SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Conservation 
Incentives Program Act of 1995''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Establishment and administration of conservation incentive 
                            program.
Sec. 4. Program priorities and coordination.
Sec. 5. Duties of operators.
Sec. 6. Duties of the secretary.
Sec. 7. Eligible lands.
Sec. 8. Funding.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Conservation practice.--The term ``conservation 
        practice'' means a structural practice, vegetative practice, or 
        management practice that is used to protect soil, water, and 
        related resources and is tailored to local resource conditions.
            (2) Structural practice.--The term ``structural practice'' 
        means a practice or measure that is constructed, such as a 
        waste treatment lagoon, waste storage structure, terrace, 
        grassed waterway, and such other structures as the Secretary 
        considers appropriate.
            (3) Vegetative practice.--The term ``vegetative practice'' 
        means a practice or measure that uses vegetation to protect 
        soil, water, and related resources, such as the use of crop 
        rotation, cover crops, wildlife plantings, and such other 
        practices as the Secretary considers appropriate.
            (4) Management practice.--The term ``management practice'' 
        means a practice or measure that is used to manage crops, 
        livestock, nutrients, or pesticides, and such other practices 
        as the Secretary considers appropriate.
            (5) Program plan.--The term ``program plan'' means a plan 
        that includes an evaluation of the farm or ranch resources, a 
        record of resource management decision made by the farmer or 
        rancher, a schedule for implementing the plan components, a 
        list of conservation practices eligible for cost-share and 
        incentives, and an estimated total cost of the plan.
            (6) Large confined livestock operations.--The term ``large 
        confined livestock operation'' means a farm or ranch that--
                    (A) is a confined animal feeding operation; and
                    (B) has more than--
                            (i) 700 mature dairy cattle;
                            (ii) 1,000 beef cattle;
                            (iii) 100,000 laying hens or broilers;
                            (iv) 55,000 turkeys;
                            (v) 2,500 swine; or
                            (vi) 10,000 sheep or lambs.
            (7) Operator.--The term ``operator'' means a person who is 
        engaged in crop or livestock production as defined by the 
        Secretary.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 3. ESTABLISHMENT AND ADMINISTRATION OF CONSERVATION INCENTIVE 
              PROGRAM.

