies to increase the energy efficiency 
and reduce the energy consumption of biorefinery facilities. 
The bill will help to better coordinate and compile the rapidly 
expanding base of information from biofuels research programs, 
by setting up a DOE center to serve as a clearinghouse of 
information related to the research, development, and 
commercial applications of technologies related to biofuels and 
biorefinery technologies.
    The bill will provide research grants in states with low 
rates of biofuels production, to work toward the development of 
biofuels assets, and the bill will expand the Bioresearch 
Center Program created in the Energy Policy Act of 2005, 
allowing for the establishment of additional, regionally 
dispersed centers.
    The bill also directs the Secretary to conduct several 
studies. The findings of these studies will help to guide the 
Committee's efforts as we look to make additional federal 
research commitments in the future.
    And last, the bill makes additional commitments to ongoing 
biofuels research programs, by increasing the authorization 
levels for these programs. This increase will also accommodate 
the new, focused infrastructure and efficiency research efforts 
that I mentioned earlier.
    And during Subcommittee consideration, the Committee 
adopted two amendments. The first was a manager's amendment 
that made several technical changes, as well as minor 
substantive changes worked out between the Majority and the 
Minority staff. The second amendment, offered by Ms. Woolsey 
and Mr. Bartlett, added to the bill a focus on the 
environmental impacts of biofuels developments. Both amendments 
improved the bill, and I am pleased the issues were brought 
before the Subcommittee.
    This bill will help to enhance the ongoing federal efforts 
to support biofuels research and development, as well as 
provide necessary information back to Congress, that will allow 
us to make additional research commitments in the future.
    I urge the Members of this committee to support the bill, 
and I yield back the balance of my time, Mr. Chairman.
    [The prepared statement of Mr. Lampson follows:]
           Prepared Statement of Representative Nick Lampson
    Mr. Chairman, as I noted at our recent hearing and during 
Subcommittee consideration, I believe we must enhance our efforts to 
develop a diverse set of alternative energy sources. Biofuels represent 
one of our best opportunities to accomplish this.
    My bill, H.R. 2773, the Biofuels Research and Development 
Enhancements Act, represents another effort toward reducing our 
country's dependence on foreign sources of oil, and building a domestic 
industry for clean renewable fuels.
    The bill has several key components.
    The bill creates two focused research efforts within the existing 
Bioenergy Research Program created in the Energy Policy Act of 2005.
    First, recognizing the inherent problems with transporting and 
storing biofuels in the existing petroleum fuels infrastructure, the 
bill establishes a program of research, development, and demonstration 
for modifications and treatments to existing infrastructure and 
research and development of new infrastructure system for biofuels.
    Recognizing the technical barriers to increasing the production of 
biofuels, the bill also establishes a program of research, development, 
demonstration and commercial application of technologies to increase 
the energy efficiency and reduce the energy consumption of biorefinery 
facilities.
    The bill will help to better coordinate and compile the rapidly 
expanding base of information from biofuels research programs by 
setting up a DOE center to serve as a clearinghouse of information 
related to the research, development, and commercial applications of 
technologies related to biofuels and biorefinery technologies.
    The bill will provide research grants in states with low rates of 
biofuels production to work toward the development of biofuels assets.
    And the bill will expand the Bioresearch Center program created in 
the Energy Policy Act of 2005, allowing for the establishment of 
additional, regionally dispersed centers.
    The bill also directs the Secretary to conduct several studies. 
These findings of these studies will help to guide the Committee's 
efforts as we look make additional federal research commitments in the 
future.
    Last, the bill makes additional commitments to ongoing biofuels 
research programs by increasing the authorization levels for these 
programs. This increase will also accommodate the new focused 
infrastructure and efficiency research efforts I mentioned earlier.
    During Subcommittee consideration, the Committee adopted two 
amendments. The first was a manager's amendment that made several 
technical changes as well as minor substantive changes worked out 
between the Majority and Minority staff.
    The second amendment offered by Ms. Woolsey and Mr. Bartlett added 
to the bill a focus on the environmental impacts of biofuels 
development.
    Both amendments improved the bill and I am pleased the issues were 
brought before the Subcommittee.
    This bill will help to enhance the on-going federal efforts to 
support biofuels research and development, as well provide necessary 
information back to Congress that will allow us to make additional 
research commitments in the future.
    I urge the Members of the Committee to support the bill and yield 
back the balance of my time.

    Chairman Gordon. I recognize Mr. Hall to present any 
remarks on the bill.
    Mr. Hall. Again, I would like to state my support for this 
bill, inasmuch as it is looking into the important questions we 
need to answer, in order for our country to start shifting our 
dependence from foreign sources of oil.
    I thank the Chairman and Chairman Lampson for agreeing to 
accept my amendment on biogas, the renewable fuel that is 
generated from landfills and agricultural waste, sewage 
treatment plants, cellulose, and other biomass sources. I will 
speak further on my amendments to this bill as they are brought 
up.
    With that, I yield back my time.
    Chairman Gordon. Does anyone else wish to be recognized?
    Mr. Bilbray. Mr. Chairman.
    Chairman Gordon. Mr. Bilbray is recognized.
    Mr. Bilbray. Mr. Chairman, I don't mean to be, let us just 
say, ants at the picnic, or whatever you want to call it. I 
know there are some more colorful terms, but I just ask that as 
we go through with the biofuel issue, that we recognize that 
not all biofuels are created equally, from the environmental 
point of view.
    Biodiesel itself has a great environmental benefit, and has 
a great BTU capability. It is very efficient. But I just feel 
obligated to say again and again and again that when it comes 
to virgin fuel ethanol, the emperor has no clothes, that 
ethanol is not an environmentally friendly fuel. California has 
been requesting for over a decade the elimination of the 
mandate, for air pollution reasons, of ethanol, and I would 
just like to say that if we are talking about ethanol being the 
finished product, or the major product in this bill, then the 
bill is misguided. If we are talking about the development of 
technologies to where the biofuels are fuels that do not have 
the vapor emissions problems of ethanol, has a longer carbon 
chain than alcohol, then I can see we are headed in the right 
direction, but I cannot allow this time or any time to go by 
from now on, where everybody sits back and just assumes that 
because it is ``renewable,'' that ethanol is a clean fuel for 
the future, and that we should be betting our technology on the 
use of alcohol as an alternative to gasoline.
    And I just ask that we have a frank and open discussion of 
the fact that ethanol is a use that is going to be curtailed in 
the future, and that one of the things you are going to hear 
again and again is people standing up and saying ethanol is not 
the environmental answer to either the greenhouse gas problem 
or to our energy crisis.
    Mr. Lampson. Would the gentleman yield?
    Mr. Bilbray. I would yield to the gentleman.
    Mr. Lampson. I share your interest and your concerns. It 
seems that we have tried to make ethanol more or less a silver 
bullet.
    But we tried to craft this legislation to be very balanced, 
that would include all biomass, and make sure that all of them 
be given a fair hearing through research as to what can be 
given back to us in the way of our energy benefits. So, I would 
be happy to do anything I can to work along with you to make 
sure that that is the real benefit of this.
    Mr. Bilbray. I appreciate that, and reclaiming my time, I 
just hope you understand that as a member of the Air Resources 
Board, we were begging the Federal Government to stop mandating 
that we have to use this fuel, and I think all of us agree that 
the California Air Resources Board is a leader in clean air, 
that the scientists were telling us we need to get this stuff 
out of our gasoline, to where EPA, recognizing the science, has 
reduced our mandate down to five percent.
    And in reality, during summer use, if the California 
environmental community had its way, we would outlaw all 
ethanol use during the summer. And I just want to say that 
again. I am going to continue to say that. Ethanol is not the 
environmental silver bullet that everybody is trying to sell 
it, and they are making a lot of money off of it, but the 
emperor has no clothes, that this is not an environmental 
option for the future. We need to get away from the concept of 
alcohol and go to more environmentally friendly green fuels.
    And I yield back, Mr. Chairman.
    Chairman Gordon. Thank you, Mr. Bilbray.
    Just to get a footnote to this. I don't want to go too 
long. To President Bush's credit, and the Department of Energy, 
they have been pushing forward also on biofuels. Yesterday, at 
1:00, the Secretary announced three consortiums across the 
country that will be looking into a diverse use of biofuels, 
developing enzymes that can break them down.
    It is a five-year program. They are going to give $25 
million per consortium each year for the next five years. It is 
a very exciting program, and it will have, in a diverse area of 
biomass, as well as the ultimate use for it. So, I think that, 
and they were excited about what we are doing here today, which 
I think adds on to that bill.
    Does anyone else wish to be recognized? If not, then, does 
Mr. Inglis, do you want to go forward with the colloquy now?
    Mr. Inglis. Yeah, that would be great.
    Chairman Gordon. Okay. Mr. Inglis is recognized for a 
colloquy.
    Mr. Inglis. Mr. Chairman, I would like to strike the last 
word for purposes of entering into a colloquy with the 
gentlelady from California, Ms. Woolsey, and the gentleman from 
Maryland, Mr. Bartlett.
    In the Subcommittee markup on H.R. 2773, we talked at some 
length about language in Section 12, line 15, which amended the 
goals of the Systems Biology Program set up under Section 977 
of the Energy Policy Act of 2005, which says it is ``to 
facilitate the production of fuels in sustainable production 
systems that reduce greenhouse gas emissions, including 
hydrogen.''
    I am concerned that this provision could limit helpful 
research that might carry emissions at the outset, but which 
might lead to better technologies in the future. As an example, 
and I have asked this of Ms. Woolsey, as an example, would coal 
to hydrogen technologies, that generate carbon emissions, not 
be eligible for funding under this program?
    Ms. Woolsey. I appreciate the gentleman's concerns, and as 
I said in the Subcommittee markup, and Counsel has clarified, 
the intent of these goals is not to restrict helpful research, 
or to prejudice the ultimate outcome of the research, in terms 
of its sustainability and greenhouse gas emissions. Our 
amendment adds a goal, the goal of achieving sustainable 
production of fuels and reduced greenhouse gas emissions. At 
the outset of the research, the fuel or system for producing 
may not have achieved this ultimate goal, but certainly, we 
think that it should be the direction of the work.
    Actually, if the fuel in question, hydrogen, or any other 
fuel, has already achieved the goals of sustainable production 
and reduced greenhouse gas emissions, then its development is 
probably past the point where much additional research is 
needed.
    I would argue that all these fuels need research and 
development support to achieve these important goals. If we 
ultimately discover they can't get there, then we should 
abandon them, but we can't know, unless from the very start, we 
point out what the fallacies could be.
    However, I do not intend that the Secretary of Energy, when 
deciding on what fuel production programs to promote, places 
emphasis on the sustainability of those fuels. Already, we are 
seeing negative impacts on corn prices due to the ethanol boom. 
As my colleague, Mr. Bartlett, who co-sponsored the amendment 
with me in Subcommittee, pointed out, using corn for fuel is 
not sustainable, at least not the way we are producing it now, 
and we ought to steer research and development toward fuel 
development that will yield abundant and renewable results.
    Mr. Inglis. I thank the gentlelady, and I am happy to yield 
to the gentleman from Maryland, Mr. Bartlett.
    Mr. Bartlett. Thank you. I appreciate the opportunity to 
address the gentleman's concerns.
    It was never my intent, and I do not believe the language 
in the Woolsey-Bartlett Amendment will restrict research and 
development of technologies that will ultimately provide 
payoffs, both for our climate and our energy market. The 
language I offered along with the gentlelady from California, 
Ms. Woolsey, was simply a mission statement that we will be 
supporting programs that aim at having an end result of 
reducing greenhouse gas emissions, and start with the goal of 
sustainable energy development.
    I want to reiterate that Counsel clarified during our 
Subcommittee markup that expressing the intent of these goals 
in our amendment would not restrict helpful research. Take the 
coal to hydrogen example you mentioned. There is an end result 
in mind, a clean, emission-free product. In addition, we are 
working at Carbon Capture and Sequestration projects in other 
areas that would complement a coal to hydrogen program, and 
offer solutions on how to cut back on the carbon emissions. So, 
no, I don't think your example would be prohibited.
    Again, I thank the gentleman for his concerns.
    [The prepared statements of Mr. Inglis, Ms. Woolsey, and 
Mr. Bartlett follow:]
 Prepared Statements of Representative Bob Inglis, Representative Lynn 
              Woolsey, and Representative Roscoe Bartlett

