**CONSERVATION**

Sec.2000.Definitions.

**Subtitle A-Comprehensive Conservation Security Enhancement Program**

Sec.2001.Comprehensive conservation enhancement program.

Sec.2002.Compliance and performance.

**Subtitle B-Highly Erodible Land and Grassland Conservation**

Sec.2101.Highly erodible land and grassland conservation.

**Subtitle C-Conservation Reserve**

Sec.2201.Conservation reserve program.

**Subtitle D-Wetlands Reserve Program**

Sec.2301.Wetlands reserve program.

**Subtitle E-Conservation Security Program**

Sec.2401.Conservation security program.

**Subtitle F-Private Lands Protection Program**

> CONGRESSDOC

Sec.2501.Private lands protection program.

**Subtitle G-Environmental Quality Incentives Program**

Sec.2601.Environmental quality incentives program.

**Subtitle H-Emergency Landscape Restoration Program**

Sec.2801.Emergency landscape restoration program.

**Subtitle I-Funding and Administration**

Sec.2901.Funding and administration.

**Subtitle J-Market Based Approaches To Conservation**

Sec.3001.Market based approaches to conservation.

**Subtitle K-Payment Limits, Direct Attribution, and Adjusted Gross
Income Limitation**

Sec.3101.-Payment limits, direct attribution, and adjusted gross income
limitation.

**CONSERVATION**

**[sec. 2000. Definitions.]{.smallcaps}**

Section 2001 of the Food Security Act of 1985 (16 U.S.C. 3801) is
amended by-

\(1\) redesignating paragraphs (2) through (18) as (3) through (19);

\(2\) inserting a new paragraph (2) that reads as follows:

> A(2) [beginning farmer or rancher]{.smallcaps}.-The term \>beginning
> farmer or rancher=, means a beginning farmer or rancher as defined in
> section 343(8) of the Consolidated Farm and Rural Development Act (7
> U.S.C.1991(8)).@;

\(3\) redesignating paragraphs (14) to (19) (as redesignated) as (15) to
(20);

\(4\) inserting a new paragraph (14) that reads as follows:

> A(14) [limited resource farmer or rancher]{.smallcaps}.-The term
> \>limited resources farmer or rancher,@ means a limited resources
> farmer or rancher, as defined by the Secretary.@;

\(5\) redesignating paragraphs (17) to (20) (as redesignated) as (18) to
(21); and

\(6\) inserting a new paragraph (17) that reads as follows:

> A(17) [socially disadvantaged farmer or rancher]{.smallcaps}.- The
> term \>socially disadvantage farmer or rancher= means a person as
> defined in section 355(e)(2) of the Consolidated Farm and Rural
> Development Act (7 U.S.C.2003(e)(2)).@.

**Subtitle A-Conservation Security Enhancement Program**

**[SEC. 2001. COMPREHENSIVE CONSERVATION ENHANCEMENT
PROGRAM.]{.smallcaps}**

Section 1230(a)(1) of the Food Security Act of 1985 (16 U.S.C.
3830(a)(1)) is amended by striking A2002@ and inserting A2012@.

**[SEC. 2002. COMPLIANCE AND PERFORMANCE.]{.smallcaps}**

Section 1230A of the Food Security Act of 1985 (16 U.S.C. 3830a) is
amended to read as follows:

AFor every conservation program under this title, the Secretary shall
develop procedures-

> A(1) to monitor compliance with program requirements by landowners and
> eligible entities; and
>
> A(2) to measure program performance and to demonstrate whether the
> long term conservation benefits of the program are being achieved.@.

**Subtitle B. Highly Erodible Land and Grassland Conservation**

**SEC. 2101.Highly Erodible Land and Grassland Conservation.**

\(a\) In General.CSubtitle B of title XII of the Food Security Act of
1985 (16 U.S.C. 3811 et seq.) is amended-

> \(1\) by striking the subtitle heading and inserting the following:

**ASubtitle B-Highly Erodible Land and Grassland Conservation**

**APART I-HIGHLY ERODIBLE LAND CONSERVATION**@; and

\(2\) by adding at the end the following:

A**PART II-GRASSLAND CONSERVATION**

**A[SEC. 1216. PROGRAM INELIGIBILITY]{.smallcaps}**.

A(a) Definition of Grassland.-In this section, the term \>grassland=
means rangeland and native grassland not previously used for crop
production for the 6 crop years preceding the effective date of *farm
bill 2007*, as determined by the Secretary.

A(b) Ineligibility.-

> A(1) [in general]{.smallcaps}.-Notwithstanding any other provision of
> law, grassland on which an agricultural commodity is produced shall be
> permanently ineligible for any part of a payment, loan or benefit that
> is based on the acreage of grassland, or the production from that
> acreage, as determined by the Secretary.
>
> A(2) [applicable loans and payments]{.smallcaps}.-As of the effective
> date of the amendment to this subtitle by *farm bill 2007,* payments,
> loans and benefits described in paragraph (1) are those payments,
> loans and benefits authorized under-
>
> A(A) title I of the Farm Security and Rural Investment, 2002 (7 U.S.C.
> 7901 et. seq.), the Commodity Credit Corporation Charter Act (15
> U.S.C. 714 et seq.), or any other Act administered by the Secretary,
> in the case of direct payments, counter-cyclical payments, marketing
> assistance loans, and any other type of price support or payment made
> available under those Acts;
>
> A(B) the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et
> seq.) or any other provision of law administered by the Farm Service
> Agency.
>
> A(C) this title;
>
> A(D) the Federal Crop Insurance Act, (7 U.S.C. 1501 et seq.); and
>
> A(E) agricultural disaster assistance, as determined by the Secretary.
>
> A(3) [benefit reduction]{.smallcaps}.-The Secretary shall determine
> through rulemaking how to reduce a payment, loan, or other benefit
> covered under paragraph (1).

A(c) [crp exemption]{.smallcaps}.-Land enrolled into the conservation
reserve program under subchapter B, Chapter 1 during any of the 6 crop
years preceding the effective date of *farm bill 2007* shall be
considered to have been used for crop production for the purposes of the
prohibition under subsection (b)(1).

A(d) Prohibition on Delegation.-The Secretary shall have, and shall not
delegate to any private person or entity, authority to determine whether
a person has complied with this part.@.

\(b\) Conforming Amendments.C

\(1\) Subtitle D of the Consolidated Farm and Rural Development Act (7
U.S.C. 1981 et seq.) is amended by inserting at the end the following:

**ASEC. 379E CONSERVATION CROSS COMPLIANCE.**

A(a) [IN GENERAL]{.smallcaps}.-Grassland that has been converted for
agricultural production in violation of section 1216(b) of the Food
Security Act of 1985 (as amended by *farm bill 2007*) shall not be
eligible for any new farm program loan made or guaranteed by the
Secretary.

A(b) IMPLEMENTATION.-The Secretary shall implement the provisions of
subsection (a) through rulemaking to determine how to reduce the amount
of a loan or loan guaranteed.

> \(2\) Section 502(d) of the Federal Crop Insurance Act (7 U.S.C.
> 1502(d)) is amended by inserting at the end the following:
>
> A(3) CONSERVATION CROSS COMPLIANCE.-Acreage that has been converted
> for agricultural production in violation of section 1216(b) of the
> Food Security Act of 1985 (as amended by *farm bill 2007*) shall not
> be eligible for any policy or plan of insurance made available
> pursuant to this Act.@.
>
> \(3\) Section 1231(b)(1)(A)(ii) of the Food Security Act of 1985 (16
> U.S.C. 3831(b)(1)(A)(ii)) is amended by inserting Apart I of@ before
> Asubtitle B@.
>
> \(4\) Section 1238C(c) of the Food Security Act of 1985 (16 U.S.C.
> 3838c(c)) is amended by striking Asubtitle B or C@ and inserting Apart
> I of subtitle B or subtitle C@.

\(5\) Section 1243 of the Food Security Act of 1985 (16 U.S.C. 3843) is
amended in each of subsections (a)(1)(A) and (d) by inserting Apart I
of@ before Asubtitle B@.

**Subtitle C-Conservation Reserve**

**SEC. 2201. CONSERVATION RESERVE PROGRAM.**

\(a\) Eligible Land.CSection 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) is amendedC

> \(1\) in subsection (a), by striking A2007@ and inserting A2012@; and
>
> \(2\) in subsection (b)C
>
> \(A\) in paragraph (1)(B), by striking the period at the end and
> inserting a semicolon;
>
> \(B\) in paragraph (4)C
>
> \(i\) in subparagraph (C), by striking A; or@ and inserting a
> semicolon; and
>
> \(ii\) in subparagraph (D), by striking Aand@ at the end;
>
> \(iii\) in subparagraph (E) by inserting after the semi colon Aor@;
> and
>
> \(iv\) by adding at the end the following:
>
> A(F) the land consists of at risk landscapes, as determined by the
> Secretary, including-
>
> A(i) partial fields (as determined by the Secretary); and
>
> A(ii) irrigated land in areas in which water availability is limited;
> or@.

\(b\) Maximum Enrollment.-Section 1231(d) of the Food Security Act of
1985 (16 U.S.C. 3831(d)) is amended by striking A2007@ and inserting
A2012@.

\(c\) Conservation Priority Areas.-Section 1231(f) of the Food Security
Act of 1985 (16 U.S.C. 3831(f)) is amended -

> \(1\) in paragraph (1), by striking A(1)@ and all that follows through
> AOn application@ and inserting the following:
>
> A(1) [watersheds]{.smallcaps}.C
>
> A(A) [watersheds of special environmental sensitivity]{.smallcaps}.-On
> application@.;

\(2\) in paragraphs (2), (3), and (4), by striking Asubsection@ each
place it appears and inserting Aparagraph@;

> \(3\) in paragraph (3), by redesignating subparagraphs (A) and (B) as
> clauses (i) and (ii) respectively;
>
> \(4\) in paragraph (4), by striking Aparagraph (1)@ and inserting
> Asubparagraph (A)@;
>
> \(5\) by redesignating paragraphs (2) through (4) as subparagraphs (B)
> through (D) respectively; and
>
> \(6\) by adding at the end the following:
>
> A(2) [cropland]{.smallcaps} [planted to a biomass
> crop]{.smallcaps}.-In enrolling land in the conservation reserve, the
> Secretary shall give priority to whole fields of cropland planted to a
> perennial crop that is used for cellulosic energy production.@.

\(d\) [Pilot Program for Enrollment of Wetland and Buffer Acreage in
Conservation Reserve]{.smallcaps}.CSection 1231(h)(1)(A) of the Food
Security Act of 1985 (16 U.S.C. 3831(h)(1)(A)) is amended by striking
A2007@ and inserting A2012@.

\(e\) [use of crp land for biomass reserve]{.smallcaps}.-Section 1232 of
the Food Security Act of 1985 (16 U.S.C. 3832) is amended-

> \(1\) by designating subsections (b) and (c) as (c) and (d),
> respectively; and
>
> \(2\) by inserting a new subsection (b) as follows:

A(b) [biomass reserve]{.smallcaps}.-

> A(1) Notwithstanding any other provision of this section and section
> 1235A, under the terms of a contract entered into under this
> subchapter, during the term of the contract, an owner or operator may
> plant whole fields of cropland enrolled into the CRP to a perennial
> crop used for cellulosic energy production.
>
> A(2) [limitation]{.smallcaps}.-Cropland planted under subparagraph (A)
> may not be harvested until after nesting seasons of wildlife that
> inhabit the area (as determined by the Secretary).
>
> A(3) [notice upon application.]{.smallcaps}-An owner or operator
> desiring to plant cropland to a perennial crop used for cellulosic
> energy production under this subsection shall provide the Secretary
> with notice of the intent of the owner or operator at the time the
> application for enrollment of the cropland into the conservation
> reserve is made.
>
> A(4) [future applicability]{.smallcaps}.-
>
> A(A) [in general]{.smallcaps}.-Cropland enrolled in the CRP may not be
> planted to a perennial crop that can be used for cellulosic energy
> production-
>
> A(i) until after the effective date of the regulations implementing
> the biomass reserve; and
>
> A(ii) unless the contract under which the cropland is enrolled was
> entered into after the effective date described in clause (i).
>
> A(B) [limitations by secretary.-]{.smallcaps}The Secretary may
> establish additional restrictions (including measures to limit the
> effects on the conservation benefits of the contract) on the use of
> cropland planted to a perennial crop that can be used for cellulosic
> energy production, as the Secretary determines is appropriate.@.

