★

110TH CONGRESS 

1ST SESSION H. R. 2419 

AN ACT 

To provide for the continuation of agricultural programs 

through fiscal year 2012, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Farm, Nutrition, and Bioenergy Act of 2007’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title and table of contents. 

TITLE I—COMMODITY PROGRAMS 

Sec. 1001. Definitions. 

Subtitle A—Direct Payments and Counter-Cyclical Payments 

Sec. 1101. Adjustments to base acres. 

Sec. 1102. Availability of direct payments. 

Sec. 1103. Availability of counter-cyclical payments. 

Sec. 1104. Availability of revenue-based counter-cyclical payments. 

Sec. 1105. Producer agreement required as condition of provision of direct payments and counter-cyclical payments. 

Sec. 1106. Planting flexibility. 

Sec. 1107. Period of effectiveness. 

Subtitle B—Marketing Assistance Loans and Loan Deficiency Payments 

Sec. 1201. Availability of nonrecourse marketing assistance loans for loan commodities. 

Sec. 1202. Loan rates for nonrecourse marketing assistance loans. 

Sec. 1203. Term of loans. 

Sec. 1204. Repayment of loans. 

Sec. 1205. Loan deficiency payments. 

Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage. 

Sec. 1207. Special marketing loan provisions for upland cotton. 

Sec. 1208. Special competitive provisions for extra long staple cotton. 

Sec. 1209. Availability of recourse loans for high moisture feed grains and seed 

cotton. 

Sec. 1210. Deadline for repayment of marketing assistance loan for peanuts. 

Sec. 1211. Commodity quality incentive payments for healthy oilseeds. 

Subtitle C—Sugar 

Sec. 1301. Sugar program. 

Sec. 1302. United States membership in the international sugar organization. 

Sec. 1303. Flexible marketing allotments for sugar. 

Subtitle D—Dairy-Related Provisions 

Sec. 1401. Dairy product price support program. 

Sec. 1402. Dairy forward pricing program. 

Sec. 1403. Dairy export incentive program. 

Sec. 1404. Revision of Federal marketing order amendment procedures. 

Sec. 1405. Dairy indemnity program. 

Sec. 1406. Extension of milk income loss contract program. 
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Sec. 1407. Dairy promotion and research program. 

Sec. 1408. Report on Department of Agriculture reporting procedures for nonfat dry milk. 

Sec. 1409. Federal Milk Marketing Order Review Commission. 

Subtitle E—Administration 

Sec. 1501. Administration generally. 

Sec. 1502. Suspension of permanent price support authority. 

Sec. 1503. Payment Limitations. 

Sec. 1504. Adjusted gross income limitation. 

Sec. 1505. Adjustments of loans. 

Sec. 1506. Personal liability of producers for deficiencies. 

Sec. 1507. Extension of existing administrative authority regarding loans. 

Sec. 1508. Assignment of payments. 

Sec. 1509. Tracking of benefits. 

Sec. 1510. Upland cotton storage payments. 

Sec. 1511. Government publication of cotton price forecasts. 

Sec. 1512. Prevention of deceased persons receiving payments under farm commodity programs. 

TITLE II—CONSERVATION 

Subtitle A—Conservation Programs of the Food Security Act of 1985 

Sec. 2101. Conservation reserve program. 

Sec. 2102. Wetlands reserve program. 

Sec. 2103. Conservation security program. 

Sec. 2104. Grassland reserve program. 

Sec. 2105. Environmental quality incentives program. 

Sec. 2106. Regional water enhancement program. 

Sec. 2107. Grassroots source water protection program. 

Sec. 2108. Conservation of private grazing land. 

Sec. 2109. Great Lakes basin program for soil erosion and sediment control. 

Sec. 2110. Farm and ranchland protection program. 

Sec. 2111. Farm viability program. 

Sec. 2112. Wildlife habitat incentive program. 

Subtitle B—Conservation Programs Under Other Laws 

Sec. 2201. Agricultural management assistance program. 

Sec. 2202. Resource Conservation and Development Program. 

Sec. 2203. Small watershed rehabilitation program. 

Subtitle C—Additional Conservation Programs 

Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment control. 

Sec. 2302. Voluntary public access and habitat incentive program. 

Sec. 2303. Muck soils conservation. 

Subtitle D—Administration and Funding 

Sec. 2401. Funding of conservation programs under Food Security Act of 

1985. 

Sec. 2402. Improved provision of technical assistance under conservation programs. 

Sec. 2403. Cooperative conservation partnership initiative. 
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Sec. 2404. Regional equity and flexibility. 

Sec. 2405. Administrative requirements for conservation programs. 

Sec. 2406. Annual report on participation by specialty crop producers in conservation programs. 

Sec. 2407. Promotion of market-based approaches to conservation. 

Sec. 2408. Establishment of State technical committees and their responsibilities. 

Sec. 2409. Payment limitations. 

Subtitle E—Miscellaneous Provisions 

Sec. 2501. Inclusion of income from affiliated packing and handling operations 

as income derived from farming for application of adjusted 

gross income limitation on eligibility for conservation programs. 

Sec. 2502. Encouragement of voluntary sustainability practices guidelines. 

Sec. 2503. Farmland resource information. 

Sec. 2504. Pilot program for four-year crop rotation for peanuts. 

TITLE III—TRADE 

Sec. 3001. Agricultural Trade Development and Assistance Act of 1954. 

Sec. 3002. Export credit guarantee program. 

Sec. 3003. Market access program. 

Sec. 3004. Food for Progress Act of 1985. 

Sec. 3005. Reauthorization of McGovern-Dole International Food for Education 

and Child Nutrition Program. 

Sec. 3006. Bill Emerson Humanitarian Trust. 

Sec. 3007. Technical assistance for specialty crops. 

Sec. 3008. Technical assistance for the resolution of trade disputes. 

Sec. 3009. Representation by the United States at international standard-setting bodies. 

Sec. 3010. Foreign market development cooperator program. 

Sec. 3011. Emerging markets. 

Sec. 3012. Export Enhancement Program. 

Sec. 3013. Minimum level of nonemergency food assistance. 

Sec. 3014. Germplasm conservation. 

Sec. 3015. Report on efforts to improve procurement planning. 

Sec. 3016. International disaster assistance under the Foreign Assistance Act 

of 1961. 

TITLE IV—NUTRITION PROGRAMS 

Subtitle A—Food Stamp Program 

Sec. 4001. Renaming the food stamp program. 

Sec. 4002. Definition of drug addiction or alcoholic treatment and rehabilitation program. 

Sec. 4003. Nutrition education. 

Sec. 4004. Food distribution on Indian reservations. 

Sec. 4005. Excluding combat related pay from countable income. 

Sec. 4006. Increasing the standard deduction. 

Sec. 4007. Excluding dependent care expenses. 

Sec. 4008. Adjusting countable resources for inflation. 

Sec. 4009. Excluding education accounts from countable income. 

Sec. 4010. Excluding retirement accounts from countable income. 

Sec. 4011. Deobligate food stamp coupons. 

Sec. 4012. Allow for the accrual of benefits. 
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Sec. 4013. Increasing the minimum benefit. 

Sec. 4014. State option for telephonic signature. 

Sec. 4015. Review of major changes in program design. 

Sec. 4016. Grants for simple application and eligibility determination systems 

and improved access to benefits. 

Sec. 4017. Civil money penalties and disqualification of retail food stores and 

wholesale food concerns. 

Sec. 4018. Major systems failures. 

Sec. 4019. Funding of employment and training programs. 

Sec. 4020. Reductions in payments for administrative costs. 

Sec. 4021. Cash payment pilot projects. 

Sec. 4022. Findings of Congress regarding Secure Supplemental Nutrition Assistance program nutrition education. 

Sec. 4023. Nutrition education and promotion initiative to address obesity. 

Sec. 4024. Authorization of appropriations. 

Sec. 4025. Consolidated block grants for Puerto Rico and American Samoa. 

Sec. 4026. Study on comparable access to Secure Supplemental Nutrition Assistance Program benefits for Puerto Rico. 

Sec. 4027. Reauthorization of community food project competitive grants. 

Sec. 4028. Emergency food assistance program. 

Subtitle B—Commodity Distribution 

Sec. 4201. Authorization of appropriations. 

Sec. 4202. Distribution of surplus commodities; special nutrition projects. 

Sec. 4203. Commodity distribution program. 

Subtitle C—Child Nutrition and Related Programs 

Sec. 4301. Purchase of fresh fruits and vegetables for distribution to schools 

and service institutions. 

Sec. 4302. Buy American requirements. 

Sec. 4303. Expansion of fresh fruit and vegetable program. 

Sec. 4304. Purchases of locally produced foods. 

Subtitle D—Miscellaneous 

Sec. 4401. Seniors farmers’ market nutrition program. 

Sec. 4402. Congressional Hunger Center. 

Sec. 4403. Joint nutrition monitoring and related research activities. 

Sec. 4404 Sense of the Congress. 

TITLE V—CREDIT 

Subtitle A—Farm Ownership Loans 

Sec. 5001. Conservation loan guarantee program. 

Sec. 5002. Limitations on amount of ownership loans. 

Sec. 5003. Down payment loan program. 

Sec. 5004. Beginning farmer and rancher contract land sales program. 

Sec. 5005. Loans to purchasers of highly fractioned lands. 

Subtitle B—Operating Loans 

Sec. 5011. Limitations on amount of operating loans. 

Sec. 5012. Suspension of limitation on period for which borrowers are eligible 

for guaranteed assistance. 
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Subtitle C—Administrative Provisions 

Sec. 5021. Inventory sales preferences. 

Sec. 5022. Loan fund set-asides. 

Sec. 5023. Transition to private commercial or other sources of credit. 

Sec. 5024. Extension of the right of first refusal to reacquire homestead property to immediate family members of borrower-owner. 

Sec. 5025. Rural development and farm loan program activities. 

Subtitle D—Farm Credit 

Sec. 5031. Bank for cooperatives voting stock. 

Sec. 5032. Rural utility loans. 

Sec. 5033. Farm Credit System Insurance Corporation. 

Sec. 5034. Risk-based capital levels. 

TITLE VI—RURAL DEVELOPMENT 

Sec. 6001. Definition of rural. 

Sec. 6002. Water, waste disposal, and wastewater facility grants. 

Sec. 6003. Rural business opportunity grants. 

Sec. 6004. Rural water and wastewater circuit rider program. 

Sec. 6005. Tribal college and university essential community facilities. 

Sec. 6006. Emergency and imminent community water assistance grant program. 

Sec. 6007. Water systems for rural and native villages in Alaska. 

Sec. 6008. Grants to nonprofit organizations to finance the construction, refurbishing, and servicing of individually-owned household water 

well systems in rural areas for individuals with low or moderate 

incomes. 

Sec. 6009. Rural cooperative development grants. 

Sec. 6010. Criteria to be applied in providing loans and loan guarantees 

under the business and industry loan program. 

Sec. 6011. Appropriate technology transfer for rural areas program. 

Sec. 6012. Grants to improve technical infrastructure and improve quality of 

rural health care facilities. 

Sec. 6013. Rural entrepreneur and microenterprise assistance program. 

Sec. 6014. Criteria to be applied in considering applications for rural development projects. 

Sec. 6015. National sheep industry improvement center. 

Sec. 6016. National rural development partnership. 

Sec. 6017. Historic barn preservation. 

Sec. 6018. Grants for NOAA weather radio transmitters. 

Sec. 6019. Delta regional authority. 

Sec. 6020. Northern great plains regional authority. 

Sec. 6021. Rural strategic investment program. 

Sec. 6022. Expansion of 911 access. 

Sec. 6023. Access to broadband telecommunications services in rural areas. 

Sec. 6024. Community connect grant program. 

Sec. 6025. Agriculture innovation center demonstration program. 

Sec. 6026. Rural firefighters and emergency medical service assistance program. 

Sec. 6027. Value-added agricultural market development program. 

Sec. 6028. Assistance for rural public television stations. 

Sec. 6029. Telemedicine and distance learning services in rural areas. 
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Sec. 6030. Guarantees for bonds and notes issued for electrification or telephone purposes. 

Sec. 6031. Comprehensive rural broadband strategy. 

Sec. 6032. Study of railroad issues. 

TITLE VII—RESEARCH 

Subtitle A—General Provisions 

Sec. 7101. Definitions. 

Sec. 7102. Budget submission and funding. 

Sec. 7103. Additional purposes of agricultural research and extension. 

Sec. 7104. National agricultural research program office. 

Sec. 7105. Establishment of competitive grant programs under the National Institute for Food and Agriculture. 

Sec. 7106. Merging of IFAFS and NRI. 

Sec. 7107. Capacity building grants for ASCARR institutions. 

Sec. 7108. Establishment of research laboratories for animal diseases. 

Sec. 7109. Grazinglands research laboratory. 

Sec. 7110. Researcher training. 

Sec. 7111. Fort Reno Science Park research facility. 

Sec. 7112. Assessing the nutritional composition of beef products. 

Sec. 7113. Sense of Congress regarding funding for human nutrition research. 

Subtitle B—National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 

Sec. 7201. Advisory board. 

Sec. 7202. Advisory board termination. 

Sec. 7203. Renewable energy committee. 

Sec. 7204. Specialty crop committee report. 

Sec. 7205. Inclusion of UDC in grants and fellowships for food and agricultural 

sciences education. 

Sec. 7206. Grants and fellowships for food and agricultural sciences education. 

Sec. 7207. Grants for research on production and marketing of alcohols and industrial hydrocarbons from agricultural commodities and forest 

products. 

Sec. 7208. Policy research centers. 

Sec. 7209. Human nutrition intervention and health promotion research program. 

Sec. 7210. Pilot research program to combine medical and agricultural research. 

Sec. 7211. Nutrition education program. 

Sec. 7212. Continuing animal health and disease research programs. 

Sec. 7213. Cooperation among eligible institutions. 

Sec. 7214. Appropriations for research on national or regional problems. 

Sec. 7215. Authorization level of extension at 1890 land-grant colleges. 

Sec. 7216. Authorization level for agricultural research at 1890 land-grant colleges. 

Sec. 7217. Grants to upgrade agriculture and food sciences facilities at the District of Columbia Land Grant University. 

Sec. 7218. Grants to upgrade agricultural and food sciences facilities at 1890 

land-grant colleges, including Tuskegee University. 

Sec. 7219. National research and training virtual centers. 

Sec. 7220. Matching funds requirement for research and extension activities of 

1890 institutions. 
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Sec. 7221. Hispanic-serving institutions. 

Sec. 7222. Hispanic-serving agricultural colleges and universities. 

Sec. 7223. International agricultural research, extension, and education. 

Sec. 7224. Competitive grants for international agricultural science and education programs. 

Sec. 7225. Limitation on indirect costs for agricultural research, education, and 

extension programs. 

Sec. 7226. Research equipment grants. 

Sec. 7227. University research. 

Sec. 7228. Extension service. 

Sec. 7229. Supplemental and alternative crops. 

Sec. 7230. Aquaculture Assistance Programs. 

Sec. 7231. Rangeland research. 

Sec. 7232. Special authorization for biosecurity planning and response. 

Sec. 7233. Resident instruction and distance education grants program for insular area institutions of higher education. 

Sec. 7234. Hispanic Serving Institutions. 

Sec. 7235. Specialty crops policy research institute. 

Sec. 7236. Emphasis of Human Nutrition Initiative. 

Sec. 7237. Grants to upgrade agriculture and food sciences facilities at insular 

area land-grant institutions. 

Subtitle C—Food, Agriculture, Conservation, and Trade Act of 1990 

Sec. 7301. National genetics resources program. 

Sec. 7302. National agricultural weather information system. 

Sec. 7303. Partnerships. 

Sec. 7304. Aflatoxin research and extension. 

Sec. 7305. High-priority research and extension areas. 

Sec. 7306. High-priority research and extension initiatives. 

Sec. 7307. Nutrient management research and extension initiative. 

Sec. 7308. Agricultural telecommunications program. 

Sec. 7309. Assistive technology program for farmers with disabilities. 

Sec. 7310. Organic research. 

Sec. 7311. National rural information center clearinghouse. 

Sec. 7312. New era rural technology program. 

Subtitle D—Agricultural Research, Extension, and Education Reform Act of 

1998 

Sec. 7401. Partnerships for high-value agricultural product quality research. 

Sec. 7402. Precision agriculture. 

Sec. 7403. Biobased products. 

Sec. 7404. Thomas Jefferson initiative for crop diversification. 

Sec. 7405. Integrated research, education, and extension competitive grants 

program. 

Sec. 7406. Fusarium graminearum grants. 

Sec. 7407. Bovine Johne’s disease control program. 

Sec. 7408. Grants for youth organizations. 

Sec. 7409. Agricultural biotechnology research and development for developing 

countries. 

Sec. 7410. Agricultural bioenergy and biobased products research initiative. 

Sec. 7411. Specialty crop research initiative. 

Sec. 7412. Office of pest management policy. 

Subtitle E—Other Laws 
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Sec. 7501. Critical agricultural materials act. 

Sec. 7502. Equity in Educational Land-Grant Status Act of 1994. 

Sec. 7503. Agricultural experiment station Research Facilities Act. 

Sec. 7504. National Agricultural Research, Extension, and Teaching Policy Act 

Amendments of 1985. 

Sec. 7505. Competitive, Special, and Facilities Research Grant Act (national 

research initiative). 

Sec. 7506. Agricultural Risk Protection Act of 2000 (carbon cycle research). 

Sec. 7507. Renewable Resources Extension Act of 1978. 

Sec. 7508. National Aquaculture Act of 1980. 

Sec. 7509. Construction of a Chinese Garden at the National Arboretum. 

Sec. 7510. Public education regarding use of biotechnology in producing food 

for human consumption. 

Sec. 7511. Fresh cut produce safety grants. 

Sec. 7512. UDC/EFNEP Eligibility. 

Sec. 7513. Hatch Act of 1987. 

Subtitle F—Additional Provisions 

Sec. 7601. Merit review of extension and educational grants. 

Sec. 7602. Review of plan of work requirements. 

Sec. 7603. Multistate and integration funding. 

Sec. 7604. Expanded food and nutrition education program. 

Sec. 7605. Grants to 1890 schools to expand extension capacity. 

Sec. 7606. Borlaug international agricultural science and technology fellowship 

program. 

Sec. 7607. Cost Recovery. 

Sec. 7608. Organic Food and Agricultural Systems Funding. 

TITLE VIII—FORESTRY 

Subtitle A—Cooperative Forestry Assistance Act of 1978 

Sec. 8001. National priorities for private forest conservation. 

Sec. 8002. Long-term, State-wide assessments and strategies for forest resources. 

Sec. 8003. Assistance to the Federated States of Micronesia, the Republic of 

the Marshall Islands, and the Republic of Palau. 

Sec. 8004. Changes to Forest Resource Coordinating Committee. 

Sec. 8005. Changes to State Forest Stewardship Coordinating Committees. 

Sec. 8006. Competition in programs under Cooperative Forestry Assistance Act 

of 1978. 

Sec. 8007. Cooperative forest innovation partnership projects. 

Subtitle B—Amendments to Other Laws 

Sec. 8101. Healthy forest reserve program. 

Sec. 8102. Emergency forest restoration program. 

Sec. 8103. Office of International Forestry. 

Sec. 8104. Rural revitalization technologies. 

Subtitle C—Miscellaneous Provisions 

Sec. 8201. Hispanic-serving institution agricultural land national resources 

leadership program. 

TITLE IX—ENERGY 
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Sec. 9001. Table of contents. 

Sec. 9002. Federal procurement of biobased products. 

Sec. 9003. Loan guarantees for biorefineries and biofuel production plants. 

Sec. 9004. Energy audit and renewable energy development program. 

Sec. 9005. Renewable energy systems and energy efficiency improvements. 

Sec. 9006. Biomass Research and Development Act of 2000. 

Sec. 9007. Adjustments to the bioenergy program. 

Sec. 9008. Research, extension, and educational programs on biobased energy 

technologies and products. 

Sec. 9009. Energy Council of the Department of Agriculture. 

Sec. 9010. Farm energy production pilot program. 

Sec. 9011. Rural energy self-sufficiency initiative. 

Sec. 9012. Agricultural biofuels from biomass internship pilot program. 

Sec. 9013. Feedstock flexibility program for bioenergy producers. 

Sec. 9014. Biomass inventory report. 

Sec. 9015. Future farmsteads program. 

Sec. 9016. Sense of Congress on renewable energy. 

Sec. 9017. Biodiesel fuel education program. 

Sec. 9018. Biomass energy reserve. 

Sec. 9019. Forest biomass for energy. 

Sec. 9019. Community wood energy program. 

Sec. 9020. Supplementing corn as an ethanol feedstock. 

TITLE X—HORTICULTURE AND ORGANIC AGRICULTURE 

Subtitle A—Honey and Bees 

Sec. 10001. Annual report on response to honey bee colony collapse disorder. 

Subtitle B—Horticulture Provisions 

Sec. 10101. Tree assistance program. 

Sec. 10102. Specialty crop block grants. 

Sec. 10103. Additional section 32 funds for purchase of fruits, vegetables, and 

nuts to support domestic nutrition assistance programs. 

Sec. 10103A. Additional section 32 funds to provide grants for the purchase 

and operation of urban gardens growing organic fruits and 

vegetables for the local population. 

Sec. 10104. Independent evaluation of Department of Agriculture commodity 

purchase process. 

Sec. 10105. Quality requirements for clementines. 

Sec. 10106. Implementation of food safety programs under marketing orders. 

Sec. 10107. Inclusion of specialty crops in census of agriculture. 

Sec. 10108. Maturity requirements for Hass avocados. 

Sec. 10109. Mushroom promotion, research, and consumer information. 

Sec. 10110. Fresh produce education initiative. 

Subtitle C—Pest and Disease Management 

Sec. 10201. Pest and disease program. 

Sec. 10202. Multi-species fruit fly research and sterile fly production. 

Subtitle D—Organic Agriculture 

Sec. 10301. National organic certification cost-share program. 

Sec. 10302. Organic production and market data. 

Sec. 10303. Organic conversion, technical, and educational assistance. 
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Subtitle E—Miscellaneous Provisions 

Sec. 10401. Grant program to improve movement of specialty crops. 

Sec. 10402. Authorization of appropriations for market news activities regarding specialty crops. 

Sec. 10403. Farmer marketing assistance program. 

Sec. 10404. National Clean Plant Network. 

Sec. 10405. Healthy food urban enterprise development program. 

TITLE XI—MISCELLANEOUS PROVISIONS 

Subtitle A—Federal Crop Insurance 

Sec. 11001. Premiums and reinsurance requirements. 

Sec. 11002. Catastrophic risk protection administrative fee. 

Sec. 11003. Funding for reimbursements, contracting, risk management education, and information technology. 

Sec. 11004. Reimbursement of research and development costs related to new 

crop insurance products. 

Sec. 11005. Research and development contracts for organic production coverage improvements. 

Sec. 11006. Targeting risk management education for beginning farmers and 

ranchers and certain other farmers and ranchers. 

Sec. 11007. Crop insurance ineligibility related to crop production on noncropland. 

Sec. 11008. Funds for data mining. 

Sec. 11009. Noninsured crop assistance program. 

Sec. 11010. Change in due date for Corporation payments for underwriting 

gains. 

Sec. 11011. Sesame insurance pilot program. 

Sec. 11012. National Drought Council and drought preparedness plans. 

Sec. 11013. Payment of portion of premium for area revenue plans. 

Sec. 11014. Share of risk. 

Sec. 11015. Livestock Assistance. 

Sec. 11016. Determination of certain sweet potato production. 

Subtitle B—Livestock and Poultry 

Sec. 11101. Sense of Congress regarding pseudorabies eradication program. 

Sec. 11102. Arbitration of livestock and poultry contracts. 

Sec. 11103. State-inspected meat and poultry. 

Sec. 11104. Country of origin labeling. 

Sec. 11105. Sense of Congress regarding the voluntary control program for low 

pathogenic avian influenza. 

Sec. 11106. Sense of Congress regarding the cattle fever tick eradication program. 

Subtitle C—Socially Disadvantaged Producers and Limited Resource 

Producers 

Sec. 11201. Outreach and technical assistance for socially disadvantaged farmers and ranchers and limited resource farmers and ranchers. 

Sec. 11202. Improved program delivery by Department of Agriculture on Indian reservations. 

Sec. 11203. Transparency and accountability for socially disadvantaged farmers 

and ranchers. 

Sec. 11204. Beginning farmer and rancher development program. 
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Sec. 11205. Provision of receipt for service or denial of service. 

Sec. 11206. Tracking of socially disadvantaged farmers and ranchers and limited resource farmers and ranchers in Census of Agriculture 

and certain studies. 

Sec. 11207. Farmworker coordinator. 

Sec. 11208. Office of Outreach relocation. 

Sec. 11209. Minority farmer advisory committee. 

Sec. 11210. Coordinator for chronically underserved rural areas. 

Subtitle D—Other Miscellaneous Provisions 

Sec. 11301. Designation of separate cotton-producing States under Cotton Research and Promotion Act. 

Sec. 11302. Cotton classification services. 

Sec. 11303. Availability of excess and surplus computers in rural areas. 

Sec. 11304. Permanent debarment from participation in Department of Agriculture programs for fraud. 

Sec. 11305. No discrimination against use of registered pesticide products or 

classes of pesticide products. 

Sec. 11306. Prohibition on closure or relocation of county offices for the Farm 

Service Agency, Rural Development Agency, and Natural Resources Conservation Service. 

Sec. 11307. Regulation of exports of plants, plant products, biological control 

organisms, and noxious weeds. 

Sec. 11308. Grants to reduce production of methamphetamines from anhydrous 

ammonia. 

Sec. 11309. USDA Graduate School. 

Sec. 11310. Prevention and investigation of payment and fraud and error. 

Sec. 11311. Sense of Congress regarding food deserts, geographically isolated 

neighborhoods and communities with limited or no access to 

major chain grocery stores. 

Sec. 11312. Pigford claims. 

Sec. 11313. Comptroller general study of wastewater infrastructure near 

United States-Mexico border. 

Sec. 11314. Elimination of statute of limitations applicable to collection of debt 

by administrative offset. 

Sec. 11315. Pollinator protection. 

Sec. 11316. Prohibition on use of live animals for marketing medical devices; 

fines under the Animal Welfare Act. 

Sec. 11317. Protection of pets. 

TITLE XII—PREVENTION OF TAX TREATY EXPLOITATION TO 

EVADE UNITED STATES TAXATION 

Sec. 12001. Limitation on treaty benefits for certain deductible payments. 

TITLE XIII—ADDITIONAL OFFSETS 

Subtitle A—Conservation of Resources Fees and Repeal of Royalty Relief 

Sec. 13001. Conservation of resources fees. 

Sec. 13002. Repeal of certain taxpayer subsidized royalty relief for the oil and 

gas industry. 

Sec. 13003. Time for payment of corporate estimated taxes. 
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Subtitle B—Allocation of Offsets 

Sec. 13011. Report on funds; rate of federal crop insurance. 

1 TITLE I—COMMODITY 

2 PROGRAMS 

Sec. 1001. Definitions. 

Subtitle A—Direct Payments and Counter-Cyclical Payments 

Sec. 1101. Adjustments to base acres. 

Sec. 1102. Availability of direct payments. 

Sec. 1103. Availability of counter-cyclical payments. 

Sec. 1104. Availability of revenue-based counter-cyclical payments. 

Sec. 1105. Producer agreement required as condition of provision of direct payments and counter-cyclical payments. 

Sec. 1106. Planting flexibility. 

Sec. 1107. Period of effectiveness. 

Subtitle B—Marketing Assistance Loans and Loan Deficiency Payments 

Sec. 1201. Availability of nonrecourse marketing assistance loans for loan commodities. 

Sec. 1202. Loan rates for nonrecourse marketing assistance loans. 

Sec. 1203. Term of loans. 

Sec. 1204. Repayment of loans. 

Sec. 1205. Loan deficiency payments. 

Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage. 

Sec. 1207. Special marketing loan provisions for upland cotton. 

Sec. 1208. Special competitive provisions for extra long staple cotton. 

Sec. 1209. Availability of recourse loans for high moisture feed grains and seed 

cotton. 

Sec. 1210. Deadline for repayment of marketing assistance loan for peanuts. 

Sec. 1211. Commodity quality incentive payments for healthy oilseeds. 

Subtitle C—Sugar 

Sec. 1301. Sugar program. 

Sec. 1302. United States membership in the international sugar organization. 

Sec. 1303. Flexible marketing allotments for sugar. 

Subtitle D—Dairy-Related Provisions 

Sec. 1401. Dairy product price support program. 

Sec. 1402. Dairy forward pricing program. 

Sec. 1403. Dairy export incentive program. 

Sec. 1404. Revision of Federal marketing order amendment procedures. 

Sec. 1405. Dairy indemnity program. 

Sec. 1406. Extension of milk income loss contract program. 

Sec. 1407. Dairy promotion and research program. 

Sec. 1408. Report on Department of Agriculture reporting procedures for nonfat dry milk. 

Sec. 1409. Federal Milk Marketing Order Review Commission. 

Subtitle E—Administration 
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Sec. 1501. Administration generally. 

Sec. 1502. Suspension of permanent price support authority. 

Sec. 1503. Payment Limitations. 

Sec. 1504. Adjusted gross income limitation. 

Sec. 1505. Adjustments of loans. 

Sec. 1506. Personal liability of producers for deficiencies. 

Sec. 1507. Extension of existing administrative authority regarding loans. 

Sec. 1508. Assignment of payments. 

Sec. 1509. Tracking of benefits. 

Sec. 1510. Upland cotton storage payments. 

Sec. 1511. Government publication of cotton price forecasts. 

1 SEC. 1001. DEFINITIONS. 

2 In this title: 

3 (1) AGRICULTURAL ACT OF 1949.—The term 

4 ‘‘Agricultural Act of 1949’’ means the Agricultural 

5 Act of 1949 (7 U.S.C. 1421 et seq.), as in effect 

6 prior to the suspensions under section 171 of the 

7 Federal Agriculture Improvement and Reform Act of 

8 1996 (7 U.S.C. 7301), section 1602(b) of the Farm 

9 Security and Rural Investment Act of 2002 (7 

10 U.S.C. 7992(b)), and section 1502(b) of this Act. 

11 (2) BASE ACRES.—The term ‘‘base acres’’, with 

12 respect to a covered commodity on a farm, means 

13 the number of acres established under sections 1101 

14 and 1302 of the Farm Security and Rural Invest15 ment Act of 2002 (7 U.S.C. 7911, 7952), as in ef16 fect on the day before the date of the enactment of 

17 this Act, subject to any adjustment under section 

18 1101 of this Act. 

19 (3) COMPARABLE UNITED STATES QUALITY.— 

20 The term ‘‘Comparable United States Quality’’, with 
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1 respect to upland cotton, means upland cotton classified as Middling (M) 13 2 ⁄32-inch cotton with a 

3 micronaire of 3.7 to 4.2, strength 30 grams per tex, 

4 and uniformity of 83. 

5 (4) COUNTER-CYCLICAL PAYMENT.—The term 

6 ‘‘counter-cyclical payment’’ means a payment made 

7 to producers on a farm under section 1103 or 1104. 

8 (5) COVERED COMMODITY.—The term ‘‘covered 

9 commodity’’ means wheat, corn, grain sorghum, bar10 ley, oats, upland cotton, rice, soybeans, peanuts, and 

11 other oilseeds. 

12 (6) DIRECT PAYMENT.—The term ‘‘direct pay13 ment’’ means a payment made to producers on a 

14 farm under section 1102. 

15 (7) EFFECTIVE PRICE.—The term ‘‘effective 

16 price’’, with respect to a covered commodity for a 

17 crop year, means the price calculated by the Sec18 retary under section 1103 to determine whether 

19 counter-cyclical payments are required to be made 

20 for that crop year under that section. 

21 (8) EXTRA LONG STAPLE COTTON.—The term 

22 ‘‘extra long staple cotton’’ means cotton that— 

23 (A) is produced from pure strain varieties 

24 of the Barbadense species or any hybrid of the 

25 species, or other similar types of extra long sta-
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1 ple cotton, designated by the Secretary, having 

2 characteristics needed for various end uses for 

3 which United States upland cotton is not suit4 able and grown in irrigated cotton-growing re5 gions of the United States designated by the 

6 Secretary or other areas designated by the Sec7 retary as suitable for the production of the vari8 eties or types; and 

9 (B) is ginned on a roller-type gin or, if au10 thorized by the Secretary, ginned on another 

11 type gin for experimental purposes. 

12 (9) FAR EAST PRICE.—The term ‘‘Far East 

13 price’’ means the Friday through Thursday average 

14 price quotation for the three lowest-priced growths 

of upland cotton, as quoted for Middling (M) 13 15 ⁄32- 

16 inch cotton, delivered C/F Far East. 

17 (10) LOAN COMMODITY.—The term ‘‘loan com18 modity’’ means wheat, corn, grain sorghum, feed 

19 barley, malt barley, oats, upland cotton, extra long 

20 staple cotton, long grain rice, medium grain rice, 

21 short grain rice, soybeans, peanuts, other oilseeds, 

22 wool, mohair, honey, dry peas, lentils, and small 

23 chickpeas. 

24 (11) OTHER OILSEED.—The term ‘‘other oil25 seed’’ means a crop of sunflower seed, rapeseed, 
17 

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1 canola, safflower, flaxseed, mustard seed, crambe, 

2 sesame seed, or, if designated by the Secretary, an3 other oilseed. 

4 (12) PAYMENT ACRES.—The term ‘‘payment 

5 acres’’, with respect to a covered commodity on a 

6 farm, means 85 percent of the base acres for the 

7 covered commodity, on which direct payments and 

8 counter-cyclical payments are made. 

9 (13) PAYMENT YIELD.—The term ‘‘payment 

10 yield’’ means the yield established for direct pay11 ments and counter-cyclical payments under section 

12 1102 or 1302 of the Farm Security and Rural In13 vestment Act of 2002 (7 U.S.C. 7912; 7952), as in 

14 effect on the day before the date of the enactment 

15 of this Act, for a farm for a covered commodity. 

16 (14) PRODUCER.— 

17 (A) IN GENERAL.—The term ‘‘producer’’ 

18 means an owner, operator, landlord, tenant, or 

19 sharecropper that shares in the risk of pro20 ducing a crop and is entitled to share in the 

21 crop available for marketing from the farm, or 

22 would have shared had the crop been produced. 

23 (B) HYBRID SEED.—In determining 

24 whether a grower of hybrid seed is a producer, 

25 the Secretary shall— 
18 

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1 (i) not take into consideration the ex2 istence of a hybrid seed contract; and 

3 (ii) ensure that program requirements 

4 do not adversely affect the ability of the 

5 grower to receive a payment under this 

6 title. 

7 (15) SECRETARY.—The term ‘‘Secretary’’ 

8 means the Secretary of Agriculture. 

9 (16) STATE.—The term ‘‘State’’ means each of 

10 the several States of the United States, the District 

11 of Columbia, the Commonwealth of Puerto Rico, and 

12 any other territory or possession of the United 

13 States. 

14 (17) TARGET PRICE.—The term ‘‘target price’’ 

15 means the price per bushel (or other appropriate 

16 unit in the case of upland cotton, rice, peanuts, and 

17 other oilseeds) of a covered commodity used to de18 termine the payment rate for counter-cyclical pay19 ments under section 1103. 

20 (18) UNITED STATES.—The term ‘‘United 

21 States’’, when used in a geographical sense, means 

22 all of the States. 

23 (19) UNITED STATES PREMIUM FACTOR.—The 

24 term ‘‘United States Premium Factor’’ means the 

25 percentage by which the difference in the United 
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1 States loan schedule premiums for Strict Middling 

(SM) 11⁄8-inch cotton and for M 13 2 ⁄32-inch exceeds 

3 the difference in the applicable premiums for com4 parable international qualities delivered C/F Far 

5 East. 

6 Subtitle A—Direct Payments and 

7 Counter-Cyclical Payments 

8 SEC. 1101. ADJUSTMENTS TO BASE ACRES. 

9 (a) TREATMENT OF CONSERVATION RESERVE CON10 TRACT ACREAGE.— 

11 (1) IN GENERAL.—The Secretary shall provide 

12 for an adjustment, as appropriate, in the base acres 

13 for covered commodities for a farm whenever either 

14 of the following circumstances occurs: 

15 (A) A conservation reserve contract en16 tered into under section 1231 of the Food Secu17 rity Act of 1985 (16 U.S.C. 3831) with respect 

18 to the farm expires or is voluntarily terminated. 

19 (B) Cropland is released from coverage 

20 under a conservation reserve contract by the 

21 Secretary. 

22 (2) SPECIAL PAYMENT RULES.—For the crop 

23 year in which a base acres adjustment under para24 graph (1) is first made, the owner of the farm shall 

25 elect to receive either direct payments and counter- 
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1 cyclical payments with respect to the acreage added 

2 to the farm under this subsection or a prorated pay3 ment under the conservation reserve contract, but 

4 not both. 

5 (b) PREVENTION OF EXCESS BASE ACRES.— 

6 (1) REQUIRED REDUCTION.—If the sum of the 

7 base acres for a farm, together with the acreage de8 scribed in paragraph (2), exceeds the actual crop9 land acreage of the farm, the Secretary shall reduce 

10 the base acres for 1 or more covered commodities for 

11 the farm so that the sum of the base acres and acre12 age described in paragraph (2) does not exceed the 

13 actual cropland acreage of the farm. 

14 (2) OTHER ACREAGE.—For purposes of para15 graph (1), the Secretary shall include the following: 

16 (A) Any acreage on the farm enrolled in 

17 the conservation reserve program or wetlands 

18 reserve program under chapter 1 of subtitle D 

19 of title XII of the Food Security Act of 1985 

20 (16 U.S.C. 3830 et seq.). 

21 (B) Any other acreage on the farm en22 rolled in a conservation program for which pay23 ments are made in exchange for not producing 

24 an agricultural commodity on the acreage. 
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1 (3) SELECTION OF ACRES.—The Secretary shall 

2 give the owner of the farm the opportunity to select 

3 the base acres against which the reduction required 

4 by paragraph (1) will be made. 

5 (4) EXCEPTION FOR DOUBLE-CROPPED ACRE6 AGE.—In applying paragraph (1), the Secretary 

7 shall make an exception in the case of double crop8 ping, as determined by the Secretary. 

9 (c) PERMANENT REDUCTION IN BASE ACRES.— 

10 (1) IN GENERAL.—The owner of a farm may 

11 reduce, at any time, the base acres for any covered 

12 commodity for the farm. 

13 (2) ADMINISTRATION.—The reduction shall be 

14 permanent and made in the manner prescribed by 

15 the Secretary. 

16 SEC. 1102. AVAILABILITY OF DIRECT PAYMENTS. 

17 (a) PAYMENT REQUIRED.—For each of the 2008 

18 through 2012 crop years of each covered commodity, the 

19 Secretary shall make direct payments to producers on 

20 farms for which payment yields and base acres are estab21 lished. 

22 (b) PAYMENT RATE.—The payment rates used to 

23 make direct payments with respect to covered commodities 

24 for a crop year are as follows: 

25 (1) Wheat, $0.52 per bushel. 
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1 (2) Corn, $0.28 per bushel. 

2 (3) Grain sorghum, $0.35 per bushel. 

3 (4) Barley, $0.24 per bushel. 

4 (5) Oats, $0.024 per bushel. 

5 (6) Upland cotton, $0.0667 per pound. 

6 (7) Rice, $2.35 per hundredweight. 

7 (8) Soybeans, $0.44 per bushel. 

8 (9) Other oilseeds, $0.0080 per pound. 

9 (10) Peanuts, $36.00 per ton. 

10 (c) PAYMENT AMOUNT.—The amount of the direct 

11 payment to be paid to the producers on a farm for a cov12 ered commodity for a crop year shall be equal to the prod13 uct of the following: 

14 (1) The payment rate specified in subsection 

15 (b). 

16 (2) The payment acres of the covered com17 modity on the farm. 

18 (3) The payment yield for the covered com19 modity for the farm. 

20 (d) TIME FOR PAYMENT.— 

21 (1) IN GENERAL.—In the case of each of the 

22 2008 through 2012 crop years, the Secretary may 

23 not make direct payments before October 1 of the 

24 calendar year in which the crop of the covered com25 modity is harvested. 
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1 (2) ADVANCE PAYMENTS.— 

2 (A) OPTION.—At the option of the pro3 ducers on a farm, up to 22 percent of the direct 

4 payment for a covered commodity for any of the 

5 2008 through 2011 crop years shall be paid to 

6 the producers in advance. 

7 (B) MONTH.— 

8 (i) SELECTION.—The producers shall 

9 select the month within which the advance 

10 payment for a crop year will be made. 

11 (ii) OPTIONS.—The month selected 

12 may be any month during the period be13 ginning on December 1 of the calendar 

14 year before the calendar year in which the 

15 crop of the covered commodity is harvested 

16 through the month within which the direct 

17 payment would otherwise be made. 

18 (iii) CHANGE.—The producers may 

19 change the selected month for a subse20 quent advance payment by providing ad21 vance notice to the Secretary. 

22 (3) REPAYMENT OF ADVANCE PAYMENTS.—If a 

23 producer on a farm that receives an advance direct 

24 payment for a crop year ceases to be a producer on 

25 that farm, or the extent to which the producer 
24 

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1 shares in the risk of producing a crop changes, be2 fore the date the remainder of the direct payment is 

3 made, the producer shall be responsible for repaying 

4 the Secretary the applicable amount of the advance 

5 payment, as determined by the Secretary. 

6 (e) PROHIBITION ON DE MINIMIS PAYMENTS.—If 

7 the total direct payment to be paid to a producer on a 

8 farm for all covered commodities is less than $25.00, the 

9 Secretary shall not tender the direct payment to the pro10 ducer. 

11 SEC. 1103. AVAILABILITY OF COUNTER-CYCLICAL PAY12 MENTS. 

13 (a) PAYMENT REQUIRED.—For each of the 2008 

14 through 2012 crop years for each covered commodity, the 

15 Secretary shall make counter-cyclical payments to pro16 ducers on farms for which payment yields and base acres 

17 are established with respect to the covered commodity if 

18 the Secretary determines that the effective price for the 

19 covered commodity is less than the target price for the 

20 covered commodity. 

21 (b) EFFECTIVE PRICE.—For purposes of subsection 

22 (a), the effective price for a covered commodity is equal 

23 to the sum of the following: 

24 (1) The higher of the following: 
25 

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1 (A) The national average market price re2 ceived by producers during the 12-month mar3 keting year for the covered commodity, as de4 termined by the Secretary. 

5 (B) The national average loan rate for a 

6 marketing assistance loan for the covered com7 modity in effect for the applicable period under 

8 subtitle B, except that, for the purpose of calcu9 lating counter-cyclical payments under this sec10 tion for rice and barley, the Secretary shall es11 tablish national average all rice and all barley 

12 loan rates. 

13 (2) The payment rate in effect for the covered 

14 commodity under section 1102 for the purpose of 

15 making direct payments with respect to the covered 

16 commodity. 

17 (c) TARGET PRICE.—For purposes of subsection (a), 

18 the target prices for covered commodities shall be as fol19 lows: 

20 (1) Wheat, $4.15 per bushel. 

21 (2) Corn, $2.63 per bushel. 

22 (3) Grain sorghum, $2.57 per bushel. 

23 (4) Barley, $2.73 per bushel. 

24 (5) Oats, $1.50 per bushel. 

25 (6) Upland cotton, $0.70 per pound. 
26 

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1 (7) Rice, $10.50 per hundredweight. 

2 (8) Soybeans, $6.10 per bushel. 

3 (9) Other oilseeds, $0.1150 per pound. 

4 (10) Peanuts, $495.00 per ton. 

5 (d) PAYMENT RATE.—The payment rate used to 

6 make counter-cyclical payments with respect to a covered 

7 commodity for a crop year shall be equal to the difference 

8 between— 

9 (1) the target price for the covered commodity; 

10 and 

11 (2) the effective price determined under sub12 section (b) for the covered commodity. 

13 (e) PAYMENT AMOUNT.—If counter-cyclical pay14 ments are required to be paid under this section for any 

15 of the 2008 through 2012 crop years of a covered com16 modity, the amount of the counter-cyclical payment to be 

17 paid to the producers on a farm for that crop year shall 

18 be equal to the product of the following: 

19 (1) The payment rate specified in subsection 

20 (d). 

21 (2) The payment acres of the covered com22 modity on the farm. 

23 (3) The payment yield for the covered com24 modity for the farm. 

25 (f) TIME FOR PAYMENTS.— 
27 

•HR 2419 EH1S 

1 (1) GENERAL RULE.—If the Secretary deter2 mines under subsection (a) that counter-cyclical pay3 ments are required to be made under this section for 

4 the crop of a covered commodity, the Secretary shall 

5 make the counter-cyclical payments for the crop as 

6 soon as practicable after the end of the 12-month 

7 marketing year for the covered commodity. 

8 (2) AVAILABILITY OF PARTIAL PAYMENTS.—If, 

9 before the end of the 12-month marketing year for 

10 a covered commodity, the Secretary estimates that 

11 counter-cyclical payments will be required for the 

12 crop of the covered commodity, the Secretary shall 

13 give producers on a farm the option to receive par14 tial payments of the counter-cyclical payment pro15 jected to be made for that crop of the covered com16 modity. 

17 (3) TIME FOR PARTIAL PAYMENTS FOR 2008

18 THROUGH 2010 CROP YEARS.—If the Secretary is re19 quired to make partial payments available under 

20 paragraph (2) for a covered commodity for any of 

21 the 2008 through 2010 crop years— 

22 (A) the first partial payment shall be made 

23 after completion of the first 6 months of the 

24 marketing year for the covered commodity; and 
28 

•HR 2419 EH1S 

1 (B) the final partial payment shall be 

2 made the later of the following: 

3 (i) As soon as practicable after the 

4 end of the 12-month marketing year for 

5 the covered commodity. 

6 (ii) October 1 of the fiscal year start7 ing in the same calendar year as the end 

8 of the marketing year. 

9 (4) AMOUNT OF PARTIAL PAYMENTS.— 

10 (A) FIRST PARTIAL PAYMENT.—For each 

11 of the 2008 through 2010 crop years, the first 

12 partial payment under paragraph (3) to the 

13 producers on a farm may not exceed 40 percent 

14 of the projected counter-cyclical payment for 

15 the covered commodity for the crop year, as de16 termined by the Secretary. 

17 (B) FINAL PAYMENT.—The final payment 

18 for each of the 2008 through 2010 crop years 

19 shall be equal to the difference between— 

20 (i) the actual counter-cyclical payment 

21 to be made to the producers for the cov22 ered commodity for that crop year; and 

23 (ii) the amount of the partial payment 

24 made to the producers under subparagraph 

25 (A). 
29 

•HR 2419 EH1S 

1 (5) REPAYMENT.—The producers on a farm 

2 that receive a partial payment under this subsection 

3 for a crop year shall repay to the Secretary the 

4 amount, if any, by which the total of the partial pay5 ments exceed the actual counter-cyclical payment to 

6 be made for the covered commodity for that crop 

7 year. 

8 (g) PROHIBITION ON DE MINIMIS PAYMENTS.—If 

9 the total counter-cyclical payment to be paid to a producer 

10 on a farm for all covered commodities is less than $25.00, 

11 the Secretary shall not tender the counter-cyclical pay12 ment to the producer. 

13 SEC. 1104. AVAILABILITY OF REVENUE-BASED COUNTER14 CYCLICAL PAYMENTS. 

15 (a) AVAILABILITY AND ELECTION OF ALTERNATIVE

16 APPROACH.— 

17 (1) AVAILABILITY OF REVENUE-BASED

18 COUNTER-CYCLICAL PAYMENTS.—As an alternative 

19 to receiving counter-cyclical payments under section 

20 1103 with respect to each covered commodity on a 

21 farm, the Secretary shall give the producers on the 

22 farm an opportunity to elect to instead receive rev23 enue-based counter-cyclical payments under this sec24 tion for the 2008 through 2012 crop years. 
30 

•HR 2419 EH1S 

1 (2) SINGLE ELECTION; TIME FOR ELECTION.— 

2 As soon as practicable after the date of enactment 

3 of this Act, the Secretary shall provide notice to pro4 ducers regarding their opportunity to make the elec5 tion described in paragraph (1). The notice shall in6 clude the following: 

7 (A) Notice that the opportunity of the pro8 ducers on a farm to make the election is being 

9 provided only once. 

10 (B) Information regarding the manner in 

11 which the election must be made and the time 

12 periods and manner in which notice of the elec13 tion must be submitted to the Secretary. 

14 (3) ELECTION DEADLINE.—Within the time pe15 riod and in the manner prescribed pursuant to para16 graph (2), the producers on a farm shall submit to 

17 the Secretary notice of the election made under 

18 paragraph (1). 

19 (4) EFFECT OF FAILURE TO MAKE ELEC20 TION.—If the producers on a farm fail to make the 

21 election under paragraph (1) or fail to timely notify 

22 the Secretary of the election made, as required by 

23 paragraph (3), the producers shall be deemed to 

24 have made the election to receive counter-cyclical 
31 

•HR 2419 EH1S 

1 payments under section 1103 for all covered com2 modities on the farm. 

3 (b) PAYMENT REQUIRED.—In the case of producers 

4 on a farm who make the election under subsection (a) to 

5 receive revenue-based counter-cyclical payments, the Sec6 retary shall make revenue-based counter-cyclical payments 

7 to such producers with respect to a covered commodity 

8 on the farm, if the Secretary determines that the national 

9 actual revenue per acre for the covered commodity is less 

10 than the national target revenue per acre for the covered 

11 commodity, as determined pursuant to this section. 

12 (c) NATIONAL ACTUAL REVENUE PER ACRE.—For 

13 each covered commodity for each of the 2008 through 

14 2012 crop years, the Secretary shall establish a national 

15 actual revenue per acre by multiplying the national aver16 age yield for the given year by the higher of— 

17 (1) the national average market price received 

18 by producers of the covered commodity during the 

19 12-month marketing year established by the Sec20 retary; or 

21 (2) the loan rate for the covered commodity 

22 under section 1202, except that, for the purpose of 

23 calculating national actual revenue per acre for rice 

24 and barley, the Secretary shall establish national av25 erage all rice and all barley loan rates. 
32 

•HR 2419 EH1S 

1 (d) NATIONAL TARGET REVENUE PER ACRE.—The 

2 national target revenue per acre shall be, on a per acre 

3 basis, as follows: 

4 (1) Wheat, $149.92. 

5 (2) Corn, $344.12. 

6 (3) Grain Sorghum, $131.28. 

7 (4) Barley, $153.30. 

8 (5) Oats, $92.10 

9 (6) Upland cotton, $496.93. 

10 (7) Rice, $548.06. 

11 (8) Soybeans, $231.87. 

12 (9) Other oilseeds, $129.18. 

13 (10) Peanuts, $683.83. 

14 (e) NATIONAL PAYMENT YIELD.—The national pay15 ment yield shall be as follows: 

16 (1) Wheat, 36.1 bushels per acre. 

17 (2) Corn, 114.4 bushels per acre. 

18 (3) Grain Sorghum, 58.2 bushels per acre. 

19 (4) Barley, 48.6 bushels per acre. 

20 (5) Oats, 49.8 bushels per acre. 

21 (6) Upland cotton, 634 pounds per acre. 

22 (7) Rice, 51.28 hundredweight per acre. 

23 (8) Soybeans, 34.1 bushels per acre. 

24 (9) Other oilseeds, 1167.6 pounds per acre. 

25 (10) Peanuts, 1.496 tons per acre. 
33 

•HR 2419 EH1S 

1 (f) NATIONAL PAYMENT RATE.—The national pay2 ment rate used to make revenue-based counter-cyclical 

3 payments for a crop year shall be the result of— 

4 (1) the difference between the national target 

5 revenue per acre for the covered commodity and the 

6 national actual revenue per acre for the covered 

7 commodity; divided by 

8 (2) the national payment yield for the covered 

9 commodity. 

10 (g) PAYMENT AMOUNT.—If revenue-based counter11 cyclical payments are required to be paid for any of the 

12 2008 through 2012 crop years of a covered commodity, 

13 the amount of the counter-cyclical payment to be paid to 

14 the producers on a farm for that crop year for the covered 

15 commodity shall be equal to the product of— 

16 (1) the national payment rate for the covered 

17 commodity; 

18 (2) the payment acres of the covered commodity 

19 on the farm; and 

20 (3) the payment yield for counter-cyclical pay21 ments for the covered commodity. 

22 (h) TIME FOR PAYMENTS.— 

23 (1) GENERAL RULE.—If the Secretary deter24 mines that revenue-based counter-cyclical payments 

25 are required to be made under this section for the 
34 

•HR 2419 EH1S 

1 crop of a covered commodity, the Secretary shall 

2 make the counter-cyclical payments for the crop as 

3 soon as practicable after the end of the 12-month 

4 marketing year for the covered commodity. 

5 (2) AVAILABILITY OF PARTIAL PAYMENTS.—If, 

6 before the end of the 12-month marketing year for 

7 a covered commodity, the Secretary estimates that 

8 revenue-based counter-cyclical payments will be re9 quired for the crop of the covered commodity, the 

10 Secretary shall give producers on a farm the option 

11 to receive partial payments of the revenue-based 

12 counter-cyclical payments projected to be made for 

13 that crop of the covered commodity. 

14 (3) TIME FOR PARTIAL PAYMENTS FOR 2008

15 THROUGH 2010 CROP YEARS.—If the Secretary is re16 quired to make partial payments available under 

17 paragraph (2) for a covered commodity for any of 

18 the 2008 through 2010 crop years— 

19 (A) the first partial payment shall be made 

20 after completion of the first 6 months of the 

21 marketing year for the covered commodity; and 

22 (B) the final partial payment shall be 

23 made the later of the following: 
35 

•HR 2419 EH1S 

1 (i) As soon as practicable after the 

2 end of the 12-month marketing year for 

3 the covered commodity. 

4 (ii) October 1 of the fiscal year start5 ing in the same calendar year as the end 

6 of the marketing year. 

7 (4) AMOUNT OF PARTIAL PAYMENTS.— 

8 (A) FIRST PARTIAL PAYMENT.—For each 

9 of the 2008 through 2010 crop years, the first 

10 partial payment under paragraph (3) to the 

11 producers on a farm may not exceed 40 percent 

12 of the projected revenue-based counter-cyclical 

13 payment for the covered commodity for the crop 

14 year, as determined by the Secretary. 

15 (B) FINAL PAYMENT.—The final payment 

16 for each of the 2008 through 2010 crop years 

17 shall be equal to the difference between— 

18 (i) the actual revenue-based counter19 cyclical payments to be made to the pro20 ducers for the covered commodity for that 

21 crop year; and 

22 (ii) the amount of the partial payment 

23 made to the producers on a farm under 

24 subparagraph (A) for that crop year. 
36 

•HR 2419 EH1S 

1 (5) REPAYMENT.—Producers on a farm that 

2 receive a partial payment under this subsection for 

3 a crop year shall repay to the Secretary the amount, 

4 if any, by which the total of the partial payments ex5 ceed the actual revenue-based counter-cyclical pay6 ments to be made for the covered commodity for 

7 that crop year. 

8 (i) PROHIBITION ON DE MINIMIS PAYMENTS.—If the 

9 total revenue-based counter-cyclical payment to be paid to 

10 a producer on a farm for all covered commodities is less 

11 than $25.00, the Secretary shall not tender the revenue12 based counter-cyclical payment to the producer. 

13 SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDI14 TION OF PROVISION OF DIRECT PAYMENTS 

15 AND COUNTER-CYCLICAL PAYMENTS. 

16 (a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 

17 (1) REQUIREMENTS.—Before the producers on 

18 a farm may receive direct payments or counter-cycli19 cal payments with respect to the farm, the producers 

20 shall agree, during the crop year for which the pay21 ments are made and in exchange for the payments— 

22 (A) to comply with applicable conservation 

23 requirements under subtitle B of title XII of 

24 the Food Security Act of 1985 (16 U.S.C. 3811 

25 et seq.); 
37 

•HR 2419 EH1S 

1 (B) to comply with applicable wetland pro2 tection requirements under subtitle C of title 

3 XII of that Act (16 U.S.C. 3821 et seq.); 

4 (C) to comply with the planting flexibility 

5 requirements of section 1106; 

6 (D) to use the land on the farm, in a 

7 quantity equal to the attributable base acres for 

8 the farm for an agricultural or conserving use, 

9 and not for a nonagricultural commercial or in10 dustrial use, as determined by the Secretary; 

11 and 

12 (E) to effectively control noxious weeds 

13 and otherwise maintain the land in accordance 

14 with sound agricultural practices, as determined 

15 by the Secretary. 

16 (2) COMPLIANCE.—The Secretary may issue 

17 such rules as the Secretary considers necessary to 

18 ensure producer compliance with the requirements of 

19 paragraph (1). 

20 (3) MODIFICATION.—At the request of the 

21 transferee or owner, the Secretary may modify the 

22 requirements of this subsection if the modifications 

23 are consistent with the objectives of this subsection, 

24 as determined by the Secretary. 
38 

•HR 2419 EH1S 

1 (b) TRANSFER OR CHANGE OF INTEREST IN

2 FARM.— 

3 (1) TERMINATION.— 

4 (A) IN GENERAL.—Except as provided in 

5 paragraph (2), a transfer of (or change in) the 

6 interest of the producers on a farm in base 

7 acres for which direct payments or counter-cy8 clical payments are made shall result in the ter9 mination of the payments with respect to the 

10 base acres, unless the transferee or owner of 

11 the acreage agrees to assume all obligations 

12 under subsection (a). 

13 (B) EFFECTIVE DATE.—The termination 

14 shall take effect on the date determined by the 

15 Secretary. 

16 (2) EXCEPTION.—If a producer entitled to a di17 rect payment or counter-cyclical payment dies, be18 comes incompetent, or is otherwise unable to receive 

19 the payment, the Secretary shall make the payment, 

20 in accordance with rules issued by the Secretary. 

21 (c) ACREAGE REPORTS.—As a condition on the re22 ceipt of any benefits under this subtitle or subtitle B, the 

23 Secretary shall require producers on a farm to submit to 

24 the Secretary annual acreage reports with respect to all 

25 cropland on the farm. 
39 

•HR 2419 EH1S 

1 (d) TENANTS AND SHARECROPPERS.—In carrying 

2 out this subtitle, the Secretary shall provide adequate safe3 guards to protect the interests of tenants and share4 croppers. 

5 (e) SHARING OF PAYMENTS.—The Secretary shall 

6 provide for the sharing of direct payments and counter7 cyclical payments among the producers on a farm on a 

8 fair and equitable basis. 

9 SEC. 1106. PLANTING FLEXIBILITY. 

10 (a) PERMITTED CROPS.—Subject to subsection (b), 

11 any commodity or crop may be planted on base acres on 

12 a farm. 

13 (b) LIMITATIONS REGARDING CERTAIN COMMOD14 ITIES.— 

15 (1) GENERAL LIMITATION.—The planting of an 

16 agricultural commodity specified in paragraph (3) 

17 shall be prohibited on base acres unless the com18 modity, if planted, is destroyed before harvest. 

19 (2) TREATMENT OF TREES AND OTHER

20 PERENNIALS.—The planting of an agricultural com21 modity specified in paragraph (3) that is produced 

22 on a tree or other perennial plant shall be prohibited 

23 on base acres. 
40 

•HR 2419 EH1S 

1 (3) COVERED AGRICULTURAL COMMODITIES.— 

2 Paragraphs (1) and (2) apply to the following agri3 cultural commodities: 

4 (A) Fruits. 

5 (B) Vegetables (other than lentils, mung 

6 beans, and dry peas). 

7 (C) Wild rice. 

8 (c) EXCEPTIONS.—Paragraphs (1) and (2) of sub9 section (b) shall not limit the planting of an agricultural 

10 commodity specified in paragraph (3) of that subsection— 

11 (1) in any region in which there is a history of 

12 double-cropping of covered commodities with agricul13 tural commodities specified in subsection (b)(3), as 

14 determined by the Secretary, in which case the dou15 ble-cropping shall be permitted; 

16 (2) on a farm that the Secretary determines 

17 has a history of planting agricultural commodities 

18 specified in subsection (b)(3) on base acres, except 

19 that direct payments and counter-cyclical payments 

20 shall be reduced by an acre for each acre planted to 

21 such an agricultural commodity; or 

22 (3) by the producers on a farm that the Sec23 retary determines has an established planting his24 tory of a specific agricultural commodity specified in 

25 subsection (b)(3), except that— 
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1 (A) the quantity planted may not exceed 

2 the average annual planting history of such ag3 ricultural commodity by the producers on the 

4 farm in the 1991 through 1995 or 1998 

5 through 2001 crop years (excluding any crop 

6 year in which no plantings were made), as de7 termined by the Secretary; and 

8 (B) direct payments and counter-cyclical 

9 payments shall be reduced by an acre for each 

10 acre planted to such agricultural commodity. 

11 (d) PLANTING TRANSFERABILITY PILOT PROJECT.— 

12 (1) PILOT PROJECT AUTHORIZED.—In addition 

13 to the exceptions provided in subsection (c), the Sec14 retary shall carry out a pilot project in the State of 

15 Indiana under which paragraphs (1) and (2) of sub16 section (b) shall not limit the planting of tomatoes 

17 grown for processing on up to 10,000 base acres 

18 during each of the 2008 through 2012 crop years. 

19 (2) CONTRACT AND MANAGEMENT REQUIRE20 MENTS.— To be eligible for selection to participate 

21 in the pilot project, a producer must— 

22 (A) have a contract to grow tomatoes for 

23 processing; and 

24 (B) agree to produce the tomatoes as part 

25 of a program of crop rotation on the farm to 
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1 achieve agronomic and pest and disease man2 agement benefits. 

3 (3) TEMPORARY REDUCTION IN BASE ACRES.— 

4 The base acres on a farm for a crop year shall be 

5 reduced by an acre for each acre planted to tomatoes 

6 under the pilot program. 

7 (4) DURATION OF REDUCTIONS.—The reduc8 tion in the base acres of a farm for a crop year 

9 under paragraph (3) shall expire at the end of the 

10 crop year, unless the producers on the farm elect to 

11 continue to participate in the pilot project for the 

12 subsequent crop year. 

13 (5) RECALCULATION OF BASE ACRES.—If the 

14 Secretary recalculates base acres for a farm while 

15 the farm is included in the pilot project, the planting 

16 and production of tomatoes under the pilot project 

17 shall be considered to be the same as the planting, 

18 prevented planting, or production of a covered com19 modity. Nothing in this paragraph provides author20 ity for the Secretary to recalculate base acres for a 

21 farm. 

22 SEC. 1107. PERIOD OF EFFECTIVENESS. 

23 This subtitle shall be effective beginning with the 

24 2008 crop year of each covered commodity through the 

25 2012 crop year. 
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1 Subtitle B—Marketing Assistance 

2 Loans and Loan Deficiency Pay3 ments 

4 SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING 

5 ASSISTANCE LOANS FOR LOAN COMMOD6 ITIES. 

7 (a) NONRECOURSE LOANS AVAILABLE.— 

8 (1) AVAILABILITY.—For each of the 2008 

9 through 2012 crops of each loan commodity, the 

10 Secretary shall make available to producers on a 

11 farm nonrecourse marketing assistance loans for 

12 loan commodities produced on the farm. 

13 (2) TERMS AND CONDITIONS.—The marketing 

14 assistance loans shall be made under terms and con15 ditions that are prescribed by the Secretary and at 

16 the loan rate established under section 1202 for the 

17 loan commodity. 

18 (b) ELIGIBLE PRODUCTION.—The producers on a 

19 farm shall be eligible for a marketing assistance loan 

20 under subsection (a) for any quantity of a loan commodity 

21 produced on the farm. 

22 (c) TREATMENT OF CERTAIN COMMINGLED COM23 MODITIES.—In carrying out this subtitle, the Secretary 

24 shall make loans to producers on a farm that would be 

25 eligible to obtain a marketing assistance loan, but for the 
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1 fact the loan commodity owned by the producers on the 

2 farm commingled with loan commodities of other pro3 ducers in facilities unlicensed for the storage of agricul4 tural commodities by the Secretary or a State licensing 

5 authority, if the producers obtaining the loan agree to im6 mediately redeem the loan collateral in accordance with 

7 section 166 of the Federal Agriculture Improvement and 

8 Reform Act of 1996 (7 U.S.C. 7286). 

9 (d) COMPLIANCE WITH CONSERVATION AND WET10 LANDS REQUIREMENTS.—As a condition of the receipt of 

11 a marketing assistance loan under subsection (a), the pro12 ducer shall comply with applicable conservation require13 ments under subtitle B of title XII of the Food Security 

14 Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wet15 land protection requirements under subtitle C of title XII 

16 of the Act (16 U.S.C. 3821 et seq.) during the term of 

17 the loan. 

18 (e) PEANUT-RELATED LOAN PROVISIONS.— 

19 (1) OPTIONS FOR OBTAINING LOANS.—A mar20 keting assistance loan for peanuts under this section 

21 and loan deficiency payments for peanuts under sec22 tion 1205 may be obtained at option of the pro23 ducers on a farm through— 
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•HR 2419 EH1S 

1 (A) a designated marketing association or 

2 marketing cooperative of producers that is ap3 proved by the Secretary; or 

4 (B) the Farm Service Agency. 

5 (2) STORAGE OF LOAN PEANUTS.—As a condi6 tion on the Secretary’s approval of an individual or 

7 entity to provide storage for peanuts for which a 

8 marketing assistance loan is made under this sec9 tion, the individual or entity shall agree— 

10 (A) to provide such storage on a non11 discriminatory basis; and 

12 (B) to comply with such additional require13 ments as the Secretary considers appropriate to 

14 accomplish the purposes of this section and pro15 mote fairness in the administration of the bene16 fits of this section. 

17 (3) MARKETING.—A marketing association or 

18 cooperative may market peanuts for which a loan is 

19 made under this section in any manner that con20 forms to consumer needs, including the separation of 

21 peanuts by type and quality. 
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1 SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING 

2 ASSISTANCE LOANS. 

3 (a) LOAN RATES.—The loan rate for a marketing as4 sistance loan under section 1201 for a loan commodity 

5 shall be equal to the following: 

6 (1) In the case of wheat, $2.94 per bushel. 

7 (2) In the case of corn, $1.95 per bushel. 

8 (3) In the case of grain sorghum, $1.95 per 

9 bushel. 

10 (4) In the case of malt barley, $2.50 per bushel. 

11 (5) In the case of feed barley, $1.90 per bushel. 

12 (6) In the case of oats, $1.46 per bushel. 

13 (7) In the case of the base quality of upland 

14 cotton, $0.52 per pound. 

15 (8) In the case of extra long staple cotton, 

16 $0.7977 per pound. 

17 (9) In the case of long grain rice, $6.50 per 

18 hundredweight. 

19 (10) In the case of medium grain rice and short 

20 grain rice, $6.50 per hundredweight. 

21 (11) In the case of soybeans, $5.00 per bushel. 

22 (12) In the case of other oilseeds, $0.1070 per 

23 pound for each of the following kinds of oilseeds: 

24 (A) Sunflower seed. 

25 (B) Rapeseed. 

26 (C) Canola. 
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1 (D) Safflower. 

2 (E) Flaxseed. 

3 (F) Mustard seed. 

4 (G) Crambe. 

5 (H) Sesame seed. 

6 (I) Other oilseeds designated by the Sec7 retary. 

8 (13) In the case of dry peas, $5.40 per hun9 dredweight. 

10 (14) In the case of lentils, $11.28 per hundred11 weight. 

12 (15) In the case of small chickpeas, $8.54 per 

13 hundredweight. 

14 (16) In the case of peanuts, $355.00 per ton. 

15 (17) In the case of graded wool, $1.10 per 

16 pound. 

17 (18) In the case of nongraded wool, $0.40 per 

18 pound. 

19 (19) In the case of honey, $0.60 per pound. 

20 (20) In the case of mohair, $4.20 per pound. 

21 (b) SINGLE COUNTY LOAN RATE FOR OTHER OIL22 SEEDS.—The Secretary shall establish a single loan rate 

23 in each county for each kind of other oilseeds described 

24 in subsection (a)(12). 
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1 (c) SPECIAL RULES FOR CORN AND GRAIN SOR2 GHUM.— 

3 (1) SINGLE COUNTY AND NATIONAL AVERAGE

4 LOAN RATE.—The Secretary shall— 

5 (A) establish a single county loan rate for 

6 corn and grain sorghum in each county; 

7 (B) establish a single national average loan 

8 rate for corn and grain sorghum; and 

9 (C) determine each county loan rate and 

10 the national average loan rate for corn and 

11 grain sorghum and any and all other program 

12 loan rates applicable to corn and grain sorghum 

13 from a data set that includes prices for both 

14 commodities. 

15 (2) ADMINISTRATION.—With respect to corn 

16 and grain sorghum, the Secretary— 

17 (A) shall administer the applicable loan, 

18 marketing loan, counter-cyclical payment, and 

19 related programs from a single loan rate for 

20 corn and grain sorghum that is identical in 

21 each individual county; 

22 (B) shall provide that any adjustment in 

23 the loan rate for location shall be determined 

24 and applied on the basis of the combined data 

25 set such that any transportation adjustment 
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1 shall be the same for corn and grain sorghum 

2 in each individual county; and 

3 (C) may provide for adjustments for grade, 

4 type, and quality as appropriate for the corn or 

5 grain sorghum involved in each specific trans6 action. 

7 SEC. 1203. TERM OF LOANS. 

8 (a) TERM OF LOAN.—In the case of each loan com9 modity, a marketing assistance loan under section 1201 

10 shall have a term of 9 months beginning on the first day 

11 of the first month after the month in which the loan is 

12 made. 

13 (b) EXTENSIONS PROHIBITED.—The Secretary may 

14 not extend the term of a marketing assistance loan for 

15 any loan commodity. 

16 SEC. 1204. REPAYMENT OF LOANS. 

17 (a) GENERAL RULE.—The Secretary shall permit the 

18 producers on a farm to repay a marketing assistance loan 

19 under section 1201 for a loan commodity (other than up20 land cotton, long grain rice, medium grain rice, short 

21 grain rice, extra long staple cotton, and confectionery and 

22 each other kind of sunflower seed (other than oil sunflower 

23 seed)) at the lesser of the following: 

24 (1) The loan rate established for the commodity 

25 under section 1202, plus interest (determined in ac-
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1 cordance with section 163 of the Federal Agriculture 

2 Improvement and Reform Act of 1996 (7 U.S.C. 

3 7283)). 

4 (2) A rate that the Secretary determines will— 

5 (A) minimize potential loan forfeitures; 

6 (B) minimize the accumulation of stocks of 

7 the commodity by the Federal Government; 

8 (C) minimize the cost incurred by the Fed9 eral Government in storing the commodity; 

10 (D) allow the commodity produced in the 

11 United States to be marketed freely and com12 petitively, both domestically and internationally; 

13 and 

14 (E) minimize discrepancies in marketing 

15 loan benefits across State boundaries and 

16 across county boundaries, if applicable. 

17 (b) REPAYMENT RATES FOR UPLAND COTTON AND

18 RICE.—The Secretary shall permit producers to repay a 

19 marketing assistance loan under section 1201 for upland 

20 cotton, long grain rice, medium grain rice, and short grain 

21 rice at a rate that is the lesser of— 

22 (1) the loan rate established for the commodity 

23 under section 1202, plus interest (determined in ac24 cordance with section 163 of the Federal Agriculture 
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1 Improvement and Reform Act of 1996 (7 U.S.C. 

2 7283)); or 

3 (2) the prevailing world market price for the 

4 commodity (adjusted to United States quality and 

5 location), as determined by the Secretary. 

6 (c) REPAYMENT RATES FOR EXTRA LONG STAPLE

7 COTTON.—Repayment of a marketing assistance loan for 

8 extra long staple cotton shall be at the loan rate estab9 lished for the commodity under section 1202, plus interest 

10 (determined in accordance with section 163 of the Federal 

11 Agriculture Improvement and Reform Act of 1996 (7 

12 U.S.C. 7283)). 

13 (d) PREVAILING WORLD MARKET PRICE.—For pur14 poses of this section and section 1207, the Secretary shall 

15 prescribe by regulation— 

16 (1) a formula to determine the prevailing world 

17 market price for upland cotton, which shall be based 

18 on the Far East price of upland cotton; 

19 (2) a formula to determine the prevailing world 

20 market price for— 

21 (A) long grain rice; and 

22 (B) medium and short grain rice; 

23 (3) a mechanism by which the Secretary will 

24 announce periodically the prevailing world market 
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1 price for upland cotton, long grain rice, and medium 

2 and short grain rice; and 

3 (4) a mechanism by which the Secretary will 

4 make the adjustments, required by subsection (e), to 

5 the prevailing world market price for upland cotton, 

6 long grain rice, and medium and short grain rice. 

7 (e) ADJUSTMENT OF PREVAILING WORLD MARKET

8 PRICE FOR UPLAND COTTON AND RICE.— 

9 (1) RICE.—The prevailing world market price 

10 for long grain, medium grain, and short grain rice 

11 determined in subsection (d) shall be adjusted to 

12 United States quality and location. 

13 (2) COTTON.—The prevailing world market 

14 price for upland cotton, determined in subsection (d) 

15 shall be— 

16 (A) adjusted to United States quality and 

17 location, with such quality adjustment to in18 clude— 

19 (i) any existing United States loan 

20 schedule premiums for Comparable United 

21 States Quality; and 

22 (ii) a reduction equal to any United 

23 States Premium Factor to upland cotton of 

a quality higher than Middling (M) 13 24 ⁄32- 

25 inch; and 
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1 (B) adjusted to take into account average 

2 costs to market the commodity, including aver3 age transportation costs, as determined by the 

4 Secretary. 

5 (f) ADDITIONAL ADJUSTMENT AUTHORITY REGARD6 ING PREVAILING WORLD MARKET PRICE FOR UPLAND

7 COTTON.— 

8 (1) IN GENERAL.—During the period beginning 

9 on the date of the enactment of this Act through 

10 July 31, 2013, the Secretary may further adjust the 

11 prevailing world market price for upland cotton (ad12 justed under subsection (d)) if the Secretary deter13 mines such adjustment necessary— 

14 (A) to minimize potential loan forfeitures; 

15 (B) to minimize the accumulation of stocks 

16 of the commodity by the Federal Government; 

17 (C) to allow the commodity produced in 

18 the United States to be marketed freely and 

19 competitively, both domestically and inter20 nationally; 

21 (D) to ensure that United States cotton is 

22 competitive in world markets; and 

23 (E) to ensure an appropriate transition be24 tween current-crop and forward-crop price 

25 quotations, except that the Secretary may use 
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1 forward-crop price quotations prior to July 31 

2 of the current marketing year only if there are 

3 less than three current-crop price quotations 

4 and only if such forward-crop price quotation is 

5 the lowest such quotation available. 

6 (2) GUIDELINES FOR ADDITIONAL ADJUST7 MENT.—In further adjusting the prevailing world 

8 market price for upland cotton under this sub9 section, the Secretary shall establish a mechanism 

10 for determining and announcing such adjustments in 

11 order to avoid undue disruption in the United States 

12 market. 

13 (g) REPAYMENT RATES FOR CONFECTIONERY AND

14 OTHER KINDS OF SUNFLOWER SEEDS.—The Secretary 

15 shall permit the producers on a farm to repay a marketing 

16 assistance loan under section 1201 for confectionery and 

17 each other kind of sunflower seed (other than oil sunflower 

18 seed) at a rate that is the lesser of— 

19 (1) the loan rate established for the commodity 

20 under section 1202, plus interest (determined in ac21 cordance with section 163 of the Federal Agriculture 

22 Improvement and Reform Act of 1996 (7 U.S.C. 

23 7283)); or 

24 (2) the repayment rate established for oil sun25 flower seed. 
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1 (h) QUALITY GRADES FOR DRY PEAS, LENTILS, AND

2 SMALL CHICKPEAS.—The loan repayment rate for dry 

3 peas, lentils, and small chickpeas shall be based on the 

4 quality grades for the applicable commodity. 

5 SEC. 1205. LOAN DEFICIENCY PAYMENTS. 

6 (a) AVAILABILITY OF LOAN DEFICIENCY PAY7 MENTS.— 

8 (1) IN GENERAL.—Except as provided in sub9 section (d), the Secretary may make loan deficiency 

10 payments available to producers on a farm that, al11 though eligible to obtain a marketing assistance loan 

12 under section 1201 with respect to a loan com13 modity, agree to forgo obtaining the loan for the 

14 commodity in return for loan deficiency payments 

15 under this section. 

16 (2) UNSHORN PELTS, HAY, AND SILAGE.— 

17 (A) MARKETING ASSISTANCE LOANS.— 

18 Subject to subparagraph (B), nongraded wool 

19 in the form of unshorn pelts and hay and silage 

20 derived from a loan commodity are not eligible 

21 for a marketing assistance loan under section 

22 1201. 

23 (B) LOAN DEFICIENCY PAYMENT.—Effec24 tive for the 2008 through 2012 crop years, the 

25 Secretary may make loan deficiency payments 
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1 available under this section to producers on a 

2 farm that produce unshorn pelts or hay and si3 lage derived from a loan commodity. 

4 (b) COMPUTATION.—A loan deficiency payment for a 

5 loan commodity or commodity referred to in subsection 

6 (a)(2) shall be computed by multiplying— 

7 (1) the payment rate determined under sub8 section (c) for the commodity; by 

9 (2) the quantity of the commodity produced by 

10 the eligible producers, excluding any quantity for 

11 which the producers obtain a marketing assistance 

12 loan under section 1201. 

13 (c) PAYMENT RATE.— 

14 (1) IN GENERAL.—In the case of a loan com15 modity, the payment rate shall be the amount by 

16 which— 

17 (A) the loan rate established under section 

18 1202 for the loan commodity; exceeds 

19 (B) the rate at which a marketing assist20 ance loan for the loan commodity may be repaid 

21 under section 1204. 

22 (2) UNSHORN PELTS.—In the case of unshorn 

23 pelts, the payment rate shall be the amount by 

24 which— 
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1 (A) the loan rate established under section 

2 1202 for ungraded wool; exceeds 

3 (B) the rate at which a marketing assist4 ance loan for ungraded wool may be repaid 

5 under section 1204. 

6 (3) HAY AND SILAGE.—In the case of hay or si7 lage derived from a loan commodity, the payment 

8 rate shall be the amount by which— 

9 (A) the loan rate established under section 

10 1202 for the loan commodity from which the 

11 hay or silage is derived; exceeds 

12 (B) the rate at which a marketing assist13 ance loan for the loan commodity may be repaid 

14 under section 1204. 

15 (d) EXCEPTION FOR EXTRA LONG STAPLE COT16 TON.—This section shall not apply with respect to extra 

17 long staple cotton. 

18 (e) EFFECTIVE DATE FOR PAYMENT RATE DETER19 MINATION.—The Secretary shall determine the amount of 

20 the loan deficiency payment to be made under this section 

21 to the producers on a farm with respect to a quantity of 

22 a loan commodity or commodity referred to in subsection 

23 (a)(2) using the payment rate in effect under subsection 

24 (c) as of the date the producers request the payment. 
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1 SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY2 MENTS FOR GRAZED ACREAGE. 

3 (a) ELIGIBLE PRODUCERS.— 

4 (1) IN GENERAL.—Effective for the 2008 

5 through 2012 crop years, in the case of a producer 

6 that would be eligible for a loan deficiency payment 

7 under section 1205 for wheat, barley, or oats, but 

8 that elects to use acreage planted to the wheat, bar9 ley, or oats for the grazing of livestock, the Sec10 retary shall make a payment to the producer under 

11 this section if the producer enters into an agreement 

12 with the Secretary to forgo any other harvesting of 

13 the wheat, barley, or oats on that acreage. 

14 (2) GRAZING OF TRITICALE ACREAGE.—Effec15 tive for the 2008 through 2012 crop years, with re16 spect to a producer on a farm that uses acreage 

17 planted to triticale for the grazing of livestock, the 

18 Secretary shall make a payment to the producer 

19 under this section if the producer enters into an 

20 agreement with the Secretary to forgo any other 

21 harvesting of triticale on that acreage. 

22 (b) PAYMENT AMOUNT.— 

23 (1) IN GENERAL.—The amount of a payment 

24 made under this section to a producer on a farm de25 scribed in subsection (a)(1) shall be equal to the 

26 amount determined by multiplying— 
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1 (A) the loan deficiency payment rate deter2 mined under section 1205(c) in effect, as of the 

3 date of the agreement, for the county in which 

4 the farm is located; by 

5 (B) the payment quantity determined by 

6 multiplying— 

7 (i) the quantity of the grazed acreage 

8 on the farm with respect to which the pro9 ducer elects to forgo harvesting of wheat, 

10 barley, or oats; and 

11 (ii) the payment yield in effect for the 

12 calculation of direct payments under sub13 title A with respect to that loan commodity 

14 on the farm or, in the case of a farm with15 out a payment yield for that loan com16 modity, an appropriate yield established by 

17 the Secretary in a manner consistent with 

18 section 1102 of the Farm Security and 

19 Rural Investment Act of 2002 (7 U.S.C. 

20 7912). 

21 (2) GRAZING OF TRITICALE ACREAGE.—The 

22 amount of a payment made under this section to a 

23 producer on a farm described in subsection (a)(2) 

24 shall be equal to the amount determined by multi25 plying— 
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1 (A) the loan deficiency payment rate deter2 mined under section 1205(c) in effect for 

3 wheat, as of the date of the agreement, for the 

4 county in which the farm is located; by 

5 (B) the payment quantity determined by 

6 multiplying— 

7 (i) the quantity of the grazed acreage 

8 on the farm with respect to which the pro9 ducer elects to forgo harvesting of triticale; 

10 and 

11 (ii) the payment yield in effect for the 

12 calculation of direct payments under sub13 title A with respect to wheat on the farm 

14 or, in the case of a farm without a pay15 ment yield for wheat, an appropriate yield 

16 established by the Secretary in a manner 

17 consistent with section 1102 of the Farm 

18 Security and Rural Investment Act of 

19 2002 (7 U.S.C. 7912). 

20 (c) TIME, MANNER, AND AVAILABILITY OF PAY21 MENT.— 

22 (1) TIME AND MANNER.—A payment under this 

23 section shall be made at the same time and in the 

24 same manner as loan deficiency payments are made 

25 under section 1205. 
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1 (2) AVAILABILITY.— 

2 (A) IN GENERAL.—The Secretary shall es3 tablish an availability period for the payments 

4 authorized by this section. 

5 (B) CERTAIN COMMODITIES.—In the case 

6 of wheat, barley, and oats, the availability pe7 riod shall be consistent with the availability pe8 riod for the commodity established by the Sec9 retary for marketing assistance loans author10 ized by this subtitle. 

11 (d) PROHIBITION ON CROP INSURANCE INDEMNITY

12 OR NONINSURED CROP ASSISTANCE.—A 2008 through 

13 2012 crop of wheat, barley, oats, or triticale planted on 

14 acreage that a producer elects, in the agreement required 

15 by subsection (a), to use for the grazing of livestock in 

16 lieu of any other harvesting of the crop shall not be eligible 

17 for an indemnity under the Federal Crop Insurance Act 

18 (7 U.S.C. 1501 et seq.) or noninsured crop assistance 

19 under section 196 of the Federal Agriculture Improvement 

20 and Reform Act of 1996 (7 U.S.C. 7333). 

21 SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR 

22 UPLAND COTTON. 

23 (a) SPECIAL IMPORT QUOTA.— 

24 (1) DEFINITION OF SPECIAL IMPORT QUOTA.— 

25 In this subsection, the term ‘‘special import quota’’ 
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•HR 2419 EH1S 

1 means a quantity of imports that is not subject to 

2 the over-quota tariff rate of a tariff-rate quota. 

3 (2) ESTABLISHMENT.— 

4 (A) IN GENERAL.—The President shall 

5 carry out an import quota program during the 

6 period beginning on the date of the enactment 

7 of this Act through July 31, 2013, as provided 

8 in this subsection. 

9 (B) PROGRAM REQUIREMENTS.—Whenever 

10 the Secretary determines and announces that 

11 for any consecutive 4-week period, the Friday 

12 through Thursday average price quotation for 

13 the lowest-priced United States growth, as 

quoted for Middling (M) 13 14 ⁄32-inch cotton, deliv15 ered C/F Far East, exceeds the Far East price 

16 there shall immediately be in effect a special 

17 import quota. 

