House File 509 - Introduced



                               HOUSE FILE       
                               BY  DANDEKAR, D. OLSON, THOMAS,
                                   SHOMSHOR, REASONER, WENDT,
                                   GAYMAN, T. OLSON, STAED, DAVITT,
                                   FREVERT, JOCHUM, MASCHER,
                                   LENSING, WESSEL=KROESCHELL, MERTZ,
                                   HUSER, REICHERT, WENTHE, MURPHY,
                                   COHOON, GASKILL, WHITAKER, QUIRK,
                                   KELLEY, KRESSIG, T. TAYLOR, BELL,
                                   and ABDUL=SAMAD


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for agricultural and industrial development,
  2    including by providing for research into initiatives relating
  3    to biofuels, and making appropriations.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1648YH 82
  6 da/je/5

PAG LIN



  1  1                           DIVISION I
  1  2                       BIOFUEL DEVELOPMENT
  1  3                             PART B
  1  4          BIOMASS RESEARCH AND DEVELOPMENT INITIATIVES
  1  5    Section 1.  NEW SECTION.  15G.211  SPECIAL DEFINITIONS.
  1  6    As used in this part, unless the context otherwise
  1  7 requires:
  1  8    1.  "Biofuel" means the same as defined in section 214A.1.
  1  9    2.  "Biomass" means organic material that is available on a
  1 10 renewable or recurring basis, including but not limited to
  1 11 crops; plants, including aquatic plants and grasses; residues;
  1 12 trees grown for energy production; wood waste and wood
  1 13 residues; fibers; animal wastes and other waste materials; and
  1 14 fats, oils, and greases including recycled fats, oils, and
  1 15 greases.
  1 16    3.  "Biorefinery" means equipment and processes that
  1 17 convert biomass into renewable fuel and coproducts.
  1 18    4.  "Coproduct" means the same as defined in section
  1 19 159A.2.
  1 20    5.  "Crop" means the same as defined in section 717A.1.
  1 21    6.  "Renewable fuel" means the same as defined in section
  1 22 214A.1.
  1 23    Sec. 2.  NEW SECTION.  15G.212  DEPARTMENT AUTHORIZED TO
  1 24 PARTICIPATE IN FEDERAL BIOMASS RESEARCH AND DEVELOPMENT
  1 25 PROGRAMS.
  1 26    The department is authorized to cooperate with federal
  1 27 agencies and participate in federal programs including but not
  1 28 limited to programs under the federal Biomass Research and
  1 29 Development Act of 2000, 7 U.S.C. } 7624, et seq., in order to
  1 30 provide for the production of cost=competitive industrial
  1 31 products derived from biomass, including but not limited to
  1 32 biofuels, and associated agricultural or industrial coproducts
  1 33 which promise to provide environmentally benign product life
  1 34 cycles, promote rural economic development, and diversify
  1 35 energy resources.
  2  1    Sec. 3.  NEW SECTION.  15G.213  INNOVATION PROJECT FOR THE
  2  2 PROCESSING OF FEEDSTOCK INTO ETHANOL.
  2  3    An innovation project for the processing of feedstock into
  2  4 ethanol is created.
  2  5    1.  The innovation project shall be administered by the
  2  6 department as provided in this section.
  2  7    2.  The purpose of the innovation project is to develop and
  2  8 commercialize all of the following:
  2  9    a.  Technologies and methods necessary to cost=effectively
  2 10 manufacture ethanol and coproducts from feedstocks derived
  2 11 from all parts of a crop by a biorefinery.  The innovation
  2 12 project shall at least consider the use of corn cobs, leaves,
  2 13 and stover as feedstock.  The department may consider the best
  2 14 methods to reduce costs associated with the complete
  2 15 saccharification of cellulose and hemicellulose and to
  2 16 increase sugar yields derived from that process.
  2 17    b.  Specialized crop varieties or hybrids to be used as
  2 18 feedstocks, which maximize the energy and coproducts value of
  2 19 crops produced at the lowest possible cost, and reduce costs
  2 20 of processing the associated feedstocks into ethanol and
  2 21 coproducts by a biorefinery.
  2 22    c.  Equipment, including attachments to conventional
  2 23 equipment, used in crop production, including the simultaneous
  2 24 harvesting and separating of different crops, including grain
  2 25 leaves, cobs, and stover.
  2 26    3.  The innovation project shall develop methods and
  2 27 technologies used to increase ethanol production with the
  2 28 expansion of animal agriculture and its reliance upon
  2 29 unprocessed and processed crops and associated coproducts
  2 30 including distillers grain.
  2 31    4.  In administering the innovation project, the department
  2 32 shall consult with the renewable fuel infrastructure board
  2 33 established pursuant to section 15G.202, or a committee of the
  2 34 board as appointed by the board.