\(f\) [annual rental payments for biomass reserve]{.smallcaps}.CSection
1234(c) of the Food Security Act of 1985 (16 U.S.C. 3834(c)) is amended
by adding at the end the following:

> A(5) [Biomass reserve]{.smallcaps}.CIn the case of cropland enrolled
> in the conservation reserve under this subchapter, and that is planted
> to a perennial crop that can be used for cellulosic energy production,
> annual rental payments in the year in which the crop is harvested
> shall be reduced by an amount commensurate with the economic value of
> the harvest.@.

\(g\) [continuous signup]{.smallcaps}.-Section 1234 of the Food Security
Act of 1985 (16 U.S.C. 3834) is amended-

\(1\) in subsection (c) by adding at the end the following:

> A(6) [lands eligible for continuous signup]{.smallcaps}.-Lands
> eligible for continuous signup include at risk landscapes, as
> determined by the Secretary, such as-
>
> A(A) partial fields that are a part of fragile cropland (as determined
> by the Secretary); and

A(B) irrigated land in areas in which water availability is limited.@.

\(h\) [authorization]{.smallcaps}.-Subchapter B of the Food Security Act
of 1985 is amended by adding at the end:

A**SEC. 1236. PERIOD OF** **AUTHORIZATION**.

AThis subchapter shall be authorized for the 2008 through 2012 fiscal
years.@.

**Subtitle DCWetlands Reserve Program**

**SEC. 2301.WETLANDS RESERVE PROGRAM**.

\(a\) [establishment and purpose.-]{.smallcaps}Section 1237(a) of the
Food Security Act of 1985 (16 U.S.C. 3837(a)) is amended to read:

A(a) [establishment and purposes.-]{.smallcaps}

> [A(1) establishment]{.smallcaps}.-The Secretary shall establish a
> wetlands reserve program to assist owners of eligible lands in
> restoring and protecting wetlands.
>
> A(2) [purposes]{.smallcaps}.-The purposes of the wetlands reserve
> program are-
>
> A(A) to restore, to create, to protect, or to enhance wetlands on
> lands that are eligible under subsections (c) and (d); and
>
> A(B) to purchase flood plain easements.@.

\(b\) Maximum Enrollment.-Section 1237(b)(1) of the Food Security Act of
1985 (16 U.S.C. 3837(b)(1)) is amended-

> \(1\) by striking A2,275,000 acres@ and inserting A3,525,000 acres@;
> and
>
> \(2\) by striking Acalendar@ and inserting Afiscal@.

\(c\) [eligible lands]{.smallcaps}.-Section 1237(c) of the Food Security
Act of 1985 (16 U.S.C. 3837(c)) is amended as follows:

A(c) [Eligibility]{.smallcaps}.-For purposes of enrolling land into the
wetland reserve program established under this subchapter during the
1991 through 2012 fiscal years, land shall be eligible to be placed into
such reserve if the Secretary, in consultation with the Secretary of the
Interior at the local level, determines that-

> A(1) in the case of wetlands-
>
> A(A) the land maximizes wildlife benefits and wetland values and
> functions;
>
> A(B) the land is farmed wetland or converted wetland, together with
> adjacent lands that are functionally dependent on such wetlands,
> except that converted wetlands where the conversion was not commenced
> prior to December 23, 1985, shall not be eligible to be enrolled in
> the program under this section; and
>
> A(C) the likelihood of the successful restoration of such land, and
> the resultant wetland values, merit inclusion of the land into the
> program taking into consideration the cost of such restoration; or
>
> A(2) in the case of flood plain lands-
>
> A(A) the flood plain land has been damaged by flooding at least once
> within the previous calendar year, or has been subject to flood damage
> at least twice within the previous 10 years; or
>
> A(B) other lands within the flood plain would contribute to the
> restoration of the flood storage and flow, erosion control, or that
> acquisition of such lands would make management of the easement more
> effective.@.

\(d\) [ineligible lands]{.smallcaps}.CSection 1237(e) of the Food
Security Act of 1985 (16 U.S.C. 3837(e)) is amended as follows:

A(e) [Ineligible Land]{.smallcaps}.-The Secretary may not acquire
easements on-

> A(1) in the case of wetlands-

A(A) land that contains timber stands established under the conservation
reserve under subchapter B; or

A(B) pasture land established to trees under the conservation reserve
under subchapter B; or

> A(2) in the case of flood plain lands-
>
> A(A) land on which implementation of restoration practices would not
> be productive due to Aon-site@ or Aoff-site@ conditions;

A(B) land that is subject to an existing easement or deed restriction,
and the easement or deed provides sufficient protection or restoration
of the flood plain\'s functions and values, as determined by the
Secretary; or

A(C) land for which purchase of an easement would not meet the purposes
of the enumerated in subsection (a), as determined by the Secretary.@.

\(e\) [easements and agreements]{.smallcaps}.-Section 1237A of the Food
Security Act of 1985 (16 U.S.C. 3837a) is amended-

> \(1\) in subsection (a)(2) by inserting Aif applicable@ after A(2)@;
>
> \(2\) in subsection (b)-
>
> \(A\) in the stem by inserting Aor flood plain land@ after Avalues of
> wetland@;
>
> \(B\) in paragraph (1)(B) by inserting Aor flood plain land@ after
> Awetland@;
>
> \(C\) in paragraph (3) by inserting Aor flood plain lands@ after
> Awetlands@;
>
> \(3\) (A) by redesignating subsections (c)-(g) as (g)-(k),
> respectively; and
>
> \(B\) by inserting new subsections (c), (d), (e), and (f), as follows:

A(c) [easement purchase costs]{.smallcaps}.-When enrolling eligible land
through an entity described in subsection (d)-

> A(1) the share of the Secretary of the cost of purchasing a
> conservation easement or other interest in eligible land shall not
> exceed 50 percent of the appraised fair market value of the
> conservation easement or other interest in eligible land (through an
> appraisal method determined by the Secretary through regulations); and
>
> A(2) an entity described in subsection (d) may include a charitable
> donation by the private landowner from which the eligible land is to
> be purchased of not more than 25 percent of the appraised fair market
> value of the conservation easement or other interest in eligible land.

A(d) [easement title.-]{.smallcaps}

> [A(1) title holder of easement]{.smallcaps}.-The title holder of an
> easement obtained under this subchapter may be, in addition to, or in
> lieu of, the Secretary-
>
> A(A) any agency of any State or local government or an Indian tribe
> (including a farmland protection board or land resource council
> established under State law); or
>
> A(B) any organization thatC
>
> A(i) is organized for, and at all times since the formation of the
> organization has been operated principally for, 1 or more of the
> conservation purposes specified in clause (i), (ii), (iii), or (iv) of
> section 170(h)(4)(A) of the Internal Revenue Code of 1986;
>
> A(ii) is an organization described in section 501(c)(3) of that Code
> that is exempt from taxation under section 501(a) of that Code;

A(iii) is described in section 509(a)(2) of that Code; or

> A(iv) is described in section 509(a)(3), and is controlled by an
> organization described in section 509(a)(2), of that Code.

A(e) [Acceptance of Contributions]{.smallcaps}.CThe Secretary may accept
and use contributions of non-Federal funds to administer the program
under this subchapter.

A(f) Protections and implementation.

A(1) Protections.-In the case of a landowner that conducts activities
and practices approved by the Secretary under this subsection, and the
activities or practices result in a net conservation benefit for a
listed or candidate species, the Secretary shall cooperate with the
Secretary of the Interior and the Secretary of Commerce, as appropriate,
to make available to the landowner safe harbor or similar assurances and
protection under sections 7(b)(4) and 10(a), as applicable, of the
Endangered Species Act of 1973 (16 U.S.C. 1536(b)(4), 1539(a)).

> A(2) Implementation.-If the assurances and protection achieved under
> paragraph (1) involves the implementation of additional activities or
> practices under the easement plan of the owner, the cost of
> implementing the additional activities or practices, as well as the
> cost of any permit, shall be considered part of the easement plan for
> purposes of financial assistance under this subchapter.@; and
>
> \(4\) adding at the end the following:

A(l) [wetlands reserve enhancement program]{.smallcaps}.-

> "(1) [In general]{.smallcaps}.-The provisions of this subchapter that
> limit payments to any person, and section 1305(d) of the Agricultural
> Reconciliation Act of 1987 (7 U.S.C. 1308 note), shall not be
> applicable to payments received by a State, political subdivision, or
> agency thereof in connection with agreements entered into under a
> special wetlands reserve enhancement program carried out by that
> entity that has been approved by the Secretary.
>
> A(2) [Agreements]{.smallcaps}.-The Secretary may enter into agreements
> with States (including political subdivisions and agencies of States)
> regarding payments described in paragraph (1) that the Secretary
> determines will advance the purposes of this subchapter.@.

\(f\) [duties of the Secretary]{.smallcaps}.-Section 1237C of the Food
Security Act of 1985 (16 U.S.C. 3837c) is amended-

> \(1\) in subsection (a)(1) by inserting Aor flood plains land@ after
> Awetland@;
>
> \(2\) by striking subsection (c) and inserting:

A(c) [ranking of Offers]{.smallcaps}.-

> A(1) [in general]{.smallcaps}.-When evaluating offers from landowners,
> the Secretary may consider-
>
> A(A) the conservation benefits of obtaining an easement or other
> interest in the land;
>
> A(B) the cost-effectiveness of each easement or other interest in
> eligible land, so as to maximize the environmental benefits per dollar
> expended; and
>
> A(C) whether the landowner or another person is offering to contribute
> financially to the cost of the easement or other interest in the land
> to leverage Federal funds.
>
> A(2) [conservation benefits]{.smallcaps}.-In determining the
> acceptability of easement offers, the Secretary may take into
> considerationC

A(A) in the case of wetlands-

> A(i) the extent to which the purposes of the easement program would be
> achieved on the land;

A(ii) the productivity of the land;

A(iii) the on-farm and off-farm environmental threats if the land is
used for the production of agricultural commodities;

> A(B) in the case of flood plain lands-
>
> A(i) the extent to which the purposes of the easement program would be
> achieved on the land;
>
> A(ii) whether the land has been repeatedly flooded over the last ten
> years;
>
> A(iii) the extent to which an easement on the flood plain land would
> contribute to the restoration or management of land in the area
> surrounding the flood plain land; and
>
> A(iv) other factors, as determined by the Secretary.@.

\(g\) [changes in ownership; agreement modification;
termination]{.smallcaps}.-Section 1237E is amended by adding at the end:

A(c) [land exchange]{.smallcaps}.-When the Secretary determines that it
is in the best interest of the Government, the Secretary may, pursuant
to the authority under 7 U.S.C. 428a, allow land subject to a flood
plain easement to be exchanged for other land in the area surrounding
the flood plain land that is subject to the easement.@.