18 (3) QUANTITY.—The quota shall be equal to 1 

19 week’s consumption of upland cotton by domestic 

20 mills at the seasonally adjusted average rate of the 

21 most recent 3 months for which data are available. 

22 (4) APPLICATION.—The quota shall apply to 

23 upland cotton purchased not later than 90 days 

24 after the date of the Secretary’s announcement 
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•HR 2419 EH1S 

1 under paragraph (1) and entered into the United 

2 States not later than 180 days after that date. 

3 (5) OVERLAP.—A special quota period may be 

4 established that overlaps any existing quota period if 

5 required by paragraph (2), except that a special 

6 quota period may not be established under this sub7 section if a quota period has been established under 

8 subsection (b). 

9 (6) PREFERENTIAL TARIFF TREATMENT.—The 

10 quantity under a special import quota shall be con11 sidered to be an in-quota quantity for purposes of— 

12 (A) section 213(d) of the Caribbean Basin 

13 Economic Recovery Act (19 U.S.C. 2703(d)); 

14 (B) section 204 of the Andean Trade Pref15 erence Act (19 U.S.C. 3203); 

16 (C) section 503(d) of the Trade Act of 

17 1974 (19 U.S.C. 2463(d)); and 

18 (D) General Note 3(a)(iv) to the Har19 monized Tariff Schedule. 

20 (7) LIMITATION.—The quantity of cotton en21 tered into the United States during any marketing 

22 year under the special import quota established 

23 under this subsection may not exceed the equivalent 

24 of 10 week’s consumption of upland cotton by do25 mestic mills at the seasonally adjusted average rate 
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•HR 2419 EH1S 

1 of the 3 months immediately preceding the first spe2 cial import quota established in any marketing year. 

3 (b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND

4 COTTON.— 

5 (1) DEFINITIONS.—In this subsection: 

6 (A) SUPPLY.—The term ‘‘supply’’ means, 

7 using the latest official data of the Bureau of 

8 the Census, the Department of Agriculture, and 

9 the Department of the Treasury— 

10 (i) the carry-over of upland cotton at 

11 the beginning of the marketing year (ad12 justed to 480-pound bales) in which the 

13 quota is established; 

14 (ii) production of the current crop; 

15 and 

16 (iii) imports to the latest date avail17 able during the marketing year. 

18 (B) DEMAND.—The term ‘‘demand’’ 

19 means— 

20 (i) the average seasonally adjusted an21 nual rate of domestic mill consumption 

22 during the most recent 3 months for which 

23 data are available; and 

24 (ii) the larger of— 
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1 (I) average exports of upland cot2 ton during the preceding 6 marketing 

3 years; or 

4 (II) cumulative exports of upland 

5 cotton plus outstanding export sales 

6 for the marketing year in which the 

7 quota is established. 

8 (C) LIMITED GLOBAL IMPORT QUOTA.— 

9 The term ‘‘limited global import quota’’ means 

10 a quantity of imports that is not subject to the 

11 over-quota tariff rate of a tariff-rate quota. 

12 (2) PROGRAM.—The President shall carry out 

13 an import quota program that provides that when14 ever the Secretary determines and announces that 

15 the average price of the base quality of upland cot16 ton, as determined by the Secretary, in the des17 ignated spot markets for a month exceeded 130 per18 cent of the average price of the quality of cotton in 

19 the markets for the preceding 36 months, notwith20 standing any other provision of law, there shall im21 mediately be in effect a limited global import quota 

22 subject to the following conditions: 

23 (A) QUANTITY.—The quantity of the quota 

24 shall be equal to 21 days of domestic mill con25 sumption of upland cotton at the seasonally ad-
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1 justed average rate of the most recent 3 months 

2 for which data are available. 

3 (B) QUANTITY IF PRIOR QUOTA.—If a 

4 quota has been established under this sub5 section during the preceding 12 months, the 

6 quantity of the quota next established under 

7 this subsection shall be the smaller of 21 days 

8 of domestic mill consumption calculated under 

9 subparagraph (A) or the quantity required to 

10 increase the supply to 130 percent of the de11 mand. 

12 (C) PREFERENTIAL TARIFF TREAT13 MENT.—The quantity under a limited global 

14 import quota shall be considered to be an in15 quota quantity for purposes of— 

16 (i) section 213(d) of the Caribbean 

17 Basin Economic Recovery Act (19 U.S.C. 

18 2703(d)); 

19 (ii) section 204 of the Andean Trade 

20 Preference Act (19 U.S.C. 3203); 

21 (iii) section 503(d) of the Trade Act 

22 of 1974 (19 U.S.C. 2463(d)); and 

23 (iv) General Note 3(a)(iv) to the Har24 monized Tariff Schedule. 
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1 (D) QUOTA ENTRY PERIOD.—When a 

2 quota is established under this subsection, cot3 ton may be entered under the quota during the 

4 90-day period beginning on the date the quota 

5 is established by the Secretary. 

6 (3) NO OVERLAP.—Notwithstanding paragraph 

7 (2), a quota period may not be established that over8 laps an existing quota period or a special quota pe9 riod established under subsection (a). 

10 (c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS

11 OF UPLAND COTTON.— 

12 (1) ISSUANCE OF MARKETING CERTIFICATES OR

13 CASH PAYMENTS.—During the period beginning on 

14 the date of the enactment of this Act through July 

15 31, 2013, the Secretary shall issue, on a monthly 

16 basis, marketing certificates or cash payments, at 

17 the option of the recipient, to domestic users of up18 land cotton for all documented use of upland cotton 

19 during the previous monthly period regardless of the 

20 origin of the upland cotton. 

21 (2) VALUE OF CERTIFICATES OR PAYMENTS.— 

22 The value of the marketing certificates or cash pay23 ments shall be 4 cents per pound. 

24 (3) ALLOWABLE PURPOSES.—Economic adjust25 ment assistance under this subsection shall be made 
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1 available only to domestic users of upland cotton 

2 that certify that such funds shall be used only for 

3 acquisition, construction, installation, modernization, 

4 development, conversion, or expansion of land, plant, 

5 buildings, equipment, facilities, or machinery. 

6 (4) REVIEW OR AUDIT.—The Secretary may 

7 conduct such review or audit of the records of a do8 mestic user under this subsection as determined nec9 essary to carry out the provisions of this subsection. 

10 (5) IMPROPER USE OF ASSISTANCE.—If the 

11 Secretary determines, after a review or audit of the 

12 records of the domestic user, that economic adjust13 ment assistance under this subsection was not used 

14 for the purposes specified in paragraph (3), the do15 mestic user shall be liable to repay such assistance 

16 to the Secretary, plus interest, as determined by the 

17 Secretary, and shall be ineligible to participate in 

18 the program established by this subsection for a pe19 riod of 12 months following the determination of the 

20 Secretary. 

21 SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA 

22 LONG STAPLE COTTON. 

23 (a) COMPETITIVENESS PROGRAM.—Notwithstanding 

24 any other provision of law, during the period beginning 
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1 on the date of the enactment of this Act through July 31, 

2 2013, the Secretary shall carry out a program— 

3 (1) to maintain and expand the domestic use of 

4 extra long staple cotton produced in the United 

5 States; 

6 (2) to increase exports of extra long staple cot7 ton produced in the United States; and 

8 (3) to ensure that extra long staple cotton pro9 duced in the United States remains competitive in 

10 world markets. 

11 (b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under 

12 the program, the Secretary shall make payments available 

13 under this section whenever— 

14 (1) for a consecutive 4-week period, the world 

15 market price for the lowest priced competing growth 

16 of extra long staple cotton (adjusted to United 

17 States quality and location and for other factors af18 fecting the competitiveness of such cotton), as deter19 mined by the Secretary, is below the prevailing 

20 United States price for a competing growth of extra 

21 long staple cotton; and 

22 (2) the lowest priced competing growth of extra 

23 long staple cotton (adjusted to United States quality 

24 and location and for other factors affecting the com25 petitiveness of such cotton), as determined by the 
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1 Secretary, is less than 134 percent of the loan rate 

2 for extra long staple cotton. 

3 (c) ELIGIBLE RECIPIENTS.—The Secretary shall 

4 make payments available under this section to domestic 

5 users of extra long staple cotton produced in the United 

6 States and exporters of extra long staple cotton produced 

7 in the United States that enter into an agreement with 

8 the Commodity Credit Corporation to participate in the 

9 program under this section. 

10 (d) PAYMENT AMOUNT.—Payments under this sec11 tion shall be based on the amount of the difference in the 

12 prices referred to in subsection (b)(1) during the fourth 

13 week of the consecutive 4-week period multiplied by the 

14 amount of documented purchases by domestic users and 

15 sales for export by exporters made in the week following 

16 such a consecutive 4-week period. 

17 (e) FORM OF PAYMENT.—Payments under this sec18 tion shall be made through the issuance of cash or mar19 keting certificates, at the option of eligible recipients of 

20 the payments. 

21 SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH 

22 MOISTURE FEED GRAINS AND SEED COTTON. 

23 (a) HIGH MOISTURE FEED GRAINS.— 

24 (1) DEFINITION OF HIGH MOISTURE STATE.— 

25 In this subsection, the term ‘‘high moisture state’’ 
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1 means corn or grain sorghum having a moisture con2 tent in excess of Commodity Credit Corporation 

3 standards for marketing assistance loans made by 

4 the Secretary under section 1201. 

5 (2) RECOURSE LOANS AVAILABLE.—For each of 

6 the 2008 through 2012 crops of corn and grain sor7 ghum, the Secretary shall make available recourse 

8 loans, as determined by the Secretary, to producers 

9 on a farm that— 

10 (A) normally harvest all or a portion of 

11 their crop of corn or grain sorghum in a high 

12 moisture state; 

13 (B) present— 

14 (i) certified scale tickets from an in15 spected, certified commercial scale, includ16 ing a licensed warehouse, feedlot, feed mill, 

17 distillery, or other similar entity approved 

18 by the Secretary, pursuant to regulations 

19 issued by the Secretary; or 

20 (ii) field or other physical measure21 ments of the standing or stored crop in re22 gions of the United States, as determined 

23 by the Secretary, that do not have certified 

24 commercial scales from which certified 
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1 scale tickets may be obtained within rea2 sonable proximity of harvest operation; 

3 (C) certify that they were the owners of 

4 the feed grain at the time of delivery to, and 

5 that the quantity to be placed under loan under 

6 this subsection was in fact harvested on the 

7 farm and delivered to, a feedlot, feed mill, or 

8 commercial or on-farm high-moisture storage 

9 facility, or to a facility maintained by the users 

10 of corn and grain sorghum in a high moisture 

11 state; and 

12 (D) comply with deadlines established by 

13 the Secretary for harvesting the corn or grain 

14 sorghum and submit applications for loans 

15 under this subsection within deadlines estab16 lished by the Secretary. 

17 (3) ELIGIBILITY OF ACQUIRED FEED GRAINS.— 

18 A loan under this subsection shall be made on a 

19 quantity of corn or grain sorghum of the same crop 

20 acquired by the producer equivalent to a quantity 

21 determined by multiplying— 

22 (A) the acreage of the corn or grain sor23 ghum in a high moisture state harvested on the 

24 producer’s farm; by 
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1 (B) the lower of the farm program pay2 ment yield used to make counter-cyclical pay3 ments under subtitle A or the actual yield on a 

4 field, as determined by the Secretary, that is 

5 similar to the field from which the corn or grain 

6 sorghum was obtained. 

7 (b) RECOURSE LOANS AVAILABLE FOR SEED COT8 TON.—For each of the 2008 through 2012 crops of upland 

9 cotton and extra long staple cotton, the Secretary shall 

10 make available recourse seed cotton loans, as determined 

11 by the Secretary, on any production. 

12 (c) REPAYMENT RATES.—Repayment of a recourse 

13 loan made under this section shall be at the loan rate es14 tablished for the commodity by the Secretary, plus interest 

15 (determined in accordance with section 163 of the Federal 

16 Agriculture Improvement and Reform Act of 1996 (7 

17 U.S.C. 7283)). 

18 SEC. 1210. DEADLINE FOR REPAYMENT OF MARKETING AS19 SISTANCE LOAN FOR PEANUTS. 

20 (a) JUNE 30 REDEMPTION DEADLINE.—Notwith21 standing any other provision of law, a marketing assist22 ance loan for peanuts may not be redeemed after June 

23 30 of the year subsequent to the year in which the peanuts 

24 were harvested. 
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1 (b) EFFECT OF FAILURE TO REDEEM.—A marketing 

2 assistance loan for peanuts that is not redeemed before 

3 the deadline imposed by subsection (a) shall be deemed 

4 to be forfeited to the Commodity Credit Corporation. 

5 SEC. 1211. COMMODITY QUALITY INCENTIVE PAYMENTS 

6 FOR HEALTHY OILSEEDS. 

7 (a) INCENTIVE PAYMENTS REQUIRED.—Subject to 

8 the availability of funds for this purpose, the Secretary 

9 shall provide commodity quality incentive payments during 

10 the 2009 through 2013 crop years for the production of 

11 oilseeds with specialized traits that enhance human health, 

12 as determined by the Secretary. 

13 (b) COVERED OILSEEDS.—The Secretary shall make 

14 payments under this section only for the production of an 

15 oilseed that has, as determined by the Secretary— 

16 (1) been demonstrated to reduce or eliminate 

17 the need to partially hydrogenate the oil derived 

18 from the oilseed for use in human consumption; and 

19 (2) 1 or more traits for which compelling im20 pediments to commercialization have been identified. 

21 (c) REQUEST FOR PROPOSALS.— 

22 (1) ISSUANCE.—If funds are available to carry 

23 out this section for a crop year, the Secretary shall 

24 issue a request for proposals for payments under 

25 this section. 
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1 (2) MULTIYEAR PROPOSALS.—An entity may 

2 submit a multiyear proposal for payments under this 

3 section. 

4 (3) CONTENT OF PROPOSALS.—A proposal for 

5 payments under this section shall include a descrip6 tion of— 

7 (A) each trait of the oilseed described in 

8 subsection (b)(2) and the value of the trait as 

9 a matter of public policy; 

10 (B) the projected market size and value of 

11 the trait; 

12 (C) the projected impact of the proposal 

13 on— 

14 (i) the future price of loan commod15 ities; and 

16 (ii) if appropriate, on Federal Govern17 ment farm program outlays to support 

18 loan commodities; 

19 (D) a range for the amount of total per 

20 bushel premiums to be paid to producers; 

21 (E) a per bushel amount of incentive pay22 ments requested for each year under this sec23 tion that— 

(i) does not exceed 1 24 ⁄3 of the total pre25 mium offered for any year; and 
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•HR 2419 EH1S 

1 (ii) declines over time; 

2 (F) the period of time, of not to exceed 4 

3 years, during which incentive payments are to 

4 be provided to producers; and 

5 (G) the targeted total quantity of produc6 tion and estimated acres needed to produce the 

7 targeted quantity for each year under this sec8 tion. 

9 (d) CONTRACTS FOR PRODUCTION.— 

10 (1) IN GENERAL.—The Secretary shall approve 

11 successful proposals submitted under subsection (c) 

12 on a timely basis so as to allow successful applicants 

13 to offer production contracts to producers beginning 

14 in advance of the spring planting season for the 

15 2009 crop year. 

16 (2) MULTIYEAR CONTRACTS.—A successful ap17 plicant may enter into a multiyear contract with— 

18 (A) a specific group of producers; or 

19 (B) various groups of producers. 

20 (3) TIMING OF PAYMENTS.—The Secretary 

21 shall make payments under this section after the 

22 Secretary receives documentation that the total pre23 mium offered for crops produced under a contract 

24 (including the amount of incentive payments) has 

25 been made to covered producers. 
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1 (e) ADMINISTRATION.—If funding provided for a crop 

2 year is not fully allocated under the initial request for pro3 posals under subsection (c), the Secretary shall issue addi4 tional requests for proposals for subsequent years under 

5 this section. 

6 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated such sums as are nec8 essary to carry out this section for each of fiscal years 

9 2009 through 2013. 

10 Subtitle C—Sugar 

11 SEC. 1301. SUGAR PROGRAM. 

12 (a) IN GENERAL.—Section 156 of the Federal Agri13 culture Improvement and Reform Act of 1996 (7 U.S.C. 

14 7272) is amended to read as follows: 

15 ‘‘SEC. 156. SUGAR PROGRAM. 

16 ‘‘(a) SUGARCANE.—The Secretary shall make loans 

17 for raw cane sugar available to processors of domestically 

18 grown sugarcane at a rate equal to 18.5 cents per pound 

19 for each of the 2008 through 2012 crop years. 

20 ‘‘(b) SUGAR BEETS.—The Secretary shall make loans 

21 for refined beet sugar available to processors of domesti22 cally grown sugar beets at a rate equal to 23.5 cents per 

23 pound for each of the 2008 through 2012 crop years. 

24 ‘‘(c) TERM OF LOANS.— 
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1 ‘‘(1) IN GENERAL.—A loan under this section 

2 during any fiscal year shall be made available not 

3 earlier than the beginning of the fiscal year and 

4 shall mature at the earlier of— 

5 ‘‘(A) the end of the 9-month period begin6 ning on the first day of the first month after 

7 the month in which the loan is made; or 

8 ‘‘(B) the end of the fiscal year in which the 

9 loan is made. 

10 ‘‘(2) SUPPLEMENTAL LOANS.—In the case of a 

11 loan made under this section in the last 3 months 

12 of a fiscal year, the processor may repledge the 

13 sugar as collateral for a second loan in the subse14 quent fiscal year, except that the second loan shall— 

15 ‘‘(A) be made at the loan rate in effect at 

16 the time the first loan was made; and 

17 ‘‘(B) mature in 9 months less the quantity 

18 of time that the first loan was in effect. 

19 ‘‘(d) LOAN TYPE; PROCESSOR ASSURANCES.— 

20 ‘‘(1) NONRECOURSE LOANS.—The Secretary 

21 shall carry out this section through the use of non22 recourse loans. 

23 ‘‘(2) PROCESSOR ASSURANCES.— 

24 ‘‘(A) IN GENERAL.—The Secretary shall 

25 obtain from each processor that receives a loan 
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•HR 2419 EH1S 

1 under this section such assurances as the Sec2 retary considers adequate to ensure that the 

3 processor will provide payments to producers 

4 that are proportional to the value of the loan 

5 received by the processor for the sugar beets 

6 and sugarcane delivered by producers to the 

7 processor. 

8 ‘‘(B) MINIMUM PAYMENTS.— 

9 ‘‘(i) IN GENERAL.—Subject to clause 

10 (ii), the Secretary may establish appro11 priate minimum payments for purposes of 

12 this paragraph. 

13 ‘‘(ii) LIMITATION.—In the case of 

14 sugar beets, the minimum payment estab15 lished under clause (i) shall not exceed the 

16 rate of payment provided for under the ap17 plicable contract between a sugar beet pro18 ducer and a sugar beet processor. 

19 ‘‘(3) ADMINISTRATION.—The Secretary may 

20 not impose or enforce any prenotification require21 ment, or similar administrative requirement not oth22 erwise in effect on May 13, 2002, that has the effect 

23 of preventing a processor from electing to forfeit the 

24 loan collateral (of an acceptable grade and quality) 

25 on the maturity of the loan. 
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1 ‘‘(e) LOANS FOR IN-PROCESS SUGAR.— 

2 ‘‘(1) DEFINITION OF IN-PROCESS SUGARS AND

3 SYRUPS.—In this subsection, the term ‘in-process 

4 sugars and syrups’ does not include raw sugar, liq5 uid sugar, invert sugar, invert syrup, or other fin6 ished product that is otherwise eligible for a loan 

7 under subsection (a) or (b). 

8 ‘‘(2) AVAILABILITY.—The Secretary shall make 

9 nonrecourse loans available to processors of a crop 

10 of domestically grown sugarcane and sugar beets for 

11 in-process sugars and syrups derived from the crop. 

12 ‘‘(3) LOAN RATE.—The loan rate shall be equal 

13 to 80 percent of the loan rate applicable to raw cane 

14 sugar or refined beet sugar, as determined by the 

15 Secretary on the basis of the source material for the 

16 in-process sugars and syrups. 

17 ‘‘(4) FURTHER PROCESSING ON FORFEITURE.— 

18 ‘‘(A) IN GENERAL.—As a condition of the 

19 forfeiture of in-process sugars and syrups serv20 ing as collateral for a loan under paragraph (2), 

21 the processor shall, within such reasonable time 

22 period as the Secretary may prescribe and at no 

23 cost to the Commodity Credit Corporation, con24 vert the in-process sugars and syrups into raw 

25 cane sugar or refined beet sugar of acceptable 
81 

•HR 2419 EH1S 

1 grade and quality for sugars eligible for loans 

2 under subsection (a) or (b). 

3 ‘‘(B) TRANSFER TO CORPORATION.—Once 

4 the in-process sugars and syrups are fully proc5 essed into raw cane sugar or refined beet sugar, 

6 the processor shall transfer the sugar to the 

7 Commodity Credit Corporation. 

8 ‘‘(C) PAYMENT TO PROCESSOR.—On trans9 fer of the sugar, the Secretary shall make a 

10 payment to the processor in an amount equal to 

11 the amount obtained by multiplying— 

12 ‘‘(i) the difference between— 

13 ‘‘(I) the loan rate for raw cane 

14 sugar or refined beet sugar, as appro15 priate; and 

16 ‘‘(II) the loan rate the processor 

17 received under paragraph (3); by 

18 ‘‘(ii) the quantity of sugar transferred 

19 to the Secretary. 

20 ‘‘(5) LOAN CONVERSION.—If the processor does 

21 not forfeit the collateral as described in paragraph 

22 (4), but instead further processes the in-process sug23 ars and syrups into raw cane sugar or refined beet 

24 sugar and repays the loan on the in-process sugars 

25 and syrups, the processor may obtain a loan under 
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•HR 2419 EH1S 

1 subsection (a) or (b) for the raw cane sugar or re2 fined beet sugar, as appropriate. 

3 ‘‘(6) TERM OF LOAN.—The term of a loan 

4 made under this subsection for a quantity of in-proc5 ess sugars and syrups, when combined with the term 

6 of a loan made with respect to the raw cane sugar 

7 or refined beet sugar derived from the in-process 

8 sugars and syrups, may not exceed 9 months, con9 sistent with subsection (c). 

10 ‘‘(f) AVOIDING FORFEITURES; CORPORATION INVEN11 TORY DISPOSITION.— 

12 ‘‘(1) IN GENERAL.—Subject to subsection 

13 (d)(3), to the maximum extent practicable, the Sec14 retary shall operate the program established under 

15 this section at no cost to the Federal Government by 

16 avoiding the forfeiture of sugar to the Commodity 

17 Credit Corporation. 

18 ‘‘(2) INVENTORY DISPOSITION.— 

19 ‘‘(A) IN GENERAL.—To carry out para20 graph (1), the Commodity Credit Corporation 

21 may accept bids to obtain raw cane sugar or re22 fined beet sugar in the inventory of the Com23 modity Credit Corporation from (or otherwise 

24 make available such commodities, on appro25 priate terms and conditions, to) processors of 
83 

•HR 2419 EH1S 

1 sugarcane and processors of sugar beets (acting 

2 in conjunction with the producers of the sugar3 cane or sugar beets processed by the proc4 essors) in return for the reduction of production 

5 of raw cane sugar or refined beet sugar, as ap6 propriate. 

7 ‘‘(B) BIOENERGY FEEDSTOCK.—If a re8 duction in the quantity of production accepted 

9 under subparagraph (A) involves sugar beets or 

10 sugarcane that has already been planted, the 

11 sugar beets or sugarcane so planted may not be 

12 used for any commercial purpose other than as 

13 a bioenergy feedstock. 

14 ‘‘(C) ADDITIONAL AUTHORITY.—The au15 thority provided under this paragraph is in ad16 dition to any authority of the Commodity Credit 

17 Corporation under any other law. 

18 ‘‘(g) INFORMATION REPORTING.— 

19 ‘‘(1) DUTY OF PROCESSORS AND REFINERS TO

20 REPORT.—A sugarcane processor, cane sugar re21 finer, and sugar beet processor shall furnish the Sec22 retary, on a monthly basis, such information as the 

23 Secretary may require to administer sugar pro24 grams, including the quantity of purchases of sugar-
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•HR 2419 EH1S 

1 cane, sugar beets, and sugar, and production, impor2 tation, distribution, and stock levels of sugar. 

3 ‘‘(2) DUTY OF PRODUCERS TO REPORT.— 

4 ‘‘(A) PROPORTIONATE SHARE STATES.—As 

5 a condition of a loan made to a processor for 

6 the benefit of a producer, the Secretary shall 

7 require each producer of sugarcane located in a 

8 State (other than the Commonwealth of Puerto 

9 Rico) in which there are in excess of 250 pro10 ducers of sugarcane to report, in the manner 

11 prescribed by the Secretary, the sugarcane 

12 yields and acres planted to sugarcane of the 

13 producer. 

14 ‘‘(B) OTHER STATES.—The Secretary may 

15 require each producer of sugarcane or sugar 

16 beets not covered by subparagraph (A) to re17 port, in a manner prescribed by the Secretary, 

18 the yields of, and acres planted to, sugarcane or 

19 sugar beets, respectively, of the producer. 

20 ‘‘(3) DUTY OF IMPORTERS TO REPORT.— 

21 ‘‘(A) IN GENERAL.—Except as provided in 

22 subparagraph (B), the Secretary shall require 

23 an importer of sugars, syrups, or molasses to be 

24 used for human consumption or to be used for 

25 the extraction of sugar for human consumption 
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•HR 2419 EH1S 

1 to report, in the manner prescribed by the Sec2 retary, the quantities of the products imported 

3 by the importer and the sugar content or equiv4 alent of the products. 

5 ‘‘(B) TARIFF-RATE QUOTAS.—Subpara6 graph (A) shall not apply to sugars, syrups, or 

7 molasses that are within the quantities of tariff8 rate quotas that are subject to the lower rate 

9 of duties. 

10 ‘‘(4) COLLECTION OF INFORMATION ON MEX11 ICO.— 

12 ‘‘(A) COLLECTION.—The Secretary shall 

13 collect— 

14 ‘‘(i) information on the production, 

15 consumption, stocks and trade of sugar in 

16 Mexico, including United States exports of 

17 sugar to Mexico; and 

18 ‘‘(ii) publicly available information on 

19 Mexican production, consumption, and 

20 trade of high fructose corn syrups, includ21 ing United States exports of high fructose 

22 corn syrups to Mexico. 

23 ‘‘(B) PUBLICATION.—The data collected 

24 under subparagraph (A) shall be published in 
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•HR 2419 EH1S 

1 each edition of the World Agricultural Supply 

2 and Demand Estimates. 

3 ‘‘(5) PENALTY.—Any person willfully failing or 

4 refusing to furnish the information required to be 

5 reported by paragraph (1), (2), or (3), or furnishing 

6 willfully false information, shall be subject to a civil 

7 penalty of not more than $10,000 for each such vio8 lation. 

9 ‘‘(6) MONTHLY REPORTS.—Taking into consid10 eration the information received under this sub11 section, the Secretary shall publish on a monthly 

12 basis composite data on production, imports, dis13 tribution, and stock levels of sugar. 

14 ‘‘(h) SUBSTITUTION OF REFINED SUGAR.—For pur15 poses of Additional U.S. Note 6 to chapter 17 of the Har16 monized Tariff Schedule of the United States and the re17 export programs and polyhydric alcohol program adminis18 tered by the Secretary, all refined sugars (whether derived 

19 from sugar beets or sugarcane) produced by cane sugar 

20 refineries and beet sugar processors shall be fully substi21 tutable for the export of sugar and sugar-containing prod22 ucts under those programs. 

23 ‘‘(i) EFFECTIVE PERIOD.—This section shall be ef24 fective only for the 2008 through 2012 crops of sugar 

25 beets and sugarcane.’’. 
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1 (b) TRANSITION.—The Secretary of Agriculture shall 

2 make loans for raw cane sugar and refined beet sugar 

3 available for the 2007 crop year on the terms and condi4 tions provided in section 156 of the Federal Agriculture 

5 Improvement and Reform Act of 1996 (7 U.S.C. 7272), 

6 as in effect on the day before the date of the enactment 

7 of this Act. 

8 SEC. 1302. UNITED STATES MEMBERSHIP IN THE INTER9 NATIONAL SUGAR ORGANIZATION. 

10 The Secretary of Agriculture shall work with the Sec11 retary of State to restore United States membership in 

12 the International Sugar Organization within one year 

13 after the date of enactment of this Act. 

14 SEC. 1303. FLEXIBLE MARKETING ALLOTMENTS FOR 

15 SUGAR. 

16 (a) DEFINITION OF HUMAN CONSUMPTION.—Section 

17 359a of the Agricultural Adjustment Act of 1938 (7 

18 U.S.C. 1359aa) is amended— 

19 (1) by redesignating paragraphs (1) through 

20 (4) as paragraphs (2) through (5), respectively; and 

21 (2) by inserting before paragraph (2), as so re22 designated, the following new paragraph (1): 

23 ‘‘(1) HUMAN CONSUMPTION.—The term 

24 ‘human consumption’, when used in the context of a 

25 reference to sugar (whether in the form of sugar, in- 
88 

•HR 2419 EH1S 

1 process sugar, syrup, molasses, or in some other 

2 form) for human consumption, includes sugar for 

3 use in human food, beverages, or similar products.’’. 

4 (b) SUGAR ALLOTMENTS.—Section 359b of the Agri5 cultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is 

6 amended to read as follows: 

7 ‘‘SEC. 359b. FLEXIBLE MARKETING ALLOTMENTS FOR 

8 SUGAR. 

9 ‘‘(a) SUGAR ESTIMATES.— 

10 ‘‘(1) IN GENERAL.—Not later than August 1 

11 before the beginning of each of the 2008 through 

12 2012 crop years for sugarcane and sugar beets, the 

13 Secretary shall estimate— 

14 ‘‘(A) the quantity of sugar that will be 

15 subject to human consumption in the United 

16 States during the crop year; 

17 ‘‘(B) the quantity of sugar that would pro18 vide for reasonable carryover stocks; 

19 ‘‘(C) the quantity of sugar that will be 

20 available from carry-in stocks for human con21 sumption in the United States during the crop 

22 year; 

23 ‘‘(D) the quantity of sugar that will be 

24 available from the domestic processing of sugar-
89 

•HR 2419 EH1S 

1 cane, sugar beets, and in-process beet sugar; 

2 and 

3 ‘‘(E) the quantity of sugars, syrups, and 

4 molasses that will be imported for human con5 sumption or to be used for the extraction of 

6 sugar for human consumption in the United 

7 States during the crop year, whether such arti8 cles are under a tariff-rate quota or are in ex9 cess or outside of a tariff-rate quota. 

10 ‘‘(2) EXCLUSION.—The estimates under this 

11 subsection shall not apply to sugar imported for the 

12 production of polyhydric alcohol or to any sugar re13 fined and reexported in refined form or in products 

14 containing sugar. 

15 ‘‘(3) REESTIMATES.—The Secretary shall make 

16 reestimates of sugar consumption, stocks, produc17 tion, and imports for a crop year as necessary, but 

18 no later than the beginning of each of the second 

19 through fourth quarters of the crop year. 

20 ‘‘(b) SUGAR ALLOTMENTS.— 

21 ‘‘(1) ESTABLISHMENT.—By the beginning of 

22 each crop year, the Secretary shall establish for that 

23 crop year appropriate allotments under section 359c 

24 for the marketing by processors of sugar processed 

25 from sugar cane or sugar beets or in-process beet 
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•HR 2419 EH1S 

1 sugar (whether such sugar beets or in-process beet 

2 sugar was produced domestically or imported) at a 

3 level sufficient to maintain raw and refined sugar 

4 prices above forfeiture levels so that there will be no 

5 forfeitures of sugar to the Commodity Credit Cor6 poration under the loan program for sugar estab7 lished under section 156 of the Federal Agriculture 

8 Improvement and Reform Act of 1996 (7 U.S.C. 

9 7272). 

10 ‘‘(2) MINIMUM.—The level of allotments estab11 lished under paragraph (1) may not be less than 85 

12 percent of the estimated quantity of sugar for do13 mestic human consumption for the crop year. 

14 ‘‘(3) PRODUCTS.—The Secretary may include 

15 sugar products, whose majority content is sucrose, in 

16 the allotments established under paragraph (1) if 

17 the Secretary determines that the inclusion of such 

18 sugar products is appropriate for controlling the 

19 supply of sugar for human consumption. 

20 ‘‘(c) COVERAGE OF ALLOTMENTS.— 

21 ‘‘(1) IN GENERAL.—The marketing allotments 

22 provided for in this part shall apply to the mar23 keting by processors of sugar intended for domestic 

24 human consumption that has been processed from 

25 sugar cane or sugar beets or in-process beet sugar 
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1 (whether such sugar beets or in-process beet sugar 

2 was produced domestically or imported). 

3 ‘‘(2) EXCEPTIONS.—Consistent with the admin4 istration of marketing allotments during crop years 

5 2002 through 2007, the marketing allotments shall 

6 not apply to sugar sold— 

7 ‘‘(A) to facilitate the exportation of such 

8 sugar to a foreign country, except that such ex9 ports of sugar shall not be eligible to receive 

10 credits under re-export programs for refined 

11 sugar or sugar containing products adminis12 tered by the Secretary; 

13 ‘‘(B) to enable another processor to fulfill 

14 an allocation established for such other proc15 essor, except that such sales must be made be16 fore May 1 and must be reported to the Sec17 retary; or 

18 ‘‘(C) for uses other than domestic human 

19 consumption. 

20 ‘‘(d) PROHIBITIONS.— 

21 ‘‘(1) IN GENERAL.—During any crop year or 

22 portion thereof for which marketing allotments have 

23 been established, no processor of sugar beets or sug24 arcane shall market for domestic human consump25 tion a quantity of sugar in excess of the allocation 
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1 established for such processor, except to enable an2 other processor to fulfill an allocation established for 

3 such other processor or to facilitate the exportation 

4 of such sugar. 

5 ‘‘(2) CIVIL PENALTY.—Any processor who 

6 knowingly violates paragraph (1) shall be liable to 

7 the Commodity Credit Corporation for a civil penalty 

8 in an amount equal to 3 times the United States 

9 market value, at the time of the commission of the 

10 violation, of that quantity of sugar involved in the 

11 violation. 

12 ‘‘(3) DEFINITION OF MARKET.—For purposes 

13 of this part, the term ‘market’ shall mean to sell or 

14 otherwise dispose of in commerce in the United 

15 States, including— 

16 ‘‘(A) the forfeiture of sugar under the loan 

17 program for sugar under section 156 of the 

18 Federal Agriculture Improvement and Reform 

19 Act of 1996 (7 U.S.C. 7272) and such forfeited 

20 sugar shall be deemed to have been marketed 

21 during the crop year in which the loan was 

22 made; 

23 ‘‘(B) with respect to any integrated proc24 essor and refiner, the movement of raw cane 

25 sugar into the refining process; and 
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1 ‘‘(C) the sale of sugar for the production 

2 of ethanol or other bioenergy product, if such 

3 ethanol or bioenergy product is the subject of a 

4 payment under the feedstock flexibility program 

5 for bioenergy producers.’’. 

6 (c) ESTABLISHMENT.—Section 359c of the Agricul7 tural Adjustment Act of 1938 (7 U.S.C. 1359cc) is 

8 amended— 

9 (1) by striking subsection (b) and inserting the 

10 following new subsection: 

11 ‘‘(b) OVERALL ALLOTMENT QUANTITY.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall estab13 lish the overall quantity of sugar to be allotted for 

14 the crop year (in this part referred to as the ‘overall 

15 allotment quantity’) at a level sufficient to maintain 

16 raw and refined sugar prices above forfeiture levels 

17 to avoid the forfeiture of sugar to the Commodity 

18 Credit Corporation. 

19 ‘‘(2) MINIMUM.—The overall allotment quantity 

20 established under paragraph (1) may not be less 

21 than 85 percent of the estimated quantity of sugar 

22 for domestic human consumption for the crop year. 

23 ‘‘(3) ADJUSTMENT.—Subject to paragraphs (1) 

24 and (2), the Secretary shall adjust the overall allot25 ment quantity— 
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1 ‘‘(A) to maintain raw and refined sugar 

2 prices above forfeiture levels to avoid the for3 feiture of sugar to the Commodity Credit Cor4 poration; and 

5 ‘‘(B) to maintain adequate supplies of raw 

6 and refined sugar in the domestic market.’’; 

7 (2) in subsection (d)(2), by inserting before the 

8 period the following: ‘‘or in-process beet sugar’’; 

9 (3) in subsection (g)(1), by inserting at the end 

10 the following new sentence: ‘‘However, the overall al11 lotment quantity may not be reduced to a quantity 

12 less than 85 percent of the estimated quantity of 

13 sugar for domestic human consumption for the crop 

14 year.’’; and 

15 (4) by striking subsection (h). 

16 (d) ALLOCATION OF MARKETING ALLOTMENTS.— 

17 Section 359d(b) of the Agricultural Adjustment Act of 

18 1938 (7 U.S.C. 1359dd(b)) is amended— 

19 (1) in paragraph (1)(F), by striking ‘‘Except as 

20 otherwise provided in section 359f(c)(8), if’’ and in21 serting ‘‘If’’; and 

22 (2) in paragraph (2), by striking subparagraphs 

23 (H) and (I) and inserting the following new subpara24 graph: 
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1 ‘‘(H) NEW ENTRANTS STARTING PRODUC2 TION, REOPENING, OR ACQUIRING AN EXISTING

3 FACTORY WITH PRODUCTION HISTORY.— 

4 ‘‘(i) ALLOCATION FOR A NEW EN5 TRANT THAT HAS CONSTRUCTED A NEW

6 FACTORY OR REOPENED A FACTORY THAT

7 WAS NOT OPERATING SINCE BEFORE

8 1998.—If a New Entrant constructs a new 

9 sugar beet processing factory, or acquires 

10 and reopens a sugar beet processing fac11 tory that last processed sugar beets prior 

12 to the 1998 crop year and there is no allo13 cation currently associated with the fac14 tory, the Secretary shall— 

15 ‘‘(I) assign an allocation for beet 

16 sugar to the New Entrant that pro17 vides a fair and equitable distribution 

18 of the allocations for beet sugar in 

19 order to enable the New Entrant to 

20 achieve a factory utilization rate com21 parable to the factory utilization rates 

22 of other similarly situated processors; 

23 and 

24 ‘‘(II) reduce the allocations for 

25 beet sugar of all other processors on 
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1 a pro rata basis to reflect the alloca2 tion to the New Entrant. 

3 ‘‘(ii) ALLOCATION FOR A NEW EN4 TRANT THAT HAS ACQUIRED AN EXISTING

5 FACTORY WITH A PRODUCTION HISTORY.— 

6 If a New Entrant acquires an existing fac7 tory that has processed sugar beets from 

8 the 1998 or later crop years and has a 

9 production history, then, upon the mutual 

10 agreement of the New Entrant and the 

11 company currently holding the allocation 

12 associated with the factory, the Secretary 

13 shall transfer to the New Entrant a por14 tion of allocation of the current allocation 

15 holder to reflect the historical contribution 

16 of the production of the acquired factory to 

17 the total allocation of the current alloca18 tion holder. In the absence of mutual 

19 agreement, the new entrant shall be ineli20 gible for a beet sugar allocation. 

21 ‘‘(iii) APPEALS.—Any decision made 

22 under this subsection may be appealed to 

23 the Secretary pursuant to section 359i. 

24 ‘‘(iv) DEFINITION.—In this subpara25 graph, the term ‘New Entrant’ means an 
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1 individual, corporation, or other entity that 

2 does not have an allocation of the beet 

3 sugar allotment under this part, is not af4 filiated with any other individual, corpora5 tion, or entity that has an allocation of 

6 beet sugar under this part (known as a 

7 ‘third party’), and will process sugar beets 

8 produced by sugar beet growers under con9 tract with the New Entrant for the produc10 tion of sugar at the new or re-opened fac11 tory that is the basis for the New Entrant 

12 allocation. 

13 ‘‘(v) AFFILIATION.—For purposes of 

14 this subparagraph, a New Entrant and a 

15 third party shall be deemed to be ‘affili16 ated’ if— 

17 ‘‘(I) the third party has an own18 ership interest in the New Entrant; 

19 ‘‘(II) the New Entrant and the 

20 third party have owners in common; 

21 ‘‘(III) the third party has the 

22 ability to exercise control over the 

23 New Entrant by organizational rights, 

24 contractual rights, or any other 

25 means; 
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1 ‘‘(IV) the third party has a con2 tractual relationship with the New 

3 Entrant by which the New Entrant 

4 will make use of the facilities or assets 

5 of such third party; or 

6 ‘‘(V) any other similar cir7 cumstance exists by which the Sec8 retary determines that the New En9 trant and the third party are affili10 ated.’’. 

11 (e) REASSIGNMENT OF DEFICITS.—Section 359e(b) 

12 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 

13 1359ee(b)) is amended in both paragraphs (1)(D) and 

14 (2)(C) by inserting ‘‘of raw cane sugar’’ after ‘‘imports’’. 

15 (f) PROVISIONS APPLICABLE TO PRODUCERS.—Sec16 tion 359f(c) of the Agricultural Adjustment Act of 1938 

17 (7 U.S.C. 1359ff(c)) is amended— 

18 (1) in paragraph (2), by striking ‘‘quantity of 

19 sugarcane’’ and inserting ‘‘quantity of sugar pro20 duced from sugarcane’’; 

21 (2) in paragraph (5)(C), by inserting ‘‘for 

22 sugar’’ before ‘‘in excess of the farm’s proportionate 

23 share’’; 
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1 (3) in paragraph (7), by striking ‘‘amount of 

2 sugarcane’’ and inserting ‘‘amount of sugar from 

3 sugarcane’’; and 

4 (4) by striking paragraph (8) and inserting the 

5 following new paragraph: 

6 ‘‘(8) SEED DEFINITION.—In this subsection, 

7 the term ‘seed’ includes only varieties of seed dedi8 cated to the production of sugarcane from which is 

9 produced sugar for human consumption, and ex10 cludes seed of high-fiber cane varieties dedicated to 

11 other uses, as determined by the Secretary.’’. 

12 (g) SPECIAL RULES.—Section 359g of the Agricul13 tural Adjustment Act of 1938 (7 U.S.C. 1359gg) is 

14 amended— 

15 (1) by striking subsection (a) and inserting the 

16 following new subsection: 

17 ‘‘(a) TRANSFER OF ACREAGE BASE HISTORY.— 

18 ‘‘(1) TRANSFER AUTHORIZED.—For the pur19 pose of establishing proportionate shares for sugar20 cane farms under section 359f(c), the Secretary, on 

21 application of any producer, with the written consent 

22 of all owners of a farm, may transfer the acreage 

23 base history of the farm to any other parcels of land 

24 of the applicant. 

25 ‘‘(2) CONVERTED ACREAGE BASE.— 
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1 ‘‘(A) IN GENERAL.—Sugarcane base acre2 age established under section 359f(c) that has 

3 been or is converted to non-agricultural use on 

4 or after May 13, 2002, may be transferred to 

5 other land suitable for the production of sugar6 cane that can be delivered to a processor in a 

7 proportionate share State in accordance with 

8 this paragraph. 

9 ‘‘(B) NOTIFICATION.—Not later than 90 

10 days after the date of the enactment of the 

11 Farm, Nutrition, and Bioenergy Act of 2007, 

12 or the subsequent conversion of sugarcane base 

13 acreage to a non-agricultural use, the Sec14 retary, acting through the Farm Service Agen15 cy, shall notify the affected landowner (or land16 owners) of the transferability of the applicable 

17 sugarcane base acreage. 

18 ‘‘(C) INITIAL TRANSFER PERIOD.—The 

19 owner of the base attributable to the acreage at 

20 the time of the conversion shall be afforded 90 

21 days from the date of the receipt of the notifi22 cation under subparagraph (B) to transfer the 

23 base to one or more farms owned by the owner. 

24 ‘‘(D) GROWER OF RECORD.—If the trans25 fer under subparagraph (C) cannot be accom-
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1 plished within the time period prescribed in 

2 such subparagraph, then the grower of record 

3 with regard to the base acreage on the date on 

4 which the acreage was converted to non-agricul5 tural use shall be so notified, and shall be af6 forded 90 days from the date of the receipt of 

7 such notification to transfer the base to one or 

8 more farms operated by the grower. 

9 ‘‘(E) POOL DISTRIBUTION.—If the trans10 fers under subparagraphs (B) and (C) cannot 

11 be accomplished within the time periods pre12 scribed therein, then the county committee for 

13 the applicable parish shall place the acreage 

14 base in a pool for possible assignment to other 

15 farms. After providing reasonable notice to 

16 farm owners, operators, and growers of record 

17 in the parish, the county committee shall accept 

18 requests from owners, operators, and growers of 

19 record in the parish. The county committee 

20 shall assign the base to other farms in the par21 ish that are eligible and capable of accepting 

22 such base, based on a random drawing from 

23 among the requests received from owners, oper24 ators, and growers of record with eligible farms. 
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1 ‘‘(F) STATEWIDE REALLOCATION.—Any 

2 base remaining unassigned after the processes 

3 in subparagraphs (A) through (E) shall be 

4 made available to the State committee for allo5 cation among the remaining county committees 

6 in the State representing parishes with farms 

7 eligible for assignment of the base. The remain8 ing base shall be reallocated to requesting coun9 ty committees based on a random drawing. Any 

10 county committee receiving base under this sub11 paragraph shall allocate the base to eligible 

12 farms using the process described in subpara13 graph (E). 

14 ‘‘(G) STATUS OF REASSIGNED BASE.— 

15 Once reassigned pursuant to this paragraph, 

16 the acreage base shall remain on the farm, and 

17 will be subject to the transfer provisions of 

18 paragraph (1).’’; 

19 (2) by striking subsection (d) and inserting the 

20 following new subsection: 

21 ‘‘(d) TRANSFERS OF MILL ALLOCATIONS.— 

22 ‘‘(1) TRANSFER AUTHORIZED.—A producer in a 

23 proportionate share State, upon written consent 

24 from all affected crop-share owners (or the rep25 resentative of the crop-share owners) of a farm may 
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1 deliver sugarcane to another processing company if 

2 the additional delivery, when combined with such 

3 other processing company’s existing deliveries, does 

4 not exceed the processing capacity of the company. 

5 ‘‘(2) ALLOCATION ADJUSTMENT.—Notwith6 standing section 359d, the Secretary shall adjust the 

7 allocations of each of such processing companies af8 fected by a transfer under paragraph (1) to reflect 

9 the change in deliveries, based on— 

10 ‘‘(A) the number of acres of sugarcane 

11 base being transferred; and 

12 ‘‘(B) the pro-rata amount of allocation at 

13 the processing company holding the applicable 

14 allocation that equals the grower’s contribution 

15 to the processing company’s allocation for the 

16 sugarcane base acres being transferred.’’. 

17 (h) APPEALS.—Section 359i of the Agricultural Ad18 justment Act of 1938 (7 U.S.C. 1359ii) is amended— 

19 (1) in subsection (a), by inserting ‘‘or 359g(d)’’ 

20 after ‘‘359f’’; and 

21 (2) by striking subsection (c). 

22 (i) ADMINISTRATION OF TARIFF RATE QUOTAS.— 

23 The Agricultural Adjustment Act of 1938 is amended by 

24 striking section 359k (7 U.S.C. 1359kk) and inserting the 

25 following new section: 
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1 ‘‘SEC. 359k. ADMINISTRATION OF TARIFF RATE QUOTAS. 

2 ‘‘(a) ESTABLISHMENT.—Notwithstanding any other 

3 provision of law, at the beginning of the quota year, the 

4 Secretary shall establish the tariff-rate quotas for raw 

5 cane sugar and refined sugars at the minimum necessary 

6 to comply with obligations under international trade 

7 agreements that have been approved by the Congress. This 

8 subsection shall not apply to specialty sugar. 

9 ‘‘(b) ADJUSTMENT.— 

10 ‘‘(1) BEFORE APRIL 1.— 

11 ‘‘(A) INITIAL ADJUSTMENT REQUIRED.— 

12 Before April 1 of a fiscal year, in the event that 

13 there is an emergency shortage of sugar in the 

14 United States market that is caused by war, 

15 floods, hurricanes, or other natural disaster, or 

16 other similar event, the Secretary shall take ac17 tion to increase supply as provided under sec18 tions 359c(b)(2) and 359e(b), including an in19 crease in the tariff-rate quota for raw cane 

20 sugar to accommodate the reassignment to im21 ports. 

22 ‘‘(B) ADDITIONAL ADJUSTMENT.—If, after 

23 adjustment under subparagraph (A), there is 

24 still a shortage of sugar in the United States 

25 market, and marketings of domestic sugar have 

26 been maximized, the Secretary may increase the 
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1 tariff-rate quota for refined sugars sufficient to 

2 accommodate the supply increase, if such fur3 ther increase will not threaten to result in the 

4 forfeiture of sugar pledged as collateral for a 

5 loan under section 156 of the Federal Agri6 culture Improvement and Reform Act of 1996 

7 (7 U.S.C. 7272). 

8 ‘‘(2) ON OR AFTER APRIL 1.— 

9 ‘‘(A) INITIAL ADJUSTMENT AUTHOR10 IZED.—On or after April 1 of a fiscal year, the 

11 Secretary may take action to increase supply as 

12 provided under sections 359c(b)(2) and 

13 359e(b), including an increase in the tariff-rate 

14 quota for raw cane sugar to accommodate the 

15 reassignment to imports. 

16 ‘‘(B) ADDITIONAL ADJUSTMENT.—If, after 

17 adjustment under subparagraph (A), there is 

18 still a shortage of sugar in the United States 

19 market, and marketings of domestic sugar have 

20 been maximized, the Secretary may increase the 

21 tariff-rate quota for raw cane sugar if such fur22 ther increase will not threaten to result in the 

23 forfeiture of sugar pledged as collateral for a 

24 loan under section 156 of the Federal Agri-
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1 culture Improvement and Reform Act of 1996 

2 (7 U.S.C. 7272). 

3 ‘‘(c) ORDERLY SHIPPING PATTERNS FOR MAJOR

4 SUPPLIERS.— 

5 ‘‘(1) IN GENERAL.—The Secretary of Agri6 culture shall establish orderly shipping patterns for 

7 major suppliers of sugar to the United States under 

8 the tariff rate quotas in accordance with this sub9 section. 

10 ‘‘(2) VERY LARGE MAJOR SUPPLIERS.—If a 

11 country holds quota allocations of at least 100,000 

12 metric tons of sugar, the Secretary shall allow the 

13 country to export up to 25 percent of the country’s 

14 quota allocation to the United States in each cal15 endar quarter. Sugar permitted to enter into the 

16 United States in a calendar quarter, but not actually 

17 entered in that quarter, may be entered into the 

18 United States at any time during the remainder of 

19 the fiscal year. 

20 ‘‘(3) LARGE MAJOR SUPPLIERS.—For countries 

21 holding quota allocations of more than 45,000 met22 ric tons of sugar, but less than 100,000 metric tons 

23 of sugar, the Secretary shall require that the coun24 try may ship not more than 50 percent of the coun-
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1 try’s quota sugar to the United States in the first 

2 six months of the year.’’. 

3 (j) EFFECTIVE DATE.—The Agricultural Adjustment 

4 Act of 1938 is amended by inserting after section 359k 

5 (7 U.S.C. 1359kk) the following new section: 

6 ‘‘SEC. 359l. EFFECTIVE PERIOD. 

7 ‘‘This part shall be effective only for the 2008 

8 through 2012 crop years for sugar.’’. 

9 (k) TRANSITION.—The Secretary of Agriculture shall 

10 administer flexible marketing allotments for sugar for the 

11 2007 crop year for sugar on the terms and conditions pro12 vided in part VII of title III of the Agricultural Adjust13 ment Act of 1938, as in effect on the day before the date 

14 of the enactment of this Act. 

15 Subtitle D—Dairy-Related 

16 Provisions 

17 SEC. 1401. DAIRY PRODUCT PRICE SUPPORT PROGRAM. 

18 (a) SUPPORT ACTIVITIES.—During the period begin19 ning on January 1, 2008, through December 31, 2012, 

20 the Secretary of Agriculture shall support the price of 

21 cheddar cheese, butter, and nonfat dry milk through the 

22 purchase of such products made from milk produced in 

23 the United States. 
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1 (b) PURCHASE PRICE.—To carry out subsection (a) 

2 during the period specified in such subsection, the Sec3 retary shall purchase— 

4 (1) cheddar cheese in blocks at not less than 

5 $1.13 per pound; 

6 (2) cheddar cheese in barrels at not less than 

7 $1.10 per pound; 

8 (3) butter at not less than $1.05 per pound; 

9 and 

10 (4) nonfat dry milk at not less than $0.80 per 

11 pound. 

12 (c) TEMPORARY PRICE ADJUSTMENT TO AVOID EX13 CESS INVENTORIES.— 

14 (1) ADJUSTMENTS AUTHORIZED.—The Sec15 retary may adjust the minimum purchase prices es16 tablished under subsection (b) only as permitted 

17 under this subsection. 

18 (2) CHEESE INVENTORIES IN EXCESS OF 200

19 MILLION POUNDS.—If net removals for a period of 

20 12 consecutive months exceed 200 million pounds of 

21 cheese, but do not exceed 400 million pounds, the 

22 Secretary may reduce the purchase prices under 

23 paragraphs (1) and (2) of subsection (b) during the 

24 immediately following month by not more than 10 

25 cents per pound. 
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1 (3) CHEESE INVENTORIES IN EXCESS OF 400

2 MILLION POUNDS.—If net removals for a period of 

3 12 consecutive months exceed 400 million pounds of 

4 cheese, the Secretary may reduce the purchase 

5 prices under paragraphs (1) and (2) of subsection 

6 (b) during the immediately following month by not 

7 more than 20 cents per pound. 

8 (4) BUTTER INVENTORIES IN EXCESS OF 450

9 MILLION POUNDS.—If net removals for a period of 

10 12 consecutive months exceed 450 million pounds of 

11 butter, but do not exceed 650 million pounds, the 

12 Secretary may reduce the purchase price under sub13 section (b)(3) during the immediately following 

14 month by not more than 10 cents per pound. 

15 (5) BUTTER INVENTORIES IN EXCESS OF 650

16 MILLION POUNDS.—If net removals for a period of 

17 12 consecutive months exceed 650 million pounds of 

18 butter, the Secretary may reduce the purchase price 

19 under subsection (b)(3) during the immediately fol20 lowing month by not more than 20 cents per pound. 

21 (6) NONFAT DRY MILK INVENTORIES IN EX22 CESS OF 600 MILLION POUNDS.—If net removals for 

23 a period of 12 consecutive months exceed 600 mil24 lion pounds of nonfat dry milk, but do not exceed 

25 800 million pounds, the Secretary may reduce the 
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1 purchase price under subsection (b)(4) during the 

2 immediately following month by not more than 5 

3 cents per pound. 

4 (7) NONFAT DRY MILK INVENTORIES IN EX5 CESS OF 800 MILLION POUNDS.—If net removals for 

6 a period of 12 consecutive months exceed 800 mil7 lion pounds of nonfat dry milk, the Secretary may 

8 reduce the purchase price under subsection (b)(4) 

9 during the immediately following month by not more 

10 than 10 cents per pound. 

11 (d) UNIFORM PURCHASE PRICE.—The prices that 

12 the Secretary pays for cheese, butter, or nonfat dry milk, 

13 respectively, under subsection (a) shall be uniform for all 

14 regions of the United States. 

15 (e) SALES FROM INVENTORIES.—In the case of each 

16 commodity specified in subsection (b) that is available for 

17 unrestricted use in inventories of the Commodity Credit 

18 Corporation, the Secretary may sell the commodity at the 

19 market prices prevailing for that commodity at the time 

20 of sale, except that the sale price may not be less than 

21 110 percent of the minimum purchase price specified in 

22 subsection (b) for that commodity. 

23 (f) NET REMOVALS DEFINED.—In this section, the 

24 term ‘‘net removals’’ means— 
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1 (1) the sum of the quantity of a product de2 scribed in subsection (a) purchased by the Com3 modity Credit Corporation under this section and 

4 the quantity of such product exported under section 

5 153 of the Food Security Act of 1985 (15 U.S.C. 

6 713a–14); less 

7 (2) the amount of such product sold for unre8 stricted use by the Commodity Credit Corporation. 

9 (g) COMMODITY CREDIT CORPORATION.—The Sec10 retary shall use the funds of the Commodity Credit Cor11 poration to carry out this section. 

12 SEC. 1402. DAIRY FORWARD PRICING PROGRAM. 

13 (a) PROGRAM REQUIRED.—The Secretary of Agri14 culture shall establish a program under which milk pro15 ducers and cooperative associations of producers are au16 thorized to voluntarily enter into forward price contracts 

17 with milk handlers. 

18 (b) MINIMUM MILK PRICE REQUIREMENTS.—Pay19 ments made by milk handlers to milk producers and coop20 erative associations of producers, and prices received by 

21 milk producers and cooperative associations, in accordance 

22 with the terms of a forward price contract authorized by 

23 subsection (a), shall be deemed to satisfy— 

24 (1) all uniform and minimum milk price re25 quirements of paragraphs (B) and (F) of subsection 
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1 (5) of section 8c of the Agricultural Adjustment Act 

2 (7 U.S.C. 627), reenacted with amendments by the 

3 Agricultural Marketing Agreement Act of 1937; and 

4 (2) the total payment requirement of paragraph 

5 (C) of such subsection. 

6 (c) MILK COVERED BY PROGRAM.— 

7 (1) COVERED MILK.—The program shall apply 

8 only with respect to the marketing of federally regu9 lated milk that— 

10 (A) is not classified as Class I milk or oth11 erwise intended for fluid use; and 

12 (B) is in the current of interstate or for13 eign commerce or directly burdens, obstructs, or 

14 affects interstate or foreign commerce in feder15 ally regulated milk. 

16 (2) RELATION TO CLASS I MILK.—To assist 

17 milk handlers in complying with the limitation in 

18 paragraph (1)(A) without having to segregate or 

19 otherwise individually track the source and disposi20 tion of milk, a milk handler may allocate milk re21 ceipts from producers, cooperatives, and other 

22 sources that are not subject to a forward contract to 

23 satisfy the handler’s obligations with regard to Class 

24 I milk usage. 
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1 (d) VOLUNTARY PROGRAM.—A milk handler may not 

2 require participation in a forward pricing contract as a 

3 condition of the handler receiving milk from a producer 

4 or cooperative association of producers, and such producer 

5 or cooperative association may continue to have their milk 

6 priced under the order’s minimum payment provisions. 

7 The Secretary shall investigate complaints made by pro8 ducers or cooperative associations of coercion by handlers 

9 to enter into forward contracts, and if the Secretary finds 

10 evidence of such coercion, the Secretary shall take appro11 priate action. 

12 (e) DURATION.—No forward price contract may be 

13 entered into under this program after September 30, 

14 2012, and no forward contract entered into under the pro15 gram may extend beyond September 30, 2015. 

16 SEC. 1403. DAIRY EXPORT INCENTIVE PROGRAM. 

17 (a) EXTENSION.—Subsection (a) of section 153 of 

18 the Food Security Act of 1985 (15 U.S.C. 713a–14) is 

19 amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

20 (b) COMPLIANCE WITH TRADE AGREEMENTS.—Sec21 tion 153 of the Food Security Act of 1985 (15 U.S.C. 

22 713a–14) is amended— 

23 (1) in subsection (c), by striking paragraph (3) 

24 and inserting the following new paragraph: 
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1 ‘‘(3) the maximum volume of dairy product ex2 ports allowable consistent with the obligations of the 

3 United States under the Uruguay Round Agree4 ments approved under section 101 of the Uruguay 

5 Round Agreements Act (19 U.S.C. 3511) is exported 

6 under the program each year (minus the volume sold 

7 under section 1163 of this Act (Public Law 99–198; 

8 7 U.S.C. 1731 note) during that year), except to the 

9 extent that the export of such a volume under the 

10 program would, in the judgment of the Secretary, 

11 exceed the limitations on the value set forth in sub12 section (f); and’’; and. 

13 (2) in subsection (f), by striking paragraph (1) 

14 and inserting the following new paragraph: 

15 ‘‘(1) FUNDS AND COMMODITIES.—Except as 

16 provided in paragraph (2), the Commodity Credit 

17 Corporation shall in each year use money and com18 modities for the program under this section in the 

19 maximum amount consistent with the obligations of 

20 the United States under the Uruguay Round Agree21 ments approved under section 101 of the Uruguay 

22 Round Agreements Act (19 U.S.C. 3511), minus the 

23 amount expended under section 1163 of this Act 

24 (Public Law 99–198; 7 U.S.C. 1731 note) during 

25 that year.’’. 
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1 SEC. 1404. REVISION OF FEDERAL MARKETING ORDER 

2 AMENDMENT PROCEDURES. 

3 Subsection (17) of section 8c of the Agricultural Ad4 justment Act (7 U.S.C. 608c), reenacted with amendments 

5 by the Agricultural Marketing Agreement Act of 1937, is 

6 amended to read as follows: 

7 ‘‘(17) PROVISIONS APPLICABLE TO AMENDMENTS.— 

8 ‘‘(A) APPLICABILITY TO AMENDMENTS.—The 

9 provisions of this section and section 8d, applicable 

10 to orders shall be applicable to amendments to or11 ders. 

12 ‘‘(B) ADVANCE NOTICE OF HEARING.—Notice 

13 of a hearing upon a proposed amendment to any 

14 order issued pursuant to this section shall be given 

15 not less than 3 days before the date fixed for the 

16 hearing, and such notice shall be deemed to be due 

17 notice of the hearing. 

18 ‘‘(C) PROMPT RESPONSE TO REQUESTS FOR

19 AMENDMENT HEARINGS.—Not more than 30 days 

20 after receipt of a written request for an amendment 

21 hearing regarding a milk marketing order, the Sec22 retary shall— 

23 ‘‘(i) issue a denial of the request; or 

24 ‘‘(ii) issue notice of the hearing, which 

25 shall begin no more than 60 days, and conclude 
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1 no more than 90 days, after receipt of the re2 quest. 

3 ‘‘(D) SUBMISSION AND USE OF EVIDENCE.— 

4 The proponents of any amendment proposed to be 

5 made to a milk marketing order shall file with the 

6 Secretary all testimony and other evidence in sup7 port of the amendment, in written form, at least 7 

8 business days before the date fixed for the hearing. 

9 The Secretary shall make such written testimony 

10 and other evidence available to interested members 

11 of the public. Subject to any evidentiary objections 

12 and cross examination of submitting witness, the 

13 written testimony and evidence shall be entered into 

14 evidence without being read at the hearing. 

15 ‘‘(E) ISSUANCE OF DECISION.—The Secretary 

16 shall issue a recommended decision on a proposed 

17 amendment to a milk marketing order not later than 

18 90 days after the date set by the Administrative 

19 Law Judge for the submission of post-hearing pro20 posed findings and conclusions and written argu21 ments or briefs. The final decision shall be issued 

22 not later than 60 days after the date on which the 

23 recommended decision was issued. 

24 ‘‘(F) AVOIDING DUPLICATION.—The Secretary 

25 shall not be required to call a hearing on any 
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1 amendment proposed to be made to a milk mar2 keting order in response to an application for a 

3 hearing on such proposed amendment if the applica4 tion requesting the hearing is received by the Sec5 retary within 90 days after the date on which the 

6 Secretary has announced the decision on a pre7 viously proposed amendment to that order and the 

8 two proposed amendments are essentially the 

9 same.’’. 

10 SEC. 1405. DAIRY INDEMNITY PROGRAM. 

11 Section 3 of Public Law 90–484 (7 U.S.C. 450l) is 

12 amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

13 SEC. 1406. EXTENSION OF MILK INCOME LOSS CONTRACT 

14 PROGRAM. 

15 Section 1502(c)(3)(B) of the Farm Security and 

16 Rural Investment Act of 2002 (7 U.S.C. 7982(c)(3)(B)), 

17 as amended by section 9006(a) of the U.S. Troop Readi18 ness, Veterans’ Care, Katrina Recovery, and Iraq Ac19 countability Appropriations Act, 2007 (Public Law 110– 

20 28, 121 Stat. 217), is amended by striking ‘‘2007’’ and 

21 inserting ‘‘2012’’. 

22 SEC. 1407. DAIRY PROMOTION AND RESEARCH PROGRAM. 

23 (a) EXTENSION OF PROMOTION AUTHORITY.—Sec24 tion 113(e)(2) of the Dairy Production Stabilization Act 
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1 of 1983 (7 U.S.C. 4504(e)(2)) is amended by striking 

2 ‘‘2007’’ and inserting ‘‘2012’’. 

3 (b) DEFINITION OF UNITED STATES FOR PRO4 MOTION PROGRAM.—Section 111 of the Dairy Production 

5 Stabilization Act of 1983 (7 U.S.C. 4502) is amended— 

6 (1) by striking subsection (l) and inserting the 

7 following new subsection: 

8 ‘‘(l) the term ‘United States’, when used in a geo9 graphical sense, means all of the States, the District of 

10 Columbia, and the Commonwealth of Puerto Rico;’’; and 

11 (2) in subsection (m), by striking ‘‘(as defined 

12 in subsection (l))’’. 

13 (c) DEFINITION OF UNITED STATES FOR RESEARCH

14 PROGRAM.—Section 130 of the Dairy Production Sta15 bilization Act of 1983 (7 U.S.C. 4531)) is amended by 

16 striking paragraph (12) and inserting the following new 

17 paragraph: 

18 ‘‘(12) the term ‘United States’, when used in a 

19 geographical sense, means all of the States, the Dis20 trict of Columbia, and the Commonwealth of Puerto 

21 Rico.’’. 

22 (d) REFUND OF ASSESSMENTS ON IMPORTED DAIRY

23 PRODUCTS.—Section 113(g) of the Dairy Production Sta24 bilization Act of 1983 (7 U.S.C. 4504(g)) is amended by 

25 adding at the end the following: 
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1 ‘‘(7) REFUND OF ASSESSMENTS ON CERTAIN

2 IMPORTED PRODUCTS.— 

3 ‘‘(A) IN GENERAL.—An importer is enti4 tled to a refund of any assessment paid under 

5 this subsection on imported dairy products im6 ported under a contract entered into prior to 

7 July 26, 2007. 

8 ‘‘(B) EXPIRATION.—Refunds under para9 graph (A) shall expire one year after the date 

10 of the enactment of the Farm, Nutrition, and 

11 Bioenergy Act of 2007.’’. 

12 SEC. 1408. REPORT ON DEPARTMENT OF AGRICULTURE RE13 PORTING PROCEDURES FOR NONFAT DRY 

14 MILK. 

15 Not later than 90 days after the date of the enact16 ment of this Act, the Secretary of Agriculture shall submit 

17 to Congress a report regarding Department of Agriculture 

18 reporting procedures for nonfat dry milk and the impact 

19 of these procedures on Federal milk marketing order min20 imum prices during the period beginning on July 1, 2006, 

21 and ending on the date of the enactment of this Act. 

22 SEC. 1409. FEDERAL MILK MARKETING ORDER REVIEW 

23 COMMISSION. 

24 (a) ESTABLISHMENT.—Subject to the availability of 

25 appropriations to carry out this section, the Secretary of 
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1 Agriculture shall establish a commission to be known as 

2 the ‘‘Federal Milk Marketing Order Review Commission’’, 

3 in this section referred to as the ‘‘commission’’, which 

4 shall conduct a comprehensive review and evaluation of— 

5 (1) the current Federal milk marketing order 

6 system; and 

7 (2) non-Federal milk marketing order systems. 

8 (b) ELEMENTS OF REVIEW AND EVALUATION.—As 

9 part of the review and evaluation under subsection (a), 

10 the commission shall consider legislative and regulatory 

11 options for— 

12 (1) ensuring that the competitiveness of dairy 

13 products with other competing products in the mar14 ketplace is preserved and enhanced; 

15 (2) enhancing the competitiveness of American 

16 dairy producers in world markets; 

17 (3) increasing the responsiveness of the Federal 

18 milk marketing order system to market forces; 

19 (4) streamlining and expediting the process by 

20 which amendments to Federal milk market orders 

21 are adopted; 

22 (5) simplifying the Federal milk marketing 

23 order system; 

24 (6) evaluating whether the Federal milk mar25 keting order system, established during the Great 
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1 Depression, continues to serve the interests of the 

2 public, dairy processors, and dairy farmers; 

3 (7) evaluating whether Federal milk marketing 

4 orders are operating in a manner to minimize costs 

5 to taxpayers and consumers; and 

6 (8) evaluating the nutritional composition of 

7 milk, including the potential benefits and costs of 

8 adjusting the milk content standards. 

9 (c) MEMBERSHIP.— 

10 (1) COMPOSITION.—The commission shall con11 sist of 18 members. 

12 (2) MEMBERS.—As soon as practicable after 

13 the date on which funds are first made available to 

14 carry out this section, commission members shall be 

15 appointed as follows: 

16 (A) Two members appointed by the Chair17 man of the Committee on Agriculture of the 

18 House of Representatives, in consultation with 

19 the ranking member of the Committee on Agri20 culture of the House of Representatives. 

21 (B) Two members appointed by the Chair22 man of the Committee on Agriculture, Nutri23 tion, and Forestry of the Senate, in consulta24 tion with the ranking member of the Committee 
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1 on Agriculture, Nutrition and Forestry of the 

2 Senate. 

3 (C) Fourteen members appointed by the 

4 Secretary of Agriculture. 

5 (3) SPECIAL APPOINTMENT REQUIREMENTS.— 

6 In the case of the members to be appointed under 

7 paragraph (2)(C), the Secretary shall comply with 

8 the following requirements: 

9 (A) At least one member shall represent a 

10 national consumer organization. 

11 (B) At least four members shall represent 

12 land-grant universities or ASCARR institutions 

13 with accredited dairy economic programs, with 

14 two of these members being experts in the field 

15 of economics. 

16 (C) At least one member shall represent 

17 the food and beverage retail sector. 

18 (D) Four dairy producer and four dairy 

19 processors, appointed so as to balance geo20 graphical distribution of milk production and 

21 dairy processing, reflect all segments of dairy 

22 processing, and represent all regions of the 

23 United States equitably, including States that 

24 operate outside of a Federal milk marketing 

25 order. 
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1 (4) CHAIR.—The commission shall elect one of 

2 its appointed members to serve as chairperson for 

3 the duration of the commission’s proceedings. 

4 (5) VACANCY.—Any vacancy occurring before 

5 the termination of the commission shall be filled in 

6 the same manner as the original appointment. 

7 (6) COMPENSATION.—Members of the commis8 sion shall serve without compensation, but shall be 

9 reimbursed by the Secretary of Agriculture from ex10 isting budget authority for necessary and reasonable 

11 expenses incurred in the performance of the duties 

12 of the commission. 

13 (d) REPORT.—Not later than two years after the date 

14 of the first meeting of the commission, the commission 

15 shall submit to the Secretary of Agriculture and Congress 

16 a report setting forth the results of the review and evalua17 tion conducted under this section, including such rec18 ommendations regarding the legislative and regulatory op19 tions considered under subsection (b) as the commission 

20 considers to be appropriate. The report findings shall re21 flect, to the extent practicable, a consensus opinion of the 

22 commission members, but the report may include majority 

23 and minority findings regarding those matters for which 

24 consensus was not reached. 
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1 (e) ADVISORY NATURE.—The commission is wholly 

2 advisory in nature, and the recommendations of the com3 mission are non-binding. 

4 (f) NO EFFECT ON EXISTING PROGRAMS.—The Sec5 retary shall not allow the existence of the commission to 

6 impede, delay, or otherwise affect any decision making 

7 process of the Department of Agriculture, including any 

8 rulemaking procedures planned, proposed, or near comple9 tion. 

10 (g) ADMINISTRATIVE ASSISTANCE.—The Secretary 

11 shall provide administrative support to the commission, 

12 and expend such funds as necessary from existing budget 

13 authority to carry out this responsibility. 

14 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated such sums as are nec16 essary to carry out this section. 

17 (i) TERMINATION.—The commission shall terminate 

18 immediately after submission of the report under sub19 section (d). 

20 Subtitle E—Administration 

21 SEC. 1501. ADMINISTRATION GENERALLY. 

22 (a) USE OF COMMODITY CREDIT CORPORATION.— 

23 The Secretary shall use the funds, facilities, and authori24 ties of the Commodity Credit Corporation to carry out this 

25 title. 
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1 (b) DETERMINATIONS BY SECRETARY.—A deter2 mination made by the Secretary under this title shall be 

3 final and conclusive. 

4 (c) REGULATIONS.— 

5 (1) IN GENERAL.—Not later than 90 days after 

6 the date of the enactment of this Act, the Secretary 

7 and the Commodity Credit Corporation, as appro8 priate, shall promulgate such regulations as are nec9 essary to implement this title. 

10 (2) PROCEDURE.—The promulgation of the reg11 ulations and administration of this title shall be 

12 made without regard to— 

13 (A) chapter 35 of title 44, United States 

14 Code (commonly known as the ‘‘Paperwork Re15 duction Act’’); 

16 (B) the Statement of Policy of the Sec17 retary of Agriculture effective July 24, 1971 

18 (36 Fed. Reg. 13804), relating to notices of 

19 proposed rulemaking and public participation in 

20 rulemaking; and 

21 (C) the notice and comment provisions of 

22 section 553 of title 5, United States Code. 

23 (3) CONGRESSIONAL REVIEW OF AGENCY RULE24 MAKING.—In carrying out this subsection, the Sec-
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1 retary shall use the authority provided under section 

2 808 of title 5, United States Code. 

3 (d) ADJUSTMENT AUTHORITY RELATED TO TRADE

4 AGREEMENTS COMPLIANCE.— 

5 (1) REQUIRED DETERMINATION; ADJUST6 MENT.—If the Secretary determines that expendi7 tures under subtitles A through E that are subject 

8 to the total allowable domestic support levels under 

9 the Uruguay Round Agreements (as defined in sec10 tion 2 of the Uruguay Round Agreements Act (19 

11 U.S.C. 3501)), as in effect on the date of enactment 

12 of this Act, will exceed such allowable levels for any 

13 applicable reporting period, the Secretary shall, to 

14 the maximum extent practicable, make adjustments 

15 in the amount of such expenditures during that pe16 riod to ensure that such expenditures do not exceed 

17 such allowable levels. 

18 (2) CONGRESSIONAL NOTIFICATION.—Before 

19 making any adjustment under paragraph (1), the 

20 Secretary shall submit to the Committee on Agri21 culture of the House of Representatives or the Com22 mittee on Agriculture, Nutrition, and Forestry of 

23 the Senate a report describing the determination 

24 made under that paragraph and the extent of the 

25 adjustment to be made. 
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1 SEC. 1502. SUSPENSION OF PERMANENT PRICE SUPPORT 

2 AUTHORITY. 

3 (a) AGRICULTURAL ADJUSTMENT ACT OF 1938.— 

4 The following provisions of the Agricultural Adjustment 

5 Act of 1938 shall not be applicable to the 2008 through 

6 2012 crops of covered commodities, peanuts, and sugar 

7 and shall not be applicable to milk during the period be8 ginning on the date of enactment of this Act through De9 cember 31, 2012: 

10 (1) Parts II through V of subtitle B of title III 

11 (7 U.S.C. 1326 et seq.). 

12 (2) In the case of upland cotton, section 377 (7 

13 U.S.C. 1377). 

14 (3) Subtitle D of title III (7 U.S.C. 1379a et 

15 seq.). 

16 (4) Title IV (7 U.S.C. 1401 et seq.). 

17 (b) AGRICULTURAL ACT OF 1949.—The following 

18 provisions of the Agricultural Act of 1949 shall not be ap19 plicable to the 2008 through 2012 crops of covered com20 modities, peanuts, and sugar and shall not be applicable 

21 to milk during the period beginning on the date of enact22 ment of this Act and through December 31, 2012: 

23 (1) Section 101 (7 U.S.C. 1441). 

24 (2) Section 103(a) (7 U.S.C. 1444(a)). 

25 (3) Section 105 (7 U.S.C. 1444b). 

26 (4) Section 107 (7 U.S.C. 1445a). 
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1 (5) Section 110 (7 U.S.C. 1445e). 

2 (6) Section 112 (7 U.S.C. 1445g). 

3 (7) Section 115 (7 U.S.C. 1445k). 

4 (8) Section 201 (7 U.S.C. 1446). 

5 (9) Title III (7 U.S.C. 1447 et seq.). 

6 (10) Title IV (7 U.S.C. 1421 et seq.), other 

7 than sections 404, 412, and 416 (7 U.S.C. 1424, 

8 1429, and 1431). 

9 (11) Title V (7 U.S.C. 1461 et seq.). 

10 (12) Title VI (7 U.S.C. 1471 et seq.). 

11 (c) SUSPENSION OF CERTAIN QUOTA PROVISIONS.— 

12 The joint resolution entitled ‘‘A joint resolution relating 

13 to corn and wheat marketing quotas under the Agricul14 tural Adjustment Act of 1938, as amended’’, approved 

15 May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be 

16 applicable to the crops of wheat planted for harvest in the 

17 calendar years 2008 through 2012. 

18 SEC. 1503. PAYMENT LIMITATIONS. 

19 (a) EXTENSION AND REVISION OF LIMITATIONS.— 

20 (1) EXTENSION.—Sections 1001 and 1001C(a) 

21 of the Food Security Act of 1985 (7 U.S.C. 1308, 

22 1308–3(a)) are amended by striking ‘‘Farm Security 

23 and Rural Investment Act of 2002’’ each place it ap24 pears (other than in subsection (d)(1) of section 
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1 1001 of such Act) and inserting ‘‘Farm, Nutrition, 

2 and Bioenergy Act of 2007’’. 

3 (2) COMBINATION OF LIMITS.—Section 1001 of 

4 the Food Security Act of 1985 (7 U.S.C. 1308) is 

5 amended by striking subsections (b) and (c) and in6 serting the following new subsections: 

7 ‘‘(b) LIMITATION ON DIRECT AND COUNTER-CYCLI8 CAL PAYMENTS FOR COVERED COMMODITIES (OTHER

9 THAN PEANUTS).— 

10 ‘‘(1) DIRECT PAYMENTS.—The total amount of 

11 direct payments received, directly or indirectly, by a 

12 person or any legal entity (except a joint venture or 

13 a general partnership) in any crop year under sub14 title A of title I of the Farm, Nutrition, and Bio15 energy Act of 2007 for 1 or more covered commod16 ities (except for peanuts) may not exceed $60,000. 

17 ‘‘(2) COUNTER-CYCLICAL PAYMENTS.—The 

18 total amount of counter-cyclical payments received, 

19 directly or indirectly, by a person or any legal entity 

20 (except a joint venture or a general partnership in 

21 any crop year under subtitle A of title I of the 

22 Farm, Nutrition, and Bioenergy Act of 2007 for one 

23 or more covered commodities (except for peanuts) 

24 may not exceed $65,000. 
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1 ‘‘(c) LIMITATION ON DIRECT AND COUNTER-CYCLI2 CAL PAYMENTS FOR PEANUTS.— 

3 ‘‘(1) DIRECT PAYMENTS.—The total amount of 

4 direct payments received, directly or indirectly, by a 

5 person or any legal entity (except a joint venture or 

6 a general partnership) in any crop year under sub7 title A of title I of the Farm, Nutrition, and Bio8 energy Act of 2007 for peanuts may not exceed 

9 $60,000. 

10 ‘‘(2) COUNTER-CYCLICAL PAYMENTS.—The 

11 total amount of counter-cyclical payments received, 

12 directly or indirectly, by a person or any legal entity 

13 (except a joint venture or a general partnership in 

14 any crop year under subtitle A of title I of the 

15 Farm, Nutrition, and Bioenergy Act of 2007 for 

16 peanuts may not exceed $65,000.’’. 

17 (b) DIRECT ATTRIBUTION.—Section 1001 of the 

18 Food Security Act of 1985 (7 U.S.C. 1308) is amended— 

19 (1) in subsection (a)— 

20 (A) by redesignating paragraphs (2) and 

21 (3) as paragraphs (4) and (5), respectively; and 

22 (B) by inserting after paragraph (1) the 

23 following new paragraphs: 
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1 ‘‘(2) LEGAL ENTITY.—The term ‘legal entity’ 

2 means an entity that is created under Federal or 

3 State law and that— 

4 ‘‘(A) owns land or an agricultural com5 modity; or 

6 ‘‘(B) produces an agricultural commodity. 

7 ‘‘(3) PERSON.—The term ‘person’ means a nat8 ural person, and does not include a legal entity.’’; 

9 (2) by striking subsections (d) through (e) and 

10 inserting the following new subsections: 

11 ‘‘(d) ATTRIBUTION OF PAYMENTS.— 

12 ‘‘(1) IN GENERAL.—In implementing sub13 sections (b) and (c), the Secretary shall issue such 

14 regulations as are necessary to ensure that the total 

15 amount of payments are attributed to a person by 

16 taking into account the direct and indirect owner17 ship interests of the person in a legal entity that is 

18 eligible to receive such payments. 

19 ‘‘(2) PAYMENTS TO A PERSON.—Every payment 

20 made directly to a person shall be combined with the 

21 person’s pro rata interest in payments received by a 

22 legal entity in which the person has a direct or indi23 rect ownership interest. 

24 ‘‘(3) PAYMENTS TO A LEGAL ENTITY.— 
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1 ‘‘(A) IN GENERAL.—Every payment made 

2 to a legal entity shall be attributed to those per3 sons who have a direct or indirect ownership in4 terest in the legal entity. 

5 ‘‘(B) ATTRIBUTION OF PAYMENTS.— 

6 ‘‘(i) PAYMENT LIMITS.—Except as 

7 provided in clause (ii), payments made to 

8 a legal entity shall not exceed the amounts 

9 specified in subsections (b) and (c). 

10 ‘‘(ii) EXCEPTION.—Payments made to 

11 a joint venture or a general partnership 

12 shall not exceed, for each payment speci13 fied in subsections (b) and (c), the amount 

14 determined by multiplying the maximum 

15 payment amount specified in subsections 

16 (b) and (c) by the number of persons and 

17 legal entities (other than joint ventures 

18 and general partnerships) that comprise 

19 the ownership of the joint venture or gen20 eral partnership. 

21 ‘‘(4) FOUR LEVELS OF ATTRIBUTION FOR EM22 BEDDED ENTITIES.— 

23 ‘‘(A) IN GENERAL.—Attribution of pay24 ments made to legal entities shall be traced 

25 through four levels of ownership in entities. 
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1 ‘‘(B) FIRST LEVEL.—Any payments made 

2 to a legal entity (a first-tier entity) that is 

3 owned in whole or in part by a person shall be 

4 attributed to the person in an amount that rep5 resents the direct ownership in the first-tier en6 tity by the person. 

7 ‘‘(C) SECOND LEVEL.—Any payments 

8 made to a first-tier entity that is owned in 

9 whole or in part by another legal entity (a sec10 ond-tier entity) shall be attributed to the sec11 ond-tier entity in proportion to the second-tier 

12 entity’s ownership in the first-tier entity. If the 

13 second-tier entity is owned in whole or in part 

14 by a person, the amount of the payment made 

15 to the first-tier entity shall be attributed to the 

16 person in the amount that represents the indi17 rect ownership in the first-tier entity by the 

18 person. 

19 ‘‘(D) THIRD AND FOURTH LEVELS.—The 

20 Secretary shall attribute payments at the third 

21 and fourth tiers of ownership in the same man22 ner as specified in subparagraph (C) unless the 

23 fourth-tier of ownership is that of a fourth-tier 

24 entity and not that of a person, in which case 

25 the Secretary shall reduce the amount of the 
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1 payment to be made to the first-tier entity in 

2 the amount that represents the indirect owner3 ship in the first-tier entity by the fourth-tier en4 tity. 

5 ‘‘(e) SPECIAL RULES.— 

6 ‘‘(1) MINOR CHILDREN.—Payments received by 

7 a child under the age of 18 shall be attributed to the 

8 child’s parents, except that the Secretary shall issue 

9 regulations which provide the conditions under which 

10 payments received by a child under the age of 18 

11 will not be attributed to the child’s parents. 

