PUBLIC LAW 109–58—AUG. 8, 2005
119 STAT. 879
(b) DEFINITIONS.—In this section: (1) CELLULOSIC BIOFUELS.—The term ‘‘cellulosic biofuels’’ means any fuel that is produced from cellulosic feedstocks. (2) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means a producer of fuel from cellulosic biofuels the production facility of which— (A) is located in the United States; (B) meets all applicable Federal and State permitting requirements; and (C) meets any financial criteria established by the Secretary. (c) PROGRAM.— (1) ESTABLISHMENT.—The Secretary, in consultation with the Secretary of Agriculture, the Secretary of Defense, and the Administrator of the Environmental Protection Agency, shall establish an incentive program for the production of cellulosic biofuels. (2) BASIS OF INCENTIVES.—Under the program, the Secretary shall award production incentives on a per gallon basis of cellulosic biofuels from eligible entities, through— (A) set payments per gallon of cellulosic biofuels produced in an amount determined by the Secretary, until initiation of the first reverse auction; and (B) reverse auction thereafter. (3) FIRST REVERSE AUCTION.—The first reverse auction shall be held on the earlier of— (A) not later than 1 year after the first year of annual production in the United States of 100,000,000 gallons of cellulosic biofuels, as determined by the Secretary; or (B) not later than 3 years after the date of enactment of this Act. (4) REVERSE AUCTION PROCEDURE.— (A) IN GENERAL.—On initiation of the first reverse auction, and each year thereafter until the earlier of the first year of annual production in the United States of 1,000,000,000 gallons of cellulosic biofuels, as determined by the Secretary, or 10 years after the date of enactment of this Act, the Secretary shall conduct a reverse auction at which— (i) the Secretary shall solicit bids from eligible entities; (ii) eligible entities shall submit— (I) a desired level of production incentive on a per gallon basis; and (II) an estimated annual production amount in gallons; and (iii) the Secretary shall issue awards for the production amount submitted, beginning with the eligible entity submitting the bid for the lowest level of production incentive on a per gallon basis and meeting such other criteria as are established by the Secretary, until the amount of funds available for the reverse auction is committed. (B) AMOUNT OF INCENTIVE RECEIVED.—An eligible entity selected by the Secretary through a reverse auction shall receive the amount of performance incentive
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