\(h\) [authorization]{.smallcaps}.-Subchapter C is amended by adding at
the end:

[A**SEC. 1237G.-TEMPORARY ADMINISTRATION OF WETLANDS RESERVE
PROGRAM**]{.smallcaps}**.**

A(a) [INTERIM ADMINISTRATION]{.smallcaps}.-

> A(1) [IN GENERAL]{.smallcaps}.-During the period beginning on the date
> of enactment of this section and ending on the termination date
> provided under paragraph (2), to ensure that technical assistance,
> cost-share payments, and other payments continue to be administered in
> an orderly manner until such time as the technical assistance,
> cost-share payments, and other payments can be provided through final
> regulations issued to implement the wetlands reserve program, as
> amended by *farm bill 2007*, the Secretary shall, to the extent the
> terms and conditions of the programs under clauses (i) and (ii) of
> subparagraph (A) are consistent with the wetlands reserve program, as
> amended by *farm bill 2007*, continue to-
>
> A(A) provide technical assistance, cost-share payments, and other
> payments under the terms and conditions of -
>
> A(i) the flood plains easements authorities, section 403 of Pub. L.
> 95-334 (16 U.S.C. 2203); and
>
> A(ii) this subchapter as it existed 1 day before the date of enactment
> of *farmbill 2007*; and
>
> A(B) use for those purposes C
>
> A(i) any funds available in the fiscal year from those programs; and
>
> A(ii) as the Secretary determines to be necessary, any funds
> authorized to be used to carry out the wetlands reserve program, as
> amended by *farm bill 2007*.
>
> A(2) [TERMINATION OF AUTHORITY]{.smallcaps}.-The authority of the
> Secretary to carry out paragraph (1), and the authority for the
> programs described clauses (i)-(ii) of paragraph (1)(A), shall
> terminate on the effective date of the final regulation implementing
> the wetlands reserve program, as amended by *farm bill 2007*.

A(b) [PERMANENT ADMINISTRATION]{.smallcaps}.-Effective beginning on the
termination date provided under subsection (a)(2), the Secretary shall
provide technical assistance, cost-share payments, and incentive
payments for the purchase of easements, cost share payments, and
technical assistance for private landowners on private lands in
accordance with final regulations issued to carry out the wetlands
reserve program, as amended by *farm bill 2007*.@

A**SEC. 1237H. PERIOD OF** **AUTHORIZATION**.

AExcept as provided in section 1237G (a), this subchapter shall be
authorized for the 2008 through 2012 fiscal years.@.

\(j\) The flood plains easement function in section 403 of Pub. L.
95-334 (16 U.S.C. 2203) is repealed as of the effective date of the
final regulations for the wetlands reserve program, as amended by *farm
bill 2007*.

**SUBTITLE E-CONSERVATION SECURITY PROGRAM**

**SEC. 2401. CONSERVATION SECURITY PROGRAM**.

\(a\) Section 1238 of the Food Security Act of 1985 (16 U.S.C. 3838 ) is
amended to read as follows:

**ASEC. 1238. DEFINITIONS**.

AIn this subchapter:

A(1) [Conservation practice]{.smallcaps}.-The term \>conservation
practice= means a conservation farming practice that-

> A(A) requires planning, implementation, management, and maintenance;
> and
>
> A(B) promotes 1 or more of the purposes described in section 1238A(a).

A(2) [Conservation security contract]{.smallcaps}.-The term
\>conservation security contract= means a contract, as described in
section 1238A(e).

A(3) [Conservation plan]{.smallcaps}.-The term \>conservation plan=
means a plan described in section 1238A(c).

A(4) [Master tier]{.smallcaps}.-The term \>master tier= means a level of
conservation practice described in section 1238A(d)(4)(B).

A(5) [Nondegradation standard]{.smallcaps}.-The term \>nondegradation
standard= means the level of measures required to adequately protect,
and prevent degradation of, 1 or more natural resources, in accordance
with the quality criteria determined by the Secretary.

A(6) [Progressive tier]{.smallcaps} .-The term \>progressive tier= means
a level of conservation practice described in section 1238A(d)(4)(A).

A(7) [Producer]{.smallcaps}.-

> A(A) [In general]{.smallcaps}.CThe term \>producer= means an owner,
> operator, landlord, tenant, or sharecropper that-
>
> A(i) shares in the risk of producing any crop or livestock; and
>
> A(ii) is entitled to share in the crop or livestock available for
> marketing from a farm (or would have shared had the crop or livestock
> been produced).
>
> A(B) [Hybrid seed growers]{.smallcaps}.-In determining whether a
> grower of hybrid seed is a producer, the Secretary shall not take into
> consideration the existence of a hybrid seed contract.

A(8) [Resource-conserving crop rotation]{.smallcaps}.-The term
\>resource-conserving crop rotation= means a crop rotation that-

> A(A) includes at least 1 resource-conserving crop (as defined by the
> Secretary);
>
> A(B) reduces erosion;
>
> A(C) improves soil fertility and tilth;
>
> A(D) interrupts pest cycles; and
>
> A(E) in applicable areas, reduces depletion of soil moisture (or
> otherwise reduces the need for irrigation).

A(9) [Resource management system]{.smallcaps}.-The term \>resource
management system= means a system of conservation practices and
management relating to land or water use that is designed to prevent
resource degradation and permit sustained use of land, water, and other
natural resources, as determined by the Secretary.

A(10) [Secretary]{.smallcaps}.-The term \>Secretary= means the Secretary
of Agriculture.@.

\(b\) Section 1238A of the Food Security Act of 1985 (16 U.S.C. 3838a)
is amended-

> \(1\) in subsection (a) by striking A2003 through 2011\" and inserting
> A2008 through 2012\";
>
> \(2\) in subsection (b)(1) by striking Asecurity plan@ each place it
> occurs and inserting Aplan@;
>
> \(3\) by amending subsection (b)(3)(C) to read as follows:
>
> A(C) [private lands protection.]{.smallcaps}-Land enrolled in the
> private lands protection program under subchapter B, Chapter 2 shall
> not be eligible for enrollment in the conservation security program.@;
>
> \(4\) in subsection (b)(4) by striking Asecurity plan@ and inserting
> Aplan@;
>
> \(5\) in subsection (c) by striking Asecurity plan@ each place it
> appears and inserting Aplan@;
>
> \(6\) in subsection (d)-
>
> \(A\) in paragraph (1)(A) by striking everything from AThe Secretary@
> through the end of the paragraph and inserting:
>
> AThe Secretary shall establish, and offer to eligible producers, 2
> tiers of conservation practices, 1 of which tiers a producer must
> select to establish the duties of the producer under a conservation
> security contract.@;

\(B\) by striking paragraph (1)(B) and inserting:

A(B) [evaluation of conservation plans]{.smallcaps}.-

> A(i) [in general]{.smallcaps}.-When evaluating proposed conservation
> plans by producers, the Secretary may consider-

A(I) the conservation benefits of the offer;

> A(II) the cost-effectiveness of implementation of the conservation
> plan, so as to maximize the environmental benefits per dollar
> expended; and
>
> A(III) whether the producer, or another person is offering to
> contribute financially to the cost of the contract to leverage Federal
> funds.
>
> A(C) [ranking of Conservation Plans]{.smallcaps}.-In evaluating
> conservation plans, the Secretary shall, in consultation with the
> State Conservationist of State in which the producer resides, accord a
> higher priority to conservation plans that C
>
> A(i) encourage the use by producers of cost-effective conservation
> practices;
>
> A(ii) address natural resource concerns on the agricultural operation
> of the producer; and
>
> A(iii) address other concerns and priorities, as determined by the
> Secretary.@;
>
> \(C\) by striking paragraph (4);
>
> \(D\) by redesignating paragraph (5) as paragraph (4) and amending
> paragraph (4) (as redesignated) as follows:
>
> A(4) [Tiers]{.smallcaps}.CSubject to paragraph (5), to carry out this
> subsection, the Secretary shall establish the following 2 tiers of
> conservation practices under a conservation security contract:
>
> A(A) [Progressive tier conservation practices]{.smallcaps}.-A
> conservation plan for land enrolled under the progressive tier level
> of conservation practices shall-

A(i) be for a period of 5 years; and

> A(ii) include conservation practices appropriate for the agricultural
> operation, that, at a minimum (as determined by the Secretary)-
>
> A(I) have, prior to the date of application, addressed water and soil
> quality concerns for the entire agricultural operation, at a level
> that meets the appropriate nondegredation standard;
>
> A(II) would address at least 1 additional significant resource of
> concern for the entire agricultural operation, as determined by the
> Secretary, at a level that meets the appropriate nondegradation
> standard; and
>
> A(III) cover active management of conservation practices that are
> implemented or maintained under this tier.@; and
>
> A(B) [Master tier conservation practices]{.smallcaps}.-A conservation
> plan for land enrolled under the master tier level of conservation
> practices shall-
>
> A(i) be for a period that is not less than 5, nor more than 10 years,
> at the election of the producer; and
>
> A(ii) include conservation practices appropriate for the agricultural
> operation that, at a minimum (as determined by the Secretary)-
>
> A(I) have, prior to the date of application, addressed all existing
> resource concerns for the entire agricultural operation, at a level
> that meets the appropriate nondegredation standard; and
>
> A(II) cover active management of conservation practices that are
> implemented or maintained under this tier; and

A(iii) perform additional activities, including -

A(I) higher levels of conservation treatment;

A(II) participate in an on-farm conservation research, demonstration,
pilot project, or field trial; or

A(III) other conservation activities, as determined by the Secretary.@;
and

> \(E\) in paragraph (6)-
>
> \(i\) by redesignating paragraph (6) as paragraph (5);
>
> \(ii\) by striking Acontracts@ and inserting Apractices@ ; and
>
> \(iii\) by striking A(5) and inserting A(4)@;
>
> \(7\) in subsection (e)(1) by striking Asecurity plan@ and inserting
> Aplan@;
>
> \(8\) in subsection (e)(3)(A)(ii) by striking Asecurity plan@ and
> inserting Aplan@
>
> \(9\) in subsection (e)(4) -
>
> \(A\) in subparagraph (A) by striking Aat the option of a producer,@;
> and
>
> \(B\) by amending subparagraph (B) to read as follows:
>
> A(B) [Progressive tier renewals]{.smallcaps}.
>
> A(i) [in general]{.smallcaps}.-In the case of a conservation security
> contract of a producer containing progressive tier level conservation
> practices, the producer may renew the contract only if the producer
> agrees to apply additional conservation practices that meet the
> nondegradation standard on land already enrolled in the conservation
> security program.
>
> A(ii) In the case of a conservation security contract of a producer
> that contained progressive tier level conservation practices, the
> producer may neither obtain a renewal of the contract nor obtain a new
> contract for the same conservation practices.@.

\(c\) Section 1238B of the Food Security Act of 1985 (16 U.S.C. 3838c)
is amended by striking Asecurity plan@ each place it appears and
inserting Aplan@.

\(d\) Section 1238C of the Food Security Act of 1985 (16 U.S.C. 3838c)
is amended-

> \(1\) in subsection (b)-
>
> \(A\) by amending paragraph (1) to read as follows:

A(1) [Criteria for determining amount of payments]{.smallcaps}.-

> A(A) [in general]{.smallcaps}.-The amount of a payment a producer
> would receive for performing either the progressive tier or master
> tier level of conservation practices shall be determined by the
> Secretary through rulemaking.
>
> A(B) [costs of practices]{.smallcaps}.-The Secretary shall establish
> the criteria for determining payment amounts under subparagraph (A)
> based on factors such as income foregone by the producer and costs
> incurred by the producer to implement the progressive tier or master
> tier level of conservation practices.@;
>
> \(B\) by striking paragraph (2); and
>
> \(C\) by redesignating paragraph (3) as paragraph (2); and
>
> \(2\) by striking subsection (f); and
>
> \(3\) in subsection (g) by striking A2003 through 2007\" and inserting
> A2008 through A2012\".

\(e\) Subchapter 2 of chapter 1 of the Food Security Act of 1985 (16
U.S.C. 3838-3838c) is amended by adding at the end-

A**SEC. 1238D. PERIOD OF** **AUTHORIZATION**.

AThis subchapter shall be authorized for the 2008 through 2012 fiscal
years.@.