12 ‘‘(2) MARKETING COOPERATIVES.—Subsections 

13 (b) and (c) shall not apply to a cooperative associa14 tion of producers with respect to commodities pro15 duced by its members which are marketed by such 

16 association on behalf of its members but shall apply 

17 to such producers as persons. 

18 ‘‘(3) TRUSTS AND ESTATES.— 

19 ‘‘(A) IN GENERAL.—With respect to irrev20 ocable trusts and estates, the Secretary shall 

21 administer the provisions of this subtitle in 

22 such manner as the Secretary determines will 

23 ensure that fair and equitable treatment of the 

24 beneficiaries of such trusts and estates. 
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1 ‘‘(B) IRREVOCABLE TRUST.—In order for 

2 a trust to be considered an irrevocable trust, 

3 the terms of the trust agreement must not 

4 allow for modification or termination of the 

5 trust by the grantor, allow for the grantor to 

6 have any future, contingent, or remainder inter7 est in the corpus of the trust, or provide for the 

8 transfer of the corpus of the trust to the re9 mainder beneficiary in less than 20 years from 

10 the date the trust is established except in cases 

11 where the transfer is contingent on the remain12 der beneficiary achieving at least the age of ma13 jority or is contingent on the death of the 

14 grantor or income beneficiary. 

15 ‘‘(C) REVOCABLE TRUST.—A revocable 

16 trust shall be considered to be the same person 

17 as the grantor of the trust. 

18 ‘‘(4) CASH RENT TENANTS.— 

19 ‘‘(A) DEFINITION.—In this paragraph, the 

20 term ‘cash rent tenant’ means a person or legal 

21 entity that rents land— 

22 ‘‘(i) for cash; or 

23 ‘‘(ii) for a crop share guaranteed as to 

24 the amount of the commodity to be paid in 

25 rent. 
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1 ‘‘(B) RESTRICTION.—A cash rent tenant 

2 who makes a significant contribution of active 

3 personal management, but not of personal 

4 labor, with respect to a farming operation is eli5 gible to receive a payment described in sub6 section (b) only if the tenant makes a signifi7 cant contribution of equipment used in the 

8 farming operation. 

9 ‘‘(5) FEDERAL AGENCIES.— 

10 ‘‘(A) IN GENERAL.—Federal agencies shall 

11 not be eligible to receive any payment described 

12 in subsection (b) or (c). 

13 ‘‘(B) RENTS LAND.—A person or legal en14 tity that rents land owned by a Federal agency 

15 may receive such payments. 

16 ‘‘(6) STATE AND LOCAL GOVERNMENTS.— 

17 ‘‘(A) GOVERNMENTS INELIGIBLE.— 

18 ‘‘(i) IN GENERAL.—Except as pro19 vided in subparagraphs (B) and (C), State 

20 and local governments and political sub21 divisions and agencies of such govern22 ments, shall not be eligible to receive pay23 ments described in subsections (b) and (c). 

24 ‘‘(ii) TENANTS.—A person or legal en25 tity that rents land owned by a State or 
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1 local government or a political subdivision 

2 or agency of such government, may receive 

3 payments described in subsections (b) and 

4 (c) if they otherwise meet all applicable cri5 teria. 

6 ‘‘(B) EXCEPTION.— 

7 ‘‘(i) IN GENERAL.—Within the limita8 tion described in clause (ii), a State and 

9 the political subdivisions and agencies of 

10 such governments, may receive payments 

11 described in subsections (b) and (c), if the 

12 State or a political subdivision or agency of 

13 such government— 

14 ‘‘(I) is the producer of all crops 

15 produced on a farm; and 

16 ‘‘(II) the proceeds from the crop 

17 production are used to maintain a 

18 public school. 

19 ‘‘(ii) LIMITATION.—For each State, 

20 the total amount of payments described in 

21 subsections (b) and (c) that are received 

22 collectively by the State and all political 

23 subdivisions or agencies of such govern24 ments shall not exceed the amounts that 
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1 one legal entity may receive in one year as 

2 specified in subsections (b) and (c). 

3 ‘‘(C) SHARE LEASES.—A State and the po4 litical subdivisions and agencies of such govern5 ments may, without regard to the provisions of 

6 subparagraph (B), receive payments described 

7 in subsections (b) and (c) if— 

8 ‘‘(i) the payments are received with 

9 respect to land that is share leased to a 

10 private party; 

11 ‘‘(ii) the lease was in effect on the 

12 date of enactment of the Farm, Nutrition, 

13 and Bioenergy Act of 2007; and 

14 ‘‘(iii) the land is used to maintain a 

15 public school. 

16 ‘‘(7) CHANGES IN FARMING OPERATIONS.—In 

17 the administration of this subtitle, the Secretary 

18 may not approve any change in a farming operation 

19 that otherwise will increase the number of persons to 

20 which the limitations under this section are applied 

21 unless the Secretary determines that the change is 

22 bona fide and substantive. The addition of a family 

23 member to a farming operation under the criteria 

24 set out in section 1001A shall be considered a bona 
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1 fide and substantive change in the farming oper2 ation. 

3 ‘‘(8) DENIAL OF PROGRAM BENEFITS.— 

4 ‘‘(A) TWO YEAR DENIAL OF PAYMENT.—A 

5 person or legal entity shall be ineligible to re6 ceive payments specified in subsections (b) and 

7 (c) for that year, and the succeeding crop year, 

8 in which the Secretary determines that the per9 son or entity engaged in an activity in which 

10 the primary purpose of the activity was to avoid 

11 the application of the provisions of this subtitle 

12 to the person, legal entity or any other person 

13 or legal entity. 

14 ‘‘(B) EXTENDED INELIGIBILITY.—If the 

15 Secretary determines that a person or legal en16 tity, for their benefit or the benefit of any other 

17 person or legal entity, has knowingly engaged 

18 in, or aided in the creation of fraudulent docu19 ments, failed to disclose material information 

20 relevant to the administration of this subtitle 

21 requested by the Secretary, or committed other 

22 equally serious actions as identified in regula23 tions issued by the Secretary, the Secretary 

24 may for a period not to exceed five crop years 
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1 deny the issuance of payments to the person or 

2 legal entity. 

3 ‘‘(C) PRO RATA DENIAL.—Payments other4 wise owed to a person or legal entity covered by 

5 subparagraphs (A) or (B) shall be denied in a 

6 pro rata manner based upon the ownership in7 terest of the person or legal entity in a farm, 

8 and payments otherwise payable to the person 

9 or legal entity who is a cash rent tenant on a 

10 farm owned or under the control of such person 

11 or legal entity shall be denied. 

12 ‘‘(9) DEATH OF OWNER.—In the event of a 

13 transfer of any ownership interest in land or a com14 modity as the result of the death of a program par15 ticipant, the new owner of such land or commodity 

16 may, if such person is otherwise eligible to partici17 pate in the applicable program, succeed to the prior 

18 owner’s contract and receive payments subject to 

19 this section without regard to the amount of pay20 ments received by the new owner. Payments made 

21 pursuant to this subsection shall not exceed the 

22 amount to which the previous owner was entitled to 

23 receive under the terms of the contract at the time 

24 of the death of the prior owner.’’. 
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1 (c) REPEAL OF THREE-ENTITY RULE.—Section 

2 1001A of the Food Security Act of 1985 (7 U.S.C. 1308– 

3 1) is amended— 

4 (1) in the section heading, by striking ‘‘PRE5 VENTION OF CREATION OF ENTITIES TO QUAL6 IFY AS SEPARATE PERSONS’’and inserting ‘‘NO7 TIFICATION OF INTERESTS’’; and 

8 (2) by striking subsection (a) and inserting the 

9 following new subsection: 

10 ‘‘(a) NOTIFICATION OF INTERESTS.—To facilitate 

11 administration of sections 1001 and this section, each en12 tity or person receiving payments described in subsections 

13 (b) and (c) of section 1001 as a separate person shall pro14 vide to the Secretary of Agriculture, at such times and 

15 in such manner as prescribed by the Secretary, the name 

16 and social security number of each individual, or the name 

17 and taxpayer identification number of each entity, that 

18 holds or acquires an ownership interest in such separate 

19 person and shall provide such information regarding each 

20 entity in which such separate person holds an ownership 

21 interest.’’. 

22 (d) AMENDMENT FOR CONSISTENCY.—Section 

23 1001A of the Food Security Act of 1985 (7 U.S.C. 1308– 

24 1) is amended by striking subsection (b) and inserting the 

25 following new subsections: 
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1 ‘‘(b) ACTIVELY ENGAGED.— 

2 ‘‘(1) IN GENERAL.—To be eligible to receive a 

3 payment described in subsections (b) and (c) of sec4 tion 1001, a person or legal entity must be actively 

5 engaged in farming as provided in this subsection or 

6 subsection (c). 

7 ‘‘(2) CLASSES ACTIVELY ENGAGED.—Except as 

8 provided in subsections (c) and (d)— 

9 ‘‘(A) a person, including a person partici10 pating in a farming operation as a partner in 

11 a general partnership, a participant in a joint 

12 venture, a grantor of a revocable trust, or a 

13 participant in a similar entity as determined by 

14 the secretary, shall be considered to be actively 

15 engaged in farming with respect to a farm oper16 ation if— 

17 ‘‘(i) the person makes a significant 

18 contribution (based on the total value of 

19 the farming operation) to the farming op20 eration of— 

21 ‘‘(I) capital, equipment, or land; 

22 and 

23 ‘‘(II) personal labor or active per24 sonal management; 
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1 ‘‘(ii) the person’s share of the profits 

2 or losses from the farming operation is 

3 commensurate with the contributions of 

4 the person to the farming operation; and 

5 ‘‘(iii) the contributions of the person 

6 are at risk; 

7 ‘‘(B) a legal entity that is a corporation, 

8 joint stock company, association, limited part9 nership, charitable organization, or other simi10 lar entity determined by the Secretary, includ11 ing any such entity participating in the farming 

12 operation as a partner in a general partnership, 

13 a participant in a joint venture, a grantor of a 

14 revocable trust, or as a participant in a similar 

15 entity as determined by the Secretary shall be 

16 considered as actively engaged in farming with 

17 respect to a farming operation if— 

18 ‘‘(i) the entity separately makes a sig19 nificant contribution (based on the total 

20 value of the farming operation) of capital, 

21 equipment, or land; 

22 ‘‘(ii) the stockholders or members col23 lectively make a significant contribution of 

24 personal labor or active personal manage25 ment to the operation; and 
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1 ‘‘(iii) the standards provided in 

2 clauses (ii) and (iii) of paragraph (A), as 

3 applied to the entity, are met by the entity; 

4 ‘‘(C) if a legal entity that is a general part5 nership, joint venture, or similar entity, as de6 termined by the Secretary, separately makes a 

7 significant contribution (based on the total 

8 value of the farming operation involved) of cap9 ital, equipment, or land, and the standards pro10 vided in clauses (ii) and (iii) of paragraph (A), 

11 as applied to the entity, are met by the entity, 

12 the partners or members making a significant 

13 contribution of personal labor or active personal 

14 management shall be considered to be actively 

15 engaged in farming with respect to the farming 

16 operation involved; and 

17 ‘‘(D) in making determinations under this 

18 subsection regarding equipment and personal 

19 labor, the Secretary shall take into consider20 ation the equipment and personal labor nor21 mally and customarily provided by farm opera22 tors in the area involved to produce program 

23 crops. 

24 ‘‘(c) SPECIAL CLASSES ACTIVELY ENGAGED.— 
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1 ‘‘(1) LANDOWNER.—A person or legal entity 

2 that is a landowner contributing the owned land to 

3 a farming operation shall be considered to be ac4 tively engaged in farming with respect to the farm5 ing operation if the landowner receives rent or in6 come for such use of the land based on the land’s 

7 production or the operation’s operating results, and 

8 the person or legal entity meets the standard pro9 vided in clauses (ii) and (iii) of subsection (b)(2)(A). 

10 ‘‘(2) ADULT FAMILY MEMBER.—With respect to 

11 a farming operation when a majority of the partici12 pants are family members, an adult family member 

13 shall be considered to be actively engaged in farming 

14 with respect to the farming operation if the per15 son— 

16 ‘‘(A) makes a significant contribution, 

17 based on the total value of the farming oper18 ation, of active personal management or per19 sonal labor; and 

20 ‘‘(B) such contribution meets the stand21 ards provided in clauses (ii) and (iii) of sub22 section (b)(2)(A). 

23 ‘‘(3) SHARECROPPER.—A sharecropper who 

24 makes a significant contribution of personal labor to 

25 a farming operation shall be considered to be ac-
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1 tively engaged in farming with respect to the farm2 ing operation if such contribution meets the stand3 ards provided in clauses (ii) and (iii) of subsection 

4 (b)(2)(A). 

5 ‘‘(4) GROWERS OF HYBRID SEED.—In deter6 mining whether a person or legal entity growing hy7 brid seed under contract shall be considered to be 

8 actively engaged in farming, the Secretary shall not 

9 take into consideration the existence of a hybrid seed 

10 contract. 

11 ‘‘(5) CUSTOM FARMING SERVICES.—A person or 

12 legal entity receiving custom farming services will be 

13 considered separately eligible for payment limitation 

14 purposes if such person or legal entity is actively en15 gaged in farming based on subsection (b)(2) or 

16 paragraphs (1) through (5) of this subsection. No 

17 other rules with respect to custom farming shall 

18 apply in making a determination under this section. 

19 ‘‘(6) SPOUSE.—Where one spouse is determined 

20 to be actively engaged, the other spouse shall be de21 termined to have met the requirements of subclause 

22 (II) of subsection (b)(2)(A)(i) of this section. 

23 ‘‘(d) CLASSES NOT ACTIVELY ENGAGED.— 

24 ‘‘(1) CASH RENT LANDLORD.—A landlord con25 tributing land to a farming operation shall not be 
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1 considered to be actively engaged in farming with re2 spect to the farming operation if the landlord re3 ceives cash rent, or a crop share guaranteed as to 

4 the amount of the commodity to be paid in rent, for 

5 such use of the land. 

6 ‘‘(2) OTHER PERSONS.—Any other person de7 termined by the Secretary as failing to meet the 

8 standards set out in subsections (b)(2) and (c) shall 

9 not be considered to be actively engaged in farming 

10 with respect to a farming operation.’’. 

11 (e) TRANSITION.—Section 1001 of the Food Security 

12 Act of 1985 (7 U.S.C. 1308), as in effect on the day before 

13 the date of the enactment of this Act, shall continue to 

14 apply with respect to the 2007 crop of any covered com15 modity. 

16 SEC. 1504. ADJUSTED GROSS INCOME LIMITATION. 

17 (a) EXTENSION OF ADJUSTED GROSS INCOME LIMI18 TATION.—Section 1001D of the Food Security Act of 

19 1985 (7 U.S.C. 1308–3a) is amended— 

20 (1) in subsection (b)(2), by striking ‘‘Farm Se21 curity and Rural Investment Act of 2002’’ each 

22 place it appears and inserting ‘‘Farm, Nutrition, 

23 and Bioenergy Act of 2007’’; and 

24 (2) in subsection (e), by striking ‘‘2007’’ and 

25 inserting ‘‘2012’’. 
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1 (b) MODIFICATION OF LIMITATION.—Section 

2 1001D(b) of the Food Security Act of 1985 (7 U.S.C. 

3 1308–3a(b)) is amended— 

4 (1) by striking paragraph (1) and inserting the 

5 following new paragraph: 

6 ‘‘(1) CAPS.— 

7 ‘‘(A) UPPER LIMIT.—Notwithstanding any 

8 other provision of law, an individual or entity 

9 shall not be eligible to receive any benefit de10 scribed in paragraph (2) during a crop year if 

11 the average adjusted gross income of the indi12 vidual or entity exceeds $1,000,000. 

13 ‘‘(B) PRODUCER EXEMPTION.—Notwith14 standing any other provision of law, an indi15 vidual or entity shall not be eligible to receive 

16 any benefit described in paragraph (2) during a 

17 crop year if the average adjusted gross income 

18 of the individual or entity exceeds $500,000, 

19 unless not less than 66.66 percent of the aver20 age adjusted gross income of the individual or 

21 entity is derived from farming, ranching, or for22 estry operations, as determined by the Sec23 retary.’’; 

24 (2) in paragraph (2)(A), by striking ‘‘or C’’; 

25 and 
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1 (3) by adding at the end the following new 

2 paragraph: 

3 ‘‘(3) INCOME DERIVED FROM FARMING, RANCH4 ING OR FORESTRY OPERATIONS.—In determining 

5 what portion of the average adjusted gross income of 

6 an individual or entity is derived from farming, 

7 ranching, or forestry operations, the Secretary shall 

8 include income derived from the following: 

9 ‘‘(A) The production of crops, livestock, or 

10 unfinished raw forestry products. 

11 ‘‘(B) The sale, including the sale of ease12 ments and development rights, of farm, ranch, 

13 or forestry land or water rights. 

14 ‘‘(C) The sale, but not as a dealer, of 

15 equipment purchased to conduct farm, ranch, 

16 or forestry operations when the equipment is 

17 otherwise subject to depreciation expense. 

18 ‘‘(D) The rental of land used for farming, 

19 ranching, or forestry operations. 

20 ‘‘(E) The provision of production inputs 

21 and services to farmers, ranchers, and foresters. 

22 ‘‘(F) The processing, storing, and trans23 porting of farm, ranch, and forestry commod24 ities. 
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1 ‘‘(G) The sale of land that has been used 

2 for agriculture.’’. 

3 SEC. 1505. ADJUSTMENTS OF LOANS. 

4 Section 162 of the Federal Agriculture Improvement 

5 and Reform Act of 1996 (7 U.S.C. 7282) is amended— 

6 (1) in subsection (a), by inserting ‘‘(except for 

7 cotton and long grain, medium grain, and short 

8 grain rice)’’ after ‘‘commodity’’; 

9 (2) in subsection (b), by striking ‘‘Farm Secu10 rity and Rural Investment Act of 2002’’ and insert11 ing ‘‘Farm, Nutrition, and Bioenergy Act of 2007’’; 

12 and 

13 (3) by adding at the end the following new sub14 sections: 

15 ‘‘(d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 

16 ‘‘(1) ADJUSTMENT AUTHORITY.—The Secretary 

17 may make appropriate adjustments in the loan rate 

18 for cotton for differences in quality factors. 

19 ‘‘(2) REVISIONS TO QUALITY ADJUSTMENTS

20 FOR UPLAND COTTON.— 

21 ‘‘(A) REVISION.—Within 180 days after 

22 the date of the enactment of the Farm, Nutri23 tion, and Bioenergy Act of 2007, the Secretary, 

24 after consultation with the private sector as 

25 provided in paragraph (3), shall implement revi-
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1 sions in the administration of the marketing as2 sistance loan program for upland cotton to 

3 more accurately and efficiently reflect market 

4 values for upland cotton. 

5 ‘‘(B) MANDATORY REVISIONS.—The revi6 sions required under subparagraph (A) shall in7 clude the following: 

8 ‘‘(i) The elimination or adjustment of 

9 warehouse location differentials to reflect 

10 market conditions. 

11 ‘‘(ii) The establishment of differentials 

12 for the various quality factors and staple 

13 lengths of cotton based on a three-year, 

14 weighted moving average of the weighted 

15 designated spot market regions as deter16 mined by regional production. 

17 ‘‘(iii) The elimination of any artificial 

18 split in the premium or discount between 

19 upland cotton with a 32 or 33 staple 

20 length due to micronaire; 

21 ‘‘(iv) A mechanism to ensure that no 

22 premium or discount is established that ex23 ceeds the premium or discount associated 

24 with a leaf grade that is one better than 

25 the applicable color grade. 
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1 ‘‘(C) DISCRETIONARY REVISIONS.—The re2 visions under subparagraph (A) may include, at 

3 a minimum, the following: 

4 ‘‘(i) The use of non-spot market price 

5 data, in addition to spot market price data, 

6 that would enhance the accuracy of the 

7 price information used in determining 

8 quality adjustments under this subsection. 

9 ‘‘(ii) Adjustments in the premiums or 

10 discounts associated with upland cotton 

11 with a staple length of 33 or above due to 

12 micronaire with the goal of eliminating any 

13 unnecessary artificial splits in the calcula14 tions of such premiums or discounts. 

15 ‘‘(iii) Such other adjustments deter16 mined appropriate by the Secretary, after 

17 consultations conducted in accordance with 

18 paragraph (3). 

19 ‘‘(3) CONSULTATION WITH PRIVATE SECTOR.— 

20 ‘‘(A) PRIOR TO REVISION.—Prior to imple21 menting any revisions to the administration of 

22 the marketing assistance loan program for up23 land cotton, the Secretary should endeavor to 

24 consult with an existing private sector com25 mittee whose membership includes representa-
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1 tives of the production, ginning, warehousing, 

2 cooperative, and merchandising segments of the 

3 United States cotton industry and that has de4 veloped recommendations concerning such revi5 sions. 

6 ‘‘(B) UPON REVIEW.—The Secretary shall 

7 also consult with the committee referred to in 

8 subparagraph (A) when conducting a review of 

9 adjustments in the operation of the loan pro10 gram as provided in paragraph (4). 

11 ‘‘(C) INAPPLICABILITY OF FEDERAL ADVI12 SORY COMMITTEE ACT.—The Federal Advisory 

13 Committee Act (5 U.S.C. App.) shall not apply 

14 to consultations under this paragraph with the 

15 committee referred to in subparagraph (A). 

16 ‘‘(4) REVIEW OF ADJUSTMENTS.—The Sec17 retary may review the operation of the upland cotton 

18 quality adjustments implemented pursuant to this 

19 subsection and may make further revisions to the 

20 administration of the loan program, by either revok21 ing or revising the actions taken pursuant to para22 graph (2)(B) or by revoking or revising any actions 

23 taken or authorized to be taken under paragraph 

24 (2)(B). 
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1 ‘‘(5) ADJUSTMENTS IN EFFECT PRIOR TO REVI2 SION.—The quality differences (premiums and dis3 counts for quality factors) applicable to the upland 

4 cotton loan program (prior to any revisions in ac5 cordance with this subsection) shall be established 

6 by the Secretary by giving equal weight— 

7 ‘‘(A) to loan differences for the preceding 

8 crop; and 

9 ‘‘(B) to market differences for such crop in 

10 the designated United States spot markets. 

11 ‘‘(e) RICE LIMITATION.—With respect to long grain 

12 rice and medium and short grain rice, the Secretary shall 

13 not make adjustments in the loan rates for such commod14 ities, except for differences in grade and quality (including 

15 milling yields).’’. 

16 SEC. 1506. PERSONAL LIABILITY OF PRODUCERS FOR DEFI17 CIENCIES. 

18 Section 164 of the Federal Agriculture Improvement 

19 and Reform Act of 1996 (7 U.S.C. 7284) is amended by 

20 striking ‘‘Farm Security and Rural Investment Act of 

21 2002’’ each place it appears and inserting ‘‘Farm, Nutri22 tion, and Bioenergy Act of 2007’’. 
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1 SEC. 1507. EXTENSION OF EXISTING ADMINISTRATIVE AU2 THORITY REGARDING LOANS. 

3 Section 166 of the Federal Agriculture Improvement 

4 and Reform Act of 1996 (7 U.S.C. 7286) is amended in 

5 subsections (a) and (c)(1) by striking ‘‘subtitle B and C 

6 of title I of the Farm Security and Rural Investment Act 

7 of 2002’’ each place it appears and inserting ‘‘subtitle B 

8 of title I of the Farm, Nutrition, and Bioenergy Act of 

9 2007’’. 

10 SEC. 1508. ASSIGNMENT OF PAYMENTS. 

11 (a) IN GENERAL.—The provisions of section 8(g) of 

12 the Soil Conservation and Domestic Allotment Act (16 

13 U.S.C. 590h(g)), relating to assignment of payments, shall 

14 apply to payments made under the authority of this title. 

15 (b) NOTICE.—The producer making the assignment, 

16 or the assignee, shall provide the Secretary with notice, 

17 in such manner as the Secretary may require, of any as18 signment made under this section. 

19 SEC. 1509. TRACKING OF BENEFITS. 

20 As soon as practicable after the date of enactment 

21 of this Act, the Secretary shall track the benefits provided, 

22 directly or indirectly, to individuals and entities under ti23 tles I and II and the amendments made by those titles. 

24 SEC. 1510. UPLAND COTTON STORAGE PAYMENTS. 

25 Beginning with the 2011 crop of upland cotton, the 

26 Secretary may not use the funds of the Commodity Credit 
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1 Corporation to pay storage, handling, and other costs as2 sociated with the storage of upland cotton for which a 

3 marketing assistance loan is made under section 1201. 

4 SEC. 1511. GOVERNMENT PUBLICATION OF COTTON PRICE 

5 FORECASTS. 

6 Section 15 of the Agricultural Marketing Act (12 

7 U.S.C. 1141j) is amended by striking subsection (d). 

8 SEC. 1512. PREVENTION OF DECEASED PERSONS RECEIV9 ING PAYMENTS UNDER FARM COMMODITY 

10 PROGRAMS. 

11 (a) IDENTIFICATION OF ERRONEOUS PAYMENTS

12 MADE TO DECEASED PERSONS.—The Secretary of Agri13 culture shall— 

14 (1) undertake a study to identify any estate of 

15 a deceased person that continued to receive pay16 ments under this title for more than two crop years 

17 after the death of the person; and 

18 (2) submit a report containing the results of 

19 the study to Congress. 

20 (b) NOTIFICATION.—The Secretary shall issue regu21 lations that specify deadlines by which a legal entity must 

22 notify the Secretary of any change in ownership of such 

23 entity, including the death of a person with a direct or 

24 indirect ownership interest in the entity, that may affect 

25 the entity’s eligibility to receive payments or other benefits 
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1 under this title. The Secretary may deny the issuance of 

2 such payments or benefits to an entity that fails to comply 

3 with such regulations. 

4 (c) RECOUPMENT.—If the Secretary determines that 

5 the estate of a deceased person failed to timely notify the 

6 Farm Service Agency of the death, the Secretary shall re7 coup the erroneous payments made on behalf of the de8 ceased person. The Secretary shall withhold payments that 

9 would otherwise be made under this title to farming oper10 ations in which the deceased person was actively engaged 

11 in farming before death until the funds have been re12 couped. 

13 (d) COORDINATION.—The Secretary shall, twice a 

14 year, reconcile individual tax identification numbers with 

15 the Internal Revenue Service for recipients of payments 

16 under this title to determine recipients’ living status. 

17 TITLE II—CONSERVATION 

Subtitle A—Conservation Programs of the Food Security Act of 1985 

Sec. 2101. Conservation reserve program. 

Sec. 2102. Wetlands reserve program. 

Sec. 2103. Conservation security program. 

Sec. 2104. Grassland reserve program. 

Sec. 2105. Environmental quality incentives program. 

Sec. 2106. Regional water enhancement program. 

Sec. 2107. Grassroots source water protection program. 

Sec. 2108. Conservation of private grazing land. 

Sec. 2109. Great Lakes basin program for soil erosion and sediment control. 

Sec. 2110. Farm and ranchland protection program. 

Sec. 2111. Farm viability program. 

Sec. 2112. Wildlife habitat incentive program. 

Subtitle B—Conservation Programs Under Other Laws 

Sec. 2201. Agricultural management assistance program. 

Sec. 2202. Resource Conservation and Development Program. 
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Sec. 2203. Small watershed rehabilitation program. 

Subtitle C—Additional Conservation Programs 

Sec. 2301. Chesapeake Bay program for nutrient reduction and sediment control. 

Sec. 2302. Voluntary public access and habitat incentive program. 

Subtitle D—Administration and Funding 

Sec. 2401. Funding of conservation programs under Food Security Act of 

1985. 

Sec. 2402. Improved provision of technical assistance under conservation programs. 

Sec. 2403. Cooperative conservation partnership initiative. 

Sec. 2404. Regional equity and flexibility. 

Sec. 2405. Administrative requirements for conservation programs. 

Sec. 2406. Annual report on participation by specialty crop producers in conservation programs. 

Sec. 2407. Promotion of market-based approaches to conservation. 

Sec. 2408. Establishment of State technical committees and their responsibilities. 

Sec. 2409. Payment limitations. 

Subtitle E—Miscellaneous Provisions 

Sec. 2501. Inclusion of income from affiliated packing and handling operations 

as income derived from farming for application of adjusted 

gross income limitation on eligibility for conservation programs. 

Sec. 2502. Encouragement of voluntary sustainability practices guidelines. 

Sec. 2503. Farmland resource information. 

1 Subtitle A—Conservation Programs 

2 of the Food Security Act of 1985 

3 SEC. 2101. CONSERVATION RESERVE PROGRAM. 

4 (a) AUTHORIZATION AND ELIGIBLE LAND.—Section 

5 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) 

6 is amended— 

7 (1) in subsection (a)— 

8 (A) by striking ‘‘2007’’ and inserting 

9 ‘‘2012’’; and 

10 (B) by inserting before the period the fol11 lowing: ‘‘and to address issues raised by State, 
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1 regional, and national conservation initiatives’’; 

2 and 

3 (2) in subsection (b)— 

4 (A) in paragraph (1)(B)— 

5 (i) by striking ‘‘the Farm Security 

6 and Rural Investment Act of 2002’’ and 

7 inserting ‘‘the Farm, Nutrition, and Bio8 energy Act of 2007’’; and 

9 (ii) by striking the period at the end 

10 and inserting a semicolon; and 

11 (B) in paragraph (4), by striking the semi12 colon at the end of subparagraph (E) and in13 serting ‘‘; or’’. 

14 (b) MAXIMUM ENROLLMENT.—Section 1231(d) of 

15 the Food Security Act of 1985 (16 U.S.C. 3831(d)) is 

16 amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

17 (c) CONSERVATION PRIORITY AREAS.—Section 

18 1231(f) of the Food Security Act of 1985 (16 U.S.C. 

19 3831(f)) is amended by striking ‘‘the Chesapeake Bay Re20 gion (Pennsylvania, Maryland, and Virginia)’’ and insert21 ing ‘‘the Chesapeake Bay Region’’. 

22 (d) TREATMENT OF MULTI-YEAR GRASSES AND

23 LEGUMES.—Subsection (g) of section 1231 of the Food 

24 Security Act of 1985 (16 U.S.C. 3831) is amended to read 

25 as follows: 
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1 ‘‘(g) MULTI-YEAR GRASSES AND LEGUMES.— 

2 ‘‘(1) IN GENERAL.—For purposes of this sub3 chapter, alfalfa and other multi-year grasses and 

4 legumes in a rotation practice, approved by the Sec5 retary, shall be considered agricultural commodities. 

6 ‘‘(2) CROPPING HISTORY.—Alfalfa, when grown 

7 as part of a rotation practice, as determined by the 

8 Secretary, is an agricultural commodity subject to 

9 the cropping history criteria under subsection 

10 (b)(1)(B) for the purpose of determining whether 

11 highly erodible cropland has been planted or consid12 ered planted for 4 of the 6 years referred to in such 

13 subsection.’’. 

14 (e) PILOT PROGRAM FOR ENROLLMENT OF WET15 LAND AND BUFFER ACREAGE IN CONSERVATION RE16 SERVE.—Section 1231(h)(1)(A) of the Food Security Act 

17 of 1985 (16 U.S.C. 3831(h)(1)(A)) is amended by striking 

18 ‘‘2007’’ and inserting ‘‘2012’’. 

19 (f) MANAGED HAYING AND GRAZING.—Section 

20 1232(a)(7) of the Food Security Act of 1985 (16 U.S.C. 

21 3832(a)(7)) is amended— 

22 (1) in subparagraph (A)— 

23 (A) by inserting ‘‘and prescribed grazing 

24 for the control of invasive species’’ after ‘‘bio25 mass’’; and 
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1 (B) by striking ‘‘and’’ at the end of the 

2 subparagraph; 

3 (2) by redesignating subparagraph (B) as sub4 paragraph (D); and 

5 (3) by inserting after subparagraph (A) the fol6 lowing new subparagraph: 

7 ‘‘(B) managed grazing during the year, ex8 cept that in permitting such grazing, the Sec9 retary shall— 

10 ‘‘(i) reduce the rental payment other11 wise payable under the contract by a per12 centage determined by the Secretary to be 

13 appropriate; and 

14 ‘‘(ii) require a management plan, in15 cluding a grazing rate, approved by the 

16 Secretary that is consistent with section 

17 1231(a); 

18 ‘‘(C) dryland crop production and grazing 

19 practices on acreage enrolled into the conserva20 tion reserve enhancement program announced 

21 on May 27, 1998 (63 Fed. Reg. 28965) where 

22 the conservation reserve enhancement program 

23 is initiated to address declining groundwater or 

24 surface water resources and water quality 

25 issues associated with declining groundwater or 
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1 surface water resources and the conservation 

2 reserve enhancement contract requires the 

3 owner or operator to retire a water right, except 

4 that in permitting dryland crop production and 

5 grazing, the Secretary shall— 

6 ‘‘(i) develop an appropriate working 

7 lands conservation plan that implements 

8 conservation practices suitable to the re9 gion to address soil conservation, water 

10 quality, wildlife habitat, or other environ11 mental benefits; 

12 ‘‘(ii) apply the provisions of section 

13 11005 of the Farm, Nutrition, and Bio14 energy Act of 2007 in determining the eli15 gibility for crop insurance of dryland crop 

16 production and grazing activities allowed 

17 under a conservation reserve enhancement 

18 contract for the purposes of this section, 

19 dryland crop production and grazing activi20 ties allowed under a conservation reserve 

21 enhancement contract shall be considered 

22 ‘noncropland’ in applying the provisions of 

23 section 11005 of the Farm, Nutrition, and 

24 Bioenergy Act of 2007; 
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1 ‘‘(iii) reduce the rental payment other2 wise payable under the contract by an 

3 amount commensurate with the economic 

4 value of the crop production or grazing ac5 tivity, while still leaving sufficient financial 

6 incentives for the owner or operator to par7 ticipate in the conservation reserve en8 hancement; and 

9 ‘‘(iv) at the request of a State that 

10 has previously entered into a conservation 

11 reserve enhancement program agreement, 

12 renegotiate the agreement to allow for the 

13 dryland crop production and grazing in ac14 cordance with this section; and’’. 

15 (g) RENTAL RATES.—Section 1234(c) of the Food 

16 Security Act of 1985 (16 U.S.C. 3834(c)) is amended by 

17 adding at the end the following new paragraph: 

18 ‘‘(5) COUNTY AVERAGE MARKET DRY-LAND AND

19 IRRIGATED CASH RENTAL RATES.— 

20 ‘‘(A) ANNUAL ESTIMATES.—Beginning not 

21 later than one year after the date of the enact22 ment of the Farm, Nutrition, and Bioenergy 

23 Act of 2007, the National Agricultural Statis24 tics Service shall conduct an annual survey of 

25 per acre estimates of county average market 
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1 dry-land and irrigated cash rental rates for 

2 cropland and pastureland in all counties or 

3 equivalent subdivisions within each State with 

4 20,000 acres or more of cropland and 

5 pastureland. 

6 ‘‘(B) PUBLIC AVAILABILITY OF ESTI7 MATES.— The estimates derived as a result of 

8 the annual survey conducted under subpara9 graph (A) shall be maintained on a website of 

10 the Department of Agriculture for use by the 

11 general public.’’. 

12 (h) CONSERVATION RESERVE PROGRAM TRANSITION

13 INCENTIVES.—Section 1235 of the Food Security Act of 

14 1985 (16 U.S.C. 3835) is amended— 

15 (1) in subsection (c)(1)(B)— 

16 (A) in clause (ii), by striking ‘‘or’’ at the 

17 end; 

18 (B) by redesignating clause (iii) as clause 

19 (iv); and 

20 (C) by inserting after clause (ii) the fol21 lowing new clause: 

22 ‘‘(iii) to facilitate a transition of land 

23 subject to the contract from a retired or 

24 retiring owner or operator to a beginning 

25 farmer or rancher, socially disadvantaged 
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1 farmer or rancher, or limited resource 

2 farmer or rancher for the purpose of re3 turning some or all of the land into pro4 duction using sustainable grazing or crop 

5 production methods; or’’; and 

6 (2) by adding at the end the following new sub7 section: 

8 ‘‘(f) TRANSITION OPTION FOR CERTAIN FARMERS OR

9 RANCHERS.— 

10 ‘‘(1) DUTIES OF THE SECRETARY.—In the case 

11 of a contract modification approved in order to fa12 cilitate the transfer of land subject to a contract 

13 from a retired or retiring owner or operator under 

14 subsection (c)(1)(B)(iii) to a beginning farmer or 

15 rancher, socially disadvantaged farmer or rancher, 

16 or limited resource farmer or rancher (in this sub17 section referred to as a ‘covered farmer or rancher’) 

18 the Secretary shall— 

19 ‘‘(A) beginning on the date that is 1 year 

20 before the date of termination of the contract— 

21 ‘‘(i) allow the covered farmer or 

22 rancher, in conjunction with the retired or 

23 retiring owner or operator, to make con24 servation and land improvements; and 
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1 ‘‘(ii) allow the covered farmer or 

2 rancher, at the election of the covered 

3 farmer or rancher, to begin the certifi4 cation process under the Organic Foods 

5 Production Act of 1990 (7 U.S.C. 6501 et 

6 seq.); 

7 ‘‘(B) beginning on the date of termination 

8 of the contract, require the retired or retiring 

9 owner or operator to sell or lease (under a long10 term lease or a lease with an option to pur11 chase) to the covered farmer or rancher the 

12 land subject to the contract for production pur13 poses; 

14 ‘‘(C) require the covered farmer or rancher 

15 to develop and implement a comprehensive con16 servation plan that meets such sustainability 

17 criteria as the Secretary may establish; 

18 ‘‘(D) provide to the covered farmer or 

19 rancher an opportunity to enroll in the con20 servation security program or the environmental 

21 quality incentives program by not later than the 

22 date on which the farmer or rancher takes pos23 session of the land through ownership or lease; 

24 and 
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1 ‘‘(E) continue to make annual payments to 

2 the retired or retiring owner or operator for not 

3 more than an additional 2 years after the date 

4 of termination of the contract, if the retired or 

5 retiring owner or operator is not a family mem6 ber (as defined in section 1001A(b)(3)(B) of 

7 this Act) of the covered farmer or rancher. 

8 ‘‘(2) REENROLLMENT.—The Secretary shall 

9 provide to a beginning farmer or rancher, socially 

10 disadvantaged farmer or rancher, or limited resource 

11 farmer or rancher described in paragraph (1) the 

12 option to reenroll any applicable partial field con13 servation practice that is— 

14 ‘‘(A) eligible for enrollment under the con15 tinuous signup requirement of section 

16 1231(h)(4)(B); and 

17 ‘‘(B) part of an approved comprehensive 

18 conservation plan.’’. 

19 (i) EARLY TERMINATION.—Section 1235(e)(1) of the 

20 Food Security Act of 1985 (16 U.S.C. 3835(e)(1)) is 

21 amended by striking ‘‘before January 1, 1995,’’. 

22 (j) EXCEPTIONS TO EARLY TERMINATION.—Section 

23 1235(e)(2) of the Food Security Act of 1985 (16 U.S.C. 

24 3835(e)(2)) is amended by adding at the end the following 

25 new subparagraph: 
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1 ‘‘(D) Land enrolled under continuous 

2 signup.’’. 

3 SEC. 2102. WETLANDS RESERVE PROGRAM. 

4 (a) ESTABLISHMENT AND PURPOSE.—Subsection (a) 

5 of section 1237 of the Food Security Act of 1985 (16 

6 U.S.C. 3837) is amended to read as follows: 

7 ‘‘(a) ESTABLISHMENT AND PURPOSES.— 

8 ‘‘(1) ESTABLISHMENT.—The Secretary shall es9 tablish a wetlands reserve program to assist owners 

10 of eligible lands in restoring and protecting wet11 lands. 

12 ‘‘(2) PURPOSES.—The purposes of the wetlands 

13 reserve program are— 

14 ‘‘(A) to restore, to create, to protect, or to 

15 enhance wetlands on lands that are eligible 

16 under subsections (c) and (d); and 

17 ‘‘(B) to authorize the Secretary, at the sole 

18 discretion of the Secretary, to purchase flood19 plain easements.’’. 

20 (b) MAXIMUM ENROLLMENT.—Section 1237(b) of 

21 the Food Security Act of 1985 (16 U.S.C. 3837(b)) is 

22 amended— 

23 (1) by striking paragraph (1) and inserting the 

24 following new paragraph: 
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1 ‘‘(1) MAXIMUM ENROLLMENT.—The total num2 ber of acres enrolled in the wetlands reserve pro3 gram shall not exceed 3,605,000 acres.’’; and 

4 (2) by adding at the end the following new 

5 paragraphs: 

6 ‘‘(3) ANNUAL ENROLLMENT GOAL.—Of the 

7 total number of acres authorized by paragraph (1), 

8 to the maximum extent practicable, the Secretary 

9 shall enroll 250,000 acres in each fiscal year. 

10 ‘‘(4) FLOOD-PLAIN EASEMENTS.—Of the acres 

11 to be enrolled each fiscal year, not more than 10,000 

12 acres may be enrolled using flood-plain easements.’’. 

13 (c) ELIGIBLE LANDS.—Subsection (c) of section 

14 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) 

15 is amended to read as follows: 

16 ‘‘(c) ELIGIBILITY.—For purposes of enrolling land 

17 into the wetland reserve program established under this 

18 subchapter during the 2008 through 2012 fiscal years, 

19 land shall be eligible to be placed into such reserve if the 

20 Secretary determines that— 

21 ‘‘(1) in the case of wetlands— 

22 ‘‘(A) the land maximizes wetland values 

23 and functions and wildlife benefits; 

24 ‘‘(B) the land is farmed wetland or con25 verted wetland, together with adjacent lands 
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1 that are functionally dependent on such wet2 lands, except that converted wetlands where the 

3 conversion was not commenced prior to Decem4 ber 23, 1985, shall not be eligible to be enrolled 

5 in the program under this section; 

6 ‘‘(C) the likelihood of the successful res7 toration of such land, and the resultant wetland 

8 values, merit inclusion of the land into the pro9 gram taking into consideration the cost of such 

10 restoration; and 

11 ‘‘(D) the land consists of riparian areas, 

12 including areas that link wetlands that are pro13 tected by easements or some other device or cir14 cumstance that achieves the same purpose as 

15 an easement; or 

16 ‘‘(2) in the case of flood-plain lands— 

17 ‘‘(A) the flood-plain land has been dam18 aged by flooding at least once within the pre19 vious calendar year, or has been subject to flood 

20 damage at least twice within the previous 10 

21 years; or 

22 ‘‘(B) the enrollment of other land within 

23 the flood plain would contribute to the restora24 tion of the flood storage and flow or erosion 

25 control.’’. 
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1 (d) INELIGIBLE LANDS.—Subsection (e) of section 

2 1237 of the Food Security Act of 1985 (16 U.S.C. 3837) 

3 is amended to read as follows: 

4 ‘‘(e) INELIGIBLE LAND.—The Secretary may not ac5 quire easements on— 

6 ‘‘(1) in the case of wetlands— 

7 ‘‘(A) land that contains timber stands es8 tablished under the conservation reserve under 

9 subchapter B; or 

10 ‘‘(B) pasture land established to trees 

11 under the conservation reserve under sub12 chapter B; or 

13 ‘‘(2) in the case of flood-plain lands— 

14 ‘‘(A) land on which implementation of res15 toration practices would not be productive; or 

16 ‘‘(B) land that is subject to an existing 

17 easement or deed restriction, and the easement 

18 or deed provides sufficient protection or res19 toration of the flood plain’s functions and val20 ues, as determined by the Secretary.’’. 

21 (e) EASEMENTS AND AGREEMENTS.—Section 1237A 

22 of the Food Security Act of 1985 (16 U.S.C. 3837a) is 

23 amended— 

24 (1) in subsection (a)(2), by inserting ‘‘if appli25 cable,’’ after ‘‘(2)’’; 
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1 (2) in subsection (b)— 

2 (A) in the matter before paragraph (1), by 

3 inserting ‘‘or flood-plain land’’ after ‘‘values of 

4 wetland’’; 

5 (B) in paragraph (1)(B), by inserting ‘‘or 

6 flood-plain land’’ after ‘‘wetland’’; and 

7 (C) in paragraph (3), by inserting ‘‘or 

8 flood-plain lands’’ after ‘‘wetlands’’; 

9 (3) by striking subsection (f) and inserting the 

10 following new subsection: 

11 ‘‘(f) COMPENSATION.—Compensation for easements 

12 acquired by the Secretary under this subchapter shall be 

13 made in cash in such amount as agreed to and specified 

14 in the easement agreement. Lands may be enrolled 

15 through the submission of bids under a procedure estab16 lished by the Secretary. Commendation may be provided 

17 in not less than 5, nor more than 30, annual payments 

18 of equal or unequal size, as agreed to by the owner and 

19 the Secretary based on the following option that results 

20 in the lowest amount of compensation to be paid by the 

21 Secretary: 

22 ‘‘(1) A percentage of the fair market value 

23 based on the Uniform Standards for Professional 

24 Appraisals Procedures, as determined by the Sec-
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1 retary or a percentage of the market value deter2 mined by an area-wide market survey. 

3 ‘‘(2) A geographic cap, prescribed in regulations 

4 issued by the Secretary. 

5 ‘‘(3) The offer made by the landowner.’’; and 

6 (4) by adding at the end the following new sub7 section: 

8 ‘‘(h) ACCEPTANCE OF CONTRIBUTIONS.—The Sec9 retary may accept and use contributions of non-Federal 

10 funds to administer the program under this subchapter.’’. 

11 (f) DUTIES OF THE SECRETARY.—Section 1237C of 

12 the Food Security Act of 1985 (16 U.S.C. 3837c) is 

13 amended— 

14 (1) in subsection (a)(1)— 

15 (A) by inserting ‘‘including necessary 

16 maitenance activities,’’ after ‘‘values,’’; and 

17 (B) by inserting ‘‘or flood plains land’’ 

18 after ‘‘wetland’’; and 

19 (2) by striking subsection (c) and inserting the 

20 following new subsection: 

21 ‘‘(c) RANKING OF OFFERS.— 

22 ‘‘(1) IN GENERAL.—When evaluating offers 

23 from landowners, the Secretary may consider— 

24 ‘‘(A) the conservation benefits of obtaining 

25 an easement or other interest in the land; 
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1 ‘‘(B) the cost-effectiveness of each ease2 ment or other interest in eligible land, so as to 

3 maximize the environmental benefits per dollar 

4 expended; and 

5 ‘‘(C) whether the landowner or another 

6 person is offering to contribute financially to 

7 the cost of the easement or other interest in the 

8 land to leverage Federal funds. 

9 ‘‘(2) CONSERVATION BENEFITS.—In deter10 mining the acceptability of easement offers, the Sec11 retary may take into consideration— 

12 ‘‘(A) in the case of wetlands— 

13 ‘‘(i) the extent to which the purposes 

14 of the easement program would be 

15 achieved on the land; 

16 ‘‘(ii) the productivity of the land; and 

17 ‘‘(iii) the on-farm and off-farm envi18 ronmental threats if the land is used for 

19 the production of agricultural commodities; 

20 and 

21 ‘‘(B) in the case of flood-plain lands— 

22 ‘‘(i) the extent to which the purposes 

23 of the easement program would be 

24 achieved on the land; 
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1 ‘‘(ii) whether the land has been re2 peatedly flooded over the last ten years; 

3 ‘‘(iii) the extent to which an easement 

4 on the flood-plain land would contribute to 

5 the restoration or management of land in 

6 the area surrounding the flood-plain land; 

7 and 

8 ‘‘(iv) other factors, as determined by 

9 the Secretary.’’. 

10 (g) WETLANDS RESERVE ENHANCEMENT.—Section 

11 1237D(c) of the Food Security Act of 1985 (16 U.S.C. 

12 3837d(c)) is amended by striking paragraph (4) and in13 serting the following new paragraph: 

14 ‘‘(4) WETLANDS RESERVE ENHANCEMENT.— 

15 ‘‘(A) IN GENERAL.—The provisions of this 

16 subchapter that limit payments to any person, 

17 and section 1305(d) of the Agricultural Rec18 onciliation Act of 1987 (Public Law 100–203; 

19 7 U.S.C. 1308 note), shall not apply to pay20 ments received by a State, political subdivision, 

21 or agency thereof in connection with agree22 ments entered into under a special wetlands re23 serve enhancement program carried out by that 

24 entity that has been approved by the Secretary. 
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1 ‘‘(B) AGREEMENTS.—The Secretary may 

2 enter into agreements with States (including 

3 political subdivisions and agencies of States) re4 garding payments described in subparagraph 

5 (A) that the Secretary determines will advance 

6 the purposes of this subchapter.’’. 

7 (h) AUTHORIZATION.—The Food Security Act of 

8 1985 is amended by inserting after section 1237F (16 

9 U.S.C. 3837f) the following new section: 

10 ‘‘SEC. 1237G. PERIOD OF AUTHORIZATION. 

11 ‘‘This subchapter is authorized to be carried out for 

12 the 2008 through 2012 fiscal years.’’. 

13 SEC. 2103. CONSERVATION SECURITY PROGRAM. 

14 (a) ESTABLISHMENT OF NEW CONSERVATION SECU15 RITY PROGRAM THROUGH 2017.—Subchapter A of chap16 ter 2 of subtitle D of title XII of the Food Security Act 

17 of 1985 (16 U.S.C. 3838 et seq.) is amended to read as 

18 follows: 

19 ‘‘Subchapter A—Conservation Security 

20 Program 

21 ‘‘SEC. 1238. DEFINITIONS. 

22 ‘‘In this subchapter: 

23 ‘‘(1) BEGINNING FARMER OR RANCHER.—The 

24 term ‘beginning farmer or rancher’ has the meaning 

25 given the term under section 343(a) of the Consoli-
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1 dated Farm and Rural Development Act (7 U.S.C. 

2 1991(a)). 

3 ‘‘(2) CONSERVATION PLAN.—The term ‘con4 servation plan’ means a plan that— 

5 ‘‘(A) identifies resources of concern, inven6 tories resources, and establishes benchmark 

7 data and stewardship enhancement objectives; 

8 ‘‘(B) describes improvements that will en9 able the producer to meet and exceed the stew10 ardship threshold for all applicable resources of 

11 concern; and 

12 ‘‘(C) contains a schedule and evaluation 

13 plan for the planning, installing, maintaining, 

14 and managing new conservation practices, ac15 tivities, and management measures and main16 taining, managing, and improving existing con17 servation practices, activities, and management 

18 measures. 

19 ‘‘(3) CONSERVATION PRACTICE.—The term 

20 ‘conservation practice’ means a site-specific land 

21 management practice or activity, or a supporting 

22 structural practice, that is part of an implemented 

23 management system designed to address a priority 

24 resource of concern. 
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1 ‘‘(4) CONSERVATION SECURITY CONTRACT.— 

2 The term ‘conservation security contract’ means a 

3 contract entered into under this subchapter. 

4 ‘‘(5) CONSERVATION SECURITY PROGRAM.—The 

5 term ‘conservation security program’ means the pro6 gram established under section 1238A(a). 

7 ‘‘(6) MANAGEMENT INTENSITY.— The term 

8 ‘management intensity’ means the degree, scope, 

9 and comprehensiveness of conservation practices, ac10 tivities, or management measures taken by a pro11 ducer to address a priority resource of concern to a 

12 level exceeding the stewardship threshold. 

13 ‘‘(7) NONDEGRADATION STANDARD.—The term 

14 ‘nondegradation standard’ means the level of natural 

15 resource conservation and environmental manage16 ment measures required to improve and sustain the 

17 status and condition of natural and environmental 

18 resources to a level that, as determined by the Sec19 retary— 

20 ‘‘(A) prevents impairment of soil, water, 

21 and air quality and the quality of fish and wild22 life habitat; and 

23 ‘‘(B) sustains the long-term productivity of 

24 agricultural resources. 
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1 ‘‘(8) PRIORITY RESOURCE OF CONCERN.—The 

2 term ‘priority resource of concern’ means a resource 

3 of concern identified by the Secretary, consistent 

4 with the requirements of section 1238C(a), that 

5 must be addressed by participants in the conserva6 tion security program in a particular watershed or 

7 other area within that State. 

8 ‘‘(9) PRODUCER.—The term ‘producer’ means 

9 an owner, operator, landlord, tenant, or share10 cropper that— 

11 ‘‘(A) shares in the risk of producing any 

12 crop or livestock; and 

13 ‘‘(B) is entitled to share in the crop or 

14 livestock available for marketing from a farm 

15 (or would have shared had the crop or livestock 

16 been produced). 

17 ‘‘(10) RESOURCE-SPECIFIC INDEX.—The term 

18 ‘resource-specific index’ means an index of manage19 ment intensity or other similar index, developed by 

20 the Secretary, that estimates the expected level of 

21 resource and environmental outcomes of the con22 servation practices, activities, and management 

23 measures employed by a producer. 

24 ‘‘(11) SOCIALLY DISADVANTAGED FARMER OR

25 RANCHER.—The term ‘socially disadvantaged farmer 
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1 or rancher’ has the meaning given the term under 

2 section 355(e) of the Consolidated Farm and Rural 

3 Development Act (7 U.S.C. 2003(e)). 

4 ‘‘(12) STRUCTURAL PRACTICE.—The term 

5 ‘structural practice’ means a site-specific, con6 structed conservation practice that is integrated with 

7 and essential to the successful implementation of the 

8 system of land management practices and activities 

9 that are the basis of a conservation security con10 tract. 

11 ‘‘SEC. 1238A. CONSERVATION SECURITY PROGRAM. 

12 ‘‘(a) ESTABLISHMENT AND PURPOSE.—The Sec13 retary shall establish, and for each of fiscal years 2012 

14 through 2017, carry out a conservation security program 

15 to assist producers in improving environmental quality by 

16 addressing priority resources of concern in a comprehen17 sive manner. 

18 ‘‘(b) ELIGIBLE PRODUCERS.—To be eligible to par19 ticipate in the conservation security program, a producer 

20 shall— 

21 ‘‘(1) demonstrate that the producer is address22 ing at least one priority resource of concern to a 

23 minimum level of management intensity determined 

24 by the Secretary; and 
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1 ‘‘(2) develop and submit to the Secretary, and 

2 obtain the approval of the Secretary of, a conserva3 tion offer. 

4 ‘‘(c) ELIGIBLE LAND.— 

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (2), private agricultural land (including crop7 land, grassland, prairie land, improved pasture land, 

8 forest land and rangeland) and land under the juris9 diction of an Indian tribe (as defined by the Sec10 retary) shall be eligible for enrollment in the con11 servation security program. 

12 ‘‘(2) EXCLUSIONS.— 

13 ‘‘(A) LAND ENROLLED IN OTHER CON14 SERVATION PROGRAMS.—Except as provided in 

15 subsection (f)(3)(A), the following lands are not 

16 eligible for enrollment in the conservation secu17 rity program: 

18 ‘‘(i) Lands enrolled in the conserva19 tion reserve program under subchapter B 

20 of chapter 1. 

21 ‘‘(ii) Land enrolled in the wetlands re22 serve program established under sub23 chapter C of chapter 1. 
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1 ‘‘(iii) Land enrolled in the grassland 

2 reserve program established under sub3 chapter C of chapter 2. 

4 ‘‘(B) CONVERSION TO CROPLAND.—Land 

5 used for crop production after October 1, 2011, 

6 that had not been planted, considered to be 

7 planted, or devoted to crop production for at 

8 least 4 of the 6 years preceding that date (ex9 cept for land enrolled in the conservation re10 serve program or that has been maintained 

11 using long-term crop rotation practices, as de12 termined by the Secretary) shall not be the 

13 basis for any payment under the conservation 

14 security program. 

15 ‘‘(d) ECONOMIC USES.—With respect to eligible land 

16 covered by a conservation security contract, the Secretary 

17 shall permit economic uses of the land that— 

18 ‘‘(1) maintain the agricultural nature of the 

19 land; and 

20 ‘‘(2) are consistent with the conservation pur21 poses of the conservation security program. 

22 ‘‘(e) CONSERVATION SECURITY CONTRACTS.— 

23 ‘‘(1) IN GENERAL.—After a determination that 

24 a producer is eligible for the conservation security 

25 program, and on approval of the conservation offer 
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1 of the producer, the Secretary shall enter into a con2 servation security contract with the producer to en3 roll the land to be covered by the contract in the 

4 conservation security program. 

5 ‘‘(2) TERM.—A conservation security contract 

6 shall be for a term of 5 years. 

7 ‘‘(3) AGRICULTURAL OPERATION.—All the acres 

8 of the agricultural operation that are under the pro9 ducer’s effective control at the time the producer en10 ters into a conservation security contract shall be 

11 covered by the conservation security contract. 

12 ‘‘(4) PROVISIONS.—The conservation security 

13 contract of a producer shall— 

14 ‘‘(A) include a conservation plan approved 

15 by the Secretary; 

16 ‘‘(B) describe the land covered by the con17 servation security contract; 

18 ‘‘(C) state the amount of the stewardship 

19 enhancement payment the Secretary agrees to 

20 make to the producer each year of the conserva21 tion security contract under section 1238C(c); 

22 ‘‘(D) describe the new conservation prac23 tices and activities the producer is required to 

24 implement during the term of the conservation 

25 security contract in order to increase the level 
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1 of management intensity with which the pro2 ducer addresses a priority resource of concern 

3 or priority resources of concern, as designated 

4 by the Secretary under section 1238C(a)(1); 

5 and 

6 ‘‘(E) include such other provisions as the 

7 Secretary determines necessary to ensure the 

8 conservation purposes of the conservation secu9 rity program are met. 

10 ‘‘(5) ON-FARM RESEARCH AND DEMONSTRA11 TION OR PILOT TESTING.—The Secretary may ap12 prove a conservation security contract that in13 cludes— 

14 ‘‘(A) on-farm conservation research and 

15 demonstration activities; and 

16 ‘‘(B) pilot testing of new technologies or 

17 innovative conservation practices. 

18 ‘‘(f) MODIFICATION.—The Secretary may allow a 

19 producer to modify a conservation security contract before 

20 the expiration of the contract if the Secretary determines 

21 that failure to modify the contract would significantly 

22 interfere with achieving the purposes of the conservation 

23 security program. 

24 ‘‘(g) CONTRACT TERMINATION.— 
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1 ‘‘(1) VOLUNTARY TERMINATION.—A producer 

2 may terminate a conservation security contract if the 

3 Secretary determines that termination of the con4 tract would not defeat the purposes of the conserva5 tion plan of the producer. 

6 ‘‘(2) INVOLUNTARY TERMINATION.—The Sec7 retary may terminate a contract under this sub8 chapter if the Secretary determines that the pro9 ducer violated the contract. 

10 ‘‘(3) TRANSFER OR CHANGE OF INTEREST IN

11 LAND SUBJECT TO CONSERVATION SECURITY CON12 TRACT.— 

13 ‘‘(A) IN GENERAL.—Except as provided in 

14 subparagraph (B), the transfer, or change in 

15 the interest, of a producer in land subject to a 

16 conservation security contract shall result in the 

17 termination of the conservation security con18 tract. 

19 ‘‘(B) TRANSFER OF DUTIES AND

20 RIGHTS.—Subparagraph (A) shall not apply if, 

21 within a reasonable period of time after the 

22 date of the transfer or change in the interest in 

23 land, the transferee of the land provides written 

24 notice to the Secretary that all duties and 

25 rights under the conservation security contract 
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1 have been transferred to, and assumed by, the 

2 transferee. The Secretary shall specify what will 

3 be considered a reasonable period of time for 

4 purposes of providing the notification required 

5 by this subparagraph. 

6 ‘‘(h) CONTRACT RENEWAL.—At the end of an initial 

7 conservation security contract of a producer, the Secretary 

8 may allow the producer to renew the contract for one addi9 tional five-year period if the producer— 

10 ‘‘(1) demonstrates compliance with the terms of 

11 the existing contract, including a demonstration that 

12 the producer has complied with the schedule for the 

13 implementation of new practices and activities in14 cluded in the conservation security contract and has 

15 met the stated goals for increasing the level of man16 agement intensity with which the producer is ad17 dressing the designated priority resource of concern 

18 or priority resources of concern; and 

19 ‘‘(2) agrees to implement and maintain such 

20 additional new conservation practices and activities 

21 as the Secretary determines necessary and feasible 

22 to achieve higher levels of management intensity 

23 with which the producer addresses the designated 

24 priority resource of concern or priority resources of 

25 concern. 
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1 ‘‘(i) EFFECT OF NONCOMPLIANCE DUE TO CIR2 CUMSTANCES BEYOND THE CONTROL OF PRODUCERS.— 

3 The Secretary shall include in the conservation security 

4 contract a provision to ensure that a producer shall not 

5 be considered in violation of a conservation security con6 tract for failure to comply with the conservation security 

7 contract due to circumstances beyond the control of the 

8 producer, including a disaster or related condition, as de9 termined by the Secretary. 

10 ‘‘(j) EVALUATION OF OFFERS.—In evaluating appli11 cations by producers to enroll in the conservation security 

12 program, the Secretary shall— 

13 ‘‘(1) consider the extent to which the antici14 pated environmental benefits from the contract are 

15 provided at least cost relative to other similar activi16 ties; 

17 ‘‘(2) consider the extent to which the producer 

18 proposes to increase the level of performance on ap19 plicable resource-specific indices or the level of man20 agement intensity with which the producer addresses 

21 the designated priority resources of concern; 

22 ‘‘(3) consider the extent to which the environ23 mental benefits expected to result from the contract 

24 complements other conservation efforts in the water25 shed or region; 
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1 ‘‘(4) consider the multiple benefits of conserva2 tion-based farming systems, including resource-con3 servation crop rotations, managed rotational graz4 ing, and the adoption of certified production under 

5 the national organic production program under the 

6 Organic Foods Production Act of 1990 (7 U.S.C. 

7 6501 et seq.); and 

8 ‘‘(5) develop any additional criteria for evalu9 ating applications that the Secretary determines are 

10 necessary to ensure that national, State, and local 

11 conservation priorities are effectively addressed. 

12 ‘‘(k) COORDINATION WITH ORGANIC CERTIFI13 CATION.—Within 90 days after the date of the enactment 

14 of the Farm, Nutrition, and Bioenergy Act of 2007, the 

15 Secretary shall establish a transparent and producer16 friendly means by which producers may coordinate and si17 multaneously certify eligibly under a conservation security 

18 contract and under the national organic production pro19 gram established under the Organic Foods Production Act 

20 of 1990 (7 U.S.C. 6501 et seq.). 

21 ‘‘SEC. 1238B. DUTIES OF PRODUCERS. 

22 ‘‘(a) AGREEMENT BY PRODUCER.—Under a con23 servation security contract, a producer shall agree— 
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1 ‘‘(1) to implement during the term of the con2 servation security contract the conservation plan ap3 proved by the Secretary; 

4 ‘‘(2) to maintain, and make available to the 

5 Secretary at such times as the Secretary may re6 quest, appropriate records showing the effective and 

7 timely implementation of the conservation security 

8 contract; and 

9 ‘‘(3) not to engage in any activity during the 

10 term of the conservation security contract that 

11 would interfere with the purposes of the conservation 

12 security program. 

13 ‘‘(b) EFFECT OF VIOLATION.—On the violation of a 

14 term or condition of the conservation security contract of 

15 a producer— 

16 ‘‘(1) if the Secretary determines that the viola17 tion warrants termination of the conservation secu18 rity contract, the producer shall— 

19 ‘‘(A) forfeit all rights to receive payments 

20 under the conservation security contract; and 

21 ‘‘(B) refund to the Secretary all or a por22 tion of the payments received by the producer 

23 under the conservation security contract, in24 cluding any advance payments and interest on 

25 the payments, as determined by the Secretary; 
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1 ‘‘(2) if the Secretary determines that the viola2 tion does not warrant termination of the conserva3 tion security contract, the producer shall refund to 

4 the Secretary, or accept adjustments to, the pay5 ments provided to the producer, as the Secretary de6 termines to be appropriate; or 

7 ‘‘(3) some combination of the remedies author8 ized by paragraphs (1) and (2), as determined by 

9 the Secretary to be appropriate. 

10 ‘‘SEC. 1238C. DUTIES OF THE SECRETARY. 

11 ‘‘(a) IDENTIFICATION OF PRIORITY RESOURCES OF

12 CONCERN.— 

13 ‘‘(1) IDENTIFICATION AT STATE LEVEL.—The 

14 Secretary shall ensure that the identification of pri15 ority resources of concern is made at the State level 

16 so that each priority resource of concern— 

17 ‘‘(A) represents a significant environmental 

18 concern, including watershed management or 

19 wildlife habitat, in the State to which agricul20 tural activities are contributing; and 

21 ‘‘(B) is likely to be addressed successfully 

22 through the implementation of conservation 

23 practices and other activities by producers. 

24 ‘‘(2) LIMITATION.—The Secretary shall identify 

25 not more than 5 resources of concern as priority re-
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1 sources of concern in a particular watershed or other 

2 appropriate region or area within a State. 

3 ‘‘(3) ADVICE AND CONSULTATION.—The Sec4 retary, with the advice of the appropriate State tech5 nical committee and in consultation with Federal 

6 and State agencies with expertise related to natural 

7 resources and environmental quality, shall designate, 

8 to the extent practicable, each priority resource of 

9 concern identified under paragraph (1) as either a 

10 primary, secondary, or tertiary resource of concern. 

11 ‘‘(b) DEVELOPMENT OF RESOURCE-SPECIFIC INDI12 CES.—The Secretary shall develop resource-specific indi13 ces to measure the management intensity with which spe14 cific resources of concern are addressed, for purposes of 

15 determining eligibility and payments for participants in 

16 the conservation security program. 

17 ‘‘(c) STEWARDSHIP ENHANCEMENT PAYMENT.— 

18 ‘‘(1) TIMING OF PAYMENT.—The Secretary 

19 shall make a payment under a conservation security 

20 contract as soon as practicable after October 1 of 

21 each fiscal year. 

22 ‘‘(2) EXCLUSIONS.—A payment to a producer 

23 under this subsection shall not be provided for— 

24 ‘‘(A) the design, construction, or mainte25 nance of animal waste storage or treatment fa-
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1 cilities or associated waste transport or transfer 

2 devices for animal feeding operations; or 

3 ‘‘(B) conservation practices and activities 

4 for which there is no net cost or loss of income 

5 to the producer, as determined by the Sec6 retary. 

7 ‘‘(3) AVAILABILITY OF PAYMENTS.—The Sec8 retary shall provide a stewardship enhancement pay9 ment to a producer under a conservation security 

10 contract to compensate the producer for— 

11 ‘‘(A) ongoing implementation and mainte12 nance of conservation practices, activities, and 

13 management measures in place on the pro14 ducers operation at the time the conservation 

15 security contract is accepted; and 

16 ‘‘(B) installation and adoption of new con17 servation practices, activities, and management 

18 measures or improvements to conservation prac19 tices, activities, and management measures in 

20 place on the producer’s operation, as required 

21 by the conservation security contract. 

22 ‘‘(4) PAYMENT AMOUNT.—The amount of the 

23 stewardship enhancement payment shall be deter24 mined by the Secretary and shall be based, to the 

25 maximum extent feasible, on— 
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1 ‘‘(A) a portion of the actual costs incurred 

2 by the producer; 

3 ‘‘(B) the income forgone by the producer; 

4 and 

5 ‘‘(C) resource-specific indices, in any case 

6 in which such indices have been developed and 

7 implemented. 

8 ‘‘(d) PAYMENT LIMITATIONS.—An individual or enti9 ty may not receive, directly or indirectly, payments under 

10 a conservation security contract that, in the aggregate, ex11 ceed $150,000 for the 5-year term of the conservation se12 curity contract, excluding funding arrangements with fed13 erally recognized Indian Tribes or Alaska Native Corpora14 tions. 

15 ‘‘(e) REGULATIONS.—The Secretary shall promulgate 

16 regulations that— 

17 ‘‘(1) provide for adequate safeguards to protect 

18 the interests of tenants and sharecroppers, including 

19 provision for sharing payments, on a fair and equi20 table basis; and 

21 ‘‘(2) prescribe such other rules as the Secretary 

22 determines to be necessary to ensure a fair and rea23 sonable application of the limitations established 

24 under subsection (d). 
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1 ‘‘(f) ALLOCATION TO STATES.—When making alloca2 tions to States of funds made available to carry out the 

3 conservation security program, the Secretary shall give 

4 significant consideration to the extent and magnitude of 

5 the environmental needs associated with agricultural pro6 duction in each State, the degree to which implementation 

7 of the conservation security program in the State is, or 

8 will be, effective in helping producers address these needs, 

9 and other considerations to achieve equitable geographic 

10 distributions of funds, as determined by the Secretary. 

11 ‘‘(g) TECHNICAL ASSISTANCE.—For each of fiscal 

12 years 2008 through 2017, the Secretary shall provide ap13 propriate technical assistance to producers for the develop14 ment and implementation of conservation security con15 tracts, in an amount not to exceed 15 percent of the 

16 amounts expended for the fiscal year. 

17 ‘‘(h) DATA.—The Secretary shall maintain conserva18 tion security program contract and payment data in a 

19 manner that provides detailed and segmented data that 

20 allows for quantification of the amount of payments made 

21 to producers for— 

22 ‘‘(1) the maintenance of conservation practices, 

23 activities, and management measures in place on the 

24 producer’s operation at the time the conservation se25 curity offer is accepted by the Secretary; 
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1 ‘‘(2) the installation and adoption of new con2 servation practices, activities, and management 

3 measures and the improvements to conservation 

4 practices, activities, and management measures in 

5 place on the producer’s operation at the time the 

6 conservation security offer is accepted by the Sec7 retary; 

8 ‘‘(3) participation in research, demonstration, 

9 and pilot projects; and 

10 ‘‘(4) the development and periodic assessment 

11 and evaluation of comprehensive conservation 

12 plans.’’. 

13 (b) EFFECT ON EXISTING CONSERVATION SECURITY

14 CONTRACTS.—Subchapter A of chapter 2 of subtitle D of 

15 title XII of the Food Security Act of 1985 (16 U.S.C. 

16 3838 et seq.), as in effect on the day before the date of 

17 the enactment of this Act, shall continue to apply to con18 servation security contracts entered into before October 1, 

19 2007. The Secretary of Agriculture may continue to make 

20 payments under such subchapter, as so in effect, with re21 spect to such a conservation security contracts during the 

22 term of the contract. 

23 (c) PROHIBITION ON NEW CONTRACTS.—A conserva24 tion security contract may not be entered into or renewed 

25 under subchapter A of chapter 2 of subtitle D of title XII 
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1 of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.), 

2 as in effect on the day before the date of the enactment 

3 of this Act, after September 30, 2007. 

4 SEC. 2104. GRASSLAND RESERVE PROGRAM. 

5 (a) ENROLLMENT PRIORITY.—Subsection (b) of sec6 tion 1238N of the Food Security Act of 1985 (16 U.S.C. 

7 3838n) is amended by striking paragraph (3) and insert8 ing the following new paragraph: 

9 ‘‘(3) PRIORITY FOR LONG-TERM AGREEMENTS

10 AND EASEMENTS.—Of the total number of acres en11 rolled in the program at any one time through the 

12 methods described in paragraph (2)(A), the Sec13 retary shall ensure that at least 60 percent of the 

14 acres were enrolled through the use of 30-year rental 

15 agreements and permanent and long-term easements 

16 described in clause (ii) of such paragraph.’’. 

17 (b) ENROLLMENT OF ACREAGE.—Subsection (b) of 

18 section 1238N of the Food Security Act of 1985 (16 

19 U.S.C. 3838n) is amended by striking paragraph (1) and 

20 inserting the following new paragraph: 

21 ‘‘(1) ENROLLMENT.—The Secretary shall enroll 

22 an additional 1,340,000 acres of restored or im23 proved grassland, rangeland, and pastureland in the 

24 grassland reserve program during fiscal years 2008 

25 through 2012.’’. 
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1 (c) ENROLLMENT OF CONSERVATION RESERVE PRO2 GRAM LAND.—Section 1238N of the Food Security Act 

3 of 1985 (16 U.S.C. 3838n) is amended by adding at the 

4 end the following new subsections: 

5 ‘‘(d) ENROLLMENT OF CONSERVATION RESERVE

6 PROGRAM LAND.— 

7 ‘‘(1) ENROLLMENT AUTHORIZED.—Subject to 

8 the eligibility requirements of subsection (c) and all 

9 other requirements of this subchapter, land enrolled 

10 in the conservation reserve program may be enrolled 

11 in the grassland reserve program if the Secretary de12 termines that the land is of high ecological value and 

13 under significant threat of conversion to other uses. 

14 ‘‘(2) MAXIMUM ENROLLMENT.—The number of 

15 acres of conservation reserve program land enrolled 

16 under this subsection in a calendar year shall not ex17 ceed 10 percent of the total number of acres enrolled 

18 in the grassland reserve program in that calendar 

19 year. 

20 ‘‘(3) PROHIBITION ON DUPLICATION OF PAY21 MENTS.—Land enrolled in the program under this 

22 subsection shall no longer be eligible for payments 

23 under the conservation reserve program. 

24 ‘‘(e) METHOD FOR DETERMINATION OF FAIR MAR25 KET VALUE.—The Secretary shall determine the fair mar-
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1 ket value of land to be enrolled in program based on the 

2 option specified in paragraph (1), (2), (3), or (4) that re3 sults in the lowest amount of compensation to be paid by 

4 the Secretary: 

5 ‘‘(1) A percentage of the fair market value 

6 based on the Uniform Standards for Professional 

7 Appraisals Procedures, as determined by the Sec8 retary. 

9 ‘‘(2) A percentage of the market value deter10 mined by an area wide market survey. 

11 ‘‘(3) A geographic cap, as prescribed in regula12 tions issued by the Secretary. 

13 ‘‘(4) The offer made by the owner of the land.’’. 

14 (d) GRASSLAND RESERVE ENHANCEMENT.—Section 

15 1238N of the Food Security Act of 1985 (16 U.S.C. 

16 3838n) is amended by inserting after subsection (d), as 

17 added by subsection (b), the following new subsection: 

18 ‘‘(e) GRASSLAND RESERVE ENHANCEMENT.—The 

19 Secretary may enter into such agreements with States, in20 cluding political subdivisions and agencies of States, that 

21 the Secretary determines will advance the purposes of the 

22 grassland reserve program. Section 1305(d) of the Agri23 cultural Reconciliation Act of 1987 (Public Law 100–203; 

24 7 U.S.C. 1308 note) shall not apply to payments received 
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1 by a State or political subdivision or agency thereof in con2 nection with such an agreement.’’. 

3 (e) USE OF PRIVATE ORGANIZATIONS OR STATE

4 AGENCIES.—Section 1238Q of the Food Security Act of 

5 1985 (16 U.S.C. 3838q) is amended— 

6 (1) by striking subsection (a) and inserting the 

7 following new subsection: 

8 ‘‘(a) AUTHORITY TO USE PRIVATE ORGANIZATIONS

9 OR STATES.—The Secretary shall permit a private con10 servation or land trust organization (referred to in this 

11 section as a ‘private organization’) or a State agency to 

12 own, write, and enforce an easement under this sub13 chapter, in lieu of the Secretary, subject to the right of 

14 the Secretary to conduct periodic inspections and enforce 

15 the easement, if— 

16 ‘‘(1) the Secretary determines that granting the 

17 permission will promote protection of grassland, land 

18 that contains forbs, and shrubland; 

19 ‘‘(2) the owner authorizes the private organiza20 tion or State agency to hold and enforce the ease21 ment; and 

22 ‘‘(3) the private organization or State agency 

23 agrees to assume the costs incurred in administering 

24 and enforcing the easement, including the costs of 

25 restoration or rehabilitation of the land as specified 
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1 by the owner and the private organization or State 

2 agency.’’; 

3 (2) in subsection (b), by striking ‘‘hold’’ and in4 serting ‘‘own, write,’’; and 

5 (3) in subsection (c), by striking ‘‘hold’’ and in6 serting ‘‘own, write,’’. 

7 SEC. 2105. ENVIRONMENTAL QUALITY INCENTIVES PRO8 GRAM. 

9 (a) PURPOSES.—Section 1240 of the Food Security 

10 Act of 1985 (16 U.S.C. 3839aa) is amended— 

11 (1) in the matter preceding paragraph (1), by 

12 inserting ‘‘, forest management, organic transition,’’ 

13 after ‘‘agricultural production’’; and 

14 (2) by striking paragraphs (3) and (4) and in15 serting the following new paragraphs: 

16 ‘‘(3) providing flexible assistance to producers 

17 to install and maintain conservation practices that, 

18 while sustaining production of food and fiber— 

19 ‘‘(A) enhance soil, water, and related nat20 ural resources, including grazing land, 

21 forestland, wetland, and wildlife; and 

22 ‘‘(B) conserve energy; 

23 ‘‘(4) assisting producers to make beneficial, cost 

24 effective changes to cropping systems, grazing man25 agement, energy use, forest management, nutrient 
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1 management associated with livestock, pest or irriga2 tion management, or other practices on agricultural 

3 and forested land; and’’. 

4 (b) DEFINITIONS.—Section 1240A of the Food Secu5 rity Act of 1985 (16 U.S.C. 3839aa–1) is amended— 

6 (1) by striking paragraph (3) and inserting the 

7 following new paragraph: 

8 ‘‘(3) LAND MANAGEMENT PRACTICE.— 

9 ‘‘(A) IN GENERAL.—The term ‘land man10 agement practice’ means a site-specific nutrient 

11 or manure management, integrated pest man12 agement, irrigation management, tillage or res13 idue management, grazing management, air 

14 quality management, forest management, sil15 vicultural practice, or other land management 

16 practice carried out on eligible land that the 

17 Secretary determines is needed to protect from 

18 degradation, in the most cost-effective manner, 

19 water, soil, or related resources. 

20 ‘‘(B) FOREST MANAGEMENT PRACTICES.— 

21 For purposes of subparagraph (A), forest man22 agement practices may include activities that 

23 the Secretary determines are needed to— 

24 ‘‘(i) improve water quality; 

25 ‘‘(ii) restore forest biodiversity; 
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1 ‘‘(iii) control invasive species; or 

2 ‘‘(iv) improve watershed health. 

3 ‘‘(C) COORDINATED IMPLEMENTATION.—A 

4 land management practice may involve multiple 

5 landowners implementing eligible conservation 

6 activities in a coordinated fashion.’’; 

7 (2) in paragraph (4), by inserting ‘‘alpacas, 

8 bison,’’ after ‘‘sheep,’’; 

9 (3) by redesignating paragraphs (3), (4), (5), 

10 and (6), as so amended, as paragraphs (4), (5), (6), 

11 and (8), respectively; 

12 (4) by inserting after paragraph (2) the fol13 lowing new paragraph: 

14 ‘‘(3) INTEGRATED PEST MANAGEMENT.—The 

15 term ‘integrated pest management’ means a sustain16 able approach to managing pests by combining bio17 logical, cultural, physical, and chemical tools in a 

18 way that minimizes economic, health, an environ19 mental risks.’’; and 

20 (5) by inserting after paragraph (6), as so re21 designated, the following new paragraph: 

22 ‘‘(7) SOCIALLY DISADVANTAGED FARMER OR

23 RANCHER.—The term ‘socially disadvantaged farmer 

24 or rancher’ has the meaning given the term under 
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1 section 355(e) of the Consolidated Farm and Rural 

2 Development Act (7 U.S.C. 2003(e)).’’. 

3 (c) ELIGIBLE PRACTICES.—Section 1240B(a) of the 

4 Food Security Act of 1985 (16 U.S.C. 3839aa–2(a)) is 

5 amended— 

6 (1) in paragraph (1), by striking ‘‘2010’’ and 

7 inserting ‘‘2012’’; and 

8 (2) in paragraph (2)— 

9 (A) in subparagraph (A), by inserting ‘‘or 

10 receives organic certification’’ after ‘‘chapter’’; 

11 and 

12 (B) by striking subparagraph (B) and in13 serting the following new subparagraph: 

14 ‘‘(B) a producer that implements a land 

15 management practice, receives technical services 

16 from an approved third-party provider, develops 

17 a comprehensive nutrient management plan, or 

18 implements energy efficiency improvements or 

19 renewable energy systems, in accordance with 

20 this chapter shall be eligible to receive incentive 

21 payments.’’. 

22 (d) BEGINNING FARMERS OR RANCHERS AND SO23 CIALLY DISADVANTAGED FARMERS OR RANCHERS.—Sec24 tion 1240B(d)(2) of the Food Security Act of 1985 (16 
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1 U.S.C. 3839aa–2(d)(2)) is amended by striking subpara2 graph (A) and inserting the following new subparagraph: 

3 ‘‘(A) INCREASED COST-SHARE FOR CER4 TAIN PRODUCERS.—The Secretary shall in5 crease the amount provided under paragraph 

6 (1) to a producer that is a beginning farmer or 

7 rancher, socially disadvantaged farmer or 

8 rancher, or limited resource farmer or rancher 

9 to 90 percent of the cost of the practice, as de10 termined by the Secretary.’’. 

11 (e) ADDITIONAL SUPPORT FOR USE OF GASIFIER

12 TECHNOLOGY.—Section 1240B(d)(2) of the Food Secu13 rity Act of 1985 (16 U.S.C. 3839aa–2(d)(2)) is amended 

14 by adding at the end the following new subparagraph: 

15 ‘‘(C) INCREASED COST-SHARE FOR USE OF

16 GASIFIER TECHNOLOGY.—In carrying out this 

17 chapter, the Secretary shall promote air quality 

18 by providing for a 90 percent cost share for 

19 those projects that utilize gasifier technology 

20 for the purposes of the disposal of animal car21 casses and by-products.’’. 

22 (f) INCENTIVE PAYMENTS.—Section 1240B(e) of the 

23 Food Security Act of 1985 (16 U.S.C. 3839aa–2(e)) is 

24 amended— 
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1 (1) by striking paragraph (1) and inserting the 

2 following new paragraph: 

3 ‘‘(1) AVAILABILITY OF INCENTIVE PAY4 MENTS.—The Secretary shall make incentive pay5 ments in an amount and at a rate determined by the 

6 Secretary to be necessary to encourage a producer— 

7 ‘‘(A) to perform 1 or more land manage8 ment practices; 

9 ‘‘(B) to receive technical services from an 

10 approved third-party provider; 

11 ‘‘(C) to develop a comprehensive nutrient 

12 management plan; or 

13 ‘‘(D) to implement energy efficiency im14 provements or renewable energy systems.’’; and 

15 (2) in paragraph (2), by inserting ‘‘pollinator 

16 habitat,’’ after ‘‘invasive species,’’. 

17 (g) ALLOCATION OF FUNDING.—Section 1240B(g) of 

18 the Food Security Act of 1985 (16 U.S.C. 3839aa–2(g)) 

19 is amended— 

20 (1) by striking ‘‘For each’’ and inserting the 

21 following: 

22 ‘‘(1) ALLOCATION FOR LIVESTOCK PRODUCTION

23 PRACTICES.—For each’’; 

24 (2) in such paragraph, as so designated, by 

25 striking ‘‘2007’’ and inserting ‘‘2012’’; and 
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1 (3) by adding at the end the following new 

2 paragraph: 

3 ‘‘(2) ALLOCATION FOR CERTAIN PRODUCERS.— 

4 For each of fiscal years 2007 through 2012, of the 

5 funds made available for cost-share payments and 

6 incentive payments under this chapter, the Secretary 

7 shall reserve, for a period of not less than 90 days 

8 after the date on which the funds are made available 

9 for the fiscal year— 

10 ‘‘(A) not less than 5 percent for beginning 

11 farmers and ranchers; and 

12 ‘‘(B) not less than 5 percent of funds for 

13 socially disadvantaged farmers and ranchers 

14 and limited resource farmers and ranchers.’’. 

15 (h) ELIGIBILITY OF MARKET AGENCIES AND CUS16 TOM FEEDING BUSINESSES.—Section 1240B of the Food 

17 Security Act of 1985 (16 U.S.C. 3839aa–2) is amended 

18 by adding at the end the following new subsection: 

19 ‘‘(i) ELIGIBILITY OF MARKET AGENCIES AND CUS20 TOM FEEDING BUSINESSES FOR ASSISTANCE.—A market 

21 agency (as defined in section 301(c) of the Packers and 

22 Stockyards Act, 1921 (7 U.S.C. 201(c))) or custom feed23 ing business may receive technical assistance, cost-share 

24 payments, or incentive payments under the program. Any 
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1 reference to ‘producer’ in this chapter shall be deemed to 

2 include a market agency or custom feeding business.’’. 