Mr. Inglis:

    Mr. Chairman, I'd like to strike the last word for the purposes of 
entering into a colloquy with the gentlelady from California, Ms. 
Woolsey, and the gentleman from Maryland, Mr. Bartlett.
    In the Subcommittee markup on H.R. 2773, we talked at some length 
about language in Sec. 12, line 15, which amended the goals of the 
Systems Biology Program set up under Sec. 977 of the Energy Policy Act 
of 2005 to ``facilitate the production of fuels in sustainable 
production systems that reduce greenhouse gas emissions, including 
hydrogen.''
    I'm concerned that this provision could limit helpful research that 
might carry emissions at the outset, but which might lead to better 
technologies.
    As an example, would coal-to-hydrogen technologies that generate 
carbon emissions not be eligible for funding under this program?

Ms. Woolsey:

    I appreciate the gentleman's concerns, and as I said in the 
Subcommittee markup, and Counsel clarified, the intent of these goals 
is not to restrict helpful research or to prejudge the ultimate outcome 
of the research in terms of its sustainability and greenhouse gas 
emissions.
    Our amendment adds a goal--the goal of achieving sustainable 
production of fuels and reduced greenhouse gas emissions. At the outset 
of the research, the fuel or system for producing may not have achieved 
this ultimate goal, but I certainly think that should be the direction 
of the work.
    Actually, if the fuel in question--hydrogen or any other fuel--has 
already achieved the goals of sustainable production and reduced 
greenhouse gas emissions, then its development is probably past the 
point where much additional research is needed.
    I would argue that all these fuels need research and development 
support to achieve these important goals. If we ultimately discover 
they can't get there, then we should abandon them, but we can't know 
that at the start as you have pointed out.
    However, I do intend that the Secretary of Energy, when deciding on 
what fuel production programs to promote, places emphasis on the 
sustainability of those fuels.
    Already we're seeing negative impacts on corn prices due to the 
ethanol boom. As my colleague Mr. Bartlett, who co-sponsored the 
amendment with me in Subcommittee, pointed out, using corn for fuel is 
not sustainable--at least not the way we are producing it now--and we 
ought to steer research and development toward fuel development that 
will yield abundant and renewable results.

Mr. Bartlett:

    I appreciate the opportunity to address the gentleman's concerns. 
It was never my intent and I do not believe the language in the 
Woolsey-Bartlett amendment will restrict research and development of 
technologies that will ultimately provide payoffs both for our climate 
and our energy market.
    The language I offered along with the gentlelady from California, 
Ms. Woolsey, was simply a mission statement--that we will be supporting 
programs that aim at having an end result of reducing greenhouse gas 
emissions, and start with the goal of sustainable energy development. I 
want to reiterate that Counsel clarified during our Subcommittee markup 
that expressing the intent of these goals in our amendment would not 
restrict helpful research.
    Take the coal-to-hydrogen example you mentioned. There is an end 
result in mind: a clean, emission-free product. In addition, we are 
working on carbon capture and sequestration projects in other areas 
that would complement a coal-to-hydrogen program, and offer solutions 
on how to cut back on the carbon emissions. So no, I don't think your 
example would be prohibited.
    Again, I thank the gentleman for his concerns.

    Mr. Inglis. And I thank the gentlelady from California and 
the gentleman from Maryland for their comments.
    I yield back, Mr. Chairman.
    Chairman Gordon. I assume everybody is happy, so if no one 
else wishes to be recognized, then I ask unanimous consent that 
the bill is considered as read and open to amendment at the 
point, that Members proceed with the amendments in the order of 
the roster. Without objection, so ordered.
    The first amendment on the roster is a manager's amendment 
offered by myself. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 2773, offered by Mr. Gordon of 
Tennessee.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    I recognize myself for five minutes to explain the 
amendment.
    I have an amendment at the desk. The Clerk will report the 
amendment. No, excuse me. My manager's amendment makes three 
minor changes to the bill, all suggested by the Minority.
    It adds consultation with EPA in the Infrastructure 
Research Program. It adds consultation with the Department of 
Transportation in the study of optimizing flex fuel vehicles to 
use E-85. And it adds the National Labs to the list of eligible 
consortium participants in the grant programs for states with 
low rates of biofuel production.
    Again, all three of these changes are based upon 
suggestions of the Minority, with a specific thanks to Ms. 
Biggert for raising the oversight of the inclusion of the 
National Labs, and I appreciate the consultation with my 
colleagues, and I urge adoption of the amendment.
    Is there further discussion? Ms. Biggert is recognized.
    Ms. Biggert. Thank you. I move to strike the last word.
    Chairman Gordon. The gentlelady is recognized for five 
minutes.
    Ms. Biggert. Thank you, Mr. Chairman.
    I just wanted to express my thanks to you for recognizing 
the important contributions that our National Labs can play in 
the biofuels research, and agreeing to allow them to 
participate in the consortia competing for the grants in 
Section 6.
    It is quite clear that the scientists and engineers at the 
Labs who have expertise in this area, and just yesterday, Oak 
Ridge National Laboratory, in the Chairman's home state, was 
selected by the DOE to lead one of the three Bioenergy Research 
Centers. Congratulations.
    And I don't think we should preclude these distinguished 
researchers from participating in possible future bioenergy 
research efforts, which is why I urge my colleagues to support 
the Chairman's amendment, and yield back the balance of my 
time.
    [The prepared statement of Ms. Biggert follows:]
           Prepared Statement of Representative Judy Biggert
    Thank you, Mr. Chairman. I just wanted to express my thanks to you 
for recognizing the important contributions that our national 
laboratories can play in biofuels research, and agreeing to allow them 
to participate in a consortia competing for the grants in Section 6.
    It's quite clear there are scientists and engineers at the labs who 
have expertise in this area. Just yesterday, Oak Ridge National 
Laboratory in the Chairman's home state was selected by the DOE to lead 
one of its three Bioenergy Research Centers.
    I don't think we should preclude these distinguished researchers 
from participating in possible future bioenergy research efforts, which 
is why I urge my colleagues to support the Chairman's amendment, and 
yield back the balance of my time.

