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