3 (i) EVALUATION OF APPLICATIONS FOR COST-SHARE

4 PAYMENTS AND INCENTIVE PAYMENTS.—Section 1240C 

5 of the Food Security Act of 1985 (16 U.S.C. 3839aa–3) 

6 is amended to read as follows: 

7 ‘‘SEC. 1240C. EVALUATION OF APPLICATIONS FOR COST8 SHARE PAYMENTS AND INCENTIVE PAY9 MENTS. 

10 ‘‘(a) PRIORITIES AND GROUPING OF APPLICA11 TIONS.—In evaluating applications for cost-share pay12 ments and incentive payments, the Secretary shall— 

13 ‘‘(1) prioritize applications based on their over14 all level of cost-effectiveness to ensure that the con15 servation practices and approaches proposed are the 

16 most efficient means of achieving the anticipated en17 vironmental benefits of the project; 

18 ‘‘(2) prioritize applications based on how effec19 tively and comprehensively the project addresses the 

20 designated resource concern or resource concerns; 

21 ‘‘(3) prioritize applications that best fulfill the 

22 purpose of the environmental quality incentives pro23 gram specified in section 1240(1); 
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1 ‘‘(4) develop criteria for evaluating applications 

2 that will ensure that national, State, and local con3 servation priorities are effectively addressed; and 

4 ‘‘(5) to the greatest extent practicable, group 

5 applications of similar crop or livestock operations 

6 for evaluation purposes or otherwise evaluate appli7 cations relative to other applications for similar 

8 farming operations. 

9 ‘‘(b) EVALUATION PROCESS.—The Secretary shall 

10 ensure that the evaluation process is as streamlined and 

11 efficient as practicable in the case of applications that— 

12 ‘‘(1) involve operations with substantial and 

13 sound environmental management systems; and 

14 ‘‘(2) seek a single practice or a limited number 

15 of practices to further improve the environmental 

16 performance of that system.’’. 

17 (j) DUTIES OF PRODUCERS.—Section 1240D(2) of 

18 the Food Security Act of 1985 (16 U.S.C. 3839aa–4(2)) 

19 is amended by striking ‘‘or ranch’’ and inserting ‘‘, ranch, 

20 or forestland’’. 

21 (k) PROGRAM PLAN.—Section 1240E of the Food Se22 curity Act of 1985 (16 U.S.C. 3839aa–5) is amended by 

23 striking subsections (a) and (b) and inserting the following 

24 new subsections: 
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1 ‘‘(a) PLAN OF OPERATIONS.—To be eligible to re2 ceive cost-share payments or incentive payments under the 

3 program, a producer shall submit to the Secretary for ap4 proval a plan of operations that— 

5 ‘‘(1) specifies practices covered under the pro6 gram; 

7 ‘‘(2) includes such terms and conditions as the 

8 Secretary considers necessary to carry out the pro9 gram, including a description of the purposes to be 

10 met by the implementation of the plan; 

11 ‘‘(3) in the case of a confined livestock feeding 

12 operation, provides for development and implementa13 tion of a comprehensive nutrient management plan, 

14 if applicable; and 

15 ‘‘(4) in the case of forestland, is consistent with 

16 the provisions of a forest management plan meeting 

17 with the approval of the Secretary, which may in18 clude a forest stewardship plan, as specified in sec19 tion 5 of the Cooperative Forestry Assistance Act of 

20 1978 (16 U.S.C. 2103a), other practice plan ap21 proved by the State forester, or other plan deter22 mined appropriate by the Secretary. 

23 ‘‘(b) AVOIDANCE OF DUPLICATION.—The Secretary 

24 shall— 
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1 ‘‘(1) consider a permit acquired under a water 

2 or air quality regulatory program as the equivalent 

3 of a plan of operations under subsection (a); and 

4 ‘‘(2) to the maximum extent practicable, elimi5 nate duplication of planning activities under the pro6 gram under this chapter and comparable conserva7 tion programs.’’. 

8 (l) DUTIES OF THE SECRETARY.—Section 1240F of 

9 the Food Security Act of 1985 (16 U.S.C. 3839aa–6) is 

10 amended— 

11 (1) by striking ‘‘To the extent’’ and inserting 

12 ‘‘(a) PROVISION OF ASSISTANCE.—To the extent’’; 

13 and 

14 (2) by adding at the end the following new sub15 section: 

16 ‘‘(b) WATER SAVINGS.—In the case of a practice pri17 marily intended to conserve water, the Secretary may pro18 vide assistance to a producer under this section only if 

19 the Secretary determines that— 

20 ‘‘(1) the practice results in a minimum reduc21 tion, as determined by the Secretary, in the total 

22 consumptive use of ground water or surface water 

23 resources affected by the practice; 

24 ‘‘(2) any saved water remains in the source for 

25 the useful life of the practice; and 
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1 ‘‘(3) the practice will not result, directly or indi2 rectly, in an increase in the consumptive use of 

3 water in the agriculture operation of the producer.’’. 

4 (m) CONSERVATION INNOVATION GRANTS.—Section 

5 1240H of the Food Security Act of 1985 (16 U.S.C. 

6 3839aa–8) is amended to read as follows: 

7 ‘‘SEC. 1240H. CONSERVATION INNOVATION GRANTS. 

8 ‘‘(a) COMPETITIVE GRANTS.—The Secretary shall 

9 pay the cost of competitive grants that are intended to 

10 stimulate innovative approaches to leveraging Federal in11 vestment in environmental enhancement and protection, in 

12 conjunction with agricultural production or forest resource 

13 management, through the program. 

14 ‘‘(b) USE.—The Secretary may provide grants under 

15 this section to governmental and non-governmental orga16 nizations and persons, on a competitive basis, to carry out 

17 projects that— 

18 ‘‘(1) involve producers that are eligible for pay19 ments or technical assistance under the program; 

20 ‘‘(2) leverage funds made available to carry out 

21 the program under this chapter with matching funds 

22 provided by State and local governments and private 

23 organizations to promote environmental enhance24 ment and protection in conjunction with agricultural 

25 production; 
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1 ‘‘(3) ensure efficient and effective transfer of 

2 innovative technologies and approaches dem3 onstrated through projects that receive funding 

4 under this section; and 

5 ‘‘(4) provide environmental and resource con6 servation benefits through increased participation by 

7 producers of specialty crops. 

8 ‘‘(c) PILOT PROGRAM FOR COMPREHENSIVE CON9 SERVATION PLANNING.— 

10 ‘‘(1) PILOT PROGRAM REQUIRED.—The Sec11 retary shall establish a pilot program to undertake 

12 comprehensive conservation planning to assist pro13 ducers before they submit an application for assist14 ance under any of the conservation programs au15 thorized by this subtitle. 

16 ‘‘(2) CONSERVATION PLANNING ASSISTANCE.— 

17 The Secretary shall undertake pilot projects under 

18 the pilot program in the locations specified in para19 graph (3) to assist producers by making a com20 prehensive assessment of the resource concerns, 

21 needs, and alternative solutions for the producer’s 

22 entire operation, as determined by the Secretary, fol23 lowing the procedures in the Natural Resources Con24 servation Service conservation planning manual. The 

25 assistance shall be provided by the Secretary directly 
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1 or through third party providers certified by the Sec2 retary, and shall not be at the expense of the pro3 ducer. The results of the comprehensive planning as4 sistance shall be provided to the producer to enable 

5 informed choices on the type of financial assistance 

6 available under this subtitle that would most effec7 tively address the resource needs of the operation 

8 consistent with the environmental goals for the area 

9 in which the operation is located. 

10 ‘‘(3) PILOT PROJECTS.—Pilot projects in com11 prehensive conservation planning shall be under12 taken in the Chesapeake Bay watershed, and shall 

13 include the identification of hydrologic, soil, and 

14 rural land use factors that are unique to the Del15 marva Peninsula. 

16 ‘‘(4) REPORT.—The Secretary shall conduct an 

17 assessment of the effectiveness of the pilot program 

18 and publish a report, available to the public, of the 

19 results of the assessment. Such assessments shall be 

20 undertaken in the second year and the fifth year of 

21 the pilot program. 

22 ‘‘(d) AIR QUALITY.—Of the funds made available 

23 under subsection (e)(1), the Secretary shall use 

24 $10,000,000 for fiscal year 2008, $15,000,000 for fiscal 

25 year 2009, $30,000,000 for fiscal year 2010, $40,000,000 
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1 for fiscal year 2011, and $55,000,000 for fiscal year 2012 

2 to support air quality improvements to help producers 

3 meet State and local regulatory requirements related to 

4 air quality. Notwithstanding the requirements under sub5 sections (a) and (b), these funds shall be made available 

6 to a State on the basis of air quality concerns facing that 

7 producers in that State. The funds made available shall 

8 be used to provide cost-share and incentive payments to 

9 producers. 

10 ‘‘(e) FUNDING.— 

11 ‘‘(1) AVAILABILITY OF FUNDS.—Of the funds 

12 made available under section 1241(a)(6) for fiscal 

13 years 2008 through 2012, the Secretary shall use 

14 $30,000,000 for fiscal year 2008, $35,000,000 for 

15 fiscal year 2009, $50,000,000 for fiscal year 2010, 

16 $60,000,000 for fiscal year 2011, and $75,000,000 

17 for fiscal year 2012. 

18 ‘‘(2) OUTREACH FOR CERTAIN PRODUCERS.— 

19 Of the funds made available under paragraph (1) for 

20 a fiscal year, the Secretary shall use $5,000,000 to 

21 make grants to support effective outreach and inno22 vative approaches for outreach and to serve organic 

23 producers and producers of specialty crops (as de24 fined in section 3 of the Specialty Crops Competi-
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1 tiveness Act of 2004 (Public Law 108–465; 7 U.S.C. 

2 1621 note). 

3 ‘‘(3) COMPREHENSIVE CONSERVATION PLAN4 NING.—Of the funds made available under para5 graph (1) for a fiscal year, the Secretary shall use 

6 $5,000,000 to carry out the comprehensive conserva7 tion planning pilot program under subsection (c).’’. 

8 SEC. 2106. REGIONAL WATER ENHANCEMENT PROGRAM. 

9 (a) PURPOSE AND GOALS.—The purpose of this sec10 tion is to authorize a regional water enhancement pro11 gram, within the environmental quality incentives pro12 gram, to enhance performance-based, cost-effective con13 servation carried out through cooperative agreements en14 tered into by the Secretary of Agriculture with producers, 

15 governmental entities, and Indian tribes. The goal of the 

16 program is to improve water quality or ground and surface 

17 water quantity through coordinated program activities on 

18 agricultural lands. The Secretary will develop goals and 

19 provide coordinated program assistance for water quality 

20 or water quantity improvement projects. 

21 (b) ESTABLISHMENT OF PROGRAM.—Section 1240I 

22 of the Food Security Act of 1985 (16 U.S.C. 3839aa–9) 

23 is amended to read as follows: 

24 ‘‘SEC. 1240I. REGIONAL WATER ENHANCEMENT PROGRAM. 

25 ‘‘(a) DEFINITIONS.—In this section: 
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1 ‘‘(1) REGIONAL WATER ENHANCEMENT ACTIVI2 TIES.—The term ‘regional water enhancement activi3 ties’ includes resource condition assessment and 

4 modeling, water quality, water quantity or water 

5 conservation plan development, management system 

6 and environmental monitoring and evaluation, cost7 share of restoration or enhancement projects, incen8 tive payments for land management practices, ease9 ment purchases, conservation contracts with land10 owners, improved irrigation systems, water banking 

11 and other forms of water transactions, groundwater 

12 recharge and other conservation related activities 

13 that the Secretary determines will help to achieve 

14 the water quality or water quantity benefits on agri15 cultural lands identified in a partnership agreement. 

16 ‘‘(2) PARTNERSHIP AGREEMENT.—The term 

17 ‘partnership agreement’ means an agreement be18 tween the Secretary and a partner under subsection 

19 (d). 

20 ‘‘(3) PARTNER.—The term ‘partner’ means an 

21 entity that enters into a partnership agreement with 

22 the Secretary to carry out regional water enhance23 ment activities. The term includes— 
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1 ‘‘(A) an agricultural producer, agricultural 

2 or silvicultural producer association, or other 

3 group of such producers; 

4 ‘‘(B) a State or unit of local government, 

5 including an irrigation or water district; or 

6 ‘‘(C) a federally recognized Indian tribe. 

7 ‘‘(b) ESTABLISHMENT OF PROGRAM.— 

8 ‘‘(1) ESTABLISHMENT.—The Secretary shall es9 tablish a regional water enhancement program in ac10 cordance with this section to improve water quality 

11 or water quantity on a regional scale to benefit 

12 working agricultural land and other lands sur13 rounding agricultural land. 

14 ‘‘(2) IDENTIFICATION OF WATER QUALITY AND

15 WATER QUANTITY PRIORITY AREAS.—The Secretary 

16 shall identify areas where protecting or improving 

17 water quality, water quantity, or both is a priority. 

18 In identifying these areas, the Secretary shall 

19 prioritize the Chesapeake Bay, the Upper Mississippi 

20 River basin, the Everglades, the Sacramento River 

21 watershed, and the Klamath River basin. Not more 

22 than 50 percent of the funds made available for the 

23 regional water enhancement program shall be re24 served for priority areas identified in this paragraph. 

25 ‘‘(c) SELECTION OF PARTNERS.— 
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1 ‘‘(1) SOLICITATION OF PARTNERSHIP PRO2 POSALS.—Not later than 90 days after the date of 

3 the enactment of the Farm, Nutrition, and Bio4 energy Act of 2007, the Secretary shall invite pro5 spective partners to submit competitive grant pro6 posals for regional water enhancement partnerships. 

7 ‘‘(2) ELEMENTS.—To be eligible for consider8 ation for participation in the program, a proposal 

9 submitted by a partner shall contain the following 

10 elements: 

11 ‘‘(A) Identification of the exact geographic 

12 area for which the partnership is proposed, 

13 which may be based on— 

14 ‘‘(i) a watershed (or portion thereof); 

15 ‘‘(ii) an irrigation, water, drainage 

16 district, including service area; or 

17 ‘‘(iii) some other geographic area with 

18 characteristics making it suitable for land19 scape-wide program implementation, as 

20 may be determined by the Secretary. 

21 ‘‘(B) Identification of the water quality or 

22 water quantity issues that are of concern in the 

23 area. 
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1 ‘‘(C) A method for determining a baseline 

2 assessment of water quality, water quantity, 

3 and other resource conditions in the region. 

4 ‘‘(D) A detailed description of the proposed 

5 regional water enhancement activities to be un6 dertaken in the area, including an estimated 

7 timeline and budget for each activity. 

8 ‘‘(E) A description of the performance 

9 measures to be used to gauge the effectiveness 

10 of the regional water enhancement activities. 

11 ‘‘(F) A description of other regional water 

12 enhancement activities carried out by the Sec13 retary. 

14 ‘‘(G) A description of regional water en15 hancement activities carried out by partners 

16 through other means. 

17 ‘‘(3) SELECTION OF PROPOSALS.—The Sec18 retary shall award grants competitively, based on the 

19 following criteria applied by the Secretary: 

20 ‘‘(A) Proposals that will result in the inclu21 sion of the highest percentage of agricultural 

22 lands and producers in the area. 

23 ‘‘(B) Proposals that will result in the high24 est percentage of on-the-ground activities versus 

25 administrative costs. 
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1 ‘‘(C) Proposals that will provide the great2 est contribution to sustaining or enhancing ag3 ricultural production in the area or rural eco4 nomic development. 

5 ‘‘(D) Proposals that include performance 

6 measures that will allow post-activity conditions 

7 to be satisfactorily measured to gauge overall 

8 effectiveness. 

9 ‘‘(E) Proposals that will capture surface10 water runoff on farms through the construction, 

11 improvement, or maintenance of irrigation 

12 ponds. 

13 ‘‘(F) Proposals that have the highest likeli14 hood of improving issues of concern for the area 

15 through the participation of multiple interested 

16 persons. 

17 ‘‘(G) Proposals that will assist producers 

18 in meeting a regulatory requirement imposed on 

19 lands in agriculture production that reduces the 

20 economic scope of the producer’s operation. 

21 ‘‘(4) DURATION.—Grants under this subsection 

22 shall be made on a multi-year basis, not to exceed 

23 5 years total, except that the Secretary may termi24 nate a grant earlier if the performance measures are 

25 not being met. 
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1 ‘‘(d) PARTNERSHIP AGREEMENTS.— 

2 ‘‘(1) GENERALLY.—Not later than 30 days 

3 after the award of a grant to a partner under sub4 section (c), the Secretary shall enter into a partner5 ship agreement with the grant recipient. At a min6 imum, the agreement shall contain— 

7 ‘‘(A) a description of the respective duties 

8 and responsibilities of the Secretary and the 

9 partner in carrying out regional water enhance10 ment activities; and 

11 ‘‘(B) the criteria that the Secretary will 

12 use to measure the overall effectiveness of the 

13 regional water enhancement activities funded by 

14 the grant in improving the water quality or 

15 quantity conditions of the region relative to the 

16 performance measures in the grant proposal. 

17 ‘‘(2) ACCEPTANCE OF CONTRIBUTIONS.—The 

18 Secretary may accept and use contributions of non19 Federal funds to administer the program under this 

20 section. 

21 ‘‘(3) WAIVER AUTHORITY.—The Secretary shall 

22 waive the limitation in section 1001D of this Act if 

23 the Secretary determines that doing so is necessary 

24 to fulfill the objectives of the regional water en25 hancement program. 
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1 ‘‘(e) MODIFICATION OF SECRETARIAL AUTHORITY.— 

2 To the extent that the Secretary will be carrying out re3 gional water enhancement activities in an area, the Sec4 retary may use the general authorities provided in this 

5 subtitle to ensure that all producers and landowners in 

6 the region have the opportunity to participate in such ac7 tivities. 

8 ‘‘(f) RELATIONSHIP WITH OTHER PROGRAMS.—The 

9 Secretary shall ensure that, to the extent producers and 

10 landowners are individually participating in other pro11 grams under this subtitle in a region where the regional 

12 water enhancement program is in effect, any improve13 ments to water quality or water quantity attributable to 

14 such individual participation is included in the evaluation 

15 criteria developed under subparagraph (d)(1)(B). 

16 ‘‘(g) CONSISTENCY WITH STATE LAW.—Any regional 

17 water enhancement activity conducted under this section 

18 shall be consistent with State water laws. 

19 ‘‘(h) FUNDING.— 

20 ‘‘(1) AVAILABILITY OF FUNDS.—In addition to 

21 funds made available to carry out this chapter under 

22 section 1241(a)(6), the Secretary shall use funds of 

23 the Commodity Credit Corporation to carry out this 

24 section in the amount of, to the maximum extent 
223 

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1 practicable, $60,000,000 for each of fiscal years 

2 2008 through 2012. 

3 ‘‘(2) LIMITATION ON ADMINISTRATIVE EX4 PENSES.—Not more than 3 percent of the funds 

5 made available under paragraph (1) for a fiscal year 

6 may be used for administrative expenses of the Sec7 retary.’’. 

8 SEC. 2107. GRASSROOTS SOURCE WATER PROTECTION 

9 PROGRAM. 

10 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

11 1240O(b) of the Food Security Act of 1985 (16 U.S.C. 

12 3839bb–2(b)) is amended by striking ‘‘$5,000,000 for 

13 each of fiscal years 2002 through 2007’’ and inserting 

14 ‘‘$20,000,000 for each of fiscal years 2008 through 

15 2012’’. 

16 (b) ADDITIONAL FUNDING.—Section 1240O of the 

17 Food Security Act of 1985 (16 U.S.C. 3839bb–2) is 

18 amended by adding at the end the following new sub19 section: 

20 ‘‘(c) ONE-TIME INFUSION OF FUNDS.—Of the funds 

21 of the Commodity Credit Corporation, the Secretary shall 

22 make available, on a one-time basis, $10,000,000 to carry 

23 out this section. Such funds shall remain available until 

24 expended.’’. 
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1 SEC. 2108. CONSERVATION OF PRIVATE GRAZING LAND. 

2 Section 1240M(e) of the Food Security Act of 1985 

3 (16 U.S.C. 3839bb(e)) is amended by striking ‘‘2007’’ and 

4 inserting ‘‘2012’’. 

5 SEC. 2109. GREAT LAKES BASIN PROGRAM FOR SOIL ERO6 SION AND SEDIMENT CONTROL. 

7 Section 1240P(c) of the Food Security Act of 1985 

8 (16 U.S.C. 3839bb–3(c)) is amended by striking ‘‘2007’’ 

9 and inserting ‘‘2012’’. 

10 SEC. 2110. FARM AND RANCHLAND PROTECTION PROGRAM. 

11 Subchapter B of chapter 2 of subtitle D of title XII 

12 of the Food Security Act of 1985 (16 U.S.C. 3838h et 

13 seq.) is amended to read as follows: 

14 ‘‘Subchapter B—Farm and Ranchland 

15 Protection Program 

16 ‘‘SEC. 1238H. DEFINITIONS. 

17 ‘‘In this subchapter: 

18 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en19 tity’ means any of the following: 

20 ‘‘(A) An agency of a State or local govern21 ment or an Indian tribe (including a farmland 

22 protection board or land resource council estab23 lished under State law). 

24 ‘‘(B) An organization that is organized for, 

25 and at all times since the formation of the orga26 nization has been operated principally for, 1 or 
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1 more of the conservation purposes specified in 

2 clause (i), (ii), (iii), or (iv) of section 

3 170(h)(4)(A) of the Internal Revenue Code of 

4 1986. 

5 ‘‘(C) An organization described in section 

6 501(c)(3) of the Internal Revenue Code of 1986 

7 that is exempt from taxation under section 

8 501(a) of that Code. 

9 ‘‘(D) An organization described in section 

10 509(a)(2) of the Internal Revenue Code of 

11 1986. 

12 ‘‘(E) An organization described in section 

13 509(a)(3) of the Internal Revenue Code of 1986 

14 that is controlled by an organization described 

15 in section 509(a)(2), of that Code. 

16 ‘‘(2) ELIGIBLE LAND.—The term ‘eligible land’ 

17 means land on a farm or ranch that— 

18 ‘‘(A) is cropland; 

19 ‘‘(B) is rangeland; 

20 ‘‘(C) is grassland; 

21 ‘‘(D) is pasture land; 

22 ‘‘(E) is forest land that is an incidental 

23 part of an agricultural operation, as determined 

24 by the Secretary; or 
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1 ‘‘(F) contains historical or archaeological 

2 resources. 

3 ‘‘(3) INDIAN TRIBE.—The term ‘Indian tribe’ 

4 has the meaning given the term in section 4 of the 

5 Indian Self-Determination and Education Assistance 

6 Act (25 U.S.C. 450b). 

7 ‘‘(4) PROGRAM.—The term ‘program’ means 

8 the farm and ranchland protection program estab9 lished under section 1238I(a). 

10 ‘‘(5) SECRETARY.—The term ‘Secretary’ means 

11 the Secretary of Agriculture. 

12 ‘‘SEC. 1238I. FARM AND RANCHLAND PROTECTION PRO13 GRAM. 

14 ‘‘(a) ESTABLISHMENT.— 

15 ‘‘(1) ESTABLISHMENT AND PURPOSE.—The 

16 Secretary shall establish and carry out a farm and 

17 ranchland protection program under which the Sec18 retary shall facilitate and provide funding for the 

19 purchase of conservation easements or other inter20 ests in eligible land that is subject to a pending offer 

21 from a certified State or eligible entity for the pur22 pose of protecting the agricultural use and related 

23 conservation values of the land by limiting incompat24 ible nonagricultural uses of the land. 
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1 ‘‘(2) PRIORITY.—In carrying out the program, 

2 the Secretary shall give the highest priority— 

3 ‘‘(A) to protecting farm and ranchland 

4 with prime, unique or other productive soils 

5 that are at risk of non-agricultural develop6 ment; or 

7 ‘‘(B) to projects that further a State or 

8 local policy consistent with the purposes of the 

9 program. 

10 ‘‘(b) GRANTS TO CERTIFIED STATES.—The Sec11 retary shall make grants to States certified by the Sec12 retary under subsection (c). Such grants shall be made 

13 based on demonstrated need for farm and ranch land pro14 tection. Grants may be made for multiple transactions so 

15 long as all funds provided under the program are used 

16 to purchase conservation easements or other interests in 

17 land in a timely and effective manner. A State receiving 

18 a grant under this subsection may use up to 10 percent 

19 of the grant funds for reasonable costs of purchasing and 

20 enforcing conservation easements. 

21 ‘‘(c) CERTIFICATION OF STATES FOR GRANTS.— 

22 ‘‘(1) CERTIFICATION PROCESS.—The Secretary 

23 shall implement a process, to be published in the 

24 Federal Register, for certifying States as eligible to 

25 participate in the program. The Secretary may pro-
228 

•HR 2419 EH1S 

1 vide a reasonable transitional period, not to extend 

2 past September 30, 2008, in order to allow contin3 ued operation of the program for such time as need4 ed for the Secretary to implement the certification 

5 process. 

6 ‘‘(2) CERTIFICATION REQUIREMENTS.—To be 

7 certified under the process implemented under para8 graph (1), a State shall demonstrate, at a minimum, 

9 the following: 

10 ‘‘(A) A legislative consistent with the pur11 poses of the program. 

12 ‘‘(B) The necessary authority and the re13 sources to monitor and enforce the terms of 

14 conservation easements or other interests in 

15 land or to require the holder of such easements 

16 or other interests in land acquired with the use 

17 of funding under the program to monitor and 

18 enforce the terms of such easements or other 

19 interests in land. 

20 ‘‘(C) Policies and procedures to ensure 

21 that, on average, the purchase price of con22 servation easements or other interests in land 

23 purchased with program funds do not exceed 

24 the fair market value of the easements or other 

25 interests in land. 
229 

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1 ‘‘(D) Policies and procedures that ensure 

2 that conservation easements or other interests 

3 in land purchased with program funds will con4 tinue to protect the agricultural use and related 

5 conservation values of the land. 

6 ‘‘(d) AGREEMENTS WITH ELIGIBLE ENTITIES.— 

7 ‘‘(1) AGREEMENTS AUTHORIZED.—The Sec8 retary may enter into an agreement with an eligible 

9 entity, other than a certified State, under which the 

10 entity may purchase conservation easements using a 

11 combination of its own funds and funds distributed 

12 by the Secretary under the program. 

13 ‘‘(2) TERMS AND CONDITIONS.—An agreement 

14 under this subsection shall stipulate the terms and 

15 conditions under which the eligible entity shall use 

16 funds provided by the Secretary under the program. 

17 The eligible entity shall be authorized to use its own 

18 terms and conditions for conservation easements and 

19 other purchases of interests in land, so long as— 

20 ‘‘(A) such terms and conditions are con21 sistent with the purposes of the program and 

22 permit effective enforcement of the conservation 

23 purposes of such easements or other interests; 

24 ‘‘(B) the eligible entity has in place a re25 quirement consistent with agricultural activities 
230 

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1 regarding the impervious surfaces to be allowed 

2 for any conservation easement or other interest 

3 in land purchased using funds provided under 

4 the program; and 

5 ‘‘(C) the eligible entity requires use of a 

6 conservation plan for any highly erodible crop7 land for which a conservation easement or other 

8 interest in land has been purchased using funds 

9 provided under the program. 

10 ‘‘(e) FEDERAL CONTINGENT RIGHT OF ENFORCE11 MENT.—The Secretary may require the inclusion of a Fed12 eral contingent right of enforcement or executory limita13 tion in a conservation easement or other interest in land 

14 for conservation purposes purchased with Federal funds 

15 provided under the program, in order to enforce the ease16 ment as a party of last resort. The inclusion of such a 

17 right or interest shall not be considered to be the Federal 

18 acquisition of real property and the Federal standards and 

19 procedures for land acquisition shall not apply to the in20 clusion of the right or interest. 

21 ‘‘(f) REVIEW; REVOCATION.— 

22 ‘‘(1) REVIEW.—Every 3 years, the Secretary 

23 shall review the certification of States under sub24 section (c) and the performance of eligible entities in 
231 

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1 meeting the terms and conditions of an agreement 

2 under subsection (d). 

3 ‘‘(2) REVOCATION.— If, in the determination of 

4 the Secretary, a State no longer meets the qualifica5 tions described in subsection (c)(2) or an eligible en6 tity is not meeting the terms and conditions of an 

7 agreement under subsection (d), the Secretary 

8 may— 

9 ‘‘(A) revoke the certification of the State 

10 or terminate the agreement with the eligible en11 tity; or 

12 ‘‘(B) allow the State or eligible entity a 

13 specified period of time in which to take such 

14 actions as may be necessary to retain its certifi15 cation or to meet the terms and conditions of 

16 the agreement, as the case may be. 

17 ‘‘(g) CONSERVATION PLAN.—Any highly erodible 

18 cropland for which a conservation easement or other inter19 est is purchased under this subchapter shall be subject to 

20 the requirements of a conservation plan. In the case of 

21 an easement or other interest in land that is perpetual 

22 in duration, the Secretary may not require the conversion 

23 of the cropland to less intensive uses if, under such plan, 

24 soil erosion can be reduced to ‘T’ or below. 
232 

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1 ‘‘(h) COST SHARING.—The share of the cost provided 

2 under this section for purchasing a conservation easement 

3 or other interest in land shall not exceed 50 percent of 

4 the appraised fair market value of the conservation ease5 ment or other interest in eligible land. Fair market value 

6 shall be determined on the basis of an appraisal of the 

7 conservation easement or other interest in eligible land 

8 using an industry-approved methodology determined by 

9 the entity.’’. 

10 SEC. 2111. FARM VIABILITY PROGRAM. 

11 Section 1238J(b) of the Food Security Act of 1985 

12 (16 U.S.C. 3838j(b)) is amended by striking ‘‘2007’’ and 

13 inserting ‘‘2012’’. 

14 SEC. 2112. WILDLIFE HABITAT INCENTIVE PROGRAM. 

15 (a) REAUTHORIZATION.—Section 1240N of the Food 

16 Security Act of 1985 (16 U.S.C. 3839bb–1) is amended 

17 by adding at the end the following new subsection: 

18 ‘‘(d) DURATION OF PROGRAM.—Using funds made 

19 available under section 1241(a)(7), the Secretary shall 

20 carry out the program during fiscal years 2008 through 

21 2012.’’. 

22 (b) COST SHARE FOR LONG-TERM AGREEMENTS

23 AND IMPACT ON SCOPE OF OPERATIONS.—Section 

24 1240N(b)(2) of the Food Security Act of 1985 (16 U.S.C. 

25 3839bb–1(b)(2)) is amended— 
233 

•HR 2419 EH1S 

1 (1) in the paragraph heading by inserting ‘‘AND

2 IMPACT ON SCOPE OF OPERATIONS’’ after ‘‘AGREE3 MENTS’’; 

4 (2) in subparagraph (A), by striking ‘‘years,’’ 

5 and inserting ‘‘years, or that will assist producers in 

6 meeting a regulatory requirement imposed on lands 

7 in agriculture production that reduces the economic 

8 scope of the producer’s operation,’’; and 

9 (3) in subparagraph (B), by striking ‘‘15 per10 cent’’ and inserting ‘‘25 percent’’. 

11 Subtitle B—Conservation Programs 

12 Under Other Laws 

13 SEC. 2201. AGRICULTURAL MANAGEMENT ASSISTANCE 

14 PROGRAM. 

15 (a) ELIGIBLE STATES.—Section 524(b)(1) of the 

16 Federal Crop Insurance Act (7 U.S.C. 1524(b)(1)) is 

17 amended— 

18 (1) by inserting ‘‘Hawaii,’’ after ‘‘Delaware,’’; 

19 and 

20 (2) by inserting ‘‘Virginia,’’ after ‘‘Vermont,’’. 

21 (b) TECHNICAL CORRECTION.—Section 

22 524(b)(4)(B)(i) of the Federal Crop Insurance Act (7 

23 U.S.C. 1524(b)(4)(B)(i)) is amended by striking ‘‘Except 

24 as provided in clauses (ii) and (iii), the’’ and inserting 

25 ‘‘The’’. 
234 

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1 (c) CERTAIN USES.—Section 524(b)(4) of the Fed2 eral Crop Insurance Act (7 U.S.C. 1524(b)(4)(B)) is 

3 amended by adding at the end the following new subpara4 graph: 

5 ‘‘(C) CERTAIN USES.—Of the amounts 

6 made available to carry out this subsection for 

7 a fiscal year, the Commodity Credit Corpora8 tion shall use not less than— 

9 ‘‘(i) 50 percent to carry out subpara10 graphs (A), (B), and (C) of paragraph (2) 

11 through the Natural Resources Conserva12 tion Service; 

13 ‘‘(ii) 10 percent to provide organic 

14 certification cost share assistance through 

15 the Agricultural Marketing Service; and 

16 ‘‘(iii) 40 percent to conduct activities 

17 to carry out subparagraph (F) of para18 graph (2) through the Risk Management 

19 Agency.’’. 

20 SEC. 2202. RESOURCE CONSERVATION AND DEVELOPMENT 

21 PROGRAM. 

22 (a) LOCALLY LED PLANNING PROCESS.—Section 

23 1528 of the Agriculture and Food Act of 1981 (16 U.S.C. 

24 3451) is amended— 
235 

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1 (1) in paragraph (1), by striking ‘‘planning 

2 process’’ in the matter preceding subparagraph (A) 

3 and inserting ‘‘locally led planning process’’; and 

4 (2) in paragraph (9), by striking ‘‘council’’ and 

5 inserting ‘‘locally led council’’. 

6 (b) AUTHORIZED TECHNICAL ASSISTANCE.—Section 

7 1528(13) of the Agriculture and Food Act of 1981 (16 

8 U.S.C. 3451(13)) is amended by striking subparagraphs 

9 (C) and (D) and inserting the following new subpara10 graphs: 

11 ‘‘(C) providing assistance for the imple12 mentation of area plans and projects; and 

13 ‘‘(D) providing services which bring to 

14 bear the resources of Department of Agri15 culture programs in a local community, as de16 fined in the locally led planning process.’’. 

17 (c) IMPROVED PROVISION OF TECHNICAL ASSIST18 ANCE.—Section 1531 of the Agriculture and Food Act of 

19 1981 (16 U.S.C. 3454) is amended— 

20 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

21 ‘‘In carrying’’; and 

22 (2) by adding at the end the following new sub23 section: 

24 ‘‘(b) COORDINATOR.—To improve the provision of 

25 technical assistance to councils under this subtitle, the 
236 

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1 Secretary shall designate an individual, to be known as 

2 the ‘Coordinator’, for each council. The Coordinator shall 

3 be directly responsible for the provision of technical assist4 ance to the council.’’. 

5 (d) PROGRAM EVALUATION.—Section 1534 of the 

6 Agriculture and Food Act of 1981 (16 U.S.C. 3457) is 

7 repealed. 

8 SEC. 2203. SMALL WATERSHED REHABILITATION PRO9 GRAM. 

10 (a) AVAILABILITY OF FUNDS.—Section 14(h)(1) of 

11 the Watershed Protection and Flood Prevention Act (16 

12 U.S.C. 1012(h)(1)) is amended by adding at the end the 

13 following new subparagraph: 

14 ‘‘(G) $50,000,000 for each of fiscal years 

15 2009 through 2012.’’. 

16 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

17 14(h)(2)(E) of the Watershed Protection and Flood Pre18 vention Act (16 U.S.C. 1012(h)(2)(E)) is amended by 

19 striking ‘‘fiscal year 2007’’ and inserting ‘‘each of fiscal 

20 years 2007 through 2012’’. 
237 

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1 Subtitle C—Additional 

2 Conservation Programs 

3 SEC. 2301. CHESAPEAKE BAY PROGRAM FOR NUTRIENT RE4 DUCTION AND SEDIMENT CONTROL. 

5 Chapter 5 of subtitle D of the Food Security Act of 

6 1985 is amended by inserting after section 1240P (16 

7 U.S.C. 3839bb–3) the following new section: 

8 ‘‘SEC. 1240Q. RIVER RESTORATION IN THE CHESAPEAKE 

9 BAY WATERSHED. 

10 ‘‘(a) CHESAPEAKE BAY WATERSHED DEFINED.—In 

11 this section, the term ‘Chesapeake Bay watershed’ means 

12 all tributaries, backwaters, and side channels, including 

13 their watersheds, draining into the Chesapeake Bay. 

14 ‘‘(b) COMPREHENSIVE PLAN FOR CHESAPEAKE BAY

15 WATERSHED.— 

16 ‘‘(1) DEVELOPMENT.—The Secretary of Agri17 culture shall develop, as expeditiously as practicable, 

18 a proposed comprehensive plan for the purpose of 

19 restoring, preserving, and protecting the Chesapeake 

20 bay watershed. 

21 ‘‘(2) PROVEN TECHNOLOGIES AND INNOVATIVE

22 APPROACHES.—The comprehensive plan shall pro23 vide for the development of new technologies and in24 novative approaches to advance the following goals: 
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•HR 2419 EH1S 

1 ‘‘(A) Improvement of water quality and 

2 quantity within the Chesapeake Bay. 

3 ‘‘(B) Restoration, enhancement, and pres4 ervation of habitat for plants and wildlife. 

5 ‘‘(C) Increase economic opportunity for 

6 producers and rural communities. 

7 ‘‘(3) SPECIFIC COMPONENTS.—The comprehen8 sive plan shall include such features as are necessary 

9 to provide for— 

10 ‘‘(A) the development and implementation 

11 of a program for erosion prevention and con12 trol, sediment control and sediment removal, 

13 and reduction of nutrient loads; 

14 ‘‘(B) the development and implementation 

15 of a program for— 

16 ‘‘(i) the planning, conservation, eval17 uation, and construction of measures for 

18 fish and wildlife habitat conservation and 

19 rehabilitation; and 

20 ‘‘(ii) stabilization and enhancement of 

21 land and water resources; and 

22 ‘‘(C) the development and implementation 

23 of a long-term resource monitoring program. 
239 

•HR 2419 EH1S 

1 ‘‘(4) CONSULTATION.—The comprehensive plan 

2 shall be developed by the Secretary in consultation 

3 with appropriate Federal and State agencies. 

4 ‘‘(c) SUBMISSION OF PLAN.— 

5 ‘‘(1) SUBMISSION.—Not later than 2 years 

6 after the date of enactment of the Farm, Nutrition, 

7 and Bioenergy Act of 2007, the Secretary shall 

8 transmit to Congress a report containing the com9 prehensive plan. 

10 ‘‘(2) ADDITIONAL STUDIES AND ANALYSES.— 

11 After submission of the report required by para12 graph (1), the Secretary shall continue to conduct 

13 such studies and analyses related to the comprehen14 sive plan as are necessary, consistent with this sub15 section. 

16 ‘‘(d) RESTORATION ENHANCEMENT AND PRESERVA17 TION PROJECTS.— 

18 ‘‘(1) PROJECT AUTHORITY.—In cooperation 

19 with appropriate Federal and State agencies, the 

20 Secretary shall carry out restoration enhancement 

21 and preservation projects for the Chesapeake Bay 

22 watershed to address the goals specified in sub23 section (b)(2). To achieve the restoration, preserva24 tion, and protection benefits of a project, the Sec25 retary shall proceed expeditiously with the imple-
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1 mentation of the project consistent with the com2 prehensive plan. 

3 ‘‘(2) CRITICAL PROJECTS.—In carrying out this 

4 subsection, the Secretary shall begin with the Sus5 quehanna River, the Shenandoah River, the Potomac 

6 River, and the Patuxent River. 

7 ‘‘(3) AVAILABILITY OF FUNDS.—Of the funds 

8 of the Commodity Credit Corporation, the Secretary 

9 shall use to carry out projects under this subsection 

10 the following amounts: 

11 ‘‘(A) $10,000,000 for fiscal year 2008. 

12 ‘‘(B) $15,000,000 for fiscal year 2009. 

13 ‘‘(C) $30,000,000 for fiscal year 2010. 

14 ‘‘(D) $40,000,000 for fiscal year 2011. 

15 ‘‘(E) $55,000,000 for fiscal year 2012. 

16 ‘‘(4) FEDERAL SHARE.—The Federal share of 

17 the cost of carrying out any individual project under 

18 this subsection shall not exceed $5,000,000. 

19 ‘‘(e) GENERAL PROVISIONS.— 

20 ‘‘(1) WATER QUALITY.—In carrying out 

21 projects and activities under this section, the Sec22 retary shall take into account the protection of water 

23 quality by considering applicable State water quality 

24 standards. 
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1 ‘‘(2) PUBLIC PARTICIPATION.—In developing 

2 the comprehensive plan under subsection (b) and 

3 carrying out projects under subsection (d), the Sec4 retary shall implement procedures to facilitate public 

5 participation, including providing advance notice of 

6 meetings, providing adequate opportunity for public 

7 input and comment, maintaining appropriate 

8 records, and making a record of the proceeding of 

9 meetings available for public inspection. 

10 ‘‘(f) COORDINATION.—The Secretary shall integrate 

11 and coordinate projects and activities carried out under 

12 this section with other Federal and State programs, 

13 projects, and activities. 

14 ‘‘(g) COST SHARING.— 

15 ‘‘(1) NON-FEDERAL SHARE.—Subject to sub16 section (d)(4), the non-Federal share of the cost of 

17 projects and activities carried out under this section 

18 shall be not less than 35 percent. 

19 ‘‘(2) OPERATION, MAINTENANCE, REHABILITA20 TION, AND REPLACEMENT.—The operation, mainte21 nance, rehabilitation, and replacement of projects 

22 carried out under this section shall be a non-Federal 

23 responsibility. 

24 ‘‘(h) SENSE OF CONGRESS REGARDING CHESAPEAKE

25 BAY EXECUTIVE COUNCIL.— 
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1 ‘‘(1) FINDINGS.—Congress finds the following: 

2 ‘‘(A) One of the stated goals of the Chesa3 peake Bay Agreement is to ‘develop, promote, 

4 and achieve sound land use practices which pro5 tect and restore watershed resources and water 

6 quality, maintain reduced pollutant loadings for 

7 the Bay and its tributaries, and restore and 

8 preserve aquatic living resources’. 

9 ‘‘(B) Department of Agriculture conserva10 tion programs are integral to the restoration of 

11 the Chesapeake Bay and achieving the water 

12 quality goals for the Chesapeake Bay program. 

13 ‘‘(2) SENSE OF CONGRESS.—In light of the 

14 findings specified in paragraph (1), it is the sense of 

15 Congress that the Secretary of Agriculture should be 

16 a member of the Chesapeake Bay Executive Council, 

17 and is authorized to do so under section 1(3) of the 

18 Soil Conservation and Domestic Allotment Act (16 

19 U.S.C. 590a(3)).’’. 

20 SEC. 2302. VOLUNTARY PUBLIC ACCESS AND HABITAT IN21 CENTIVE PROGRAM. 

22 Chapter 5 of subtitle D of title XII of the Food Secu23 rity Act of 1985 is amended by inserting after section 

24 1240Q, as added by section 2301, the following new sec25 tion: 
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1 ‘‘SEC. 1240R. VOLUNTARY PUBLIC ACCESS AND HABITAT IN2 CENTIVE PROGRAM. 

3 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab4 lish a voluntary public access program under which States 

5 and tribal governments may apply for grants to encourage 

6 owners and operators of privately-held farm, ranch, and 

7 forest land to voluntarily make that land available for ac8 cess by the public for wildlife-dependent recreation, includ9 ing hunting or fishing, under programs administered by 

10 the States and tribal governments. 

11 ‘‘(b) APPLICATIONS.—In submitting applications for 

12 a grant under the program, a State or tribal government 

13 shall describe— 

14 ‘‘(1) the benefits that the State or tribal gov15 ernment intends to achieve by encouraging public ac16 cess to private farm and ranch land for— 

17 ‘‘(A) hunting and fishing; and 

18 ‘‘(B) to the maximum extent practicable, 

19 other recreational purposes; and 

20 ‘‘(2) the methods that will be used to achieve 

21 those benefits. 

22 ‘‘(c) PRIORITY.—In approving applications and 

23 awarding grants under the program, the Secretary shall 

24 give priority to States and tribal governments that— 
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1 ‘‘(1) have consistent opening dates for migra2 tory bird hunting for both residents and non-resi3 dents; 

4 ‘‘(2) propose to maximize participation by offer5 ing a program the terms of which are likely to meet 

6 with widespread acceptance among landowners; 

7 ‘‘(3) propose to ensure that land enrolled under 

8 the State or tribal government program has appro9 priate wildlife habitat; 

10 ‘‘(4) propose to strengthen wildlife habitat im11 provement efforts on land enrolled in a special con12 servation reserve enhancement program described in 

13 1234(f)(4) by providing incentives to increase public 

14 hunting and other recreational access on that land; 

15 and 

16 ‘‘(5) propose to use additional Federal, State, 

17 tribal government, or private resources in carrying 

18 out the program. 

19 ‘‘(d) RELATIONSHIP TO OTHER LAWS.—Nothing in 

20 this section preempts a State or tribal government law, 

21 including any State or tribal government liability law. 

22 ‘‘(e) REGULATIONS.—The Secretary shall promulgate 

23 such regulations as are necessary to carry out this section. 

24 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

25 is authorized to be appropriated to the Secretary 
245 

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1 $20,000,000 for each of fiscal years 2008 through 2012 

2 to carry out this section.’’. 

3 SEC. 2303. MUCK SOILS CONSERVATION. 

4 (a) ESTABLISHMENT OF PROGRAM.—The Secretary 

5 of Agriculture shall carry out a conservation program 

6 under which the Secretary makes payments to assist own7 ers and operators of eligible land specified in subsection 

8 (b) to conserve and improve the soil, water, and wildlife 

9 resources of such land. 

10 (b) ELIGIBLE LAND.—To be eligible for inclusion in 

11 the program established under this section, the land 

12 must— 

13 (1) be comprised of soil that qualifies as muck, 

14 as determined by the Secretary; 

15 (2) be used for production of an agricultural 

16 crop; 

17 (3) have a spring cover crop planted in conjunc18 tion with the primary agricultural crop referred to in 

19 paragraph (2); 

20 (4) have a winter crop planted; and 

21 (5) have ditch banks seeded with grass that is 

22 maintained on a year-round basis. 

23 (c) PAYMENT AMOUNTS.—The Secretary may pro24 vide payments of not less than $300, but not more than 

25 $500, per acre per year under the program. 
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1 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to the Secretary to carry 

3 out the program $50,000,000 for each of fiscal years 2008 

4 through 2012. 

5 Subtitle D—Administration and 

6 Funding 

7 SEC. 2401. FUNDING OF CONSERVATION PROGRAMS UNDER 

8 FOOD SECURITY ACT OF 1985. 

9 (a) IN GENERAL.—Section 1241(a) of the Food Se10 curity Act of 1985 (16 U.S.C. 3841(a)) is amended in the 

11 matter preceding paragraph (1), by striking ‘‘2007’’ and 

12 inserting ‘‘2012’’. 

13 (b) CONSERVATION SECURITY PROGRAM.—Para14 graph (3) of section 1241(a) of the Food Security Act of 

15 1985 (16 U.S.C. 3841(a)) is amended to read as follows: 

16 ‘‘(3) The conservation security program under 

17 subchapter A of chapter 2, using, to the maximum 

18 extent practicable— 

19 ‘‘(A) in the case of conservation security 

20 contracts entered into before October 1, 2007, 

21 under such subchapter, as in effect on the day 

22 before the date of the enactment of the Farm, 

23 Nutrition, and Bioenergy Act of 2007— 

24 ‘‘(i) $1,454,000,000 for the period of 

25 fiscal years 2007 through 2012; and 
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1 ‘‘(ii) $1,927,000,000 for the period of 

2 fiscal years 2007 through 2017; and 

3 ‘‘(B) in the case of conservation security 

4 contracts entered into on or after October 1, 

5 2011, under such subchapter— 

6 ‘‘(i) $501,000,000 for fiscal year 

7 2012; and 

8 ‘‘(ii) $4,646,000,000 for the period of 

9 fiscal years 2012 through 2017.’’. 

10 (c) FARM AND RANCHLAND PROTECTION PRO11 GRAM.—Paragraph (4) of section 1241(a) of the Food Se12 curity Act of 1985 (16 U.S.C. 3841(a)) is amended to 

13 read as follows: 

14 ‘‘(4) The farm and ranchland protection pro15 gram under subchapter B of chapter 2, using, to the 

16 maximum extent practicable— 

17 ‘‘(A) $125,000,000 in fiscal year 2008; 

18 ‘‘(B) $150,000,000 in fiscal year 2009; 

19 ‘‘(C) $200,000,000 in fiscal year 2010; 

20 ‘‘(D) $240,000,000 in fiscal year 2011; 

21 and 

22 ‘‘(E) $280,000,000 in fiscal year 2012.’’. 

23 (d) ENVIRONMENTAL QUALITY INCENTIVES PRO24 GRAM.—Paragraph (6) of section 1241(a) of the Food Se-
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1 curity Act of 1985 (16 U.S.C. 3841(a)) is amended to 

2 read as follows: 

3 ‘‘(6) The environmental quality incentives pro4 gram under chapter 4, using, to the maximum ex5 tent practicable— 

6 ‘‘(A) $1,250,000,000 in fiscal year 2008; 

7 ‘‘(B) $1,600,000,000 in fiscal year 2009; 

8 ‘‘(C) $1,700,000,000 in fiscal year 2010; 

9 ‘‘(D) $1,800,000,000 in fiscal year 2011; 

10 and 

11 ‘‘(E) $2,000,000,000 in fiscal year 2012.’’. 

12 (e) WILDLIFE HABITAT INCENTIVES PROGRAM.— 

13 Paragraph (7)(D) of section 1241(a) of the Food Security 

14 Act of 1985 (16 U.S.C. 3841(a)) is amended by striking 

15 ‘‘2007’’ and inserting ‘‘2012’’. 

16 SEC. 2402. IMPROVED PROVISION OF TECHNICAL ASSIST17 ANCE UNDER CONSERVATION PROGRAMS. 

18 Section 1242 of the Food Security Act of 1985 (16 

19 U.S.C. 3842) is amended— 

20 (1) in subsection (a)— 

21 (A) by striking ‘‘or’’ at the end of para22 graph (1); and 

23 (B) by striking paragraph (2) and insert24 ing the following new paragraphs: 
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•HR 2419 EH1S 

1 ‘‘(2) through a contract with an approved third 

2 party, if available; or 

3 ‘‘(3) at the option of the producer, through a 

4 payment as determined by the Secretary, directly to 

5 an approved third party, if available, or to the pro6 ducer for an approved third party, if available.’’; 

7 (2) in subsection (b)— 

8 (A) by striking ‘‘technical assistance’’ each 

9 place it appears and inserting ‘‘technical serv10 ices’’; and 

11 (B) in paragraph (1)(B), by striking ‘‘that 

12 assistance’’ and inserting ‘‘those technical serv13 ices’’; and 

14 (3) by adding at the end the following new sub15 sections: 

16 ‘‘(c) PAYMENT AMOUNTS.— 

17 ‘‘(1) USE OF PREVAILING MARKET RATES.— 

18 The Secretary shall set the amounts of payments 

19 under subsection (b)(1)(B) for technical services at 

20 levels not less than prevailing private market rates. 

21 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

22 apply in instances where personnel of the Depart23 ment of Agriculture are immediately available to 

24 provide comparable technical services to eligible pro25 ducers. 
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1 ‘‘(d) REVIEW AND EXPEDITED APPROVAL OF TECH2 NICAL ASSISTANCE SPECIFICATIONS.— 

3 ‘‘(1) REVIEW OF EXISTING TECHNICAL ASSIST4 ANCE SPECIFICATIONS.— 

5 ‘‘(A) REVIEW OF SPECIFICATIONS.—The 

6 Secretary shall direct each State to review and 

7 ensure, to the maximum extent practicable, the 

8 completeness and relevance of technical assist9 ance specifications in effect as of the date of 

10 the enactment of the Farm, Nutrition, and Bio11 energy Act of 2007. 

12 ‘‘(B) CONSULTATION.—In conducting the 

13 assessment under subparagraph (A), a State 

14 shall consult with specialty crop producers, crop 

15 consultants, cooperative extension and land16 grant universities, nongovernmental organiza17 tions, and other qualified entities. 

18 ‘‘(C) EXPEDITED REVISION OF SPECIFICA19 TIONS.—If a State determines under subpara20 graph (A) that revisions to its technical assist21 ance specifications are necessary, the State 

22 shall establish an administrative process for ex23 pediting the revisions. 

24 ‘‘(2) ADDRESSING CONCERNS OF SPECIALTY

25 CROP PRODUCERS.— 
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1 ‘‘(A) IN GENERAL.—The Secretary shall 

2 direct each State to fully incorporate into its 

3 technical assistance specifications and provide 

4 for the appropriate range of conservation prac5 tices and resource mitigation measures available 

6 to specialty crop producers. 

7 ‘‘(B) AVAILABILITY OF ADEQUATE TECH8 NICAL ASSISTANCE.—The Secretary shall en9 sure that adequate technical assistance is avail10 able for the implementation of conservation 

11 practices by specialty crop producers through 

12 Federal conservation programs. In carrying out 

13 this requirement, the Secretary shall develop— 

14 ‘‘(i) programs that meet specific needs 

15 of specialty crop producers through cooper16 ative agreements with other agencies and 

17 nongovernmental organizations; and 

18 ‘‘(ii) program specifications that allow 

19 for innovative approaches that engage local 

20 resources in providing technical assistance 

21 for planning and implementation of con22 servation practices. 

23 ‘‘(e) NON-FEDERAL ASSISTANCE.—The Secretary 

24 may request the services of, and enter into cooperative 

25 agreements or contracts with, non-Federal entities to as-
252 

•HR 2419 EH1S 

1 sist the Secretary in providing technical assistance nec2 essary to develop and implement conservation programs 

3 under this title.’’. 

4 SEC. 2403. COOPERATIVE CONSERVATION PARTNERSHIP 

5 INITIATIVE. 

6 (a) TRANSFER OF EXISTING PROVISIONS.—Sub7 sections (b), (c), and (d) of section 1243 of the Food Secu8 rity Act of 1985 (16 U.S.C. 3843) are— 

9 (1) redesignated as subsections (c), (d), and (e), 

10 respectively; and 

11 (2) transferred to appear at the end of section 

12 1244 of such Act (16 U.S.C. 3844). 

13 (b) ESTABLISHMENT OF PARTNERSHIP INITIA14 TIVE.—Section 1243 of the Food Security Act of 1985 

15 (16 U.S.C. 3843), as amended by subsection (a), is 

16 amended to read as follows: 

17 ‘‘SEC. 1243. COOPERATIVE CONSERVATION PARTNERSHIP 

18 INITIATIVE. 

19 ‘‘(a) ESTABLISHMENT OF INITIATIVE.— 

20 ‘‘(1) ESTABLISHMENT.—The Secretary shall es21 tablish a cooperative conservation partnership initia22 tive (in this section referred to as the ‘Partnership’) 

23 within each program described in subsection (b) to 

24 address conservation issues involving production ag25 riculture on local, regional, or State levels. 
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•HR 2419 EH1S 

1 ‘‘(2) ADMINISTRATION.—The Secretary shall 

2 carry out the Partnership— 

3 ‘‘(A) by selecting proposals for grants and 

4 agreements by eligible entities described in sub5 section (c) through a competitive selection proc6 ess; 

7 ‘‘(B) by making grants to, and entering 

8 into agreements with, with eligible entities de9 scribed in subsection (c) for not less than 2 

10 years, but not more than 5 years, in duration; 

11 and 

12 ‘‘(C) by providing producers that are par13 ticipating in a special project and initiative of 

14 an eligible entity preferential enrollment into 1 

15 or more of the programs described in subsection 

16 (b). 

17 ‘‘(3) PURPOSES.—The purposes of the Partner18 ship are to carry out special projects and initia19 tives— 

20 ‘‘(A) to address conservation issues involv21 ing production agriculture on local, regional, or 

22 State levels through producers and eligible enti23 ties; 

24 ‘‘(B) to address community and economic 

25 development needs and opportunities; and 
254 

•HR 2419 EH1S 

1 ‘‘(C) to increase access to, and participa2 tion in, the programs described in subsection 

3 (b) by producers of specialty crops (as defined 

4 in section 3 of the Specialty Crops Competitive5 ness Act of 2004, Pub. L. 108–465 (7 U.S.C. 

6 1621 note). 

7 ‘‘(b) COVERED PROGRAMS.—The conservation pro8 grams covered by this section are the following: 

9 ‘‘(1) Conservation security program. 

10 ‘‘(2) Environmental quality incentives program. 

11 ‘‘(3) Wildlife habitat incentive program. 

12 ‘‘(c) ELIGIBLE PARTNERS.—Grants may be made or 

13 agreements may be entered into under this section with 

14 any of the following (or a combination thereof): 

15 ‘‘(1) States and agencies of States. 

16 ‘‘(2) Political subdivisions of States, including 

17 counties and State- or county-sponsored conserva18 tion districts. 

19 ‘‘(3) Indian tribes. 

20 ‘‘(4) Nongovernmental organizations and asso21 ciations, including producer associations, farmer co22 operatives, extension associations, and conservation 

23 organizations with a history of working cooperatively 

24 with producers to effectively address resource con-
255 

•HR 2419 EH1S 

1 cerns related to agricultural production, as deter2 mined by the Secretary. 

3 ‘‘(5) A combination of partners specified in a 

4 preceding paragraph. 

5 ‘‘(d) APPLICATIONS.— 

6 ‘‘(1) COMPETITIVE PROCESS.—The Secretary 

7 shall establish a competitive process for considering 

8 applications for grants or agreements under this sec9 tion consistent with the evaluation criteria listed in 

10 subsection (e). 

11 ‘‘(2) PROGRAM ALLOCATION.—Applications 

12 shall include— 

13 ‘‘(A) specification of the amount of fund14 ing or acres, or both, of 1 or more covered pro15 grams specified in subsection (b) proposed to be 

16 allocated to carry out the special project or ini17 tiative; and 

18 ‘‘(B) a schedule for utilization of funding 

19 or acres over the life of the proposed project or 

20 initiative. 

21 ‘‘(e) EVALUATION CRITERIA.—In evaluating applica22 tions for grants or agreements under this section the Sec23 retary shall consider the extent to which— 

24 ‘‘(1) preferential enrollment in the covered pro25 grams specified in the application will effectively ad-
256 

•HR 2419 EH1S 

1 dress the environmental objectives established for 

2 the special project or initiative; and 

3 ‘‘(2) the special project or initiative covered by 

4 the application— 

5 ‘‘(A) enjoys local and regional support 

6 from producers and other interested persons, 

7 including governmental and nongovernmental 

8 organizations with appropriate expertise on the 

9 issues the project or initiative seeks to address; 

10 ‘‘(B) includes clear environmental objec11 tives; 

12 ‘‘(C) includes a well defined project or ini13 tiative plan that identifies sensitive areas re14 quiring treatment and prioritizes conservation 

15 practices and activities needed to achieve envi16 ronmental objectives; 

17 ‘‘(D) promises adequate and coordinated 

18 participation to achieve the objectives of the 

19 project or initiative; 

20 ‘‘(E) coordinates integration of local, 

21 State, and Federal efforts to make the best use 

22 of available resources and maximize cost-effec23 tive investments; 

24 ‘‘(F) leverages financial and technical re25 sources from sources other than the programs 
257 

•HR 2419 EH1S 

1 authorized by this subtitle, including financial 

2 and technical resources provided by Federal 

3 and State agencies, local governments, non4 governmental organizations and associations, 

5 and other private sector entities; 

6 ‘‘(G) describes how all necessary technical 

7 assistance will be provided to each producer 

8 participating in the project or initiative, includ9 ing cost estimates for technical assistance and 

10 whether such assistance will be provided by 

11 technical service providers; 

12 ‘‘(H) describes how the administrative 

13 costs of the project or initiative will be mini14 mized; 

15 ‘‘(I) addresses a local, State, regional, or 

16 national environmental priority or priorities, 

17 with particular emphasis on any priority for 

18 which there is an existing State or federally ap19 proved plan in place for addressing that pri20 ority; 

21 ‘‘(J) includes a plan to evaluate progress, 

22 measure results, and meet the purposes of the 

23 agreement; 

24 ‘‘(K) clearly demonstrates that enrollment 

25 of producers in covered programs will be con-
258 

•HR 2419 EH1S 

1 sistent with the purposes and policies of each 

2 individual program, as established in statute, 

3 rules and regulations, and program guidance 

4 promulgated by implementing agencies; 

5 ‘‘(L) links resource and environmental ob6 jectives with community development or 

7 agritourism objectives that can be improved as 

8 a result of addressing the resources of concern; 

9 ‘‘(M) demonstrates innovation in linking 

10 environmental and community development ob11 jectives; and 

12 ‘‘(N) addresses the needs of beginning 

13 farmers and ranchers, socially disadvantaged 

14 farmers and ranchers, and limited resource 

15 farmers and ranchers. 

16 ‘‘(f) PRIORITIES.—To the maximum extent prac17 ticable, consistent with the requirements of subsection (d), 

18 the Secretary shall ensure that, each fiscal year, grants 

19 are awarded and agreements are entered into under this 

20 section to support projects and initiatives that collectively 

21 address the resource concerns facing producers, ranchers, 

22 and nonindustrial private forest landowners, including 

23 specifically projects and initiatives that are designed— 

24 ‘‘(1) to achieve improvements in water quality 

25 in watersheds impacted by agriculture, particularly 
259 

•HR 2419 EH1S 

1 by increasing the participation of producers in im2 plementing best management practices in a water3 shed or developing environmentally and economically 

4 viable alternative uses for manure and litter; 

5 ‘‘(2) to achieve improvements in air quality in 

6 a geographical area where agricultural operations 

7 impact air quality; 

8 ‘‘(3) to support State activities to efficiently 

9 manage and utilize their water resources in regions, 

10 States or local areas where water quantity is a con11 cern; 

12 ‘‘(4) to assist in carrying out a State Wildlife 

13 Habitat Incentives Program plan or other State, re14 gional, or national conservation initiative. 

15 ‘‘(5) to control invasive species on rangeland or 

16 other agricultural land through the cooperative ef17 forts of multiple producers in a geographical area; 

18 ‘‘(6) to address a specific resource of concern or 

19 set of concerns on private, non-industrial forest land; 

20 ‘‘(7) to reduce losses of pesticides to the envi21 ronment by engaging multiple producers in a geo22 graphic area in adoption of integrated pest manage23 ment practices and approaches; 
260 

•HR 2419 EH1S 

1 ‘‘(8) to protect farmland and ranch land facing 

2 development pressures from being converted to non3 agricultural use; or 

4 ‘‘(9) to assist producers in carrying out good 

5 management practices to enhance food safety. 

6 ‘‘(g) DUTIES OF PARTNERS.—Eligible partners 

7 shall— 

8 ‘‘(1) identify conservation issues affecting pro9 duction agriculture on local, regional, or State levels 

10 that could be addressed through special projects and 

11 initiatives; 

12 ‘‘(2) enter into agreements or obtain grants 

13 from the Secretary to carry out special projects and 

14 initiatives; 

15 ‘‘(3) identify through outreach efforts producers 

16 that can participate in the special project or initia17 tive of the eligible entity if the producer is otherwise 

18 eligible to be enrolled, as determined by the Sec19 retary, or has already enrolled, in the applicable pro20 gram described in subsection (b); and 

21 ‘‘(4) carry out the special project and initiative. 

22 ‘‘(h) DUTIES OF THE SECRETARY.— 

23 ‘‘(1) ADDITIONAL DUTIES.—In addition to the 

24 normal administration of the programs described in 

25 subsection (b), the Secretary shall be responsible for 
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•HR 2419 EH1S 

1 basic administrative and oversight functions relating 

2 to the special projects and initiatives, including— 

3 ‘‘(A) rules and procedures relating to con4 servation standards and specifications; 

5 ‘‘(B) conservation compliance; 

6 ‘‘(C) appeals; 

7 ‘‘(D) adjusted gross income limitations; 

8 ‘‘(E) direct attribution; and 

9 ‘‘(F) such other similar functions as the 

10 Secretary might designate. 

11 ‘‘(2) FLEXIBILITY.—The Secretary may adjust 

12 eligibility criteria, approved practices, practice stand13 ards, innovative conservation practices, and other 

14 elements of the programs described in subsection (b) 

15 to better reflect unique local circumstances and pur16 poses if the Secretary determines such adjustments 

17 would— 

18 ‘‘(A) improve environmental enhancement 

19 and long-term sustainability of the natural re20 source base; and 

21 ‘‘(B) be consistent with the purposes of the 

22 program and the special project and initiative. 

23 ‘‘(3) PREFERENTIAL ENROLLMENT.—Subject to 

24 the limitations under subsection (j), the Secretary 
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•HR 2419 EH1S 

1 shall provide preferential enrollment to producers 

2 that are eligible— 

3 ‘‘(A) for the applicable program described 

4 in subsection (b); and 

5 ‘‘(B) to participate in the special project 

6 and initiative of an eligible partner. 

7 ‘‘(i) COST SHARE.—The Secretary shall not require 

8 more than 25 percent of the cost of a project or initiative 

9 supported under a grant or agreement entered into under 

10 this section to come from non-Federal sources. However, 

11 the Secretary may give higher priority to projects or initia12 tives offering to cover a higher percentage of the cost of 

13 the project or initiative from non-Federal sources. 

14 ‘‘(j) INCENTIVE AND BONUS PAYMENTS.— 

15 ‘‘(1) AVAILABILITY.—Applications submitted 

16 under subsection (d)(2) may include proposals for 

17 special incentive and bonus payments, consistent 

18 with the statutory purposes of the programs in19 volved, to producers that— 

20 ‘‘(A) restore land, water, or habitat as a 

21 community development asset; or 

22 ‘‘(B) provide public access to enrolled land. 

23 ‘‘(2) CRITERIA.—The Secretary shall develop 

24 and publish criteria for providing special incentive or 

25 bonus payments to producers under paragraph (1). 
263 

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1 ‘‘(k) FUNDING.— 

2 ‘‘(1) SET-ASIDE.—Of the funds provided for 

3 each of fiscal years 2008 through 2012 to implement 

4 the programs specified in subsection (b), the Sec5 retary shall reserve 10 percent to ensure an ade6 quate source of funds for grants, agreements, finan7 cial assistance to producers under this section. 

8 ‘‘(2) ALLOCATION TO STATES.—The Secretary 

9 shall allocate to States 90 percent of the funds re10 served under paragraph (1) for a fiscal year to allow 

11 State Conservationists, with the advice of State tech12 nical committees, to select projects and initiatives 

13 for funding under this section at the State level. The 

14 Secretary shall develop criteria for this allocation 

15 made on a similar basis as to the program priorities 

16 under subsection (f). 

17 ‘‘(3) UNUSED FUNDING.—Any funds reserved 

18 for a fiscal year under paragraph (1) that are not 

19 obligated by April 1 of that fiscal year may be used 

20 to carry out other activities under conservation pro21 grams under subtitle D during the remainder of that 

22 fiscal year. 

23 ‘‘(4) ADMINISTRATIVE COSTS FUNDING CAP.— 

24 Of the funds made available under this section for 

25 a particular project or initiative, not more than 5 
264 

•HR 2419 EH1S 

1 percent may be expended by the eligible entity on 

2 the administrative costs of the project or initiative.’’. 

3 SEC. 2404. REGIONAL EQUITY AND FLEXIBILITY. 

4 Section 1241(d) of the Food Security Act of 1985 

5 (16 U.S.C. 3841(d)) is amended by striking 

6 ‘‘$12,000,000’’ and inserting ‘‘$15,000,000’’. 

7 SEC. 2405. ADMINISTRATIVE REQUIREMENTS FOR CON8 SERVATION PROGRAMS. 

9 (a) INCENTIVES FOR CERTAIN PRODUCERS.—Section 

10 1244(a) of the Food Security Act of 1985 (16 U.S.C. 

11 3844(a)) is amended— 

12 (1) in the subsection heading, by striking ‘‘BE13 GINNING’’ and inserting ‘‘INCENTIVES FOR CER14 TAIN’’; 

15 (2) by inserting ‘‘, socially disadvantaged farm16 ers and ranchers, limited resource farmers and 

17 ranchers,’’ after ‘‘beginning farmers and ranchers’’; 

18 and 

19 (3) by striking ‘‘and limited resource agricul20 tural producers’’. 

21 (b) SINGLE, SIMPLIFIED APPLICATION PROCESS FOR

22 CONSERVATION PROGRAMS.—Section 1244 of the Food 

23 Security Act of 1985 (16 U.S.C. 3844), as amended by 

24 section 2403, is amended by adding at the end the fol25 lowing new subsection: 
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1 ‘‘(f) SINGLE, SIMPLIFIED APPLICATION PROCESS.— 

2 ‘‘(1) ESTABLISHMENT.—In carrying out any of 

3 the conservation programs under this title adminis4 tered by the Natural Resources Conservation Serv5 ice, the Secretary shall establish and make available 

6 to producers and landowners a single, simplified ap7 plication process to be used by producers and land8 owners in initially requesting assistance under such 

9 programs. The Secretary shall ensure that— 

10 ‘‘(A) conservation program applicants are 

11 not required to provide information that dupli12 cates information and resources already avail13 able to the Secretary regarding that applicant 

14 and for that specific operation; and 

15 ‘‘(B) the application process is streamlined 

16 to minimize complexity and redundancy. 

17 ‘‘(2) REVIEW OF APPLICATION PROCESS.—The 

18 Secretary shall review the conservation application 

19 process and the forms and related mechanisms used 

20 to receive assistance requests from producers and 

21 landowners. The purpose of the review shall be to 

22 determine what information the applicant is actually 

23 required to submit during the application process, 

24 including— 
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1 ‘‘(A) identification information for the ap2 plicant; 

3 ‘‘(B) identification and location informa4 tion for the land parcel or tract of concern; 

5 ‘‘(C) a general statement of the applicant’s 

6 resource concern or concerns for the land parcel 

7 or tract; and 

8 ‘‘(D) the minimum amount of other infor9 mation the Secretary considers essential for the 

10 applicant to provide. 

11 ‘‘(3) REVISION AND STREAMLINING.—The Sec12 retary shall carry out a revision of the application 

13 forms and processes for conservation programs cov14 ered in this subsection to enable utilization of infor15 mation technology as an avenue to incorporate ap16 propriate data and information concerning the con17 servation needs and solutions appropriate for the 

18 land area identified by the applicant. The revision 

19 shall seek to streamline the application process to 

20 minimize the burden placed on the applicant. 

21 ‘‘(4) CONSERVATION PROGRAM APPLICATION.— 

22 When the needs of an applicant are adequately as23 sessed by the Secretary, directly or through a third24 party provider under section 1242, in order to deter25 mine the conservation programs under this title that 
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1 best match the needs of the applicant, with the ap2 proval of the applicant, the Secretary may convert 

3 the initial application into a specific application for 

4 assistance for a specific program. To the maximum 

5 extent practical, the specific application for con6 servation program assistance shall be carried out by 

7 the Secretary by requesting only that specific further 

8 information from the applicant that is not already 

9 available to the Secretary. 

10 ‘‘(5) IMPLEMENTATION AND NOTIFICATION.— 

11 Not later than one year after the date of the enact12 ment of the Farm, Nutrition, and Bioenergy Act of 

13 2007, the Secretary shall complete the requirements 

14 of this subsection and shall submit to Congress a 

15 written notification of such completion.’’. 

16 SEC. 2406. ANNUAL REPORT ON PARTICIPATION BY SPE17 CIALTY CROP PRODUCERS IN CONSERVA18 TION PROGRAMS. 

19 (a) REPORT REQUIRED.—Subtitle F of title XII of 

20 the Food Security Act of 1985 is amended by inserting 

21 after section 1251 (16 U.S.C. 2005a) the following new 

22 section: 
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1 ‘‘SEC. 1252. ANNUAL REPORT ON PARTICIPATION BY SPE2 CIALTY CROP PRODUCERS IN CONSERVA3 TION PROGRAMS. 

4 ‘‘(a) REPORT REQUIRED.—The Secretary of Agri5 culture shall submit to the Committee on Agriculture of 

6 the House of Representatives and the Committee on Agri7 culture, Nutrition, and Forestry of the Senate an annual 

8 report that— 

9 ‘‘(1) documents and analyzes the participation 

10 by producers of specialty crops in conservation pro11 grams under subtitle D, including the conservation 

12 security program and the environmental quality in13 centives program; 

14 ‘‘(2) tracks such participation by crop and live15 stock type; and 

16 ‘‘(3) describes the results of implementing the 

17 plan required by subsection (b), as well as any modi18 fications to the plan that the Secretary finds nec19 essary to increase its effectiveness. 

20 ‘‘(b) ACCESS PLAN.—As part of each report sub21 mitted under subsection (a), the Secretary shall set forth 

22 a plan to improve the access of producers of specialty 

23 crops to, and their participation in, conservation programs 

24 under subtitle D. In developing the plan, the Secretary 

25 shall consult with organizations representing producers of 

26 specialty crops. 
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1 ‘‘(c) SPECIALTY CROP DEFINED.—In this section, 

2 the term ‘specialty crop’ has the meaning given such term 

3 by section 3(1) of the Specialty Crops Competitiveness Act 

4 of 2004 (Public Law 108–465; 7 U.S.C. 1621 note).’’. 

5 (b) INITIAL REPORT.—The first report required 

6 under section 1252 of the Food Security Act of 1985, as 

7 added by subsection (a), shall be submitted not later than 

8 180 days after the date of the enactment of this Act. Sub9 section (a)(2) of such section shall not apply with respect 

10 to the first report. 

11 SEC. 2407. PROMOTION OF MARKET-BASED APPROACHES 

12 TO CONSERVATION. 

13 (a) FINDINGS.—Congress finds the following: 

14 (1) Many of the conservation and environmental 

15 benefits produced on farms, ranches, and private 

16 forest lands in the United States do not have an as17 signed value in the market place or lack a private 

18 market altogether. 

19 (2) While private markets for environmental 

20 goods and services are emerging, their viability has 

21 been hampered by several barriers. 

22 (3) The Federal Government can help overcome 

23 these barriers and promote the establishment of 

24 markets for agricultural and forestry conservation 

25 activities. 
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1 (4) Generating substantial private-sector de2 mand for environmental goods and services hinges 

3 on the ability to use environmental credits generated 

4 by agricultural and forest conservation activities. 

5 (b) MARKET-BASED APPROACHES.—Subtitle E of 

6 title XII of the Food Security Act of 1985 is amended 

7 by inserting after section 1244 (16 U.S.C. 3844) the fol8 lowing new section: 

9 ‘‘SEC. 1245. MARKET-BASED APPROACHES TO CONSERVA10 TION. 

11 ‘‘(a) IMPLEMENTATION.—To facilitate the develop12 ment and effective operation of private sector market13 based approaches for environmental goods and services 

14 produced by farmers, ranchers, and owners of private for15 est land, the Secretary may conduct research and analysis, 

16 enter into contracts and cooperative agreements, and 

17 award grants for the purpose of— 

18 ‘‘(1) promoting the development of consistent 

19 standards and processes for quantifying environ20 mental benefits, including the creation of perform21 ance standards or baselines; 

22 ‘‘(2) promoting the establishment of reporting 

23 and credit registries, including third-party 

24 verification and certification; and 
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1 ‘‘(3) promoting actions that facilitate the devel2 opment and functioning of private-sector market3 based approaches for environmental goods and serv4 ices involving agriculture and forestry. 

5 ‘‘(b) ENVIRONMENTAL SERVICES STANDARDS

6 BOARD.— 

7 ‘‘(1) ESTABLISHMENT.—There is to be estab8 lished an Environmental Services Standards Board 

9 to develop consistent performance standards for 

10 quantifying environmental services from land man11 agement and agricultural activities in order to facili12 tate the development of credit markets for conserva13 tion and land management activities that are agri14 culture or forest based. 

15 ‘‘(2) CHAIRPERSON.—The Secretary of Agri16 culture shall serve as chair of the Environmental 

17 Services Standards Board. 

18 ‘‘(3) MEMBERSHIP.—The Environmental Serv19 ices Standards Board shall be comprised of the Sec20 retary of Agriculture, the Secretary of the Interior, 

21 the Secretary of Energy, the Secretary of Com22 merce, the Secretary of Transportation, the Admin23 istrator of the Environmental Protection Agency, the 

24 Commander of the Army Corps of Engineers, and 
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1 such other representatives as determined by the 

2 President. 

3 ‘‘(4) SUBCOMMITTEES.—The Environmental 

4 Services Standards Board may form subcommittees 

5 to address specific issues. 

6 ‘‘(c) DISSEMINATION OF PERFORMANCE STAND7 ARDS.—Federal agencies are authorized to adopt perform8 ance standards developed by the Environmental Services 

9 Standards Board for quantifying environmental services 

10 that establish credits to meet requirements of environ11 mental and conservation programs. 

12 ‘‘(d) FUNDING .—There is authorized to be appro13 priated $50,000,000 to carry out this section. Amounts 

14 so appropriated shall remain available until expended. 

15 ‘‘(e) DEFINITIONS.—In this section: 

16 ‘‘(1) BASELINE.—The term ‘baseline’ means a 

17 level of effort or performance that is expected to be 

18 met before an entity can generate marketable cred19 its. 

20 ‘‘(2) PERFORMANCE STANDARD.—The term 

21 ‘performance standard’ means a defined level of en22 vironmental performance, expressed as a narrative 

23 or measurable number, which specifies the minimum 

24 acceptable environmental performance of an oper25 ation or practice.’’. 
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1 SEC. 2408. ESTABLISHMENT OF STATE TECHNICAL COM2 MITTEES AND THEIR RESPONSIBILITIES. 

3 Subtitle G of title XII of the Farm Security Act of 

4 1985 (16 U.S.C. 3861, 3862) is amended to read as fol5 lows: 

6 ‘‘Subtitle G—State Technical 

7 Committees 

8 ‘‘SEC. 1261. ESTABLISHMENT OF STATE TECHNICAL COM9 MITTEES. 

10 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab11 lish a technical committee in each State to assist the Sec12 retary in the considerations relating to implementation 

13 and technical aspects of the conservation programs under 

14 this title. 

15 ‘‘(b) COMPOSITION.—Each State technical committee 

16 shall be composed of agricultural producers and other pro17 fessionals that represent a variety of disciplines in the soil, 

18 water, wetland, and wildlife sciences. The technical com19 mittee for a State shall include representatives from 

20 among the following: 

21 ‘‘(1) The Natural Resources Conservation Serv22 ice. 

23 ‘‘(2) The Farm Service Agency. 

24 ‘‘(3) The Forest Service. 

25 ‘‘(4) The Cooperative State Research, Edu26 cation, and Extension Service. 
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1 ‘‘(5) The State fish and wildlife agency. 

2 ‘‘(6) The State forester or equivalent State offi3 cial. 

4 ‘‘(7) The State water resources agency. 

5 ‘‘(8) The State department of agriculture. 

6 ‘‘(9) The State association of soil and water 

7 conservation districts. 

8 ‘‘(10) At least 12 agricultural producers rep9 resenting the variety of crops and livestock or poul10 try grown within the State. 

11 ‘‘(11) Nonprofit organizations within the mean12 ing of section 501(c)(3) of the Internal Revenue 

13 Code of 1986 with demonstrable conservation exper14 tise and experience working with agriculture pro15 ducers in the State. 

16 ‘‘(12) Agribusiness. 

17 ‘‘(c) SUBCOMMITTEES.—A State technical committee 

18 shall convene one or more subcommittees to provide tech19 nical guidance and implementation recommendations. The 

20 topics that a subcommittee shall address shall include, at 

21 a minimum, the following: 

22 ‘‘(1) Establishing priorities and criteria for 

23 State initiatives under the programs in this title, in24 cluding the review of whether local working groups 

25 are addressing those priorities. 
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1 ‘‘(2) Issues related to private forestlands pro2 tection and enhancement. 

3 ‘‘(3) Issues related to water quality and water 

4 quantity. 

5 ‘‘(4) In those States where applicable, issues re6 lated to air quality. 

7 ‘‘(5) Issues related to wildlife habitat, including 

8 the protection of nesting wildlife. 

9 ‘‘(6) Issues related to wetland protection, res10 toration, and mitigation requirements. 

11 ‘‘(7) Other issues as the Secretary determines 

12 would be useful. 

13 ‘‘SEC. 1262. RESPONSIBILITIES. 

14 ‘‘(a) IN GENERAL.—Each State technical committee 

15 established under section 1261 shall meet regularly to pro16 vide information, analysis, and recommendations to appro17 priate officials of the Department of Agriculture who are 

18 charged with implementing the conservation provisions of 

19 this title. 

20 ‘‘(b) PUBLIC NOTICE AND ATTENDANCE.—Each 

21 State technical committee shall provide public notice of, 

22 and permit public attendance at, meetings considering 

23 issues of concern related to carrying out this title. 

24 ‘‘(c) ADVISORY ROLE.—The role of a State technical 

25 committee is advisory in nature, and the committee shall 
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1 have no implementation or enforcement authority. How2 ever, the Secretary shall give strong consideration to the 

3 recommendations of the committee in administering the 

4 programs under this title. 

5 ‘‘(d) FACA REQUIREMENTS.—Except as provided in 

6 subsection (b), a State technical committee, including any 

7 subcommittee of State technical committee, is exempt 

8 from the Federal Advisory Committee Act (5 U.S.C. 

9 App.).’’. 

10 SEC. 2409. PAYMENT LIMITATIONS. 

11 (a) IN GENERAL.—The Food Security Act of 1985 

12 is amended by inserting after section 1245, as added by 

13 section 2407, the following new section: 

14 ‘‘SEC. 1246. PAYMENT LIMITATIONS. 

15 ‘‘(a) PAYMENTS FOR CONSERVATION PRACTICES.— 

16 The total amount of payments that a person or a legal 

17 entity (except a joint venture or a general partnership) 

18 may receive, directly or indirectly, in any fiscal year shall 

19 not exceed— 

20 ‘‘(1) $60,000 from any single program under 

21 this title or as agricultural management assistance 

22 under section 524(b) of the Federal Crop Insurance 

23 Act (7 U.S.C. 524(b)); or 

24 ‘‘(2) $125,000 from more than one program 

25 under this title and as agricultural management as-
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1 sistance under section 524(b) of the Federal Crop 

2 Insurance Act. 

3 ‘‘(b) EXCEPTIONS.—The limitations under subsection 

4 (a) shall not apply with respect to the following: 

5 ‘‘(1) The wetlands reserve program under sub6 chapter C of chapter 1 of subtitle D. 

7 ‘‘(2) The farm and ranchland protection pro8 gram under subchapter B of chapter 2 of such sub9 title. 

10 ‘‘(3) The grassland reserve program under sub11 chapter C of chapter 2 of such subtitle. 

12 ‘‘(c) DIRECT ATTRIBUTION.— 

13 ‘‘(1) IN GENERAL.—In implementing the pay14 ment limitations in subsection (a), the Secretary 

15 shall issue such regulations as are necessary to en16 sure that the total amount of payments are attrib17 uted to a person by taking into account the direct 

18 and indirect ownership interests of the person in a 

19 legal entity that is eligible to receive such payments. 

20 ‘‘(2) PAYMENTS TO A PERSON.—Every payment 

21 made directly to a person shall be combined with the 

22 person’s pro rata interest in payments received by a 

23 legal entity in which the person has a direct or indi24 rect ownership interest. 

25 ‘‘(3) PAYMENTS TO A LEGAL ENTITY.— 
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1 ‘‘(A) IN GENERAL.—Every payment made 

2 to a legal entity shall be attributed to those per3 sons who have a direct or indirect ownership in4 terest in the legal entity. 

5 ‘‘(B) ATTRIBUTION OF PAYMENTS.— 

6 ‘‘(i) PAYMENT LIMITS.—Except as 

7 provided in clause (ii), payments made to 

8 a legal entity shall not exceed the amounts 

9 specified in subsection (a). 

