(a)  In general

The Secretary of Agriculture (referred to in this section as the “Secretary”) shall make grants available on a competitive basis to enterprises owned by agricultural producers, for the purposes of demonstrating cost-effective, cellulosic biomass innovations in⁠—

(1)  preprocessing of feedstocks, including cleaning, separating and sorting, mixing or blending, and chemical or biochemical treatments, to add value and lower the cost of feedstock processing at a biorefinery; or

(2)  1-pass or other efficient, multiple crop harvesting techniques.

(b)  Limitations on grants

(1)  Number of grants

Not more than 5 demonstration projects per fiscal year shall be funded under this section.

(2)  Non-Federal cost share

The non-Federal cost share of a project under this section shall be not less than 20 percent, as determined by the Secretary.

(c)  Condition of grant

To be eligible for a grant for a project under this section, a recipient of a grant or a participating entity shall agree to use the material harvested under the project⁠—

(1)  to produce ethanol; or

(2)  for another energy purpose, such as the generation of heat or electricity.

(d)  Authorization for appropriations

There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2006 through 2010.