  2 35    5.  The innovation project shall be financed by state
  3  1 appropriations and contributions from other sources, including
  3  2 business associations, nonprofit organizations, or the federal
  3  3 government.  The department shall not finance an innovation
  3  4 project unless the department receives a matching contribution
  3  5 from another source.  The department may require that the
  3  6 contribution be a percentage of the financing in the form of
  3  7 money, services, material, or other in=kind contributions.
  3  8    6.  The department shall issue requests for proposals and
  3  9 select a qualified person to perform a research contract based
  3 10 on the scoring of those proposals, as required by the
  3 11 department.
  3 12    a.  The department shall execute a research contract with
  3 13 one or more of the following qualified persons selected to
  3 14 conduct the research:
  3 15    (1)  A department of an institution under the control of
  3 16 the state board of regents dedicated to researching increased
  3 17 ethanol production and the production of specialized crop
  3 18 varieties or hybrids to be used as feedstocks.  A community
  3 19 college or private university or college is not precluded from
  3 20 participation.
  3 21    (2)  Any person involved in researching increased ethanol
  3 22 production or the production of specialized crop varieties or
  3 23 hybrids, including a business association, cooperative
  3 24 association, or nonprofit organization.
  3 25    b.  A research contract may provide for conducting basic or
  3 26 applied research.
  3 27    c.  A research contract may provide for all of the
  3 28 following:
  3 29    (1)  The demonstration of technologies and methods
  3 30 necessary to cost=effectively manufacture and market ethanol
  3 31 and coproducts.  The research contract may provide for the
  3 32 construction or refurbishment and operation of a biorefinery
  3 33 including a pilot plant or small scale facility.
  3 34    (2)  Methods to identify the genetic characteristics of
  3 35 promising crops and to target novel gene traits or incorporate
  4  1 those traits into crops for use by a biorefinery.  A research
  4  2 contract may provide for trial production of specialized crop
  4  3 varieties or hybrids to be used as feedstocks by a
  4  4 biorefinery.
  4  5    Sec. 4.  NEW SECTION.  15G.214  INNOVATION PROJECT FOR THE
  4  6 SUSTAINABLE PRODUCTION OF CROPS USED AS AN ETHANOL FEEDSTOCK.
  4  7    An innovation project for the sustainable production of
  4  8 crops used as an ethanol feedstock is created.
  4  9    1.  The innovation project shall be administered by Iowa
  4 10 state university as provided in this section.
  4 11    2.  The purpose of the innovation project is to provide for
  4 12 the sustainable production of crops used as feedstocks for the
  4 13 production of ethanol and coproducts by biorefineries, by
  4 14 conserving Iowa's land and water resources.
  4 15    3.  In administering the innovation project, Iowa state
  4 16 university shall, to every extent feasible, do all of the
  4 17 following:
  4 18    a.  Cooperate with the department, business associations,
  4 19 nonprofit organizations, and the federal government.
  4 20    b.  Consult with the renewable fuel infrastructure board
  4 21 created pursuant to section 15G.202, or a committee of the
  4 22 board as appointed by the board; the Leopold center for
  4 23 sustainable agriculture created in section 266.39; the
  4 24 department of natural resources created in section 455A.2; and
  4 25 the soil conservation division of the department of
  4 26 agriculture and land stewardship established in section
  4 27 161A.4.
  4 28    4.  The innovation project shall provide for the
  4 29 sustainable production of crops used as feedstocks for the
  4 30 production of ethanol and coproducts and provide for the
  4 31 expansion of animal agriculture.
  4 32    5.  In administering the innovation project, Iowa state
  4 33 university may provide for conducting basic or applied
  4 34 research.  The university may do all of the following:
  4 35    a.  Develop specialized crop varieties or hybrids to be
  5  1 used as feedstocks and coproducts.  The university may provide
  5  2 for the trial production of specialized crop varieties or
  5  3 hybrids to be used as feedstocks and coproducts.
  5  4    b.  Develop equipment, including attachments to
  5  5 conventional equipment used in the production of crops to be
  5  6 used as feedstock for biorefineries, including the
  5  7 simultaneous harvesting and separating of corn leaves, cobs,
  5  8 and stover from grain.  The university may provide for the
  5  9 manufacture of prototype equipment used in the production of
  5 10 crops to be used as feedstocks.
  5 11    c.  Develop soil conservation or crop management practices
  5 12 designed for the production of crops to be used as feedstock
  5 13 for biorefineries, including crop production on highly
  5 14 erodible land or land in proximity to water sources, or
  5 15 designed for the management of fertilizers and soil
  5 16 conditioners and pesticides.  The university may provide for
  5 17 practices which account for nonstandard crop rotation cycles.