10 ‘‘(ii) EXCEPTION.—Payments made to 

11 a joint venture or a general partnership 

12 shall not exceed, for each payment speci13 fied in subsection (a), the amount deter14 mined by multiplying the maximum pay15 ment amount specified in subsection (a) by 

16 the number of persons and legal entities 

17 (other than joint ventures and general 

18 partnerships) that comprise the ownership 

19 of the joint venture or general partner20 ship.’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) EXISTING PAYMENT LIMITATIONS IN CON23 SERVATION PROGRAMS.—Title XII of the Food Se24 curity Act of 1985 is amended— 
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1 (A) in section 1234 (16 U.S.C. 3834) by 

2 striking subsection (f); 

3 (B) in section 1238C (16 U.S.C. 3838c), 

4 as amended by section 2103, by striking sub5 sections (d) and (e); and 

6 (C) by striking section 1240G (16 U.S.C. 

7 3839aa–7). 

8 (2) AGRICULTURAL MANAGEMENT ASSIST9 ANCE.—Section 524(b) of the Federal Crop Insur10 ance Act (7 U.S.C. 524) is amended by striking 

11 paragraph (3). 

12 Subtitle E—Miscellaneous 

13 Provisions 

14 SEC. 2501. INCLUSION OF INCOME FROM AFFILIATED 

15 PACKING AND HANDLING OPERATIONS AS IN16 COME DERIVED FROM FARMING FOR APPLI17 CATION OF ADJUSTED GROSS INCOME LIMI18 TATION ON ELIGIBILITY FOR CONSERVATION 

19 PROGRAMS. 

20 Section 1001D(b)(1) of the Food Security Act of 

21 1985 (7 U.S.C. 1308–3a(b)(1)) is amended by inserting 

22 ‘‘(including, for purposes of paragraph (2)(C), affiliated 

23 packing and handling operations)’’ after ‘‘derived from 

24 farming’’. 
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1 SEC. 2502. ENCOURAGEMENT OF VOLUNTARY SUSTAIN2 ABILITY PRACTICES GUIDELINES. 

3 In administering this title and the amendments made 

4 by this title, the Secretary of Agriculture may encourage 

5 the development of voluntary sustainable practices guide6 lines for producers and processors of specialty crops. 

7 SEC. 2503. FARMLAND RESOURCE INFORMATION. 

8 (a) DEVELOPMENT AND DISSEMINATION OF FARM9 LAND RESOURCE INFORMATION.—The Secretary of Agri10 culture shall design and implement educational programs 

11 and materials emphasizing the importance of productive 

12 farmland to the Nation’s well-being and distribute edu13 cational materials through communications media, 

14 schools, groups, and other Federal agencies. The Sec15 retary shall carry out this subsection through existing 

16 agencies or interagency groups and in cooperation with 

17 nonprofit organizations and the cooperative extension 

18 services of States. 

19 (b) FARMLAND INFORMATION CENTERS.—The Sec20 retary shall designate 1 or more farmland information 

21 centers to provide technical assistance and serve as central 

22 depositories and distribution points for information on 

23 farmland issues. Information provided by a center shall 

24 include online access to data on land cover and use 

25 changes and trends and literature, laws, historical ar26 chives, policies, programs, and innovative actions or pro-
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1 posals by local and State governments or nonprofit organi2 zations related to farmland protection. 

3 (c) FUNDING.—Funds for the farmland information 

4 centers designated under subsection (b) shall be provided 

5 using funds made available for the farm and ranchland 

6 protection program established under subchapter B of 

7 chapter 2 of subtitle D of title XII of the Food Security 

8 Act of 1985 (16 U.S.C. 3838h et seq.). Such funding for 

9 a fiscal year shall not exceed one-half of 1 percent of the 

10 funds made available for the farm and ranchland protec11 tion program for that fiscal year, but no less than 

12 $400,000 annually. 

13 (d) MATCHING FUNDS.—Federal funding for a farm14 land information center designated under subsection (b) 

15 shall be matched with non-Federal funds, through cash 

16 or in-kind contributions. 

17 SEC. 2504. PILOT PROGRAM FOR FOUR-YEAR CROP ROTA18 TION FOR PEANUTS. 

19 (a) CONTRACT AUTHORITY.—The Secretary of Agri20 culture shall enter into a contract with a peanut producer 

21 under which the producer will implement a four-year crop 

22 rotation for peanuts. 

23 (b) CONTRACT PAYMENTS.—Under the contract, the 

24 Secretary shall pay to the producer a contract implemen-
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1 tation payment, in an amount determined to be appro2 priate by the Secretary. 

3 (c) FUNDING.—For each of fiscal years 2008 through 

4 2012, the Secretary shall use the funds, facilities, and au5 thorities of the Commodity Credit Corporation to carry 

6 out the provisions under this section, except that funding 

7 of the pilot program may not exceed $10,000,000 in each 

8 of such fiscal years. 

9 TITLE III—TRADE 

Sec. 3001. Agricultural Trade Development and Assistance Act of 1954. 

Sec. 3002. Export credit guarantee program. 

Sec. 3003. Market access program. 

Sec. 3004. Food for Progress Act of 1985. 

Sec. 3005. Reauthorization of McGovern-Dole International Food for Education 

and Child Nutrition Program. 

Sec. 3006. Bill Emerson Humanitarian Trust. 

Sec. 3007. Technical assistance for specialty crops. 

Sec. 3008. Technical assistance for the resolution of trade disputes. 

Sec. 3009. Representation by the United States at international standard-setting bodies. 

Sec. 3010. Foreign market development cooperator program. 

Sec. 3011. Emerging markets. 

Sec. 3012. Export Enhancement Program. 

Sec. 3013. Minimum level of nonemergency food assistance. 

Sec. 3014. Germplasm conservation. 

Sec. 3015. Report on efforts to improve procurement planning. 

Sec. 3016. International disaster assistance under the Foreign Assistance Act 

of 1961. 

10 SEC. 3001. AGRICULTURAL TRADE DEVELOPMENT AND AS11 SISTANCE ACT OF 1954. 

12 (a) PURPOSE OF PROGRAM.—Section 201 of the Ag13 ricultural Trade Development and Assistance Act of 1954 

14 (7 U.S.C. 1721) is amended so that paragraph (1) reads 

15 as follows: 
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1 ‘‘(1) address famine and food crises and re2 spond to emergency food needs arising from man3 made disasters, and natural disasters.’’. 

4 (b) SUPPORT FOR ELIGIBLE ORGANIZATIONS.—Sec5 tion 202(e)(1) of the Agricultural Trade Development and 

6 Assistance Act of 1954 (7 U.S.C. 1722(e)(1)) is amend7 ed— 

8 (1) by striking ‘‘not less than 5 percent nor 

9 more than 10 percent of the funds’’ and inserting 

10 ‘‘not less than 7 percent nor more than 12 percent 

11 of the funds’’; 

12 (2) striking ‘‘and’’ at the end of subparagraph 

13 (A); 

14 (3) striking the period at the end of subpara15 graph (B) and inserting ‘‘; and’’; and 

16 (4) inserting after subparagraph (B) the fol17 lowing: 

18 ‘‘(C) developing, implementing and improv19 ing monitoring systems of programs receiving 

20 funds under this title.’’. 

21 (c) GENERATION AND USE OF CURRENCIES BY PRI22 VATE VOLUNTARY ORGANIZATIONS AND COOPERA23 TIVES.— Subsection (b) of section 203 of the Agricultural 

24 Trade Development and Assistance Act of 1954 (7 U.S.C. 
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1 1723) is amended by striking ‘‘1 or more recipient coun2 tries’’ and inserting ‘‘in 1 or more recipient countries’’. 

3 (d) LEVELS OF ASSISTANCE.—Section 204(a) of the 

4 Agricultural Trade Development and Assistance Act of 

5 1954 (7 U.S.C. 1724(a)) is amended— 

6 (1) in paragraph (1) by striking ‘‘2002 through 

7 2007’’ and inserting ‘‘2008 through 2012’’; and 

8 (2) in paragraph (2) by striking ‘‘2002 through 

9 2007’’ and inserting ‘‘2008 through 2012’’. 

10 (e) FOOD AID CONSULTATIVE GROUP.— 

11 (1) REPORT TO CONGRESS.—Section 205 of the 

12 Agricultural Trade Development and Assistance Act 

13 of 1954 (7 U.S.C. 1725) is amended— 

14 (A) by redesignating subsection (f) as sub15 section (g); and 

16 (B) by inserting after subsection (e) the 

17 following new subsection: 

18 ‘‘(f) REPORT TO CONGRESS.— 

19 ‘‘(1) IN GENERAL.—Not later than 180 days 

20 after the date of the enactment of the Farm, Nutri21 tion, and Bioenergy Act of 2007, and annually 

22 thereafter until December 31, 2012, the Adminis23 trator of the United States Agency for International 

24 Development, in close consultation with the Group, 

25 shall submit to the appropriate congressional com-
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1 mittees a report on efforts taken by the United 

2 States Agency for International Development and 

3 the Department of Agriculture to develop a strategy 

4 under this section to achieve an integrated and effec5 tive food assistance program. 

6 ‘‘(2) APPROPRIATE CONGRESSIONAL COMMIT7 TEES DEFINED.—In this subsection, the term ‘ap8 propriate congressional committees’ means— 

9 ‘‘(A) the Committee on Foreign Affairs 

10 and the Committee on Agriculture of the House 

11 of Representatives; and 

12 ‘‘(B) the Committee on Agriculture, Nutri13 tion, and Forestry of the Senate.’’. 

14 (2) TERMINATION.—Such section is further 

15 amended in subsection (g) (as redesignated by para16 graph (1)(A)) by striking ‘‘2007’’ and inserting 

17 ‘‘2012’’. 

18 (f) DENIAL OF PROPOSALS.—Paragraph (3) of sec19 tion 207(a) of the Agricultural Trade Development and 

20 Assistance Act of 1954 (7 U.S.C. 1726a(a)) is amended 

21 to read as follows: 

22 ‘‘(3) DENIAL.—If a proposal under paragraph 

23 (1) is denied, the response shall specify the reasons 

24 for denial.’’. 
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1 (g) PROGRAM OVERSIGHT, MONITORING, AND EVAL2 UATION.—Section 207 of the Agricultural Trade Develop3 ment and Assistance Act of 1954 (7 U.S.C. 1726a) is 

4 amended by adding at the end the following: 

5 ‘‘(f) PROGRAM OVERSIGHT, MONITORING, AND EVAL6 UATION.— 

7 ‘‘(1) IN GENERAL.—The Administrator, in con8 sultation with the Secretary, shall establish systems 

9 to improve, monitor, and evaluate the effectiveness 

10 and efficiency of assistance provided under this title 

11 in order to maximize the impact of such assistance. 

12 Such systems shall include the following: 

13 ‘‘(A) program monitors in countries receiv14 ing assistance under this title; 

15 ‘‘(B) country and regional food aid impact 

16 evaluations; 

17 ‘‘(C) evaluations of best practices for food 

18 aid programs; 

19 ‘‘(D) evaluation of monetization programs; 

20 ‘‘(E) early warning assessments to prevent 

21 famines; and 

22 ‘‘(F) upgraded information technology sys23 tems. 

24 ‘‘(2) IMPLEMENTATION REPORT.—Not later 

25 than 180 days after the date of enactment of the 
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1 Farm, Nutrition, and Bioenergy Act of 2007, the 

2 Administrator shall submit to the appropriate con3 gressional committees a report on efforts undertaken 

4 to implement paragraph (1). 

5 ‘‘(3) GOVERNMENT ACCOUNTABILITY OFFICE.— 

6 Not later than 270 days after the date of the sub7 mission of the report under paragraph (2), the 

8 Comptroller General of the United States shall sub9 mit to the appropriate congressional committees a 

10 report that— 

11 ‘‘(A) reviews and comments on the report 

12 under paragraph (2); and 

13 ‘‘(B) provides recommendations regarding 

14 any additional actions necessary to improve the 

15 monitoring and evaluation of assistance pro16 vided under this title. 

17 ‘‘(4) ANNUAL REPORT.—Not later than Feb18 ruary 1 of each year, the Administrator shall submit 

19 to the appropriate congressional committees a report 

20 assessing the systems implemented under paragraph 

21 (1) and their impact on the effectiveness and effi22 ciency of assistance provided under this title. 

23 ‘‘(5) FUNDING.—In addition to other funds 

24 made available for the Administrator to perform 

25 monitoring of emergency food assistance, the Admin-
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1 istrator may implement this subsection using up to 

2 $15,000,000 of funds made available under this title 

3 for each of the fiscal years 2008 through 2012, ex4 cept for paragraph (1)(F), for which only 

5 $2,500,000 shall be made available during fiscal 

6 year 2008. 

7 ‘‘(6) APPROPRIATE CONGRESSIONAL COMMIT8 TEES DEFINED.—In this subsection, the term ‘ap9 propriate congressional committees’ means— 

10 ‘‘(A) the Committee on Foreign Affairs 

11 and the Committee on Agriculture of the House 

12 of Representatives; and 

13 ‘‘(B) the Committee on Agriculture, Nutri14 tion, and Forestry of the Senate.’’. 

15 (h) SHELF-STABLE PREPACKAGED FOODS.—Section 

16 208(f) of the Agricultural Trade Development and Assist17 ance Act of 1954 (7 U.S.C. 1726b(f)) is amended— 

18 (1) by striking ‘‘2007’’ and insert ‘‘2012’’; and 

19 (2) by striking ‘‘$3,000,000’’ and inserting 

20 ‘‘$7,000,000’’ 

21 (i) PREPOSITIONING.—Section 407(c)(4) of the Agri22 cultural Trade Development and Assistance Act of 1954 

23 (7 U.S.C. 1736a(c)(4)) is amended— 

24 (1) by striking ‘‘Funds’’ and inserting ‘‘(A) IN

25 GENERAL.—Funds’’; 
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1 (2) by striking ‘‘2007’’ and inserting ‘‘2012’’; 

2 (3) by striking ‘‘$2,000,000’’ and inserting 

3 ‘‘$8,000,000’’; and 

4 (4) by adding at the end the following new sub5 paragraph: 

6 ‘‘(B) ADDITIONAL PREPOSITIONING

7 SITES.— 

8 ‘‘(i) FEASIBILITY ASSESSMENT.—On 

9 or after the date of the enactment of the 

10 Farm, Nutrition, and Bioenergy Act of 

11 2007, the Administrator is authorized to 

12 carry out assessments for the establish13 ment of not less than two sites to deter14 mine the feasibility of and costs associated 

15 with using such sites for the purpose of 

16 storing and handling agricultural commod17 ities for prepositioning in foreign countries. 

18 ‘‘(ii) ESTABLISHMENT OF SITES.— 

19 Based on the results of the assessments 

20 carried out under clause (i), the Adminis21 trator is authorized to establish additional 

22 sites for pre-positioning in foreign coun23 tries. 

24 ‘‘(iii) AUTHORIZATION OF APPROPRIA25 TIONS.—To carry out this subparagraph, 
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1 there are authorized to be appropriated to 

2 the Administrator such sums as may be 

3 necessary for each of the fiscal years 2008 

4 through 2012.’’. 

5 (j) ANNUAL REPORTS.—Section 407(f) of the Agri6 cultural Trade Development and Assistance Act of 1954 

7 (7 U.S.C. 1736a(f)) is amended— 

8 (1) in paragraph (2)— 

9 (A) in subparagraph (B), by adding at the 

10 end before the semicolon the following: ‘‘, and 

11 the amount of funds, tonnage levels, and types 

12 of activities for non-emergency food assistance 

13 programs under title II of this Act’’; 

14 (B) in subparagraph (C), by adding at the 

15 end before the semicolon the following: ‘‘, and 

16 a general description of the projects and activi17 ties implemented’’; and 

18 (C) so that subparagraph (D) reads as fol19 lows: 

20 ‘‘(D) an assessment of the progress toward 

21 reducing food insecurity in the populations re22 ceiving food assistance from the United 

23 States.’’; and 

24 (2) in paragraph (3), by striking ‘‘January 15’’ 

25 and inserting ‘‘March 1’’. 
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1 (k) EXPIRATION OF ASSISTANCE.—Section 408 of 

2 the Agricultural Trade Development and Assistance Act 

3 of 1954 (7 U.S.C. 1736b) is amended by striking ‘‘2007’’ 

4 and inserting ‘‘2012’’. 

5 (l) AUTHORIZATION OF APPROPRIATIONS.—Sub6 section (a) of section 412 of the Agricultural Trade Devel7 opment and Assistance Act of 1954 (7 U.S.C. 1736f) is 

8 amended to read as follows: 

9 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—For 

10 each of the fiscal years 2008 through 2012, there are au11 thorized to be appropriated to the President— 

12 ‘‘(1) such sums as may be necessary to carry 

13 out the concessional credit sales program established 

14 under title I, 

15 ‘‘(2) $2,500,000,000 to carry out the emer16 gency and non-emergency food assistance programs 

17 under title II, and 

18 ‘‘(3) such sums as may be necessary to carry 

19 out the grant program established under title III, 

20 including such amounts as may be required to make pay21 ments to the Commodity Credit Corporation to the extent 

22 the Commodity Credit Corporation is not reimbursed 

23 under the programs under this Act for the actual costs 

24 incurred or to be incurred by such Corporation in carrying 

25 out such programs.’’. 
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1 (m) MICRONUTRIENT FORTIFICATION PROGRAMS.— 

2 (1) PURPOSE.—Subsection (a)(2)(C) of section 

3 415 of the Agricultural Trade Development and As4 sistance Act of 1954 (7 U.S.C. 1736g–2) is amend5 ed— 

6 (A) by striking ‘‘using the same mecha7 nism that was used to assess the micronutrient 

8 fortification program in’’ and inserting ‘‘uti9 lizing recommendations from’’; and 

10 (B) by striking ‘‘with funds from the Bu11 reau for Humanitarian Response of the United 

12 States Agency for International Development’’ 

13 and inserting ‘‘with implementation by an inde14 pendent entity with proven impartiality and a 

15 mechanism that incorporates the range of 

16 stakeholders implementing programs under title 

17 II of this Act as well as other food assistance 

18 industry experts’’. 

19 (2) TERMINATION OF AUTHORITY.—Subsection 

20 (d) of such section is amended by striking ‘‘2007’’ 

21 and inserting ‘‘2012’’. 

22 (n) JOHN OGONOWSKI AND DOUG BEREUTER FARM23 ER-TO-FARMER PROGRAM.— 
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1 (1) MINIMUM FUNDING.—Section 501(d) of the 

2 Agricultural Trade Development and Assistance Act 

3 of 1954 (7 U.S.C. 1737(d)) is amended— 

4 (A) by inserting ‘‘or $10,000,000, which5 ever amount is greater,’’ after ‘‘not less than 

6 0.5 percent’’; and 

7 (B) by striking ‘‘2002 through 2007’’ and 

8 inserting ‘‘2008 through 2012’’. 

9 (2) AUTHORIZATION OF APPROPRIATIONS.— 

10 Section 501(e) of the Agricultural Trade Develop11 ment and Assistance Act of 1954 (7 U.S.C. 1737(e)) 

12 is amended by striking paragraph (1) and inserting 

13 the following new paragraph: 

14 ‘‘(1) IN GENERAL.—To carry out programs 

15 under this section, there is authorized to be appro16 priated for each of fiscal years 2008 through 2012 

17 the following amounts: 

18 ‘‘(A) $10,000,000 for sub-Saharan African 

19 and Caribbean Basin countries. 

20 ‘‘(B) $5,000,000 for all other countries not 

21 included in subparagraph (A).’’. 

22 (o) REFERENCES TO COMMITTEE.—The Agricultural 

23 Trade Development and Assistance Act of 1954 (7 U.S.C. 

24 1691 et seq.) is amended by striking ‘‘Committee on Inter-
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1 national Relations’’ each place it appears and inserting 

2 ‘‘Committee on Foreign Affairs’’. 

3 SEC. 3002. EXPORT CREDIT GUARANTEE PROGRAM. 

4 (a) REPEAL OF SUPPLIER CREDIT GUARANTEE PRO5 GRAM AND INTERMEDIATE EXPORT CREDIT GUARANTEE

6 PROGRAM.— 

7 (1) REPEALS.—Section 202 of the Agricultural 

8 Trade Act of 1978 (7 U.S.C. 5622) is amended— 

9 (A) in subsection (a)— 

10 (i) in paragraph (1), by striking ‘‘(1)’’ 

11 and all that follows through ‘‘The Com12 modity’’ and inserting ‘‘The Commodity’’; 

13 (ii) in paragraph (1), by striking ‘‘3- 

14 year period’’ and inserting ‘‘6-month pe15 riod’’; and 

16 (iii) by striking paragraphs (2) and 

17 (3); 

18 (B) by striking subsections (b) and (c); 

19 and 

20 (C) by redesignating subsections (d) 

21 through (l) as subsections (b) through (j), re22 spectively. 

23 (2) CONFORMING AMENDMENTS.—The Agricul24 tural Trade Act of 1978 is amended— 

25 (A) in section 202 (7 U.S.C. 5622)— 
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1 (i) in subsection (b)(4) (as redesig2 nated by paragraph (1)(C)), by striking ‘‘, 

3 consistent with the provisions of subsection 

4 (c)’’; 

5 (ii) in subsection (d) (as redesignated 

6 by paragraph (1)(C))— 

7 (I) by striking ‘‘(1)’’ and all that 

8 follows through ‘‘The Commodity’’ 

9 and inserting ‘‘The Commodity’’; and 

10 (II) by striking paragraph (2); 

11 and 

12 (iii) in subsection (g)(2) (as redesig13 nated by paragraph (1)(C)), by striking 

14 ‘‘subsections (a) and (b)’’ and inserting 

15 ‘‘subsection (a)’’; and 

16 (B) in section 211 (7 U.S.C. 5641), by 

17 striking subsection (b) and inserting the fol18 lowing: 

19 ‘‘(b) EXPORT CREDIT GUARANTEE PROGRAMS.—(1) 

20 The Commodity Credit Corporation shall make available 

21 for each of fiscal years 2008 through 2012 not less than 

22 $5,500,000,000 in credit guarantees under section 202(a). 

23 ‘‘(2) Section 202(k)(1) of the Agricultural Trade Act 

24 of 1978 (7 U.S.C. 5622(k)(1)) is amended by striking 

25 ‘2007’ and inserting ‘2012’.’’. 
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1 SEC. 3003. MARKET ACCESS PROGRAM. 

2 (a) ORGANIC COMMODITIES.—Section 203(a) of the 

3 Agricultural Trade Act of 1978 (7 U.S.C. 5623(a)) is 

4 amended by inserting after ‘‘agricultural commodities’’ the 

5 following: ‘‘(including commodities that are organically 

6 produced (as defined in section 2103 of the Organic Foods 

7 Production Act of 1990 (7 U.S.C. 6502))’’. 

8 (b) FUNDING.—Section 211(c)(1)(A) of the Agricul9 tural Trade Act of 1978 (7 U.S.C. 5641(c)(1)(A)) is 

10 amended by striking ‘‘, and $200,000,000 for each of fis11 cal years 2006 and 2007’’ and inserting ‘‘$200,000,000 

12 for each of fiscal years 2006 and 2007, and $225,000,000 

13 for each of fiscal years 2008 through 2012’’. 

14 SEC. 3004. FOOD FOR PROGRESS ACT OF 1985. 

15 The Food for Progress Act of 1985 (7 U.S.C. 1736o) 

16 is amended by striking ‘‘2007’’ each place it appears and 

17 inserting ‘‘2012’’. 

18 SEC. 3005. REAUTHORIZATION OF MCGOVERN-DOLE INTER19 NATIONAL FOOD FOR EDUCATION AND 

20 CHILD NUTRITION PROGRAM. 

21 (a) ADMINISTRATION OF PROGRAM.—Section 3107 

22 of the Farm Security and Rural Investment Act of 2002 

23 (7 U.S.C. 1736o–1) is amended— 

24 (1) in subsection (d), in the matter preceding 

25 paragraph (1), by striking ‘‘The President shall des-
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1 ignate 1 or more Federal agencies to’’ and inserting 

2 ‘‘The Secretary shall’’; 

3 (2) in subsection (f)(2), in the matter preceding 

4 subparagraph (A), by striking ‘‘implementing agen5 cy’’ and inserting ‘‘Secretary’’; and 

6 (3) in subsections (c)(2)(B), (f)(1), (h)(1) and 

7 (2), and (i), by striking ‘‘President’’ each place it 

8 appears and inserting ‘‘Secretary’’. 

9 (b) FUNDING.—Section 3107(l) of the Farm Security 

10 and Rural Investment Act of 2002 (7 U.S.C. 1736o-1(l)) 

11 is amended— 

12 (1) by striking paragraphs (1) and (2) and in13 serting the following: 

14 ‘‘(1) USE OF COMMODITY CREDIT CORPORATION

15 FUNDS.—Of the funds of the Commodity Credit 

16 Corporation, the Secretary shall use to carry out this 

17 section— 

18 ‘‘(A) $0 for fiscal year 2008; 

19 ‘‘(B) $140,000,000 for fiscal year 2009; 

20 ‘‘(C) $170,000,000 for fiscal year 2010; 

21 ‘‘(D) $230,000,000 for fiscal year 2011; 

22 ‘‘(E) $300,000,000 for fiscal year 2012; 

23 and 

24 ‘‘(F) $0 for fiscal year 2013.’’; 
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1 (2) by redesignating paragraph (3) as para2 graph (2); and 

3 (3) in paragraph (2) (as redesignated by para4 graph (2)), by striking ‘‘any Federal agency imple5 menting or assisting’’ and inserting ‘‘the Depart6 ment of Agriculture or any other Federal agency as7 sisting’’. 

8 SEC. 3006. BILL EMERSON HUMANITARIAN TRUST. 

9 Section 302 of the Bill Emerson Humanitarian Trust 

10 Act (7 U.S.C. 1736f–1) is amended by striking ‘‘2007’’ 

11 each place it appears in subsection (b)(2)(B)(i) and para12 graphs (1) and (2) of subsection (h) and inserting ‘‘2012’’. 

13 SEC. 3007. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS. 

14 Section 3205 of the Farm Security and Rural Invest15 ment Act of 2002 (7 U.S.C. 5680) is amended so that 

16 subsection (d) reads as follows: 

17 ‘‘(d) FUNDING.— 

18 ‘‘(1) COMMODITY CREDIT CORPORATION.—The 

19 Secretary shall use the funds, facilities, and authori20 ties of the Commodity Credit Corporation to carry 

21 out this section. 

22 ‘‘(2) FUNDING AMOUNT.—The Secretary shall 

23 use the funds of, or an equal value of commodities 

24 owned by, the Commodity Credit Corporation to 

25 carry out this section— 
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1 ‘‘(A) $4,000,000 for fiscal year 2008; 

2 ‘‘(B) $6,000,000 for fiscal year 2009; 

3 ‘‘(C) $8,000,000 for fiscal year 2010; 

4 ‘‘(D) $10,000,000 for each of fiscal years 

5 2011 through 2012.’’. 

6 SEC. 3008. TECHNICAL ASSISTANCE FOR THE RESOLUTION 

7 OF TRADE DISPUTES. 

8 (a) IN GENERAL.—The Secretary of Agriculture may 

9 provide monitoring, analytic support, and other technical 

10 assistance to limited resource persons and organizations 

11 associated with agricultural trade (as determined by the 

12 Secretary) to address unfair trade practices of foreign 

13 countries and to reduce trade barriers. 

14 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized such sums as necessary to carry out sub16 section (a). 

17 SEC. 3009. REPRESENTATION BY THE UNITED STATES AT 

18 INTERNATIONAL STANDARD-SETTING BOD19 IES. 

20 (a) IN GENERAL.—Pursuant to the authority of the 

21 Secretary provided by section 1458(a)(3) of the Food and 

22 Agriculture Act of 1977 (7 U.S.C. 3291(a)(3)), the Sec23 retary is authorized to enhance United States support for 

24 international organizations, including the Food and Agri25 culture Organization, the Codex Alimentarius Commis-
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1 sion, the International Plant Protection Convention, and 

2 the World Organization for Animal Health, that establish 

3 international standards regarding food, food safety, 

4 plants, and animals, respectively, by funding additional 

5 positions of Associate Professional Officers to address san6 itary and phytosanitary priorities of the United States 

7 within applicable international organizations. 

8 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated such sums as necessary 

10 to carry out this section for each of fiscal years 2007– 

11 2012. 

12 SEC. 3010. FOREIGN MARKET DEVELOPMENT COOPERATOR 

13 PROGRAM. 

14 (a) FOREIGN MARKET DEVELOPMENT COOPERATOR

15 PROGRAM.—Subsection (c) of section 702 of the Agricul16 tural Trade Act of 1978 (7 U.S.C. 5722) is amended by 

17 striking ‘‘Committee on International Relations’’ and in18 serting ‘‘Committee on Foreign Affairs’’. 

19 (b) FUNDING.—Subsection (a) of section 703 of such 

20 Act (7 U.S.C. 5723) is amended by striking ‘‘2002 

21 through 2007’’ and inserting ‘‘2008 through 2012’’. 

22 SEC. 3011. EMERGING MARKETS. 

23 The Food, Agriculture, Conservation, and Trade Act 

24 of 1990 (7 U.S.C. 5622 note; Public Law 101–624) is 
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1 amended in each of subsections (a) and (d)(1)(A)(i) by 

2 striking ‘‘2007’’ and inserting ‘‘2012. 

3 SEC. 3012. EXPORT ENHANCEMENT PROGRAM. 

4 Section 301(e)(1)(G) of the Agricultural Trade Act 

5 of 1978 (7 U.S.C. 5651(e)(1)(G)) is amended by striking 

6 ‘‘2007’’ and inserting ‘‘2012’’. 

7 SEC. 3013. MINIMUM LEVEL OF NONEMERGENCY FOOD AS8 SISTANCE. 

9 Section 412 of the Agricultural Trade Development 

10 and Assistance Act of 1954 (7 U.S.C. 1736f) is amended 

11 by inserting at the end the following new subsection: 

12 ‘‘(e) MINIMUM LEVEL OF NONEMERGENCY FOOD AS13 SISTANCE.— 

14 ‘‘(1) FUNDS.—Of the amounts made available 

15 to carry out emergency and nonemergency food as16 sistance programs under title II, not less than 

17 $450,000,000 for each of fiscal years 2008 through 

18 2012 shall be expended for nonemergency food as19 sistance programs under title II. 

20 ‘‘(2) EXCEPTION.—The Administrator may use 

21 less than the amount specified in paragraph (1) for 

22 a fiscal year for nonemergency food assistance pro23 grams under title II if— 

24 ‘‘(A) the Administrator submits to the 

25 Committees on Foreign Affairs, Agriculture, 
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1 and Appropriations of the House of Representa2 tives and the Committees on Appropriations 

3 and Agriculture, Nutrition, and Forestry of the 

4 Senate a report requesting the reduction and 

5 containing the reasons for the reduction; and 

6 ‘‘(B) following submission of the report, 

7 Congress enacts a law approving the Adminis8 trator’s request.’’. 

9 SEC. 3014. GERMPLASM CONSERVATION. 

10 (a) CONTRIBUTION.—The Administrator of the 

11 United States Agency for International Development shall 

12 contribute funds to endow the Global Crop Diversity Trust 

13 (in this section referred to as the ‘‘Trust’’) to assist in 

14 the conservation of genetic diversity in food crops through 

15 the collection and storage of the germplasm of such crops 

16 in a manner that provides for— 

17 (1) the maintenance and storage of seed collec18 tions; 

19 (2) the documentation and cataloguing of the 

20 genetics and characteristics of conserved seeds to en21 sure efficient reference for researchers, plant breed22 ers, and the public; 

23 (3) building the capacity of seed collection in 

24 developing countries; 
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1 (4) making information regarding crop genetic 

2 data publicly available for researchers, plant breed3 ers, and the public (for example, through the provi4 sion of an accessible Internet site); 

5 (5) the operation and maintenance of a back-up 

6 facility wherein is stored duplicate samples of seeds, 

7 as a hedge against natural or man-made disasters; 

8 and 

9 (6) oversight designed to ensure international 

10 coordination of these actions and efficient, public ac11 cessibility to this diversity through a cost-effective 

12 system. 

13 (b) UNITED STATES CONTRIBUTION LIMIT.—The 

14 aggregate contributions of United States Government 

15 funds provided to the Trust shall not exceed 25 percent 

16 of the total of the funds contributed to the Trust from 

17 all sources. 

18 (c) AUTHORIZATION.—There are authorized to be ap19 propriated to carry out this section a total of $60,000,000 

20 over the period of fiscal year 2008 through fiscal year 

21 2012. 

22 SEC. 3015. REPORT ON EFFORTS TO IMPROVE PROCURE23 MENT PLANNING. 

24 (a) REPORT REQUIRED.—Not later than 90 days 

25 after the date of the enactment of this Act, the Adminis-
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1 trator of the United States Agency for International De2 velopment and the Secretary of Agriculture shall submit 

3 to the appropriate congressional committees a report on 

4 efforts taken by both the United States Agency for Inter5 national Development and the Department of Agriculture 

6 to improve planning for food and transportation procure7 ment, including efforts to eliminate bunching of food pur8 chases. 

9 (b) CONTENTS.—The report required under sub10 section (a) should include, among other things, a descrip11 tion of efforts taken to— 

12 (1) improve coordination of food purchases by 

13 the United States Agency for International Develop14 ment and the Department of Agriculture; 

15 (2) increase flexibility in procurement sched16 ules; 

17 (3) increase utilization of historical analyses 

18 and forecasting; and 

19 (4) improve and streamline legal claims proc20 esses for resolving transportation disputes. 

21 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE22 FINED.—In this section, the term ‘‘appropriate congres23 sional committees’’ means— 
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1 (1) the Committee on Foreign Affairs and the 

2 Committee on Agriculture of the House of Rep3 resentatives; and 

4 (2) the Committee on Agriculture, Nutrition, 

5 and Forestry of the Senate. 

6 SEC. 3016. INTERNATIONAL DISASTER ASSISTANCE UNDER 

7 THE FOREIGN ASSISTANCE ACT OF 1961. 

8 For each of the fiscal years 2008 through 2012, of 

9 the amounts made available to carry out section 491 of 

10 the Foreign Assistance Act of 1961 (22 U.S.C. 2292), not 

11 less than $40,000,000 for each such fiscal year is author12 ized be made available for the purposes of famine preven13 tion and relief under such section. 

14 TITLE IV—NUTRITION 

15 PROGRAMS 

Subtitle A—Food Stamp Program 

Sec. 4001. Renaming the food stamp program. 

Sec. 4002. Definition of drug addiction or alcoholic treatment and rehabilitation program. 

Sec. 4003. Nutrition education. 

Sec. 4004. Food distribution on Indian reservations. 

Sec. 4005. Excluding combat related pay from countable income. 

Sec. 4006. Increasing the standard deduction. 

Sec. 4007. Excluding dependent care expenses. 

Sec. 4008. Adjusting countable resources for inflation. 

Sec. 4009. Excluding education accounts from countable income. 

Sec. 4010. Excluding retirement accounts from countable income. 

Sec. 4011. Deobligate food stamp coupons. 

Sec. 4012. Allow for the accrual of benefits. 

Sec. 4013. Increasing the minimum benefit. 

Sec. 4014. State option for telephonic signature. 

Sec. 4015. Review of major changes in program design. 

Sec. 4016. Grants for simple application and eligibility determination systems 

and improved access to benefits. 

Sec. 4017. Civil money penalties and disqualification of retail food stores and 

wholesale food concerns. 
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Sec. 4018. Major systems failures. 

Sec. 4019. Funding of employment and training programs. 

Sec. 4020. Reductions in payments for administrative costs. 

Sec. 4021. Cash payment pilot projects. 

Sec. 4022. Findings of Congress regarding Secure Supplemental Nutrition Assistance program nutrition education. 

Sec. 4023. Nutrition education and promotion initiative to address obesity. 

Sec. 4024. Authorization of appropriations. 

Sec. 4025. Consolidated block grants for Puerto Rico and American Samoa. 

Sec. 4026. Study on comparable access to Secure Supplemental Nutrition Assistance Program benefits for Puerto Rico. 

Sec. 4027. Reauthorization of community food project competitive grants. 

Sec. 4028. Emergency food assistance program. 

Subtitle B—Commodity Distribution 

Sec. 4201. Authorization of appropriations. 

Sec. 4202. Distribution of surplus commodities; special nutrition projects. 

Sec. 4203. Commodity distribution program. 

Subtitle C—Child Nutrition and Related Programs 

Sec. 4301. Purchase of fresh fruits and vegetables for distribution to schools 

and service institutions. 

Sec. 4302. Buy American requirements. 

Sec. 4303. Expansion of fresh fruit and vegetable program. 

Sec. 4304. Purchases of locally produced foods. 

Subtitle D—Miscellaneous 

Sec. 4401. Seniors farmers’ market nutrition program. 

Sec. 4402. Congressional Hunger Center. 

Sec. 4403. Joint nutrition monitoring and related research activities. 

Sec. 4404 Sense of the Congress. 

1 Subtitle A—Food Stamp Program 

2 SEC. 4001. RENAMING THE FOOD STAMP PROGRAM. 

3 (a) AMENDMENTS TO THE FOOD STAMP ACT OF

4 1977.— 

5 (1) REFERENCES AMENDED.—The provisions of 

6 the Food Stamp Act of 1977 (7 U.S.C. 2011 et 

7 seq.)— 

8 (A) specified in paragraph (2)(A) are 

9 amended in the section heading by striking 

10 ‘‘FOOD STAMP’’ each place it appears and in-
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1 serting ‘‘SECURE SUPPLEMENTAL NUTRI2 TION ASSISTANCE’’; 

3 (B) specified in paragraph (2)(B) are 

4 amended in the subsection heading by striking 

5 ‘‘FOOD STAMP’’ each place it appears and in6 serting ‘‘SECURE SUPPLEMENTAL NUTRITION

7 ASSISTANCE’’; 

8 (C) specified in paragraph (2)(C) are 

9 amended by striking each place it appears ‘‘food 

10 stamp recipient’’ and inserting ‘‘member of a 

11 household that receives Secure Supplemental 

12 Nutrition Assistance Program benefits’’, 

13 (D) specified in paragraph (2)(D) are 

14 amended by striking ‘‘food stamp recipients’’ 

15 each place it appears and inserting ‘‘members 

16 of households that receive Secure Supplemental 

17 Nutrition Assistance Program benefits’’, 

18 (E) specified in paragraph (2)(E) are 

19 amended by striking ‘‘food stamp households’’ 

20 each place it appears and inserting ‘‘households 

21 that receive Secure Supplemental Nutrition As22 sistance Program benefits’’; 

23 (F) specified in paragraph (2)(F) are 

24 amended by striking ‘‘Simplified Food Stamp 

25 Program’’ each place it appears and inserting 
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1 ‘‘Simplified Secure Supplemental Nutrition As2 sistance Program’’; 

3 (G) specified in paragraph (2)(H) are 

4 amended by striking ‘‘food stamp participants’’ 

5 each place it appears and inserting ‘‘partici6 pants in the Secure Supplemental Nutrition As7 sistance Program’’; 

8 (H) specified in paragraph (2)(I) are 

9 amended by striking ‘‘food stamp informational 

10 activities’’ each place it appears and inserting 

11 ‘‘informational activities relating to the Secure 

12 Supplemental Nutrition Assistance Program’’; 

13 (I) specified in paragraph (2)(J) are 

14 amended by striking ‘‘food stamp caseload’’ 

15 each place it appears and inserting ‘‘caseload 

16 under the Secure Supplemental Nutrition As17 sistance Program’’; 

18 (J) specified in paragraph (2)(K) are 

19 amended by striking ‘‘State’s food stamp house20 holds’’ each place it appears and inserting ‘‘the 

21 number of households in the State receiving Se22 cure Supplemental Nutrition Assistance Pro23 gram benefits’’; 

24 (K) specified in paragraph (2)(L) are 

25 amended in the section heading by striking 
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1 ‘‘FOOD STAMP PORTION’’ each place it ap2 pears and inserting ‘‘SECURE SUPPLE3 MENTAL NUTRITION ASSISTANCE PRO4 GRAM BENEFITS’’; 

5 (L) specified in paragraph (2)(M) are 

6 amended by striking ‘‘food stamps’’ each place 

7 it appears and inserting ‘‘Secure Supplemental 

8 Assistance Nutrition Program benefits’’; 

9 (M) specified in paragraph (2)(N) are 

10 amended by striking ‘‘Food stamp program’’ 

11 each place it appears and inserting ‘‘Secure 

12 Supplemental Nutrition Assistance Program’’; 

13 (N) specified in paragraph (2)(o) are 

14 amended by striking ‘‘food stamp program ben15 efits’’ each place it appears and inserting ‘‘Se16 cure Supplemental Nutrition Program bene17 fits’’; and 

18 (O) specified in paragraph (2)(O) are 

19 amended by striking ‘‘food stamp program’’ 

20 each place it appears and inserting ‘‘Secure 

21 Supplemental Nutrition Assistance Nutrition 

22 Program’’. 

23 (2) PROVISIONS REFERRED TO.—The provi24 sions of the of the Food Stamp Act of 1977 referred 

25 to in paragraph (1) are the following: 
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1 (A) Sections 4 and 26. 

2 (B) Section 6(j). 

3 (C) Section 6(o)(6)(A)(ii). 

4 (D)(i) Subparagraphs (D) and (E) of sec5 tion 6(o)(6); 

6 (ii) sections 16(h)(1)(E)(i) and 12(a); and 

7 (iii) paragraphs (1)(B)(ii)(II) and (3)(B) 

8 of section 17(b). 

9 (E) Sections 7(h)(3)(B)(ii), 9(b)(1), 12(a), 

10 and 17(b)(1)(B)(ii)(I). 

11 (F) Sections 11(e)(25) and 26(b). 

12 (G) Section 11(f)(2)(B). 

13 (H) Section 16(a). 

14 (I) Section 16(e)(9)(C). 

15 (J) Section 17(b)(1)(B)(iii)(I). 

16 (K) Section 22. 

17 (L)(i) Subsections (d)(3) and (o)(6)(A)(i) 

18 of section 6; 

19 (ii) paragraphs (2)(B)(v)(II) and (14) of 

20 section 11(e); and 

21 (iii) sections 12(e)(16), 17(b)(3)(C), and 

22 18(a)(3)(A)(ii). 

23 (M) Section 3(h). 

24 (N)(i) In section 6— 

25 (I) subsection (h); and 
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1 (II) in subsection (o)— 

2 (aa) paragraph (2); and 

3 (bb) subclauses (IV) and (V) of 

4 paragraph (6)(A)(ii). 

5 (ii) Section 7(k)(2). 

6 (iii) In section 11— 

7 (I) subsection (e)(25)(A); 

8 (II) paragraphs (1), (2), and (3) of 

9 subsection (s); and 

10 (III) subsection (t)(1)(B). 

11 (iv) In section 17— 

12 (I) subsection (a)(2); 

13 (II) paragraphs (1)(A), (2), and 

14 (3)(D) of subsection (b); 

15 (III) paragraphs (1)(B), (2)(C)(ii), 

16 and (3)(E) of subsection (d); and 

17 (IV) subsections (e) and (f). 

18 (v) Section 21(d)(3). 

19 (O)(i) Sections 2, 3(h), and 4. 

20 (ii) In section 5— 

21 (I) subsections (a), (b), (c), and (d); 

22 (II) clauses (ii)(III) and (iv)(IV) of 

23 subsection (e)(6)(C); 

24 (III) paragraphs (1), (3), and 

25 (6)(B)(iv) of subsection (g); and 
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1 (IV) subsections (h)(2)(A) and 

2 (k)(4)(B). 

3 (iii) In section 6— 

4 (I) subsections (a) and (b); 

5 (II) in subsection (d)(1)— 

6 (aa) subparagraphs (A) and (B); 

7 (bb) clauses (i), (ii), and (iii) of 

8 subparagraph (C); and 

9 (cc) clauses (v) and (vi) of sub10 paragraph (D); 

11 (III) paragraphs (2)(C), (3), and 

12 (4)(A)(i) of subsection (d); 

13 (IV) subsections (e), (f), and (h); 

14 (V) paragraphs (1) and (2) of sub15 section (i); and 

16 (VI) subsections (j), (k), (l)(1), 

17 (m)(1), (n), (o)(5)(A); 

18 (iv) In section 7— 

19 (I) subsections (a), (b), and (g); 

20 (II) paragraphs (1) and (2)(B) of 

21 subsection (j); and 

22 (III) in subsection (k)— 

23 (aa) paragraph (3); and 

24 (bb) subparagraphs (B)(ii) and 

25 (C) of paragraph (4). 
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1 (v) In section 8— 

2 (I) subsections (a), (c)(2), and (d)(2); 

3 (II) in subsection (f)— 

4 (aa) clauses (i)(II)(aa), (ii)(I), 

5 and (iv) of paragraph (1)(D); and 

6 (bb) paragraph (3)(B)(ii)(II)(bb). 

7 (vi) In section 9— 

8 (I) paragraphs (1) and (3) of sub9 section (a); and 

10 (II) subsections (b)(1), (d), (e), and 

11 (g). 

12 (vii) In section 11— 

13 (I) subsections (c) and (d); 

14 (II) in subsection (e)— 

15 (aa) paragraph (1)(A); 

16 (bb) clauses (i) and (iv) of para17 graph (2)(B); and 

18 (cc) paragraphs (10), (17), 

19 (20)(B), and (22); 

20 (III) subsections (f)(1), (g), (i), and 

21 (j)(1); 

22 (IV) paragraphs (1), (2), (3), and (4) 

23 of subsection (o); 

24 (V) subsections (p) and (q); and 
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1 (VI) paragraphs (2)(A) and (B)(4)(A) 

2 of subsection (t). 

3 (viii) Sections 12(a) and 14(a)(1). 

4 (ix) Subsections (b)(1) and (c) of section 

5 15. 

6 (x) In section 16— 

7 (I) subsection (a); 

8 (II) paragraph (1), (2), and (3) of 

9 subsection (b); 

10 (III) in subsection (c)— 

11 (aa) the matter preceding sub12 paragraph (A); 

13 (bb) subparagraphs (D)(i)(II) 

14 and (F)(iii)(I) of paragraph (1); and 

15 (cc) subparagraphs (A), (B), and 

16 (C) of paragraph (9); 

17 (IV) subsections (e), (g), and (i)(1); 

18 and 

19 (V) in subsection (k)— 

20 (aa) subparagraphs (A) and (B) 

21 of paragraph (2); 

22 (bb) subparagraphs (A) and 

23 (B)(i) of paragraph (3); and 

24 (cc) subparagraphs (A)(ii) and 

25 (B)(iv)(II) of paragraph (5). 
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1 (xi) In section 17— 

2 (I) subsection (a)(1); 

3 (II) in subsection (b)— 

4 (aa) subparagraphs (A) and 

5 (B)(i) of paragraph (1); and 

6 (bb) subparagraph (2); 

7 (III) subsection (c); 

8 (IV) subparagraphs (A) and (C) of 

9 subsection (d) (2); and 

10 (V) subsections (e), (g), and (h)(2). 

11 (xii) Subsections (a)(3)(D), (b), (d), and 

12 (e) of section 18. 

13 (xiii) Subsections (a)(1) and (f) of section 

14 20. 

15 (xiv) In section 21— 

16 (I) subsection (a); 

17 (II) in subsection (b)— 

18 (aa) in paragraph (2)— 

19 (AA) clause (i) and (ii) of 

20 subparagraph (A); 

21 (BB) subparagraphs (B) 

22 and (C)(i); 

23 (CC) clause (ii), and sub24 clauses (II), (III), and (IV) of 
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1 clause (iii), of subparagraph (F); 

2 and 

3 (DD) subparagraph (G)(i); 

4 (bb) paragraph (3); 

5 (cc) in paragraph (4)— 

6 (AA) subparagraphs (A) and 

7 (B); and 

8 (BB) the flush text at the 

9 end; 

10 (dd) paragraphs (5) and (7); 

11 (III) subsection (C)(2)(B); 

12 (IV) paragraphs (1)(A), (2), and (3) 

13 of subsection (d); and 

14 (V) paragraphs (1) and (2) of sub15 section (f). 

16 (xv) In section 22— 

17 (I) subsection (a)(1); 

18 (II) in subsection (b)— 

19 (aa) paragraph (2); 

20 (bb) in paragraph (3)— 

21 (AA) subparagraphs (A) and 

22 (B)(ii); 

23 (BB) clauses (ii) and (iii) of 

24 subparagraph (C); 
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1 (CC) subparagraph (D)(ii); 

2 and 

3 (DD) clauses (i), (ii), and 

4 (iv) of subparagraph (E); 

5 (cc) paragraph (5); 

6 (dd) subparagraphs (B) and (C) 

7 of paragraph (6); 

8 (ee) subparagraphs (A) and (B) 

9 of paragraph (7); 

10 (ff) paragraphs (8) and (9); 

11 (gg) in paragraph (10)— 

12 (AA) subparagraph (A) 

13 (BB) clauses (i) and (ii) of 

14 subparagraph (B); and 

15 (CC) subparagraph (C); and 

16 (hh) paragraphs (11), (12), and 

17 (13); 

18 (III) in subsection (d)— 

19 (aa) paragraph (1)(B)(i); and 

20 (bb) paragraph (3); and 

21 (IV) subsections (g)1 and (h). 

22 (xvi) Section 23(c). 

23 (xvii) In section 26— 

24 (I) subparagraphs (B) and (C) of sub25 section (c)(4); and 
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1 (II) subsection (f)(1). 

2 (b) REFERENCES IN OTHER LAWS, DOCUMENT, AND

3 RECORDS OF THE UNITED STATES.—In any law (exclud4 ing the Food Stamp Act of 1977), regulation, rule, docu5 ment, or record of the United States— 

6 (1) a reference to food stamp recipients shall be 

7 deemed to be a reference to recipients of Secure 

8 Supplemental Nutrition Assistance Program bene9 fits; 

10 (2) a reference to food stamp households shall 

11 be deemed to be a reference to households that re12 ceive Secure Supplemental Nutrition Assistance Pro13 gram benefits; 

14 (3) a reference to the Simplified Food Stamp 

15 Program shall be deemed to be a reference to the 

16 Simplified Secure Supplemental Nutrition Assistance 

17 Program; 

18 (4) a reference to food stamp participants shall 

19 be deemed to be a reference to participants in the 

20 Secure Supplemental Nutrition Assistance Program; 

21 (5) a reference to food stamp informational ac22 tivities shall be deemed to be a reference to informa23 tional activities relating to the Secure Supplemental 

24 Nutrition Assistance Program; 
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1 (6) a reference to food stamp caseload shall be 

2 deemed to be a reference to caseload under the Se3 cure Supplemental Nutrition Assistance Program; 

4 (7) a reference to food stamps shall be deemed 

5 to be a reference to Secure Supplemental Nutrition 

6 Assistance Program benefits; and 

7 (8) a reference to the food stamp program shall 

8 be deemed to be a reference to Secure Supplemental 

9 Nutrition Assistance Program. 

10 SEC. 4002. DEFINITION OF DRUG ADDICTION OR ALCO11 HOLIC TREATMENT AND REHABILITATION 

12 PROGRAM. 

13 Section 3(f) of the Food Stamp Act of 1977 (7 

14 U.S.C. 2012(f)) is amended by striking ‘‘ center, under 

15 part B of title XIX of the Public Health Service Act (42 

16 U.S.C. 300x et seq.)’’ and inserting ‘‘center, that is— 

17 ‘‘(1) tax exempt; and 

18 ‘‘(2) certified by the State title XIX agency, 

19 under part B of title XIX of the Public Health Serv20 ice Act (42 U.S.C. 300x et seq.), as receiving fund21 ing under part B, eligible to receive funding under 

22 part B even if no funds are being received, or oper23 ating to further the purposes of part B, except that 

24 nothing in this paragraph shall be construed to re-
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1 quire State or Federal licensure to meet these re2 quirements;’’. 

3 SEC. 4003. NUTRITION EDUCATION. 

4 (a) AUTHORITY TO PROVIDE NUTRITION EDU5 CATION.—Section 4(a) of the Food Stamp Act of 1977 

6 (7 U.S.C. 2013(a)) is amended in the first sentence by 

7 inserting ‘‘and through an approved State plan, nutrition 

8 education’’ after ‘‘an allotment’’. 

9 (b) IMPLEMENTATION.—Section 11(f) of the Food 

10 Stamp Act of 1977 (7 U.S.C. 2020(f)) is amended to read 

11 as follows: 

12 ‘‘(f) NUTRITION EDUCATION.— 

13 ‘‘(1) IN GENERAL.—State agencies may imple14 ment a nutrition education program for individuals 

15 eligible for Secure Supplemental Nutrition Assist16 ance Program benefits that promotes healthy food 

17 choices consistent with current Dietary Guidelines. 

18 ‘‘(2) DELIVERY OF NUTRITION EDUCATION.— 

19 State agencies may deliver nutrition education di20 rectly to eligible persons or through agreements with 

21 the Cooperative State Research, Education and Ex22 tension Service, including through the expanded food 

23 and nutrition education under section 3(d) of the 

24 Act of May 8, 1914 (7 U.S.C. 343(d)), and other 
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1 State and community health and nutrition providers 

2 and organizations. 

3 ‘‘(3) NUTRITION EDUCATION STATE PLANS.— 

4 State agencies wishing to provide nutrition education 

5 under this subsection shall submit a Nutrition Edu6 cation State Plan to the Food and Nutrition Service 

7 for approval. The plan shall identify the uses of the 

8 funding for local projects and conform to standards 

9 set forth by the Secretary in regulations or guid10 ance. State costs for providing nutrition education 

11 under this subsection shall be reimbursed pursuant 

12 to section 16(a). 

13 ‘‘(4) NOTIFICATION.—Whenever practicable, 

14 State agencies shall notify applicants, participants, 

15 and eligible program participants of the availability 

16 of nutrition education under this subsection.’’. 

17 SEC. 4004. FOOD DISTRIBUTION ON INDIAN RESERVATIONS. 

18 (a) IN GENERAL.—Section 4 of the Food Stamp Act 

19 of 1977 (7 U.S.C. 2013) is amended by striking sub20 section (b) and inserting the following: 

21 ‘‘(b) FOOD DISTRIBUTION PROGRAM ON INDIAN

22 RESERVATIONS.— 

23 ‘‘(1) IN GENERAL.—Distribution of commod24 ities, with or without the Secure Supplemental Nu25 trition Assistance Program, shall be made whenever 
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1 a request for concurrent or separate food program 

2 operations, respectively, is made by a tribal organi3 zation. 

4 ‘‘(2) ADMINISTRATION.— 

5 ‘‘(A) IN GENERAL.—Subject to subpara6 graphs (B) and (C), in the event of a distribu7 tion on all or part of an Indian reservation, the 

8 appropriate agency of the State government in 

9 the area involved shall be responsible for the 

10 distribution. 

11 ‘‘(B) ADMINISTRATION BY TRIBAL ORGANI12 ZATION.—If the Secretary determines that a 

13 tribal organization is capable of effectively and 

14 efficiently administering a distribution de15 scribed in subparagraph (A), then the tribal or16 ganization shall administer the distribution. 

17 ‘‘(C) PROHIBITION.—The Secretary shall 

18 not approve any plan for a distribution de19 scribed in subparagraph (A) that permits any 

20 household on any Indian reservation to partici21 pate simultaneously in the Secure Supplemental 

22 Nutrition Assistance Program and the distribu23 tion of federally donated foods. 

24 ‘‘(3) DISQUALIFIED PARTICIPANTS.—The Sec25 retary shall ensure that an individual who is dis-
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1 qualified from participation in the Food Distribution 

2 Program on Indian Reservations under this sub3 section is not eligible to participate in the Secure 

4 Supplemental Nutrition Assistance Program under 

5 this Act. 

6 ‘‘(4) ADMINISTRATIVE COSTS.—The Secretary 

7 is authorized to pay such amounts for administrative 

8 costs of such distribution on Indian reservations as 

9 the Secretary finds necessary for effective adminis10 tration of such distribution by a State agency or 

11 tribal organization. 

12 ‘‘(5) TRADITIONAL AND LOCAL FOODS FUND.— 

13 ‘‘(A) IN GENERAL.—The Secretary shall 

14 establish a fund to purchase traditional and lo15 cally-grown food, designated by region, for re16 cipients of food distributed under this sub17 section. 

18 ‘‘(B) NATIVE AMERICAN PRODUCERS.— 

19 For recipients of food distributed under sub20 paragraph (A), at least 50 percent shall be pro21 duced by Native American farmers, ranchers, 

22 and producers. 

23 ‘‘(C) DEFINITION OF TRADITIONAL AND

24 LOCALLY GROWN.—The Secretary, in conjunc25 tion with the Indian Tribal Organizations, will 
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1 determine the definition of traditional and lo2 cally-grown. 

3 ‘‘(D) AUTHORIZATION OF APPROPRIA4 TIONS.—There is authorized to be appropriated 

5 to the Secretary $5,000,000 for each of the fis6 cal years 2008 through 2012 to carry out sub7 paragraph (A).’’. 

8 (b) FDPIR FOOD PACKAGE.—Not later than 180 

9 days after the date of enactment of this Act, the Secretary 

10 of Agriculture shall submit to the Committee on Agri11 culture of the House of Representatives and the Com12 mittee on Agriculture, Nutrition, and Forestry of the Sen13 ate a report that describes— 

14 (1) how the Secretary derives the process for 

15 determining the food package under the Food Dis16 tribution Program on Indian Reservations estab17 lished under section 4(b) of the Food Stamp Act of 

18 1977 (7 U.S.C. 2013(b)) (referred to in this sub19 section as the ‘‘food package’’); 

20 (2) the extent to which the food package— 

21 (A) conforms (or fails to conform) to the 

22 2005 Dietary Guidelines for Americans pub23 lished under section 301 of the National Nutri24 tion Monitoring and Related Research Act of 

25 1990 (7 U.S.C. 5341); 
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1 (B) addresses (or fails to address) the nu2 tritional and health challenges that are specific 

3 to Native Americans; and 

4 (C) addresses (or fails to address) the nu5 tritional needs of low-income Native Americans, 

6 compared to the Secure Supplemental Nutrition 

7 Assistance Program; 

8 (3) any plans of the Secretary to revise and up9 date the food package to conform with the most re10 cent Dietary Guidelines for Americans, including 

11 any costs associated with the planned changes; and 

12 (4) if the Secretary does not plan changes to 

13 the food package, the rationale of the Secretary for 

14 retaining the food package. 

15 SEC. 4005. EXCLUDING COMBAT RELATED PAY FROM 

16 COUNTABLE INCOME. 

17 Section (5)(d) of the Food Stamp Act of 1977 (7 

18 U.S.C. 2014(d)) is amended— 

19 (1) by striking ‘‘and (18)’’, and inserting 

20 ‘‘(18)’’, and 

21 (2) by inserting before the period at the end the 

22 following: ‘‘and (19) any additional payment received 

23 under Chapter 5 of title 37, United States Code, by 

24 (or as an allotment to or transfer from) a member 

25 of the United States Armed Forces deployed to a 
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1 designated combat zone for the duration of the 

2 member’s deployment to or service in a combat zone 

3 if the additional pay was not received immediately 

4 prior to serving in that or another combat zone.’’. 

5 SEC. 4006. INCREASING THE STANDARD DEDUCTION. 

6 Section (5)(e)(1) of the Food Stamp Act of 1977 (7 

7 U.S.C. 2014(e)(1)) is amended— 

8 (1) in subparagraph (A)(ii) by striking ‘‘not 

9 less than $134’’ and all that follows through the pe10 riod at the end, and inserting the following: ‘‘not 

11 less than $145, $248, $205, and $128, respectively. 

12 On October 1, 2008, and each October 1 thereafter, 

13 such standard deduction shall be an amount that is 

14 equal to the amount from the previous fiscal year 

15 adjusted to the nearest lower dollar increment to re16 flect changes in the Consumer Price Index for All 

17 Urban Consumers published by the Bureau of Labor 

18 Statistics, for items other than food, for the 12 

19 months ending the preceding June 30.’’; and 

20 (2) in subparagraph (B)(ii) by striking ‘‘not 

21 less than $269.’’ and inserting the following: ‘‘not 

22 less than $291. On October 1, 2008, and each Octo23 ber 1 thereafter, such standard deduction shall be 

24 an amount that is equal to the amount of the pre25 vious fiscal year adjusted to the nearest dollar incre-
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1 ment to reflect changes in the Consumer Price Index 

2 for All Urban Consumers published by the Bureau 

3 of Labor Statistics, for items other than food, for 

4 the 12 months ending the preceding June 30.’’. 

5 SEC. 4007. EXCLUDING DEPENDENT CARE EXPENSES. 

6 Section (5)(e)(3)(A) of the Food Stamp Act of 1977 

7 (7 U.S.C. 2014(e)(3)(A)) is amended by striking ‘‘, the 

8 maximum allowable level of which shall be $200 per month 

9 for each dependent child under 2 years of age and $175 

10 per month for each other dependent,’’. 

11 SEC. 4008. ADJUSTING COUNTABLE RESOURCES FOR IN12 FLATION. 

13 Section (5)(g) of the Food Stamp Act of 1977 (7 

14 U.S.C. 2014(g)) is amended— 

15 (1) by striking ‘‘(g)(1) The Secretary’’ and in16 serting the following: 

17 ‘‘(g) ALLOWABLE FINANCIAL RESOURCES.— 

18 ‘‘(1) TOTAL AMOUNT.— 

19 ‘‘(A) IN GENERAL.—The Secretary’’. 

20 (2) in subparagraph (A) (as so designated by 

21 paragraph (1))— 

22 (A) by inserting ‘‘(as adjusted in accord23 ance with subparagraph (B))’’ after ‘‘$2,000’’; 

24 and 
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1 (B) by inserting ‘‘(as adjusted in accord2 ance with subparagraph (B))’’ after ‘‘$3,000’’; 

3 and 

4 (3) by adding at the end the following: 

5 ‘‘(B) ADJUSTMENT FOR INFLATION.— 

6 ‘‘(i) IN GENERAL.—Beginning on Oc7 tober 1, 2007, and each October 1 there8 after, the amounts in subparagraph (A) 

9 shall be adjusted to the nearest $100 in10 crement to reflect changes for the 12- 

11 month period ending the preceding June in 

12 the Consumer Price Index for All Urban 

13 Consumers published by the Bureau of 

14 Labor Statistics of the Department of 

15 Labor. 

16 ‘‘(ii) REQUIREMENT.—Each adjust17 ment under clause (i) shall be based on the 

18 unrounded amount for the prior 12-month 

19 period.’’. 

20 SEC. 4009. EXCLUDING EDUCATION ACCOUNTS FROM 

21 COUNTABLE INCOME. 

22 Section (5)(g) of the Food Stamp Act of 1977 (7 

23 U.S.C. 2014(g)) is amended by adding at the end the fol24 lowing: 
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1 ‘‘(7) EXCLUSION OF EDUCATION ACCOUNTS

2 FROM COUNTABLE RESOURCES.— 

3 ‘‘(A) MANDATORY EXCLUSIONS.—The Sec4 retary shall exclude from financial resources 

5 under this subsection the value of any funds in 

6 a qualified tuition program described in section 

7 529 of the Internal Revenue Code of 1986 or 

8 in a Coverdell education savings account under 

9 section 530 of that Code. 

10 ‘‘(B) DISCRETIONARY EXCLUSIONS.—The 

11 Secretary may also exclude from financial re12 sources under this subsection the value of any 

13 program or account included in any successor 

14 or similar provision that is enacted and deter15 mined to be exempt from taxation under the In16 ternal Revenue Code of 1986.’’. 

17 SEC. 4010. EXCLUDING RETIREMENT ACCOUNTS FROM 

18 COUNTABLE INCOME. 

19 Section (5)(g) of the of the Food Stamp Act of 1977 

20 (7 U.S.C. 2014(g)), as amended by section 4009, is 

21 amended— 

22 (1) in subsection (g)(2)(B)(v) by striking ‘‘or 

23 retirement account (including an individual ac24 count)’’ and inserting ‘‘account’’; and 

25 (2) adding at the end the following: 
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1 ‘‘(8) EXCLUSION OF RETIREMENT ACCOUNTS

2 FROM COUNTABLE RESOURCES.— 

3 ‘‘(A) MANDATORY EXCLUSIONS.—The Sec4 retary shall exclude from financial resources 

5 under this subsection the value of any funds in 

6 a plan, contract, or account as described in sec7 tion 401(a), 403(a), 403(b), 408, 408A, 457(b), 

8 or 501(c)(18) of the Internal Revenue Code of 

9 1986 and the value of funds in a Federal Thrift 

10 Savings Plan account as provided section 8439 

11 of title 5, United States Code. 

12 ‘‘(B) DISCRETIONARY EXCLUSIONS.— 

13 ‘‘(i) The Secretary may exclude from 

14 financial resources under this subsection 

15 any other retirement plans, contracts, or 

16 accounts that have been determined to be 

17 tax qualified retirement plans, contracts, 

18 or accounts, under the Internal Revenue 

19 Code of 1986. 

20 ‘‘(ii) The Secretary may also exclude 

21 from financial resources under this sub22 section the value of any program or ac23 count included in any successor or similar 

24 provision that is enacted and determined to 
331 

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1 be exempt from taxation under the Inter2 nal Revenue Code of 1986.’’. 

3 SEC. 4011. DEOBLIGATE FOOD STAMP COUPONS. 

4 (a) IN GENERAL.—Section 7 of the Food Stamp Act 

5 of 1977 (7 U.S.C. 2016) is amended— 

6 (1) by striking the section designation and 

7 heading and all that follows through ‘‘subsection (j)) 

8 shall be’’ and inserting the following: 

9 ‘‘SEC. 7. ISSUANCE AND USE OF BENEFITS. 

10 ‘‘(a) IN GENERAL.—Except as provided in subsection 

11 (j), EBT cards shall be’’. 

12 (2) in subsection (b)— 

13 (A) by striking ‘‘(b) Coupons’’ and insert14 ing the following: 

15 ‘‘(b) USE.—Benefits’’; and 

16 (B) by striking ‘‘: Provided further’’ and all 

17 that follows through ‘‘denominations issued’’; 

18 (3) in subsection (c)— 

19 (A) by striking ‘‘(c) Coupons’’ and insert20 ing the following: 

21 ‘‘(c) DESIGN.— 

22 ‘‘(1) IN GENERAL.—EBT cards’’; 

23 (B) in the 1st sentence by striking ‘‘and 

24 define their denomination’’; and 
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1 (C) by striking the 2d sentence and insert2 ing the following: 

3 ‘‘(2) PROHIBITION.—The name of any public 

4 official shall not appear on any EBT card.’’; 

5 (4) by striking subsection (d); 

6 (5) in subsection (e)— 

7 (A) by striking ‘‘coupons’’ each place it ap8 pears and inserting ‘‘benefits’’; and 

9 (B) by striking ‘‘coupon issuers’’ each 

10 place it appears and inserting ‘‘benefit issuers’’; 

11 (6) in subsection (f)— 

12 (A) by striking ‘‘coupons’’ each place it ap13 pears and inserting ‘‘benefits’’; 

14 (B) by striking ‘‘coupon issuer’’ and insert15 ing ‘‘benefit issuer’’; and 

16 (C) by striking ‘‘section 11(e)(20)’’ and all 

17 that follows through the period and inserting 

18 ‘‘section 11(e)(19).’’; 

19 (7) by amending subsection (g) to read as fol20 lows: 

21 ‘‘(g) BENEFIT SYSTEM.— 

22 ‘‘(1) COST.—The cost of documents or systems 

23 that may be required by subsection (i) may not be 

24 imposed upon a retail food store participating in the 

25 Secure Supplemental Nutrition Assistance Program. 
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1 ‘‘(2) DEVALUATION AND TERMINATION OF

2 ISSUANCE OF PAPER COUPONS.— 

3 ‘‘(A) COUPON ISSUANCE.—Beginning on 

4 the effective date of this subsection, no State 

5 shall issue any coupon, stamp, certificate, or 

6 authorization card to a household that receives 

7 benefits under this Act. 

8 ‘‘(B) EBT CARDS.—Beginning 1 year after 

9 the effective date of this subsection, only an 

10 EBT card issued under subsection (i) shall be 

11 eligible for exchange at any retail food store. 

12 ‘‘(C) DE-OBLIGATION OF COUPONS.—Cou13 pons not redeemed in the 1-year period begin14 ning on the effective date of this subsection will 

15 no longer be an obligation of the Federal Gov16 ernment and shall not be redeemable.’’. 

17 (8) in subsection (h)(1) by striking ‘‘coupons’’ 

18 and inserting ‘‘benefits’’; 

19 (9) in subsection (j)— 

20 (A) in paragraph (2)(A)(ii) by striking 

21 ‘‘printing, shipping, and redeeming coupons’’ 

22 and inserting ‘‘issuing and redeeming benefits’’; 

23 and 

24 (B) in paragraph (5) by striking ‘‘coupon’’ 

25 and inserting ‘‘benefit’’; and 
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1 (10) in subsection (k)— 

2 (A) by striking ‘‘coupons in the form of’’ 

3 each place it appears and inserting ‘‘benefits in 

4 the form of’’; and 

5 (B) by striking ‘‘a coupon issued in the 

6 form of’’ each place it appears and inserting 

7 ‘‘benefits in the form of’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) Section 3 of the Food Stamp Act of 1977 

10 (7 U.S.C. 2012) is amended— 

11 (A) in subsection (a) by striking ‘‘coupons’’ 

12 and inserting ‘‘benefits’’; 

13 (B) by amending subsection (b) to read as 

14 follows: 

15 ‘‘(b) ‘Benefit’ means the value of assistance provided 

16 under this Act to a household by means of an electronic 

17 benefit transfer under section 7(i), or other means of pro18 viding assistance, as determined by the Secretary.’’; 

19 (C) in the 1st sentence of subsection (c) by 

20 striking ‘‘authorization cards’’ and inserting 

21 ‘‘benefits’’; 

22 (D) in subsection (d) by striking ‘‘or ac23 cess device’’ and all that follows through ‘‘num24 ber’’; 

25 (E) in subsection (e)— 
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1 (i) by striking ‘‘coupon issuer’’ and in2 serting ‘‘benefit issuer’’; and 

3 (ii) by striking ‘‘coupons’’ and insert4 ing ‘‘benefits’’; 

5 (F) by inserting after subsection (f) the 

6 following: 

7 ‘‘(f–1) EBT CARD.—The term ‘EBT card’ means an 

8 electronic benefit transfer card issued under section 7(i).’’; 

9 (G) in subsection (i)(5)(D) by striking 

10 ‘‘coupons’’ and inserting ‘‘benefits’’; and 

11 (H) in subsection (t) by inserting ‘‘includ12 ing point of sale devices,’’ after ‘‘other means of 

13 access’’. 

14 (2) Section 4(a) of the Food Stamp Act of 

15 1977 (7 U.S.C. 2013(a)) is amended— 

16 (A) by striking ‘‘coupons’’ each place it ap17 pears and inserting ‘‘benefits’’; and 

18 (B) by striking ‘‘coupons issued’’ and in19 serting ‘‘benefits issued’’. 

20 (3) Section 5(i)(2)(E) of the Food Stamp Act 

21 of 1977 (7 U.S.C. 2014(i)(2)(E)) is amended by 

22 striking ‘‘, as defined in section 3(i) of this Act,’’. 

23 (4) Section 6(b)(1) of the Food Stamp Act of 

24 1977 (7 U.S.C. 2015(b)(1)) is amended— 
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1 (A) in subparagraph (B) by striking ‘‘cou2 pons or authorization cards’’ and inserting 

3 ‘‘benefits’’; and 

4 (B) by striking ‘‘coupons’’ each place it ap5 pears and inserting ‘‘benefits’’. 

6 (5) Section 7(j)(5) is amended by striking ‘‘cou7 pon’’ and inserting ‘‘benefit’’. 

8 (6) Section 8(b) of the Food Stamp Act of 

9 1977 (7 U.S.C. 2017(b)) is amended by striking ‘‘, 

10 whether through coupons, access devices, or other11 wise’’. 

12 (7) Section 9 of the Food Stamp Act of 1977 

13 (7 U.S.C. 2018) is amended— 

14 (A) by striking ‘‘coupons’’ each place it ap15 pears and inserting ‘‘benefits’’; and 

16 (B) in subsection (a)— 

17 (i) in paragraph (1) by striking ‘‘cou18 pon’’ and inserting ‘‘benefit’’; and 

19 (ii) in paragraph (3) by striking ‘‘cou20 pons, or to redeem’’. 

21 (8) Section 10 of the Food Stamp Act of 1977 

22 (7 U.S.C. 2019) is amended— 

23 (A) by striking the section designation and 

24 heading and all that follows through ‘‘Regula25 tions’’ and inserting the following: 
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1 ‘‘SEC. 10. REDEMPTION OF BENEFITS. 

2 ‘‘Regulations’’; and 

3 (B) by striking ‘‘coupons’’ each place it ap4 pears and inserting ‘‘benefits’’. 

5 (9) Section 11 of the Food Stamp Act of 1977 

6 (7 U.S.C. 2020) is amended— 

7 (A) in subsection (e)— 

8 (i) in paragraph (15) by striking 

9 ‘‘when using its authorization card in order 

10 to receive its coupons’’ and inserting 

11 ‘‘when receiving benefits’’; and 

12 (ii) in paragraph (19) by striking 

13 ‘‘that,’’ and all that follows through ‘‘para14 graph;’’ and inserting ‘‘that eligible house15 holds may be required to present photo16 graphic identification cards in order to re17 ceive their benefits.’’; 

18 (B) in subsection (h) by striking ‘‘coupon 

19 or coupons’’ and inserting ‘‘benefits’’; 

20 (C) by striking ‘‘coupon’’ each place it ap21 pears and inserting ‘‘benefit’’; and 

22 (D) by striking ‘‘coupons’’ each place it 

23 appears and inserting ‘‘benefits’’. 

24 (10) Section 13 of the Food Stamp Act of 1977 

25 (7 U.S.C. 2022) is amended by striking ‘‘coupons’’ 

26 each place it appears and inserting ‘‘benefits’’. 
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1 (11) Section 15 of the Food Stamp Act of 1977 

2 (7 U.S.C. 2024) is amended— 

3 (A) in subsection (a) by striking ‘‘coupons’’ 

4 and inserting ‘‘benefits’’; 

5 (B) in subsection (b)(1)— 

6 (i) by striking ‘‘coupons’’ each place it 

7 appears and inserting ‘‘benefits’’; 

8 (ii) by striking ‘‘coupons or authoriza9 tion cards’’ and inserting ‘‘benefits’’; and 

10 (iii) by striking ‘‘access device’’ each 

11 place it appears and inserting ‘‘benefit’’; 

12 (C) in subsection (c) by striking ‘‘coupons’’ 

13 each place it appears and inserting ‘‘benefits’’; 

14 (D) in subsection (d) by striking ‘‘Cou15 pons’’ and inserting ‘‘Benefits’’; 

16 (E) in subsections (e) and (f) by striking 

17 ‘‘coupon’’ each place it appears and inserting 

18 ‘‘benefit’’; and 

19 (F) in subsection (g) by striking ‘‘coupon, 

20 authorization cards or access devices’’ and in21 serting ‘‘benefits’’; and 

22 (12) Section 16(a) of the Food Stamp Act of 

23 1977 (7 U.S.C. 2025(a)) is amended by striking 

24 ‘‘coupons’’ each place it appears and inserting ‘‘ben25 efits’’. 
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1 (13) Section 17 of the Food Stamp Act of 1977 

2 (7 U.S.C. 2026) is amended— 

3 (A) in subsection (a)(2) by striking ‘‘cou4 pon’’ and inserting ‘‘benefit’’; 

5 (B) in subsection (b)(1)— 

6 (i) in subparagraph (B)(v)— 

7 (I) by striking ‘‘countersigned 

8 food coupons or similar’’; and 

9 (II) by striking ‘‘food coupons’’ 

10 and inserting ‘‘EBT cards’’; and 

11 (ii) in subparagraph (C)(i)(I) by strik12 ing ‘‘coupons’’ and inserting ‘‘EBT cards’’; 

13 and 

14 (C) in subsection (j) by striking ‘‘coupon’’ 

15 and inserting ‘‘benefit’’. 

16 (14) Section 21 of the Food Stamp Act of 1977 

17 (7 U.S.C. 2030) is amended— 

18 (A) in subsection (d)(3)— 

19 (i) by striking ‘‘food coupons’’ and in20 serting ‘‘benefits’’; and 

21 (ii) by striking ‘‘food stamp benefits’’ 

22 and inserting ‘‘benefits’’. 

23 (15) Section 22 of the Food Stamp Act of 1977 

24 (7 U.S.C. 2031) is amended— 
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1 (A) by striking ‘‘food coupons’’ each place 

2 it appears and inserting ‘‘benefits’’; 

3 (B) by striking ‘‘coupons’’ each place it ap4 pears and inserting ‘‘benefits’’; and 

5 (C) in subsection (g)(1)(A) by striking 

6 ‘‘coupon’’ and inserting ‘‘benefit’’. 

7 (c) REFERENCES IN OTHER LAWS, DOCUMENTS, 

8 AND RECORDS OF THE UNITED STATES.—In any law (ex9 cluding the Food Stamp Act of 1977), regulation, rule, 

10 document, or record of the United States, a reference to 

11 ‘‘coupon’’, ‘‘authorization card’’, or ‘‘other access device’’ 

12 as used in the Food Stamp Act of 1977 as in effect before 

13 the date of the enactment of this Act shall be deemed to 

14 be a reference to ‘‘benefit’’ as defined in such Act as in 

15 effect after the date of the enactment of this Act. 

16 SEC. 4012. ALLOW FOR THE ACCRUAL OF BENEFITS. 

17 Section 7(i) of the Food Stamp Act of 1977 (7 U.S.C. 

18 2016(i)) is amended by adding at the end the following: 

19 ‘‘(12) RECOVERING ELECTRONIC BENEFITS.— 

20 ‘‘(A) A State agency may recover benefits 

21 from a household’s electronic benefits account 

22 because of inactivity in the account after the 

23 household has not accessed the account the 

24 lesser of— 
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1 ‘‘(i) 3 months during which the ac2 count has continuously had a balance in 

3 excess of $1,000, adjusted for changes in 

4 the thrifty food plan since June 2007; or 

5 ‘‘(ii) 12 months. 

6 ‘‘(B) A household whose benefits are recov7 ered under subparagraph (A) shall receive no8 tice and shall have the benefits made available 

9 again upon a request made during a period of 

10 not less than 12 months after the recovery.’’. 

11 SEC. 4013. INCREASING THE MINIMUM BENEFIT. 

12 Section 8(a) of the Food Stamp Act of 1977 (7 

13 U.S.C. 2017(a)) is amended by striking ‘‘$10 per month’’ 

14 and inserting ‘‘10 percent of the thrifty food plan for a 

15 household containing 1 member, as determined by the Sec16 retary under section 3(o)’’. 

17 SEC. 4014. STATE OPTION FOR TELEPHONIC SIGNATURE. 

18 Section 11(e)(2)(C) of the Food Stamp Act of 1977 

19 (7 U.S.C. 2020(e)(2)(C)) is amended— 

20 (1) by inserting ‘‘(i)’’ after ‘‘(C)’’; and 

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

22 ‘‘(ii) A State agency may establish a sys23 tem by which an applicant household may sign 

24 an application through a recorded verbal assent 

25 over the telephone. Any such system shall— 
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1 ‘‘(I) record for future reference the 

2 household member’s verbal assent and the 

3 information to which assent was given; 

4 ‘‘(II) include effective safeguards 

5 against impersonation, identity theft, or in6 vasions of privacy; 

7 ‘‘(III) not deny or interfere with the 

8 right of the household to apply in writing; 

9 ‘‘(IV) promptly send the household 

10 member a written copy of the application, 

11 with instructions on a simple procedure for 

12 correcting any errors or omissions; 

13 ‘‘(V) comply with paragraph (1)(B); 

14 ‘‘(VI) satisfy all requirements for a 

15 signature on an application under this Act 

16 and other laws applicable to the Secure 

17 Supplemental Nutrition Assistance Pro18 gram, with the date on which the house19 hold member provides verbal assent effec20 tive as the date of application for all pur21 poses; and 

22 ‘‘(VII) comply with such other stand23 ards as the Secretary may establish.’’. 
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1 SEC. 4015. REVIEW OF MAJOR CHANGES IN PROGRAM DE2 SIGN. 

3 (a) PROHIBITION.—Section 11(e)(6) of the Food 

4 Stamp Act of 1977 (7 U.S.C. 2020(e)(6)) is amended— 

5 (1) in subparagraph (A) by striking ‘‘and’’ at 

6 the end; 

7 (2) by striking subparagraph (B) and inserting 

8 the following: 

9 ‘‘(B) except as provided in section 5(h)(4), 

10 only State employees employed in accordance 

11 with the current standards for a Merit System 

12 of Personnel Administration, or any standards 

13 later prescribed by the Office of Personnel 

14 Management pursuant to section 208 of the 

15 Intergovernmental Personnel Act of 1970 (42 

16 U.S.C. 4728) modifying or superseding such 

17 standards relating to the establishment and 

18 maintenance of personnel standards on a merit 

19 basis, shall undertake such certifications and 

20 shall— 

21 ‘‘(i) represent the State agency in any 

22 official communications with a prospective 

23 applicant, applicant, or recipient household 

24 regarding their application or participa25 tion, except that a nonprofit organization 

26 may assist a household under paragraph 
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1 (1) through activities allowable under sec2 tion 16(a)(4); 

3 ‘‘(ii) participate in making any deter4 minations relating to a household’s sub5 stantive or procedural compliance with the 

6 requirements of this Act or implementing 

7 regulations, including the adequacy of the 

8 household’s application or of verification or 

9 other information the household has sub10 mitted in support of that application; or 

11 ‘‘(iii) participate in making any other 

12 determinations required under this sub13 section; 

14 except that nothing in this subparagraph shall 

15 prevent a State agency from contracting for 

16 automated systems, issuance services or pro17 gram information activities reimbursed under 

18 paragraph (2), (3), (4), or (6) of section 16(a) 

19 or under section 16(g) or for assisting in the 

20 verification of an applicant’s identity; and 

21 ‘‘(C) the State agency shall not use any 

22 Federal funds— 

23 ‘‘(i) to implement, to perform, or to 

24 carry out any contract that does not com-
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1 ply with the requirements in effect under 

2 subparagraph (B); or 

3 ‘‘(ii) to pay any cost associated with 

4 the termination, breach, or full or partial 

5 abrogation, of any contract that does not 

6 comply with the requirements in effect 

7 under such subparagraph;’’. 

8 (b) WAIVERS.—Section 17(b)(1)(B)(iv)(III)(ff) of the 

9 Food Stamp Act of 1977 (7 U.S.C. 

10 2026(b)(1)(B)(iv)(III)(ff)) is amended by inserting ‘‘or 

11 11(e)(6)(B)’’ before the semicolon at the end. 

12 (c) PROJECTS.—Section 26(f)(3)(E) of the Food 

13 Stamp Act of 1977 (7 U.S.C. 2035(f)(3)(E)) is amended 

14 by inserting ‘‘(6)(B),’’ after ‘‘paragraphs’’. 

15 (d) DISASTERS.—Section 5(h) of the Food Stamp 

16 Act of 1977 (7 U.S.C. 2014(h)) is amended by inserting 

17 at the end: 

18 ‘‘(4) The Secretary may authorize a state agen19 cy, on a temporary basis, to use employees or indi20 viduals that do not meet the standards prescribed 

21 under section 11(e)(6)(B) in order to determine eli22 gibility for a disaster food stamp program under this 

23 subsection.’’. 

24 (e) DISALLOWANCE OF FUNDS.—No funds shall be 

25 available under any appropriations act for implementing 
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1 or continuing any contract that does not comply with sec2 tion 11(e)(6)(B) of the Food Stamp Act of 1977 (7 U.S.C. 

3 2020(e)(6)(B)) as amended by subsection (a) nor for any 

4 costs associated with the termination or full or partial ab5 rogation of such contract. 

6 (f) TRANSITION PERIOD.—Subsection (e) shall not 

7 apply to the costs of implementing, continuing, or renego8 tiating any contract concluded before January 1, 2007, 

9 (but shall apply to any costs associated with the termi10 nation or full or partial abrogation of such contract) until 

11 the first day of the first month beginning at least 120 

12 days after the date of enactment of this Act. 