    Chairman Gordon. The gentlelady is absolutely correct. All 
three of the awards yesterday had significant participation 
from the Labs. It would have been an oversight not to have done 
that, and we thank you for reading the bill, and bringing it to 
our attention.
    Is there further discussion on the amendment? If no, then 
the vote occurs on the amendment. All in favor, say aye. Aye. 
Opposed, no. The ayes have it, and the amendment is agreed to.
    The second amendment on the roster is offered by the 
gentleman from Texas, Mr. Hall. Are you ready to proceed with 
your amendment?
    Mr. Hall. I am ready. I have an amendment at the desk.
    Chairman Gordon. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 2773, offered by Mr. Hall of 
Texas.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    The gentleman is recognized for five minutes to explain his 
amendment.
    Mr. Hall. And this is number 008. Correct.
    The Clerk. Yes. Amendment #008.
    Mr. Hall. Mr. Chairman, I thank you, and my amendment 
directs the Secretary to carry out a program of research, 
development, and demonstration, as it relates to the blending 
of transportation fuels derived from coal to liquids with 
biofuels.
    As we continue to work toward energy independence, and I 
realize that we all want that. You don't have to be a 
Republican or a Democrat to want to be independent of those 
people over there that we rely on for 60 percent of our energy, 
40 percent from Saudi Arabia, a country that we don't trust, 
and we don't really like, nor look to. And our security in 
transportation fuels, we need to look at all of our domestic 
resources, both renewable and alternative.
    On the one hand, we have biofuels, which are an exciting 
option, using renewable feedstocks, and the other hand, we have 
the option of turning coal into a liquid transportation fuel. 
And I think we all probably want to do this. Maybe our 
difference is in timing here, and I don't know, there are 
quarterbacks and then, there are coaches, and they set the 
timing and everything, and I guess we all have to adhere to it, 
but we think the time is right to look at this amendment at 
this time. While biofuels have the potential to displace a 
portion of our current oil use, we simply don't have the supply 
to displace all of it. Coal to liquids also has the potential 
to displace oil use, but as we develop clean coal technologies 
for all sectors, we won't have an unlimited supply for this now 
abundant domestic resource.
    This amendment would conduct R&D into the blending of the 
two types of fuel, in order that by combining them, we can 
increase and prolong our supply of domestic fuels. By combining 
biofuels with coal to liquid, we use less of our country's, and 
less of the world's food supply and less of our coal reserves 
can be used for electricity generation and other applications.
    With that, Mr. Chairman, I thank you for the time, and I 
will yield back the balance of my time.
    Chairman Gordon. Thank you, Mr. Hall.
    I think you are going to have better luck on your next 
amendment, but this is, to a great extent, a replay of Mr. 
McCaul's earlier amendment. So, rather than taking the 
Committee's time, let me just once again say that I don't think 
this issue is quite ripe. We are going to aggressively study it 
this fall.
    Is there anyone else that would like to have a discussion? 
If there is no further discussion, then, the vote occurs on the 
amendment. All in favor, say aye. Opposed, no. No. The nos have 
it.
    Mr. Hall. Mr. Chairman, we would like a recorded vote.
    Chairman Gordon. The Clerk will call the roll.
    The Clerk. Chairman Gordon.
    Chairman Gordon. No.
    The Clerk. Chairman Gordon votes no. Mr. Costello.
    [No response.]
    The Clerk. Ms. Johnson.
    Ms. Johnson. No.
    The Clerk. Ms. Woolsey.
    Ms. Woolsey. No.
    The Clerk. Ms. Woolsey votes no. Mr. Udall.
    Mr. Udall. No.
    The Clerk. Mr. Udall votes no. Mr. Wu.
    [No response.]
    The Clerk. Mr. Baird.
    [No response.]
    The Clerk. Mr. Miller.
    Mr. Miller. No.
    The Clerk. Mr. Miller votes no. Mr. Lipinski.
    Mr. Lipinski. Mr. Lipinski votes no.
    The Clerk. Mr. Lipinski votes no. Mr. Lampson.
    Mr. Lampson. No.
    The Clerk. Mr. Lampson votes no. Ms. Giffords.
    Ms. Giffords. No.
    The Clerk. Ms. Giffords votes no. Mr. McNerney.
    Mr. McNerney. No.
    The Clerk. Mr. McNerney votes no. Mr. Kanjorski.
    [No response.]
    The Clerk. Ms. Hooley.
    Ms. Hooley. No.
    The Clerk. Ms. Hooley votes no. Mr. Rothman.
    Mr. Rothman. No.
    The Clerk. Mr. Rothman votes no. Mr. Honda.
    Mr. Honda. No.
    The Clerk. Mr. Honda votes no. Mr. Matheson.
    Mr. Matheson. No.
    The Clerk. Mr. Matheson votes no. Mr. Ross.
    Mr. Ross. No.
    The Clerk. Mr. Ross votes no. Mr. Chandler.
    Mr. Chandler. No.
    The Clerk. Mr. Chandler votes no. Mr. Carnahan.
    Mr. Carnahan. No.
    The Clerk. Mr. Carnahan votes no. Mr. Melancon.
    Mr. Melancon. No.
    The Clerk. Mr. Melancon votes no. Mr. Hill.
    [No response.]
    The Clerk. Mr. Hill.
    [No response.]
    The Clerk. Mr. Mitchell.
    Mr. Mitchell. No.
    The Clerk. Mr. Mitchell votes no. Mr. Wilson.
    [No response.]
    The Clerk. Mr. Hall.
    Mr. Hall. Aye.
    The Clerk. Mr. Hall votes aye. Mr. Sensenbrenner.
    [No response.]
    The Clerk. Mr. Lamar Smith.
    [No response.]
    The Clerk. Mr. Rohrabacher.
    [No response.]
    The Clerk. Mr. Bartlett.
    [No response.]
    The Clerk. Mr. Ehlers.
    [No response.]
    The Clerk. Mr. Lucas.
    [No response.]
    The Clerk. Mrs. Biggert.
    Ms. Biggert. Aye.
    The Clerk. Mrs. Biggert votes aye. Mr. Akin.
    [No response.]
    The Clerk. Mr. Bonner.
    [No response.]
    The Clerk. Mr. Feeney.
    Mr. Feeney. Aye.
    The Clerk. Mr. Feeney votes aye. Mr. Neugebauer.
    Mr. Neugebauer. Aye.
    The Clerk. Mr. Neugebauer votes aye. Mr. Inglis.
    Mr. Inglis. Aye.
    The Clerk. Mr. Inglis votes aye. Mr. Reichert.
    Mr. Reichert. No.
    The Clerk. Mr. Reichert votes no. Mr. McCaul.
    Mr. McCaul. Yes.
    The Clerk. Mr. McCaul votes aye. Mr. Diaz-Balart.
    Mr. Diaz-Balart. Aye.
    The Clerk. Mr. Diaz-Balart votes aye. Mr. Gingrey.
    Mr. Gingrey. Aye.
    The Clerk. Mr. Gingrey votes aye. Mr. Bilbray.
    Mr. Bilbray. Aye.
    The Clerk. Mr. Bilbray votes aye. Mr. Adrian Smith.
    Mr. Smith of Nebraska. Aye.
    The Clerk. Mr. Adrian Smith votes aye.
    Chairman Gordon. Are there other Members whose vote was not 
recorded, who would like to have their vote recorded? If no, 
then, the Clerk--oh, Mr. Wu. Thank you, Mr. Wu. Mr. Bartlett.
    Mr. Bartlett. Aye.
    The Clerk. Mr. Bartlett votes aye.
    Chairman Gordon. If no one else is here, then the Clerk 
will report. No, but since the Clerk has not reported back, 
then, with unanimous consent, Mr. Rohrabacher, I would ask that 
he be able to----
    Mr. Rohrabacher. I would vote yes. Vote several times, if 
you would let me.
    The Clerk. Mr. Rohrabacher votes aye.
    Chairman Gordon. Okay. We are going to have to close it 
now. So, would the Clerk please report?
    The Clerk. Mr. Chairman, 12 Members vote aye, and 20 vote 
no.