  5 18 The university may provide for projects which provide
  5 19 demonstrations of soil conservation or crop management
  5 20 practices.
  5 21    Sec. 5.  NEW SECTION.  15G.215  WORKFORCE PROJECT FOR
  5 22 BIOREFINERY INDUSTRY TRAINING.
  5 23    A workforce project for biorefinery industry training is
  5 24 created.
  5 25    1.  The workforce project shall be administered by the
  5 26 department as provided in this section.
  5 27    2.  The purpose of the workforce project is to train
  5 28 individuals to obtain full=time employment in the biorefinery
  5 29 industry, including but not limited to employment in fields
  5 30 related to the use of chemicals necessary to manufacture
  5 31 products, such as biofuels and coproducts, from feedstocks
  5 32 derived from grain or from all parts of a crop.  The
  5 33 department may provide for specialized training in ethanol
  5 34 production and biodiesel production.
  5 35    3.  In administering the innovation project, the department
  6  1 shall consult with the renewable fuel infrastructure board
  6  2 created pursuant to section 15G.202, or a committee of the
  6  3 board as appointed by the board.
  6  4    4.  The department shall issue requests for proposals and
  6  5 select a qualified person to perform a research contract based
  6  6 on the scoring of those proposals, as required by the
  6  7 department.  The contract shall be awarded to two community
  6  8 colleges demonstrating expertise in areas related to biofuel
  6  9 production.
  6 10    5.  A community college awarded a contract under this
  6 11 section may enter into an agreement with a biorefinery which
  6 12 is an eligible business pursuant to chapter 260E or 260F to
  6 13 provide program services as provided in those chapters.
  6 14    Sec. 6.  NEW SECTION.  15G.216  APPROPRIATIONS.
  6 15    For the fiscal period beginning July 1, 2007, and ending
  6 16 June 30, 2010, there is appropriated from the general fund of
  6 17 the state to the department of economic development, the
  6 18 following amounts, or so much thereof as is necessary, for the
  6 19 purposes designated:
  6 20    1.  For the innovation project for the processing of
  6 21 feedstock into ethanol as provided in section 15G.213, all of
  6 22 the following:
  6 23    a.  For the fiscal year beginning July 1, 2007, and ending
  6 24 June 30, 2008, fourteen million dollars.
  6 25    b.  For the fiscal year beginning July 1, 2008, and ending
  6 26 June 30, 2009, fourteen million dollars.
  6 27    c.  For the fiscal year beginning July 1, 2009, and ending
  6 28 June 30, 2010, fourteen million dollars.
  6 29    2.  For the innovation project for the sustainable
  6 30 production of crops used as an ethanol feedstock as provided
  6 31 in section 15G.214, all of the following:
  6 32    a.  For the fiscal year beginning July 1, 2007, and ending
  6 33 June 30, 2008, two million dollars.
  6 34    b.  For the fiscal year beginning July 1, 2008, and ending
  6 35 June 30, 2009, three million dollars.
  7  1    c.  For the fiscal year beginning July 1, 2009, and ending
  7  2 June 30, 2010, five million dollars.
  7  3    3.  For the workforce project for biorefinery industry
  7  4 training as provided in section 15G.215, all of the following:
  7  5    a.  For the fiscal year beginning July 1, 2007, and ending
  7  6 June 30, 2008, two million dollars.
  7  7    b.  For the fiscal year beginning July 1, 2008, and ending
  7  8 June 30, 2009, two million dollars.
  7  9    c.  For the fiscal year beginning July 1, 2009, and ending
  7 10 June 30, 2010, two million dollars.
  7 11    Sec. 7.  NEW SECTION.  15G.217  REPORT.
  7 12    1.  By January 15 of each year, the department in
  7 13 cooperation with Iowa state university shall submit a report
  7 14 regarding projects provided for in this part, including the
  7 15 expenditure of moneys appropriated pursuant to section
  7 16 15G.216, and the progress of projects supported by those
  7 17 appropriations.
  7 18    2.  The report required in this section shall be included
  7 19 as a part of that part of a report required to be submitted to
  7 20 the governor and general assembly by the department regarding
  7 21 projects supported from the grow Iowa values fund as provided
  7 22 in section 15.104.
  7 23    Sec. 8.  NEW SECTION.  15G.218  REPEAL.
  7 24    This Part B is repealed on July 1, 2011.