13 SEC. 4016. GRANTS FOR SIMPLE APPLICATION AND ELIGI14 BILITY DETERMINATION SYSTEMS AND IM15 PROVED ACCESS TO BENEFITS. 

16 Section 11(t)(1) of the Food Stamp Act of 1977 (7 

17 U.S.C. 2020(t)(1)) is amended by striking ‘‘2007’’ and in18 serting ‘‘2012’’. 

19 SEC. 4017. CIVIL MONEY PENALTIES AND DISQUALIFICA20 TION OF RETAIL FOOD STORES AND WHOLE21 SALE FOOD CONCERNS. 

22 Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 

23 2021) is amended— 
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•HR 2419 EH1S 

1 (1) by striking the section heading and all that 

2 follows through ‘‘(a) Any approved’’, and inserting 

3 the following: 

4 ‘‘SEC. 12. CIVIL MONEY PENALTIES AND DISQUALIFICATION 

5 OF RETAIL FOOD STORES AND WHOLESALE 

6 FOOD CONCERNS. 

7 ‘‘(a) DISQUALIFICATION.— 

8 ‘‘(1) IN GENERAL.—An approved’’; 

9 (2) in subsection (a)— 

10 (A) in the 1st sentence by striking 

11 ‘‘$10,000 for each violation’’ and all that fol12 lows through the period at the end, and insert13 ing ‘‘$100,000 for each violation.’’; and 

14 (B) in the 2d sentence— 

15 (i) by striking ‘‘Regulations’’ and in16 serting the following: 

17 ‘‘(2) REGULATIONS.—Regulations’’; 

18 (ii) by striking ‘‘finding of a violation 

19 and the’’ and inserting ‘‘finding of a viola20 tion,’’; 

21 (iii) by inserting a comma after ‘‘dis22 qualification of’’; and 

23 (iv) by striking ‘‘a retail store’’ and 

24 inserting ‘‘and the assessment of a civil 

25 money penalty against, a retail store’’; 
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1 (3) in subsection (b)— 

2 (A) by striking ‘‘(b) Disqualification’’ and 

3 all that follows through ‘‘shall be—’’, and in4 serting the following: 

5 ‘‘(b) PERIOD OF DISQUALIFICATION.—Subject to 

6 subsection (c), a disqualification shall be—’’; 

7 (B) in paragraph (1) by striking ‘‘of no 

8 less than six months nor more than five years’’ 

9 and inserting ‘‘not to exceed 5 years’’; 

10 (C) in paragraph (2) by striking ‘‘of no 

11 less than twelve months nor more than ten 

12 years’’ and inserting ‘‘not to exceed 10 years’’; 

13 (D) in paragraph (3)— 

14 (i) in subparagraph (B)— 

15 (I) by striking ‘‘coupons or traf16 ficking in coupons or authorization 

17 cards’’ each place it appears, and in18 serting ‘‘program access devices or 

19 benefit instruments or trafficking in 

20 program access devices or benefit in21 struments’’; and 

22 (II) by inserting ‘‘or a finding of 

23 the unauthorized redemption, use, 

24 transfer, acquisition, alteration, or 

25 possession of benefits or access de-
349 

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1 vices’’ after ‘‘concern’’ the 1st place it 

2 appears; 

3 (4) in paragraph (3)(C) by striking ‘‘and’’ at 

4 the end; 

5 (5) in subsection (c)— 

6 (A) by striking ‘‘(c) The action’’ and in7 serting the following: 

8 ‘‘(c) TREATMENT OF DISQUALIFICATION AND PEN9 ALTY DETERMINATIONS.—The action’’; and 

10 (B) by striking ‘‘coupons’’ and inserting 

11 ‘‘benefits’’; 

12 (6) in subsection (d) by striking ‘‘coupons’’ in 

13 each place it appears and inserting ‘‘benefits’’; 

14 (7) in subsection (f) by striking ‘‘food coupons’’ 

15 and inserting ‘‘benefits’’; 

16 (8) by redesignating subsections (c) through (g) 

17 as subsections (d) through (h), respectively; 

18 (9) inserting after subsection (b) the following: 

19 ‘‘(c) In addition to a disqualification under subsection 

20 (b), the Secretary may assess a civil monetary penalty of 

21 up to $100,000;’’; and 

22 (10) by adding at the end: 

23 ‘‘(i) The Secretary shall, in consultation with the In24 spector General of the Department of Agriculture, provide 

25 for procedures by which the processing of benefit redemp-
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•HR 2419 EH1S 

1 tions for certain retail food stores and wholesale food con2 cerns may be immediately suspended pending administra3 tive action to disqualify such a store or concern. Under 

4 the procedures prescribed pursuant to this subsection, if 

5 the Secretary, in consultation with the Inspector General, 

6 determines that a retail food store or wholesale food con7 cern is engaged in flagrant violations of this Act or the 

8 regulations issued pursuant to this Act, unsettled benefits 

9 that have been redeemed by the retail food store or whole10 sale food concern may be suspended and, if the suspension 

11 is upheld, subject to forfeiture pursuant to section 12(g). 

12 If the disqualification action is not upheld, suspended 

13 funds held by the Secretary shall be released to such store 

14 or such concern. The Secretary shall not be liable for the 

15 value of any interest on funds suspended under this sub16 section.’’. 

17 SEC. 4018. MAJOR SYSTEMS FAILURES. 

18 Section 13(b) of the Food Stamp Act of 1977 (7 

19 U.S.C. 2022(b)) is amended by adding at the end the fol20 lowing: 

21 ‘‘(5) OVER ISSUANCES CAUSED BY SYSTEMIC

22 STATE ERRORS.— 

23 ‘‘(A) IN GENERAL.—If the Secretary deter24 mines that a State agency over issued benefits 

25 to a substantial number of households in a fis-
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•HR 2419 EH1S 

1 cal year as a result of a major systemic error 

2 by the State agency, as determined by the Sec3 retary, the Secretary may prohibit the State 

4 agency from collecting these over issuances 

5 from some or all households. 

6 ‘‘(B) PROCEDURES.— 

7 ‘‘(i) INFORMATION REPORTING BY

8 STATES.—Every State agency shall provide 

9 to the Secretary all information requested 

10 by the Secretary concerning the issuance of 

11 benefits to households by the State agency 

12 in the applicable fiscal year. 

13 ‘‘(ii) FINAL DETERMINATION.—After 

14 reviewing relevant information provided by 

15 a State agency, the Secretary shall make a 

16 final determination— 

17 ‘‘(I) whether the State agency 

18 over issued benefits to a substantial 

19 number of households as a result of a 

20 systemic error in the applicable fiscal 

21 year; and 

22 ‘‘(II) as to the amount of the 

23 over issuance in the applicable fiscal 

24 year for which the State agency is lia25 ble. 
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1 ‘‘(iii) ESTABLISHING A CLAIM.—Upon 

2 determining under clause (ii) that a State 

3 agency has over issued benefits to house4 holds due to a major systemic error deter5 mined under subparagraph (A), the Sec6 retary shall establish a claim against the 

7 State agency equal to the value of the over 

8 issuance caused by the systemic error. 

9 ‘‘(iv) ADMINISTRATIVE AND JUDICIAL

10 REVIEW.—Administrative and judicial re11 view, as provided in section 14, shall apply 

12 to the final determinations by the Sec13 retary under clause (ii). 

14 ‘‘(v) REMISSION TO THE SEC15 RETARY.— 

16 ‘‘(I) DETERMINATION NOT AP17 PEALED.—If the determination of the 

18 Secretary under clause (ii) is not ap19 pealed, the State agency shall, as soon 

20 as practicable, remit to the Secretary 

21 the dollar amount specified in the 

22 claim under clause (iii). 

23 ‘‘(II) DETERMINATION AP24 PEALED.—If the determination of the 

25 Secretary under clause (ii) is ap-
353 

•HR 2419 EH1S 

1 pealed, upon completion of adminis2 trative and judicial review under 

3 clause (iv), and a finding of liability 

4 on the part of the State, the appealing 

5 State agency shall, as soon as prac6 ticable, remit to the Secretary a dollar 

7 amount subject to the finding of the 

8 administrative and judicial review. 

9 ‘‘(vi) ALTERNATIVE METHOD OF COL10 LECTION.— 

11 ‘‘(I) IN GENERAL.—If a State 

12 agency fails to make a payment under 

13 clause (v) within a reasonable period 

14 of time, as determined by the Sec15 retary, the Secretary may reduce any 

16 amount due to the State agency under 

17 any other provision of this Act by the 

18 amount due. 

19 ‘‘(II) ACCRUAL OF INTEREST.— 

20 During the period of time determined 

21 by the Secretary to be reasonable 

22 under subclause (I), interest in the 

23 amount owed shall not accrue. 

24 ‘‘(vii) LIMITATION.—Any liability 

25 amount established under section 
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•HR 2419 EH1S 

1 16(c)(1)(C) shall be reduced by the 

2 amount of the claim established under this 

3 subparagraph.’’. 

4 SEC. 4019. FUNDING OF EMPLOYMENT AND TRAINING PRO5 GRAMS. 

6 Section 16(h)(1) of the Food Stamp Act of 1977 (7 

7 U.S.C. 2025(h)(1)) is amended— 

8 (1) in subparagraph (A)(vii) by striking ‘‘fiscal 

9 years 2002 through 2007’’ and inserting ‘‘fiscal 

10 years 2008 through 2012’’; and 

11 (2) in subparagraph (E)(i) by striking ‘‘fiscal 

12 years 2002 through 2007’’ and inserting ‘‘fiscal 

13 years 2008 through 2012’’. 

14 SEC. 4020. REDUCTIONS IN PAYMENTS FOR ADMINISTRA15 TIVE COSTS. 

16 Section 16(k)(3) of the Food Stamp Act of 1977 (7 

17 U.S.C. 2025(k)(3)) is amended— 

18 (1) in subparagraph (A) by striking ‘‘2007’’ 

19 and inserting ‘‘2012’’; and 

20 (2) in subparagraph (B)(ii) by striking ‘‘2007’’ 

21 and inserting ‘‘2012’’. 

22 SEC. 4021. CASH PAYMENT PILOT PROJECTS. 

23 Section 17(b)(1)(B)(vi) of the Food Stamp Act of 

24 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is amended by striking 

25 ‘‘2007’’ and inserting ‘‘2012’’. 
355 

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1 SEC. 4022. FINDINGS OF CONGRESS REGARDING SECURE 

2 SUPPLEMENTAL NUTRITION ASSISTANCE 

3 PROGRAM NUTRITION EDUCATION. 

4 (a) FINDINGS.—The Congress finds the following: 

5 (1) Nutrition education under the Food Stamp 

6 Act of 1977 plays an essential role in improving the 

7 dietary and physical activity practices of low-income 

8 Americans, helping to reduce food insecurity, pre9 vent obesity, and reduce the risks of chronic disease. 

10 (2) Expert bodies, such as the Institute of Med11 icine, indicate that dietary and physical activity be12 havior change is more likely to result from the com13 bined application of public health approaches and 

14 education than from individual education alone. 

15 (3) State programs are currently implementing 

16 such nutrition education using effective strategies, 

17 including direct education, group activities, and so18 cial marketing. 

19 (b) SUPPORT NUTRITION EDUCATION.—The Sec20 retary of Agriculture should support and encourage the 

21 most effective interventions for nutrition education under 

22 the Food Stamp Act of 1977, including public health ap23 proaches as well as traditional education, to increase the 

24 likelihood that recipients of Secure Supplemental Nutri25 tion Assistance benefits and those who are potentially eli26 gible for such benefits will choose diets and physical activ-
356 

•HR 2419 EH1S 

1 ity practices consistent with the Dietary Guidelines for 

2 Americans. To promote the most effective implementation 

3 of publicly funded programs, State nutrition education ac4 tivities under the Food Stamp Act of 1977 should be co5 ordinated with other federally funded food assistance and 

6 public health programs and should leverage public/private 

7 partnerships to maximize resources and impact. 

8 SEC. 4023. NUTRITION EDUCATION AND PROMOTION INI9 TIATIVE TO ADDRESS OBESITY. 

10 Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 

11 2026) is amended by adding at the end the following: 

12 ‘‘(k) NUTRITION EDUCATION AND PROMOTION INI13 TIATIVE TO ADDRESS OBESITY.— 

14 ‘‘(1) IN GENERAL.—The Secretary shall estab15 lish a demonstration program, to be known as the 

16 ‘Initiative to Address Obesity Among Low-Income 

17 Americans’ (referred to in this subsection as the 

18 ‘Initiative’), to develop and implement solutions to 

19 reduce obesity in the United States. 

20 ‘‘(A) SELECTION.—The Secretary shall so21 licit and competitively select demonstration pro22 posals for strategies to address obesity among 

23 low-income Americans. 

24 ‘‘(B) EVALUATION.—The effectiveness of 

25 these strategies shall be rigorously evaluated to 
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•HR 2419 EH1S 

1 assess the impact on overweight and obesity 

2 among low-income persons and particularly chil3 dren, as well as the feasibility of replicating 

4 these programs in other locations. 

5 ‘‘(C) DISSEMINATION.—Evaluation results 

6 shall be shared broadly to inform policy makers, 

7 service providers, other partners, and the public 

8 in order to promote wide use of successful 

9 strategies. 

10 ‘‘(2) GRANTS.— 

11 ‘‘(A) IN GENERAL.—In carrying out the 

12 Initiative, the Secretary may enter into com13 petitively awarded contracts or cooperative 

14 agreements with, or grants to, public or private 

15 organizations or agencies as defined by the Sec16 retary, for use in accordance with projects that 

17 meet the strategy goals of the Initiative. 

18 ‘‘(B) APPLICATION.—To be eligible to re19 ceive a contract, cooperative agreement, or 

20 grant under this paragraph, an organization 

21 shall submit to the Secretary an application at 

22 such time, in such manner, and containing such 

23 information as the Secretary may require. 
358 

•HR 2419 EH1S 

1 ‘‘(C) SELECTION CRITERIA.—Demonstra2 tion proposals shall be evaluated against pub3 licly disseminated criteria that include— 

4 ‘‘(i) identification of a low-income tar5 get audience that corresponds to individ6 uals living in households with incomes at 

7 or below 185 percent of the poverty level; 

8 ‘‘(ii) incorporation of a scientifically9 based strategy that is designed to improve 

10 diet quality through more healthful food 

11 purchases, preparation, or consumption; 

12 ‘‘(iii) a commitment to a demonstra13 tion plan that allows for a rigorous out14 come evaluation, including data collection; 

15 ‘‘(iv) strategies to improve the nutri16 tional value of food served during school 

17 hours and during after-school hours; 

18 ‘‘(v) innovative ways to provide sig19 nificant improvement to the health and 

20 wellness of children; 

21 ‘‘(vi) other criteria, as determined by 

22 the Secretary. 

23 ‘‘(D) USE OF FUNDS.— 
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1 ‘‘(i) PROHIBITION.—Funds shall not 

2 be used for projects that limit the use of 

3 benefits. 

4 ‘‘(ii) MONITORING AND EVALUA5 TION.—The Secretary may use funds pro6 vided for the Initiative to pay costs associ7 ated with monitoring, evaluation, and dis8 semination of the Initiative’s findings. 

9 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

10 There is authorized to be appropriated to carry out 

11 this subsection $10,000,000 for each of the fiscal 

12 years 2008 through 2012, except that no new grants 

13 may be made under this subsection after September 

14 30, 2012.’’. 

15 SEC. 4024. AUTHORIZATION OF APPROPRIATIONS. 

16 Section 18(a)(1) of the Food Stamp Act of 1977 (7 

17 U.S.C. 2027(a)(1)) is amended by striking ‘‘2003 through 

18 2007’’ and inserting ‘‘2008 through 2012’’. 

19 SEC. 4025. CONSOLIDATED BLOCK GRANTS FOR PUERTO 

20 RICO AND AMERICAN SAMOA. 

21 Section 19(a)(2)(A)(ii) of the Food Stamp Act of 

22 1977 (7 U.S.C. 2028(a)(2)(A)(ii)) is amended in subpara23 graph (A)(ii) by striking ‘‘2007’’ and inserting ‘‘2012’’. 
360 

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1 SEC. 4026. STUDY ON COMPARABLE ACCESS TO SECURE 

2 SUPPLEMENTAL NUTRITION ASSISTANCE 

3 PROGRAM BENEFITS FOR PUERTO RICO. 

4 Section 19 of the Food Stamp Act of 1977 (7 U.S.C. 

5 2028) is amended by adding at the end the following: 

6 ‘‘(e) STUDY.—The Secretary shall conduct a study of 

7 the feasibility and effects of including the Commonwealth 

8 of Puerto Rico under section 3(m), in lieu of providing 

9 the block grant under this section. The study shall in10 clude— 

11 ‘‘(1) an assessment of the administrative, finan12 cial management, and other changes that would be 

13 required by the Commonwealth to establish a com14 parable Secure Supplemental Nutrition Assistance 

15 Program; 

16 ‘‘(2) a discussion of the appropriate program 

17 rules under the other sections of the Act, such as 

18 benefit levels under section 3(o), income eligibility 

19 standards under sections 5 and 6, and deduction lev20 els under section 5(e), for the Commonwealth to es21 tablish a comparable Secure Supplemental Nutrition 

22 Assistance Program; 

23 ‘‘(3) an estimate of the impact on Federal and 

24 Commonwealth benefit and administrative costs; 

25 ‘‘(4) an estimate of the impact of the Secure 

26 Supplemental Nutrition Assistance Program on hun-
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1 ger and food insecurity among low-income Puerto 

2 Ricans, and 

3 ‘‘(5) such other findings as the Secretary deems 

4 appropriate.’’. 

5 SEC. 4027. REAUTHORIZATION OF COMMUNITY FOOD 

6 PROJECT COMPETITIVE GRANTS. 

7 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

8 25 of the Food Stamp Act of 1977 (U.S.C. 2034) is 

9 amended— 

10 (1) in subsections (c), (d), (e)(1), and (f)(1) by 

11 striking ‘‘subsection (b)’’ each place it appears and 

12 inserting ‘‘subsection (g)’’; 

13 (2) by striking subsection (b); 

14 (3) by redesignating subsections (c) through (g) 

15 as subsections (b) through (f), respectively; and 

16 (4) by inserting after subsection (f) the fol17 lowing: 

18 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

19 is authorized to be appropriated to the Secretary to make 

20 grants available to assist eligible private nonprofit entities 

21 to establish and carry out community food projects 

22 $30,000,000 for each of the fiscal years 2008 through 

23 2012.’’. 

24 (b) PREFERENCES FOR CERTAIN PROJECTS.—Sub25 section (c) of section 25 of the Food Stamp Act of 1977 
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1 (7 U.S.C. 2034), as so redesignated by subsection (a) of 

2 this section, is amended— 

3 (1) in paragraph (3) by striking ‘‘or’’ at the 

4 end; 

5 (2) in paragraph (4) by striking the period at 

6 the end and inserting ‘‘; or’’; and 

7 (3) by adding at the end the following: 

8 ‘‘(5) serve special needs in areas of— 

9 ‘‘(A) transportation and processing for ex10 panding institutional and emergency food serv11 ice demand for local food; 

12 ‘‘(B) retail access to healthy foods in un13 derserved markets; 

14 ‘‘(C) integration of urban and metro-area 

15 food production in food projects; and 

16 ‘‘(D) technical assistance for youth, so17 cially disadvantaged individuals, and limited re18 source groups.’’. 

19 (c) MATCHING FUND REQUIREMENTS.—Subsection 

20 (d)(1) of section 25 of the Food Stamp Act of 1977 (7 

21 U.S.C. 2034), as so redesignated by subsection (a) of this 

22 section, is amended by striking ‘‘50’’ and inserting ‘‘75’’. 

23 (d) TERM OF GRANT.—Subsection (e)(2) of section 

24 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034(e)(2)), 
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1 as so redesignated by subsection (a) of this section, is 

2 amended by striking ‘‘3’’ and inserting ‘‘5’’. 

3 (e) FUNDING FOR INNOVATIVE PROGRAMS.—Sub4 section (h)(4) of section 25 of the Food Stamp Act of 

5 1977 (7 U.S.C. 2034), as so redesignated by subsection 

6 (a) of this section, is amended— 

7 (1) by striking ‘‘fiscal years 2003 though 2007’’ 

8 and inserting ‘‘fiscal years 2008 through 2012’’; and 

9 (2) by striking ‘‘200,000’’ and inserting 

10 ‘‘$500,000’’. 

11 SEC. 4028. EMERGENCY FOOD ASSISTANCE PROGRAM. 

12 Section 27(a) of the Food Stamp Act of 1977 (7 

13 U.S.C. 2036(a)) is amended by— 

14 (1) by striking ‘‘(a) PURCHASE OF COMMOD15 ITIES’’ and all that follows through 2007’ and in16 serting the following: 

17 ‘‘(a) PURCHASE OF COMMODITIES.— 

18 ‘‘(1) IN GENERAL.—As provided in paragraph 

19 (2), for each of the fiscal years 2008 through 2012’’; 

20 (2) by striking ‘‘$140,000,000 of’’; and 

21 (3) by adding at the end the following: 

22 ‘‘(2) AMOUNTS.—The following amounts are 

23 made available to carry out this subsection: 

24 ‘‘(A) for fiscal year 2008, $250,000,000; 

25 and 
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1 ‘‘(B) for each of the fiscal years 2009 

2 through 2012, the dollar amount of commod3 ities specified in subparagraph (A) adjusted by 

4 the percentage by which the thrifty food plan 

5 has been adjusted under section 3(o)(4) be6 tween June 30, 2007 and June 30 of the imme7 diately preceding fiscal year.’’. 

8 Subtitle B—Commodity 

9 Distribution 

10 SEC. 4201. AUTHORIZATION OF APPROPRIATIONS. 

11 Section 204(a)(1) of the Emergency Food Assistance 

12 Act of 1983 (7 U.S.C. 7508(a)(1)) is amended by striking 

13 ‘‘$60,000,000 for each of the fiscal years 2003 through 

14 2007’’ and inserting ‘‘ $100,000,000 for each of the fiscal 

15 years 2008 through 2012’’. 

16 SEC. 4202. DISTRIBUTION OF SURPLUS COMMODITIES; SPE17 CIAL NUTRITION PROJECTS. 

18 Section 1114(a)(2)(A) of the Agriculture and Food 

19 Act of 1981 (7 U.S.C. 1431e(a)(2)(A)) is amended by 

20 striking ‘‘2007’’ and inserting ‘‘2012’’. 

21 SEC. 4203. COMMODITY DISTRIBUTION PROGRAM. 

22 (a) COMMODITY DISTRIBUTION PROGRAM.—Section 

23 4 of the Agriculture and Consumer Protection Act of 1973 

24 (7 U.S.C. 612c note) is amended by striking ‘‘2007’’ and 

25 inserting ‘‘2012’’. 
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1 (b) COMMODITY SUPPLEMENTAL FOOD PROGRAM.— 

2 Section 5 of the Agriculture and Consumer Protection Act 

3 (7 U.S.C. 612c note) is amended— 

4 (1) in subsection (a)— 

5 (A) in paragraph (1) by striking ‘‘fiscal 

6 years 2003 through 2007’’ and inserting ‘‘for 

7 fiscal year 2008 and each fiscal year there8 after’’; and 

9 (B) in paragraph (2)(B)— 

10 (i) in the heading by striking in 

11 ‘‘2007’’ and inserting ‘‘2012’’; and 

12 (ii) by striking ‘‘2007’’ and inserting 

13 ‘‘2012’’; 

14 (2) in subsection (d)(2) by inserting ‘‘, and for 

15 each fiscal year thereafter,’’ after ‘‘2007’’; 

16 (3) by amending subsection (g) to read as fol17 lows: 

18 ‘‘(g) USE OF RESOURCES.—Each local agency shall 

19 use funds made available to the agency to provide assist20 ance under the program to low-income elderly individuals, 

21 women, infants, and children in need for food assistance 

22 in accordance with such regulations as the Secretary may 

23 prescribe.’’; 
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1 (4) in paragraphs (2) and (3) of subsection (h) 

2 by inserting ‘‘elderly individuals,’’ before ‘‘preg3 nant’’; and 

4 (5) by adding at the end the following: 

5 ‘‘(m) INCOME ELIGIBILITY STANDARDS.—The Sec6 retary shall establish maximum income eligibility stand7 ards to be used in conjunction with such other risk criteria 

8 as may be appropriate in determining eligibility for the 

9 program. Such income standards shall be the same for all 

10 pregnant, postpartum, and breastfeeding women, for in11 fants, for children, and for elderly individuals qualifying 

12 for the program, and shall not exceed the maximum in13 come limit prescribed under section 17(d)(2)(A)(i) of the 

14 Child Nutrition Act of 1966 (42 U.S.C. 

15 1786(d)(2)(A)(i)).’’. 

16 Subtitle C—Child Nutrition and 

17 Related Programs 

18 SEC. 4301. PURCHASE OF FRESH FRUITS AND VEGETABLES 

19 FOR DISTRIBUTION TO SCHOOLS AND SERV20 ICE INSTITUTIONS. 

21 Section 10603 of the Farm Security and Rural In22 vestment Act of 2002 (7 U.S.C. 612c–4) is amended by 

23 striking subsection (b) and inserting the following new 

24 subsection: 
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1 ‘‘(b) PURCHASE OF FRESH FRUITS AND VEGETA2 BLES FOR DISTRIBUTION TO SCHOOLS AND SERVICE IN3 STITUTIONS.— 

4 ‘‘(1) PURCHASE AUTHORITY.—The Secretary of 

5 Agriculture shall purchase fresh fruits and vegeta6 bles for distribution to schools and service institu7 tions in accordance with section 6(a) of the Richard 

8 B. Russell National School Lunch Act (42 U.S.C. 

9 1755(a)), using, of the amount specified in sub10 section (a)— 

11 ‘‘(A) not less than $50,000,000 for each of 

12 fiscal years 2008 and 2009; and 

13 ‘‘(B) not less than $75,000,000 for each of 

14 fiscal years 2010 through 2012. 

15 ‘‘(2) SERVICING AGENCY.—The Secretary of 

16 Agriculture may provide for the Secretary of De17 fense to serve as the servicing agency for the pro18 curement of the fresh fruits and vegetables under 

19 this subsection on the same terms and conditions as 

20 provided in the memorandum of agreement entered 

21 into between the Agricultural Marketing Service, the 

22 Food and Consumer Service, and the Defense Per23 sonnel Support Center during August 1995 (or any 

24 successor memorandum of agreement).’’. 
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1 SEC. 4302. BUY AMERICAN REQUIREMENTS. 

2 (a) FINDINGS.—The Congress finds the following: 

3 (1) Federal law requires that commodities and 

4 products purchased with Federal funds be, to the ex5 tent practicable, of domestic origin. 

6 (2) Federal Buy American statutory require7 ments seek to ensure that purchases made with Fed8 eral funds benefit domestic producers. 

9 (3) The Richard B. Russell National School 

10 Lunch Act requires the use of domestic food prod11 ucts for all meals served under the program, includ12 ing foods products purchased with local funds. 

13 (b) BUY AMERICAN STATUTORY REQUIREMENTS.— 

14 The Department of Agriculture should undertake training, 

15 guidance, and enforcement of the various current Buy 

16 American statutory requirements and regulations, includ17 ing those of the National School Lunch Act and the DOD 

18 Fresh program. 

19 SEC. 4303. EXPANSION OF FRESH FRUIT AND VEGETABLE 

20 PROGRAM. 

21 Section 18 of the Richard B. Russell National School 

22 Lunch Act (42 U.S.C. 1769) is amended in subsection 

23 (g)— 

24 (1) in paragraph (1)— 
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1 (A) in the matter preceding subparagraph 

2 (A), by striking ‘‘July 2004’’ and inserting 

3 ‘‘July 2007’’; and 

4 (B) in paragraph (1) by amending sub5 paragraphs (A) and (B) to read as follows: 

6 ‘‘(A) 35 elementary or secondary schools in 

7 each State; 

8 ‘‘(B) additional elementary or secondary 

9 schools in each State in proportion to the stu10 dent population of the State; and’’; 

11 (2) in paragraph (3)(A)— 

12 (A) in the matter preceding clause (i) by 

13 striking ‘‘paragraph (1)(B)’’ and inserting 

14 ‘‘paragraph (1)’’; 

15 (B) in clause (iii) by striking ‘‘and’’ at the 

16 end; 

17 (C) in clause (iv) by striking the period at 

18 the end and inserting ‘‘; and’’; and 

19 (D) by adding at the end the following: 

20 ‘‘(v) encourage plans for implementa21 tion that include locally grown foods, where 

22 geographically available, in accordance 

23 with section 9(j).’’. 
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1 (3) in paragraph (5) in each of subparagraphs 

2 (A) and (B), by striking ‘‘2008’’ and inserting 

3 ‘‘2012’’; and 

4 (4) in paragraph (6)(B)— 

5 (A) in clause (i)— 

6 (i) by striking ‘‘October 1, 2004, and 

7 on each October 1 thereafter,’’ and insert8 ing ‘‘October 1, 2007, and on each October 

9 1 thereafter,’’; and 

10 (ii) by striking ‘‘$9,000,000’’ and in11 serting ‘‘$70,000,000’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(iii) ADMINISTRATIVE EXPENSES.— 

14 For fiscal year 2009 and each fiscal year 

15 thereafter, of the amount available to carry 

16 out this subsection, the Secretary may re17 serve not more than 1 percent of that 

18 amount for administrative expenses in car19 rying out this subsection. 

20 ‘‘(iv) STATE ADMINISTRATIVE

21 COSTS.—For fiscal year 2009 and each fis22 cal year thereafter, of the amount received 

23 by a State to carry out this subsection, the 

24 State may use not more than 5 percent of 

25 that amount for administrative expenses in 
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1 carrying out this subsection. To be eligible 

2 to use such funds for such expenses, the 

3 State must submit to the Secretary a plan 

4 indicating how the State intends to use 

5 such funds. 

6 ‘‘(v) FEDERAL REQUIREMENTS.—The 

7 Secretary shall establish requirements to 

8 be followed by States in administering this 

9 subsection. The initial set of requirements 

10 shall be established not later than 1 year 

11 after the date of the enactment of this 

12 clause.’’. 

13 SEC. 4304. PURCHASES OF LOCALLY PRODUCED FOODS. 

14 Section 9(j) of the Richard B. Russell National 

15 School Lunch Act (42 U.S.C. 1758(j)) is amended to read 

16 as follows: 

17 ‘‘(j) PURCHASES OF LOCALLY PRODUCED FOODS.— 

18 The Secretary shall— 

19 ‘‘(1) encourage institutions receiving funds 

20 under this Act and the Child Nutrition Act of 1966 

21 (42 U.S.C. 1771 et seq.) to purchase locally pro22 duced foods, to the maximum extent practicable and 

23 appropriate; 

24 ‘‘(2) advise institutions participating in a pro25 gram described in paragraph (1) of the policy de-
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1 scribed in that paragraph and post information con2 cerning the policy on the website maintained by the 

3 Secretary; and 

4 ‘‘(3) allow institutions receiving funds under 

5 this Act and the Child Nutrition Act of 1966 (42 

6 U.S.C. 1771 et seq.), including the Department of 

7 Defense Fresh Fruit and Vegetable Program, to use 

8 a geographic preference for the procurement of lo9 cally produced foods.’’. 

10 Subtitle D—Miscellaneous 

11 SEC. 4401. SENIORS FARMERS’ MARKET NUTRITION PRO12 GRAM. 

13 Section 4402 of the Farm Security and Rural Invest14 ment Act of 2002 (7 U.S.C. 3007) is amended— 

15 (1) by amending subsection (a) to read as fol16 lows: 

17 ‘‘(a) AUTHORIZATION.— 

18 ‘‘(1) The Secretary of Agriculture shall use 

19 $15,000,000 for each of fiscal years 2008 through 

20 2012 of the funds available to the Commodity Credit 

21 Corporation to carry out and expand the seniors 

22 farmers’ market nutrition program. 

23 ‘‘(2) There are authorized to be appropriated 

24 $20,000,000 for fiscal year 2008, $30,000,000 for 

25 fiscal year 2009, $45,000,000 for fiscal year 2010, 
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1 $60,000,000 for fiscal year 2011, and $75,000,000 

2 for fiscal year 2012 to carry out and expand the 

3 seniors farmers’ market nutrition program.’’; 

4 (2) in subsection (b)(1) by inserting ‘‘honey,’’ 

5 after ‘‘vegetables,’’; 

6 (3) by amending subsection (c) to read as fol7 lows: 

8 ‘‘(c) EXCLUSION OF BENEFITS IN DETERMINING

9 ELIGIBILITY FOR OTHER PROGRAMS.—The value of any 

10 benefit provided to any eligible seniors farmers’ market 

11 nutrition program recipient under this section shall not 

12 be considered to be income or resources for any purposes 

13 under any Federal, State, or local law.’’; and 

14 (4) by adding at the end the following: 

15 ‘‘(d) PROHIBITION ON COLLECTION OF SALES

16 TAX.—The State shall ensure that no State or local taxes 

17 are collected within the State on purchases of food with 

18 coupons distributed under the seniors farmers’ market nu19 trition program. 

20 ‘‘(e) REGULATIONS.—The Secretary may issue such 

21 regulations as the Secretary considers necessary to carry 

22 out the seniors farmers’ market nutrition program.’’. 
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1 SEC. 4402. CONGRESSIONAL HUNGER CENTER. 

2 Section 4404 of the Farm Security and Rural Invest3 ment Act of 2002 (7 U.S.C. 1621 note) is amended to 

4 read as follows: 

5 ‘‘SEC. 4404. BILL EMERSON NATIONAL HUNGER FELLOWS 

6 AND MICKEY LELAND INTERNATIONAL HUN7 GER FELLOWS. 

8 ‘‘(a) SHORT TITLE.—This section may be cited as the 

9 ‘Bill Emerson National Hunger Fellows and Mickey Le10 land International Hunger Fellows Program Act of 2007’. 

11 ‘‘(b) FINDINGS.—The Congress finds as follows: 

12 ‘‘(1) There is a critical need for compassionate 

13 individuals who are committed to assisting people 

14 who suffer from hunger to initiate and administer 

15 solutions to the hunger problem. 

16 ‘‘(2) Bill Emerson, the distinguished late Rep17 resentative from the 8th District of Missouri, dem18 onstrated his commitment to solving the problem of 

19 hunger in a bipartisan manner, his commitment to 

20 public service, and his great affection for the institu21 tion and ideals of the Congress of the United States. 

22 ‘‘(3) George T. (Mickey) Leland, the distin23 guished late Representative from the 18th District 

24 of Texas, demonstrated his compassion for those in 

25 need, his high regard for public service, and his live26 ly exercise of political talents. 
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1 ‘‘(4) The special concern that Mr. Emerson and 

2 Mr. Leland demonstrated during their lives for the 

3 hungry and poor was an inspiration for others to 

4 work toward the goals of equality and justice for all. 

5 ‘‘(5) These two outstanding leaders maintained 

6 a special bond of friendship regardless of political af7 filiation and worked together to encourage future 

8 leaders to recognize and provide service to others, 

9 and therefore it is especially appropriate to honor 

10 the memory of Mr. Emerson and Mr. Leland by cre11 ating a fellowship program to develop and train the 

12 future leaders of the United States to pursue careers 

13 in humanitarian service. 

14 ‘‘(c) DEFINITIONS.—In this section: 

15 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis16 trator’ means— 

17 ‘‘(A) if the Secretary of Agriculture enters 

18 into a contract described in subsection (d)(3), 

19 the head of the Congressional Hunger Center; 

20 or 

21 ‘‘(B) if the Secretary does not enter into 

22 such a contract, the Secretary. 

23 ‘‘(2) FELLOW.—The term ‘fellow’ means— 

24 ‘‘(A) a Bill Emerson Hunger Fellow; or 

25 ‘‘(B) a Mickey Leland Hunger Fellow 
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1 ‘‘(3) FELLOWSHIP PROGRAMS.—The term ‘Fel2 lowship Programs’ means the Bill Emerson National 

3 Hunger Fellowship Program and the Mickey Leland 

4 International Hunger Fellowship Program estab5 lished by subsection (d). 

6 ‘‘(d) FELLOWSHIP PROGRAM.—There is established 

7 in the Department of Agriculture the Bill Emerson Na8 tional Hunger Fellowship Program and the Mickey Leland 

9 International Hunger Fellowship Program. 

10 ‘‘(1) PURPOSES.—The purposes of the Fellow11 ship Programs are— 

12 ‘‘(A) to encourage future leaders of the 

13 United States to pursue careers in humani14 tarian and public service, to recognize the needs 

15 of low-income people and hungry people, and to 

16 provide assistance to people in need; and 

17 ‘‘(B) to seek public policy solutions to the 

18 challenges of hunger and poverty, to provide 

19 training and development opportunities for such 

20 leaders through placement in programs oper21 ated by appropriate organizations or entities. 

22 ‘‘(2) FOCUS OF PROGRAMS.— 

23 ‘‘(A) FOCUS OF BILL EMERSON HUNGER

24 FELLOWSHIP PROGRAM.—The Bill Emerson 
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1 Hunger Fellowship Program shall address hun2 ger and poverty in the United States. 

3 ‘‘(B) FOCUS OF MICKEY LELAND HUNGER

4 FELLOWSHIP PROGRAM.—The Mickey Leland 

5 Hunger Fellowship Program shall address 

6 international hunger and other humanitarian 

7 needs. 

8 ‘‘(3) ADMINISTRATION.— 

9 ‘‘(A) IN GENERAL.—Subject to subpara10 graph (B), the Secretary shall offer to enter 

11 into a contract with the Congressional Hunger 

12 Center to administer the Fellowship Programs. 

13 ‘‘(B) REQUIREMENT.—As a condition of a 

14 contract described in subparagraph (A), the 

15 Congressional Hunger Center shall agree to 

16 submit to Congress each year the results of an 

17 independent financial audit that demonstrates 

18 that the Congressional Hunger Center uses ac19 counting procedures that conform to generally 

20 accepted accounting principles and auditing 

21 procedures that conform to chapter 75 of title 

22 31, United States Code (commonly known as 

23 the ‘Single Audit Act of 1984’). 

24 ‘‘(e) FELLOWSHIPS.— 
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1 ‘‘(1) IN GENERAL.—The Administrator shall 

2 make available Bill Emerson Hunger Fellowships 

3 and Mickey Leland Hunger Fellowships in accord4 ance with this subsection. 

5 ‘‘(2) CURRICULUM.— 

6 ‘‘(A) IN GENERAL.—The fellowship pro7 grams shall provide experience and training to 

8 develop the skills necessary to train fellows to 

9 carry out the purposes described in subsection 

10 (d)(1), including— 

11 ‘‘(i) training in direct service pro12 grams for the hungry and other anti-hun13 ger programs in conjunction with commu14 nity-based organizations through a pro15 gram of field placement; and 

16 ‘‘(ii) providing experience in policy de17 velopment through placement in a govern18 mental entity or nongovernmental, non19 profit, or private sector organization. 

20 ‘‘(B) WORK PLAN.—To carry out subpara21 graph (A) and assist in the evaluation of the 

22 fellowships under paragraph (6), the Adminis23 trator shall, for each fellow, approve a work 

24 plan that identifies the target objectives for the 
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1 fellow in the fellowship, including specific duties 

2 and responsibilities relating to those objectives. 

3 ‘‘(3) PERIOD OF FELLOWSHIP.— 

4 ‘‘(A) EMERSON FELLOW.—A Bill Emerson 

5 Hunger Fellowship awarded under this sub6 section shall be for not more than 15 months. 

7 ‘‘(B) LELAND FELLOW.—A Mickey Leland 

8 Hunger Fellowship awarded under this sub9 section shall be for not more than 2 years. 

10 ‘‘(4) SELECTION OF FELLOWS.— 

11 ‘‘(A) IN GENERAL.—Fellowships shall be 

12 awarded pursuant to a nationwide competition 

13 established by the Administrator. 

14 ‘‘(B) QUALIFICATIONS.—A successful pro15 gram applicant shall be an individual who has 

16 demonstrated— 

17 ‘‘(i) an intent to pursue a career in 

18 humanitarian service and outstanding po19 tential for such a career; 

20 ‘‘(ii) leadership potential or actual 

21 leadership experience; 

22 ‘‘(iii) diverse life experience; 

23 ‘‘(iv) proficient writing and speaking 

24 skills; 
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1 ‘‘(v) an ability to live in poor or di2 verse communities; and 

3 ‘‘(vi) such other attributes as are con4 sidered to be appropriate by the Adminis5 trator. 

6 ‘‘(5) AMOUNT OF AWARD.— 

7 ‘‘(A) IN GENERAL.—A fellow shall receive 

8 a living allowance during the term of the Fel9 lowship and, subject to subparagraph (B), an 

10 end-of-service award. 

11 ‘‘(B) REQUIREMENT FOR SUCCESSFUL

12 COMPLETION OF FELLOWSHIP.—Each fellow 

13 shall be entitled to receive an end-of-service 

14 award at an appropriate rate for each month of 

15 satisfactory service completed, as determined by 

16 the Administrator. 

17 ‘‘(C) TERMS OF FELLOWSHIP.—A fellow 

18 shall not be considered an employee of— 

19 ‘‘(i) the Department of Agriculture; 

20 ‘‘(ii) the Congressional Hunger Cen21 ter; or 

22 ‘‘(iii) a host agency in the field or pol23 icy placement of the fellow. 

24 ‘‘(D) RECOGNITION OF FELLOWSHIP

25 AWARD.— 
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1 ‘‘(i) EMERSON FELLOW.—An indi2 vidual awarded a fellowship from the Bill 

3 Emerson Hunger Fellowship shall be 

4 known as an ‘Emerson Fellow’. 

5 ‘‘(ii) LELAND FELLOW.—An indi6 vidual awarded a fellowship from the Mick7 ey Leland Hunger Fellowship shall be 

8 known as a ‘Leland Fellow’. 

9 ‘‘(6) EVALUATION.—The Administrator shall 

10 conduct periodic evaluations of the Fellowship Pro11 grams. 

12 ‘‘(f) AUTHORITY.— 

13 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

14 in carrying out this section, the Administrator may 

15 solicit, accept, use, and dispose of gifts, bequests, or 

16 devises of services or property, both real and per17 sonal, for the purpose of facilitating the work of the 

18 Fellowship Programs. 

19 ‘‘(2) LIMITATION.—Gifts, bequests, or devises 

20 of money and proceeds from sales of other property 

21 received as gifts, bequests, or devises shall be used 

22 exclusively for the purposes of the Fellowship Pro23 grams. 

24 ‘‘(g) REPORT.—Each year, the Administrator shall 

25 submit to the Committee on Agriculture of the House of 
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1 Representatives and the Committee on Agriculture, Nutri2 tion, and Forestry of the Senate a report that describes 

3 the activities and expenditures of the Fellowship Programs 

4 during the preceding fiscal year. 

5 ‘‘(h) FUNDING.—There is authorized to be appro6 priated to the Secretary to carry out this section 

7 $3,000,000 for each of the fiscal years 2008 through 

8 2012.’’. 

9 SEC. 4403. JOINT NUTRITION MONITORING AND RELATED 

10 RESEARCH ACTIVITIES. 

11 Subtitle D of title IV of the Farm Security and Rural 

12 Investment Act of 2002 (Public Law 107–171; 116 Stat. 

13 333) is amended— 

14 (1) by redesignating section 4405 (2 U.S.C. 

15 1161 note; Public Law 107–171) as section 4406; 

16 and 

17 (2) by inserting after section 4404 the fol18 lowing: 

19 ‘‘SEC. 4405. JOINT NUTRITION MONITORING AND RELATED 

20 RESEARCH ACTIVITIES. 

21 ‘‘The Secretary of Agriculture and the Secretary of 

22 Health and Human Services shall continue to provide 

23 jointly for national nutrition monitoring and related re24 search activities carried out as of the date of enactment 

25 of this section— 
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1 ‘‘(1) to collect continuous dietary, health, phys2 ical activity, and diet and health knowledge data on 

3 a nationally representative sample; 

4 ‘‘(2) to periodically collect data on special at5 risk populations, as identified by the Secretaries; 

6 ‘‘(3) to distribute information on health, nutri7 tion, the environment, and physical activity to the 

8 public in a timely fashion; 

9 ‘‘(4) to analyze new data that becomes avail10 able; 

11 ‘‘(5) to continuously update food composition 

12 tables; and 

13 ‘‘(6) to research and develop data collection 

14 methods and standards.’’. 

15 SEC. 4404 SENSE OF THE CONGRESS. 

16 It is the sense of the Congress that food items pro17 vided pursuant to the Federal school breakfast and school 

18 lunch program should be selected so as to reduce the inci19 dence of juvenile obesity and to maximize nutritional 

20 value. 

21 TITLE V—CREDIT 

Subtitle A—Farm Ownership Loans 

Sec. 5001. Conservation loan guarantee program. 

Sec. 5002. Limitations on amount of ownership loans. 

Sec. 5003. Down payment loan program. 

Sec. 5004. Beginning farmer and rancher contract land sales program. 

Sec. 5005. Loans to purchasers of highly fractioned lands. 

Subtitle B—Operating Loans 
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Sec. 5011. Limitations on amount of operating loans. 

Sec. 5012. Suspension of limitation on period for which borrowers are eligible 

for guaranteed assistance. 

Subtitle C—Administrative Provisions 

Sec. 5021. Inventory sales preferences. 

Sec. 5022. Loan fund set-asides. 

Sec. 5023. Transition to private commercial or other sources of credit. 

Sec. 5024. Extension of the right of first refusal to reacquire homestead property to immediate family members of borrower-owner. 

Sec. 5025. Rural development and farm loan program activities. 

Subtitle D—Farm Credit 

Sec. 5031. Bank for cooperatives voting stock. 

Sec. 5032. Rural utility loans. 

Sec. 5033. Farm Credit System Insurance Corporation. 

Sec. 5034. Risk-based capital levels. 

1 Subtitle A—Farm Ownership Loans 

2 SEC. 5001. CONSERVATION LOAN GUARANTEE PROGRAM. 

3 Section 304 of the Consolidated Farm and Rural De4 velopment Act (7 U.S.C. 1924) is amended to read as fol5 lows: 

6 ‘‘SEC. 304. CONSERVATION LOAN GUARANTEE PROGRAM. 

7 ‘‘(a) IN GENERAL.—The Secretary may provide a 

8 loan guarantee, an interest subsidy, or both, to enable an 

9 eligible borrower to obtain a qualified conservation loan. 

10 ‘‘(b) PRIORITY.—In providing loan guarantees under 

11 this section, the Secretary shall give priority to— 

12 ‘‘(1) qualified beginning farmers or ranchers; 

13 ‘‘(2) socially disadvantaged farmers or ranchers 

14 (as defined in section 355(e)(2)); 

15 ‘‘(3) owners or tenants who use the loans to 

16 covert to sustainable or organic agricultural produc17 tion systems; and 
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1 ‘‘(4) producers who use the loans to build con2 servation structures or establish conservation prac3 tices to comply with section 1212 of the Food Secu4 rity Act of 1985. 

5 ‘‘(c) DEFINITIONS.—In this section: 

6 ‘‘(1) ELIGIBLE BORROWER.—The term ‘eligible 

7 borrower’ means a farmer, rancher, farm coopera8 tive, private domestic corporation, partnership, joint 

9 operation, trust, or limited liability company, that is 

10 engaged primarily and directly in agricultural pro11 duction in the United States. 

12 ‘‘(2) QUALIFIED CONSERVATION LOAN.—The 

13 term ‘qualified conservation loan’ means a loan that 

14 meets the following requirements: 

15 ‘‘(A) PURPOSE.—The loan proceeds are re16 quired to be used to cover the costs to the bor17 rower of carrying out a qualified conservation 

18 project. 

19 ‘‘(B) PRINCIPAL AMOUNT.—The principal 

20 amount of the loan is not more than 

21 $1,000,000,000. 

22 ‘‘(C) REPAYMENT PERIOD.—The loan re23 payment period shall not exceed 10 years. 

24 ‘‘(D) LIMITED PROCESSING FEE.—The 

25 total of all processing fees charged with respect 
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1 to the loan does not exceed such amount as 

2 shall be prescribed by the Secretary. 

3 ‘‘(3) QUALIFIED CONSERVATION PROJECT.— 

4 The term ‘qualified conservation project’ means, 

5 with respect to an eligible borrower, conservation 

6 measures that address provisions of a conservation 

7 plan of the borrower. 

8 ‘‘(4) CONSERVATION PLAN.—The term ‘con9 servation plan’ means a plan, approved by the Sec10 retary, that, for a farming or ranching operation, 

11 identifies the conservation activities that will be ad12 dressed with guaranteed loan funds provided under 

13 this section, including— 

14 ‘‘(A) the installation of conservation struc15 tures; 

16 ‘‘(B) the establishment of forest cover for 

17 sustained yield timber management, erosion 

18 control, or shelter belt purposes; 

19 ‘‘(C) the installation of water conservation 

20 measures; 

21 ‘‘(D) the installation of waste management 

22 systems; 

23 ‘‘(E) the establishment or improvement of 

24 permanent pasture; 
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1 ‘‘(F) compliance with section 1212 of the 

2 Food Security Act of 1985; 

3 ‘‘(G) other purposes consistent with the 

4 plan; and 

5 ‘‘(H) any other emerging or existing con6 servation practices, techniques, or technologies 

7 approved by the Secretary. 

8 ‘‘(d) LIMITATIONS APPLICABLE TO LOAN GUARAN9 TEES.— 

10 ‘‘(1) LIMITATION ON AMOUNT OF GUAR11 ANTEE.—The portion of a loan that the Secretary 

12 may guarantee under this section shall be not less 

13 than 80 percent and not more than 90 percent of 

14 the principal amount of the loan. 

15 ‘‘(2) LIMITATION ON TOTAL AMOUNT OUT16 STANDING.—The aggregate principal amount of out17 standing loans guaranteed by the Secretary under 

18 this section shall not exceed $1,000,000. 

19 ‘‘(e) LIMITATION ON AMOUNT OF INTEREST SUB20 SIDY.—The interest subsidy which the Secretary may pro21 vide under this section with respect to a loan shall result 

22 in a reduction of the interest rate agreed upon by the bor23 rower and the lender (but to not less than zero) by— 

24 ‘‘(1) 500 basis points, if the principal amount 

25 of the loan is less than $100,000; 
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1 ‘‘(2) 400 basis points, if the principal amount 

2 of the loan is not less than $100,000 and is less 

3 than $500,000; and 

4 ‘‘(3) 300 basis points, in any other case. 

5 ‘‘(f) ADMINISTRATIVE PROVISIONS.— 

6 ‘‘(1) AUTHORITY TO COLLECT PROCESSING

7 FEE.—The Secretary may assess a fee to cover the 

8 cost of processing an application under this section 

9 equal to not more than 1 percent of the principal 

10 amount of the loan sought by the applicant, as de11 scribed in the application. 

12 ‘‘(2) APPROVAL OF APPLICATION.—The Sec13 retary shall not approve an application submitted 

14 pursuant to this section, unless the Secretary has 

15 determined that— 

16 ‘‘(A) the loan sought by the applicant, as 

17 described in the application, would be a quali18 fied conservation loan; and 

19 ‘‘(B) the project for which the loan is 

20 sought is likely to result in a net benefit to the 

21 environment. 

22 ‘‘(3) EQUITABLE DISTRIBUTION OF LOAN

23 GUARANTEES AND INTEREST SUBSIDIES.—The Sec24 retary shall ensure that loan guarantees and interest 

25 subsidies under this section are equitably distributed 
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1 among agricultural producers according to the scale 

2 of the operations. 

3 ‘‘(g) RELATIONSHIP WITH OTHER CONSERVATION

4 PROGRAMS.—Neither the application for, nor the receipt 

5 of, a loan guarantee or an interest subsidy under this sec6 tion shall affect the eligibility of the recipient for assist7 ance under title XII of the Food Security Act of 1985 

8 or the Watershed Protection and Flood Prevention Act. 

9 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—For 

10 each of fiscal years 2008 through 2012, there are author11 ized to be appropriated to the Secretary such funds as are 

12 necessary to carry out this section.’’. 

13 SEC. 5002. LIMITATIONS ON AMOUNT OF OWNERSHIP 

14 LOANS. 

15 Section 305 of the Consolidated Farm and Rural De16 velopment Act (7 U.S.C. 1925) is amended— 

17 (1) in subsection (a)(2), by striking ‘‘$200,000’’ 

18 and inserting ‘‘$300,000’’; and 

19 (2) by redesignating subsections (b) and (c) as 

20 subsections (c) and (d), respectively, and inserting 

21 after subsection (a) the following: 

22 ‘‘(b) GRADUATION PLAN.—The Secretary shall estab23 lish a plan, in coordination with activities under sections 

24 359, 360, 361, and 362, to encourage each borrower with 
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1 an outstanding loan under this subtitle to graduate to pri2 vate commercial or other sources of credit.’’. 

3 SEC. 5003. DOWN PAYMENT LOAN PROGRAM. 

4 Section 310E of the Consolidated Farm and Rural 

5 Development Act (7 U.S.C. 1935) is amended— 

6 (1) in subsection (a)(1), by striking ‘‘and 

7 ranchers’’ and inserting ‘‘or ranchers and socially 

8 disadvantaged farmers or ranchers’’; 

9 (2) in subsection (b)— 

10 (A) by striking paragraph (1) and insert11 ing the following; 

12 ‘‘(1) PRINCIPAL.—Each loan made under this 

13 section shall be in an amount that does not exceed 

14 45 percent of the least of— 

15 ‘‘(A) the purchase price of the farm or 

16 ranch to be acquired; 

17 ‘‘(B) the appraised value of the farm or 

18 ranch to be acquired; or 

19 ‘‘(C) $500,000. 

20 ‘‘(2) INTEREST RATE.—The interest rate on 

21 any loan made by the Secretary under this section 

22 shall be a rate equal to the greater of— 

23 ‘‘(A) the difference obtained by subtracting 

24 4 percent from the interest rate for farm own25 ership loans under this subtitle; or 
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1 ‘‘(B) 1 percent.’’; and 

2 (B) in paragraph (3), by striking ‘‘15’’ and 

3 inserting ‘‘20’’; 

4 (3) in subsection (c)— 

5 (A) in paragraph (1), by striking ‘‘10’’ and 

6 inserting ‘‘5’’; 

7 (B) by striking paragraph (2) and redesig8 nating paragraph (3) as paragraph (2); and 

9 (C) in paragraph (2)(B) (as so redesig10 nated), by striking ‘‘15-year’’ and inserting 

11 ‘‘20-year’’; and 

12 (4) in subsection (d)— 

13 (A) in paragraph (3)— 

14 (i) by inserting ‘‘and socially dis15 advantaged farmers and ranchers (as de16 fined in section 355(e)(2))’’ after ‘‘ranch17 ers’’; and 

18 (ii) by striking ‘‘and’’ at the end; 

19 (B) in paragraph (4), by striking ‘‘ranch20 ers.’’ and inserting ‘‘ranchers and socially dis21 advantaged farmers and ranchers (as defined in 

22 section 355(e)(2)); and’’; and 

23 (C) by adding at the end the following: 

24 ‘‘(5) establish annual performance goals to pro25 mote the use of the down payment loan program and 
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1 other joint financing participation loans as the pre2 ferred choice for direct real estate loans made by 

3 any lender to a qualified beginning farmer or ranch4 er or socially disadvantaged farmer or rancher (as so 

5 defined).’’. 

6 SEC. 5004. BEGINNING FARMER AND RANCHER CONTRACT 

7 LAND SALES PROGRAM. 

8 Section 310F of the Consolidated Farm and Rural 

9 Development Act (7 U.S.C. 1936) is amended to read as 

10 follows: 

11 ‘‘SEC. 310F. BEGINNING FARMER AND RANCHER AND SO12 CIALLY DISADVANTAGED FARMER AND 

13 RANCHER CONTRACT LAND SALES PROGRAM. 

14 ‘‘(a) IN GENERAL.—The Secretary shall, in accord15 ance with this section, guarantee a loan made by a private 

16 seller of a farm or ranch to a qualified beginning farmer 

17 or rancher or socially disadvantaged farmer or rancher (as 

18 defined in section 355(e)(2)) on a contract land sales 

19 basis. 

20 ‘‘(b) ELIGIBILITY.—In order to be eligible for a loan 

21 guarantee under subsection (a)— 

22 ‘‘(1) the qualified beginning farmer or rancher 

23 or socially disadvantaged farmer or rancher shall— 

24 ‘‘(A) on the date the contract land sale 

25 that is subject of the loan is complete, own or 
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1 operate the farm or ranch that is the subject of 

2 the contract land sale; 

3 ‘‘(B) have a credit history that— 

4 ‘‘(i) includes a record of satisfactory 

5 debt repayment, as determined by the Sec6 retary; and 

7 ‘‘(ii) is acceptable to the Secretary; 

8 and 

9 ‘‘(C) demonstrate to the Secretary that the 

10 farmer or rancher, as the case may be, is un11 able to obtain sufficient credit without a guar12 antee to finance any actual need of the farmer 

13 or rancher, as the case may be, at a reasonable 

14 rate or term; 

15 ‘‘(2) the loan shall meet applicable underwriting 

16 criteria, as determined by the Secretary; and 

17 ‘‘(3) to carry out the loan— 

18 ‘‘(A) a commercial lending institution shall 

19 agree to serve as an escrow agent; or 

20 ‘‘(B) the private seller, in cooperation with 

21 the farmer or rancher, shall use an appropriate 

22 alternate arrangement, as determined by the 

23 Secretary. 

24 ‘‘(c) LIMITATIONS.— 
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1 ‘‘(1) DOWN PAYMENT.—The Secretary shall not 

2 provide a loan guarantee under subsection (a) if the 

3 contribution of the qualified beginning farmer or 

4 rancher or socially disadvantaged farmer or rancher 

5 to the down payment for the farm or ranch that is 

6 the subject of the contract land sale would be less 

7 than 5 percent of the purchase price of the farm or 

8 ranch. 

9 ‘‘(2) MAXIMUM PURCHASE PRICE.—The Sec10 retary shall not provide a loan guarantee under sub11 section (a) if the purchase price or the appraisal 

12 value of the farm or ranch that is the subject of the 

13 contract land sale is greater than $500,000. 

14 ‘‘(d) PERIOD OF GUARANTEE.—The period during 

15 which a loan guarantee under this section is in effect shall 

16 be the 10-year period beginning with the date the guar17 antee is provided. 

18 ‘‘(e) GUARANTEE PLAN.—A private seller of a farm 

19 or ranch who makes a loan that is guaranteed by the Sec20 retary under subsection (a) may select— 

21 ‘‘(1) a prompt payment guarantee plan, which 

22 shall cover— 

23 ‘‘(A) 3 amortized annual installments; or 

24 ‘‘(B) an amount equal to 3 annual install25 ments (including an amount equal to the total 
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1 cost of any tax and insurance incurred during 

2 the period covered by the annual installments); 

3 or 

4 ‘‘(2) a standard guarantee plan, which shall 

5 cover an amount equal to 90 percent of the out6 standing principal of the loan.’’. 

7 SEC. 5005. LOANS TO PURCHASERS OF HIGHLY 

8 FRACTIONED LANDS. 

9 Section 1 of Public Law 91–229 (25 U.S.C. 488) is 

10 amended by adding at the end the following: ‘‘The Sec11 retary of Agriculture may make and insure loans as pro12 vided in section 309 of the Consolidated Farm and Rural 

13 Development Act to eligible purchasers of highly 

14 fractionated land pursuant to section 204(c) of the Indian 

15 Land Consolidation Act. Section 4 of this Act shall not 

16 apply to trust or restricted tribal or tribal corporation 

17 property mortgaged pursuant to the preceding sentence.’’. 

18 Subtitle B—Operating Loans 

19 SEC. 5011. LIMITATIONS ON AMOUNT OF OPERATING 

20 LOANS. 

21 Section 313(a)(1) of the Consolidated Farm and 

22 Rural Development Act (7 U.S.C. 1943(a)(1)) is amended 

23 by striking ‘‘$200,000’’ and inserting ‘‘$300,000’’. 
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1 SEC. 5012. SUSPENSION OF LIMITATION ON PERIOD FOR 

2 WHICH BORROWERS ARE ELIGIBLE FOR 

3 GUARANTEED ASSISTANCE. 

4 Section 5102 of the Farm Security And Rural Invest5 ment Act of 2002 (7 U.S.C. 1949 note; Public Law 107– 

6 171) is amended by striking ‘‘September 30, 2007’’ and 

7 inserting ‘‘January 1, 2008’’. 

8 Subtitle C—Administrative 

9 Provisions 

10 SEC. 5021. INVENTORY SALES PREFERENCES. 

11 Section 335(c) of the Consolidated Farm and Rural 

12 Development Act (7 U.S.C. 1985(c)) is amended— 

13 (1) in paragraph (1)— 

14 (A) in subparagraph (B)— 

15 (i) in the subparagraph heading, by 

16 inserting ‘‘; SOCIALLY DISADVANTAGED

17 FARMER OR RANCHER’’ after ‘‘OR RANCH18 ER’’; 

19 (ii) in clause (i), by inserting ‘‘or a so20 cially disadvantaged farmer or rancher’’ 

21 after ‘‘or rancher’’; 

22 (iii) by redesignating clauses (ii) 

23 through (iv) as clauses (iii) through (v), re24 spectively; 

25 (iv) by inserting after clause (i) the 

26 following: 
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1 ‘‘(ii) PRIORITY TO BE GIVEN TO SO2 CIALLY DISADVANTAGED FARMERS AND

3 RANCHERS.—In carrying out this subpara4 graph, the Secretary shall give priority to 

5 socially disadvantaged farmers and ranch6 ers.’’; 

7 (v) in clause (iii) (as so redesig8 nated)— 

9 (I) by inserting ‘‘or socially dis10 advantaged farmer or rancher’’ after 

11 ‘‘or rancher’’; and 

12 (II) by inserting ‘‘, subject to 

13 clause (ii)’’ before the period; 

14 (vi) in clause (iv) (as so redesignated), 

15 by inserting ‘‘or a socially disadvantaged 

16 farmer or rancher’’ after ‘‘or rancher’’; and 

17 (vii) in clause (v) (as so redesignated), 

18 by inserting ‘‘and socially disadvantaged 

19 farmers and ranchers’’ after ‘‘and ranch20 ers’’; and 

21 (B) in subparagraph (C), by inserting ‘‘or 

22 a socially disadvantaged farmer or rancher’’ 

23 after ‘‘or rancher’’; 

24 (2) in paragraph (5)(B)— 

25 (A) in clause (i)— 
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1 (i) in the clause heading, by inserting 

2 ‘‘; SOCIALLY DISADVANTAGED FARMER OR

3 RANCHER’’ after ‘‘OR RANCHER’’; 

4 (ii) by inserting ‘‘or a socially dis5 advantaged farmer or rancher’’ after ‘‘a 

6 beginning farmer or rancher’’; and 

7 (iii) by inserting ‘‘or the socially dis8 advantaged farmer or rancher’’ after ‘‘the 

9 beginning farmer or rancher’’; 

10 (B) by redesignating clauses (ii) and (iii) 

11 as clauses (iii) and (iv), respectively; 

12 (C) by inserting after clause (i) the fol13 lowing: 

14 ‘‘(ii) PRIORITY TO BE GIVEN TO SO15 CIALLY DISADVANTAGED FARMERS AND

16 RANCHERS.—In carrying out clause (i), the 

17 Secretary shall give priority to socially dis18 advantaged farmers and ranchers.’’; and 

19 (D) in clause (iii) (as so redesignated)— 

20 (i) in the matter preceding subclause 

21 (I), by inserting ‘‘or a socially disadvan22 taged farmer or rancher’’ after ‘‘or ranch23 er’’; and 
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1 (ii) in subclause (II), by inserting ‘‘or 

2 the socially disadvantaged farmer or ranch3 er’’ after ‘‘or rancher’’; 

4 (3) in paragraph (6)— 

5 (A) in subparagraph (A), by inserting ‘‘or 

6 a socially disadvantaged farmer or rancher’’ 

7 after ‘‘or rancher’’; and 

8 (B) in subparagraph (C)— 

9 (i) in clause (i)(I), by inserting ‘‘and 

10 socially disadvantaged farmers and ranch11 ers’’ after ‘‘and ranchers’’; and 

12 (ii) in clause (ii), by inserting ‘‘or so13 cially disadvantaged farmers or ranchers’’ 

14 after ‘‘or ranchers’’; and 

15 (4) by adding at the end the following: 

16 ‘‘(7) In this subsection, the term ‘socially dis17 advantaged farmer or rancher’ has the meaning 

18 given in section 355(e)(2).’’. 

19 SEC. 5022. LOAN FUND SET-ASIDES. 

20 Section 346(b)(2) of the Consolidated Farm and 

21 Rural Development Act (7 U.S.C. 1994(b)(2)) is amend22 ed— 

23 (1) in subparagraph (A)— 

24 (A) in clause (i)— 
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1 (i) in subclause (I), by striking ‘‘70 

2 percent’’ and inserting ‘‘not less than 75 

3 percent of the total amount made available 

4 under paragraph (1)’’; and 

5 (ii) in subclause (II)— 

6 (I) in the subclause heading, by 

7 inserting ‘‘; PARTICIPATION LOANS’’ 

8 after ‘‘PAYMENT LOANS’’; 

9 (II) by striking ‘‘60 percent’’ and 

inserting ‘‘not less than 2 10 ⁄3 of the 

11 amount reserved under subclause (I)’’; 

12 and 

13 (III) by inserting ‘‘and participa14 tion loans’’ after ‘‘section 310E’’; and 

15 (B) in clause (ii)(III), by striking ‘‘2003 

16 through 2007, 35 percent’’ and inserting ‘‘2008 

17 through 2012, not less than 50 percent of the 

18 total amount made available under paragraph 

19 (1)’’; and 

20 (2) in subparagraph (B)(i), by striking ‘‘25 per21 cent’’ and inserting ‘‘not less than 40 percent of the 

22 total amount made available under paragraph (1)’’. 
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1 SEC. 5023. TRANSITION TO PRIVATE COMMERCIAL OR 

2 OTHER SOURCES OF CREDIT. 

3 Subtitle D of the Consolidated Farm and Rural De4 velopment Act (7 U.S.C. 1981–2008r) is amended by in5 serting after section 344 the following: 

6 ‘‘SEC. 345. TRANSITION TO PRIVATE COMMERCIAL OR 

7 OTHER SOURCES OF CREDIT. 

8 ‘‘(a) IN GENERAL.—In making or insuring a farm 

9 loan under subtitle A or B, the Secretary shall establish 

10 a plan and promulgate regulations (including performance 

11 criteria) that promote the goal of transitioning borrowers 

12 to private commercial credit and other sources of credit 

13 in the shortest practicable period of time. 

14 ‘‘(b) COORDINATION.—In carrying out this section, 

15 the Secretary shall integrate and coordinate the transition 

16 policy described in subsection (a) with— 

17 ‘‘(1) the borrower training program established 

18 by section 359; 

19 ‘‘(2) the loan assessment process established by 

20 section 360; 

21 ‘‘(3) the supervised credit requirement estab22 lished by section 361; 

23 ‘‘(4) the market placement program established 

24 by section 362; and 

25 ‘‘(5) other appropriate programs and authori26 ties, as determined by the Secretary.’’. 
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1 SEC. 5024. EXTENSION OF THE RIGHT OF FIRST REFUSAL 

2 TO REACQUIRE HOMESTEAD PROPERTY TO 

3 IMMEDIATE FAMILY MEMBERS OF BOR4 ROWER-OWNER. 

5 Section 352(c)(4)(B) of the Consolidated Farm and 

6 Rural Development Act (7 U.S.C. 2000(c)(4)(B)) is 

7 amended— 

8 (1) in the 1st sentence, by striking ‘‘, the bor9 rower-owner’’ inserting ‘‘of a borrower-owner who is 

10 a socially disadvantaged farmer or rancher (as de11 fined in section 355(e)(2)), the borrower-owner or a 

12 member of the immediate family of the borrower13 owner’’; and 

14 (2) in the 2nd sentence, by inserting ‘‘or imme15 diate family member, as the case may be,’’ before 

16 ‘‘from’’. 

17 SEC. 5025. RURAL DEVELOPMENT AND FARM LOAN PRO18 GRAM ACTIVITIES. 

19 Subtitle D of the Consolidated Farm and Rural De20 velopment Act (7 U.S.C. 1981–2008r) is amended by in21 serting after section 364 the following: 

22 ‘‘SEC. 365. RURAL DEVELOPMENT AND FARM LOAN PRO23 GRAM ACTIVITIES. 

24 ‘‘The Secretary may not complete a study of, or enter 

25 into a contract with a private party to carry out, without 

26 specific authorization in a subsequent Act of Congress, a 
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1 competitive sourcing activity of the Secretary, including 

2 support personnel of the Department of Agriculture, relat3 ing to rural development or farm loan programs.’’. 

4 Subtitle D—Farm Credit 

5 SEC. 5031. BANK FOR COOPERATIVES VOTING STOCK. 

6 (a) IN GENERAL.—Section 3.3(c) of the Farm Credit 

7 Act of 1971 (12 U.S.C. 2124(c)) is amended by striking 

8 ‘‘and (ii)’’ and inserting ‘‘(ii) other categories of persons 

9 and entities described in sections 3.7 and 3.8 eligible to 

10 borrow from the bank, as determined by the bank’s board 

11 of directors; and (iii)’’. 

12 (b) CONFORMING AMENDMENTS.—Section 

13 4.3A(c)(1)(D) of such Act (12 U.S.C. 2154a(c)(1)(D)) is 

14 amended by redesignating clauses (ii) and (iii) as clauses 

15 (iii) and (iv), respectively, and inserting after clause (i) 

16 the following: 

17 ‘‘(ii) persons and entities eligible to 

18 borrow from the banks for cooperatives, as 

19 described in section 3.3(c)(ii);’’. 

20 SEC. 5032. RURAL UTILITY LOANS. 

21 Section 8.0(9) of the Farm Credit Act of 1971 (12 

22 U.S.C. 2279aa(9)) is amended— 

23 (1) by striking ‘‘or’’ at the end of subparagraph 

24 (A)(iii); 
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1 (2) by striking the period at the end of sub2 paragraph (B) and inserting ‘‘; or’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(C) that is a loan or interest in a loan for 

5 electric or telephone facilities by a cooperative 

6 lender to a borrower who has received or is eli7 gible to receive a loan under the Rural Elec8 trification Act (7 U.S.C. 901 et seq.), except 

9 that— 

10 ‘‘(i) subsections (c) and (d) of section 

11 8.6, and sections 8.8 and 8.9 shall not 

12 apply to the loan or interest in the loan or 

13 to an obligation backed by a pool of obliga14 tions relating to the loan or interest in the 

15 loan; and 

16 ‘‘(ii) the loan or interest in the loan 

17 shall be considered to meet all standards 

18 for qualified loans for all purposes under 

19 this Act, subject to reasonable under20 writing, security appraisal, and repayment 

21 standards established by the Corpora22 tion.’’. 
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1 SEC. 5033. FARM CREDIT SYSTEM INSURANCE CORPORA2 TION. 

3 (a) AUTHORITY TO PASS ALONG COST OF INSUR4 ANCE PREMIUMS.—Section 1.12(b) of the Farm Credit 

5 Act of 1971 (12 U.S.C. 2020(b)) is amended by striking 

6 the last sentence and inserting ‘‘The assessment on any 

7 such association or other financing institution for any pe8 riod shall be computed in an equitable manner.’’. 

9 (b) PREMIUMS; AMOUNT IN FUND NOT EXCEEDING

10 SECURE BASE AMOUNT.—Section 5.55(a) of such Act (12 

11 U.S.C. 2277a–4(a)) is amended— 

12 (1) in paragraph (1)— 

13 (A) in the matter preceding subparagraph 

14 (A), by striking ‘‘(2), the annual’’ and inserting 

15 ‘‘(3), the’’; 

16 (B) by striking subparagraphs (A) through 

17 (D) and inserting the following: 

18 ‘‘(A) the average outstanding insured obli19 gations issued by the bank for the calendar 

20 year, after deducting therefrom the percentages 

21 of the guaranteed portions of loans and invest22 ments described in paragraph (2), multiplied by 

23 0.0020; 

24 ‘‘(B) the average principal outstanding for 

25 the calendar year on loans made by the bank 
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1 that are in nonaccrual status, multiplied by 

2 0.0010; and 

3 ‘‘(C) the average amount outstanding for 

4 the calendar year of other-than-temporarily im5 paired investments made by the bank, multi6 plied by 0.0010.’’; 

7 (2) in paragraph (2), by striking ‘‘annual’’; 

8 (3) in paragraph (3), in the matter preceding 

9 subparagraph (A), by striking ‘‘As used’’ and all 

10 that follows through ‘‘that’’ and inserting ‘‘As used 

11 in this section, the term ‘government-guaranteed’ 

12 when applied to loans or investments, means loans, 

13 credits, or investments, or portions of loans, credits, 

14 or investments, that’’; and 

15 (4) by redesignating paragraphs (2) and (3) as 

16 paragraphs (3) and (4), respectively, and inserting 

17 after paragraph (1) the following: 

18 ‘‘(2) DEDUCTIONS FROM AVERAGE OUT19 STANDING INSURED OBLIGATIONS.—The average 

20 outstanding insured obligations issued by the bank 

21 for the calendar year referred to in subsection 

22 (a)(1)(A) of this section shall be reduced by deduct23 ing therefrom the sum of— 

24 ‘‘(A) 90 percent of the sum of— 
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1 ‘‘(i) the average principal outstanding 

2 for such calendar year on the guaranteed 

3 portions of Federal government-guaranteed 

4 loans made by the bank that are in accrual 

5 status; and 

6 ‘‘(ii) the average amount outstanding 

7 for the calendar year of the guaranteed 

8 portions of Federal government-guaranteed 

9 investments made by the bank that are not 

10 permanently impaired, as determined by 

11 the Corporation; and 

12 ‘‘(B) 80 percent of the sum of— 

13 ‘‘(i) the average principal outstanding 

14 for the calendar year on the guaranteed 

15 portions of State government-guaranteed 

16 loans made by the bank that are in accrual 

17 status; and 

18 ‘‘(ii) the average amount outstanding 

19 for the calendar year of the guaranteed 

20 portions of State government-guaranteed 

21 investments made by the bank that are not 

22 permanently impaired, as determined by 

23 the Corporation.’’. 
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1 (c) PREMIUMS; AMOUNT IN FUND EXCEEDING SE2 CURE BASE AMOUNT.—Section 5.55(b) of such Act (12 

3 U.S.C. 2277a–4(b)) is amended by striking ‘‘annual’’. 

4 (d) SECURE BASE AMOUNT.—Section 5.55(c) of such 

5 Act (12 U.S.C. 2277a–4(c)) is amended by striking the 

6 parenthetical phrase and inserting ‘‘(adjusted downward 

7 to exclude an amount equal to the sum of: (1) 90 percent 

8 of: (A) the guaranteed portions of principal outstanding 

9 on Federal government-guaranteed loans in accrual status 

10 made by the banks; and (B) the guaranteed portions of 

11 the amount of Federal government-guaranteed invest12 ments made by the banks that are not permanently im13 paired; and (2) 80 percent of: (A) the guaranteed portions 

14 of principal outstanding on State government-guaranteed 

15 loans in accrual status made by the banks; and (B) the 

16 guaranteed portions of the amount of State government17 guaranteed investments made by the banks that are not 

18 permanently impaired, as determined by the Corpora19 tion)’’. 

20 (e) DETERMINATION OF LOAN AND INVESTMENT

21 AMOUNTS.—Section 5.55(d) of such Act (12 U.S.C. 

22 2277a–4(d)) is amended— 

23 (1) in the subsection heading, by striking 

24 ‘‘PRINCIPAL OUTSTANDING’’ and inserting ‘‘LOAN

25 AND INVESTMENT AMOUNTS’’; 
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1 (2) in the matter preceding paragraph (1), by 

2 striking ‘‘For’’ and all that follows through ‘‘—’’ 

3 and inserting ‘‘For the purpose of subsections (a) 

4 and (c) of this section, the principal outstanding on 

5 all loans made by an insured System bank or the 

6 amount outstanding on all investments made by an 

7 insured System bank shall be determined based on 

8 all loans or investments made—’’; and 

9 (3) in each of paragraphs (1) and (2), by in10 serting ‘‘or investments’’ before ‘‘because’’. 

11 (f) ALLOCATION TO SYSTEM INSTITUTIONS OF EX12 CESS RESERVES.—Section 5.55(e) of such Act (12 U.S.C. 

13 2277a–4(e)) is amended— 

14 (1) in paragraph (3), by striking ‘‘the average 

15 secure base amount for the calendar year (as cal16 culated on an average daily balance basis)’’ and in17 serting ‘‘the secure base amount’’; 

18 (2) in paragraph (4), by striking subparagraph 

19 (B) and inserting the following: 

20 ‘‘(B) there shall be credited to the Allo21 cated Insurance Reserves Account of each in22 sured System bank an amount that bears the 

23 same ratio to the total amount (less any 

24 amount credited under subparagraph (A) of 

25 this paragraph) as the average principal out-
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1 standing for the calendar year on insured obli2 gations issued by the bank (after deducting 

3 therefrom the percentages of the guaranteed 

4 portions of loans and investments described in 

5 subsection (a)(2) of this section), bears to the 

6 average principal outstanding for the calendar 

7 year on insured obligations issued by all insured 

8 System banks (after deducting therefrom the 

9 percentages of the guaranteed portions of loans 

10 and investments so described).’’; and 

11 (3) in paragraph (6)— 

12 (A) in subparagraph (A)— 

13 (i) in the matter preceding clause (i), 

14 by striking ‘‘beginning’’ and all that fol15 lows through ‘‘2005’’; 

16 (ii) by striking clause (i) and inserting 

17 the following: 

18 ‘‘(i) subject to subparagraph (D), pay 

19 to each insured System bank, in a manner 

20 determined by the Corporation, an amount 

21 equal to the balance in its Allocated Insur22 ance Reserves Account; and’’; and 

23 (iii) in clause (ii)— 
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1 (I) by striking ‘‘(C), (E), and 

2 (F)’’ and inserting ‘‘(C) and (E)’’; 

3 and 

4 (II) by striking ‘‘outstanding,’’ 

5 and all that follows and inserting ‘‘at 

6 the time of the termination of the Fi7 nancial Assistance Corporation, of the 

8 balance in the Allocated Insurance 

9 Reserves Account established under 

10 subparagraph (1)(B).’’; 

11 (B) in subparagraph (C)— 

12 (i) in clause (i), by striking ‘‘(in addi13 tion to the amounts described in subpara14 graph (F)(ii))’’; and 

15 (ii) by striking clause (ii) and insert16 ing the following: 

17 ‘‘(ii) TERMINATION OF ACCOUNT.— 

18 On disbursement of $56,000,000, the Cor19 poration shall close the Account established 

20 under paragraph (1)(B) and transfer any 

21 remaining funds in the Account to the re22 maining Allocated Insurance Reserves Ac23 counts in accordance with paragraph 

24 (4)(B) for the calendar year in which the 

25 transfer occurs.’’; and 
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1 (C) by striking subparagraph (F). 

2 (g) CERTIFICATION OF PREMIUMS.— 

3 (1) FILING CERTIFIED STATEMENT.—Section 

4 5.56(a) of such Act (12 U.S.C. 2277a–5(a)) is 

5 amended to read as follows: 

6 ‘‘(a) FILING CERTIFIED STATEMENT.—On a date to 

7 be determined in the sole discretion of the Corporation’s 

8 Board of Directors, each insured System bank that be9 came insured before the beginning of the period for which 

10 premiums are being assessed (in this section referred to 

11 as the ‘period’) shall file with the Corporation a certified 

12 statement showing— 

13 ‘‘(1) the average outstanding insured obliga14 tions for the period issued by the bank; 

15 ‘‘(2) the average principal outstanding for the 

16 period on the guaranteed portion of Federal govern17 ment-guaranteed loans that are in accrual status 

18 and the average amount outstanding for the period 

19 of Federal government-guaranteed investments that 

20 are not permanently impaired (as defined in section 

21 5.55(a)(4)); 

22 ‘‘(3) the average principal outstanding for the 

23 period on State government-guaranteed loans that 

24 are in accrual status and the average amount out25 standing for the period of State government-guaran-
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1 teed investments that are not permanently impaired 

2 (as defined in section 5.55(a)(4)); 

3 ‘‘(4) the average principal outstanding for the 

4 period on loans that are in nonaccrual status and 

5 the average amount outstanding for the period of 

6 other-than-temporarily impaired investments; and 

7 ‘‘(5) the amount of the premium due the Cor8 poration from the bank for the period.’’. 

9 (2) PREMIUM PAYMENTS.—Section 5.56(c) of 

10 such Act (12 U.S.C. 2277a–5(c)) is amended to read 

11 as follows: 

12 ‘‘(c) PREMIUM PAYMENTS.—Each insured System 

13 bank shall pay to the Corporation the premium payments 

14 required under subsection (a), not more frequently than 

15 once in each calendar quarter, in such manner and at such 

16 time or times as the Board of Directors shall prescribe, 

17 except that the amount of the premium shall be estab18 lished not later than 60 days after filing the certified 

19 statement setting forth the amount of the premium.’’. 

20 (3) CONFORMING AMENDMENTS.—Section 5.56 

21 of such Act (12 U.S.C. 2277a–5) is amended by 

22 striking subsection (d) and redesignating subsection 

23 (e) as subsection (d). 
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1 (h) RULES AND REGULATIONS.—Section 5.58(10) of 

2 such Act (12 U.S.C. 2277a–7(10)) is amended by insert3 ing ‘‘and section 1.12(b)’’ after ‘‘part’’. 

4 SEC. 5034. RISK-BASED CAPITAL LEVELS. 

5 Section 8.32(a)(1) of the Farm Credit Act of 1971 

6 (12 U.S.C. 2279bb–1(a)(1)) is amended by striking all 

7 through ‘‘a pool of’’ and inserting the following: 

8 ‘‘(1) CREDIT RISK.— 

9 ‘‘(A) With respect to securities rep10 resenting an interest in, or obligations backed 

11 by, a pool of qualified loans (as defined in sec12 tion 8.0(9)(C)), owned or guaranteed by the 

13 Corporation, losses occur at a rate of default 

14 and severity reasonably related to risks in elec15 tric and telephone facility loans, respectively, as 

16 determined by the Director. 

17 ‘‘(B) With respect to securities rep18 resenting an interest in, or obligations backed 

19 by, a pool of other’’. 

20 TITLE VI—RURAL 

21 DEVELOPMENT 

Sec. 6001. Definition of rural. 

Sec. 6002. Water, waste disposal, and wastewater facility grants. 

Sec. 6003. Rural business opportunity grants. 

Sec. 6004. Rural water and wastewater circuit rider program. 

Sec. 6005. Tribal college and university essential community facilities. 

Sec. 6006. Emergency and imminent community water assistance grant program. 

Sec. 6007. Water systems for rural and native villages in Alaska. 
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Sec. 6008. Grants to nonprofit organizations to finance the construction, refurbishing, and servicing of individually-owned household water 

well systems in rural areas for individuals with low or moderate 

incomes. 

Sec. 6009. Rural cooperative development grants. 

Sec. 6010. Criteria to be applied in providing loans and loan guarantees 

under the business and industry loan program. 

Sec. 6011. Appropriate technology transfer for rural areas program. 

Sec. 6012. Grants to improve technical infrastructure and improve quality of 

rural health care facilities. 

Sec. 6013. Rural entrepreneur and microenterprise assistance program. 

Sec. 6014. Criteria to be applied in considering applications for rural development projects. 

Sec. 6015. National sheep industry improvement center. 

Sec. 6016. National rural development partnership. 

Sec. 6017. Historic barn preservation. 

Sec. 6018. Grants for NOAA weather radio transmitters. 

Sec. 6019. Delta regional authority. 

Sec. 6020. Northern great plains regional authority. 

Sec. 6021. Rural strategic investment program. 

Sec. 6022. Expansion of 911 access. 

Sec. 6023. Access to broadband telecommunications services in rural areas. 

Sec. 6024. Community connect grant program. 

Sec. 6025. Agriculture innovation center demonstration program. 

Sec. 6026. Rural firefighters and emergency medical service assistance program. 

Sec. 6027. Value-added agricultural market development program. 

Sec. 6028. Assistance for rural public television stations. 

Sec. 6029. Telemedicine and distance learning services in rural areas. 

Sec. 6030. Guarantees for bonds and notes issued for electrification or telephone purposes. 