**Subtitle F-Private Lands Protection Program**

**SEC. 2501. PRIVATE LANDS PROTECTION PROGRAM**.

\(a\) Subchapter B, Chapter 2, Subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.) is amended to read as
follows-

A**SUBCHAPTER B-PRIVATE LANDS PROTECTION PROGRAM**

**ASEC. 1238H. DEFINITIONS**.-

In this Subchapter:

A(a) [Eligible entity]{.smallcaps}.CThe term Aeligible entity@ meansC

> A(1) any agency of any State or local government or an Indian tribe
> (including a farmland protection board or land resource council
> established under State law); or
>
> A(2) any organization thatC
>
> A(A) is organized for, and at all times since the formation of the
> organization has been operated principally for, 1 or more of the
> conservation purposes specified in clause (i), (ii), (iii), or (iv) of
> section 170(h)(4)(A) of the Internal Revenue Code of 1986;
>
> A(B) is described in section 501(c)(3) of that Code as being exempt
> from taxation under section 501(a) of that Code;
>
> A(C) is described in section 509(a)(2) of that Code; or
>
> A(D) is described in section 509(a)(3), and is controlled by an
> organization described in section 509(a)(2), of that Code.

A(b) [Eligible land]{.smallcaps}.C

A(1) [In general]{.smallcaps}.CThe term Aeligible land@ means private
farm, ranch, or forest land thatC

> A(A) has prime, unique, or other productive soil;

A(B) contains historical or archaeological resources;

> A(C) is grassland, land that contains forbs, or shrub land (including
> improved rangeland and pastureland);
>
> A(D) is located in an area that has been historically dominated by
> grassland, forbs, or shrub land, and the land potentially could
> provide habitat for animal or plant populations of significant
> ecological value if the land isC
>
> A(i) retained in the current use of the land; or
>
> A(ii) restored to a natural condition;
>
> A(E) the enrollment of which would protect, restore, or enhance
> species habitat, or otherwise measurably increase the likelihood of
> recovery of species that are-
>
> A(i) listed as endangered or threatened under section 4 of the
> Endangered Species Act of 1973 (16 U.S.C. 1533); or
>
> A(ii) not listed as endangered or threatened under section 4 of the
> Endangered Species Act of 1973 (16 U.S.C. 1533), but are-
>
> A(I) candidates for a listing as endangered or threatened;
>
> A(II) a State-listed species; or
>
> A(III) named as a special concern species, as determined by the
> Secretary;
>
> A(F) is incidental to lands described in sub paragraphs (A)-(E), if
> the incidental land is determined by the Secretary to be necessary for
> the efficient administration of an agreement or easement; and
>
> A(G) other lands, as determined by the Secretary.

A(c) [Indian tribe]{.smallcaps}.CThe term AIndian tribe@ has the meaning
given the term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).

A(d) [Program]{.smallcaps}.CThe term Aprogram@ means the private lands
protection program under section 1238I(a).

**ASEC. 1238H. PRIVATE LANDS PROTECTION PROGRAM**.

A(a) [In General]{.smallcaps}.-The Secretary shall establish and carry
out a private lands protection program to restore and to protect farm,
ranch and forest lands by limiting nonagricultural uses of the land and
restoring, enhancing, and conserving eligible land.

A(b) [Enrollment]{.smallcaps}.-The Secretary may either directly, or
through an eligible entity, obtain an interest in eligible land through-

> A(1) a 10-year restoration agreement;
>
> A(2) a 30-year or permanent easement; or
>
> A(3) in a State that imposes a maximum duration for easements, an
> easement for the maximum duration allowed under State law.

A(c) [assistance]{.smallcaps}.-The Secretary shall provide payments and
technical assistance as provided in section 1238I.

A(d) [cost share and restoration]{.smallcaps}.-Cost share payments and
technical assistance shall be made available for restoration,
maintenance and improvement of lands subject to easements under this
subchapter.

A(e) [Acceptance of Contributions]{.smallcaps}.-The Secretary may accept
and use contributions of non-Federal funds to administer the program
under this subchapter.

A(f) [easement title.-]{.smallcaps}The title holder of an easement
obtained under this subchapter, in addition to the Secretary, or in lieu
of the Secretary, may be an eligible entity. **ASEC. 1238I EASEMENTS,
AGREEMENTS, AND DUTIES.**

A(a) [Requirements of Landowners]{.smallcaps}.-

> A(1) In general.-To become eligible to enroll land in the program
> through the grant of an easement, the landowner or eligible entity, as
> applicable, shall-
>
> A(A) create and record an appropriate deed restriction in accordance
> with applicable State law;
>
> A(B) provide proof of unencumbered title to the underlying fee
> interest in the land that is subject of the easement;
>
> A(C) grant the easement to either the Secretary or an eligible entity;
>
> A(D) comply with the terms of the easement and the restoration
> agreement; and
>
> A(E) explicitly consent in writing to granting a security interest in
> the land to either the Secretary or an eligible entity.
>
> A(2) [Restoration agreements]{.smallcaps}.-
>
> A(A) [in general]{.smallcaps}.-If a restoration plan is required by
> the Secretary, the landowner or eligible entity, as applicable, shall-
>
> A(i) with the assistance of the Secretary, develop a restoration plan;
>
> A(ii) provide a written statement of consent to such an agreement that
> is signed by persons holding a security interest in the land; and
>
> A(iv) implement the restoration plan.
>
> A(B) [terms of restoration agreement]{.smallcaps}.-A restoration plan
> shall contain-
>
> A(i) a statement of the conservation measures and practices that will
> be undertaken in regard to the land under the easement;
>
> A(ii) restrictions on the use of the land under the easement; and
>
> A(iii) a statement of the respective duties of the Secretary,
> landowner, or eligible entity.
>
> A(C) [Violation]{.smallcaps}.-Upon the violation of the terms or
> conditions of an easement or restoration agreement entered into under
> this section-
>
> A(i) the easement shall remain in force; and
>
> A(ii) the Secretary may require the owner to refund all or part of any
> payments received by the owner under this subchapter, with interest on
> the payments as determined appropriate by the Secretary.

A(b) [Requirements of the Secretary]{.smallcaps}.-

> A(1) [Protections for performing approved practices.-]{.smallcaps}
>
> A(A) [Protections.]{.smallcaps}-In the case of a landowner or eligible
> entity that conducts activities and practices approved by the
> Secretary under this chapter, and the activities or practices result
> in a net conservation benefit for a listed or candidate species, the
> Secretary shall cooperate with the Secretary of the Interior and the
> Secretary of Commerce, as appropriate, to make available to the
> landowner or eligible entity safe harbor or similar assurances and
> protection under sections 7(b)(4) and 10(a), as applicable, of the
> Endangered Species Act of 1973 (16 U.S.C. 1536(b)(4), 1539(a)).
>
> A(B) [Implementation]{.smallcaps}.-If the assurances and protection
> achieved under subparagraph (A) involves the implementation of
> additional activities or practices under the restoration plan of the
> landowner or eligible entity, the cost of implementing the additional
> activities or practices, as well as the cost of any permit, shall be
> considered part of the restoration plan for purposes of financial
> assistance under this subchapter.
>
> A(2) [restoration agreements]{.smallcaps}.-The Secretary may provide
> technical assistance and payments to landowners or eligible entities
> in complying with the terms and conditions of the easement and
> restoration plan.
>
> A(3) [payments]{.smallcaps}.-
>
> A(A) [Permanent Easement Payments]{.smallcaps}.-In return for the
> granting of a permanent easement or an easement for the maximum
> duration allowed under applicable State law by a landowner under this
> subchapter, the Secretary shall make payments to the landowner in an
> amount equal to-
>
> A(i) not more than the fair market value of the land, less the fair
> market value of the land encumbered by the easement; and
>
> A(ii) not more than 100 percent of the eligible costs of restoration.
>
> A(B) [30 Year Easement Payments]{.smallcaps}.-In return for granting a
> 30 year easement by a landowner, the Secretary shall make payments to
> the landowner in an amount equal to-
>
> A(i) not more than 75 percent of the fair market value of the land,
> less the fair market value of the land encumbered by the easement; and
>
> A(ii) not more than 75 percent of the eligible costs of restoration.
>
> A(C) [10 year Restoration Agreement Payments]{.smallcaps}.-In return
> for executing a 10 year restoration agreement, the Secretary shall
> make payments to the landowner in an amount equal to not more than 50
> percent of the eligible costs of restoration.
>
> A(D) [easements acquired through eligible entities]{.smallcaps}.-When
> enrolling eligible land through an eligible entity-
>
> A(i) the share of the Secretary of the cost of purchasing a
> conservation easement or other interest in eligible land shall not
> exceed 50 percent of the fair market value of the land, less the fair
> market value of the land encumbered by the easement; and
>
> A(ii) an eligible entity may include a charitable donation by the
> private landowner from which the eligible land is to be purchased of
> not more than 25 percent of the appraised fair market value of the
> conservation easement or other interest in eligible land.
>
> A(4) [Evaluation and Ranking]{.smallcaps}.-In evaluating applications
> for easements and restoration agreements, the Secretary shall
> establish criteria to rank applications and accord a higher priority
> to applications that would-
>
> A(A) provide public recreational use, including hunting, fishing, and
> wildlife viewing, of the land;
>
> A(B) maintain agricultural or forested use of the land;
>
> A(C) improve biological diversity; and
>
> A(D) leverage Federal dollars with funding from non-federal sources.
>
> A(5) [Eligible Entities Escrow Account]{.smallcaps}.- Except for an
> eligible entity under section 1238H(a)(1), when enrolling acres in the
> program through an eligible entity, the Secretary shall require the
> establishment and funding of an escrow account to provide for
> monitoring and enforcement of the easement.@.

**ASEC. 1238J. MODIFICATION, TRANSFER, OR TERMINATION OF EASEMENT**.

A(a) Modification.-The Secretary may modify an easement acquired from,
or a related agreement with, an owner or eligible entity under this
subchapter if-

> A(1) the current owner of the land agrees to such modification; and
>
> A(2) the Secretary determines that such modification is desirable-
>
> A(A) to carry out this subchapter;
>
> A(B) to facilitate the practical administration of this subchapter; or
>
> A(C) to achieve such other goals as the Secretary determines are
> appropriate and consistent with this subchapter.

A(b) [title transfer]{.smallcaps}.-The Secretary may transfer title of
ownership to an easement under this subchapter to an eligible entity to
hold and enforce an easement under this subchapter, in lieu of the
Secretary, subject to the right of the Secretary to conduct periodic
inspections and enforce the easement, ifC

> A(1) the Secretary determines that granting the transfer would promote
> protection of eligible land;

A(2) the owner authorizes the eligible entity to hold and enforce the
easement; and

A(3) the eligible entity assuming the title agrees to assume the costs
incurred in administering and enforcing the easement, including the
costs of restoration or rehabilitation of the land as specified by the
owner and the eligible entity.

> A(4) the eligible entity, except for an eligible entity under section
> 1238H(a)(1), contributes to an escrow account in an amount determined
> by the Secretary to provide for monitoring and enforcement of the
> easement.@.

A(c) Termination.-

> A(1) [in general]{.smallcaps}.-The Secretary may terminate an easement
> ifC
>
> A(A) the current owner of the land agrees to such termination; and
>
> A(B) the Secretary determines that such termination would be in the
> public interest.@.