    Chairman Gordon. To answer Mr. Hall's question, no.
    Mr. Hall. I have been beat.
    Chairman Gordon. The third amendment on the roster is 
offered by the gentleman from Texas, Mr. Hall. Are you ready to 
proceed with your amendment?
    Mr. Hall. I am ready to proceed. I have an amendment at the 
desk.
    Chairman Gordon. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 2773, offered by Mr. Hall, 
amendment #009.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    The gentleman is recognized for five minutes to explain his 
amendment.
    Mr. Hall. Mr. Chairman, since I am going to do better on 
this one, I thank you for agreeing to accept the amendment, so 
I will be as brief as possible.
    My amendment adds biogas where appropriate in the bill, to 
ensure its inclusion and recognition as a biofuel. Biogas is a 
renewable fuel that we often tend to overlook, but it provides 
substantial renewable benefits, in that its production does not 
require additional land or water supply, and can be transported 
by pipeline once it meets pipeline gas standards.
    Biogas can also be converted to liquefied form, providing 
critical fuel use for heavy and medium duty trucks. Biogas 
also, unlike other biofuels, can provide up to 200 percent 
greenhouse gas reductions, as the gas would otherwise be 
released into the atmosphere as waste. Hence, by producing 
biogas as a fuel, as a vehicle fuel, its release into the 
atmosphere is prevented, and turned into a clean, low carbon 
fuel that can be applied to some of the cleanest burning 
engines currently available on the market. As well, biogas 
clearly provides direct foreign oil displacement, because its 
sources are domestic.
    And I want to thank the staff for working on this with us, 
thank you, and your staff and our staff for working together. 
And I yield back the balance of my time.
    Chairman Gordon. Is there further discussion on this good 
amendment? If no, the vote occurs on the amendment. All in 
favor, say aye. Aye. Opposed, no. The ayes have it. The 
amendment is agreed to.
    The fourth amendment on the roster is offered by the 
gentleman from Utah, Mr. Matheson. Are you ready to proceed 
with your amendment?
    Mr. Matheson. I am, Mr. Chairman. I have an amendment at 
the desk.
    Chairman Gordon. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 2773, offered by Mr. Matheson 
of Utah.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    The gentleman is recognized for five minutes to explain his 
amendment.
    Mr. Matheson. Thank you, Mr. Chairman.
    I think most Members of the Committee are aware that 
biofuels, particular ethanol, have a different makeup than 
gasoline, and something that my office has heard a lot about, 
and probably a lot of other Members have heard about, is the 
concern that in terms of how you dispense this material, it is 
a different type of material than gasoline. And so, there have 
been other issues about how to treat, it is treated in 
pipelines.
    My amendment focuses more on the actual dispenser of the 
fuel at the service station, and the concern that the various 
folks in the industry have expressed is that there is not a 
standard out there for how you design the dispensing equipment 
to make this work right with this new product. And what I have 
said in my amendment is, is if the private sector does not come 
up with its own set of standards for this, and we are going to 
allow that to happen first, but they don't, then the 
legislation would direct NIST to undertake the task of 
developing an industry standard, so that when we try to build 
out this infrastructure across our country, people are working 
to the same standard, and it makes for a more efficient 
circumstance in the marketplace.
    That is the amendment, in a simple explanation, Mr. 
Chairman, and I will be happy to yield for any questions, or 
yield back my time.
    Chairman Gordon. Thank you, Mr. Matheson. There is about a, 
like what, $15 billion infrastructure out there that would have 
to be replicated if we don't get this right, and your amendment 
really, along with the bill that we passed earlier on E-85, in 
terms of using NIST as that standard setter, is another very 
good addition.
    Is there anybody else? The gentleman from Florida.
    Mr. Diaz-Balart. Thank you, Mr. Chairman. Actually, I think 
I have a question more to counsel on this, if that is all 
right. And what does the word ``appropriate'' specifically mean 
in this amendment? At what point in the development of the 
private sector standards do the standards become appropriate 
under this amendment? That would be really the question.
    And Mr. Chairman, my understanding is that the National 
Technology Transfer and Advancement Act requires that all 
federal agencies, to use privately developed standards, 
particularly those developed by the standards developing 
agencies. I want to also know if that is correct, if the 
Counsel can let me know if that is correct. Further, does this 
amendment direct the federal agency, the Department of Energy, 
to violate that requirement? Does it ask NIST to violate that 
requirement?
    And lastly, Mr. Chairman, if I can also ask Counsel, does 
this amendment ask NIST to ignore the requirement to, again, 
coordinate federal, State, and local technical standards 
activities with private sector technical standards activities, 
with the goal of eliminating the unnecessary duplication and 
complexity in the development and promulgation of the measures?
    So I would obviously, then, see if Counsel can answer those 
questions for me, Mr. Chairman.
    The Counsel. Mr. Diaz-Balart, the appropriate standard 
language, the appropriate private sector standard language that 
is in this actually mirrors the language that is in the 
National Technology Transfer Act. It is a term that is used in 
there as an appropriate standard.
    In the absence of an appropriate private sector standard, 
the National Technology Transfer Act allows for the federal 
agency, then, the appropriate federal agency to promulgate the 
standard, if such standard doesn't exist.
    Mr. Diaz-Balart. And Mr. Chairman, this question really is 
more for Mr. Matheson's amendment.
    Chairman Gordon. Would you like for Mr. Matheson to 
comment, rather than the Counsel? Is that what you are saying.
    Mr. Diaz-Balart. It is actually based on the language in 
Mr. Matheson's amendment, that I am asking this question about. 
I just want to make sure we are on the right place here.
    The Counsel. Oh, yes, correct. Correct.
    Mr. Diaz-Balart. Right. Okay.
    The Counsel. Okay, so I want to understand what I did not 
answer for you, Mr. Diaz-Balart.
    Mr. Diaz-Balart. No, I just want to make sure that I was in 
the right place.
    The Counsel. Okay.
    Mr. Diaz-Balart. So, you are fine. I just wanted to make 
sure that I was not----
    The Counsel. Understood.
    Mr. Diaz-Balart.--asking you the question in the wrong 
time. Thank you, sir.
    Chairman Gordon. Thank you, and we have the Counsel's 
comments on record.
    And is there further discussion on the amendment? If not, 
all in favor, say aye. Aye. Opposed, no. The ayes have it. The 
amendment is passed.
    I understand that Ms. Biggert has, like many of us, has an 
additional markup, has to leave, and so, I am going to ask 
unanimous consent that her amendment, which is the last 
amendment in the series, be moved up to deal with now. And if 
there is no objection, then----
    Ms. Woolsey. Mr. Chairman, I don't object, but I am at the 
same markup as she is.
    Chairman Gordon. Do you have an amendment?
    Ms. Woolsey. Yes.
    Chairman Gordon. Well, then, why don't we----
    Ms. Woolsey. Well, go with Ms. Biggert, but I just want you 
to know, we are at the same markup. Okay.
    Chairman Gordon. Okay. Well, then, we will do hers, and 
move yours up, if that is necessary, also. The next amendment 
on the roster is the gentlelady from Illinois, Ms. Biggert. Are 
you ready to proceed?
    Ms. Biggert. Mr. Chairman, I have an amendment at the desk.
    Chairman Gordon. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 2773, offered by Mrs. Biggert 
of Illinois.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    The gentlelady is recognized for five minutes to explain 
her amendment.
    Ms. Biggert. Thank you, Mr. Chairman.
    My amendment does three things. First, it amends Section 5 
of the bill to limit to five years the duration of any grants 
for the creation of up to five Biofuel Research Centers. After 
five years, if the DOE chooses not to terminate the grant, then 
my amendment still requires the grantee to reapply for another 
grant, and may have to compete to receive additional funds.
    This amendment ensures that DOE holds these centers 
accountable for conducting research that produces results. To 
be effective, the kind of research centers established in 
Section 5 of this bill should concentrate resources on a 
specific problem for a finite period of time. If this kind of 
concentrated effort doesn't yield any breakthroughs, the DOE 
should focus its research efforts elsewhere. The amendment 
gives the DOE the flexibility to end its support for one center 
and take the research in a new and different direction, plus it 
prevents these centers from becoming another part of the 
entrenched DOE bureaucracy.
    Second, my amendment would require the DOE to evaluate the 
life cycle impact, and I think that, it is too bad Mr. Bilbray 
is not here right now, because he would like this, to evaluate 
the life cycle impact of the use of various ethanol blends on 
carbon dioxide and greenhouse gas emissions, as part of the 
ethanol blend studies in Section 8.
    If we are truly concerned about energy efficiency and 
climate change, then we need to think about increasing ethanol 
consumption within that context. We need to think about not 
just the efficiency of and emissions from our vehicles, but 
also, the efficiency of and emissions from biorefineries and 
the production of ethanol feedstocks. This provision of the 
amendment will allow Congress, the DOE, and potential ethanol 
producers to take a big picture look at how expanding the use 
of ethanol will affect carbon dioxide and greenhouse gas 
emissions.
    Finally, the amendment expands the study on biodiesel's 
impact on engine and engine durability in Section 10 of the 
bill, to also include its impact on the performance of engines 
and engine systems. This amendment also extends from one year 
to two the time allowed for DOE to complete this study.
    We have got to develop a better understanding of 
biodiesel's impact on engines and engine systems to be able to 
perfect a biodiesel blend that maximizes both their durability 
and performance. That is why the study in Section 10 should 
focus on more than durability. What good will biodiesel be to 
consumers, if it is formulated to minimize any wear and tear on 
a diesel engine, but it leads to clogged fuel filters, higher 
emissions, or lower fuel economy.
    And the converse is just as true. What good will biodiesel 
be to consumers if it doesn't clog filters and lead to lower 
emissions and better fuel economy, but the engine only lasts a 
few years. Not much in either case, and that is why this 
amendment would require the DOE to take a broader look at 
biodiesel's impact on engines and engine systems.
    I urge my colleagues to support the amendment, and yield 
back the balance of my time.
    [The prepared statement of Ms. Biggert follows:]
           Prepared Statement of Representative Judy Biggert
    Thank you, Mr. Chairman.
    My amendment does three things.
    First, it amends Section 5 of the bill to limit to five years the 
duration of any grants for the creation of up to five biofuels research 
centers. After five years, if the DOE chooses not to terminate the 
grant, my amendment still requires the grantee to reapply for another 
grant, and may have to compete to receive additional funds.
    My amendment ensures that DOE holds these centers accountable for 
conducting research that produces results. To be effective, the kind of 
research centers established in Section 5 of this bill should 
concentrate resources on a specific problem for a finite period of 
time. If this kind of concentrated effort doesn't yield any 
breakthroughs, the DOE should focus its research efforts elsewhere.
    My amendment gives the DOE the flexibility to end its support for 
one center, and take the research in a new and different direction. 
Plus, it prevents these centers from becoming another part of the 
entrenched DOE bureaucracy.
    Second, my amendment would require the DOE to evaluate the life 
cycle impact of the use of various ethanol blends on carbon dioxide and 
greenhouse gas emissions as a part of the ethanol blends study in 
Section 8.
    If we are truly concerned about energy efficiency and climate 
change, then we need to think about increasing ethanol consumption 
within that context. We need to think about not just the efficiency of 
and emissions from our vehicles, but also the efficiency of and 
emissions from biorefineries and the production of ethanol feedstocks. 
This provision of my amendment will allow Congress, the DOE, and 
potential ethanol producers to take a ``big picture'' look at how 
expanding the use of ethanol will affect carbon dioxide and greenhouse 
gas emissions.
    Finally, my amendment expands the study on biodiesel's impact on 
engine and engine system durability in Section 10 of the bill to also 
include its impact on the performance of engines and engine systems. 
The amendment also extends from one year to two the time allowed for 
DOE to complete the study.
    We've got to develop a better understanding of biodiesel's impact 
on engines and engine systems if we are to perfect a biodiesel blend 
that maximizes both their durability and performance. That's why the 
study in Section 10 should focus on more than durability.
    What good will biodiesel be to consumers if it's formulated to 
minimize any wear and tear on a diesel engine, but it leads to clogged 
fuel filters, higher emissions, or lower fuel economy? And the converse 
is just as true. What good will biodiesel be to consumers if it doesn't 
clog fuel filters and leads to lower emissions and better fuel economy, 
but the engine only lasts a few years?
    Not much in either case. That's why my amendment would require the 
DOE to take a broader look at biodiesel's impact on engines and engine 
systems.
    I urge my colleagues to support my amendment, and I yield back the 
balance of my time.

    Chairman Gordon. I thank you, Ms. Biggert, for this good 
amendment.
    Anyone else would like to make a comment? If not, all in 
favor of the amendment, say aye. Aye. Opposed, nay. The 
amendment passes.
    Also, first of all, let me thank those of you that are 
still here. I know there is lots going on today. We are going 
to try to move on through this. I think we are through with the 
toughest part of it.
    Ms. Woolsey also is going to the same markup as you, and 
so, I don't want to make this too confusing, but we are going 
to move to amendment #010, which is Mr. Bartlett and Mr. 
Woolsey. Is there a further----
    Ms. Woolsey. Mr. Woolsey.
    Chairman Gordon. Pardon me. I know the difference. Is there 
further discussion or rather, let me ask, are you ready to 
proceed with your amendment? I guess that would be Mr. 
Bartlett. Are you the lead, or Ms. Woolsey?
    Ms. Woolsey. Mr. Woolsey is.
    Chairman Gordon. All right. The Clerk will report the 
amendment.
    The Clerk. Amendment to H.R. 2773, offered by Mr. Bartlett 
and Ms. Woolsey.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    The gentlelady is recognized for five minutes to explain 
her amendment.
    Ms. Woolsey. Thank you, Mr. Chairman, and I would like to 
thank Mr. Bartlett, the gentleman from Maryland, for 
introducing this amendment with me. He is a great leader of 
sensible energy policy, and his involvement adds credibility to 
this amendment for sure.
    As I have said before, my dairy farmers are seeing their 
small profits wiped out by the rising cost of feed corn, due to 
increased demand to make ethanol. That is why I rise today to 
offer this amendment with Mr. Bartlett, that directs research 
and development for biofuels to take into consideration the 
effects on the food supply for both humans and animals.
    We are now at a crossroads. The American public is 
overwhelmingly concerned about the effects of global climate 
change, and they are looking to Congress to lead this effort. 
Our challenge is not only to bring forth new energy policy, but 
to do so in a way that solves more problems than it creates. 
That is why our amendment is important. We need new energy 
sources, and I think cellulosic biofuels will be part of that 
solution to get us there, but not at the expense of taking food 
out of our mouths, or driving up the price of basic food 
products like milk and eggs, because the price of feed is being 
passed along to the consumer.
    Mr. Chairman, I urge my colleagues to support the Bartlett-
Woolsey amendment, and ensure that development of biofuels is 
done in a sensible way, and I yield back the balance of my 
time.
    [The prepared statement of Ms. Woolsey follows:]
           Prepared Statement of Representative Lynn Woolsey
    Mr. Chairman, I move to strike the last word.
    Mr. Chairman, I would like to thank the gentleman from Maryland, 
Mr. Bartlett, for introducing this amendment with me. He is a great 
leader on sensible energy policy.
    As I have said before, my dairy farmers are seeing their small 
profits wiped out by the rising cost of feed corn due to increased 
demand to make ethanol. That's why I rise today to offer this amendment 
with Mr. Bartlett that directs research and development for biofuels to 
take into consideration the effects on the food supply for both humans 
and animals.
    We are now at a crossroads. The American public is overwhelmingly 
concerned about the effects of global climate change and they are 
looking to Congress to lead this effort. Our challenge is not only 
bring forth new energy policy, but to do so in a way that solves more 
problems than it creates. That's why our amendment is so important. We 
need new energy sources and I think cellulosic biofuels may be part of 
the solution to get us there, but not at the expense of taking food out 
of our mouths or driving up the price of basic food products like milk 
and eggs because the price of feed is being passed along to the 
consumer.
    Mr. Chairman, I urge my colleagues to support the Bartlett-Woolsey 
amendment and ensure that development of biofuels is done a sensible 
way.
    Thank you and I yield back the balance of my time.

