Promotes the generation of renewable energy from biomass in economically distressed communities.

Includes qualified biomass energy in the definition of "eligible renewable resource," for purposes of the energy independence act.

Authorizes certain qualifying utilities to use qualified biomass energy to meet certain compliance obligations.

Prohibits qualifying utilities from using certain electricity and associated renewable energy credits from a qualified biomass energy facility if the associated industrial pulping or wood manufacturing facility ceases operation other than for purposes of maintenance or upgrade.

Authorizes industrial facilities that host a qualified biomass energy facility to only transfer or sell renewable energy credits associated with its facility to certain qualifying utilities.