A**SEC. 1238K.-TEMPORARY ADMINISTRATION OF PRIVATE LANDS PROTECTION
PROGRAM**

A(a) [INTERIM ADMINISTRATION]{.smallcaps}.C

> A(1) [IN GENERAL]{.smallcaps}.CDuring the period beginning on the date
> of enactment of this section and ending on the termination date
> provided under paragraph (2), to ensure that technical assistance,
> cost-share payments, and other payments continue to be administered in
> an orderly manner until such time as the technical assistance,
> cost-share payments, and other payments can be provided through final
> regulations issued to implement the private lands protection program,
> as amended by *farm bill 2007*, the Secretary shall, to the extent the
> terms and conditions of the programs under clauses (i)-(iii) are
> consistent with the private lands protection program, as amended *by
> farm bill 2007*, continue to-
>
> A(A) provide technical assistance, cost-share payments, and other
> payments under the terms and conditions of the-
>
> A(i) the grass lands reserve program, sections 1238N-1238Q of the Food
> Security Act of 1985 (16 U.S.C. 3838n,q);
>
> A(ii) farmland protection program, sections 1238H and 1238I of the
> Food Security Act of 1985 (16 U.S.C. 3838h, 3838i); and
>
> A(iii) healthy forests reserve program, sections 501-508 of the
> Healthy Forests Restoration Act of 2003 (16 U.S.C. 6571-6578);

A(B) use for those purposes C

> A(i) any funds available in the fiscal year from those programs; and
>
> A(ii) as the Secretary determines to be necessary, any funds
> authorized to be used to carry out the private lands protection
> program, as amended by *farm bill 2007*.
>
> A(2) [TERMINATION OF AUTHORITY]{.smallcaps}.-The authority of the
> Secretary to carry out paragraph (1), and the authority for the
> programs described clauses (i)-(iii) of paragraph (1)(A), shall
> terminate on the effective date of the final regulation implementing
> the private lands protection program, as amended by *farm bill 2007*.

A(b) [PERMANENT ADMINISTRATION]{.smallcaps}.- Effective beginning on the
termination date provided under subsection (a)(2), the Secretary shall
provide technical assistance, cost-share payments, and incentive
payments to private landowners in accordance with final regulations
issued to carry out the private lands protection program as amended by
*farm bill 2007*.@.

A**SEC. 1238L. PERIOD OF AUTHORIZATION**.

AExcept as provided in section 1238K, this chapter shall be effective
for the 2008 through 2012 fiscal years.@.

\(b\) [conforming amendments]{.smallcaps}.

> \(1\) The farmland protection program, sections 1238H and 1238I of the
> Food Security Act of 1985 (16 U.S.C. 3838h, 3838i), is-
>
> \(A\) authorized until the effective date of the final regulations for
> the private lands protection program as amended by *farm bill 2007*;
> and
>
> \(B\) repealed as of the effective date of the final regulations for
> the private lands protection program, as amended by *farm bill 2007*.
>
> \(2\) The healthy forests reserve program, sections 501-508 of the
> Healthy Forests Restoration Act of 2003 (16 U.S.C. 6571-6578) is-
>
> \(A\) authorized until the effective date of the final regulations for
> the private lands protection program, as amended by *farm bill 2007*;
> and
>
> \(B\) repealed as of the effective date of the final regulations for
> the private lands protection program as amended by *farm bill 2007*.
>
> \(3\) The grass lands reserve program, sections 1238N-1238Q of the
> Food Security Act of 1985 (16 U.S.C. 3838n,q) is-
>
> \(A\) authorized until the effective date of the final regulations for
> the private lands protection program, as amended by *farm bill 2007*;
> and
>
> \(B\) repealed as of the effective date of the final regulations for
> the private lands protection program, as amended by *farm bill 2007*.

\(c\) Section 1238J of the Food Security Act of 1985 (16 U.S.C. 3838j)
is redesignated as section 1240Q.

**SUBTITLE G-ENVIRONMENTAL QUALITY INCENTIVES** **PROGRAM**

**SEC. 2601. [ENVIRONMENTAL QUALITY INCENTIVES PROGRAM]{.smallcaps}**.

\(a\) Sec. 1240 of the Food Security Act of 1985 (16 U.S.C. 3839aa) is
to read as follows:

A(a) The purpose of the environmental quality incentives program
established by this chapter is to provide a consolidated program to
address multiple resource concerns in order to promote conservation and
environmental quality improvement of natural resources by producers
engaged in agricultural production, and private landowners engaged in
sustainable forest management practices and other conservation
practices, by-

> A(1) assisting producers and landowners in complying with local,
> State, and national regulatory requirements concerning-
>
> A(A) soil, water, and air quality;
>
> A(B) habitat for fish and wildlife, including threatened and
> endangered species;
>
> A(C) surface and ground water conservation;

A(2) avoiding, to the maximum extent practicable, the need for resource
and regulatory programs by assisting producers and landowners to protect
soil, water, air, and related natural resources and meeting
environmental quality criteria established by Federal, State, tribal,
and local agencies;

> A(3) providing flexible assistance to producers and landowners to
> install and maintain conservation practices that enhance soil, water,
> non-industrial private forests, fish and wildlife habitat, and related
> natural resources (including grazing land);
>
> A(4) assisting producers to make beneficial, cost effective changes to
> cropping systems, grazing management, nutrient management associated
> with livestock, pest or irrigation management, or other practices on
> agricultural land; and
>
> A(5) consolidating and streamlining conservation planning and
> regulatory compliance processes to reduce administrative burdens on
> producers and landowners and the cost of achieving environmental
> goals;
>
> A(6) assisting cooperative conservation and environmental efforts on a
> regional and watershed basis, such as enhancing water quality and
> water conservation on the scale of a watershed or irrigation district;
> and
>
> A(7) other purposes, as determined appropriate by the Secretary.

\(b\) Section 1240A of the Food Security Act of 1985 (16 U.S.C.
3839aa-1) is amended to read as follows:

**ASEC. 1240A. DEFINITIONS**.-

AIn this chapter:

A(1) [conservation practices plan]{.smallcaps}.-The term \>conservation
practices plan= means a plan that every producer and private landowner
participating under this program shall submit under section 1240E for
all practices covered by the agreement.

A(2) [Eligible land]{.smallcaps}.-

> A(A) [In general]{.smallcaps}.-The term \>eligible land= means, as
> determined by the Secretary-
>
> A(i) land on which agricultural commodities or livestock are produced;
>
> A(ii) private, non-industrial forest land; and
>
> A(iii) land that can be enhanced or restored to provide wildlife
> habitat, other than land in urban areas, as determined by the
> Secretary.
>
> A(B) [Inclusions]{.smallcaps}.-The term \>eligible land= includesC
>
> A(i) cropland, including organically farmed land;
>
> A(ii) grass land;
>
> A(iii) range land;
>
> A(iv) pasture land; and
>
> A(v) other land that the Secretary determines poses a serious threat
> to the quality of-
>
> A(I) soil, air, water, or related natural resources; or
>
> A(II) fish and wildlife habitat, including habitat that contributes to
> the recovery of threatened and endangered species.

A(3) [Land management practice]{.smallcaps}.-The term \>land management
practice= means a practice that the Secretary determines best protects
the land from degradation, in the most cost-effective manner, including-

> A(A) soil erosion prevention, site-specific nutrient or manure
> management, integrated pest management, irrigation management, tillage
> or residue management, grazing management;
>
> A(B) air and water quality, and water quantity management;
>
> A(C) enhancing the health and protection of private nonindustrial
> forest lands;
>
> A(D) reestablishing native vegetation; and
>
> A(E) controlling invasive species.

A(4) [Livestock]{.smallcaps}.-The term \>livestock= means dairy cattle,
beef cattle, laying hens, broilers, turkeys, swine, sheep, and other
such animals as are determined by the Secretary.

A(5) [Practice]{.smallcaps}.-The term \>practice= means 1 or more
structural practices, land management practices, wildlife habitat
practices, and comprehensive nutrient management practices (as
determined by the Secretary).

[A(6) Private landowner]{.smallcaps}.-The term \>private landowner=
means a person-

> A(A) that is not a local, State or Federal government, a division of
> government, or an organization owned by government, as determined by
> the Secretary; and
>
> A(B) that owns eligible land.

A(7) [Producer]{.smallcaps}.-The term \>producer= means a rancher, an
owner, an operator, a landlord, a tenant, or a sharecropper thatC

> A(A) shares in the risk of producing any crop or livestock; and
>
> A(B) is entitled to share in the crop or livestock available for
> marketing from a farm or ranch (or would have shared had the crop or
> livestock been produced).

A(8) [program]{.smallcaps}.-The term \>program= means the environmental
quality incentives program established under this chapter.

A(9) [Structural practice]{.smallcaps}.-The term \>structural practice=
means a practice that the Secretary determines best protects the land
from degradation, in the most cost-effective manner, including-

> A(A) the establishment of a site-specific animal waste management
> facility, terrace, grassed waterway, contour grass strip, filterstrip,
> tailwater pit, and constructed wetland; and
>
> A(B) the capping of abandoned wells on eligible agricultural land.

A(10) [threatened or endangered wildlife]{.smallcaps}.-The term
\>threatened or endangered wildlife= means a species of animal that is
listed as threatened or endangered under section 4 of the Endangered
Species Act of 1973 (16 U.S.C. 1533).

[A(11) Wildlife habitat practice]{.smallcaps}.-The term \>wildlife
habitat practice= means a practice determined by the Secretary to best
protect, restore or enhance fish and wildlife habitat, in the most
cost-effective manner, on individual private lands and across
ecosystems.@.

\(c\) SEC. 1240B of the Food Security Act of 1985 (16 U.S.C. 3839aa-2)
is amended as to read as follows:

A**SEC. 1240B. ESTABLISHMENT AND ADMINISTRATION OF PROGRAM.**

A(a) [Establishment]{.smallcaps}.C

> A(1) [In general]{.smallcaps}.CDuring each of the 2002 through 2012
> fiscal years, the Secretary may enter into agreements with producers
> and private landowners in which the producers and private landowners
> perform one or more practices in exchange for technical assistance,
> cost-share payments, and incentive payments provided by the Secretary.
>
> A(2) [Eligible assistance]{.smallcaps}.-A producer or private
> landowner that implements a practice in accordance with this chapter
> may receive-
>
> A(A) a cost-share payment or incentive payment; and
>
> A(B) technical assistance.

A(b) [Practices and Term]{.smallcaps}.-

> A(1) [Practices]{.smallcaps}.-A agreement under this chapter may apply
> to 1 or more structural practices, land management practices, wildlife
> habitat practices, and comprehensive nutrient management practices.
>
> A(2) [Term]{.smallcaps}.-A agreement under this chapter shall have a
> term thatC
>
> A(A) at a minimum, is equal to the period beginning on the date on
> which the agreement is entered into and ending on the date that is 1
> year after the date on which all practices under the agreement have
> been implemented; but
>
> A(B) does not to exceed 10 years; or
>
> A(C) is of a duration of time as determined by the Secretary depending
> on the practice involved.

A(c) [ranking of offers]{.smallcaps}.-

> A(1) [in general]{.smallcaps}.-When evaluating offers from producers
> and private landowners, the Secretary may consider-
>
> A(A) the conservation benefits of the offer;
>
> A(B) the cost-effectiveness of implementation of the conservation
> practices plan, so as to maximize the environmental benefits per
> dollar expended; and
>
> A(C) the amount the producer or private landowner is offering to
> contribute financially to the cost of the agreement to leverage
> Federal funds.
>
> A(d) [Payments]{.smallcaps}.C
>
> A(1) [Criteria for determining amount of payments]{.smallcaps}.-
>
> A(A) [in general]{.smallcaps}.-The amount of a cost share or incentive
> payment that a producer or private landowner would receive for
> performing one or more practices under a agreement shall be determined
> by the Secretary through rulemaking.
>
> A(B) [costs of practices]{.smallcaps}.-The Secretary shall establish
> the criteria for determining payment amounts under subparagraph (A)
> based on factors such as income foregone by the producer or private
> landowner and costs incurred by the producer or private land owner to
> implement the practice.
>
> A(C) [limitation on cost share.-]{.smallcaps}Except as provided in
> clause (i), the cost-share payments provided to a producer or private
> landowner proposing to implement 1 or more practices under the program
> shall be not more than 75 percent of the cost of the practice, as
> determined by the Secretary.
>
> A(i) [increased cost share]{.smallcaps}.-The Secretary may increase
> the amount of cost share payments provided to a producer under this
> paragraph to not more than 90 percent if the producer is a beginning
> farmer or rancher, a socially disadvantaged farmer, or a limited
> resource farmer.
>
> A(ii) [Cost-share assistance from other sources]{.smallcaps}.-Except
> as provided in clause (iii), any cost-share payments received by a
> producer from a State or private organization or person for the
> implementation of 1 or more practices on eligible land of the producer
> shall be in addition to the payments provided to the producer under
> this chapter.
>
> A(iii) [Other payments]{.smallcaps}.-A producer or private landowner
> shall not be eligible for cost-share payments for practices on
> eligible land under the program if the producer or private landowner
> receives cost-share payments or other benefits for the same practice
> on the same land under any program administered by the Secretary, as
> determined by the Secretary.

