SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Conservation Investment Act of 
2001''.

SEC. 2. INCREASE IN MAXIMUM NUMBER OF ACRES AUTHORIZED TO BE ENROLLED 
              IN THE CONSERVATION RESERVE PROGRAM.

    Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 
3831(d)) is amended--
            (1) by striking ``36,400,000'' and inserting 
        ``40,000,000''; and
            (2) by striking ``2002'' and inserting ``2011''.

SEC. 3. GRASSLAND RESERVE PROGRAM.

    (a) In General.--Chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by adding at 
the end the following new subchapter:

               ``Subchapter D--Grassland Reserve Program

``SEC. 1238. GRASSLAND RESERVE PROGRAM.

    ``(a) Establishment.--The Secretary, acting through the Farm 
Service Agency, shall establish a grassland reserve program (referred 
to in this subchapter as the `program') to assist owners in restoring 
and conserving eligible land described in subsection (c).
    ``(b) Enrollment Conditions.--
            ``(1) Maximum enrollment.--The total number of acres 
        enrolled in the program shall not exceed 3,000,000 acres, not 
        more than 1,500,000 of which shall be restored grassland, and 
        not more than 1,500,000 of which shall be virgin (never 
        cultivated) grassland.
            ``(2) Methods of enrollment.--The Secretary shall enroll in 
        the program for a willing owner not less than 100 contiguous 
        acres of land west of the 90th meridian or not less than 50 
        contiguous acres of land east of the 90th meridian through 10-
        year, 15-year, or 20-year easements.
    ``(c) Eligible Land.--Land shall be eligible to be enrolled in the 
program if the Secretary determines that the land is--
            ``(1) natural grass or shrubland;
            ``(2) land that--
                    ``(A) is located in an area that has been 
                historically dominated by natural grass or shrubland; 
                and
                    ``(B) has potential to serve as habitat for animal 
                or plant populations of significant ecological value if 
                the land is restored to natural grass or shrubland; or
            ``(3) land that is incidental to land described in 
        paragraph (1) or (2), if that incidental land is determined by 
        the Secretary to be necessary for the efficient administration 
        of the easement.

``SEC. 1238A. EASEMENTS AND AGREEMENTS.

    ``(a) Requirements of Landowner.--To be eligible to enroll land in 
the program, the owner of the land shall--
            ``(1) grant an easement that runs with the land to the 
        Secretary;
            ``(2) create and record an appropriate deed restriction in 
        accordance with applicable State law to reflect the easement;
            ``(3) provide a written statement of consent to the 
        easement signed by persons holding a security interest or any 
        vested interest in the land;
            ``(4) provide proof of unencumbered title to the underlying 
        fee interest in the land that is the subject of the easement;
            ``(5) agree to comply with the terms of the easement and 
        related restoration agreements;
            ``(6) subject to paragraph (7), agree to the permanent 
        retirement of any existing cropland base and allotment history 
        for the land under any program administered by the Secretary; 
        and
            ``(7) agree that the Secretary shall have the right to 
        suspend or terminate the easement during any time of war, 
        extreme drought, or famine, and, in the event of such a 
        suspension or termination, agree to accept such adjustment of 
        payments under section 1238B as the Secretary may make in 
        accordance with regulations.
    ``(b) Terms of Easement.--An easement under subsection (a) shall--
            ``(1) permit--
                    ``(A) common grazing practices on the land in a 
                manner that is consistent with maintaining the 
                viability of natural grass and shrub species indigenous 
                to that locality;
                    ``(B) haying, mowing, or haying for seed 
                production, except that such uses shall not be 
                permitted until after the end of the nesting season for 
                birds in the local area which are in significant 
                decline or are conserved pursuant to State or Federal 
                law, as determined by the Natural Resources 
                Conservation Service State conservationist; and
                    ``(C) construction of fire breaks and fences, 
                including placement of the posts necessary for fences;
            ``(2) prohibit--
                    ``(A) the production of row-crops, fruit trees, 
                vineyards, or any other agricultural commodity that 
                requires breaking the soil surface; and
                    ``(B) the conduct of any other activities that 
                would disturb the surface of the land covered by the 
                easement, including--
                            ``(i) plowing; and
                            ``(ii) disking; and
            ``(3) include such additional provisions as the Secretary 
        determines are appropriate to carry out or facilitate the 
        administration of this subchapter.
    ``(c) Ranking Easement Applications.--
            ``(1) Establishment of criteria.--The Secretary shall 
        establish criteria to evaluate and rank applications for 
        easements under this subchapter.
            ``(2) Emphasis.--In establishing the criteria, the 
        Secretary shall emphasize support for native grass and 
        shrubland, grazing operations, and plant and animal 
        biodiversity.
    ``(d) Restoration Agreements.--The Secretary shall prescribe the 
terms by which grassland that is subject to an easement under the 
program shall be restored. The agreement shall include duties of the 
land owner and the Secretary, including the Federal share of 
restoration payments and technical assistance.
    ``(e) Violations.--
            ``(1) In general.--On the violation of the terms or 
        conditions of an easement or restoration agreement entered into 
        under this section--
                    ``(A) the easement shall remain in force; and
                    ``(B) 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.
            ``(2) Periodic inspections.--The Secretary shall conduct 
        periodic inspections of land subject to easements under this 
        subchapter to ensure that the terms of the easements and 
        restoration agreements are being met, after providing the 
        landowner adequate notice of inspections. The Secretary may not 
        prohibit the landowner or a representative of the landowner 
        from being present during inspections.