    Chairman Gordon. Is there further discussion on the 
amendment? Mr. Bartlett is recognized.
    Mr. Bartlett. Mr. Chairman, I have some prepared remarks 
that I would ask unanimous consent to submit for the record.
    Chairman Gordon. I am sure they are wonderful, and without 
objection.
    Mr. Bartlett. Thank you, sir.
    [The prepared statement of Mr. Bartlett follows:]
          Prepared Statement of Representative Roscoe Bartlett
    I appreciate the cooperation and collaboration from Chairman 
Lampson which he provided to me and my good friend, the gentlewoman 
from California, Ms. Woolsey, to ensure that as we move forward to 
enhance our nation's fuel supply with biofuels that we do so in an 
environmentally responsible and sustainable manner.
    Chairman Lampson and our colleagues on the Energy and Environment 
Subcommittee already approved an amendment by us.
    This is an amendment to our amendment. It complements the 
announcement made yesterday by U.S. Department of Energy Secretary 
Samuel W. Bodman that DOE will invest up to $375 million in three new 
Bioenergy Research Centers intended to accelerate basic as well as 
applied research in the development of cellulosic ethanol and other 
biofuels. These Centers aim to identify real steps toward practical 
solutions regarding to the challenge of producing renewable, carbon-
neutral energy.
    The amendment that has already been approved added environmental 
science to the list of disciplines that the Bioenergy Centers are 
authorized to pursue. It also established a goal of to ``facilitate the 
production of fuels in sustainable production systems that reduce 
greenhouse gas emissions.'' I'll discuss this goal in more detail a 
little later with my good friend, the gentleman from South Carolina, 
Mr. Inglis.
    The amendment also added the goal to develop cellulosic feedstocks 
that will not entail a food versus fuel trade-off and to efficiently 
utilize resources and promote environmental sustainability. It also 
added two new research and development programs. The first directs the 
Secretary of Energy in consultation with EPA to develop a research and 
development program to develop tools to do life cycle analysis of 
biofuel feedstocks and to evaluate the potential environmental impacts 
associated with increased feedstock production. The second directs the 
Secretary of Energy in consultation with the Secretary of Agriculture 
to establish a research and development program on small-scale 
production and processing of biofuels for on-farm use.
    Our family farmers own most of the land and assets in our country. 
They dedicate the largest proportion of land set aside to protect the 
environment in the Conservation Reserve Program and the Wetlands 
Reserve Program. However, more than half of them are losing money 
farming and must rely on other work for income. We really need to help 
our family farmers reduce their energy costs and provide them with 
opportunities to become energy producers.
    The amendment offered today by myself and Ms. Woolsey adds that the 
Secretary of Energy should consult with the Secretary of Agriculture in 
addition to the EPA to develop the tools for life cycle analysis of 
biofuel feedstocks. It adds study of the environmental impact on 
forests and the goal of ensuring the sustainability of forestlands. It 
also explicitly requires studies to consider the impact of biofuels on 
the food supply for humans and animals in addition to the impact on the 
environment.
    These changes clarify the intent of Congress that Federal 
Government studies of biofuels address the potential food versus fuel 
trade-offs. It also explicitly addresses the tendency for stove piping 
that can isolate expertise by and within Departments. Research under 
this bill should complement rather than duplicate ongoing Federal 
Government efforts. It is important that research authorized under this 
bill by the Department of Energy benefits from creating a synergy with 
ongoing biofuels research and development, field and environmental 
testing initiatives by the Department of Agriculture and the 
Environmental Protection Agency.
    I urge my colleagues to approve the Woolsey-Bartlett amendment.

    Chairman Gordon. If there is no further discussion, all 
those in favor of the amendment, say aye. Aye. Opposed, no. The 
ayes have it. The amendment is agreed to.
    The fifth amendment on the roster is offered by the 
gentleman from Indiana, Mr. Hill. Are you ready to proceed with 
your amendment?
    Mr. Hill. I am, Mr. Chairman.
    Chairman Gordon. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 2773, offered by Mr. Hill of 
Indiana.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    The gentleman is recognized for five minutes to explain his 
amendment.
    Mr. Hill. Thank you, Mr. Chairman.
    Mr. Chairman, it is imperative for our country to get off 
our dependency upon foreign oil. Corn-based ethanol is market 
ready, and can currently be produced at market competitive 
prices. This year, we are expected to hit seven billion gallons 
of ethanol produced in this country, of which almost all is 
corn-based ethanol. Scientists estimate that we can produce 14 
billion gallons of corn-based ethanol.
    Our economy usually uses approximately 200 billion gallons 
of fuel a year. Corn is vitally important to other sources of 
food, having effects on the price of milk, beef, pork, and a 
variety of other products. It is also possible to produce 
ethanol from a variety of feedstocks, such as corn stalks, 
switchgrass, wood chips, and other forms of biomass.
    While corn-based ethanol is market proven, cellulosic 
ethanol has not yet reached a technological point where it is 
cost competitive. However, scientists predict that we can get 
there, and I want to make sure that we have the technology to 
help in this transition. We must prepare for the future, where 
ethanol can be produced from a variety of feedstocks.
    My amendment would propose a study to retrofit corn-based 
ethanol plants, allowing them to use a variety of biomass 
feedstocks. This study will help us prepare for the future, and 
help our companies with technologies and strategies to best 
maximize their current assets.
    I urge my colleagues to support this amendment.
    Mr. Chairman, departing from my prepared remarks, I would 
simply say that during the campaign last year, I made ethanol 
one of the cornerstones of energy independence. It is not the 
entire solution, but it is an important contributor to our 
getting off our dependency upon foreign oil.
    This amendment of mine is an amendment that will allow the 
study of cellulosic forms of ethanol production, which is 
sorely needed in this country. It is good for farmers. It is 
good for our environment, and it helps us get off our 
dependency upon foreign oil.
    And I urge my colleagues to support the amendment. Thank 
you.
    [The prepared statement of Mr. Hill follows:]
            Prepared Statement of Representative Baron Hill
    It's imperative for our country to get off of foreign oil.
    Corn-based ethanol is market ready, and can currently be produced 
at market competitive prices. This year, we are expected to hit seven 
billion gallons of ethanol produced in this country, of which almost 
all is corn-based ethanol.
    Scientists estimate that we can sustainably produce 14 billion 
gallons of corn-based ethanol.
    Our economy uses approximately 200 billion gallons of fuel a year.
    Corn also is vitally important to other sources of food, having 
effects on the price of milk, beef, pork, and a variety of products.
    It is also possible to produce ethanol from a variety of 
feedstocks, such as corn stocks, switch grass, wood chips, and other 
forms of biomass.
    While corn-based ethanol is market proven, cellulosic ethanol has 
not yet reached a technological point where it is cost competitive. 
However, scientists predict that we can get there, and I want to make 
sure that we have the technology to help this transition.
    Corn-based ethanol is a great bridge technology, but we must 
prepare for a future where ethanol can be produced from a variety of 
feed stocks.
    My amendment would propose a study to retrofit corn-based ethanol 
plants, allowing them to use a variety of biomass feedstocks.
    This study will help us prepare for the future, and help our 
companies with technologies and strategies to best maximize their 
current assets.
    I urge my colleagues to support.

    Chairman Gordon. Is there further discussion on this 
thoughtful amendment? If not, then the vote occurs on the 
amendment. All in favor, say aye. Aye. Opposed, no. The ayes 
have it. The amendment is agreed to.
    The sixth amendment on the roster is offered by the 
gentleman from Maryland, Mr. Bartlett. Are you ready to proceed 
with your amendment?
    Mr. Bartlett. I am. I have an amendment at the desk.
    Chairman Gordon. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 2773, offered by Mr. Bartlett 
of Maryland, amendment #011.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    The gentleman is recognized for five minutes to explain his 
amendment.
    Mr. Bartlett. The amendment I propose is a change to 
Section 4, which directs the Secretary of Energy to submit to 
Congress within 180 days, a report on any research and 
development challenges inherent in increasing the proportion of 
diesel sold in the U.S. to five percent biodiesel. This 
amendment very simply cuts that proportion in half to 2.5 
percent, so as not to present unrealistic expectations.
    It is important for the biofuels program enacted under this 
bill to be realistic, and to take account of the food versus 
tradeoff inherent with biodiesel. Constraints on the 
contributions of biodiesel were documented in a 2006 National 
Academy of Sciences study released on July 25, 2006. I want to 
share the most relevant excerpt from this report, and I quote: 
``Devoting all 2005 U.S. soybean production to biodiesel would 
have offset six percent of U.S. diesel demand. However, because 
of the fossil fuel energy required to produce biodiesel, this 
change would provide a net energy gain equivalent to just 2.9 
percent of U.S. diesel consumption. Reaching this maximal rate 
of biofuel supply from soybeans is unlikely, because this crop 
is a major contributor to human food supplies, through 
livestock feed and direct consumption.''
    There are, of course, other potential sources of biodiesel, 
but it is hard to imagine that they could be much larger than 
all of our soybeans. Two of the coauthors of this National 
Academy of Sciences report, David Tilman and Jason Hill, wrote 
an op-ed published by The Washington Post on March 25 of this 
year: ``Ethanol Hype: Corn Can't Solve Our Problem.'' They 
noted that if Americans kept their car engines tuned and 
maintained proper tire pressure, these changes would save more 
than the 2.4 percent net gasoline consumption if all 70 million 
acres of corn planted in the U.S. were devoted to ethanol 
production.
    Biofuels can make a small and important contribution to 
diversity in our liquid fuel supply, but we really need to 
avoid hype and giving Americans and our colleagues unrealistic 
expectations that biofuels can replace gasoline or diesel fuel 
in the foreseeable future, without significant, and at present, 
unidentified technological breakthroughs.
    I urge my colleagues to approve this amendment.
    [The prepared statement of Mr. Bartlett follows:]
          Prepared Statement of Representative Roscoe Bartlett
    The amendment I propose is a change to Section 4 which directs the 
Secretary of Energy to submit to the Congress within 180 days a report 
on any research and development challenges inherent in increasing the 
proportion of diesel sold in the U.S. to five percent biodiesel. This 
amendment very simply cuts that proportion in half to 2.5 percent so as 
not to present unrealistic expectations.
    It is important for the biofuels program enacted under this bill to 
be realistic and to take account of the food vs. fuel trade-off 
inherent with biodiesel. Constraints on the contributions of biodiesel 
were documented in a 2006 National Academies of Science study released 
on July 25, 2006: ``Environmental, economic, and energetic costs and 
benefits of biodiesel and ethanol biofuels,'' by a team of researchers 
from the University of Minnesota and St. Olaf College.
    I want to share the most relevant excerpt: Devoting all 2005 U.S. 
soybean production to biodiesel would have offset 6.0 percent of U.S. 
diesel demand. However, because of the fossil energy required to 
produce biodiesel, this change would provide a net energy gain 
equivalent to just 2.9 percent of U.S. diesel consumption. Reaching 
this maximal rate of biofuel supply from soybeans is unlikely because 
this crop is a major contributor to human food supplies through 
livestock feed and direct consumption.
    There are other potential sources of biodiesel that are not food 
crops. However, it's hard to imagine they could reach the amount of the 
entire soybean crop.
    Two of the co-authors of this NAS report, David Tilman and Jason 
Hill, wrote an op-ed published by The Washington Post on March 25, 
2007, Ethanol Hype, Corn Can't Solve Our Problem. They noted that if 
Americans kept their car engines tuned-up and maintained proper tire 
air pressure, these changes would save more than the 2.4 percent net 
gasoline consumption if all 70 million acres of corn planted in the 
U.S. was devoted to ethanol production.
    Biofuels can make a small and important contribution to diversity 
in our liquid fuel supply, but we really need to avoid hype and giving 
Americans and our colleagues unrealistic expectations that biofuels 
could replace gasoline or diesel fuel in the foreseeable future without 
significant and at present unidentified technological breakthroughs.
    I urge my colleagues to approve this amendment.