A(e) [Incentive Payments]{.smallcaps}.-The Secretary may make incentive
payments available to a producer or private landowner in an amount and
at a rate determined by the Secretary to be necessary to encourage the
producer or private landowner to perform or develop 1 or more practices,
consistent with the criteria contained in subsection (d)(1)(B).

A(f) [Modification or Termination of Agreements]{.smallcaps}.-

> A(1) [Voluntary modification or termination]{.smallcaps}.-Subject to
> paragraph (2), the Secretary may modify or terminate a agreement
> entered into with a producer or private landowner under this chapter
> if-
>
> A(A) the producer or private landowner agrees to the modification or
> termination; and
>
> A(B) the Secretary determines that the modification or termination is
> in the public interest.
>
> A(2) [Involuntary termination]{.smallcaps}.-The Secretary may
> terminate a agreement under this chapter if the Secretary determines
> that the producer or private landowner violated the agreement.

A(g) [Allocation of Funding]{.smallcaps}.-

> A(1) [in general]{.smallcaps}.-Of the funds made available to this
> chapter in section 1241(a)(5) (as redesignated in section 2901(a)(6))
> for each of fiscal years 2008 through 2012, 60 percent of the funds
> made available for cost-share payments and incentive payments shall be
> targeted at practices relating to livestock production.
>
> A(2) [exception]{.smallcaps}.-The funding limitation described in
> paragraph (1) shall not include funding for the regional water
> enhancement program under section 1240I of this chapter.

A(h) [Funding for Federally Recognized Native American Indian Tribes and
Alaska Native Corporations]{.smallcaps}.-The Secretary may enter into
alternative funding arrangements with federally recognized Native
American Indian Tribes and Alaska Native Corporations (including their
affiliated membership organizations) if the Secretary determines that
the goals and objectives of the program will be met by such
arrangements, and that statutory limitations regarding agreements with
individual producers as defined under this subtitle will not be exceeded
by any Tribal or Native Corporation member.

A(i) [klamath basin.-]{.smallcaps}The Secretary may provide funding to
carry out water conservation activities in the Klamath Basin, California
and Oregon.@.

\(d\) SEC. 1240C of the Food Security Act of 1985 (16 U.S.C. 3839aa-3)
is amended in paragraph (1) by inserting Aand private landowners@ after
Aproducers@.

\(e\) SEC. 1240D of the Food Security Act of 1985 (16 U.S.C. 3839aa-4)
is amended to read as follows:

A**SEC. 1240D. DUTIES OF PRODUCERS AND PRIVATE LANDOWNERS**.

ATo receive technical assistance, cost-share payments, or incentive
payments under the program, a producer or private landowner shall agreeC

> A(1) to implement a conservation practices plan (including a
> comprehensive nutrient management plan, if applicable) that describes
> conservation and environmental purposes to be achieved through 1 or
> more practices that are approved by the Secretary;
>
> A(2) not to conduct any practices on the land that would tend to
> defeat the purposes of the program;
>
> A(3) in the case of the violation of a term or condition of the
> agreement at anytime the producer or private landowner has control of
> the landC
>
> A(A) if the Secretary determines that the violation warrants
> termination of the agreementC
>
> A(i) to forfeit all rights to receive payments under the agreement;
> and
>
> A(ii) to refund to the Secretary all or a portion of the payments
> received by the producer or private landowner under the agreement,
> including any interest on the payments, as determined by the
> Secretary; or
>
> A(B) if the Secretary determines that the violation does not warrant
> termination of the agreement, to refund to the Secretary, or accept
> adjustments to, the payments provided to the producer or private
> landowner, as the Secretary determines to be appropriate;
>
> A(4) in the case of the transfer of the right and interest of the
> producer or private landowner in land subject to the agreement, unless
> the transferee of the right and interest agrees with the Secretary to
> assume all obligations of the agreement, to refund all cost-share
> payments and incentive payments received under the program, as
> determined by the Secretary;
>
> A(5) to supply information as required by the Secretary to determine
> compliance with the program conservation practices plan and
> requirements of the program; and
>
> A(6) to comply with such additional provisions as the Secretary
> determines are necessary to carry out the conservation practices
> plan.@.

\(f\) SEC. 1240E of the Food Security Act of 1985 (16 U.S.C. 3839aa-5)
is amended-

> \(1\) by striking the section heading and inserting:

A**SEC. 1240E. CONSERVATION PRACTICES PLAN**@; and

> \(2\) in subsection (a)-
>
> \(A\) in the stem-
>
> \(i\) by inserting Aor private landowner@ after Aproducer@; and
>
> \(ii\) by inserting Aconservation practices@ before Aplan@;and
>
> \(B\) in paragraph (2) by inserting Aconservation practices@ before
> Aplan@.

\(g\) SEC.1240F of the Food Security Act of 1985 (16 U.S.C. 3839aa-6) is
amended-

> \(1\) by amending paragraph (2) to read as follows:
>
> A(2) providing the producer or private landowner with information and
> training to aid in implementation of the conservation practices
> plan.@.

\(h\) SEC. 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7)
is repealed.

\(i\) SEC. 1240H of the Food Security Act of 1985 (16 U.S.C. 3839aa-8)
is amended-

> \(1\) by redesignating the section as 1240G;
>
> \(2\) in subsection (a) by striking Aagricultural production@, and
> inserting Aland use by producers and private landowners@;
>
> \(3\) in subsection (b)-
>
> \(A\) in paragraph (1) by inserting Aor private landowners@ after
> Aproducers@;
>
> \(B\) in paragraph (2)(A) by striking Apollution reduction@ and
> inserting Aconservation activities, especially tools that assist
> small-scale producers;
>
> \(C\) in paragraph (2)(B) by-
>
> \(i\) inserting Aand addressing regional resource concerns@ after
> Asoil@; and
>
> \(ii\) striking Aand@; and
>
> \(D\) in paragraph (3)-
>
> \(i\) by striking Aagricultural production@ and inserting Aland use by
> producers and private landowners@; and
>
> \(ii\) adding at the end the following:

A(C) technology transfer; and

A(D) farmer workshops and demonstration projects.@; and

> \(4\) by adding at the end a new subsection (d) that reads as follows:

A(d) Funding.-From the funds made available to carry out this chapter
under section 1241(a)(5) (as redesignated in section 2901(a)(6)), the
Secretary shall use \$100,000,000 to carry out this section for each of
fiscal years 2008 through 2012.@.

\(j\) section 1240I is redesignated as 1240H.

\(k\) Chapter 4 is amended by adding at the end the following-

**ASEC 1240I**.-**REGIONAL WATER ENHANCEMENT PROGRAM**.

A(a) [definitions]{.smallcaps}.-In this section-

> A(1) Partner.
>
> A(A) [in general]{.smallcaps}.-The term \>partner= means a person who
> is eligible to enter into an agreement with the Secretary to conduct a
> coordinated conservation project dealing with water quality and water
> conservation issues on a regional scale.
>
> A(B) [partners]{.smallcaps}.-a partner may be a-
>
> A(i) state government;
>
> A(ii) federally-recognized Indian tribe;
>
> A(iii) non-governmental organization;
>
> A(iv) local unit of government;
>
> A(v) a water district;
>
> A(vi) producer associations;
>
> A(vii) other persons, as determined by the Secretary; and
>
> A(viii) any combination of the above.
>
> A(2) Working Agricultural Land.-The term \>working agricultural land=
> includes-
>
> A(A) crop land;
>
> A(B) pasture land;
>
> A(D) grazing land; and
>
> A(E) orchard land.

A(b) [establishment]{.smallcaps}.-The Secretary shall establish a
cooperative conservation program, titled the Regional Water Enhancement
Program (RWEP), within the environmental quality incentives program to
improve water quality and water conservation on a regional scale to
benefit working agricultural lands and other lands surrounding working
agricultural lands.

A(c) [purpose]{.smallcaps} .-The purpose of the RWEP shall be to improve
water quality and water conservation on a regional scale to benefit
working agricultural lands and other lands surrounding working
agricultural lands, including fish and wildlife habitat, by selecting
and providing coordinated program assistance to water quality and water
conservation projects administered by partners at geographic levels
beyond that of individual working agricultural lands, such as-

> A(1) watersheds; and
>
> A(2) irrigation and drainage districts.

A(d) [priority issues]{.smallcaps} [and project
administration]{.smallcaps}.-

> A(1) [consultation]{.smallcaps}.-Partners, working with the Natural
> Resources Conservation Service at the State level and its advisory
> State Technical Committee, shall identify key water quality or water
> conservation priorities for a specific region, such as a watershed, in
> which a project would be conducted.
>
> A(2) [Grant process]{.smallcaps}.-The Secretary may award grants to
> partners that propose projects that-
>
> A(A) are selected through a competitive selection process;
>
> A(B) focus on a limited number of water quality and water conservation
> issues identified under paragraph (1);
>
> A(C) include performance incentives to-
>
> A(i) encourage a high percentage of producer participation in a
> project area; and
>
> A(ii) achieve cooperative conservation outcomes; and
>
> A(D) identify performance targets that must be achieved before funding
> for a project may be renewed.
>
> A(3) [project Renewals]{.smallcaps}.-Selected projects may be renewed
> depending on the evaluation of the Secretary about the achievement by
> the project of the performance targets established for the project.
>
> A(e) [funding.-]{.smallcaps}

From the funds made available to carry out this chapter under section
1241(a)(5) (as redesignated in section 2901(a)(6)), the Secretary shall
use \$175,000,000 to carry out this section for each of fiscal years
2008 through 2012.

**[ASEC. 1240J.-TEMPORARY ADMINISTRATION OF ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM]{.smallcaps}**.

A(a) [INTERIM ADMINISTRATION]{.smallcaps}.-

> A(1) [IN GENERAL]{.smallcaps}.-During the period beginning on the date
> of enactment of this section and ending on the termination date
> provided under paragraph (2), to ensure that technical assistance,
> cost-share payments, and other payments continue to be administered in
> an orderly manner until such time as the technical assistance,
> cost-share payments, and other payments can be provided through final
> regulations issued to implement the environmental quality incentives
> program, as amended by *farm bill 2007*, the Secretary shall, to the
> extent the terms and conditions of the programs under clauses (i)-(v)
> of subparagraph (A) are consistent with the environmental quality
> incentives program as amended by *farm bill 2007,* continue to-
>
> A(A) provide technical assistance, cost-share payments, and other
> payments under the terms and conditions of the-
>
> A(i) the Agricultural Management Assistance program, section 524 (b)
> of the Federal Crop Insurance Act (7 U.S.C. 1524(b)));
>
> A(ii) this chapter as it existed one day before the date of enactment
> of *farm bill 2007* ;
>
> A(iii) the Forest Land Enhancement program, section 4 of the
> Cooperative Forestry Assistance Act of 1978, (16 U.S.C. 2103); and
>
> A(iv) the ground and surface water conservation initiative under this
> chapter as it existed one day before the date of enactment of *farm
> bill 2007* ;
>
> A(v) the wildlife habitat incentives program, section 1240N of the
> Food Security Act of 1985, (16 U.S.C. 3839bb-1); and

A(B) use for those purposes-

> A(i) any funds available in the fiscal year from those programs; and
>
> A(ii) as the Secretary determines to be necessary, any funds
> authorized to be used to carry out the environmental quality
> incentives program as amended by *farm bill 2007*.
>
> A(2) [TERMINATION OF AUTHORITY]{.smallcaps}.-The authority of the
> Secretary to carry out paragraph (1), and the authority for the
> programs described clauses (i)-(iv) of paragraph (1)(A), shall
> terminate on the effective date of the final regulation implementing
> the environmental quality incentives program, as amended by *farm bill
> 2007*.