``SEC. 1238B. DUTIES OF SECRETARY.

    ``(a) In General.--In return for the granting of an easement by an 
owner under this subchapter, the Secretary shall make easement payments 
and payments of the Federal share of restoration and provide technical 
assistance to the owner in accordance with this section.
    ``(b) Easement Payments.--In return for the granting of an easement 
by an owner under this subchapter, the Secretary shall make annual 
easement payments to the owner in an amount equal to the grazing value 
of the land for the period that the land is encumbered by the easement.
    ``(c) Federal Share of Restoration.--The Secretary shall make 
payments to the owner of not more than--
            ``(1) in the case of virgin (never cultivated) grassland, 
        90 percent of the costs of carrying out measures and practices 
        necessary to restore grassland functions and values; or
            ``(2) in the case of restored grassland, 75 percent of such 
        costs.
    ``(d) Technical Assistance.--
            ``(1) In general.--The Secretary shall provide owners with 
        technical assistance to execute easement documents and restore 
        the grassland.
            ``(2) Reimbursement by commodity credit corporation.--The 
        Commodity Credit Corporation shall reimburse the Secretary, 
        acting through the Farm Service Agency, for not more than 10 
        percent of the cost of acquisition of easement and the Federal 
        share of the restoration payments obligated for that fiscal 
        year.
    ``(e) Payments to Others.--If an owner who is entitled to a payment 
under this subchapter dies, becomes incompetent, is otherwise unable to 
receive the payment, or is succeeded by another person who renders or 
completes the required performance, the Secretary shall make the 
payment, in accordance with regulations promulgated by the Secretary 
and without regard to any other provision of law, in such manner as the 
Secretary determines is fair and reasonable in light of all the 
circumstances.
    ``(f) Other Payments.--Easement payments received by an owner under 
this subchapter shall be in addition to, and not affect, the total 
amount of payments that the owner is otherwise eligible to receive 
under other Federal laws.

``SEC. 1238C. ADMINISTRATION.

    ``(a) Delegation to Private Organizations or State Agencies.--
            ``(1) In general.--The Secretary shall permit a private 
        conservation or land trust organization or a State agency to 
        hold and enforce an easement under this subchapter, in lieu of 
        the Secretary, if--
                    ``(A) the Secretary determines that granting such 
                permission is likely to promote grassland conservation; 
                and
                    ``(B) the landowner agrees to allow the private 
                conservation or land trust organization or a State 
                agency to hold and enforce the easement.
            ``(2) Application.--An organization that desires to hold an 
        easement under this subchapter shall apply to the Secretary for 
        approval.
            ``(3) Approval by secretary.--The Secretary shall approve 
        an organization under this subchapter that is constituted for 
        conservation or ranching purposes and is competent to 
        administer grassland easements.
            ``(4) Reassignment.--If an organization holding an easement 
        on land under this subchapter terminates--
                    ``(A) the owner of the land shall reassign the 
                easement to another organization described in paragraph 
                (1) or to the Secretary; and
                    ``(B) the owner and the new organization shall 
                notify the Secretary in writing that a reassignment for 
                termination has been made.
    ``(b) Regulations.--Not later than 180 days after the date of 
enactment of this subchapter, the Secretary shall issue such 
regulations as are necessary to carry out this subchapter.''.
    (b) Funding.--Section 1241(a)(2) of such Act (16 U.S.C. 3841(a)(2)) 
is amended by striking ``subchapter C'' and inserting ``subchapters C 
and D''.