  7 25                           DIVISION II
  7 26                     RELATED APPROPRIATIONS
  7 27    Sec. 9.  CENTER FOR INDUSTRIAL RESEARCH AND SERVICE.  There
  7 28 is appropriated from the general fund of the state to Iowa
  7 29 state university for the fiscal year beginning July 1, 2007,
  7 30 and ending June 30, 2008, the following amount, or so much
  7 31 thereof as is necessary, to be used for the purposes
  7 32 designated:
  7 33    For purposes of supporting the center for industrial
  7 34 research and service, including salaries, support,
  7 35 maintenance, and miscellaneous purposes:
  8  1 .................................................. $    500,000
  8  2    Sec. 10.  LEAN MANUFACTURING INSTITUTE.  There is
  8  3 appropriated from the general fund of the state to the
  8  4 department of economic development for the fiscal year
  8  5 beginning July 1, 2007, and ending June 30, 2008, the
  8  6 following amount, or so much thereof as is necessary, to be
  8  7 used for the purposes designated:
  8  8    For purposes of establishing a lean manufacturing institute
  8  9 designed to provide executive level, in=depth training
  8 10 assistance to manufacturing entities in the state:
  8 11 .................................................. $    250,000
  8 12                           EXPLANATION
  8 13    DIVISION I == BIOFUEL DEVELOPMENT.  This bill amends Code
  8 14 chapter 15G, subchapter II, providing for renewable fuel
  8 15 infrastructure, by creating a new part regarding biomass
  8 16 research and development initiatives.  The initiatives are to
  8 17 be under the control of the department of economic development
  8 18 and Iowa state university.
  8 19    The bill authorizes the department to participate with
  8 20 federal agencies and participate in federal programs in order
  8 21 to provide for the production of cost=competitive industrial
  8 22 products derived from biomass, including but not limited to
  8 23 the production of biofuels and associated agricultural or
  8 24 industrial coproducts (see the federal Biomass Research and
  8 25 Development Act of 2000, 7 U.S.C. } 7624, et seq.).
  8 26    The bill creates an innovation project for the processing
  8 27 of feedstock into ethanol to be administered by the
  8 28 department.  The purpose of the innovation project is to
  8 29 develop and commercialize:  (1) technologies and methods
  8 30 necessary to cost=effectively manufacture ethanol and
  8 31 coproducts from feedstocks derived from all parts of a crop by
  8 32 a biorefinery, (2) specialized crop varieties or hybrids used
  8 33 as feedstocks, and (3) equipment used in crop production used
  8 34 to produce feedstocks used by biorefineries.  The innovation
  8 35 project must further methods and technologies used to increase
  9  1 ethanol production with the expansion of animal agriculture.
  9  2 The department is required to issue requests for proposals and
  9  3 execute a research contract with a qualified person selected
  9  4 to conduct the research.  The research contract may provide
  9  5 for basic or applied research, and may provide for
  9  6 demonstration projects.
  9  7    The bill creates an innovation project for the sustainable
  9  8 production of crops used as an ethanol feedstock to be
  9  9 administered by Iowa state university.  The purpose of the
  9 10 innovation project is to provide for the sustainable
  9 11 production of crops used as feedstocks for the production of
  9 12 ethanol and coproducts by biorefineries, and provide for the
  9 13 expansion of animal agriculture and its reliance upon
  9 14 unprocessed and processed crops.  The bill provides that Iowa
  9 15 state university may provide for basic or applied research.
  9 16 The university may develop specialized crop varieties or
  9 17 hybrids used as feedstocks and coproducts.  The university may
  9 18 provide for trial production and demonstration projects.
  9 19    The bill creates a workforce project for biorefinery
  9 20 industry training as administered by the department.  The
  9 21 purpose of the workforce project is to train individuals to
  9 22 obtain full=time employment in the biorefinery industry.  The
  9 23 department must issue requests for proposals and award a
  9 24 contract to two community colleges.
  9 25    The bill appropriates moneys from the general fund to
  9 26 support the projects for each fiscal year of the fiscal period
  9 27 beginning July 1, 2007, and ending June 30, 2010.
  9 28    The bill requires the department in cooperation with Iowa
  9 29 state university to submit a report regarding projects to the
  9 30 governor and the general assembly.
  9 31    DIVISION II == RELATED APPROPRIATIONS.  The bill
  9 32 appropriates moneys from the general fund of the state to Iowa
  9 33 state university for the fiscal year beginning July 1, 2007,
  9 34 and ending June 30, 2008, for purposes of supporting the
  9 35 center for industrial research and service.
 10  1    The bill appropriates moneys from the general fund of the
 10  2 state to the department of economic development for the fiscal
 10  3 year beginning July 1, 2007, and ending June 30, 2008,
 10  4 necessary to establish a lean manufacturing institute designed
 10  5 to provide executive level, in=depth training assistance to
 10  6 manufacturing entities in the state.
 10  7 LSB 1648YH 82
 10  8 da:rj/je/5