    Chairman Gordon. Is there further discussion of the 
amendment? If no, the vote occurs on the amendment. All in 
favor, say aye. Those opposed, no. The ayes have it. The 
amendment is agreed to.
    The seventh amendment on the roster is offered by the 
gentleman from Texas, Mr. Lampson. Are you ready to proceed 
with your amendment?
    Mr. Lampson. We have an amendment at the desk, Mr. 
Chairman.
    Chairman Gordon. The Clerk will report the amendment.
    The Clerk. Amendment to H.R. 2773, offered by Mr. Lampson 
of Texas.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    The gentleman is recognized for five minutes to explain his 
amendment.
    Mr. Lampson. Did I have the correct one here, Mr. Chairman?
    Chairman Gordon. This would be #010, I believe.
    The Clerk. 12.
    Chairman Gordon. Is it?
    The Clerk. I have in front of me 012.
    Chairman Gordon. Well, let us be sure we are all 
consistent, then. Oh, okay.
    Mr. Lampson. Okay. Mr. Chairman.
    Chairman Gordon. Oh, pardon me, yes. I see.
    Mr. Lampson. I will proceed with my comments.
    On this committee, we are very familiar with the important 
role that standards play in commerce. Establishing standards 
ensures that a product sold anywhere and by any firm meets the 
expectation of the customer. Making sure that a Coke is a Coke. 
Biofuels are no exception. We need standards to ensure the 
quality and performance of these fuels, if they are to enter 
the mainstream of commerce and transportation fuels.
    My amendment adds a new section to the study in Section 4 
of the bill, requiring the Director of the National Institute 
of Standards and Technology to make physical property data and 
information necessary to characterize biodiesel publicly 
available. The information will encourage the establishment of 
standards for these fuels.
    And I urge support for this amendment, and yield back the 
balance of my time.
    Chairman Gordon. Is there further discussion on the 
amendment? The gentleman from Florida is recognized for five 
minutes.
    Mr. Diaz-Balart. Thank you, Mr. Chairman, and I don't know 
if this is for the gentleman or for Counsel, but what does 
``publicly available,'' mean. If you look at the amendment, 
there is a part that makes ``publicly available the physical 
property data and characterization of biodiesel.'' 
Specifically, what information would be provided as physical 
property data, and also characterization?
    I am concerned, because can any of this stuff be considered 
proprietary or confidential business information? If not, why 
not, and obviously, we understand where the sponsor is going. 
We just need to make sure that we clearly are not opening up to 
making some proprietary information public that shouldn't be 
made public. So, why is it not, and could any of it be 
proprietary?
    Mr. Lampson. Mr. Diaz-Balart, it would be physical property 
data. It is not going to get into the information of the 
operation of that business. It is going to be specific to this. 
And it is the same language provided within, in other places in 
the law pertaining to the National Institute of Standards and 
Technology, and all that is defined within other legislation.
    Mr. Diaz-Balart. And if I can, Mr. Chairman, so it doesn't 
go into proprietary, it would not include proprietary data at 
all? Is that the intent?
    Mr. Lampson. It does not impact proprietary, no.
    Mr. Diaz-Balart. All right. Thank you, Mr. Chairman.
    Chairman Gordon. Thank you for that clarification.
    Is there further discussion on the amendment? If no, the 
vote occurs on the amendment. All in favor, say aye. Aye. 
Opposed, no. The ayes have it. The amendment is agreed to.
    The ninth amendment on the roster is offered by the 
gentleman from Nebraska, Mr. Smith. He was here earlier. There 
he is. Okay. Are you ready to proceed with your amendment?
    Mr. Smith of Nebraska. I do have an amendment on the desk.
    Chairman Gordon. The Clerk will report the amendment.
    The Clerk. Amendment #010. Amendment to H.R. 2773, offered 
by Mr. Smith of Nebraska and Mr. Lampson of Texas.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    The gentleman is recognized for five minutes to explain his 
amendment.
    Mr. Smith of Nebraska. Thank you, Mr. Chairman, and 
Members.
    This amendment would require the Secretary of Energy to 
submit to the Committee on Science and Technology a report on 
the progress of the research and development that is being 
conducted on the use of algae as a feedstock for the production 
of biofuels.
    The report shall also include any regulatory or other 
barriers found by the Secretary that hinder the economic 
development of this resource, as well as a recommendation on 
how to encourage and further its development as a viable 
transportation fuel.
    Biomass can be efficiently converted to biodiesel and used 
for many types of internal combustion engines, and algae 
production rates can be more than five times those of land 
plants. Furthermore, algae can be grown in many types of marine 
environments, including coastal lakes and ponds, and it is also 
possible to combine algae production with electric power 
generation, and use the carbon dioxide waste to fuel algae 
production.
    Mr. Chairman, this nation is confronted with the reality 
that prices for motor fuel continue to rise, due to the 
volatility of the price of foreign supplies of crude oil. 
Therefore, we must explore any and all viable forms of research 
and development in the area of marine renewable energy, whether 
it is for the production of electricity or motor fuels. This is 
consistent with our goal of energy independence.
    And I yield back.
    [The prepared statement of Mr. Smith follows:]
           Prepared Statement of Representative Adrian Smith
Mr. Chairman and Members of the Committee,

    This amendment would require the Secretary of Energy to submit to 
the Committee on Science and Technology a report on the progress of the 
research and development that is being conducted on the use of algae as 
a feedstock for the production of biofuels. The report shall also 
include any regulatory or other barriers found by the Secretary that 
hinder the economic development of this resource as well as a 
recommendation on how to encourage and further its development as a 
viable transportation fuel.
    Biomass can be efficiently converted to biodiesel and used for many 
types of internal combustion engines, and algae production rates can be 
more than five times those of land plants. Furthermore, algae can be 
grown in many types of marine environments, including coastal lakes and 
ponds, and it is also possible to combine algal production with 
electric power generation and use the carbon dioxide waste to fuel 
algal production.
    Mr. Chairman, this nation is confronted with the reality that 
prices for motor fuel continue to rise due to the volatility of the 
price of foreign supplies of crude oil. Therefore we must explore any 
and all viable forms of research and development in the area of marine 
renewable energy, whether it is for the production of electricity or 
motor fuels. This is consistent with our goal of energy independence.

    Chairman Gordon. Is there further discussion on this good 
amendment?
    Mr. Lampson. Mr. Chairman, may I just make a simple 
comment, that I concur in the remarks that have been made, and 
certainly support this. And appreciate support for them, and 
thank you, Mr. Smith.
    Chairman Gordon. Thank you, and Mr. Bartlett is recognized.
    Mr. Bartlett. Mr. Chairman, I have a personal anecdote 
relative to the amount of energy we are likely to get from 
these algal masses. I have a farm pond that is too well 
fertilized, and every year at this time, it looks like you 
could walk on it, it has so much algae on it.
    This spring, I put a pair of swans on the pond, and 
apparently, they ate it all. There isn't any there. So, that is 
an indication of how much energy there might be in these. But 
it is clearly a potential source of energy, and we need to 
exploit all of them. So, we have----
    Mr. Lampson. Mr. Bartlett, would you yield?
    Mr. Bartlett. Can we say we have hyper swans now, is that--
it is all gone. I don't know if they ate it or not, but there 
is none there this year.
    Mr. Lampson. Well, if two swans can eat an acre of this 
stuff, it is my understanding that you can get several thousand 
gallons of oil off an acre of algae, so it is certainly worth 
research.
    Mr. Bartlett. It is a small pond, about a half an acre 
pond.
    Chairman Gordon. Does anyone else wish to be recognized? 
Again, I thank the gentlemen for, these were good, thoughtful 
amendments that are making us have a better bill here.
    So, if not, then, the vote occurs on the amendment. All in 
favor, say aye. Aye. Opposed, no. The ayes have it. The 
amendment is agreed to.
    The tenth amendment, and what I think is the last amendment 
on this bill, is offered also by the gentleman from Nebraska, 
Mr. Smith. Are you ready to proceed?
    Mr. Smith of Nebraska. Yes. I have an amendment on the 
desk.
    Chairman Gordon. The Clerk will report the amendment.
    The Clerk. Amendment #014, amendment to H.R. 2773, offered 
by Mr. Smith of Nebraska.
    Chairman Gordon. I ask unanimous consent to dispense with 
the reading. Without objection, so ordered.
    The gentleman is recognized for five minutes to explain his 
amendment.
    Mr. Smith of Nebraska. Thank you, Mr. Chairman and Members.
    Coming from Nebraska, a state that is actually third in the 
Nation, in terms of ethanol, current ethanol production, and 
largely, corn-based ethanol production, we have heard a variety 
of comments here today from both sides about the efficacy or 
efficiency of corn-based ethanol and energy policy in general.
    My concerns about the current language, and the reason I am 
offering this amendment, to open it up to all states, is so 
that we don't inadvertently, I believe, and I appreciate the 
objectives of the current wording. However, excuse me, the 
unintended consequences, I think, could actually produce 
results that we would regret, and that is basically an 
anticompetitive environment. We would more than likely be 
creating a false market by encouraging states that, perhaps, 
don't have the expertise already, and basically, establishing 
an effective on the current expertise that is out there.
    Do we want to have states with corn-based ethanol only move 
forward with corn-based ethanol? We have heard about the 
challenges facing the livestock industry, and I think that we 
would serve ourselves very well to open up the research to all 
states, not just those with low production of ethanol, but put 
everything on the table. I think that when we look at energy 
policy and incentives, too many times, we create too many 
obstacles, and we need to open that up.
    And that is why I would like to have a favorable vote on 
this amendment, so that we can open it up to all states, 
regardless of where they rank nationally in ethanol production.
    Thank you, Mr. Chairman.
    [The prepared statement of Mr. Smith follows:]
           Prepared Statement of Representative Adrian Smith
Mr. Chairman and Members of the Committee,

    This amendment would provide grants to eligible entities for 
research, development, demonstration, and commercial application of 
biofuel production technologies with the greatest potential to increase 
the production of cellulosic biomass ethanol. The eligible entities 
include institutions of higher education and consortia; including at 
least one institution of higher education; industry, State agencies, 
Indian tribal agencies, or local government agencies.
    Nebraska, my home State, ranks third nationally in ethanol 
production--and is the largest ethanol producer west of the Missouri 
River. Incentives and investment at the State, local, and private 
levels have helped spur Nebraska's ethanol production.
    H.R. 2773, as currently written, would leave states with high rates 
of ethanol production ineligible to receive research and development 
grants for biofuels production technologies. States with strong ethanol 
production from corn should still be able to participate; as they have 
expertise and experience in producing ethanol; and make a positive 
contribution to the production of cellulosic biomass ethanol.
    Mr. Chairman, at a time when gas prices are high and home-grown 
alternative energy options are increasingly attractive, we should not 
exclude any entity from participating in an initiative aimed at 
lessening our nation's reliance on foreign oil.