    (a) Establishment.--During the fiscal years 1996 through 2005, the 
Secretary shall carry out a conservation incentive program under this 
Act to provide technical assistance, cost-sharing payments, and 
incentive payments to operators who enter into contracts with the 
Secretary to develop and implement conservation practices.
    (b) Purpose.--It is the purpose of the conservation incentive 
program--
            (1) to carry out a conservation program that uses 
        incentives and technical assistance to solve locally identified 
        resource problems from agricultural activities and that 
        provides--
                    (A) flexible technical and financial assistance to 
                operators that face the most serious threats to soil, 
                water, and related resources, including grazing lands, 
                wetlands, and wildlife habitat;
                    (B) assistance to operators in complying with 
                Federal and State environmental laws, and encourages 
                long term agricultural sustainability;
                    (C) assistance to operators in making beneficial, 
                cost-effective changes to cropping systems, grazing 
                management, manure management, nutrient, pest, or 
                irrigation management, land uses, or other measures 
                needed to conserve and improve soil, water, and related 
                natural resources; and
                    (D) simplification of the conservation planning 
                process to reduce administrative burdens on operators.
            (2) to complement other Federal and State programs to 
        provide--
                    (A) optimum and effective use of available Federal 
                and State programs at the local level where resource 
                problems exist;
                    (B) coordination of the Federal and State programs 
                through the State technical committees established 
                under section 1261 of the Food Security Act of 1985 (16 
                U.S.C. 3861); and
                    (C) development of a performance measurement 
                process for each local resource problem area that 
                reflects progress in program implementation and 
                resolution of the resource problem.
    (c) Types of Assistance.--
            (1) Technical assistance.--The Secretary shall use 
        conservation incentive program funds to provide operators with 
        technical assistance to develop a program plan and design 
        program plan components. An operator who develops and 
        implements a program plan approved by the Natural Resources 
        Conservation Service and the local conservation district shall 
        be eligible for additional technical assistance from 
        conservation incentive program funds, including assistance in 
        laying out the program plan components on the farm or ranch, 
        training on operation and maintenance of the plan components, 
        and assistance in evaluating program plan performance.
            (2) Cost-share.--Structural practices and vegetative 
        practices shall be eligible for cost-share payments or 
        technical assistance, or both, as determined by the Secretary.
            (3) Incentive payments.--Management practices shall be 
        eligible for incentive payments or technical assistance, or 
        both, as determined by the Secretary.
    (d) Contracts.--
            (1) Term and conditions.--A contract between an operator 
        and the Secretary under the conservation incentives program 
        may--
                    (A) apply to 1 or more conservation practices;
                    (B) have a term of not more than 10 years, as 
                determined appropriate by the Secretary, depending on 
                the conservation practice or practices covered by the 
                contract; and
                    (C) provide cost-share and incentive payments.
            (2) Concurrence of owner.--If the operator is a tenant, the 
        operator shall obtain the concurrence of the owner of the land 
        before the conservation incentive program contract is accepted 
        by the Secretary.
    (e) Provision of Assistance.--
            (1) Limitations on amount of payments.--The total amount of 
        cost-share and incentive payments paid to a person under the 
        conservation incentives program may not exceed--
                    (A) $10,000 for any fiscal year for one year 
                contract; or
                    (B) $75,000 for any multiyear contract.
            (2) Payment increments.--The Secretary shall make payments 
        for multiyear contracts in annual increments. The entire 
        contract obligation may be paid in one year when the operator 
        is required to make a major initial investment based on the 
        contract, as determined by the Secretary.
            (3) Federal share of cost-share payments.--The Federal 
        share of cost-share payments to an operator proposing to 
        implement 1 or more structural or vegetative practices, or 
        both, as part of an approved program plan shall not receive 
        more than 75 percent of the projected cost of the practice, as 
        determined by the Secretary.
            (4) Special rule for livestock operations.--An operator of 
        a large confined livestock operation shall not be eligible for 
        cost-sharing on structural and vegetative practices to 
        construct an animal waste management facility, but shall be 
        eligible for incentive payments and technical assistance. An 
        operator of a confined livestock operation, regardless of size, 
        that has been in operation for less than 5 years shall not be 
        eligible for cost-share on structural and vegetative practices 
        to construct an animal waste management facility, but shall be 
        eligible of technical assistance.
            (5) Federal share of incentive payments.--The Secretary 
        shall make incentive payments in an amount and at a rate 
        determined by the Secretary to be necessary to encourage an 
        operator to perform 1 or more management practices, when 
necessary to attain the purposes of the conservation incentives program 
and in the public interest as determined by the Secretary.
            (6) Funding for technical assistance.--The Secretary shall 
        allocate funding for the provision of technical assistance 
        according to the purpose and projected cost for which the 
        technical assistance is provided in a fiscal year. The receipt 
        of technical assistance under the conservation incentives 
        program shall not affect the eligibility of the operator to 
        receive technical assistance under other authorities of law 
        available to the Secretary.
    (f) Modification or Termination of Contracts.--
            (1) Voluntary modification or termination.--The Secretary 
        may modify or terminate a contract entered into with an 
        operator under the conservation incentives program if--
                    (A) the operator agrees to the modification or 
                termination; and
                    (B) the Secretary determines that the modification 
                or termination is in the public interest.
            (2) Involuntary termination.--The Secretary may terminate a 
        contract under the conservation incentives program if the 
        Secretary determines that the operator violated the contract.
    (g) Non-Federal Assistance.--The Secretary may request the services 
of a State water quality agency, State fish and wildlife agency, State 
forestry agency, or any other governmental or private resource 
considered appropriate to assist in providing the technical assistance 
necessary for the development and implementation of a conservation 
practice.
    (h) Regulations.--Within 180 days after the date of the enactment 
of this Act, the Secretary shall issue regulations to administrator of 
the conservation incentive program.

SEC. 4. PROGRAM PRIORITIES AND COORDINATION.

    (a) Priorities.--The Secretary shall provide technical assistance, 
cost-share payments, and incentive payments to operators in a region, 
watershed, or conservation priority area under the conservation 
incentives program based on the significance of the soil, water, and 
related natural resource problems in the region, watershed, or area.
    (b) Coordination of Priorities.--The Secretary shall coordinate the 
establishment of priorities within a State or multiple States for large 
interstate regions with other Federal and State programs through the 
State technical Committee established under section 1261 of the Food 
Security Act of 1985 (16 U.S.C. 3861) to optimize program effectiveness 
and maximize environmental benefits for per dollar of expenditures.
    (c) Priority Criteria.--The Secretary shall establish national 
criteria for selecting priority areas.
    (d) State and Local Contributions.--The Secretary shall accord a 
higher priority to operations located within watersheds, regions, or 
conservation priority areas in which State or local governments have 
provided or will provide, financial or technical assistance to the 
operators for the same conservation or environmental purposes.
    (e) Priority Lands.--The Secretary shall accord a higher priority 
to installing conservation practices on lands on which agricultural 
production has been determined to contribute to, or create, the 
potential for failure to meet applicable water quality standards or 
other environmental objectives of Federal and State law.