A(b) [PERMANENT ADMINISTRATION]{.smallcaps}.- Effective beginning on the
termination date provided under subsection (a)(2), the Secretary shall
provide technical assistance, cost-share payments, and incentive
payments for structural practices, land management practices, and
wildlife habitat practices performed on private lands in accordance with
final regulations issued to carry out the environmental quality
incentives program as amended by *farm bill 2007*.

A**SEC. 1240K. PERIOD OF** **AUTHORIZATION**.

AExcept as provided in section 1240J, this chapter shall be authorized
for the 2008 through 2012 fiscal years.@.

\(l\) [conforming amendments]{.smallcaps}.

> \(1\) The agricultural management assistance program, section 524(b)
> of the Federal Crop Insurance Act (7 U.S.C. 1524(b)) is-
>
> \(A\) authorized until the effective date of the final regulations for
> the environmental quality incentives program, as amended by *farm bill
> 2007*; and
>
> \(B\) repealed as of the effective date of the final regulations for
> the environmental quality incentives program, as amended by *farm bill
> 2007*.
>
> \(2\) The forest land enhancement program, section 4 of the
> Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103) is-
>
> \(A\) authorized until the effective date of the final regulations for
> the environmental quality incentives program, as amended by *farm bill
> 2007*; and
>
> \(B\) repealed as of the effective date of the final regulations for
> the environmental quality incentives program, as amended by *farm bill
> 2007*.
>
> \(3\) The wildlife habitat incentives program, section 1240N of the
> Food Security Act of 1985, (16 U.S.C. 3839bb-1) is-
>
> \(A\) authorized until the effective date of the final regulations for
> the environmental quality incentives program, as amended by *farm bill
> 2007*; and
>
> \(B\) repealed as of the effective date of the final regulations for
> the environmental quality incentives program, as amended by *farm bill
> 2007*.
>
> \(4\) ground and surface water conservation, section 1240(H) as
> redesignated in subsection (j)) (16 U.S.C. 3839aa-9) is-
>
> \(A\) authorized until the effective date of the final regulations for
> the environmental quality incentives program, as amended by *farm bill
> 2007*; and
>
> \(B\) repealed as of the effective date of the final regulations for
> the environmental quality incentives program, as amended by *farm bill
> 2007*.

**Subtitle H. Emergency Landscape Restoration Program**.

**SEC. 2801. EMERGENCY LANDSCAPE RESTORATION PROGRAM.**

\(a\) Chapter 5, subtitle D of the Food Security Act of 1985 is amended
by adding at the end the following:

**ASEC.1240R-EMERGENCY LANDSCAPE RESTORATION PROGRAM**

A(a) Definitions.CIn this section-

> A(1) [public assistance pool]{.smallcaps}.-The term \>public
> assistance pool= means-
>
> A(A) organizations that are eligible for technical assistance and cost
> share payments under this section and that assist working agricultural
> lands, including-
>
> A(i) a neighborhood association;
>
> A(ii) a city, county, or regional government, including a watershed
> council and a conservation district; and
>
> A(iii) other persons, as determined by the Secretary.
>
> A(2) [private assistance pool]{.smallcaps}-The term \>private
> assistance pool means persons who are eligible for technical
> assistance and cost share payments under this section, including
> producers, ranchers, operators, or landlords on working agricultural
> lands.
>
> A(3) [Recipient Pools]{.smallcaps}.-the term \>recipient pools= means
> a public assistance pool and a private assistance pool.
>
> A(4) [Secretary]{.smallcaps}.-The term \>Secretary= means the
> Secretary of Agriculture;

A(b) [Purposes]{.smallcaps}.-The purposes of the emergency landscape
restoration program are to rehabilitate watersheds and working
agricultural lands adversely affected by natural catastrophic events,
by-

> A(1) providing a source of assistance for restoring land back to its
> productive state;
>
> A(2) preventing further impairment of land and water;
>
> A(3) further protecting natural resources; and
>
> A(4) streamlining and simplifying legal authorities and funding for
> rehabilitating watersheds and rehabilitating working agricultural
> lands.

A(c) [Establishment]{.smallcaps}.-The Secretary shall carry out an
emergency landscape restoration program under which technical assistance
and cost share payments are made available to persons that are eligible
under one of the recipient pools as defined in subsection (a) to carry
out remedial activities to restore landscapes damaged byC

> A(1) fire;
>
> A(2) drought;
>
> A(3) flood; and
>
> A(4) other resource-impacting natural events, as determined by the
> Secretary.

A(d) [prioritization]{.smallcaps}.-The Secretary shall provide the
highest priority for those activities that protect human health and
safety.

A(e) [technical assistance and cost share]{.smallcaps}.-

> A(1) [in general]{.smallcaps}.-The Secretary shall provide technical
> assistance and cost share payments in amounts of up to 75% of the cost
> of remedial activities to rehabilitate watersheds and working
> agricultural lands, as described in paragraph (2).
>
> A(2) [remedial activities]{.smallcaps}.-Remedial activities that are
> eligible for technical assistance and cost share payments under this
> section include-
>
> A(A) removing debris from streams and agricultural lands;
>
> A(B) restoring destabilized streambanks;
>
> A(C) establishing cover on critically eroding lands;
>
> A(D) restoring fences;
>
> A(E) constructing conservation structures;
>
> A(F) providing water for livestock in drought situations;
>
> A(G) rehabilitating farm land;
>
> A(H) carrying out emergency water conservation measures; and
>
> A(I) other remedial activities as determined by the Secretary.

A(f) [Authorization of Appropriations]{.smallcaps}.C

> A(1) [In general]{.smallcaps}.-There are authorized to be appropriated
> to the Secretary to carry out this section such sums as are necessary
> for each of fiscal years 2008 through 2012, to remain available until
> expended.
>
> A(2) [Commodity credit corporation]{.smallcaps}.-Subject to the
> specific appropriation of funds to carry out this section, the
> Secretary may use the facilities and authorities of the Commodity
> Credit Corporation to carry out this section.

A(f) [TEMPORARY ADMINISTRATION OF EMERGENCY LANDSCAPE RESTORATION
PROGRAM]{.smallcaps} .

> A(1) [IN GENERAL]{.smallcaps}.-During the period beginning on the date
> of enactment of this section and ending on the termination date
> provided under paragraph (2), to ensure that technical assistance,
> cost-share payments, and other payments continue to be administered in
> an orderly manner until such time as the technical assistance,
> cost-share payments, and other payments can be provided through final
> regulations issued to implement the emergency landscape restoration
> program, *as amended by farm bill 2007,* the Secretary shall, to the
> extent the terms and conditions of the programs under clauses (i) and
> (ii) of subparagraph (A) are consistent with the emergency landscape
> restoration program as amended by *farm bill 2007*, continue to-
>
> A(A) provide technical assistance, cost-share payments, and other
> payments under the terms and conditions of the-
>
> A(i) Emergency Conservation Program, sections 401-402 of Pub. L.
> 95-334, (16 U.S.C. 2201, 2202); and
>
> A(ii) Emergency Watershed Program, section 403 of Pub. L. 95-334 (16
> U.S.C. 2203); and
>
> A(B) use for those purposes -
>
> A(i) any funds available in the fiscal year from those programs; and
>
> A(ii) as the Secretary determines to be necessary, any funds
> authorized to be used to carry out the emergency landscape restoration
> program, as amended by *farm bill 2007.*
>
> A(2) [TERMINATION OF AUTHORITY]{.smallcaps}.-The authority of the
> Secretary to carry out paragraph (1), and the authority for the
> programs described clauses (i)-(ii) of paragraph (1)(A), shall
> terminate on the effective date of the final regulation implementing
> the emergency landscape restoration program, as amended by *farm bill
> 2007.*
>
> A(3) [PERMANENT ADMINISTRATION]{.smallcaps}.C Effective beginning on
> the termination date provided under paragraph (2), the Secretary shall
> provide technical assistance, cost-share payments, and incentive
> payments in accordance with final regulations issued to carry out the
> emergency landscape restoration program, *as amended by farm bill
> 2007* .

A**SEC. 1236. PERIOD OF** **AUTHORIZATION**.

AExcept as provided in section 1240R(f), this section shall be
authorized for the period of the 2008 through 2012 fiscal years.@.

\(b\) [conforming amendments]{.smallcaps}.-

> \(1\) The emergency conservation program, sections 401-402 of Pub. L.
> 95-334, (16 U.S.C. 2201, 2202) is-
>
> \(A\) authorized until the effective date of the final regulations for
> the emergency landscape restoration program as amended by *farm bill
> 2007*; and
>
> \(B\) repealed as of the effective date of the final regulations for
> the emergency landscape restoration program as amended by *farm bill
> 2007*.
>
> \(2\) The emergency watershed program, section 403 of Pub. L. 95-334
> (16 U.S.C. 2203) is-
>
> \(A\) authorized until the effective date of the final regulations for
> the emergency landscape restoration program as amended by *farm bill
> 2007*; and
>
> \(B\) repealed as of the effective date of the final regulations for
> the emergency landscape restoration program as amended by *farm bill
> 2007*.

**Subtitle ICFunding and Administration**

**SEC. 2901. FUNDING AND ADMINISTRATION.**

> \(a\) Funding.-Section 1241(a) of the Food Security Act of 1985 (16
> U.S.C. 3841(a)) is amended-
>
> \(1\) in the matter preceding paragraph (1), to read as follows:
>
> A(a) [In General]{.smallcaps}.-The Secretary shall use the funds,
> facilities, and authorities of the Commodity Credit Corporation to
> carry out the following programs under subtitle D (including the
> provision of technical assistance) for each of fiscal years 2008
> through 2012 (or in the case of paragraph (3), for each of fiscal
> years 2008 and subsequent fiscal years):@;
>
> \(2\) by amending paragraph (3) to read as follows:

A(3) The conservation security program under subchapter A of chapter 2-

> A(A) using to the maximum extent practicable \$2,799,000,000 for the
> period of the 2008-2012 fiscal years;
>
> A(B) using to the maximum extent practicable \$5,678,000,000 for the
> period of the 2013-2017 fiscal years; and
>
> A(C) for fiscal year 2018 and each subsequent fiscal year to maintain
> at any 1 time not more than the total acreage that was enrolled at the
> conclusion of fiscal year 2017.@;

\(3\) by amending paragraph (4) to read as follows:

> A(4) the private lands protection program under subchapter B of
> chapter 2, using to the maximum extent practicable \$187,000,000 for
> each of fiscal years 2008 through 2012.@;

\(4\) by striking paragraph (5);

> \(5\) by redesignating paragraph (6) as paragraph (5);
>
> \(6\) by amending paragraph (5) (as redesignated) to read as follows:
>
> A(5) The environmental quality incentives program under chapter 4,
> using to the maximum extent practicable-

A(A) \$1,765,000,000 for each of fiscal years 2008 and 2009; and

A(B) \$1,795,000,000 for each of fiscal years 2010 through 2012.@;

> \(7\) by inserting a new paragraph (6) that reads as follows:
>
> A(6) Market-based approaches to conservation under section 1245, using
> to the maximum extent practicable \$10,000,000 for each of fiscal
> years 2008 through 2012.@; and
>
> \(8\) by striking paragraph (7).