Sec. 6031. Comprehensive rural broadband strategy. 

Sec. 6032. Study of railroad issues. 

1 SEC. 6001. DEFINITION OF RURAL. 

2 Not later than 60 days after the date of the enact3 ment of this Act, the Secretary of Agriculture shall pre4 pare and submit to the Committee on Agriculture of the 

5 House of Representatives and the Committee on Agri6 culture, Nutrition, and Forestry of the Senate a report 

7 that— 

8 (1) assesses the varying definitions of ‘‘rural’’ 

9 used by the Department of Agriculture; 
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1 (2) describes the effects those varying defini2 tions have on the programs administered by the De3 partment of Agriculture; and 

4 (3) makes recommendations for ways to better 

5 target funds provided through rural development 

6 programs. 

7 SEC. 6002. WATER, WASTE DISPOSAL, AND WASTEWATER 

8 FACILITY GRANTS. 

9 Section 306(a)(2)(B)(vii) of the Consolidated Farm 

10 and Rural Development Act (7 U.S.C. 1926(a)(2)(B)(vii)) 

11 is amended by striking ‘‘2002 through 2007’’ and insert12 ing ‘‘2008 through 2012’’. 

13 SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS. 

14 Section 306(a)(11)(D) of the Consolidated Farm and 

15 Rural Development Act (7 U.S.C. 1926(a)(11)(D)) is 

16 amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

17 SEC. 6004. RURAL WATER AND WASTEWATER CIRCUIT 

18 RIDER PROGRAM. 

19 Section 306(a)(22)(C) of the Consolidated Farm and 

20 Rural Development Act (7 U.S.C. 1926(a)(22)(C)) is 

21 amended by striking ‘‘$15,000,000 for fiscal year 2003’’ 

22 and inserting ‘‘$25,000,000 for fiscal year 2008’’. 
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1 SEC. 6005. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL 

2 COMMUNITY FACILITIES. 

3 Section 306(a)(25) of the Consolidated Farm and 

4 Rural Development Act (7 U.S.C. 1926(a)(25)) is amend5 ed— 

6 (1) by striking subparagraph (B) and inserting 

7 the following: 

8 ‘‘(B) FEDERAL SHARE.—The Secretary 

9 shall establish the maximum percentage of the 

10 cost of the facility that may be covered by a 

11 grant under this paragraph, except that the 

12 Secretary may not require non-Federal financial 

13 support in an amount that is greater than 5 

14 percent of the total cost.’’; and 

15 (2) in subparagraph (C), by striking ‘‘2003 

16 through 2007’’ and inserting ‘‘2008 through 2012’’. 

17 SEC. 6006. EMERGENCY AND IMMINENT COMMUNITY 

18 WATER ASSISTANCE GRANT PROGRAM. 

19 Section 306A(i)(2) of the Consolidated Farm and 

20 Rural Development Act (7 U.S.C. 1926a(i)(2)) is amended 

21 by striking ‘‘2003 through 2007’’ and inserting ‘‘2008 

22 through 2012’’. 

23 SEC. 6007. WATER SYSTEMS FOR RURAL AND NATIVE VIL24 LAGES IN ALASKA. 

25 Section 306D(d)(1) of the Consolidated Farm and 

26 Rural Development Act (7 U.S.C. 1926d(d)(1)) is amend-
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1 ed by striking ‘‘2001 through 2007’’ and inserting ‘‘2008 

2 through 2012’’. 

3 SEC. 6008. GRANTS TO NONPROFIT ORGANIZATIONS TO FI4 NANCE THE CONSTRUCTION, REFURBISHING, 

5 AND SERVICING OF INDIVIDUALLY-OWNED 

6 HOUSEHOLD WATER WELL SYSTEMS IN 

7 RURAL AREAS FOR INDIVIDUALS WITH LOW 

8 OR MODERATE INCOMES. 

9 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

10 306E(d) of the Consolidated Farm and Rural Develop11 ment Act (7 U.S.C. 1926e(d)) is amended by striking 

12 ‘‘2003 through 2007’’ and inserting ‘‘2008 through 

13 2012’’. 

14 (b) ADDITIONAL PRIORITY IN AWARDING GRANTS.— 

15 Section 306E(c) of such Act (7 U.S.C. 1926e(c)) is 

16 amended by inserting ‘‘, and to an applicant that has sub17 stantial expertise and experience in promoting the safe 

18 and productive use of individually-owned household water 

19 well systems and ground water. The ability of an applicant 

20 to provide matching funds shall not be taken into account 

21 in determining any priority in awarding grants under this 

22 section. The payment by a grantee of audit fees, business 

23 insurance, salary, wages, employee benefits, printing costs, 

24 postage costs, and legal fees associated with providing the 

25 assistance described in paragraph (1) shall be considered 
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1 the provision of matching funds by the grantee for pur2 poses of this section’’ before the period. 

3 SEC. 6009. RURAL COOPERATIVE DEVELOPMENT GRANTS. 

4 (a) ELIGIBILITY.—Section 310B(e)(5) of the Consoli5 dated Farm and Rural Development Act (7 U.S.C. 

6 1932(e)(5)) is amended— 

7 (1) in subparagraph (A), by striking ‘‘a nation8 ally coordinated, regionally or State-wide operated 

9 project’’ and inserting ‘‘activities to promote and as10 sist the development of cooperatively and mutually 

11 owned businesses’’; 

12 (2) in subparagraph (B), by inserting ‘‘to pro13 mote and assist the development of cooperatively 

14 and mutually owned businesses’’ before the semi15 colon; 

16 (3) by striking subparagraph (D) and redesig17 nating subparagraph (E) as subparagraph (D); 

18 (4) inserting after subparagraph (D) (as so re19 designated): 

20 ‘‘(E) demonstrate a commitment to— 

21 ‘‘(i) networking with and sharing the 

22 results of its efforts with other cooperative 

23 development centers and other organiza24 tions involved in rural economic develop25 ment efforts; and 
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1 ‘‘(ii) developing multi-organization 

2 and multi-State approaches to addressing 

3 the cooperative and economic development 

4 needs of rural areas.’’; and 

5 (5) in subparagraph (F), by striking ‘‘greater 

6 than’’ the 1st place it appears. 

7 (b) AUTHORITY TO AWARD MULTI-YEAR GRANTS.— 

8 Section 310(B)(e)(6) of such Act (7 U.S.C. 1932(e)(6)) 

9 is amended to read as follows: 

10 ‘‘(6) Grants awarded to centers that have re11 ceived no prior funding under this subsection shall 

12 be made for a period of 1 year. The Secretary shall 

13 evaluate programs receiving assistance under this 

14 subsection. The Secretary may award grants for a 

15 period of more than 1 year, but not more than 3 

16 years, to centers that have successfully met the cri17 teria under paragraph (5).’’. 

18 (c) AUTHORITY TO EXTEND GRANT PERIOD FOR 1 

19 YEAR.—Section 310B(e) of such Act (7 U.S.C. 1932(e)) 

20 is amended by redesignating paragraphs (7) through (9) 

21 as paragraphs (8) through (10), respectively, and insert22 ing after paragraph (6) the following: 

23 ‘‘(7) The Secretary may extend for only 1 addi24 tional 12-month period the period in which a grantee 

25 may use a grant made under this subsection.’’. 
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1 (d) COOPERATIVE RESEARCH PROGRAM.—Section 

2 310B(e) of such Act (7 U.S.C. 1932(e)), as amended by 

3 subsection (c) of this section, is amended by redesignating 

4 paragraphs (9) and (10) as paragraphs (10) and (11), re5 spectively, and inserting after paragraph (9) the following: 

6 ‘‘(10) The Secretary shall enter into a coopera7 tive research agreement with 1 or more qualified 

8 academic institutions in each fiscal year to conduct 

9 research on the national economic effects of all types 

10 of cooperatives.’’. 

11 (e) ADDRESSING NEEDS OF MINORITY COMMU12 NITIES.—Section 310B(e) of such Act (7 U.S.C. 1932(e)), 

13 as amended by subsections (c) and (d) of this section, is 

14 amended by redesignating paragraph (11) as paragraph 

15 (12) and inserting after paragraph (10) the following: 

16 ‘‘(11)(A) If the total amount appropriated 

17 under paragraph (12) of this subsection for a fiscal 

18 year exceeds $7,500,000, the Secretary shall reserve 

19 an amount equal to 20 percent of the amount so ap20 propriated for grants for cooperative development 

21 centers, individual cooperatives, or groups of co22 operatives, serving socially disadvantaged (within the 

23 meaning of section 355(e)) communities, a majority 

24 of the boards of directors or governing boards of 
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1 which are comprised of socially disadvantaged 

2 (withing such meaning) individuals. 

3 ‘‘(B) To the extent that the Secretary deter4 mines that funds reserved under subparagraph (A) 

5 will not be used for grants described in subpara6 graph (A) because of insufficient applications for the 

7 grants, the Secretary shall use the funds as other8 wise authorized by this subsection.’’. 

9 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 

10 310B(e)(12) of such Act (7 U.S.C. 1932(e)(12)), as so 

11 redesignated by subsections (c) through (e) of this section, 

12 is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

13 SEC. 6010. CRITERIA TO BE APPLIED IN PROVIDING 

14 LOANS AND LOAN GUARANTEES UNDER THE 

15 BUSINESS AND INDUSTRY LOAN PROGRAM. 

16 Section 310B(g) of the Consolidated Farm and Rural 

17 Development Act (7 U.S.C. 1932(g)) is amended by add18 ing at the end the following: 

19 ‘‘(9)(A) In providing loans and loan guarantees under 

20 this section, the Secretary shall consider an application 

21 more favorably when compared to other applications to the 

22 extent that the project described in the application sup23 ports community development and farm and ranch income 

24 by marketing, distributing, storing, aggregating, or proc-
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1 essing a locally or regionally produced agricultural prod2 uct. 

3 ‘‘(B) In subparagraph (A), the term ‘locally or re4 gionally produced agricultural product’ means an agricul5 tural product— 

6 ‘‘(I) which is produced and distributed in the 

7 locality or region where the finished product is mar8 keted; 

9 ‘‘(ii) which has been shipped a total distance of 

10 400 or fewer miles, as determined by the Secretary; 

11 and 

12 ‘‘(iii) about which the distributor has conveyed 

13 to the end-use consumers information regarding the 

14 origin of the product or production practices, or 

15 other valuable information.’’. 

16 SEC. 6011. APPROPRIATE TECHNOLOGY TRANSFER FOR 

17 RURAL AREAS PROGRAM. 

18 Section 310B of the Consolidated Farm and Rural 

19 Development Act (7 U.S.C. 1932) is amended by adding 

20 at the end the following: 

21 ‘‘(i) APPROPRIATE TECHNOLOGY TRANSFER FOR

22 RURAL AREAS PROGRAM.— 

23 ‘‘(1) DEFINITION OF NATIONAL NONPROFIT AG24 RICULTURAL ASSISTANCE INSTITUTION.—In this 
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1 subsection, the term ‘national nonprofit agricultural 

2 assistance institution’ means an organization that— 

3 ‘‘(A) is described in section 501(c)(3) of 

4 the Internal Revenue Code of 1986 and exempt 

5 from taxation under 501(a) of that Code; 

6 ‘‘(B) has staff and offices in multiple re7 gions; 

8 ‘‘(C) operates national sustainable agri9 culture technical assistance programs; and 

10 ‘‘(D) provides the technical assistance 

11 through toll-free hotlines, a website, publica12 tions, and work shops. 

13 ‘‘(2) ESTABLISHMENT.—The Secretary shall es14 tablish a national appropriate technology transfer 

15 for rural areas program to assist agricultural pro16 ducers that are seeking information to help agricul17 tural producers— 

18 ‘‘(A) reduce input costs; 

19 ‘‘(B) conserve energy resources; 

20 ‘‘(C) diversify operations through new en21 ergy crops and energy generation facilities; and 

22 ‘‘(D) expand markets for the agricultural 

23 commodities produced by the producers through 

24 use of sustainable farming practices. 

25 ‘‘(3) IMPLEMENTATION.— 
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1 ‘‘(A) IN GENERAL.—The Secretary shall 

2 carry out the program under this subsection by 

3 making a grant to, or offering to enter into a 

4 cooperative agreement with, a national non5 profit agricultural assistance organization. 

6 ‘‘(B) COST SHARE.—A grant made, or co7 operative agreement entered into, under sub8 paragraph (A) shall provide 100 percent of the 

9 cost of providing information pursuant to para10 graph (2). 

11 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

12 There are authorized to be appropriated to the Sec13 retary to carry out this subsection $5,000,000 for 

14 each fiscal year.’’. 

15 SEC. 6012. GRANTS TO IMPROVE TECHNICAL INFRASTRUC16 TURE AND IMPROVE QUALITY OF RURAL 

17 HEALTH CARE FACILITIES. 

18 Subtitle D of the Consolidated Farm and Rural De19 velopment Act (7 U.S.C. 1981–2008r), as amended by 

20 section 5025 of this Act, is amended by inserting after 

21 section 365 the following: 
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1 ‘‘SEC. 366. GRANTS TO IMPROVE TECHNICAL INFRASTRUC2 TURE AND IMPROVE QUALITY OF RURAL 

3 HEALTH CARE FACILITIES. 

4 ‘‘(a) IN GENERAL.—The Secretary shall establish a 

5 program to award grants to rural health facilities for the 

6 purpose of assisting the facilities in— 

7 ‘‘(1) purchasing health information technology 

8 to improve quality in health care and patient safety; 

9 or 

10 ‘‘(2) improving health care quality and patient 

11 safety, including the development of— 

12 ‘‘(A) quality improvement support struc13 tures to assist rural health systems and profes14 sionals— 

15 ‘‘(i) achieve greater integration of per16 sonal and population health services; and 

17 ‘‘(ii) address safety, effectiveness, 

18 patient- or community-centeredness, timeli19 ness, efficiency, and equity; and 

20 ‘‘(B) innovative approaches to the financ21 ing and delivery of health services to achieve 

22 rural health quality goals. 

23 ‘‘(b) DEFINITIONS.—In this section: 

24 ‘‘(1) HEALTH INFORMATION TECHNOLOGY.— 

25 The term ‘health information technology’ includes 

26 total expenditures incurred for— 
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1 ‘‘(A) purchasing, leasing, and installing 

2 computer software and hardware, including 

3 handheld computer technologies, and related 

4 services; 

5 ‘‘(B) making improvements to computer 

6 software and hardware; 

7 ‘‘(C) purchasing or leasing communications 

8 capabilities necessary for clinical data access, 

9 storage, and exchange; 

10 ‘‘(D) services associated with acquiring, 

11 implementing, operating, or optimizing the use 

12 of computer software and hardware and clinical 

13 health care informatics systems; 

14 ‘‘(E) providing education and training to 

15 eligible entity staff on information systems and 

16 technology designed to improve patient safety 

17 and quality of care; and 

18 ‘‘(F) purchasing, leasing, subscribing, or 

19 servicing support to establish interoperability 

20 that— 

21 ‘‘(i) integrates patient-specific clinical 

22 data with well-established national treat23 ment guidelines; 

24 ‘‘(ii) provides ongoing, continuous 

25 quality improvement functions that allow 
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1 providers to assess improvement rates over 

2 time and against averages for similar pro3 viders; and 

4 ‘‘(iii) integrates with larger health 

5 networks. 

6 ‘‘(2) RURAL AREA.—The term ‘rural area’ 

7 means any area of the United States that is not— 

8 ‘‘(A) included within the boundaries of any 

9 city, town, borough, or village, whether incor10 porated or unincorporated, with a population of 

11 more than 20,000 inhabitants; or 

12 ‘‘(B) the urbanized area contiguous and 

13 adjacent to such a city or town. 

14 ‘‘(3) RURAL HEALTH FACILITY.—The term 

15 ‘rural health facility’ means any of the following: 

16 ‘‘(A) SOLE COMMUNITY HOSPITAL.—A 

17 hospital (as defined in section 1886(a)(2) of the 

18 Social Security Act (42 U.S.C. 1395ww(a)(2))). 

19 ‘‘(B) CRITICAL ACCESS HOSPITAL.—A crit20 ical access hospital (as defined in section 

21 1861(mm)(1) of the Social Security Act (42 

22 U.S.C. 1395x(mm)(1))). 

23 ‘‘(C) FEDERALLY QUALIFIED HEALTH

24 CENTER IN RURAL AREAS.—A federally quali25 fied health center (as defined in section 
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1 1861(aa)(4) of the Social Security Act (42 

2 U.S.C. 1395x(aa)(4)) that is located in a rural 

3 area. 

4 ‘‘(D) RURAL PHYSICIAN OR RURAL PHYSI5 CIAN GROUP PRACTICE.—A physician or physi6 cian group practice that is located in a rural 

7 area. 

8 ‘‘(E) RURAL HEALTH CLINIC.—A rural 

9 health clinic (as defined in section 1861(aa)(2) 

10 of the Social Security Act (42 U.S.C. 

11 1395x(aa)(2))). 

12 ‘‘(F) MEDICARE DEPENDENT HOSPITAL.— 

13 A medicare-dependent, small rural hospital (as 

14 defined in section 1886(d)(5)(G)(iv) of the So15 cial Security Act (42 U.S.C. 

16 1395ww(d)(5)(G)(iv))). 

17 ‘‘(c) AMOUNT OF GRANT.—The Secretary shall deter18 mine the amount of a grant awarded under this section. 

19 ‘‘(d) FURNISHING THE SECRETARY WITH INFORMA20 TION.—An eligible entity receiving a grant under this sec21 tion shall furnish the Secretary with such information as 

22 the Secretary may require to— 

23 ‘‘(1) evaluate the project for which the grant is 

24 made; and 
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1 ‘‘(2) ensure that assistance provided under the 

2 grant is expended for the purposes for which the 

3 grant is made. 

4 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated to the Secretary to carry 

6 out this section not more than $30,000,000 for each of 

7 the fiscal years 2008 through 2012.’’. 

8 SEC. 6013. RURAL ENTREPRENEUR AND MICROENTER9 PRISE ASSISTANCE PROGRAM. 

10 Subtitle D of the Consolidated Farm and Rural De11 velopment Act (7 U.S.C. 1981–2008r), as amended by 

12 sections 5025 and 6012 of this Act, is amended by insert13 ing after section 366 the following: 

14 ‘‘SEC. 367. RURAL ENTREPRENEUR AND MICROENTER15 PRISE ASSISTANCE PROGRAM. 

16 ‘‘(a) DEFINITIONS.—In this section: 

17 ‘‘(1) ECONOMICALLY DISADVANTAGED MICRO18 ENTREPRENEUR.—The term ‘economically disadvan19 taged microentrepreneur’ means an owner, majority 

20 owner, or developer of a microenterprise that has the 

21 ability to compete in the private sector but has been 

22 impaired because of diminished capital and credit 

23 opportunities, as compared to other microentre24 preneurs in the industry. 
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1 ‘‘(2) INDIAN TRIBE.—The term ‘Indian tribe’ 

2 has the meaning given the term in section 4 of the 

3 Indian Self-Determination and Education Assistance 

4 Act (25 U.S.C. 450b). 

5 ‘‘(3) INTERMEDIARY.—The term ‘intermediary’ 

6 means a nonprofit entity that provides assistance— 

7 ‘‘(A) to a microenterprise development or8 ganization; or 

9 ‘‘(B) for a microenterprise development 

10 program. 

11 ‘‘(4) LOW-INCOME INDIVIDUAL.—The term 

12 ‘low-income individual’ means an individual with an 

13 income (adjusted for family size) of not more than 

14 80 percent of the national median income. 

15 ‘‘(5) MICROCREDIT.—The term ‘microcredit’ 

16 means a business loan or loan guarantee of not more 

17 than $50,000 that is provided to a rural entre18 preneur. 

19 ‘‘(6) MICROENTERPRISE.—The term ‘micro20 enterprise’ means— 

21 ‘‘(A) a sole proprietorship; or 

22 ‘‘(B) a business entity with not more than 

23 10 full-time-equivalent employees. 

24 ‘‘(7) MICROENTERPRISE DEVELOPMENT ORGA25 NIZATION.— 
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1 ‘‘(A) IN GENERAL.—The term ‘microenter2 prise development organization’ means a non3 profit entity that— 

4 ‘‘(i) provides training and technical 

5 assistance to rural entrepreneurs; and 

6 ‘‘(ii) facilitates access to capital or an7 other service described in subsection (b) 

8 for rural entrepreneurs. 

9 ‘‘(B) INCLUSIONS.—The term ‘microenter10 prise development organization’ includes an or11 ganization described in subparagraph (A) with 

12 a demonstrated record of delivering services to 

13 economically disadvantaged microentrepreneurs, 

14 or an effective plan to develop a program to de15 liver microenterprise services to rural entre16 preneurs effectively, as determined by the Sec17 retary. 

18 ‘‘(8) MICROENTERPRISE DEVELOPMENT PRO19 GRAM.—The term ‘microenterprise development pro20 gram’ means a program administered by a qualified 

21 organization serving a rural area. 

22 ‘‘(9) MICROENTREPRENEUR.—The term ‘micro23 entrepreneur means’ the owner, operator, or devel24 oper of a microenterprise. 
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1 ‘‘(10) PROGRAM.—The term ‘program’ means 

2 the rural entrepreneur and microenterprise program 

3 established under subsection (b)(1). 

4 ‘‘(11) QUALIFIED ORGANIZATION.—The term 

5 ‘qualified organization’ means— 

6 ‘‘(A) a microenterprise development orga7 nization or microenterprise development pro8 gram that has a demonstrated record of deliv9 ering microenterprise services to rural entre10 preneurs, or an effective plan to develop a pro11 gram to deliver microenterprise services to rural 

12 entrepreneurs effectively, as determined by the 

13 Secretary; 

14 ‘‘(B) an intermediary that has a dem15 onstrated record of delivering assistance to 

16 microenterprise development organizations or 

17 microenterprise development programs; 

18 ‘‘(C) an Indian tribe, the tribal government 

19 of which certifies to the Secretary that there is 

20 no microenterprise development organization or 

21 microenterprise development program under the 

22 jurisdiction of the Indian tribe; 

23 ‘‘(D) a group of 2 or more organizations or 

24 Indian tribes described in any of subparagraphs 
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1 (A) through (C) that agree to act jointly as a 

2 qualified organization under this section; or 

3 ‘‘(E) for purposes of subsection (b), a pub4 lic college or university that has a demonstrated 

5 record of delivering assistance to microenter6 prise development organizations or microenter7 prise development programs. 

8 ‘‘(12) RURAL AREA.—The term ‘rural area’ 

9 means any area of the United States that is not— 

10 ‘‘(A) included within the boundaries of any 

11 city, town, borough, or village, whether incor12 porated or unincorporated, with a population of 

13 more than 20,000 inhabitants; or 

14 ‘‘(B) the urbanized area contiguous and 

15 adjacent to such a city or town. 

16 ‘‘(13) RURAL CAPACITY-BUILDING SERVICE.— 

17 The term ‘rural capacity-building service’ means a 

18 service provided to an organization that— 

19 ‘‘(A) is, or is in the process of becoming, 

20 a microenterprise development organization or 

21 microenterprise development program; and 

22 ‘‘(B) serves rural areas for the purpose of 

23 enhancing the ability of the organization to pro24 vide training, technical assistance, and other re25 lated services to rural entrepreneurs. 
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1 ‘‘(14) RURAL ENTREPRENEUR.—The term 

2 ‘rural entrepreneur’ means a microentrepreneur, or 

3 prospective microentrepreneur— 

4 ‘‘(A) the principal place of business of 

5 which is in a rural area; and 

6 ‘‘(B) that is unable to obtain sufficient 

7 training, technical assistance, or microcredit 

8 elsewhere, as determined by the Secretary. 

9 ‘‘(15) TRIBAL GOVERNMENT.—The term ‘tribal 

10 government’ means the governing body of an Indian 

11 tribe. 

12 ‘‘(b) RURAL ENTREPRENEURSHIP AND MICRO13 ENTERPRISE PROGRAM.— 

14 ‘‘(1) ESTABLISHMENT.—The Secretary shall es15 tablish a rural entrepreneurship and microenterprise 

16 program. 

17 ‘‘(2) PURPOSE.—The purpose of the program 

18 shall be to provide low-income individuals and mod19 erate-income individuals with— 

20 ‘‘(A) the skills necessary to establish new 

21 small businesses in rural areas; and 

22 ‘‘(B) continuing technical and financial as23 sistance as individuals and business starting or 

24 operating small businesses. 

25 ‘‘(3) GRANTS.— 
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1 ‘‘(A) IN GENERAL.—The Secretary may 

2 make a grant under the program to a qualified 

3 organization— 

4 ‘‘(i) to provide training, operational 

5 support, or a rural capacity-building serv6 ice to a qualified organization to assist the 

7 qualified organization in developing micro8 enterprise training, technical assistance, 

9 market development assistance, and other 

10 related services, primarily for business with 

11 10 or fewer full-time-equivalent employees; 

12 ‘‘(ii) to assist in researching and de13 veloping the best practices in delivering 

14 training, technical assistance, and micro15 credit to rural entrepreneurs; and 

16 ‘‘(iii) to carry out such other projects 

17 and activities as the Secretary determines 

18 to be consistent with the purposes of this 

19 section. 

20 ‘‘(B) DIVERSITY.—In making grants under 

21 this paragraph, the Secretary shall ensure, to 

22 the maximum extent practicable, that grant re23 cipients include qualified organizations— 

24 ‘‘(i) of varying sizes; and 
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1 ‘‘(ii) that serve racially and ethnically 

2 diverse populations. 

3 ‘‘(C) MATCHING REQUIREMENT.— 

4 ‘‘(i) IN GENERAL.—As a condition of 

5 any grant made to a qualified organization 

6 under this paragraph, the Secretary shall 

7 require the qualified organization to match 

8 not less than 25 percent of the total 

9 amount of the grant. 

10 ‘‘(ii) SOURCES.—In addition to cash 

11 from non-Federal sources, a matching 

12 share provided by the qualified organiza13 tion may include indirect costs or in-kind 

14 contributions funded under non-Federal 

15 programs. 

16 ‘‘(4) RURAL MICROLOAN AND TECHNICAL AS17 SISTANCE PROGRAM.— 

18 ‘‘(A) ESTABLISHMENT.—In carrying out 

19 the program, the Secretary may carry out a 

20 rural microloan program. 

21 ‘‘(B) PURPOSE.—The purpose of the rural 

22 microloan program shall be to provide technical 

23 and financial assistance through qualified orga24 nizations to sole proprietorships and small busi25 nesses located in rural areas with a particular 
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1 focus on businesses with 10 or fewer full-time 

2 equivalent employees. 

3 ‘‘(C) AUTHORITY OF SECRETARY.—In car4 rying out the rural microloan program, the Sec5 retary may— 

6 ‘‘(i) make loans to qualified organiza7 tions for the purpose of making short8 term, fixed interest rate microloans to 

9 startup, newly established, and growing 

10 rural microbusiness concerns; and 

11 ‘‘(ii) in conjunction with the loans, 

12 provide grants in accordance with subpara13 graph (E) to the organizations for the pur14 pose of providing intensive marketing, 

15 management, and technical assistance to 

16 small business concerns that are borrowers 

17 under this paragraph. 

18 ‘‘(D) LOAN DURATION; INTEREST RATES; 

19 CONDITIONS.— 

20 ‘‘(i) LOAN DURATION.—A loan made 

21 by the Secretary under this paragraph 

22 shall be for a term of 20 years. 

23 ‘‘(ii) APPLICABLE INTEREST RATES.— 

24 A loan made by the Secretary under this 

25 paragraph to a qualified organization shall 
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1 bear an annual interest rate of at least 1 

2 percent. 

3 ‘‘(iii) DEFERRAL OF INTEREST AND

4 PRINCIPAL.—The Secretary may permit 

5 the deferral of payments, for principal and 

6 interest, on a loan made under this para7 graph for a period of not more than 2 

8 years, beginning on the date the loan is 

9 made. 

10 ‘‘(E) GRANT AMOUNTS.— 

11 ‘‘(i) IN GENERAL.—Except as other12 wise provided in this section, each qualified 

13 organization that receives a loan under this 

14 paragraph shall be eligible to receive a 

15 grant to provide marketing, management, 

16 and technical assistance to small business 

17 concerns that are borrowers or potential 

18 borrowers under this subsection. 

19 ‘‘(ii) MAXIMUM AMOUNT FOR MICRO20 ENTERPRISE DEVELOPMENT ORGANIZA21 TIONS.—Each microenterprise development 

22 organization that receives a loan under this 

23 paragraph shall receive an annual grant in 

24 an amount equal to not more than 25 per25 cent of the total outstanding balance of 
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1 loans made to the microenterprise develop2 ment organization under this paragraph, 

3 as of the date the grant is made. 

4 ‘‘(iii) MATCHING REQUIREMENT.— 

5 ‘‘(I) IN GENERAL.—As a condi6 tion of any grant made to a qualified 

7 organization under this subparagraph, 

8 the Secretary shall require the quali9 fied organization to match not less 

10 than 15 percent of the total amount 

11 of the grant. 

12 ‘‘(II) SOURCES.—In addition to 

13 cash from non-Federal sources, a 

14 matching share provided by the quali15 fied organization may include indirect 

16 costs or in-kind contributions funded 

17 under non-Federal programs. 

18 ‘‘(c) ADMINISTRATIVE EXPENSES.—Not more than 

19 10 percent of assistance received by a qualified organiza20 tion for a fiscal year under this section may be used to 

21 pay administrative expenses. 

22 ‘‘(d) FURNISHING THE SECRETARY WITH INFORMA23 TION.—A qualified organization that receives a grant 

24 under subsection (b)(3) or loan under subsection (b)(4) 

25 shall furnish the Secretary by December 1 such informa-
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1 tion as the Secretary may require to ensure that assistance 

2 provided under the grant or loan is expended for the pur3 poses for which the grant or loan is made. 

4 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated to the Secretary to carry 

6 out this section not more than $20,000,000 for each of 

7 the fiscal years 2008 through 2012.’’. 

8 SEC. 6014. CRITERIA TO BE APPLIED IN CONSIDERING AP9 PLICATIONS FOR RURAL DEVELOPMENT 

10 PROJECTS. 

11 Subtitle D of the Consolidated Farm and Rural De12 velopment Act (7 U.S.C. 1981–2008r), as amended by 

13 sections 5025, 6012, and 6013 of this Act, is amended 

14 by inserting after section 367 the following: 

15 ‘‘SEC. 368. CRITERIA TO BE APPLIED IN CONSIDERING AP16 PLICATIONS FOR RURAL DEVELOPMENT 

17 PROJECTS. 

18 ‘‘(a) IN GENERAL.—The Secretary shall review the 

19 income demographics, population, seasonal increases, and 

20 other factors as determined by the Secretary, of eligible 

21 communities for each program authorized or modified by, 

22 or funded pursuant to, an amendment made by title VI 

23 of the Farm, Nutrition, and Bioenergy Act of 2007 or sec24 tion 306, 306A, 306C, 306D, 306E, 310(c), 310(e), 

25 310B(b), 310B(c), 310B(e), or 379B, or subtitle F, G, 
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1 H, or I of this Act, and which proposes to serve a rural 

2 area (as defined by the applicable law). 

3 ‘‘(b) REGULATIONS.—The Secretary shall issue regu4 lations to establish the applicable limitations that a rural 

5 area cannot exceed in order to remain eligible for a pro6 gram referred to in subsection (a).’’. 

7 SEC. 6015. NATIONAL SHEEP INDUSTRY IMPROVEMENT 

8 CENTER. 

9 (a) FUNDING.—Section 375(e)(6) of the Consolidated 

10 Farm and Rural Development Act (7 U.S.C. 2008j(e)(6)) 

11 is amended by striking paragraphs (B) and (C) and insert12 ing the following: 

13 ‘‘(B) AUTHORIZATION OF APPROPRIA14 TIONS.—There are authorized to be appro15 priated to the Secretary to carry out this sec16 tion $10,000,000 for each of the fiscal years 

17 2008 through 2012.’’. 

18 (b) ELIMINATION OF REQUIREMENT TO PRIVATIZE

19 REVOLVING FUND.— Section 375 of such Act (7 U.S.C. 

20 2008j) is amended by striking subsection (j). 

21 SEC. 6016. NATIONAL RURAL DEVELOPMENT PARTNER22 SHIP. 

23 Section 378(g)(1) of the Consolidated Farm and 

24 Rural Development Act (7 U.S.C. 2008m(g)(1)) is amend-
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1 ed by striking ‘‘2003 through 2007’’ and inserting ‘‘2008 

2 through 2012’’. 

3 SEC. 6017. HISTORIC BARN PRESERVATION. 

4 (a) GRANT PRIORITY.—Section 379A(c) of the Con5 solidated Farm and Rural Development Act (7 U.S.C. 

6 2008o(c)) is amended by redesignating paragraphs (3) 

7 and (4) as paragraphs (4) and (5) and inserting after 

8 paragraph (2) the following: 

9 ‘‘(3) PRIORITY.—In making grants under this 

10 subsection, the Secretary shall give the highest pri11 ority to funding projects described in paragraph 

12 (2)(C).’’. 

13 (b) LIMITATIONS ON AUTHORIZATION OF APPRO14 PRIATIONS.—Section 379A(c)(5) of such Act (7 U.S.C. 

15 2008o(c)(5)), as so redesignated by subsection (a) of this 

16 section, is amended by striking ‘‘2002 through 2007’’ and 

17 inserting ‘‘2008 through 2012’’. 

18 SEC. 6018. GRANTS FOR NOAA WEATHER RADIO TRANSMIT19 TERS. 

20 Section 379B(d) of the Consolidated Farm and Rural 

21 Development Act (7 U.S.C. 2008p(d)) is amended by 

22 striking ‘‘2002 through 2007’’ and inserting ‘‘2008 

23 through 2012’’. 
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1 SEC. 6019. DELTA REGIONAL AUTHORITY. 

2 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

3 382M(a) of the Consolidated Farm and Rural Develop4 ment Act (7 U.S.C. 2009aa–12(a)) is amended by striking 

5 ‘‘2001 through 2007’’ and inserting ‘‘2008 through 

6 2012’’. 

7 (b) TERMINATION OF AUTHORITY.—Section 382N of 

8 such Act (7 U.S.C. 2009aa–13) is amended by striking 

9 ‘‘2007’’ and inserting ‘‘2012’’. 

10 SEC. 6020. NORTHERN GREAT PLAINS REGIONAL AUTHOR11 ITY. 

12 (a) FEDERAL SHARE OF ADMINISTRATIVE EX13 PENSES.—Section 383B(g)(1) of the Consolidated Farm 

14 and Rural Development Act (7 U.S.C. 2009bb–1(g)(1)) 

15 is amended— 

16 (1) in subparagraph (A), by striking ‘‘2002’’ 

17 and inserting ‘‘2007’’; 

18 (2) in subparagraph (B), by striking ‘‘2003’’ 

19 and inserting ‘‘2008’’; and 

20 (3) in subparagraph (C), by striking ‘‘2004’’ 

21 and inserting ‘‘2009’’. 

22 (b) TECHNICAL AMENDMENT.—Section 

23 383B(d)(6)(A) of such Act (7 U.S.C. 2009bb–1(d)(6)(A)) 

24 is amended by inserting ‘‘and resource conservation’’ after 

25 ‘‘development’’. 
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1 (c) ELIMINATION OF PRIORITIZATION RANKING OF

2 ACTIVITIES TO BE FUNDED.—Section 383C(b)(2) of such 

3 Act (7 U.S.C. 2009bb–2(b)(2)) is amended by striking 

4 ‘‘activities in the following order of priority’’ and inserting 

5 ‘‘following activities’’. 

6 (d) ELIMINATION OF ISOLATED AREA OF DISTRESS

7 DESIGNATION.— 

8 (1) IN GENERAL.—Section 383F(a) of such Act 

9 (7 U.S.C. 2009bb–5(a)) is amended— 

10 (A) by adding ‘‘and’’ at the end of para11 graph (1); 

12 (B) by striking ‘‘; and’’ at the end of para13 graph (2) and inserting a period; and 

14 (C) by striking paragraph (3). 

15 (2) CONFORMING AMENDMENTS.—Section 

16 383F(b) of such Act (7 U.S.C. 2009bb–5(b)) is 

17 amended— 

18 (A) in paragraph (1), by striking ‘‘and iso19 lated areas of distress’’; and 

20 (B) in paragraph (2), by striking ‘‘or iso21 lated areas of distress’’. 

22 (e) REDUCTION OF MINIMUM FUNDS ALLOCATION

23 FOR DISTRESSED COUNTIES.—Section 383F(b)(1) of 

24 such Act (7 U.S.C. 2009bb–5(b)(1)) is amended by strik25 ing ‘‘75’’ and inserting ‘‘50’’. 
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1 (f) ELIMINATION OF PROHIBITION ON PROVIDING

2 FUNDS TO NONDISTRESSED COUNTIES.—Section 383F of 

3 such Act (7 U.S.C. 2009bb–5) is amended by striking sub4 section (c) and redesignating subsection (d) as subsection 

5 (c). 

6 (g) INCLUSION OF RENEWABLE ENERGY AMONG OB7 JECTS OF MINIMUM FUNDS ALLOCATION.—Section 

8 383F(c) of such Act (7 U.S.C. 2009bb–5(c)), as so redes9 ignated by subsection (a) of this section, is amended— 

10 (1) in the subsection heading, by inserting ‘‘RE11 NEWABLE ENERGY,’’ after ‘‘TELECOMMUNI12 CATION,’’; and 

13 (2) by inserting ‘‘renewable energy,’’ after 

14 ‘‘telecommunication’’. 

15 (h) AUTHORIZATION OF APPROPRIATIONS.—Section 

16 383M(a) of such Act (7 U.S.C. 2009bb–12(a)) is amended 

17 by striking ‘‘2002 through 2007’’ and inserting ‘‘2008 

18 through 2012’’. 

19 (i) TERMINATION OF AUTHORITY.—Section 383N of 

20 such Act (7 U.S.C. 2009bb–13) is amended by striking 

21 ‘‘2007’’ and inserting ‘‘2012’’. 

22 SEC. 6021. RURAL STRATEGIC INVESTMENT PROGRAM. 

23 (a) LIMITATIONS ON AUTHORIZATION OF APPRO24 PRIATIONS.—Section 385E of the Consolidated Farm and 
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1 Rural Development Act (7 U.S.C. 2009dd–4) is amended 

2 to read as follows: 

3 ‘‘SEC. 385E. LIMITATIONS ON AUTHORIZATION OF APPRO4 PRIATIONS. 

5 ‘‘There are authorized to be appropriated to the Sec6 retary to carry out this subtitle not more than 

7 $25,000,000 for each of the fiscal years 2008 through 

8 2012.’’. 

9 (b) PRESERVATION AND PROMOTION OF RURAL

10 HERITAGE.— 

11 (1) DEFINITION.—Section 385B of such Act (7 

12 U.S.C. 2009dd–1) is amended by adding at the end 

13 the following: 

14 ‘‘(12) RURAL HERITAGE.—The term ‘rural her15 itage’ means historic sites, structures, and districts 

16 which may include rural downtown areas and main 

17 streets, neighborhoods, farmsteads, scenic and his18 toric trails, and heritage areas and historic land19 scapes.’’. 

20 (2) RURAL STRATEGIC INVESTMENT PLANNING

21 GRANTS.—Section 385F(b) of such Act (7 U.S.C. 

22 2009dd–5(b)) is amended— 

23 (A) by striking ‘‘and’’ at the end of para24 graph (6); and 
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1 (B) by redesignating paragraph (7) as 

2 paragraph (8) and inserting after paragraph 

3 (6) the following: 

4 ‘‘(7) preservation and promotion of rural herit5 age; and’’. 

6 (3) INNOVATION GRANTS.—Section 385G(d) of 

7 such Act (7 U.S.C. 2009dd–66–(d)) is amended— 

8 (A) by striking ‘‘and’’ at the end of para9 graph (6); and 

10 (B) by redesignating paragraph (7) as 

11 paragraph (8) and inserting after paragraph 

12 (6) the following: 

13 ‘‘(7) demonstrate a plan to protect and promote 

14 rural heritage; and’’. 

15 SEC. 6022. EXPANSION OF 911 ACCESS. 

16 Section 315(b) of the Rural Electrification Act of 

17 1936 (7 U.S.C. 904e(b)) is amended by striking ‘‘2002 

18 through 2007’’ and inserting ‘‘2008 through 2012’’. 

19 SEC. 6023. ACCESS TO BROADBAND TELECOMMUNICATIONS 

20 SERVICES IN RURAL AREAS. 

21 (a) DEFINITIONS.—Section 601(b) of the Rural Elec22 trification Act of 1936 (7 U.S.C. 950bb(b)) is amended 

23 by striking paragraph (2) and inserting the following: 
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1 ‘‘(2) ELIGIBLE RURAL COMMUNITY.—The term 

2 ‘eligible rural community’ means any area of the 

3 United States that is not— 

4 ‘‘(A) included within the boundaries of any 

5 city, town, borough, or village, whether incor6 porated or unincorporated, with a population of 

7 more than 20,000 inhabitants; or 

8 ‘‘(B) the urbanized area contiguous and 

9 adjacent to such a city or town.’’. 

10 (b) PRIORITIZATION OF APPLICATIONS.— 

11 (1) DEFINITION.—Section 601(b) of such Act 

12 (7 U.S.C. 950bb(b)), as amended by subsection (a) 

13 of this section, is amended by adding at the end the 

14 following: 

15 ‘‘(3) INCUMBENT SERVICE PROVIDER.—The 

16 term ‘incumbent service provider’ means, with re17 spect to an application submitted pursuant to this 

18 section, an entity that is providing broadband service 

19 to at least 5 percent of the households in the service 

20 area proposed in the application.’’. 

21 (2) PRIORITY BASED ON NUMBER OF INCUM22 BENT SERVICE PROVIDERS.—Section 601(c) of such 

23 Act (7 U.S.C. 950bb(c)) is amended by adding at 

24 the end the following: 
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1 ‘‘(3) APPLICATIONS PRIORITIZED BASED ON

2 NUMBER OF INCUMBENT SERVICE PROVIDERS.— 

3 ‘‘(A) IN GENERAL.—In making or guaran4 teeing loans under paragraph (1), the Secretary 

5 shall give priority, in the following order, to ap6 plications from eligible rural communities that 

7 have— 

8 ‘‘(i) no incumbent service provider; 

9 ‘‘(ii) 1 incumbent service provider; or 

10 ‘‘(iii) 2 incumbent service providers 

11 who, together, serve not more than 25 per12 cent of the households in the service area 

13 proposed in the application. 

14 ‘‘(B) PROHIBITIONS.—In carrying out this 

15 section, the Secretary may not— 

16 ‘‘(i) make a loan to an eligible com17 munity in which there are 3 or more in18 cumbent service providers, unless— 

19 ‘‘(I) the loan is to an incumbent 

20 service provider of the community; 

21 ‘‘(II) the other providers in that 

22 community are notified of the applica23 tion before approval by the Secretary, 

24 and have sufficient time to comment 

25 on the application; and 
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1 ‘‘(III) the application includes 

2 substantially increasing— 

3 ‘‘(aa) the quality of 

4 broadband service in the commu5 nity; and 

6 ‘‘(bb) the provision of 

7 broadband service to unserved 

8 households inside and outside the 

9 community; or 

10 ‘‘(ii) make a loan for new construction 

11 to any community in which more than 75 

12 percent of the households may obtain af13 fordable broadband service, on request, 

14 from at least 1 incumbent service pro15 vider.’’. 

16 (c) PAPERWORK REDUCTION.—Section 601(c) of 

17 such Act (7 U.S.C. 950bb(c)), as amended by subsection 

18 (b)(2) of this section, is amended by adding at the end 

19 the following: 

20 ‘‘(4) PAPERWORK REDUCTION.—The Secretary 

21 shall take steps to reduce the cost and paperwork 

22 associated with applying for a loan or loan guar23 antee under this section by first-time applicants, 

24 particularly those who are smaller and start-up 

25 Internet providers, including by providing for a new 
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•HR 2419 EH1S 

1 application which shall maintain the ability of the 

2 Secretary to make an analysis of the risk associated 

3 with the loan involved.’’. 

4 (d) INCREASE IN MAXIMUM NUMBER OF SUB5 SCRIBER LINES THAT MAY BE SERVED BY AN ELIGIBLE

6 ENTITY.—Section 601(d)(3) of such Act (7 U.S.C. 

7 950bb(d)(3)) is amended by striking ‘‘2’’ and inserting 

8 ‘‘10’’. 

9 (e) LIMITATION ON FUNDS TO ENTITIES WITH

10 MORE THAN 2 PERCENT OF SUBSCRIBER LINES.—Sec11 tion 601(d) of such Act (7 U.S.C. 950bb(d)) is amended 

12 by adding at the end the following: 

13 ‘‘(4) LIMITATION ON FUNDS TO ENTITIES WITH

14 MORE THAN 2 PERCENT OF SUBSCRIBER LINES.— 

15 Not more than 25 percent of the loans made under 

16 this section in a single fiscal year may be approved 

17 for entities that serve more than 2 percent of the 

18 telephone subscriber lines in the United States.’’. 

19 (f) LOAN TERM NOT TO EXCEED 35 YEARS.—Sec20 tion 601(g)(2) of such Act (7 U.S.C. 950bb(g)(2)) is 

21 amended by striking ‘‘not to exceed the useful life of the 

22 assets constructed, improved, or acquired with the pro23 ceeds of the loan or extension of credit.’’ and inserting 

24 ‘‘of such length, not exceeding 35 years, as the borrower 

25 may request, so long as the Secretary determines that the 
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1 loan is adequately secured. In determining the term of a 

2 loan or loan guarantee, the Secretary shall consider wheth3 er the recipient is or would be serving an area that is not 

4 receiving broadband services.’’ 

5 (g) ADEQUACY OF SECURITY.—Section 601 of such 

6 Act (7 U.S.C. 950bb) is amended by redesignating sub7 sections (h) through (k) as subsections (i) through (l), re8 spectively, and inserting after subsection (g) the following: 

9 ‘‘(h) ADEQUACY OF SECURITY.—The Secretary shall 

10 ensure that the type, amount, and method of security used 

11 to secure any loan or loan guarantee provided under this 

12 section is commensurate to the risk involved with the loan 

13 or loan guarantee, particularly when the loan or loan guar14 antee is issued to a financially healthy, strong, and stable 

15 entity. In determining the amount and method of security, 

16 the Secretary shall consider reducing the security in areas 

17 that do not have broadband service.’’. 

18 (h) GENERAL REPORT ON PROGRAM.—Section 601 

19 of such Act (7 U.S.C. 950bb), as amended by subsection 

20 (g) of this section, is amended by redesignating sub21 sections (k) and (l) as subsections (l) and (m), respec22 tively, and inserting after subsection (j) the following: 

23 ‘‘(k) GENERAL PROGRAM REPORT.—Not later than 

24 December 1 of each year, the Secretary shall prepare and 

25 submit to the Committee on Agriculture of the House of 
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1 Representatives and the Committee on Agriculture, Nutri2 tion, and Forestry of the Senate a report that details for 

3 the preceding fiscal year— 

4 ‘‘(1) the loans made under this section; 

5 ‘‘(2) the communities served under this section; 

6 ‘‘(3) the speed of the broadband service offered 

7 by applicants for, and recipients of, loans or loan 

8 guarantees under this section; 

9 ‘‘(4) the type of services offered by the appli10 cants and recipients; 

11 ‘‘(5) the length of time to approve applications 

12 submitted pursuant to this section; and 

13 ‘‘(6) the outreach efforts undertaken by the De14 partment of Agriculture to encourage persons in 

15 areas without broadband service to submit applica16 tions pursuant to this section.’’. 

17 (i) NATIONAL CENTER FOR RURAL TELECOMMUNI18 CATIONS ASSESSMENT.—Section 601 of such Act (7 

19 U.S.C. 950bb), as amended by subsections (g) and (h) of 

20 this section, is amended by redesignating subsections (l) 

21 and (m) as subsections (m) and (n), respectively, and in22 serting after subsection (k) the following: 

23 ‘‘(l) NATIONAL CENTER FOR RURAL TELECOMMUNI24 CATIONS ASSESSMENT.— 
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1 ‘‘(1) ESTABLISHMENT OF CENTER.—The Sec2 retary shall designate a National Center for Rural 

3 Telecommunications Assessment (in this subsection 

4 referred to as the ‘Center’). 

5 ‘‘(2) CRITERIA.—The Secretary shall use the 

6 following criteria in making the designation: 

7 ‘‘(A) The Center must be an entity with a 

8 focus on rural policy research and a minimum 

9 of 5 years experience in rural telecommuni10 cations research and assessment. 

11 ‘‘(B) The Center must be capable of as12 sessing broadband services in rural areas. 

13 ‘‘(C) The Center must have significant ex14 perience with other rural economic development 

15 centers and organizations in the assessment of 

16 rural policies and formulation of policy solu17 tions at the local, State, and Federal level. 

18 ‘‘(3) BOARD.—The management of the Center 

19 shall be vested in a board of directors that is capable 

20 of oversight of the duties set forth in paragraph (4). 

21 ‘‘(4) DUTIES.—The Center shall— 

22 ‘‘(A) assess the effectiveness of programs 

23 provided under subsection (d) in increasing 

24 broadband penetration and purchase in rural 

25 areas, especially in those rural communities 
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1 identified by the Secretary as having no service 

2 before award of a broadband loan or loan guar3 antee under subsection (d); 

4 ‘‘(B) develop assessments of broadband 

5 availability in rural areas, working with existing 

6 rural development centers selected by the Cen7 ter; 

8 ‘‘(C) identify policies and initiatives at the 

9 local, State and Federal level that have in10 creased broadband penetration and purchase in 

11 rural areas; 

12 ‘‘(D) conduct a national study of rural 

13 households and businesses focusing on the 

14 adoption of, barriers to, and utilization of 

15 broadband services; and 

16 ‘‘(E) provide reports to the public on the 

17 activities undertaken under this section. 

18 ‘‘(5) REPORTING REQUIREMENTS.—The Center 

19 shall report by December 1 of each year to the Sec20 retary its activities, the results of its research, and 

21 any such information the Secretary may request re22 garding the prior fiscal year. In reporting to the 

23 Secretary the Center shall include the following: 

24 ‘‘(A) Assessments of the programs pro25 vided under subsection (b). 
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1 ‘‘(B) Annual assessments on broadband 

2 availability in rural areas under consideration 

3 by the Center. 

4 ‘‘(C) Annual assessments on the effects of 

5 the policy initiatives identified in paragraph 

6 (2)(C). 

7 ‘‘(D) Results from the national study of 

8 rural households and businesses conducted 

9 under paragraph (4)(D). 

10 ‘‘(6) AUTHORIZATION OF APPROPRIATIONS.— 

11 There are authorized to be appropriated to the Sec12 retary to carry out this subsection not more than 

13 $1,000,000 for each of the fiscal years 2008 through 

14 2012.’’. 

15 (j) FUNDING.—Section 601(m) of such Act (7 U.S.C. 

16 950bb(l)) as so redesignated by subsections (g) through 

17 (i) of this section, is amended— 

18 (1) by striking paragraph (1); 

19 (2) by redesignating paragraphs (2), (3), and 

20 (4) as paragraphs (1), (2), and (3), respectively; 

21 (3) in paragraph (1)(B) (as so redesignated), 

22 by striking ‘‘2007’’ and inserting ‘‘2012’’; 

23 (4) in paragraph (2) (as so redesignated), by 

24 striking ‘‘2003 through 2007’’ and inserting ‘‘2008 

25 through 2012’’; and 
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1 (5) in paragraph (3) (as so redesignated), by 

2 adding at the end the following: 

3 ‘‘(D) ELIGIBLE TRIBAL COMMUNITIES.— 

4 Of the amounts made available under subpara5 graph (A) for a fiscal year, 10 percent shall be 

6 reserved for entities serving eligible tribal com7 munities. 

8 ‘‘(E) UNOBLIGATED AMOUNTS.—Any 

9 amounts in the reserve established for eligible 

10 tribal communities for a fiscal year under sub11 paragraph (D) that are not obligated by June 

12 30 of the fiscal year shall be available to the 

13 Secretary to make loans and loan guarantees 

14 under this section to eligible entities in any 

15 State, as determined by the Secretary.’’. 

16 (k) EXTENSION OF AUTHORITY TO ISSUE LOANS.— 

17 Section 601(n) of such Act (7 U.S.C. 950bb(m)), as so 

18 redesignated by subsections (f) through (h) of this section, 

19 is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

20 SEC. 6024. COMMUNITY CONNECT GRANT PROGRAM. 

21 Title VI of the Rural Electrification Act of 1936 (7 

22 U.S.C. 950bb) is amended by adding at the end the fol23 lowing: 
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1 ‘‘SEC. 602. COMMUNITY CONNECT GRANT PROGRAM. 

2 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab3 lish a grant program to be known as the ‘Community Con4 nect Grant Program’ to provide financial assistance to eli5 gible applicants to provide broadband transmission service 

6 that fosters economic growth and delivers enhanced edu7 cational, health care, and public safety services. 

8 ‘‘(b) ELIGIBILITY.—To be eligible for a grant under 

9 this section, the applicant must— 

10 ‘‘(1) be legally organized as an incorporated 

11 tribal organization, an Indian tribe, or tribal organi12 zation, as defined in subsections (b) and (c) of sec13 tion 4 of the Indian Self-Determination and Edu14 cation Assistance Act (25 U.S.C. 450b(b) and (c)), 

15 a State or local unit of government, or other legal 

16 entity, including a cooperative, private corporation, 

17 or limited liability company organized on a for-profit 

18 or not-for-profit basis; 

19 ‘‘(2) have the legal capacity and authority to 

20 own and operate broadband facilities as proposed in 

21 its application, to enter into contracts, and to other22 wise comply with applicable Federal statutes and 

23 regulations; or 

24 ‘‘(3) be in an eligible rural community (as de25 fined in section 601(b)(2) of the Rural Electrifica26 tion Act of 1936). 
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1 ‘‘(c) INELIGIBLE GRANT PURPOSES.—A grant made 

2 under this section may not be used— 

3 ‘‘(1) to finance the duplication of any 

4 broadband transmission service provided by another 

5 entity; or 

6 ‘‘(2) with respect to facilities, to provide local 

7 exchange telecommunications service to any person 

8 or entity receiving the service. 

9 ‘‘(d) PRIORITY.—In making grants under this sec10 tion, the Secretary shall give priority to grants that will 

11 enhance community access to telemedicine and distance 

12 learning resources. 

13 ‘‘(e) MATCHING CONTRIBUTIONS.— 

14 ‘‘(1) IN GENERAL.—To be eligible to receive a 

15 grant under subsection (a), a grant applicant shall 

16 provide a matching contribution of at least 15 per17 cent of the grant amount requested, in funds and in18 kind contributions in a proportion to be determined 

19 by the Secretary. 

20 ‘‘(2) LIMITATIONS.— 

21 ‘‘(A) Costs incurred by or on behalf of an 

22 applicant, for facilities, installed equipment, or 

23 other services rendered before submission of a 

24 completed application shall not be considered to 
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1 be for an eligible grant purpose or a matching 

2 contribution. 

3 ‘‘(B) Any financial assistance from Federal 

4 sources shall not be considered to be a match5 ing contribution for purposes of this section, 

6 unless there is a Federal statutory exception 

7 specifically authorizing the Federal financial as8 sistance to be so considered. 

9 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated to the Secretary to carry 

11 out this section not more than $25,000,000 for each of 

12 the fiscal years 2008 through 2012.’’. 

13 SEC. 6025. AGRICULTURE INNOVATION CENTER DEM14 ONSTRATION PROGRAM. 

15 Section 6402(i) of the Farm Security and Rural In16 vestment Act of 2002 (7 U.S.C. 1621 note; Public Law 

17 107–171) is amended to read as follows: 

18 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 

19 are authorized to be appropriated to the Secretary to carry 

20 out this section $6,000,000 for each of the fiscal years 

21 2008 through 2012.’’. 
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1 SEC. 6026. RURAL FIREFIGHTERS AND EMERGENCY MED2 ICAL SERVICE ASSISTANCE PROGRAM. 

3 Section 6405 of the Farm Security and Rural Invest4 ment Act of 2002 (7 U.S.C. 1621 note) is amended to 

5 read as follows: 

6 ‘‘SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY MED7 ICAL SERVICE ASSISTANCE PROGRAM. 

8 ‘‘(a) GRANTS.—The Secretary shall award grants to 

9 eligible entities to— 

10 ‘‘(1) enable the entities to provide for improved 

11 emergency medical services in rural areas; and 

12 ‘‘(2) pay the cost of training firefighters and 

13 emergency medical personnel in firefighting, emer14 gency medical practices, and responding to haz15 ardous materials and bioagents in rural areas. 

16 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant 

17 under this section, an entity shall— 

18 ‘‘(1) be— 

19 ‘‘(A) a State emergency medical services 

20 office; 

21 ‘‘(B) a State emergency medical services 

22 association; 

23 ‘‘(C) a State office of rural health; 

24 ‘‘(D) a local government entity; 
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1 ‘‘(E) an Indian tribe (as defined in section 

2 4 of the Indian Self-Determination and Edu3 cation Assistance Act (25 U.S.C. 450b)); 

4 ‘‘(F) a State or local ambulance provider; 

5 or 

6 ‘‘(G) any other entity determined appro7 priate by the Secretary; and 

8 ‘‘(2) prepare and submit to the Secretary an 

9 application at such time, in such manner, and con10 taining such information as the Secretary may re11 quire, that includes— 

12 ‘‘(A) a description of the activities to be 

13 carried out under the grant; and 

14 ‘‘(B) an assurance that the applicant will 

15 comply with the matching requirement of sub16 section (e). 

17 ‘‘(c) USE OF FUNDS.—An entity shall use amounts 

18 received under a grant made under subsection (a) only in 

19 rural areas to— 

20 ‘‘(1) hire or recruit emergency medical service 

21 personnel; 

22 ‘‘(2) recruit or retain volunteer emergency med23 ical service personnel; 

24 ‘‘(3) train emergency medical service personnel 

25 in emergency response, injury prevention, safety 
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1 awareness, and other topics relevant to the delivery 

2 of emergency medical services; 

3 ‘‘(4) fund training to meet State or Federal 

4 certification requirements; 

5 ‘‘(5) provide training for firefighters and emer6 gency medical personnel for improvements to the 

7 training facility, equipment, curricula, and per8 sonnel; 

9 ‘‘(6) develop new ways to educate emergency 

10 health care providers through the use of technology11 enhanced educational methods (such as distance 

12 learning); 

13 ‘‘(7) acquire emergency medical services vehi14 cles, including ambulances; 

15 ‘‘(8) acquire emergency medical services equip16 ment, including cardiac defibrillators; 

17 ‘‘(9) acquire personal protective equipment for 

18 emergency medical services personnel as required by 

19 the Occupational Safety and Health Administration; 

20 and 

21 ‘‘(10) educate the public concerning 

22 cardiopulmonary resuscitation (CPR), first aid, in23 jury prevention, safety awareness, illness prevention, 

24 and other related emergency preparedness topics. 
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1 ‘‘(d) PREFERENCE.—In awarding grants under this 

2 section, the Secretary shall give preference to— 

3 ‘‘(1) applications that reflect a collaborative ef4 fort by 2 or more of the entities described in sub5 paragraphs (A) through (G) of subsection (b)(1); 

6 and 

7 ‘‘(2) applications submitted by entities that in8 tend to use amounts provided under the grant to 

9 fund activities described in any of paragraphs (1) 

10 through (5) of subsection (c). 

11 ‘‘(e) MATCHING REQUIREMENT.—The Secretary may 

12 not make a grant under this section to an entity unless 

13 the entity agrees that the entity will make available (di14 rectly or through contributions from other public or pri15 vate entities) non-Federal contributions toward the activi16 ties to be carried out under the grant in an amount equal 

17 to 5 percent of the amount received under the grant. 

18 ‘‘(f) EMERGENCY MEDICAL SERVICES.—In this sec19 tion, the term ‘emergency medical services’— 

20 ‘‘(1) means resources used by a qualified public 

21 or private nonprofit entity, or by any other entity 

22 recognized as qualified by the State involved, to de23 liver medical care outside of a medical facility under 

24 emergency conditions that occur as a result of— 

25 ‘‘(A) the condition of the patient; or 
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1 ‘‘(B) a natural disaster or similar situa2 tion; and 

3 ‘‘(2) includes (compensated or volunteer) serv4 ices delivered by an emergency medical services pro5 vider or other provider recognized by the State in6 volved that is licensed or certified by the State as an 

7 emergency medical technician or the equivalent (as 

8 determined by the State), a registered nurse, a phy9 sician assistant, or a physician that provides services 

10 similar to services provided by such an emergency 

11 medical services provider. 

12 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— 

13 ‘‘(1) IN GENERAL.—There are authorized to be 

14 appropriated to the Secretary to carry out this sec15 tion not more than $30,000,000 for each of fiscal 

16 years 2008 through 2012. 

17 ‘‘(2) ADMINISTRATIVE COSTS.—Not more than 

18 10 percent of the amount appropriated under para19 graph (1) for a fiscal year may be used for adminis20 trative expenses.’’. 

21 SEC. 6027. VALUE-ADDED AGRICULTURAL MARKET DEVEL22 OPMENT PROGRAM. 

23 (a) DEFINITION OF MID-TIER VALUE CHAIN.—Sec24 tion 231(a) of the Agricultural Risk Protection Act of 
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1 2000 (7 U.S.C. 1621 note; Public Law 106–224) is 

2 amended by adding at the end the following: 

3 ‘‘(3) MID-TIER VALUE CHAIN.—The term ‘mid4 tier value chain’ means local and regional supply 

5 networks that link independent producers with busi6 nesses and cooperatives that market value-added ag7 ricultural products in a manner that— 

8 ‘‘(A) targets and strengthens the profit9 ability and competitiveness of small and me10 dium-sized family farms, as defined in regula11 tions pursuant to Section 302 of the Consoli12 dated Farm and Rural Development Act; and 

13 ‘‘(B) obtains agreement from the eligible 

14 agricultural producer group, farmer or rancher 

15 cooperative, or majority-controlled producer16 based business venture engaged in the value 

17 chain in the method for price determination.’’. 

18 (b) FUNDING; RESERVATION OF FUNDS; GRANT

19 AWARD CRITERIA.—Section 231(b) of such Act (7 U.S.C. 

20 1621 note; Public Law 106–224) is amended— 

21 (1) by striking paragraph (4) and inserting the 

22 following: 

23 ‘‘(4) FUNDING.—Not later than 30 days after 

24 the date of the enactment of this paragraph, on Oc25 tober 1, 2008, and on each October 1 thereafter 
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1 through October 1, 2012, of the funds of the Com2 modity Credit Corporation, the Secretary shall make 

3 available to carry out this subsection $30,000,000, 

4 to remain available until expended. 

5 ‘‘(5) RESERVATION OF FUNDS FOR PROJECTS

6 TO BENEFIT BEGINNING FARMERS AND RANCHERS

7 OR SOCIALLY DISADVANTAGED FARMERS AND

8 RANCHERS AND MID-TIER VALUE CHAINS.— 

9 ‘‘(A) IN GENERAL.—The Secretary shall 

10 reserve 10 percent of the amounts made avail11 able under paragraph (4) to fund projects that 

12 benefit beginning farmers and ranchers (as de13 fined in section 343(a)(11) of the Consolidated 

14 Farm and Rural Development Act) or socially 

15 disadvantaged farmers and ranchers (as defined 

16 in section 355(e) of such Act). 

17 ‘‘(B) MID-TIER VALUE CHAINS.—The Sec18 retary shall reserve 10 percent of the amounts 

19 made available under paragraph (4) to fund ap20 plications of eligible entities described in para21 graph (1) that propose to develop mid-tier value 

22 chains. 

23 ‘‘(C) UNOBLIGATED AMOUNTS.—Any 

24 amounts in the reserves established under sub25 paragraphs (A) and (B) that are not obligated 
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1 by June 30 of the fiscal year shall be available 

2 to the Secretary to make grants under this sec3 tion to eligible entities in any State, as deter4 mined by the Secretary.’’; and 

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

6 ‘‘(6) CRITERIA TO BE APPLIED IN AWARDING

7 GRANTS.—In awarding grants under this section, 

8 the Secretary shall consider an application more fa9 vorably when compared to other applications to the 

10 extent that the project contributes to increasing op11 portunities for operators of small and medium-size 

12 farms and ranches structured as family farms (as 

13 defined in regulations prescribed under section 302 

14 of the Consolidated Farm and Rural Development 

15 Act).’’. 

16 SEC. 6028. ASSISTANCE FOR RURAL PUBLIC TELEVISION 

17 STATIONS. 

18 Section 2333 of the Food, Agriculture, Conservation 

19 and Trade Act of 1990 (7 U.S.C. Sec. 950aaa–2) is 

20 amended by adding at the end the following: 

21 ‘‘(j) DIGITAL SERVICE TRANSITION ASSISTANCE FOR

22 PUBLIC TELEVISION STATIONS.—The Secretary may pro23 vide grants under this section to noncommercial education 

24 television broadcast stations that serve rural areas for the 
470 

•HR 2419 EH1S 

1 purposes of developing digital facilities, equipment, and in2 frastructure to enhance digital services to rural areas.’’. 

3 SEC. 6029. TELEMEDICINE AND DISTANCE LEARNING SERV4 ICES IN RURAL AREAS. 

5 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

6 2335A of the Food, Agriculture, Conservation and Trade 

7 Act of 1990 (7 U.S.C. 950aaa–5) is amended by striking 

8 ‘‘2007’’ and inserting ‘‘2012’’. 

9 (b) CONFORMING AMENDMENT.—Section 1(b) of 

10 Public Law 102–551 (7 U.S.C. 950aaa note) is amended 

11 by striking ‘‘2007’’ and inserting ‘‘2012’’. 

12 SEC. 6030. GUARANTEES FOR BONDS AND NOTES ISSUED 

13 FOR ELECTRIFICATION OR TELEPHONE PUR14 POSES. 

15 Section 313A(f) of the Rural Electrification Act of 

16 1936 (7 U.S.C. 940c–1(f)) is amended by striking ‘‘2007’’ 

17 and inserting ‘‘2012’’. 

18 SEC. 6031. COMPREHENSIVE RURAL BROADBAND STRAT19 EGY. 

20 Not later than 180 days after the date of the enact21 ment of this Act, the Secretary of Agriculture shall submit 

22 to the President, the Committee on Agriculture of the 

23 House of Representatives, and the Committee on Agri24 culture, Nutrition, and Forestry of the Senate a report 
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1 describing a comprehensive rural broadband strategy that 

2 includes— 

3 (1) recommendations— 

4 (A) to promote interagency coordination of 

5 Federal agencies in regards to policies, proce6 dures, and targeted resources, and to improve 

7 and streamline the polices, programs, and serv8 ices; 

9 (B) to coordinate among Federal agencies 

10 regarding existing rural broadband or rural ini11 tiatives that could be of value to rural 

12 broadband development; 

13 (C) to address both short- and long-term 

14 solutions and needs assessments for a rapid 

15 build-out of rural broadband solutions and ap16 plications for Federal, State, regional, and local 

17 government policy makers; 

18 (D) to identify how specific Federal agency 

19 programs and resources can best respond to 

20 rural broadband requirements and overcome ob21 stacles that currently impede rural broadband 

22 deployment; and 

23 (E) to promote successful model deploy24 ments and appropriate technologies being used 

25 in rural areas so that State, regional, and local 
472 

•HR 2419 EH1S 

1 governments can benefit from the cataloging 

2 and successes of other State, regional, and local 

3 governments; and 

4 (2) a description of goals and timeframes to 

5 achieve the strategic plans and visions identified in 

6 the report. 

7 SEC. 6032. STUDY OF RAILROAD ISSUES. 

8 (a) IN GENERAL.—The Secretary of Agriculture, in 

9 coordination with the Secretary of Transportation, shall 

10 conduct a study of railroad issues regarding the movement 

11 of agricultural products, domestically produced renewable 

12 fuels and domestically produced resources for the produc13 tion of electricity for rural America, and economic develop14 ment in rural America. The study shall include an exam15 ination of the following: 

16 (1) The importance of freight railroads to— 

17 (A) the delivery of equipment, seed, fer18 tilizer, and other such products important to 

19 the development of agricultural commodities 

20 and products; 

21 (B) the movement of agricultural commod22 ities and products to market; 

23 (C) the delivery of ethanol and other re24 newable fuels; 
473 

•HR 2419 EH1S 

1 (D) the delivery of domestically produced 

2 resources for use in the generation of electricity 

3 for rural America; 

4 (E) the location of grain elevators, ethanol 

5 plants, and other facilities; 

6 (F) the development of manufacturing fa7 cilities in rural America; and 

8 (G) the vitality and economic development 

9 of rural communities. 

10 (2) The sufficiency in rural America of railroad 

11 capacity, the sufficiency of competition in the rail12 road system, the reliability of rail service, and the 

13 reasonableness of railroad prices. 

14 (3) The accessibility to rail customers in rural 

15 America of Federal processes for the resolution of 

16 rail customer grievances with the railroads. 

17 (b) REPORT TO THE CONGRESS.—Within 9 months 

18 after the date of the enactment of this Act, the Secretary 

19 of Agriculture shall submit to the Congress a report that 

20 contains the results of the study required by subsection 

21 (a), and the recommendations of the Secretary for new 

22 Federal policies to address any problems identified by the 

23 study. 

24 TITLE VII—RESEARCH 

Subtitle A—General Provisions 

Sec. 7101. Definitions. 
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Sec. 7102. Budget submission and funding. 

Sec. 7103. Additional purposes of agricultural research and extension. 

Sec. 7104. National agricultural research program office. 

Sec. 7105. Establishment of competitive grant programs under the National Institute for Food and Agriculture. 

Sec. 7106. Merging of IFAFS and NRI. 

Sec. 7107. Capacity building grants for ASCARR institutions. 

Sec. 7108. Establishment of research laboratories for animal diseases. 

Sec. 7109. Grazinglands research laboratory. 

Sec. 7110. Researcher training. 

Sec. 7111. Fort Reno Science Park research facility. 

Sec. 7112. Assessing the nutritional composition of beef products. 

Sec. 7113. Sense of Congress regarding funding for human nutrition research. 

Subtitle B—National Agricultural Research, Extension, and Teaching Policy 

Act of 1977 

Sec. 7201. Advisory board. 

Sec. 7202. Advisory board termination. 

Sec. 7203. Renewable energy committee. 

Sec. 7204. Specialty crop committee report. 

Sec. 7205. Inclusion of UDC in grants and fellowships for food and agricultural 

sciences education. 

Sec. 7206. Grants and fellowships for food and agricultural sciences education. 

Sec. 7207. Grants for research on production and marketing of alcohols and industrial hydrocarbons from agricultural commodities and forest 

products. 

Sec. 7208. Policy research centers. 

Sec. 7209. Human nutrition intervention and health promotion research program. 

Sec. 7210. Pilot research program to combine medical and agricultural research. 

Sec. 7211. Nutrition education program. 

Sec. 7212. Continuing animal health and disease research programs. 

Sec. 7213. Cooperation among eligible institutions. 

Sec. 7214. Appropriations for research on national or regional problems. 

Sec. 7215. Authorization level of extension at 1890 land-grant colleges. 

Sec. 7216. Authorization level for agricultural research at 1890 land-grant colleges. 

Sec. 7217. Grants to upgrade agriculture and food sciences facilities at the District of Columbia Land Grant University. 

Sec. 7218. Grants to upgrade agricultural and food sciences facilities at 1890 

land-grant colleges, including Tuskegee University. 

Sec. 7219. National research and training virtual centers. 

Sec. 7220. Matching funds requirement for research and extension activities of 

1890 institutions. 

Sec. 7221. Hispanic-serving institutions. 

Sec. 7222. Hispanic-serving agricultural colleges and universities. 

Sec. 7223. International agricultural research, extension, and education. 

Sec. 7224. Competitive grants for international agricultural science and education programs. 

Sec. 7225. Limitation on indirect costs for agricultural research, education, and 

extension programs. 

Sec. 7226. Research equipment grants. 

Sec. 7227. University research. 
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Sec. 7228. Extension service. 

Sec. 7229. Supplemental and alternative crops. 

Sec. 7230. Aquaculture Assistance Programs. 

Sec. 7231. Rangeland research. 

Sec. 7232. Special authorization for biosecurity planning and response. 

Sec. 7233. Resident instruction and distance education grants program for insular area institutions of higher education. 

Sec. 7234. Hispanic Serving Institutions. 

Sec. 7235. Specialty crops policy research institute. 

Sec. 7236. Emphasis of Human Nutrition Initiative. 

Sec. 7237. Grants to upgrade agriculture and food sciences facilities at insular 

area land-grant institutions. 

Subtitle C—Food, Agriculture, Conservation, and Trade Act of 1990 

Sec. 7301. National genetics resources program. 

Sec. 7302. National agricultural weather information system. 

Sec. 7303. Partnerships. 

Sec. 7304. Aflatoxin research and extension. 

Sec. 7305. High-priority research and extension areas. 

Sec. 7306. High-priority research and extension initiatives. 

Sec. 7307. Nutrient management research and extension initiative. 

Sec. 7308. Agricultural telecommunications program. 

Sec. 7309. Assistive technology program for farmers with disabilities. 

Sec. 7310. Organic research. 

Sec. 7311. National rural information center clearinghouse. 

Sec. 7312. New era rural technology program. 

Subtitle D—Agricultural Research, Extension, and Education Reform Act of 

1998 

Sec. 7401. Partnerships for high-value agricultural product quality research. 

Sec. 7402. Precision agriculture. 

Sec. 7403. Biobased products. 

Sec. 7404. Thomas Jefferson initiative for crop diversification. 

Sec. 7405. Integrated research, education, and extension competitive grants 

program. 

Sec. 7406. Fusarium graminearum grants. 

Sec. 7407. Bovine Johne’s disease control program. 

Sec. 7408. Grants for youth organizations. 

Sec. 7409. Agricultural biotechnology research and development for developing 

countries. 

Sec. 7410. Agricultural bioenergy and biobased products research initiative. 

Sec. 7411. Specialty crop research initiative. 

Sec. 7412. Office of pest management policy. 

Subtitle E—Other Laws 

Sec. 7501. Critical agricultural materials act. 

Sec. 7502. Equity in Educational Land-Grant Status Act of 1994. 

Sec. 7503. Agricultural experiment station Research Facilities Act. 

Sec. 7504. National Agricultural Research, Extension, and Teaching Policy Act 

Amendments of 1985. 

Sec. 7505. Competitive, Special, and Facilities Research Grant Act (national 

research initiative). 

Sec. 7506. Agricultural Risk Protection Act of 2000 (carbon cycle research). 
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Sec. 7507. Renewable Resources Extension Act of 1978. 

Sec. 7508. National Aquaculture Act of 1980. 

Sec. 7509. Construction of a Chinese Garden at the National Arboretum. 

Sec. 7510. Public education regarding use of biotechnology in producing food 

for human consumption. 

Sec. 7511. Fresh cut produce safety grants. 

Sec. 7512. UDC/EFNEP Eligibility. 

Sec. 7513. Hatch Act of 1987. 

Subtitle F—Additional Provisions 

Sec. 7601. Merit review of extension and educational grants. 

Sec. 7602. Review of plan of work requirements. 

Sec. 7603. Multistate and integration funding. 

Sec. 7604. Expanded food and nutrition education program. 

Sec. 7605. Grants to 1890 schools to expand extension capacity. 

Sec. 7606. Borlaug international agricultural science and technology fellowship 

program. 

Sec. 7607. Cost Recovery. 

Sec. 7608. Organic Food and Agricultural Systems Funding. 

1 Subtitle A—General Provisions 

2 SEC. 7101. DEFINITIONS. 

3 For purposes of this title: 

4 (1) CAPACITY PROGRAM.—The term ‘‘capacity 

5 program’’ means the capacity program in subpara6 graph (M) and each of the following agricultural re7 search, extension, education, and related programs 

8 for which the Secretary has administrative or other 

9 authority as of the day before the date of enactment 

10 of this Act: 

11 (A) Each program providing funding to 

12 any of the 1994 institutions under sections 533, 

13 534(a), and 535 of the Equity in Educational 

14 Land-Grant Status Act of 1994 (Public Law 

15 103–382; 7 U.S.C. 301 note) (commonly known 

16 as financial assistance, technical assistance, and 
477 

•HR 2419 EH1S 

1 endowments to tribal colleges and the Navajo 

2 Community College). 

3 (B) The program established under section 

4 536 of the Equity in Educational Land-Grant 

5 Status Act of 1994 (Public Law 103–382; 7 

6 U.S.C. 301 note) providing research grants for 

7 1994 institutions. 

8 (C) Each program established under sub9 sections (b), (c), and (d) of section 3 of the 

10 Smith-Lever Act (7 U.S.C. 343). 

11 (D) Each program established under the 

12 Hatch Act of 1887 (7 U.S.C. 361a et seq.). 

13 (E) Each program established under sec14 tion 1417(b)(4) of the National Agricultural 

15 Research, Extension, and Teaching Policy Act 

16 of 1977 (7 U.S.C. 3152(b)(4)), including grant 

17 programs under that section (commonly known 

18 as the 1890 Institution Teaching and Research 

19 Capacity Building Grants Program). 

20 (F) The animal health and disease re21 search program established under subtitle E of 

22 the National Agricultural Research, Extension, 

23 and Teaching Policy Act of 1977 (7 U.S.C. 

24 3191 et seq.). 
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1 (G) The program established under section 

2 1445 of the National Agricultural Research, 

3 Extension, and Teaching Policy Act of 1977 (7 

4 U.S.C. 3222) (commonly known as the Evans5 Allen Program). 

6 (H) The program providing grants to up7 grade agricultural and food sciences facilities at 

8 1890 Institutions established under section 

9 1447 of the National Agricultural Research, 

10 Extension, and Teaching Policy Act of 1977 (7 

11 U.S.C. 3222b). 

12 (I) The program providing distance edu13 cation grants for insular areas established 

14 under section 1490 of the National Agricultural 

15 Research, Extension, and Teaching Policy Act 

16 of 1977 (7 U.S.C. 3362). 

17 (J) The program providing resident in18 struction grants for insular areas established 

19 under section 1491 of the National Agricultural 

20 Research, Extension, and Teaching Policy Act 

21 of 1977 (7 U.S.C. 3363). 

22 (K) Each research and development and 

23 related program established under Public Law 

24 87–788 (commonly known as the McIntire- 
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1 Stennis Cooperative Forestry Act; 16 U.S.C. 

2 582a et seq.). 

3 (L) Each program established under the 

4 Renewable Resources Extension Act of 1978 

5 (16 U.S.C. 1671 et seq.). 

6 (M) The capacity building grant program 

7 for ASCARR Institutions established under this 

8 Act. 

9 (N) Such other programs or parts of pro10 grams as determined appropriate by the Sec11 retary. 

12 (O) The program providing competitive ex13 tension grants to eligible 1994 institutions 

14 under section 3(b)(3) of the Smith-Lever Act (7 

15 U.S.C. 343(b)(3)). 

16 (2) COMPETITIVE PROGRAMS.—The term ‘‘com17 petitive programs’’ means the competitive program 

18 in subparagraph (N) and each of the following agri19 cultural research, extension, education, and related 

20 programs for which the Secretary has administrative 

21 or other authority as of the day before the date of 

22 enactment of this Act: 

23 (A) Competitive grant programs authorized 

24 or otherwise administered by the Department of 

25 Agriculture under the terms of section 2(b) of 
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1 the Competitive, Special and Facilities Research 

2 Grant (7 U.S.C. 450i). 

3 (B) Institution Challenge Grants, adminis4 tered under 1417(j) of the National Agricul5 tural Research, Extension, and Teaching Policy 

6 Act of 1977, as amended (7 U.S.C. 3152(j)). 

7 (C) Grants and related authorities author8 ized or otherwise administered by the Secretary 

9 of Agriculture under section 1417(b)(5) of the 

10 National Agricultural Research, Extension, and 

11 Teaching Policy Act of 1977, as amended (7 

12 U.S.C. 3152(b)(5)) (commonly known as the 

13 Higher Education Multicultural Scholars Pro14 gram). 

15 (D) Programs authorized or otherwise ad16 ministered under section 1455 of the National 

17 Agricultural Research, Extension, and Teaching 

18 Policy Act of 1977 (7 U.S.C. 3241(e)) (com19 monly known as educational grant programs for 

20 Hispanic-serving institutions). 

21 (E) Integrated research, education, or ex22 tension programs authorized under section 406 

23 of the Agricultural Research, Extension, and 

24 Education Reform Act of 1998 (7 U.S.C. 

25 7626). 
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1 (F) Sustainable Agriculture Research and 

2 Education (7 U.S.C. 5811). 

3 (G) Organic Research and Extension Ini4 tiative (7 U.S.C. 5925b). 

5 (H) Higher Education Challenge Grants (7 

6 U.S.C. 3152(b)(1)). 

7 (I) Food and Agriculture Sciences National 

8 Needs Graduate and Postgraduate Fellowship 

9 Grants (7 U.S.C. 3152(b)(6)). 

10 (J) International Science and Education 

11 Competitive Grants (7 U.S.C. 3292b). 

12 (K) Community Food Projects Competitive 

13 Grants (7 U.S.C. 2034). 

14 (L) Risk Management Education (7 U.S.C. 

15 1524). 

16 (M) High Priority Research and Extension 

17 Areas (7 U.S.C. 5925). 

18 (N) Such other programs or parts of pro19 grams as determined appropriate by the Sec20 retary. 

21 (3) CAPACITY PROGRAM CRITICAL BASE FUND22 ING.—The term ‘‘capacity program critical base 

23 funding’’ means the aggregate amount of Federal 

24 funds made available for all or individual capacity 

25 programs for fiscal year 2007, as appropriate. 
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1 (4) COMPETITIVE PROGRAM CRITICAL BASE

2 FUNDING.—The term ‘‘competitive program critical 

3 base funding’’ means the aggregate amount of Fed4 eral funds made available for all or individual com5 petitive programs for fiscal year 2007, as appro6 priate. 

7 (5) ASCARR INSTITUTION.— 

8 (A) IN GENERAL.—The term ‘‘ASCARR 

9 Institution’’ means a public college or university 

10 offering a baccalaureate or higher degree in the 

11 study of agriculture. 

12 (B) EXCLUSIONS.—The term ‘‘ASCARR 

13 Institution’’ does not include Hispanic-serving 

14 agricultural colleges and universities or any in15 stitution designated under— 

16 (i) the Act of July 2, 1862 (commonly 

17 known as the ‘‘First Morrill Act’’; 7 U.S.C. 

18 301 et seq.); 

19 (ii) the Act of August 30, 1890 (com20 monly known as the ‘‘Second Morrill Act’’; 

21 7 U.S.C. 321 et seq.); or 

22 (iii) the Equity in Educational Land23 Grant Status Act of 1994 (Public Law 

24 103–382; 7 U.S.C. 301 note). 
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1 (6) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Agriculture. 

3 (7) DIRECTORS.—The term ‘‘Directors’’ refers 

4 to those directors appointed under section 7104. 

5 (8) UNDER SECRETARY.—The term ‘‘Under 

6 Secretary’’ means the Under Secretary of Agri7 culture for Research, Education, and Economics. 

8 (9) HISPANIC-SERVING AGRICULTURAL COL9 LEGE AND UNIVERSITY.—The term ‘‘Hispanic-serv10 ing agricultural college and university’’ means a col11 lege or university that— 

12 (A) qualifies as an ‘‘Hispanic-serving insti13 tution’’; and 

14 (B) offers associate, bachelor’s, or other 

15 accredited degree programs in agricultural re16 lated fields, as determined by the Secretary. 

17 SEC. 7102. BUDGET SUBMISSION AND FUNDING. 

18 (a) BUDGET REQUEST.—The President shall submit 

19 to Congress, together with the annual budget submission 

20 of the President, a single budget line item reflecting the 

21 total amount requested by the President for funding for 

22 capacity programs, and a single budget line item reflecting 

23 the total amount requested by the President for funding 

24 for competitive programs for that fiscal year and for the 

25 previous 5 fiscal years. 
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1 (b) CAPACITY PROGRAM REQUEST.— 

2 (1) CRITICAL BASE FUNDING.—Up to the 

3 amount of the capacity program critical base fund4 ing level, any funds requested for capacity programs 

5 in the budget submission single line item shall be 

6 apportioned among the capacity programs based on 

7 priorities established by the Under Secretary in con8 junction with the Directors. 