SEC. 5. DUTIES OF OPERATORS.

    To receive technical assistance, cost-sharing payments, or 
incentives payments under the conservation incentives program, an 
operator shall agree--
            (1) to implement a program plan that describes conservation 
        and environmental goals to be achieved through one or more 
        conservation practices approved by the Secretary;
            (2) not to conduct any practices on the farm or ranch that 
        would tend to defeat the purpose of the conservation incentives 
        program;
            (3) on the violation of a term or condition of the contract 
        at any time the operator has control of the land, to refund any 
        cost-sharing or incentive payment received with interest, and 
        forfeit any future payments under the conservation incentives 
        program, as determined by the Secretary;
            (4) on the transfer of the right and interest of the 
        operator in land subject to the contract, unless the transferee 
        of the right and interest agrees with the Secretary to assume 
        all obligations of the contract, to refund all cost-sharing 
        payments and incentive payments received under the conservation 
        incentives program, as determined by the Secretary;
            (5) to supply information as required by the Secretary to 
        determine compliance with the program plan and requirements of 
        the conservation incentives program; and
            (6) to comply with such additional provisions as the 
        Secretary determines are necessary to carry out the 
        conservation incentives program.

SEC. 6. DUTIES OF THE SECRETARY.

    To the extent appropriate, the Secretary shall assist an operator 
in achieving the conservation and environmental goals of a program 
plan--
            (1) by providing an eligibility assessment of the farming 
        or ranching operation of the operator as a basis for developing 
        the program plan;
            (2) by providing technical assistance in developing and 
        implementing the program plan;
            (3) by providing technical assistance, cost-sharing 
        payments, or incentive payments for developing and implementing 
        conservation practices as provided in section 3;
            (4) providing the operator with information, education, and 
        training to aid in implementation of the program plan; and
            (5) encouraging the operator to obtain technical 
        assistance, cost-sharing payments, or grants from other 
        Federal, State, local, or private sources.

SEC. 7. ELIGIBLE LANDS.

    Agricultural land on which one or more conservation practice shall 
be eligible for technical assistance, cost-sharing payments, or 
incentive payments under the conservation incentives program include--
            (1) agricultural land (including cropland, rangeland, 
        pasture, and other land on which crops or livestock are 
        produced) that the Secretary determines poses a serious threat 
        to soil, water, or related resources by reason of the soil 
        types, terrain, climatic, soil, topographic, flood, or shine 
        characteristics, or other factors or natural hazards;
            (2) an area that is considered to be critical agricultural 
        land on which either crop or livestock production is carried 
        out, as identified in a plan submitted by the State under 
        section 319 of the Federal Water Pollution Control Act (33 
        U.S.C. 1329) as having priority problems that result from an 
        agricultural nonpoint source of pollution;
            (3) an area recommended by the State lead agency for 
        protection of soil, water, and related resources ad designated 
        by a Governor of a State; and
            (4) land that is not located within a designated or approve 
        area, but that if permitted to continue to be operated under 
        existing management practices, would defeat the purpose of the 
        conservation incentives program, as determined by the 
        Secretary.

SEC. 8. FUNDING.

    (a) Mandatory Expenses.--Secretary shall use the funds of the 
Commodity Credit Corporation for each of the fiscal years 1996 through 
2005 to carry out the conservation incentive program, including cost-
sharing payments, incentives payments, and technical assistance costs.
    (b) Funding Limitations.--Funding for the conservation incentives 
program from the Commodity Credit Corporation shall be limited to 
$100,000,000 for fiscal year 1996 and $300,000,000 for each of fiscal 
years 1997 through 2005.
    (c) Distribution of Payments.--
            (1) Livestock production.--Not less than 50 percent of the 
        funding for technical assistance, cost-sharing payments, and 
        incentive payments under the conservation incentive program 
        shall be for conservation practices relating to livestock 
        production.
            (2) Limitation.--The Secretary may allocate less than 50 
        percent of the total program funding level for a fiscal year 
        for conservation practices relating to livestock production, 
        but in no case less than 35 percent, if the Secretary 
        determines that the 50 percent funding level is not reasonable 
        based on need and demand as expressed by conservation 
        incentives program participants.
Conservation Incentives Program Act of 1995 - Directs the Secretary of Agriculture to carry out a conservation incentives program to provide technical assistance, cost-sharing payments, and incentive payments to participating agricultural operators. Establishes a special rule and funding obligations for livestock operations. 
Establishes program and land priorities.  Sets forth:  (1) duties of the operators and of the Secretary; and (2) eligible land categories. 
Funds (with spending caps) such program through the Commodity Credit Corporation.
Conservation Incentives Program Act of 1995