    Chairman Gordon. Is there further discussion on the 
amendment?
    Mr. Lampson. Mr. Chairman.
    Chairman Gordon. Mr. Lampson is recognized for five 
minutes.
    Mr. Lampson. Just like we shouldn't be dependent on a 
handful of countries for our oil, we shouldn't depend on only a 
handful of states' ability to produce corn to supply the Nation 
with fuel.
    The corn-based ethanol industry benefits from a wide range 
of subsidies, tariff protections, and loan guarantees, 
including a 51 percent tax credit for ethanol blended with 
gasoline, and there are numerous ethanol research grant 
programs already, some of which will benefit from the increased 
authorization levels in this bill. The bill also includes a 
provision to provide grants in states that have low levels of 
ethanol production, to spur the development of ethanol from 
cellulosic materials. And the funding level in the bill for 
these is only $25 million.
    This amendment would open up this new grant program, 
intended for the states with low biofuels production, to all 
states. Essentially, this amendment defeats the purpose of the 
provision with the existing programs that are already 
benefiting states that produce large amounts of biofuels. The 
provision in the bill attempts to bring these others along.
    I would oppose this amendment, Mr. Chairman.
    Chairman Gordon. Is there further discussion?
    Mr. Hall. Mr. Chairman.
    Chairman Gordon. Mr. Hall is recognized.
    Mr. Hall. I have been advised by my staff that this is a 
well thought out amendment, and a good amendment. I urge you to 
support it. Yield back my time.
    Chairman Gordon. Is there further discussion?
    Ms. Biggert. Mr. Chairman. I am back.
    Chairman Gordon. She is back.
    Ms. Biggert. Thank you. I rise in support of this 
amendment.
    I think the purpose of this bill is really to increase the 
production of cellulosic biomass, and I think that we really 
should look at all states that have the potential to increase 
the production. If it limits us to where there is low 
production, because there also can be no biomass, so I think we 
should put our emphasis where there is the potential for 
production.
    I can think of a couple states that we probably don't find 
very much of the feedstock that we could use. I won't mention 
the states, but maybe in the West in some places, we don't see 
much grass. And I think this is something that we should try 
and find, exclude those that really have the potential.
    I yield back.
    Chairman Gordon. Is there further discussion on the 
amendment? If not, the vote occurs on the amendment. All in 
favor, say aye. Opposed, no. No. It appears that the nos have 
it.
    Mr. Smith of Nebraska. Mr. Chairman, I request a recorded 
vote.
    Chairman Gordon. The Clerk will call the roll.
    The Clerk. Chairman Gordon.
    Chairman Gordon. No.
    The Clerk. Chairman Gordon votes no. Mr. Costello.
    [No response.]
    The Clerk. Ms. Johnson.
    Ms. Johnson. No.
    The Clerk. Ms. Johnson votes no. Ms. Woolsey.
    Ms. Woolsey. No.
    The Clerk. Ms. Woolsey votes no. Mr. Udall.
    [No response.]
    The Clerk. Mr. Wu.
    Mr. Wu. Mr. Wu votes no. Mr. Baird.
    [No response.]
    The Clerk. Mr. Miller.
    Mr. Miller. No.
    The Clerk. Mr. Miller votes no. Mr. Lipinski.
    Mr. Lipinski. No.
    The Clerk. Mr. Lipinski votes no. Mr. Lampson.
    Mr. Lampson. No.
    The Clerk. Mr. Lampson votes no. Ms. Giffords.
    Ms. Giffords. No.
    The Clerk. Ms. Giffords votes no. Mr. McNerney.
    Mr. McNerney. No.
    The Clerk. Mr. McNerney votes no. Mr. Kanjorski.
    [No response.]
    The Clerk. Ms. Hooley.
    [No response.]
    The Clerk. Mr. Rothman.
    Mr. Rothman. No.
    The Clerk. Mr. Rothman votes no. Mr. Honda.
    Mr. Honda. No.
    The Clerk. Mr. Honda votes no. Mr. Matheson.
    Mr. Matheson. No.
    The Clerk. Mr. Matheson votes no. Mr. Ross.
    Mr. Ross. No.
    The Clerk. Mr. Ross votes no. Mr. Chandler.
    Ms. Chandler. No.
    The Clerk. Mr. Chandler votes no. Mr. Carnahan.
    Mr. Carnahan. No.
    The Clerk. Mr. Carnahan votes no. Mr. Melancon.
    Mr. Melancon. No.
    The Clerk. Mr. Melancon votes no. Mr. Hill.
    [No response.]
    The Clerk. Mr. Mitchell.
    [No response.]
    The Clerk. Mr. Wilson.
    Mr. Wilson. No.
    The Clerk. Mr. Wilson votes no. Mr. Hall.
    Mr. Hall. Yes.
    The Clerk. Mr. Hall votes aye. Mr. Sensenbrenner.
    [No response.]
    The Clerk. Mr. Lamar Smith.
    [No response.]
    The Clerk. Mr. Rohrabacher.
    [No response.]
    The Clerk. Mr. Bartlett.
    Mr. Bartlett. Aye.
    The Clerk. Mr. Bartlett votes aye. Mr. Ehlers.
    Mr. Ehlers. Aye.
    The Clerk. Mr. Ehlers votes aye. Mr. Lucas.
    Mr. Lucas. Aye.
    The Clerk. Mr. Lucas votes aye. Mrs. Biggert.
    Ms. Biggert. Aye.
    The Clerk. Mrs. Biggert votes aye. Mr. Akin.
    [No response.]
    The Clerk. Mr. Bonner.
    [No response.]
    The Clerk. Mr. Feeney.
    [No response.]
    The Clerk. Mr. Neugebauer.
    [No response.]
    The Clerk. Mr. Inglis.
    Mr. Inglis. Aye.
    The Clerk. Mr. Inglis votes aye. Mr. Reichert.
    Mr. Reichert. Aye.
    The Clerk. Mr. Reichert votes aye. Mr. McCaul.
    Mr. McCaul. Aye.
    The Clerk. Mr. McCaul votes aye. Mr. Diaz-Balart.
    Mr. Diaz-Balart. Aye.
    The Clerk. Mr. Diaz-Balart votes aye. Mr. Gingrey.
    [No response.]
    The Clerk. Mr. Bilbray.
    [No response.]
    The Clerk. Mr. Adrian Smith.
    Mr. Smith of Nebraska. Aye.
    The Clerk. Mr. Adrian Smith votes aye. Mr. Rohrabacher is 
not recorded.
    Mr. Rohrabacher. Aye.
    The Clerk. Mr. Rohrabacher votes aye.
    Chairman Gordon. Are there other Members that have not cast 
a vote? If not, then the Clerk will report.
    The Clerk. Mr. Chairman, 11 Members vote aye, 17 vote no.
    Chairman Gordon. The amendment is not agreed to.
    
    
    Chairman Gordon. Are there other amendments? If not, then 
the vote is on the bill, H.R. 2773, as amended. All those in 
favor will say aye. Aye. All opposed, no. In the opinion of the 
Chair, the ayes have it.
    I recognize Mr. Hall to offer a motion. Unless he prefers 
not to.
    Mr. Hall. Mr. Chairman, I move that the Committee favorably 
report H.R. 2773, as amended, to the House, with the 
recommendation that the bill do pass. Furthermore, I move that 
the staff be instructed to prepare the legislative report, and 
make necessary technical and conforming changes, and that the 
Chairman take all necessary steps to bring the bill before the 
House for consideration.
    Yield back.
    Chairman Gordon. The question is on the motion to report 
the bill favorably. Those in favor of the motion will signify 
by saying aye. Aye. Opposed, no. The ayes have it. The bill is 
favorably reported.
    Without objection, the motion to reconsider is laid upon 
the table. Members will have two subsequent calendar days in 
which to submit supplemental, Minority, or additional views on 
the measure, ending Monday, January the 2nd, at 9:00 a.m.
    I move, pursuant to Clause 1, Rule 22 of the Rules of the 
House of Representatives, that the Committee authorize the 
Chairman to offer such motions as may be necessary in the House 
to adopt and pass H.R. 2773, the Biofuels Research and 
Development Enhancement Act, as amended. Without objection, so 
ordered.
    I thank all of you, the hard core that are still here. We 
had a good day. Four more bills of a dozen that will go into a 
good Energy Bill next month, and again, a bipartisan, everybody 
go home and take credit. Thank you.
    [Whereupon, at 1:10 p.m., the Committee was adjourned.]
                               Appendix:

                              ----------                              


  Subcommittee on Energy and Environment Markup Report, H.R. 2773 as 
                       reported, Amendment Roster




                  COMMITTEE ON SCIENCE AND TECHNOLOGY

                 SUBCOMMITTEE ON ENERGY AND ENVIRONMENT

                    REPORT FROM SUBCOMMITTEE MARKUP

                             JUNE 21, 2007

                  H.R. 2773, the Biofuels Research and
                      Development Enhancement Act

I. Purpose

    The purpose of this bill is to enhance ongoing research in areas 
related to biofuels and promote a greater degree of coordination of 
research materials related to biofuels.