SEC. 4. INCREASE IN MAXIMUM NUMBER OF ACRES AUTHORIZED TO BE ENROLLED 
              IN THE WETLANDS RESERVE PROGRAM.

    Section 1237(b)(1) of the Food Security Act of 1985 (16 U.S.C. 
3837(b)(1)) is amended to read as follows:
            ``(1) Maximum enrollment.--The total number of acres 
        enrolled in the wetlands reserve program shall not exceed--
                    ``(A) 1,225,000 acres during fiscal year 2002;
                    ``(B) 1,375,000 acres during fiscal year 2003;
                    ``(C) 1,525,000 acres during fiscal year 2004;
                    ``(D) 1,675,000 acres during fiscal year 2005;
                    ``(E) 1,825,000 acres during fiscal year 2006;
                    ``(F) 1,975,000 acres during fiscal year 2007;
                    ``(G) 2,125,000 acres during fiscal year 2008;
                    ``(H) 2,275,000 acres during fiscal year 2009;
                    ``(I) 2,425,000 acres during fiscal year 2010; or
                    ``(J) 2,575,000 acres during fiscal year 2011.''.

SEC. 5. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

    (a) Funding Increase.--Section 1241(b)(1) of the Food Security Act 
of 1985 (16 U.S.C. 3841(b)(1)) is amended--
            (1) by striking ``and'' the first place it appears; and
            (2) by striking ``2002,'' and inserting ``2001, 
        $1,400,000,000 for fiscal year 2002, and $1,200,000,000 for 
        each of fiscal years 2003 through 2011,''.
    (b) Term of Contracts.--Section 1240B(b)(2) of such Act (16 U.S.C. 
3839aa-2(b)(2)) is amended by striking ``5, nor more than 10,'' and 
inserting ``1 year nor more than 10''.
    (c) Repeal of Payment Limitations.--Section 1240G of such Act (16 
U.S.C. 3839aa-7) is repealed.

SEC. 6. FUNDING OF WILDLIFE HABITAT INCENTIVES PROGRAM.

    Section 387(c) of the Federal Agriculture Improvement and Reform 
Act of 1996 (16 U.S.C. 3836a(c)) is amended to read as follows:
    ``(c) Funding.--To carry out this section, there shall be made 
available $70,000,000 for fiscal year 2002, and $50,000,000 for each of 
fiscal years 2003 through 2011, from funds made available to carry out 
subchapter B of chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3831 et seq.).''.

SEC. 7. FUNDING OF FARMLAND PROTECTION PROGRAM.

    Section 388(c) of the Federal Agriculture Improvement and Reform 
Act of 1996 (16 U.S.C. 3830 note) is amended to read as follows:
    ``(c) Funding.--In each of fiscal years 2002 through 2011, the 
Secretary shall use not more than $50,000,000 of the funds of the 
Commodity Credit Corporation to carry out this section.''.

SEC. 8. SMALL WATERSHED REHABILITATION AMENDMENTS OF 2000.

    Section 14(h) of the Watershed Protection and Flood Prevention Act 
(16 U.S.C. 1010(h)) is amended--
            (1) by adding ``and'' at the end of paragraph (1); and
            (2) by striking paragraphs (2) through (5) and inserting 
        the following:
            ``(2) $60,000,000 for each of fiscal years 2002 through 
        2011.''.

SEC. 9. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on October 1, 
2001.
Conservation Investment Act of 2001 - Amends the Food Security Act of 1985 to increase maximum acreage amounts for the conservation reserve program and the wetlands reserve program.Directs the Secretary of Agriculture to establish a grassland reserve program for land that is or has historically been natural grass or shrubland and has significant potential for animal or plant restoration. Sets forth provisions respecting landowner easement payments and permitted and prohibited practices. Extends funding (increases FY 2002 amounts) for the environmental quality incentives program. Revises contract term provisions. Repeals payment limitation provisions.Amends the Federal Agriculture Improvement and Reform Act of 1996 to: (1) extend funding (increases FY 2002 amounts) for the wildlife habitat incentives program; and (2) provide annual amounts through FY 2011 for the farmland protection program.Amends the Watershed Protection and Flood Prevention Act to increase and extend funding for rehabilitation of water resource structural measures near or past their expected life expectancy.
To reauthorize, improve, and expand conservation programs administered by the Department of Agriculture.