\(b\) [conservation access]{.smallcaps}.-Section 1241 of the Food
Security Act of 1985 (16 U.S.C. 3841) is amended-

\(1\) by striking subsection (d); and

> \(2\) by inserting:

A(d) [Conservation Access]{.smallcaps}.-

> A(1) [In General]{.smallcaps}.-In the case of every program described
> in subsection (a) except as provided in paragraphs (2), for every
> fiscal year in which funding is made available for the program, 10% of
> the funds available for a fiscal year shall be used by the Secretary
> to assist-
>
> A(A) beginning farmers or ranchers, as defined in section 343(8) of
> the Consolidated Farm and Rural Development Act (7 U.S.C.1991(8)); and
>
> A(B) socially disadvantaged farmers or ranchers as defined in section
> 355(e)(2) of the Consolidated Farm and Rural Development Act (7
> U.S.C.2003(e)(2)).
>
> A(2) [acreage programs]{.smallcaps}.-In the case of the conservation
> reserve and wetlands reserve programs, 10% of the acreage authorized
> to be enrolled in any fiscal year shall be used to assist persons
> described in subparagraphs (A) and (B) of paragraph (1).
>
> A(3) [repooling]{.smallcaps}.-In any fiscal year, amounts not
> obligated under this subsection by a date determined by the Secretary
> through rulemaking shall be available for payments and technical
> assistance to all persons eligible for payments or technical
> assistance in that fiscal year under a program authorized under this
> title.
>
> A(4) [conservation innovation grants.]{.smallcaps}-Funding under
> paragraph (1) for conservation innovation grants as described in
> section 1240G, may be used for technology transfer, farmer to farmer
> workshops, and demonstrations of innovative conservation practices.
>
> A(5) [limited resource farmers or ranchers]{.smallcaps}.-The Secretary
> shall undertake efforts to assist limited resource farmers and
> ranchers, as defined by the Secretary to-
>
> A(A) take full advantage of the programs and services offered by the
> Secretary; and
>
> A(B) become economically viable producers of agricultural commodities
> and stewards of working agricultural lands.
>
> A(6) [technical assistance.-]{.smallcaps}The Secretary shall offer, to
> the maximum extent practicable, higher levels of technical assistance
> to beginning farmers or ranchers and socially disadvantaged farmers or
> ranchers than is otherwise made available to producers participating
> in programs under this title.

**Subtitle J-Market Based Approaches to Conservation**

**SEC. 3001.-MARKET BASED APPROACHES TO CONSERVATION.**

Subtitle E of the Food Security Act of 1985 (16 U.S.C. 3841 et seq.) is
amended by adding at the end:

**ASEC. 1245.-MARKET BASED APPROACHES TO CONSERVATION.**

A(a) [findings.B]{.smallcaps}

> A(1) Many conservation and environmental benefits produced on U.S.
> farms and private forest lands do not have an assigned value in the
> market place or lack a private market altogether.
>
> A(2) While private markets for environmental goods and services are
> emerging, their viability has been hampered by several barriers. The
> Federal government can help overcome these barriers and promote the
> establishment of markets for agricultural and forestry conservation
> activities.
>
> A(3) Generating substantial private-sector demand for environmental
> goods and services hinges on the ability to use environmental credits
> generated by agricultural and forest conservation activities.

A(b) [purpose.]{.smallcaps}-The purpose of this section is to facilitate
the development and effective operation of private sector market-based
approaches for environmental goods and services produced by agriculture
and forests.

A(c) [implementation.]{.smallcaps}-To carry out the purposes of this
section, the Secretary may conduct research and analysis; contract with
universities or other entities; and award grants and cooperative
agreements to:

> A(1) develop uniform standards for quantifying environmental benefits
>
> A(2) establish reporting and credit registries; and
>
> A(3) promote actions that facilitate the development and functioning
> of environmental service markets involving agriculture and forestry.

A(d) [creation of the forest and agriculture environmental services
standards board]{.smallcaps}.-

> A(1) The President shall establish a Forest and Agriculture
> Environmental Services Standards Board (Board) to develop uniform
> standards for quantifying environmental services from land management
> and agricultural activities in order to facilitate the development of
> credit markets for forest and agriculture based conservation and land
> management activities.
>
> A(2) The President may designate a member of the Board as the Chair of
> the Board established in paragraph (1) .
>
> A(3) The Board shall be comprised of at least seven Federal members
> including the Secretaries of Agriculture, Interior, Energy, Commerce,
> and Transportation; the Administrator of the Environmental Protection
> Agency; the Commander of the Army Corps of Engineers; and other
> representatives as determined by the President.
>
> A(4) The Board is authorized to form subcommittees to address specific
> issues and establish a decision-making process whereby the agencies
> represented on the Board can agree to abide by the decisions of the
> Board.
>
> A(5) Federal agencies are authorized to adopt board standards for
> quantifying environmental services that establish credits to meet
> requirements of environmental and conservation programs under
> authorities such as-
>
> A(A) section 404 of the Federal Water Pollution Control Act (33 U.S.C.
> 1344); and
>
> A(B) the Endangered Species Act (16 U.S.C. 1531-1544).

**Subtitle K-Payment Limits, Direct Attribution, and Adjusted Gross
Income Limitation**

**SEC. 3101.-[PAYMENT LIMITS, DIRECT ATTRIBUTION, AND ADJUSTED GROSS
INCOME LIMITATION.]{.smallcaps}**

\(a\) [definitions]{.smallcaps}.-In this subtitle-

> \(1\) Average Adjusted Gross Income.-The term \>average adjusted gross
> income=, with respect to a person or legal entity means the 3-year
> average of the adjusted gross income or comparable measure of the
> income of the person or legal entity over the 3 preceding tax years,
> as determined by the Secretary.
>
> \(2\) [legal entity]{.smallcaps}.-The term \>legal entity= means an
> entity that is created under Federal or State law and that-
>
> \(A\) owns land or an agricultural commodity; or
>
> \(B\) produces an agricultural commodity.
>
> \(3\) [payment.]{.smallcaps}-The term \>payment= means a payment
> provided under a program under subtitle D of title XII of the Food
> Security Act of 1985 (16 U.S.C. 3830-3839bb-3).
>
> \(4\) [person]{.smallcaps}.-The term \>person= means a natural person,
> and does not include a legal entity.

\(b\) [payments for conservation practices]{.smallcaps}.-The total
amount of payments that a person or a legal entity (except a joint
venture or a general partnership) may receive directly or indirectly in
any year shall not exceed-

> \(1\) In the case of the conservation reserve program under subchapter
> B, chapter 1, subtitle D of title XII of the Food Security Act of 1985
> (16 U.S.C. 3831-3835a), \$100,000 for annual rental payments ; and
>
> \(2\) in the case of other programs under subtitle D, title XII of the
> Food Security Act of 1985 (16 U.S.C. 3837-3839bb-3)-
>
> \(A\) in the case of the wetlands reserve program under subchapter C,
> chapter 1, (16 U.S.C. 3837-3837e), \$50,000 for easement payments,
> except with respect to payments for 30 year or perpetual easements;
>
> \(B\) in the case of the conservation security program under
> subchapter A, chapter 2, subtitle D, title XII of the Food Security
> Act of 1985 (16 U.S.C. 3838-3838c)-
>
> \(i\) \$35,000 for progressive tier practices; and
>
> \(ii\) \$45,000 for master tier practices; and
>
> \(C\) in the case of the environmental quality incentives program
> under chapter 4, \$450,000 for all contracts entered into during any 6
> year period (excluding funding arrangements with federally recognized
> Native American Indian Tribes or Alaska Native Corporations under
> section 1240B(h)), regardless of the number of contracts entered into
> under the chapter.

\(c\) [direct attribution]{.smallcaps}.-

> \(1\) [in general]{.smallcaps}.-In implementing the provisions of
> subsection (b), the Secretary shall issue regulations as are necessary
> to ensure that the total amount of payments are attributed to a person
> by taking into account the direct and indirect ownership interests of
> the person in a legal entity that is eligible to receive such
> payments.
>
> \(2\) [payments to a person]{.smallcaps}.-Every payment made directly
> to a person shall be combined with the person=s pro rata interest in
> payments received by a legal entity in which the person has a direct
> or indirect ownership interest.
>
> \(3\) [payments to a legal entity]{.smallcaps}.-
>
> \(A\) [in general.-]{.smallcaps}Every payment made to a legal entity
> shall be attributed to those persons who have a direct or indirect
> ownership interest in the legal entity.
>
> \(B\) [attribution of payments]{.smallcaps}.-
>
> \(i\) [payment limits]{.smallcaps}.-Except as provided in clause (ii),
> payments made to a legal entity shall not exceed the amounts specified
> in subsection (b).
>
> \(ii\) [exception]{.smallcaps}.-Payments made to a joint venture or a
> general partnership shall not exceed, for each payment specified in
> subsection (b), the amount determined by multiplying the maximum
> payment amount specified in subsection (b) by the number of persons
> and legal entities (other than joint ventures and general
> partnerships) that comprise the ownership of the joint venture or
> general partnership.

\(4\) [four levels of attribution for embedded entities]{.smallcaps}.

> \(A\) [in general]{.smallcaps}.-Attribution of payments made to legal
> entities shall be traced through four levels of ownership in entities.
>
> \(B\) [first level]{.smallcaps}.-Any payments made to a legal entity
> (a first-tier entity) that is owned in whole or in part by a person
> shall be attributed to the person in an amount the Secretary
> determines to represent the direct ownership in the first-tier entity
> by the person.
>
> \(C\) [second level]{.smallcaps}.-Any payments made to a first-tier
> entity that is owned in whole or in part by another legal entity (a
> second-tier entity) shall be attributed to the second-tier entity in
> proportion to the second-tier entity=s ownership in the first-tier
> entity. If the second-tier entity is owned in whole or in part by a
> person, the amount of the payment made to the first-tier entity shall
> be attributed to the person in amount the Secretary determines to
> represent the indirect ownership in the first-tier entity by the
> person.
>
> \(D\) [third and fourth levels]{.smallcaps}.-The Secretary shall
> attribute payments at the third and fourth tiers of ownership in the
> same manner as specified in subparagraph (B) unless the fourth-tier of
> ownership is that of a fourth-tier entity and not that of a person, in
> which case the Secretary shall reduce the amount of the payment to be
> made to the first-tier entity in the amount that the Secretary
> determines to represent the indirect ownership in the first-tier
> entity by the fourth-tier entity.

\(d\) [adjusted gross income limitations]{.smallcaps}.-

> \(1\) [in general]{.smallcaps}.-A person or legal entity shall not be
> eligible to receive any payment specified in subsection (b) during a
> year if the average adjusted gross income of the person or legal
> entity for the preceding 3 years exceeds \$2,500,000, unless not less
> than 75 percent of the average adjusted gross income of the person or
> legal entity is derived from farming, ranching, or forestry
> operations, as determined by the Secretary.
>
> \(2\) [Special rules.-]{.smallcaps}The Secretary shall issue
> regulations that provide a method to determine average adjusted gross
> income in the case of a-
>
> \(A\) legal entity that is not required to file a Federal income tax
> return; or
>
> \(B\) person or legal entity that did not have taxable income in one
> or more of the tax years used to determine the average adjusted gross
> income.

\(3\) [Certification]{.smallcaps}.-A person or legal entity shall
provide to the Secretary-

> \(A\) certification by a certified public accountant or another third
> party that the average adjusted gross income of the person or legal
> entity does not exceed the limitation specified in paragraph (1); or
>
> \(B\) other information and documentation regarding the adjusted gross
> income of the person or legal entity.
>
> \(4\) [Commensurate Reduction]{.smallcaps}-In the case of a benefit
> described in subsection (b) made in a year to legal entity, the amount
> of the benefit shall be reduced by an amount that is commensurate with
> the direct and indirect ownership interest in the legal entity of each
> person who has an average adjusted gross income in excess of the
> limitation specified in paragraph (1) or (2).