II. Background and Need for Legislation

    High gasoline prices, a desire to reduce our dependence on foreign 
sources of energy, and concerns over climate change have greatly 
increased interest in bio-based fuels as an alternative to petroleum 
for transportation fuel. Over the last several years, in part as a 
result of the Renewable Fuel Standard included in the Energy Policy Act 
of 2005, the use of biofuels--most notably corn-based ethanol--has 
grown significantly. Ethanol is most commonly blended with gasoline at 
a level of 10 percent or less. And, this still only represents a small 
portion (less than five percent) of the total gasoline sold.
    Recent proposals in Congress and by the Administration have called 
for significant increases in the use of biofuels over the next ten 
years. Currently biofuel supply relies almost exclusively on corn-based 
ethanol. Concerns have been raised about further expansion of corn-
based ethanol to meet the targets set for biofuel production. 
Competition with food and feed supply, water and nutrient demand 
associated with corn production, and continued questions about the 
energy balance of corn-based ethanol production all suggest that 
biomass sources for biofuel production must be diversified.
    The majority of this focus to diversify the feedstocks has been on 
cellulosic materials including grasses, wood, and waste materials. 
However, current technologies for the development of fuel from these 
sources continue to be expensive and not cost-competitive with corn-
based ethanol. If we are going to move toward broader use of biofuels, 
technology will be necessary to create reasonably priced fuels from 
cellulosic materials.
    The Agricultural Risk Protection Act of 2000 (Title III), the Farm 
Security and Rural Investment Act of 2002, and the Energy Policy Act of 
2005 created bioenergy research and development programs to focus 
federal research funding on the development of biofuels derived from 
cellulosic materials. This research is ongoing and operates under a 
Memorandum of Understanding between the Department of Energy and the 
Department of Agriculture.
    Though these efforts present a reasonable starting point, an 
enhanced federal commitment will be needed. To realize this needed 
improvement in technology, we must increase our investment in research 
and development, focus our research on the most promising technologies, 
and ensure that the latest research information is readily available 
for those looking to either expand their biofuels production or embark 
upon the development of new facilities.

III. Subcommittee Actions

    H.R. 2773 was introduced by Subcommittee Chairman Lampson on June 
19, 2007, and referred to the House Committee on Science and 
Technology, Subcommittee on Energy and Environment.
    The Subcommittee on Energy and Environment held a hearing on June 
14, 2007 entitled A Path Toward the Broader Use of Biofuels: Enhancing 
the Federal Commitment to Research and Development to Meet the Growing 
Need. The purpose of this hearing was to examine the federal efforts on 
research, development and demonstration of technologies related to the 
production of biofuels, the development of biorefineries and 
demonstrations of those technologies. The hearing further focused on 
legislative proposals to restructure and enhance the biofuels research 
and development programs of the Department of Energy and the Department 
of Agriculture under consideration in the House and Senate, including 
an evaluation of a ``Discussion Draft'' version of H.R. 2773. At the 
hearing, the Subcommittee received testimony from the following 
witnesses:

          Mr. Robert Dinneen, President, Renewable Fuels 
        Association. RFA is a national trade association for the 
        domestic ethanol industry. RFA's membership includes a broad 
        cross-section of businesses, individuals and organizations 
        dedicated to the expansion of the U.S. fuel ethanol industry.

          Dr. Thomas Foust, Biofuels Research Director, 
        National Renewable Energy Laboratory. The National Renewable 
        Energy Laboratory is the Nation's primary laboratory for 
        renewable energy research and development. The Biomass Program 
        supports NREL R&D focused on biomass characterization, 
        thermochemical and biochemical biomass conversion technologies, 
        bio-based products development, and biomass process engineering 
        and analysis.

          Mr. John Berger, Chairman and CEO, Standard Renewable 
        Energy and CEO, BioSelect. Standard Renewable Energy is a 
        leader in renewable energy, serving commercial and residential 
        customers with clean, renewable energy and energy efficiency 
        technologies. BioSelect, a division of Standard Renewable 
        Energy, is a developer and operator of biodiesel production 
        facilities.

          Mr. David Waskow, Policy Analyst, Friends of the 
        Earth, U.S. Friends of the Earth, U.S. is part of a network of 
        international groups in 70 countries. David Waskow is an 
        international policy analyst and works on the environment, 
        trade policy, and corporate accountability.

          Mr. Michael J. McAdams, Executive Director, Advanced 
        Biofuels Coalition. The Advanced Biofuels Coalition is a 
        collection of companies who utilize advanced technologies or 
        provide renewable-based feedstocks to produce renewable fuels--
        both biodiesel and gasoline compatible components.

    The Subcommittee on Energy and Environment met to consider H.R. 
2773 on June 21, 2007. The Subcommittee considered and adopted the 
following amendments by voice vote:

        1.  A manager's amendment offered by Chairman Lampson, makes 
        several technical changes; clarifies that the Technology 
        Transfer Center, not the Secretary of Energy, will carry out 
        the tasks of the Center; recognizing that the Department of 
        Transportation regulates pipelines, the amendment ensures that 
        the Secretary of Energy will consult with the Department of 
        Transportation as it engages in the infrastructure research and 
        development program created in section 3 of the bill; removes a 
        few unnecessary focus areas for the infrastructure research 
        program created in section 3 and provide the Secretary with the 
        ability to look other areas deemed appropriate; inserts a more 
        appropriate definition of biodiesel for the purpose of the 
        study in section 4; and reduces the number of Bioresearch 
        Centers authorized in the bill from 11 to five.

        2.  An amendment offered by Ms. Woolsey and Mr. Bartlett, 
        amends section 977 of the Energy Policy Act of 2005 to add 
        environmental science to the list of disciplines that the 
        Bioenergy Centers created in the Act may pursue; indicates the 
        goal of producing biofuels should be pursued in a manner that 
        ensures the cropping systems will be sustainable and the 
        feedstock production and processing will result in lower 
        greenhouse gas emissions; adds a new goal for the research 
        conducted by the Centers to develop cellulosic feedstocks that 
        efficiently utilize resources and promote environmental 
        sustainability; adds a research and development program in 
        consultation with EPA to develop tools to do life cycle 
        analysis of biofuel feedstocks and to evaluate the potential 
        environmental impacts associated with increased feedstock 
        production; and adds a research and development program in 
        consultation with the Secretary of Agriculture for small-scale 
        production and processing of biofuels for on-farm use.

    Rep. Woolsey moved that the Subcommittee favorably report the bill 
H.R. 2773, as amended, to the Full Committee. A quorum was noted and 
the motion was agreed to by voice vote.

IV. Summary of Major Provisions

    H.R. 2773 will enhance, focus, and better coordinate federal 
biofuels research efforts, and it authorizes several studies that will 
provide necessary information back to the Committee that will allow the 
Committee to make additional research commitments in the future. More 
specifically, the bill attempts to better coordinate and compile 
information from federal biofuels research programs, focus some of the 
biofuels research on infrastructure needs and efficiency of 
biorefineries, study some of the continuing challenges facing broader 
use of biofuels, and increase the funding levels for Department of 
Energy biofuels research.

V.  Section-by-Section Analysis of the bill as reported by the 
                    Subcommittee

Section 2. Biofuels and Biorefinery Information Center--Directs the 
Secretary of Energy, in cooperation with the Secretary of Agriculture, 
to establish a Technology Transfer center to serve as a clearinghouse 
of information related to the research, development, and commercial 
applications of technologies related to biofuels and biorefinery 
technologies. This section will help make readily available to 
interested parties the latest information on methods for biofuels 
development to help support the rapid growth and deployment of 
biofuels.

Section 3. Biofuels and Advanced Biofuels Infrastructure--Recognizing 
the inherent problems with transporting and storing biofuels in the 
existing petroleum fuels infrastructure, in consultation with the 
Secretary of Transportation, this section establishes a program of 
research, development, and demonstration for modifications and 
treatments to existing infrastructure and development of new 
infrastructure.

Section 4. Biodiesel--The Secretary is directed to submit a report to 
Congress on any research and development challenges in increasing to 
five percent the amount of biodiesel, as compared to the current level, 
the amount of all diesels sold nationally.

Section 5. Bioresearch Centers for Systems Biology Program--The 
Bioresearch Center program created in the Energy Policy Act of 2005 is 
amended to establish at least five regionally located centers.

Section 6. Grants for Biofuels Production Research and Development in 
Certain States--Establishes a research and development grant program in 
states with low rates of ethanol production, as is determined by the 
Secretary of Energy.

Section 7. Biorefinery Energy Efficiency--Adds a new subsection the 
Section 932 of the Energy Policy Act of 2005 (Bioenergy Program) to 
establish a program of research, development, demonstration and 
commercial application of technologies to increase the energy 
efficiency and reduce the energy consumption of biorefinery facilities.

Section 8. Study of Increase Consumption of Ethanol-Blended Gasoline 
with Higher Levels--Directs the Secretary of Energy to conduct a study, 
in cooperation with the Secretaries of Agriculture and Transportation 
and EPA, on the feasibility of increasing the consumption of ethanol-
blended gasoline at blend levels between 10 and 40 percent.

Section 9. Study of Optimization of Flexible Fueled Vehicles to use E-
85--Directs the Secretary of Energy to conduct a study to determine if 
optimizing flexible fuel vehicles to operate using E-85 would increase 
the fuel efficiency while using E-85.

Section 10. Study of Engine Durability Associated with the Use of 
Biodiesel--Directs the Secretary of Energy to conduct a study on the 
effects of the use of biodiesel, at varying blend levels, on engine 
durability.

Section 11. Authorization for Appropriation--This section makes the 
following authorizing changes:

          Extends the authorization of Section 931 (Renewable 
        Energy) Energy Policy Act of 2005 through 2010 (currently 
        expires in 2009) and funds the programs at $963 million.

          Increases the authorization levels for Section 932 
        (Bioenergy Programs) of the Energy Policy Act of 2005 to:

                   FY08--$377 million

                   FY09--$398 million

                   FY10--$419 million

Section 12. Environmental Research and Development--Amends section 977 
of the Energy Policy Act of 2005 to add environmental science to the 
list of disciplines that the Bioenergy Centers created in the Act may 
pursue; indicates the goal of producing biofuels should be pursued in a 
manner that ensures the cropping systems will be sustainable and the 
feedstock production and processing will result in lower greenhouse gas 
emissions; adds a new goal for the research conducted by the Centers to 
develop cellulosic feedstocks that efficiently utilize resources and 
promote environmental sustainability; adds a research and development 
program in consultation with EPA to develop tools to do life-cycle 
analysis of biofuel feedstocks and to evaluate the potential 
environmental impacts associated with increased feedstock production; 
and adds a research and development program in consultation with the 
Secretary of Agriculture for small-scale production and processing of 
biofuels for on-farm use.