9 (2) ADDITIONAL FUNDING.—Of the funds re10 quested for capacity programs in excess of the ca11 pacity program critical base funding level, budgetary 

12 emphasis should be placed on enhancing funding for 

13 the 1890, 1994, ASCARR Institutions, Hispanic14 serving agricultural colleges, and small 1862 institu15 tions. 

16 (c) COMPETITIVE PROGRAM REQUEST.— 

17 (1) CRITICAL BASE FUNDING.—Up to the 

18 amount of the competitive program critical base 

19 funding level, any funds requested for competitive 

20 programs in the budget submission single line item 

21 shall be apportioned among the competitive pro22 grams based on priorities established by the Under 

23 Secretary in conjunction with the Directors. 

24 (2) ADDITIONAL FUNDING.—Of the funds re25 quested for competitive programs in excess of the 
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1 competitive program critical base funding level, 

2 budgetary emphasis shall be placed on enhancing 

3 funding for emerging problems and their solutions. 

4 (d) FUNDING.— 

5 (1) CRITICAL BASE FUNDING.—Up to the total 

6 aggregate amount of the capacity program critical 

7 base funding level and the competitive program crit8 ical base funding level, funds appropriated or other9 wise made available shall be apportioned among each 

10 of the capacity programs and the competitive pro11 grams based on priorities established by the Under 

12 Secretary in conjunction with the Directors. 

13 (2) ADDITIONAL FUNDING.— 

14 (A) CAPACITY FUNDING.—Of the funds 

15 appropriated or otherwise made available for 

16 capacity programs in excess of the capacity pro17 gram critical base funding level, funding em18 phasis should be placed on enhancing funding 

19 for the 1890, 1994, ASCARR Institutions, His20 panic-serving agricultural colleges, and small 

21 1862 institutions. 

22 (B) COMPETITIVE FUNDING.—Of the 

23 funds appropriated or otherwise made available 

24 for competitive programs in excess of the com25 petitive program critical base funding level, 
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1 budgetary emphasis shall be placed on enhanc2 ing funding for emerging problems and solu3 tions. 

4 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated such sums as necessary 

6 to carry out this section. 

7 (f) COMPETITIVE PROGRAMS.—For the purposes of 

8 this section, the term ‘‘competitive programs’’ includes 

9 only those programs for which annual appropriations are 

10 requested in the President’s budget. 

11 SEC. 7103. ADDITIONAL PURPOSES OF AGRICULTURAL RE12 SEARCH AND EXTENSION. 

13 Section 1403 of the National Agricultural Research, 

14 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

15 3102) is amended— 

16 (1) in paragraph (6), by striking ‘‘and’’ at the 

17 end; 

18 (2) in paragraph (7), by striking the period and 

19 inserting a semicolon; and 

20 (3) by adding after paragraph (7) the following: 

21 ‘‘(8) to integrate and organize the administra22 tion of the agricultural research, extension, edu23 cation, and related programs administered by the 

24 Secretary of Agriculture to respond to 21st century 

25 challenges and continue to meet the needs of society 
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1 from a local, tribal, State, national, and inter2 national perspective; 

3 ‘‘(9) to minimize duplication, and maximize co4 ordination and integration, among all of the pro5 grams at all levels through a solution-based ap6 proach; and 

7 ‘‘(10) to position the agricultural research, ex8 tension, education, and related programs system to 

9 increase the contribution of the system to society 

10 through the expansion of the portfolio of the sys11 tem.’’. 

12 SEC. 7104. NATIONAL AGRICULTURAL RESEARCH PRO13 GRAM OFFICE. 

14 (a) ESTABLISHMENT.—The Under Secretary shall 

15 organize within the office of the Under Secretary 6 re16 search Program Offices to be known collectively as the Na17 tional Agricultural Research Program Office, which shall 

18 coordinate the programs and activities of the research 

19 agencies within the mission area in an integrated, multi20 disciplinary, interdisciplinary, interagency, and inter21 institutional manner, to the maximum extent practicable. 

22 The Program Offices within the National Agricultural Re23 search Program Office are as follows: 

24 (1) Renewable energy, natural resources, and 

25 environment. 
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1 (2) Food safety, nutrition, and health. 

2 (3) Plant health and production. 

3 (4) Animal health and production and animal 

4 products. 

5 (5) Agriculture systems and technology. 

6 (6) Agriculture economics and rural commu7 nities. 

8 (b) QUALIFICATIONS OF DIRECTORS.— 

9 (1) APPOINTMENT AND CLASSIFICATION.—The 

10 Under Secretary shall appoint a Director for each 

11 Program Office as a senior level position in the com12 petitive service. 

13 (2) QUALIFICATIONS.—To be eligible for ap14 pointment as a Director, an individual shall have— 

15 (A) conducted outstanding research, edu16 cation, or extension in the field of agriculture or 

17 forestry; 

18 (B) earned a doctoral level degree at an in19 stitution of higher education (as defined in sec20 tion 101 of Public Law 89–329 (20 U.S.C. 

21 1001)); and 

22 (C) met qualification standards prescribed 

23 by the Director of the Office of Personnel Man24 agement for appointment to a senior level posi25 tion of the competitive service. 
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1 (c) DUTIES OF DIRECTORS.—Except as otherwise 

2 provided in this Act, each Director as appointed by the 

3 Secretary shall— 

4 (1) formulate programs in consultation with the 

5 National Agricultural Research, Extension, Edu6 cation, and Economics Advisory Board (7 U.S.C. 

7 3123) (hereinafter referred to as the ‘‘Board’’); 

8 (2) assess strategic workforce needs of research, 

9 education, extension, and other fields; 

10 (3) cooperate with the Board to plan programs 

11 that assist in meeting the future personnel needs of 

12 disciplines and programs; 

13 (4) develop strategic planning for department14 wide research, education, extension, and related ac15 tivities; 

16 (5) establish department-wide priorities for re17 search, education, extension, and related programs; 

18 (6) communicate with research, education, and 

19 extension beneficiaries to identify their needs; and 

20 (7) perform such other duties deemed necessary 

21 by the Secretary. 

22 (d) ADMINISTRATION.—The Under Secretary, in con23 junction with the Directors and in consultation with the 

24 Board, shall direct and coordinate research, education, 

25 and extension programs within the relevant agencies of the 
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1 Department of Agriculture to focus those programs, and 

2 the participants, grantees, and other beneficiaries of those 

3 programs, on— 

4 (1) understanding important problem areas and 

5 opportunities relating to a program; 

6 (2) discovering and implementing solutions to 

7 address those problem areas; 

8 (3) exploring other opportunities provided 

9 under the programs; and 

10 (4) national, regional and local priorities. 

11 (e) PROGRAM INTEGRATION AND COORDINATION.— 

12 (1) IN GENERAL.—In accordance with applica13 ble law (including regulations), the Under Secretary, 

14 in coordination with the Director of each Program 

15 Office and taking into consideration the advice of 

16 the Board, shall ensure, to the maximum extent 

17 practicable, that the research, education, and exten18 sion programs are administered, funded, and carried 

19 out— 

20 (A) in an integrated, multidisciplinary, 

21 interdisciplinary, interagency, and interinstitu22 tional manner that ensures— 

23 (i) the most efficient collaborative use 

24 of resources; and 
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1 (ii) the focus of all resources and ac2 tivities on strategic, priority, problem, op3 portunity, and solution areas identified by 

4 the Under Secretary and the Directors, 

5 taking into consideration the advice of the 

6 Board; and 

7 (B) among applicable participants, grant8 ees, and beneficiaries, in a coordinated manner 

9 that encourages and ensures— 

10 (i) the most efficient collaborative ap11 plication of resources; and 

12 (ii) the focus of all resources and ac13 tivities on strategic, priority, problem, op14 portunity, and solution areas on a local, 

15 State, tribal, regional, national, and inter16 national basis, as the Under Secretary and 

17 each Director, taking into consideration 

18 the advice of the Board, determine to be 

19 appropriate. 

20 (2) SCOPE.—Each Director, in consultation 

21 with the Under Secretary and the Board, shall en22 sure, through the integration and coordination under 

23 paragraph (1), that opportunities are maximized 

24 with respect to— 
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1 (A) the use of appropriate authorities, 

2 agencies, institutions, disciplines, and activities; 

3 and 

4 (B) the inclusion of appropriate partici5 pants and other beneficiaries in those activities, 

6 including intramural, extramural, Government, 

7 university, extension, and international, as de8 termined by the Under Secretary. 

9 (f) FUNDING.—The Under Secretary shall fund each 

10 Program Office through the appropriations available to 

11 the various agencies within the mission area. The aggre12 gate staff for all Program Offices shall not exceed 30 full13 time equivalent positions and shall be filled by current full14 time equivalent positions. 

15 (g) ORGANIZATION.—The Under Secretary shall inte16 grate leadership functions of the national program staff 

17 of the research agencies into the National Agricultural Re18 search Program Office in such form as required to ensure 

19 that the Directors of the Program Offices are the primary 

20 program leaders for the mission areas of the integrated 

21 agencies and that administrative duplication does not 

22 occur. 

23 (h) PRIORITIZING FEDERAL RESEARCH ACTIVITIES

24 FOR SPECIALTY CROPS.—The Under Secretary, in coordi-
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1 nation with the Directors of relevant Program Offices, 

2 shall— 

3 (1) coordinate with and assist producers and 

4 organizations comprised of program beneficiaries 

5 working together to develop and implement applied 

6 research and extension related to the United States 

7 specialty crop industry; 

8 (2) facilitate in the delivery of information to 

9 beneficiaries in a user-friendly form, in addition to 

10 a standard research publication, and reward pro11 viders for their abilities to deliver information to 

12 both the scientific community and the end-user; and 

13 (3) ensure coordination among research initia14 tives funded and sponsored by the Department of 

15 Agriculture. 

16 SEC. 7105. ESTABLISHMENT OF COMPETITIVE GRANT PRO17 GRAMS UNDER THE NATIONAL INSTITUTE 

18 FOR FOOD AND AGRICULTURE. 

19 Any office established to administer competitive pro20 grams under section 7101(b)(2), including the Agricul21 tural Bioenergy and Biobased Products Research Initia22 tive, the Specialty Crop Research Initiative, and Fresh 

23 Cut Produce Safety Grants created by this Act, shall be 

24 referred to as the National Institute of Food and Agri25 culture. 
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1 SEC. 7106. MERGING OF IFAFS AND NRI. 

2 (a) AMENDMENT.—Subsection (b) of the Competi3 tive, Special, and Facilities Research Grant Act (7 U.S.C. 

4 450i(b)) is amended to read as follows: 

5 ‘‘(b) COMPETITIVE GRANT PROGRAMS.— 

6 ‘‘(1) COMPETITIVE BASIS.—The Secretary of 

7 Agriculture is authorized to make competitive grants 

8 for the purposes and priorities established under this 

9 subsection. 

10 ‘‘(2) TERM.—The term of a competitive grant 

11 made under this subsection may not exceed 10 

12 years. 

13 ‘‘(3) GENERAL ADMINISTRATION.—In making 

14 grants under this subsection, the Secretary shall— 

15 ‘‘(A) seek and accept proposals for grants; 

16 ‘‘(B) determine the relevance and merit of 

17 proposals through a system of peer and merit 

18 review in accordance with section 103 of the 

19 Agricultural Research, Extension, and Edu20 cation Reform Act of 1998 (7 U.S.C. 7613); 

21 ‘‘(C) award grants on the basis of merit, 

22 quality, and relevance to advancing the pur23 poses and priorities established under para24 graphs (7) and (11) of this subsection; 

25 ‘‘(D) solicit and consider input from per26 sons who conduct or use agricultural research, 
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1 extension, or education in accordance with sec2 tion 102(b) of the Agricultural Research, Ex3 tension, and Education Reform Act of 1998 (7 

4 U.S.C. 7612(b)); and 

5 ‘‘(E) in seeking proposals for grants under 

6 this subsection and in performing peer review 

7 evaluations of such proposals, seek the widest 

8 participation of qualified scientists in the Fed9 eral Government, colleges and universities, 

10 State agricultural experiment stations, and the 

11 private sector. 

12 ‘‘(4) ELIGIBLE ENTITIES.—The Secretary may 

13 make a grant under this subsection to State agricul14 tural experiment stations, all colleges and univer15 sities, university research foundations, other re16 search institutions and organizations, Federal agen17 cies, national laboratories, private organizations or 

18 corporations, and individuals, for research to further 

19 the programs of the Department of Agriculture. 

20 ‘‘(5) ADMINISTRATIVE COSTS.—Not more than 

21 4 percent of funds made available pursuant to this 

22 subsection may be retained by the Secretary to pay 

23 administrative costs incurred by the Secretary in 

24 carrying out this subsection. 
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1 ‘‘(6) CONSTRUCTION PROHIBITED.—Funds 

2 made available for grants under this subsection shall 

3 not be used for the construction of a new building 

4 or facility or the acquisition, expansion, remodeling, 

5 or alteration of an existing building or facility (in6 cluding site grading and improvement and architect 

7 fees). 

8 ‘‘(7) PURPOSES.—The purposes of the pro9 grams established under paragraph (8) shall reflect 

10 the purposes and additional purposes of agricultural 

11 research, extension, and education reflected in sec12 tions 1402 and 1403 of the National Agricultural 

13 Research, Extension, and Teaching Policy Act of 

14 1977 (7 U.S.C. 3101 and 3102). 

15 ‘‘(8) BASIC AND APPLIED RESEARCH PRO16 GRAMS.—The Secretary shall establish 2 distinct 

17 programs of agricultural research, one to fund fun18 damental, basic research pursuant to paragraph (9) 

19 to be known as the National Research Initiative and 

20 one to fund applied, integrated research, education, 

21 and extension pursuant to paragraph (10) to be 

22 known as the Initiative for Future Agricultural and 

23 Food Systems. 

24 ‘‘(9) NATIONAL RESEARCH INITIATIVE.— 
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1 ‘‘(A) ALLOCATION.—The allocation of 

2 funds to the National Research Initiative shall 

3 be as follows: 

4 ‘‘(i) Not less than 30 percent shall be 

5 available to make grants for research to be 

6 conducted by multidisciplinary teams. 

7 ‘‘(ii) Not less than 20 percent shall be 

8 available to make grants for research to be 

9 conducted by persons conducting mission10 linked systems research. 

11 ‘‘(iii) Not less than 10 percent shall 

12 be available to make grants under subpara13 graphs (D), (F), and (G) of paragraph 

14 (13) for research and education strength15 ening and research opportunity. 

16 ‘‘(iv) Not more than 2 percent may be 

17 used for equipment grants under para18 graph (13)(D). 

19 ‘‘(B) MATCHING FUNDS.—Except as pro20 vided in this subparagraph, the Secretary may 

21 not take the offer or availability of matching 

22 funds into consideration in making a grant 

23 under this subsection. In the case of grants 

24 under paragraph (13)(D), the amount provided 

25 under this subsection may not exceed 50 per-
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1 cent of the cost of the special research equip2 ment or other equipment acquired. The Sec3 retary may waive all or part of the matching re4 quirement under this subparagraph in the case 

5 of a college, university, or research foundation 

6 maintained by a college or university that ranks 

7 in the lowest one-third of such colleges, univer8 sities, and research foundations on the basis of 

9 Federal research funds received if the equip10 ment to be acquired costs not more than 

11 $25,000 and has multiple uses within a single 

12 research project or is usable in more than 1 re13 search project. 

14 ‘‘(10) INITIATIVE FOR FUTURE AGRICULTURAL

15 AND FOOD SYSTEMS MATCHING FUNDS.—As a con16 dition of making a grant under this paragraph, the 

17 Secretary shall require the funding of the grant be 

18 matched with equal matching funds from a non-Fed19 eral source if the grant is— 

20 ‘‘(A) for applied research that is com21 modity-specific; and 

22 ‘‘(B) not of national scope. 

23 ‘‘(11) RESEARCH PRIORITIES.—The research 

24 priorities for the programs established in paragraph 

25 (8) shall be consistent with the priorities in effect 
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1 for the National Research Initiative (7 U.S.C. 

2 450i(b)) and Initiative for Future Agricultural and 

3 Food Systems (7 U.S.C. 7621) on the day before the 

4 date of enactment of this subsection. Priorities 

5 under the Initiative for Future Agricultural and 

6 Food Systems shall include classical plant and ani7 mal breeding. 

8 ‘‘(12) PROGRAM ADMINISTRATION.—To the 

9 greatest extent possible, the Under Secretary for Re10 search, Education, and Economics, in conjunction 

11 with the Directors of the National Agricultural Re12 search Program Offices established in section 7104 

13 of the Farm, Nutrition, and Bioenergy Act of 2007, 

14 shall allocate these grants to high priority research 

15 taking into consideration, when available, the deter16 minations made by the National Agricultural Re17 search, Extension, Education, and Economics Advi18 sory Board (as established under section 1408 of the 

19 National Agricultural Research, Extension, and 

20 Teaching Policy Act of 1977 (7 U.S.C. 3123). 

21 ‘‘(13) SPECIAL CONSIDERATIONS.—In addition 

22 to making research grants under paragraph (9), the 

23 Secretary may conduct a program to improve re24 search capabilities in the agricultural, food, and en25 vironmental sciences and award the following cat-
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1 egories of competitive grants. Grants may be award2 ed— 

3 ‘‘(A) to a single investigator or coinvestiga4 tors within the same discipline; 

5 ‘‘(B) to teams of researchers from dif6 ferent areas of agricultural research and sci7 entific disciplines; 

8 ‘‘(C) to multidisciplinary teams that are 

9 proposing research on long-term applied re10 search problems, with technology transfer a 

11 major component of all such grant proposals; 

12 ‘‘(D) to an institution to allow for the im13 provement of the research, development, tech14 nology transfer, and education capacity of the 

15 institution through the acquisition of special re16 search equipment and the improvement of agri17 cultural education and teaching; however the 

18 Secretary shall use not less than 25 percent of 

19 the funds made available for grants under this 

20 subparagraph to provide fellowships to out21 standing pre- and post-doctoral students for re22 search in the agricultural sciences; 

23 ‘‘(E) to a single investigator or coinvestiga24 tors who are beginning their research careers 

25 and do not have an extensive research publica-
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1 tion record; however, to be eligible for a grant 

2 under this subparagraph, an individual shall be 

3 within 5 years of the individual’s initial career 

4 track position; 

5 ‘‘(F) to ensure that the faculty of small 

6 and mid-sized institutions who have not pre7 viously been successful in obtaining competitive 

8 grants under this subsection receive a portion 

9 of the grants; and 

10 ‘‘(G) to improve research capabilities in 

11 States (as defined in the National Agricultural 

12 Research, Extension, and Teaching Policy Act 

13 of 1977 (7 U.S.C. 3101 et seq.)) in which insti14 tutions have been less successful in receiving 

15 funding under this subsection, based on a 3- 

16 year rolling average of funding levels. 

17 ‘‘(14) DIVISION OF FUNDS.—Of the funds made 

18 available to carry out this subsection, 60 percent 

19 shall be used to fund programs under paragraph (9) 

20 and 40 percent shall be used to fund programs 

21 under paragraph (10). 

22 ‘‘(15) TRANSFER OF FUNDS FROM THE INITIA23 TIVE FOR FUTURE AGRICULTURE AND FOOD SYS24 TEMS.—Funds made available pursuant to section 

25 401(b)(3)(D) of the Agricultural Research, Exten-
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1 sion, and Education Reform Act of 1998 (7 U.S.C. 

2 7621 (b)(3)(D)) shall be transferred to the program 

3 established under this subsection. 

4 ‘‘(16) AUTHORIZATION OF APPROPRIATIONS.— 

5 ‘‘(A) There is authorized to be appro6 priated to carry out this subsection 

7 $500,000,000 for each of fiscal years 2008 

8 through 2012. 

9 ‘‘(B) Funds made available in each fiscal 

10 year shall remain available until expended to 

11 pay for obligations incurred in that fiscal 

12 year.’’. 

13 (b) REPEALS.—The following provisions are hereby 

14 repealed: 

15 (1) Section 401 of the Agricultural Research, 

16 Extension, and Education Reform Act of 1998 (7 

17 U.S.C. 7621), except that section 401(b)(3) of such 

18 Act shall not be repealed and shall remain in effect. 

19 (2) Subsection (2)(d) of the Competitive, Spe20 cial, and Facilities Research Grant Act of 1965 (7 

21 U.S.C. 450i(d)). 

22 SEC. 7107. CAPACITY BUILDING GRANTS FOR ASCARR IN23 STITUTIONS. 

24 (a) GRANT PROGRAM.— 
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1 (1) IN GENERAL.—The Secretary shall make 

2 competitive grants to ASCARR Institutions to assist 

3 the ASCARR Institutions in maintaining and ex4 panding the capacity of the ASCARR Institutions to 

5 conduct education, research, and outreach activities 

6 relating to— 

7 (A) agriculture; 

8 (B) renewable resources; and 

9 (C) other similar disciplines. 

10 (2) USE OF FUNDS.—An ASCARR Institution 

11 that receives a grant under subsection (a)(1) may 

12 use the funds made available through the grant to 

13 maintain and expand the capacity of the ASCARR 

14 Institution— 

15 (A) to successfully compete for funds from 

16 Federal grants and other sources to carry out 

17 educational, research, and outreach activities 

18 that address priority concerns of national, re19 gional, State, and local interest; 

20 (B) to disseminate information relating to 

21 priority concerns to— 

22 (i) interested members of the agri23 culture, renewable resources, and other rel24 evant communities; 

25 (ii) the public; and 
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1 (iii) any other interested entity; 

2 (C) to encourage members of the agri3 culture, renewable resources, and other relevant 

4 communities to participate in priority edu5 cation, research, and outreach activities by pro6 viding matching funding to leverage grant 

7 funds; and 

8 (D) through— 

9 (i) the purchase or other acquisition 

10 of equipment and other infrastructure (not 

11 including alteration, repair, renovation, or 

12 construction of buildings); 

13 (ii) the professional growth and devel14 opment of the faculty of the ASCARR In15 stitution; and 

16 (iii) the development of graduate 

17 assistantships. 

18 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

19 are authorized to be appropriated to carry out this section 

20 such sums as are necessary for each fiscal year 2008 

21 through 2012. 

22 SEC. 7108. ESTABLISHMENT OF RESEARCH LABORATORIES 

23 FOR ANIMAL DISEASES. 

24 (a) DEFINITIONS.—In this section— 
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1 (1) ANIMAL DISEASE.—The term ‘‘animal dis2 ease’’ has the meaning given the term by the Sec3 retary. 

4 (2) IMPORT.—The term ‘‘import’’ means to 

5 move from a place outside the territorial limits of 

6 the United States to a place within the territorial 

7 limits of the United States. 

8 (3) LIVE VIRUS.—The term ‘‘live virus’’ means 

9 a live virus of foot-and-mouth disease or a live virus 

10 of any other animal disease that is a threat to the 

11 health of livestock, as determined by the Secretary. 

12 (4) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of Agriculture. 

14 (5) STATE.—The term ‘‘State’’ means any of 

15 the States, the District of Columbia, the Common16 wealth of Puerto Rico, Guam, the Commonwealth of 

17 the Northern Mariana Islands, the Virgin Islands of 

18 the United States, or any territory or possession of 

19 the United States. 

20 (6) UNITED STATES.—The term ‘‘United 

21 States’’ means all of the States. 

22 (b) ANIMAL DISEASE RESEARCH.— 

23 (1) ESTABLISHMENT OF RESEARCH FACILI24 TIES.—The Secretary is authorized to establish re25 search laboratories, including the acquisition of nec-
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1 essary land, buildings, or facilities, for research on 

2 animal diseases in the United States. 

3 (2) ACTIVITIES AUTHORIZED WHEN DISEASE

4 THREATENS LIVESTOCK.—To the extent the Sec5 retary determines that an animal disease constitutes 

6 a threat to the livestock industry, the Secretary is 

7 authorized to conduct research, diagnostics, and 

8 other activities related to the animal disease. 

9 (c) RESTRICTIONS REGARDING LIVE VIRUS.— 

10 (1) IN GENERAL.—Except as provided in para11 graphs (2), (3), and (4), a person or State or Fed12 eral agency may not— 

13 (A) import a live virus into the United 

14 States; 

15 (B) transport a live virus within the 

16 United States; and 

17 (C) store and maintain a live virus at a re18 search facility. 

19 (2) AUTHORITY OF THE SECRETARY.—The Sec20 retary of Agriculture may— 

21 (A) import a live virus into the United 

22 States; 

23 (B) transport a live virus within the 

24 United States; and 
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1 (C) store and maintain a live virus at a re2 search facility. 

3 (3) PERMITS.— 

4 (A) IN GENERAL.—If the Secretary deter5 mines that it is in the public interest to do so, 

6 the Secretary may issue a permit to allow a pri7 vate person or a State or Federal agency to— 

8 (i) import a live virus into the United 

9 States; 

10 (ii) transport a live virus within the 

11 United States; and 

12 (iii) store and maintain a live virus at 

13 a research facility. 

14 (B) PERMIT TERMS.—A permit issued 

15 under this paragraph shall be subject to terms 

16 and conditions prescribed by the Secretary. 

17 (4) LIMITATION.—Nothing in this section shall 

18 apply to the importation, transportation, storage, 

19 and maintenance of any live virus governed by regu20 lations promulgated pursuant to section 351A of the 

21 Public Health Service Act (42 U.S.C. 262a) or the 

22 Agricultural Bioterrorism Protection Act of 2002 (7 

23 U.S.C. 8401). 

24 (d) AUTHORIZATION OF APPROPRIATIONS.—In addi25 tion to funds otherwise available for the control or eradi-
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1 cation of animal diseases, there are authorized to be ap2 propriated such sums as necessary to carry out this sec3 tion. 

4 SEC. 7109. GRAZINGLANDS RESEARCH LABORATORY. 

5 Notwithstanding any other provision of law, without 

6 specific authorization by an Act of Congress, the Federal 

7 land and facilities at El Reno, Oklahoma, currently admin8 istered by the Secretary of Agriculture as the 

9 Grazinglands Research Laboratory, shall not at any time, 

10 in whole or part, be declared to be excess or surplus Fed11 eral property under chapter 5 of subtitle I of title 40, 

12 United States Code, or otherwise be conveyed or trans13 ferred in whole or in part. 

14 SEC. 7110. RESEARCHER TRAINING. 

15 (a) REQUIREMENT.—The Secretary shall require that 

16 persons receiving funds under section 1668(g)(2) of the 

17 Food, Agriculture, Conservation, and Trade Act of 1990 

18 (7 U.S.C. 5921(g)(2)) to conduct research concerning ge19 netically engineered plants, including seed and other prop20 agative materials, complete a training program approved 

21 by the Secretary. 

22 (b) CERTIFICATION OF THIRD-PARTY PROVIDERS.— 

23 Not later than 180 days after the date of the enactment 

24 of this Act, the Secretary shall establish a system for ap25 proving individuals and entities to provide training under 
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1 subsection (a), including criteria for the evaluation of 

2 trainers or potential trainers. 

3 (c) EXPERTISE.—In establishing criteria for the eval4 uation of potential trainers, the Secretary shall ensure 

5 that individuals and entities with expertise in quality man6 agement systems, plant breeding and genetics, and the 

7 technical aspects of the Federal regulatory process for ag8 ricultural biotechnology, are eligible to become approved 

9 trainers under subsection (b). 

10 SEC. 7111. FORT RENO SCIENCE PARK RESEARCH FACIL11 ITY. 

12 The Secretary of Agriculture may lease land to the 

13 University of Oklahoma at the Grazinglands Research 

14 Laboratory at El Reno, Oklahoma, on such terms and con15 ditions as the University and the Secretary may agree in 

16 furtherance of cooperative research and existing easement 

17 arrangements. 

18 SEC. 7112. ASSESSING THE NUTRITIONAL COMPOSITION OF 

19 BEEF PRODUCTS. 

20 (a) STUDY.—Not later than 1 year after the date of 

21 the enactment of this Act, the Secretary shall award a 

22 grant, contract, or other agreement with an appropriate 

23 land-grant university to update the Department of Agri24 culture’s Nutrient Composition Handbook for Beef, also 

25 known as Handbook #8–13. The Handbook shall incor-
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1 porate accurate and current data collected by the univer2 sity to be used by Federal agencies, private industries, 

3 health organizations, and consumers to determine impor4 tant diet and health-related issues associated with the con5 sumption of beef and beef products. 

6 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated such sums as are nec8 essary to carry out this section to be available until ex9 pended. 

10 SEC. 7113. SENSE OF CONGRESS REGARDING FUNDING FOR 

11 HUMAN NUTRITION RESEARCH. 

12 It is the sense of the Congress that— 

13 (1) human nutrition research has the potential 

14 for improving the health status of the American 

15 public through studies that help determine— 

16 (A) the food and beverage intakes of 

17 Americans and the nutrient composition of the 

18 food supply; 

19 (B) the relationship between diet and obe20 sity, particularly to prevent childhood obesity; 

21 (C) the authoritative, peer-reviewed, 

22 science-based evidence that forms the basis for 

23 Federal nutrition policy, dietary guidelines and 

24 programs; and 
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1 (D) the nutrient requirements for individ2 uals at various stages in the lifespan and for 

3 vulnerable populations, particularly children 

4 and the elderly; 

5 (2) human nutrition research holds the poten6 tial for identifying factors in crops and livestock that 

7 provide nutrition benefits to humans and add value 

8 for producers; 

9 (3) the potential cost savings to Federal health 

10 programs, combined with the boost in revenues for 

11 farmers who produce nutritionally enhanced foods, 

12 justifies an increase in funding to a level sufficient 

13 to conduct this essential research; and 

14 (4) the USDA regional human nutritional re15 search centers have unique value in linking producer 

16 and consumer interests into investigations of food 

17 and human nutrition issues and conducting long18 term nutrition studies; and activities at these centers 

19 should be preserved and coordinated with other 

20 human nutrition research activities. 
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1 Subtitle B—National Agricultural 

2 Research, Extension, and Teach3 ing Policy Act of 1977 

4 SEC. 7201. ADVISORY BOARD. 

5 Section 1408(g)(1) of the National Agricultural Re6 search, Extension, and Teaching Policy Act of 1977 (7 

7 U.S.C. 3123(g)(1)) is amended by striking ‘‘$350,000’’ 

8 and inserting ‘‘$500,000’’. 

9 SEC. 7202. ADVISORY BOARD TERMINATION. 

10 Section 1408(h) of the National Agricultural Re11 search, Extension, and Teaching Policy Act of 1977 (7 

12 U.S.C. 3123(h)) is amended by striking ‘‘2007’’ and in13 serting ‘‘2012’’. 

14 SEC. 7203. RENEWABLE ENERGY COMMITTEE. 

15 The National Agricultural Research, Extension, and 

16 Teaching Policy Act of 1977 is amended by inserting after 

17 section 1408A the following: 

18 ‘‘SEC. 1408B. RENEWABLE ENERGY COMMITTEE. 

19 ‘‘(a) INITIAL MEMBERS.—Not later than 90 days 

20 after the date of the enactment of this section, the execu21 tive committee of the Advisory Board shall establish and 

22 appoint the initial members of a permanent renewable en23 ergy committee that shall be responsible for studying the 

24 scope and effectiveness of research, extension, and eco25 nomics programs affecting the renewable energy industry. 
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1 ‘‘(b) NON-ADVISORY BOARD MEMBERS.—Individuals 

2 who are not members of the Advisory Board may be ap3 pointed as members of the renewable energy committee. 

4 Members of the renewable energy committee shall serve 

5 at the discretion of the executive committee. 

6 ‘‘(c) REPORT BY RENEWABLE ENERGY COM7 MITTEE.—Not later than 180 days after the establishment 

8 of the renewable energy committee, and annually there9 after, the renewable energy committee shall submit to the 

10 Advisory Board a report containing the findings of its 

11 study under subsection (a). The renewable energy com12 mittee shall include in each report its recommendations. 

13 ‘‘(d) COORDINATION OF FUNCTIONS.—In carrying 

14 out its functions, the Renewable Energy Committee shall 

15 coordinate with the Biomass Research and Development 

16 Act Committee. 

17 ‘‘(e) MATTERS TO BE CONSIDERED IN BUDGET REC18 OMMENDATION.—In preparing the annual budget rec19 ommendations for the Department, the Secretary shall 

20 take into consideration those findings and recommenda21 tions contained in the most recent report of the renewable 

22 energy committee that are adopted by the Advisory Com23 mittee. 

24 ‘‘(f) REPORT BY THE SECRETARY.—In the budget 

25 material submitted to Congress by the Secretary in con-
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1 nection with the budget submitted pursuant to section 

2 1105 of title 31, United States Code, for a fiscal year, 

3 the Secretary shall include a report describing how the 

4 Secretary addressed each recommendation of the renew5 able energy committee described in subsection (e) of this 

6 section.’’. 

7 SEC. 7204. SPECIALTY CROP COMMITTEE REPORT. 

8 Section 1408A(c) of the National Agricultural Re9 search, Extension, and Teaching Policy Act of 1977 (7 

10 U.S.C. 3123a(c)) is amended by adding at the end the 

11 following: 

12 ‘‘(4) Analyses of the specialty crop sector, in13 cluding the impact of changes in domestic and inter14 national markets, production and new product tech15 nologies, alternative policies and macroeconomic con16 ditions on specialty crop production, use, farm and 

17 retail prices, and farm income and financial stability 

18 from a national, regional, and farm-level perspective. 

19 ‘‘(5) Review of the economic state of the spe20 cialty crop industry from a regional perspective. 

21 ‘‘(6) Development of data that provides applied 

22 information useful to specialty crop growers, their 

23 associations, and other interested beneficiaries in 

24 evaluating that industry from a regional and na25 tional perspective.’’. 
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1 SEC. 7205. INCLUSION OF UDC IN GRANTS AND FELLOW2 SHIPS FOR FOOD AND AGRICULTURAL 

3 SCIENCES EDUCATION. 

4 Section 1417 of the National Agricultural Research, 

5 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

6 3152) is amended— 

7 (1) in subsection (b), by inserting ‘‘including 

8 the University of the District of Columbia,’’ after 

9 ‘‘universities,’’; and 

10 (2) in subsection (d)(2), by inserting ‘‘, includ11 ing the University of the District of Columbia,’’ 

12 after ‘‘universities’’. 

13 SEC. 7206. GRANTS AND FELLOWSHIPS FOR FOOD AND AG14 RICULTURAL SCIENCES EDUCATION. 

15 (a) EDUCATION TEACHING PROGRAMS.—Section 

16 1417(j) of the National Agricultural Research, Extension 

17 and Teaching Policy Act of 1977 (7 U.S.C. 3152(j)) is 

18 amended— 

19 (1) in the subsection heading, by striking ‘‘SEC20 ONDARY EDUCATION AND 2-YEAR POSTSECONDARY

21 EDUCATION TEACHING PROGRAMS’’ and inserting 

22 ‘‘SECONDARY EDUCATION, 2-YEAR POSTSECONDARY

23 EDUCATION, AND AGRICULTURE IN THE K–12 

24 CLASSROOM’’; and 

25 (2) in paragraph (3)— 
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1 (A) by striking ‘‘secondary schools, and in2 stitutions of higher education that award an as3 sociate’s degree’’ and inserting ‘‘secondary 

4 schools, institutions of higher education that 

5 award an associate’s degree, other institutions 

6 of higher education, and nonprofit organiza7 tions’’; 

8 (B) in subparagraph (E), by striking 

9 ‘‘and’’ at the end; 

10 (C) in subparagraph (F), by striking the 

11 period at the end and inserting ‘‘; and’’; and 

12 (D) by adding at the end the following: 

13 ‘‘(G) to support current agriculture in the 

14 classroom programs for grades K–12.’’. 

15 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

16 1417(l) of the National Agricultural Research, Extension, 

17 and Teaching Policy Act of 1977 (7 U.S.C. 3152(l)) is 

18 amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

19 (c) REPORT.—Section 1417 of the National Agricul20 tural Research, Extension and Teaching Policy Act of 

21 1977 is amended by adding at the end the following: 

22 ‘‘(m) REPORT.—The Secretary shall submit an an23 nual report to the Committee on Agriculture of the House 

24 of Representatives and the Committee on Agriculture, Nu25 trition and Forestry of the Senate detailing the distribu-
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1 tion of funds used to implement the teaching programs 

2 under subsection (j).’’. 

3 SEC. 7207. GRANTS FOR RESEARCH ON PRODUCTION AND 

4 MARKETING OF ALCOHOLS AND INDUSTRIAL 

5 HYDROCARBONS FROM AGRICULTURAL COM6 MODITIES AND FOREST PRODUCTS. 

7 Section 1419(d) of the National Agricultural Re8 search, Extension, and Teaching Policy Act of 1977 (7 

9 U.S.C. 3154(d)) is amended by striking ‘‘2007’’ and in10 serting ‘‘2012’’. 

11 SEC. 7208. POLICY RESEARCH CENTERS. 

12 Section 1419A of the National Agricultural Research, 

13 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

14 3155) is amended— 

15 (1) in subsection (b), by inserting ‘‘, including 

16 the Food Agricultural Policy Research Institute and 

17 the Agricultural and Food Policy Center’’ after ‘‘re18 search institutions and organizations’’; and 

19 (2) in subsection (d), by striking ‘‘2007’’ and 

20 inserting ‘‘2012’’. 

21 SEC. 7209. HUMAN NUTRITION INTERVENTION AND 

22 HEALTH PROMOTION RESEARCH PROGRAM. 

23 Section 1424(d) of the National Agricultural Re24 search, Extension, and Teaching Policy Act of 1977 (7 
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1 U.S.C. 3174(d)) is amended by striking ‘‘2007’’ and in2 serting ‘‘2012’’. 

3 SEC. 7210. PILOT RESEARCH PROGRAM TO COMBINE MED4 ICAL AND AGRICULTURAL RESEARCH. 

5 Section 1424A(d) of the National Agricultural Re6 search, Extension, and Teaching Policy Act of 1977 (7 

7 U.S.C. 3174a(d)) is amended by striking ‘‘2007’’ and in8 serting ‘‘2012’’. 

9 SEC. 7211. NUTRITION EDUCATION PROGRAM. 

10 Section 1425(c)(3) of the National Agricultural Re11 search, Extension, and Teaching Policy Act of 1977 (7 

12 U.S.C. 3175(c)(3)) is amended by striking ‘‘2007’’ and 

13 inserting ‘‘2012’’. 

14 SEC. 7212. CONTINUING ANIMAL HEALTH AND DISEASE RE15 SEARCH PROGRAMS. 

16 Section 1433(a) of the National Agricultural Re17 search, Extension, and Teaching Policy Act of 1977 (7 

18 U.S.C. 3195(a)) is amended in the first sentence by strik19 ing ‘‘2007’’ and inserting ‘‘2012’’. 

20 SEC. 7213. COOPERATION AMONG ELIGIBLE INSTITUTIONS. 

21 Section 1433 of the National Agricultural Research, 

22 Extension, and Teaching Policy Act of 1977 is amended 

23 by adding at the end the following new subsection: 

24 ‘‘(g) COOPERATION AMONG ELIGIBLE INSTITU25 TIONS.—The Secretary, to the maximum extent prac-
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1 ticable, shall encourage eligible institutions to cooperate 

2 in setting research priorities under this section through 

3 the conduct of regular regional and national meetings.’’. 

4 SEC. 7214. APPROPRIATIONS FOR RESEARCH ON NATIONAL 

5 OR REGIONAL PROBLEMS. 

6 Section 1434(a) of the National Agricultural Re7 search, Extension, and Teaching Policy Act of 1977 (7 

8 U.S.C. 3196(a)) is amended by striking ‘‘2007’’ and in9 serting ‘‘2012’’. 

10 SEC. 7215. AUTHORIZATION LEVEL OF EXTENSION AT 1890 

11 LAND-GRANT COLLEGES. 

12 Section 1444(a)(2) of the National Agricultural Re13 search, Extension, and Teaching Policy Act of 1977 (7 

14 U.S.C. 3221(a)(2)) is amended by striking ‘‘15 percent’’ 

15 and inserting ‘‘20 percent’’. 

16 SEC. 7216. AUTHORIZATION LEVEL FOR AGRICULTURAL RE17 SEARCH AT 1890 LAND-GRANT COLLEGES. 

18 Section 1445(a)(2) of the National Agricultural Re19 search, Extension, and Teaching Policy Act of 1977 (7 

20 U.S.C. 3222(a)(2)) is amended by striking ‘‘25 percent’’ 

21 and inserting ‘‘30 percent’’. 
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1 SEC. 7217. GRANTS TO UPGRADE AGRICULTURE AND FOOD 

2 SCIENCES FACILITIES AT THE DISTRICT OF 

3 COLUMBIA LAND GRANT UNIVERSITY. 

4 The National Agricultural Research, Extension, and 

5 Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is 

6 amended by inserting after section 1447 the following: 

7 ‘‘SEC. 1447A. GRANTS TO UPGRADE AGRICULTURE AND 

8 FOOD SCIENCES FACILITIES AT THE DIS9 TRICT OF COLUMBIA LAND GRANT UNIVER10 SITY. 

11 ‘‘(a) PURPOSE.—It is declared to be the intent of 

12 Congress to assist the land grant university in the District 

13 of Columbia, as established under section 208 of the Dis14 trict of Columbia Public Postsecondary Education Reorga15 nization Act of October 26, 1974 (Public Law 93–471) 

16 in efforts to acquire, alter, or repair facilities or relevant 

17 equipment necessary for conducting agricultural research. 

18 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

19 are authorized to be appropriated for the purposes of car20 rying out the provisions of this section $750,000 for each 

21 of fiscal years 2008 through 2012.’’. 
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1 SEC. 7218. GRANTS TO UPGRADE AGRICULTURAL AND 

2 FOOD SCIENCES FACILITIES AT 1890 LAND3 GRANT COLLEGES, INCLUDING TUSKEGEE 

4 UNIVERSITY. 

5 Section 1447(b) of the National Agricultural Re6 search, Extension, and Teaching Policy Act of 1977 (7 

7 U.S.C. 3222b(b)) is amended by striking ‘‘2007’’ and in8 serting ‘‘2012’’. 

9 SEC. 7219. NATIONAL RESEARCH AND TRAINING VIRTUAL 

10 CENTERS. 

11 Section 1448 of the National Agricultural Research, 

12 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

13 3222c) is amended by striking ‘‘2007’’ each place it ap14 pears in subsections (a)(1) and (f) and inserting ‘‘2012’’. 

15 SEC. 7220. MATCHING FUNDS REQUIREMENT FOR RE16 SEARCH AND EXTENSION ACTIVITIES OF 1890 

17 INSTITUTIONS. 

18 Section 1449(c) of the National Agricultural Re19 search, Extension, and Teaching Policy Act of 1977 (7 

20 U.S.C. 3222d(c)) is amended in the first sentence by strik21 ing ‘‘for each of fiscal years 2003 through 2007,’’. 

22 SEC. 7221. HISPANIC-SERVING INSTITUTIONS. 

23 Section 1455(c) of the National Agricultural Re24 search, Extension, and Teaching Policy Act of 1977 (7 

25 U.S.C. 3241(c)) is amended by striking ‘‘2007’’ and in26 serting ‘‘2012’’. 
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1 SEC. 7222. HISPANIC-SERVING AGRICULTURAL COLLEGES 

2 AND UNIVERSITIES. 

3 (a) IN GENERAL.—The National Agricultural Re4 search, Extension and Teaching Policy Act of 1977 is 

5 amended by inserting after section 1455 the following: 

6 ‘‘SEC. 1456. HISPANIC-SERVING AGRICULTURAL COLLEGES 

7 AND UNIVERSITIES. 

8 ‘‘(a) DEFINITIONS.—As used in this section: 

9 ‘‘(1) ENDOWMENT FUND.—The term ‘endow10 ment fund’ means the Hispanic-Serving Agricultural 

11 Colleges and Universities Fund established under 

12 subsection (b). 

13 ‘‘(2) HISPANIC-SERVING AGRICULTURAL COL14 LEGE AND UNIVERSITIES.—The term ‘Hispanic-serv15 ing agricultural colleges and universities’ means a 

16 college or university that— 

17 ‘‘(A) qualifies as a ‘Hispanic-serving insti18 tution’; and 

19 ‘‘(B) offers associate, bachelor’s, or other 

20 accredited degree programs in agriculture-re21 lated fields, as determined by the Secretary. 

22 ‘‘(b) ENDOWMENT.— 

23 ‘‘(1) IN GENERAL.—In accordance with this 

24 subsection, the Secretary of the Treasury shall es25 tablish a Hispanic-Serving Agricultural Colleges and 

26 Universities Fund. The Secretary of the Treasury 
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1 may enter into such agreements as are necessary to 

2 carry out this subsection. 

3 ‘‘(2) DEPOSIT TO THE ENDOWMENT FUND.— 

4 The Secretary of the Treasury shall deposit in the 

5 endowment fund any— 

6 ‘‘(A) amounts made available through Acts 

7 of appropriations, which shall be the endow8 ment fund corpus; and 

9 ‘‘(B) interest earned on the endowment 

10 fund corpus. 

11 ‘‘(3) INVESTMENTS.—The Secretary of the 

12 Treasury shall invest the endowment fund corpus 

13 and income in interest-bearing obligations of the 

14 United States. 

15 ‘‘(4) WITHDRAWALS AND EXPENDITURES.—The 

16 Secretary of the Treasury may not make a with17 drawal or expenditure from the endowment fund cor18 pus. On September 30, 2008, and each September 

19 30 thereafter, the Secretary of the Treasury shall 

20 withdraw the amount of the income from the endow21 ment fund for the fiscal year and warrant the funds 

22 to the Secretary who, after making adjustments for 

23 the cost of administering the endowment fund, shall 

24 distribute the adjusted income as follows: 
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1 ‘‘(A) 60 percent distributed among the 

2 Hispanic-serving agricultural colleges and uni3 versities on a pro rata basis based on each in4 stitution’s Hispanic enrollment count. 

5 ‘‘(B) 40 percent distributed in equal shares 

6 to the Hispanic-serving agricultural colleges 

7 and universities. 

8 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— 

9 ‘‘(A) IN GENERAL.—For fiscal year 2008, 

10 and for each fiscal year thereafter, there is au11 thorized to be appropriated to the Department 

12 of Agriculture an amount equal to— 

13 ‘‘(i) $80,000; multiplied by 

14 ‘‘(ii) the number of Hispanic-serving 

15 agricultural colleges and universities. 

16 ‘‘(B) PAYMENTS.—For fiscal year 2008, 

17 and for each fiscal year thereafter, the Sec18 retary shall pay to the treasurer of each His19 panic-Serving agricultural college and university 

20 an amount equal to— 

21 ‘‘(i) the total amount made available 

22 by appropriations pursuant to paragraph 

23 (1); divided by 

24 ‘‘(ii) the number of Hispanic-serving 

25 agricultural colleges and universities. 
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1 ‘‘(C) USE OF FUNDS.—Amounts author2 ized to be appropriated under this subsection 

3 shall be used in the same manner as is pre4 scribed for colleges under the Act of August 30, 

5 1890 (commonly known as the Second Morrill 

6 Act), and except as otherwise provided in this 

7 subsection, the requirements of such Act shall 

8 apply to the Hispanic-serving agricultural col9 leges and universities. 

10 ‘‘(D) Amounts appropriated pursuant to 

11 this paragraph shall be held and considered to 

12 have been granted to Hispanic-serving agricul13 tural colleges and universities to establish an 

14 endowment pursuant to subsection (b). 

15 ‘‘(c) INSTITUTIONAL CAPACITY BUILDING

16 GRANTS.— 

17 ‘‘(1) PURPOSE AND ALLOWABLE USES.—For 

18 fiscal year 2008, and for each fiscal year thereafter, 

19 the Secretary shall make institutional capacity build20 ing grants to assist Hispanic-serving agricultural 

21 colleges and universities not including alteration, re22 pair, renovation, or construction of buildings. 

23 ‘‘(2) CRITERIA FOR INSTITUTIONAL CAPACITY

24 BUILDING GRANTS.— 
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1 ‘‘(A) REQUIREMENTS FOR GRANTS.—The 

2 Secretary shall make grants under this sub3 section on the basis of a competitive application 

4 process under which Hispanic-serving agricul5 tural colleges and universities may submit ap6 plications to the Secretary in such form and 

7 manner as the Secretary may prescribe. 

8 ‘‘(B) BROADER PARTICIPATION AND GEO9 GRAPHIC DIVERSITY.—All Hispanic-serving ag10 ricultural colleges and universities shall be eligi11 ble to compete for grants under this subsection. 

12 ‘‘(C) DEMONSTRATION OF NEED.—The 

13 Secretary shall require as part of an application 

14 for a grant under this subsection, a demonstra15 tion of need based on criteria stated in sub16 section (b)(5). The Secretary may award a 

17 grant under this subsection only to an applicant 

18 that demonstrates a failure to obtain funding 

19 for a project after making a reasonable effort to 

20 otherwise obtain the funding. 

21 ‘‘(D) PAYMENT OF NON-FEDERAL

22 SHARE.—A grant awarded under this sub23 section shall be made only if the recipient of the 

24 grant pays a non-Federal share in an amount 
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1 specified by the Secretary and based upon as2 sessed institutional needs. 

3 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

4 There are authorized to be appropriated to the Sec5 retary to carry out this subsection, such sums as are 

6 necessary for fiscal year 2008, and for each fiscal 

7 year thereafter. 

8 ‘‘(d) COMPETITIVE GRANTS PROGRAM.—The Sec9 retary shall establish a competitive grants program to 

10 fund basic and applied research at Hispanic-serving agri11 cultural colleges and universities in agriculture, human 

12 nutrition, food science, bioenergy, and environmental 

13 science. There are authorized to be appropriated to the 

14 Secretary such sums as are necessary to carry out this 

15 subsection for fiscal year 2008 and for each fiscal year 

16 thereafter.’’. 

17 (b) EXTENSION FUNDING.—Section 3 of the Act of 

18 May 8, 1914, (commonly known as the Smith-Lever Act), 

19 is amended— 

20 (1) in subsection (b), by adding at the end the 

21 following new paragraph: 

22 ‘‘(4) There are authorized to be appropriated for fis23 cal year 2008, and for each fiscal year thereafter, such 

24 sums as are necessary for the purposes set forth in sub25 paragraph (D). Such sums shall be in addition to the sums 
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1 appropriated for the several States and Puerto Rico, the 

2 Virgin Islands, and Guam under the provisions of this sec3 tion. Such sums shall be distributed on the basis on a com4 petitive application process to be developed and imple5 mented by the Secretary and paid by the Secretary to the 

6 State institutions established in accordance with the provi7 sions of the Act of July 2, 1862 (commonly known as the 

8 First Morrill Act) and administered by such institutions 

9 through cooperative agreements with the Hispanic-serving 

10 agricultural colleges and universities in the States of the 

11 institutions in accordance with regulations that the Sec12 retary shall adopt.’’; and 

13 (2) in subsection (f), by inserting ‘‘or Hispanic14 serving agricultural colleges and universities’’ after 

15 ‘‘Institution’’. 

16 SEC. 7223. INTERNATIONAL AGRICULTURAL RESEARCH, EX17 TENSION, AND EDUCATION. 

18 Section 1458(a) of the National Agricultural Re19 search, Extension, and Teaching Policy Act of 1977 (7 

20 U.S.C. 3291(a)) is amended— 

21 (1) in paragraph (1)— 

22 (A) in subparagraph (A), by striking 

23 ‘‘and’’ after the semicolon; 

24 (B) in subparagraph (B), by adding ‘‘and’’ 

25 at the end; and 
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1 (C) by adding at the end the following: 

2 ‘‘(C) giving priority to those institutions 

3 with existing memorandums of understanding, 

4 agreements, or other formal ties to United 

5 States institutions, or State or Federal agen6 cies;’’; 

7 (2) in paragraph (3), by inserting ‘‘Hispanic8 serving agricultural colleges and universities,’’ after 

9 ‘‘universities, as defined in section 1456 of the Na10 tional Agricultural Research, Extension, and Teach11 ing Policy Act of 1977 (7 U.S.C. 3289),’’; 

12 (3) in paragraph (7)(A), by striking ‘‘and land13 grant colleges and universities’’ and inserting ‘‘, 

14 land-grant colleges and universities, and Hispanic15 serving agricultural colleges and universities, as de16 fined in section 1456 of the National Agricultural 

17 Research, Extension, and Teaching Policy Act of 

18 1977 (7 U.S.C. 3289)’’; 

19 (4) in paragraph (9)(A), by striking ‘‘or other 

20 colleges and universities’’ and inserting ‘‘, or other 

21 colleges and universities, or Hispanic-serving agricul22 tural colleges and universities, as defined in section 

23 1456 of the National Agricultural Research, Exten24 sion, and Teaching Policy Act of 1977 (7 U.S.C. 

25 3289)’’; and 
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1 (5) by adding at the end the following: 

2 ‘‘(11) establish a program for the purpose of 

3 providing fellowships to United States or foreign 

4 students to study at foreign agricultural colleges and 

5 universities working under agreements provided for 

6 under paragraph (3).’’. 

7 SEC. 7224. COMPETITIVE GRANTS FOR INTERNATIONAL AG8 RICULTURAL SCIENCE AND EDUCATION PRO9 GRAMS. 

10 Section 1459A(c) of the National Agricultural Re11 search, Extension, and Teaching Policy Act of 1977 (7 

12 U.S.C. 3292b(c)) is amended by striking ‘‘2007’’ and in13 serting ‘‘2012’’. 

14 SEC. 7225. LIMITATION ON INDIRECT COSTS FOR AGRICUL15 TURAL RESEARCH, EDUCATION, AND EXTEN16 SION PROGRAMS. 

17 Section 1462(a) of the National Agriculture Re18 search, Extension, and Teaching Policy Act of 1977 (7 

19 U.S.C. 3310(a)) is amended by striking ‘‘a competitive’’ 

20 and inserting ‘‘any’’. 

21 SEC. 7226. RESEARCH EQUIPMENT GRANTS. 

22 Section 1462A(e) of the National Agricultural Re23 search, Extension, and Teaching Policy Act of 1977 (7 

24 U.S.C. 3310a(e)) is amended by striking ‘‘2007’’ and in25 serting ‘‘2012’’. 
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1 SEC. 7227. UNIVERSITY RESEARCH. 

2 Section 1463 of the National Agricultural Research, 

3 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

4 3311) is amended by striking ‘‘2007’’ each place it ap5 pears in subsections (a) and (b) and inserting ‘‘2012’’. 

6 SEC. 7228. EXTENSION SERVICE. 

7 Section 1464 of the National Agricultural Research, 

8 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

9 3312) is amended by striking ‘‘2007’’ and inserting 

10 ‘‘2012’’. 

11 SEC. 7229. SUPPLEMENTAL AND ALTERNATIVE CROPS. 

12 Section 1473D(a) of the National Agricultural Re13 search, Extension, and Teaching Policy Act of 1977 (7 

14 U.S.C. 3319d(a)) is amended by striking ‘‘2007’’ and in15 serting ‘‘2012’’. 

16 SEC. 7230. AQUACULTURE ASSISTANCE PROGRAMS. 

17 Section 1477 of the National Agricultural Research, 

18 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

19 3324) is amended by striking ‘‘2007’’ and inserting 

20 ‘‘2012’’. 

21 SEC. 7231. RANGELAND RESEARCH. 

22 Section 1483(a) of the National Agricultural Re23 search, Extension, and Teaching Policy Act of 1977 (7 

24 U.S.C. 3336(a)) is amended by striking ‘‘2007’’ and in25 serting ‘‘2012’’. 
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1 SEC. 7232. SPECIAL AUTHORIZATION FOR BIOSECURITY 

2 PLANNING AND RESPONSE. 

3 Section 1484(a) of the National Agricultural Re4 search, Extension, and Teaching Policy Act of 1977 (7 

5 U.S.C. 3351(a)) is amended by striking ‘‘2007’’ and in6 serting ‘‘2012’’. 

7 SEC. 7233. RESIDENT INSTRUCTION AND DISTANCE EDU8 CATION GRANTS PROGRAM FOR INSULAR 

9 AREA INSTITUTIONS OF HIGHER EDUCATION. 

10 (a) DISTANCE EDUCATION GRANTS FOR INSULAR

11 AREAS.—Section 1490(f) of the National Agricultural Re12 search, Extension, and Teaching Policy Act of 1977 (7 

13 U.S.C. 3362(f)) is amended by striking ‘‘2007’’ and in14 serting ‘‘2012’’. 

15 (b) RESIDENT INSTRUCTION GRANTS FOR INSULAR

16 AREAS.—Section 1491 of the National Agricultural Re17 search, Extension, and Teaching Policy Act of 1977 (7 

18 U.S.C. 3363) is amended— 

19 (1) by redesignating subsection (e) as sub20 section (c); and 

21 (2) in subsection (c) (as so redesignated), by 

22 striking ‘‘2007’’ and inserting ‘‘2012’’. 

23 SEC. 7234. HISPANIC SERVING INSTITUTIONS. 

24 The text of section 1404 of the Research Act of 1977 

25 is amended to read as follows: ‘‘The term ‘Hispanic Serv26 ing Institution’ has the meaning given that term in section 
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1 502(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 

2 1101a(a)(5).’’. 

3 SEC. 7235. SPECIALTY CROPS POLICY RESEARCH INSTI4 TUTE. 

5 Section 1419A of the National Agricultural Research, 

6 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

7 3155) is amended by adding at the end the following: 

8 ‘‘(e) SPECIALTY CROPS POLICY RESEARCH INSTI9 TUTE.— 

10 ‘‘(1) ESTABLISHMENT.—The Food Agricultural 

11 Policy Research Institute shall establish a satellite 

12 institute, called the Specialty Crops Policy Research 

13 Institute, hereinafter referred to as the Institute, at 

14 accredited research universities within States with 

15 significant specialty crop industries to fulfill the ob16 jectives described in subsection (e)(3) of this section. 

17 ‘‘(2) MANAGEMENT.—The Institute shall be co18 ordinated and managed by an appointed university 

19 and will have the discretion to coordinate and facili20 tate the Institute’s economic and policy research ac21 tivities and those of additional member universities 

22 and institutions. 

23 ‘‘(3) INSTITUTE OBJECTIVES.—Consistent with 

24 the provisions of subsections (a) and (c) of this sec25 tion, the Institute shall— 
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1 ‘‘(A) produce and disseminate analysis of 

2 the specialty crop sector, including the impact 

3 of changes in domestic and international mar4 kets, production, new product technologies, 

5 web-based risk management tools, alternative 

6 policies and macroeconomic conditions on spe7 cialty crop production, use, farm and retail 

8 prices, and farm income and financial stability 

9 from a national, regional, and farm-level per10 spective; and 

11 ‘‘(B) produce and disseminate an annual 

12 review of the economic state of the specialty 

13 crop industry nationally, regionally, and by14 state. 

15 ‘‘(4) AUTHORIZATION OF APPROPRIATION.— 

16 There are authorized to be appropriated such sums 

17 as are necessary in each fiscal year through 2012 to 

18 carry out this section.’’. 

19 SEC. 7236. EMPHASIS OF HUMAN NUTRITION INITIATIVE. 

20 Section 1424(b) of the National Agricultural Re21 search, Extension, and Teaching Policy Act of 1977 (7 

22 U.S.C. 3174(b)) is amended— 

23 (1) in paragraph (1), by striking ‘‘and,’’; 

24 (2) in paragraph (2), by striking the comma 

25 and inserting ‘‘; and’’; and 
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1 (3) by adding at the end the following: 

2 ‘‘(3) proposals that examine the efficacy of cur3 rent agriculture policies in promoting the health and 

4 welfare of economically disadvantaged populations,’’. 

5 SEC. 7237. GRANTS TO UPGRADE AGRICULTURE AND FOOD 

6 SCIENCES FACILITIES AT INSULAR AREA 

7 LAND-GRANT INSTITUTIONS. 

8 The National Agricultural Research, Extension, and 

9 Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) is 

10 amended by inserting after section 1447A the following: 

11 ‘‘SEC. 1447B. GRANTS TO UPGRADE AGRICULTURE AND 

12 FOOD SCIENCES FACILITIES AND EQUIP13 MENT AT INSULAR AREA LAND-GRANT INSTI14 TUTIONS. 

15 ‘‘(a) PURPOSE.—It is declared to be the intent of 

16 Congress to assist the land grant institutions in the insu17 lar areas in efforts to acquire, alter, or repair facilities 

18 or relevant equipment necessary for conducting agricul19 tural research. 

20 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated for the purposes of car22 rying out the provisions of this section $8,000,000 for 

23 each of fiscal years 2008 through 2012. 

24 ‘‘(c) METHOD OF AWARDING GRANTS.—Grants 

25 awarded pursuant to this section shall be made in such 
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1 amounts and under such terms and conditions as the Sec2 retary shall determine necessary for carrying out the pur3 poses of this section. 

4 ‘‘(d) REGULATIONS.—The Secretary may promulgate 

5 such rules and regulations as the Secretary may consider 

6 necessary to carry out the provisions of this section.’’. 

7 Subtitle C—Food, Agriculture, Con8 servation, and Trade Act of 1990 

9 SEC. 7301. NATIONAL GENETICS RESOURCES PROGRAM. 

10 Section 1635(b) of the Food, Agriculture, Conserva11 tion, and Trade Act of 1990 (7 U.S.C. 5844(b)) is amend12 ed by striking ‘‘2007’’ and inserting ‘‘2012’’. 

13 SEC. 7302. NATIONAL AGRICULTURAL WEATHER INFORMA14 TION SYSTEM. 

15 Section 1641(c) of the Food, Agriculture, Conserva16 tion, and Trade Act of 1990 (7 U.S.C. 5855(c)) is amend17 ed by striking ‘‘1991 through 1997’’ and inserting ‘‘2008 

18 through 2012’’. 

19 SEC. 7303. PARTNERSHIPS. 

20 Section 1672(d) of the Food, Agriculture, Conserva21 tion, and Trade Act of 1990 (7 U.S.C. 5925(d)) is amend22 ed by striking ‘‘may’’ and inserting ‘‘shall’’. 

23 SEC. 7304. AFLATOXIN RESEARCH AND EXTENSION. 

24 Section 1672(e)(3) of the Food, Agriculture, Con25 servation, and Trade Act of 1990 (7 U.S.C. 5925(e)(3)) 
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1 is amended by striking ‘‘and controlling aflatoxin in the 

2 food and feed chains.’’ and inserting ‘‘improving, and 

3 eventually commercializing alfatoxin controls in corn and 

4 other affected agricultural products and crops.’’. 

5 SEC. 7305. HIGH-PRIORITY RESEARCH AND EXTENSION 

6 AREAS. 

7 Section 1672(e) of the Food, Agriculture, Conserva8 tion, and Trade Act of 1990 (7 U.S.C. 5925(e)) is amend9 ed by adding the following: 

10 ‘‘(46) FARMED AND WILD CERVID DISEASE AND

11 APPLIED GENETICS RESEARCH.—Research grants 

12 may be made under this section for the purpose of 

13 investigating the major infectious, parasitic and 

14 toxic diseases of importance to farmed and wild 

15 cervids. 

16 ‘‘(47) AIR EMISSIONS FROM LIVESTOCK OPER17 ATIONS.—Research and extension grants may be 

18 made under this section for the purpose of con19 ducting field verification tests and developing mitiga20 tion options for air emissions from animal feeding 

21 operations. 

22 ‘‘(48) SWINE GENOME PROJECT.—Research 

23 grants may be made under this section to conduct 

24 swine genome research and to map the swine ge25 nome. 
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1 ‘‘(49) CATTLE FEVER TICK PROGRAM.—Re2 search and extension grants may be made to study 

3 cattle fever ticks to facilitate understanding of the 

4 role of wildlife in the persistence and spread of cattle 

5 fever ticks; to develop advanced methods for eradi6 cation of cattle fever ticks; and to improve manage7 ment of diseases related to cattle fever ticks that are 

8 associated with wildlife, livestock, and human health. 

9 ‘‘(50) COLONY COLLAPSE DISORDER PRO10 GRAM.—Research and extension grants may be made 

11 to survey and collect data of honey bee colony pro12 duction and health; research various factors possibly 

13 contributing to or associated with colony collapse 

14 disorder; and develop mitigative and preventative 

15 measures to improve bee health. 

16 ‘‘(51) SYNTHETIC GYPSUM FROM ELECTRIC

17 POWER PLANTS RESEARCH.—Research and exten18 sion grants may be made to study the uses of syn19 thetic gypsum from electric power plants to reme20 diate soil and nutrient losses. 

21 ‘‘(52) CRANBERRY RESEARCH PROGRAM.—Re22 search and extension grants may be made to study 

23 new technologies to assist cranberry growers in com24 plying with Federal and State environmental regula25 tions, increase production, develop new growing 
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1 techniques, establish more efficient growing meth2 odologies, and educate farmers about sustainable 

3 growth practices. 

4 ‘‘(53) SORGHUM RESEARCH INITIATIVE.—Re5 search and extension grants may be made to study 

6 the use of sorghum as a bioenergy feedstock, pro7 mote diversification in, and the environmental sus8 tainability of sorghum production, and promote 

9 water conservation through the use of sorghum. 

10 ‘‘(54) BEAN HEALTH RESEARCH PROGRAM.— 

11 Research and extension grants may be made to 

12 study bean-based solutions to chronic health and nu13 tritional concerns in both developed and developing 

14 countries, and to increase bean consumption.’’. 

15 SEC. 7306. HIGH-PRIORITY RESEARCH AND EXTENSION INI16 TIATIVES. 

17 Section 1672(h) of the Food, Agriculture, Conserva18 tion, and Trade Act of 1990 (7 U.S.C. 5925(h)) is amend19 ed by striking ‘‘2007’’ and inserting ‘‘2012’’. 

20 SEC. 7307. NUTRIENT MANAGEMENT RESEARCH AND EX21 TENSION INITIATIVE. 

22 Section 1672A of the Food, Agriculture, Conserva23 tion, and Trade Act of 1990 (7 U.S.C. 5925a) is amend24 ed— 
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1 (1) by redesignating subsection (g) as sub2 section (f); 

3 (2) in subsection (d), by inserting ‘‘or address 

4 unique regional concerns’’ after ‘‘entities’’; 

5 (3) in subsection (e)(1)(B), by inserting ‘‘and 

6 dairy cattle waste’’ after ‘‘swine waste’’; and 

7 (4) in subsection (f) (as so redesignated in 

8 paragraph (1)), by striking ‘‘2007’’ and inserting 

9 ‘‘2012’’. 

10 SEC. 7308. AGRICULTURAL TELECOMMUNICATIONS PRO11 GRAM. 

12 Section 1673(h) of the Food, Agriculture, Conserva13 tion, and Trade Act of 1990 (7 U.S.C. 5926(h)) is amend14 ed by striking ‘‘2007’’ and inserting ‘‘2012’’. 

15 SEC. 7309. ASSISTIVE TECHNOLOGY PROGRAM FOR FARM16 ERS WITH DISABILITIES. 

17 Section 1680(c)(1) of the Food, Agriculture, Con18 servation, and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) 

19 is amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

20 SEC. 7310. ORGANIC RESEARCH. 

21 (a) IN GENERAL.—The Organic Agriculture Re22 search and Extension Initiative (section 1672B of the 

23 Food, Agriculture, Conservation, and Trade Act of 1990 

24 (7 U.S.C. 5925b)) is amended— 

25 (1) in subsection (a)— 
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1 (A) in paragraph (5), by striking ‘‘and’’ 

2 after the semicolon; 

3 (B) in paragraph (6), at the end by strik4 ing the period and inserting a semicolon; and 

5 (C) by adding at the end the following: 

6 ‘‘(7) examining optimal conservation and envi7 ronmental outcomes relating to organically produced 

8 agricultural products; and 

9 ‘‘(8) developing new and improved seed vari10 eties that are particularly suited for organic agri11 culture.’’; and 

12 (2) by adding at the end the following— 

13 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

14 is authorized to be appropriated $25,000,000 for each of 

15 fiscal years 2009 through 2012. 

16 ‘‘(g) ADDITIONAL FUNDING.—In addition to funds 

17 made available under subsection (f), of the funds of the 

18 Commodity Credit Corporation, the Secretary shall make 

19 available to carry out this section a total of $25,000,000 

20 for fiscal years 2008 through 2012.’’. 

21 (b) COORDINATION.—In carrying out this section, the 

22 Secretary shall ensure that the Director of the applicable 

23 Program Office established under section 7104(a) coordi24 nates projects and activities carried out under this section 
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1 to ensure, to the maximum extent practicable, that dupli2 cation of effort is eliminated or minimized. 

3 SEC. 7311. NATIONAL RURAL INFORMATION CENTER 

4 CLEARINGHOUSE. 

5 Section 2381(e) of the Food, Agriculture, Conserva6 tion, and Trade Act of 1990 (7 U.S.C. 3125b(e)) is 

7 amended by striking ‘‘2007’’ and inserting ‘‘2012’’. 

8 SEC. 7312. NEW ERA RURAL TECHNOLOGY PROGRAM. 

9 (a) FUNCTIONS.— 

10 (1) The Secretary shall establish the ‘‘New Era 

11 Rural Technology Program’’, to make grants avail12 able for technology development, applied research, 

13 and training to aid in the development of an agri14 culture-based renewable energy workforce. This ini15 tiative shall support the fields of bioenergy, pulp and 

16 paper manufacturing, and for agriculture-based re17 newable energy resources. 

18 (2) To receive funding under this section an en19 tity— 

20 (A) shall be a rural community college or 

21 advanced technological center, in existence on 

22 the date of the enactment of this Act, that par23 ticipates in agricultural or bioenergy research 

24 and applied research; 
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1 (B) shall have a proven record of develop2 ment and implementation of programs to meet 

3 the needs of students, educators, and business 

4 and industry to supply the agriculture-based, 

5 renewable energy or pulp and paper manufac6 turing fields with certified technicians as deter7 mined by the Secretary of Agriculture; and 

8 (C) shall have the ability to leverage exist9 ing partnerships and occupational outreach and 

10 training programs for secondary schools, 4-year 

11 institutions and relevant non-profit organiza12 tions. 

13 (b) LIMITATION ON AUTHORIZATION OF APPROPRIA14 TIONS.—To carry out this section, there are authorized 

15 to be appropriated such sums as necessary for each of the 

16 fiscal years 2008 through 2012. 

17 (c) COMMUNITY COLLEGES.—In this section, the 

18 term ‘‘community college’’ means an institution of higher 

19 education— 

20 (1) that admits as regular students persons who 

21 are beyond the age of compulsory school attendance 

22 in the State in which the institution is located and 

23 who have the ability to benefit from the training of24 fered by the institution; 
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1 (2) that does not provide an educational pro2 gram for which it awards a bachelor’s degree, or an 

3 equivalent degree; and 

4 (3) that— 

5 (A) provides an educational program of not 

6 less than two years that is acceptable for full 

7 credit toward such a degree; or 

8 (B) offers a two-year program in engineer9 ing, technology, mathematics, or the physical, 

10 chemical or biological sciences, designed to pre11 pare a student to work as a technician or at the 

12 semiprofessional level in engineering, scientific, 

13 or other technological fields requiring the un14 derstanding and application of basic engineer15 ing, scientific, or mathematical principles of 

16 knowledge. 

17 (d) GRANT PRIORITY.—Preference shall be given to 

18 rural community colleges working in partnership to im19 prove information sharing capacity and to maximize the 

20 ability to meet the requirements of this section. 
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1 Subtitle D—Agricultural Research, 

2 Extension, and Education Re3 form Act of 1998 

4 SEC. 7401. PARTNERSHIPS FOR HIGH-VALUE AGRICUL5 TURAL PRODUCT QUALITY RESEARCH. 

6 Section 402(g) of the Agricultural Research, Exten7 sion, and Education Reform Act of 1998 (7 U.S.C. 

8 7622(g)) is amended by striking ‘‘2007’’ and inserting 

9 ‘‘2012’’. 

10 SEC. 7402. PRECISION AGRICULTURE. 

11 Section 403(i)(1) of the Agricultural Research, Ex12 tension, and Education Reform Act of 1998 (7 U.S.C. 

13 7623(i)(1)) is amended by striking ‘‘2007’’ and inserting 

14 ‘‘2012’’. 

15 SEC. 7403. BIOBASED PRODUCTS. 

16 (a) PILOT PROJECT.—Section 404(e)(2) of the Agri17 cultural Research, Extension, and Education Reform Act 

18 of 1998 (7 U.S.C. 7624(e)(2)) is amended by striking 

19 ‘‘2007’’ and inserting ‘‘2012’’. 

20 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

21 404(h) of the Agricultural Research, Extension, and Edu22 cation Reform Act of 1998 (7 U.S.C. 7624(h)) is amended 

23 by striking ‘‘2007’’ and inserting ‘‘2012’’. 
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1 SEC. 7404. THOMAS JEFFERSON INITIATIVE FOR CROP DI2 VERSIFICATION. 

3 Section 405(h) of the Agricultural Research, Exten4 sion, and Education Reform Act of 1998 (7 U.S.C. 

5 7625(h)) is amended by striking ‘‘2007’’ and inserting 

6 ‘‘2012’’. 

7 SEC. 7405. INTEGRATED RESEARCH, EDUCATION, AND EX8 TENSION COMPETITIVE GRANTS PROGRAM. 

9 Section 406(f) of the Agricultural Research, Exten10 sion, and Education Reform Act of 1998 (7 U.S.C. 

11 7626(f)) is amended by striking ‘‘2007’’ and inserting 

12 ‘‘2012’’. 

13 SEC. 7406. FUSARIUM GRAMINEARUM GRANTS. 

14 Section 408 of the Agricultural Research, Extension, 

15 and Education Reform Act of 1998 (7 U.S.C. 7628(e)) 

16 is amended— 

17 (1) in the heading for such section, by striking 

18 ‘‘GRANT’’ and inserting ‘‘GRANTS’’; and 

19 (2) in subsection (e), by striking ‘‘2007’’ and 

20 inserting ‘‘2012’’. 

21 SEC. 7407. BOVINE JOHNE’S DISEASE CONTROL PROGRAM. 

22 Section 409(b) of the Agricultural Research, Exten23 sion, and Education Reform Act of 1998 (7 U.S.C. 

24 7629(b)) is amended by striking ‘‘2007’’ and inserting 

25 ‘‘2012’’. 
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1 SEC. 7408. GRANTS FOR YOUTH ORGANIZATIONS. 

2 Section 410 of the Agricultural Research, Extension, 

3 and Education Reform Act of 1998 (7 U.S.C. 7630) is 

4 amended by striking subsections (b) and (c) and inserting 

5 the following: 

6 ‘‘(b) FLEXIBILITY.—The Secretary shall provide 

7 maximum flexibility in content delivery to each organiza8 tion receiving funds under this section so as to ensure that 

9 the unique goals of each organization, as well as the local 

10 community needs are fully met. 

11 ‘‘(c) REDISTRIBUTION OF FUNDING WITHIN ORGA12 NIZATIONS AUTHORIZED.—Recipients of funds under this 

13 section are authorized to redistribute all or part of the 

14 funds received to individual councils or local chapters 

15 within such organization without further need of approval 

16 from the Secretary. 

17 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

18 are authorized to be appropriated to carry out this section 

19 such sums as are necessary for each of fiscal years 2008 

20 through 2012.’’. 

21 SEC. 7409. AGRICULTURAL BIOTECHNOLOGY RESEARCH 

22 AND DEVELOPMENT FOR DEVELOPING COUN23 TRIES. 

24 Section 411(c) of the Agricultural Research, Exten25 sion, and Education Reform Act of 1998 (7 U.S.C. 
548 

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1 7631(c)) is amended by striking ‘‘2007’’ and inserting 

2 ‘‘2012’’. 

3 SEC. 7410. AGRICULTURAL BIOENERGY AND BIOBASED 

4 PRODUCTS RESEARCH INITIATIVE. 

5 Title IV of the Agricultural Research, Extension, and 

6 Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) 

7 is amended by adding at the end the following: 

8 ‘‘SEC. 412. AGRICULTURAL BIOENERGY AND BIOBASED 

9 PRODUCTS RESEARCH INITIATIVE. 

10 ‘‘(a) DEFINITION.—For the purposes of this section, 

11 the term ‘Initiative’ means the agricultural bioenergy and 

12 biobased products research initiative established by sub13 section (b). 

14 ‘‘(b) ESTABLISHMENT.—There is established within 

15 the Department a bioenergy and biobased products re16 search initiative to enhance the production, sustainability, 

17 and conversion of biomass to renewable fuels and related 

18 products. 

19 ‘‘(c) LABORATORY NETWORK.— 

20 ‘‘(1) IN GENERAL.—The Secretary shall carry 

21 out the Initiative through a bioenergy and biobased 

22 product laboratory network that may consist of— 

23 ‘‘(A) Federal agencies; 

24 ‘‘(B) national laboratories; 

25 ‘‘(C) colleges and universities; 
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1 ‘‘(D) research institutions and organiza2 tions; 

3 ‘‘(E) private organizations or corporations; 

4 ‘‘(F) State agricultural experiment sta5 tions; and 

6 ‘‘(G) individuals. 

7 ‘‘(2) RESEARCH AND DEVELOPMENT OBJEC8 TIVES.—The laboratory network shall focus on im9 proving biomass production and sustainability, and 

10 improving biomass conversion in biorefineries, by— 

11 ‘‘(A) leveraging the broad scientific capa12 bilities of the Department in— 

13 ‘‘(i) plant genetics and breeding; 

14 ‘‘(ii) crop production; 

15 ‘‘(iii) soil and water science; 

16 ‘‘(iv) use of agricultural waste; 

17 ‘‘(v) carbohydrate, lipid, protein, and 

18 lignin chemistry and biochemistry; 

19 ‘‘(vi) enzyme development; 

20 ‘‘(vii) fermentation; 

21 ‘‘(viii) microbiology; 

22 ‘‘(ix) cellulosic gasification; and 

23 ‘‘(x) ethanol by-product utilization. 

24 ‘‘(B) supporting bioenergy and biobased 

25 product research that will enhance the produc-
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1 tion, sustainability, and conversion of biomass 

2 to renewable fuels and related products; and 

3 ‘‘(C) supporting bioenergy and biobased 

4 product research, and the dissemination of that 

5 research, that will assist in achieving the goals 

6 of this section. 

7 ‘‘(d) COORDINATION.—In carrying out the Initiative, 

8 the Secretary shall ensure that the Director of the applica9 ble Program office established under section 7104(a)(1) 

10 shall coordinate projects and activities carried out under 

11 the Initiative with projects and activities under the Bio12 mass Research and Development Act of 2000 (7 U.S.C. 

13 8601 et seq) to ensure, to the maximum extent prac14 ticable, that— 

15 ‘‘(1) duplication of effort is eliminated or mini16 mized; and 

17 ‘‘(2) the respective strengths of the Department 

18 and the Department of Energy are maximized. 

19 ‘‘(e) RESEARCH PROJECTS.—In carrying out this 

20 section, the Secretary shall award grants on a competitive 

21 basis. 

22 ‘‘(f) ADMINISTRATION.— 

23 ‘‘(1) IN GENERAL.—For grants awarded under 

24 subsection (e)(2), the Secretary shall— 

25 ‘‘(A) seek and accept proposals for grants; 
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1 ‘‘(B) determine the relevance and merit of 

2 proposals through a system of peer review in 

3 accordance with section 103 of the Agricultural 

4 Research, Extension, and Education Reform 

5 Act of 1998 (7 U.S.C. 7613); and 

6 ‘‘(C) award grants on the basis of merit, 

7 quality, and relevance. 

8 ‘‘(2) TERM.—A grant under this section shall 

9 have a term that does not exceed 5 years. 

10 ‘‘(3) OTHER CONDITIONS.—The Secretary may 

11 set such other conditions on the award of a grant 

12 under this section as the Secretary determines ap13 propriate. 

14 ‘‘(g) BUILDINGS AND FACILITIES.—Funds made 

15 available under this section shall not be used for the con16 struction of a new building or facility or the acquisition, 

17 expansion, remodeling, or alteration of an existing build18 ing or facility (including site grading and improvement 

19 and architect fees). 

20 ‘‘(h) FUNDING.—There is authorized to be appro21 priated $50,000,000 for each of fiscal years 2008 through 

22 2012 to carry out this section.’’. 

23 SEC. 7411. SPECIALTY CROP RESEARCH INITIATIVE. 

24 (a) IN GENERAL.—Title IV of the Agricultural Re25 search, Extension, and Education Reform Act of 1998 (7 
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1 U.S.C. 7621 et seq.), as amended by section 7410, is fur2 ther amended by adding at the end the following: 

3 ‘‘SEC. 413. SPECIALTY CROP RESEARCH INITIATIVE. 

4 ‘‘(a) DEFINITIONS.—In this section: 

5 ‘‘(1) INITIATIVE.—The term ‘Initiative’ means 

6 the specialty crop research initiative established by 

7 subsection (b). 

8 ‘‘(2) SPECIALTY CROP.—The term ‘specialty 

9 crop’ shall have the meaning given that term in sec10 tion 3(1) of the Specialty Crops Competitiveness Act 

11 of 2004 (7 U.S.C. 1621 note). 

12 ‘‘(b) ESTABLISHMENT.—There is established within 

13 the Department a specialty crop research initiative to ad14 dress the critical needs of the specialty crop industry by 

15 developing and disseminating science-based tools to ad16 dress needs of specific crops and their regions, including— 

17 ‘‘(1) research in— 

18 ‘‘(A) plant breeding, genetics, and 

19 genomics to improve crop characteristics, such 

20 as— 

21 ‘‘(i) product appearance; 

22 ‘‘(ii) environmental responses and tol23 erances; 

24 ‘‘(iii) nutrient management; 
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1 ‘‘(iv) pest and disease management; 

2 and 

3 ‘‘(v) enhanced phytonutrient content; 

4 ‘‘(B) safety; 

5 ‘‘(C) quality; 

6 ‘‘(D) yield; 

7 ‘‘(E) taste; 

8 ‘‘(F) shelf life; 

9 ‘‘(G) policy and marketing; and 

10 ‘‘(H) specialty crop pollination; 

11 ‘‘(2) efforts to identify and address threats 

12 from invasive species; 

13 ‘‘(3) efforts to improve agricultural production 

14 by developing more technologically efficient and ef15 fective applications of water, nutrients, and pes16 ticides; 

17 ‘‘(4) new innovations and technology, such as 

18 enhancing mechanization and reducing reliance on 

19 labor; and 

20 ‘‘(5) production efficiency, productivity, profit21 ability and marketing. 

22 ‘‘(c) ELIGIBLE ENTITIES.—The Secretary may carry 

23 out the Initiative through— 

24 ‘‘(1) Federal agencies; 

25 ‘‘(2) national laboratories; 
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1 ‘‘(3) colleges and universities; 

2 ‘‘(4) research institutions and organizations; 

3 ‘‘(5) private organizations or corporations; 

4 ‘‘(6) State agricultural experiment stations; and 

5 ‘‘(7) individuals. 

6 ‘‘(d) RESEARCH PROJECTS.—In carrying out this 

7 section, the Secretary shall award grants on a competitive 

8 basis. 

9 ‘‘(e) ADMINISTRATION.— 

10 ‘‘(1) IN GENERAL.—For grants awarded under 

11 subsection (d) the Secretary shall— 

12 ‘‘(A) seek and accept proposals for grants; 

13 ‘‘(B) determine the relevance and merit of 

14 proposals through a system of peer review in 

15 accordance with section 103; and 

16 ‘‘(C) award grants on the basis of merit, 

17 quality, and relevance. 

18 ‘‘(2) TERM.—A grant under this section shall 

19 have a term that does not exceed 5 years. 

20 ‘‘(3) OTHER CONDITIONS.—The Secretary may 

21 set such other conditions on the award of a grant 

22 under this section as the Secretary determines ap23 propriate. 

24 ‘‘(f) BUILDINGS AND FACILITIES.—Funds made 

25 available under this section shall not be used for the con-
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1 struction of a new building or facility or the acquisition, 

2 expansion remodeling, or alteration of an existing building 

3 or facility (including site grading and improvement and 

4 architect fees). 

5 ‘‘(g) FUNDING.—There is authorized to be appro6 priated $100,000,000 for each of fiscal years 2008 

7 through 2012 to carry out this section. 

8 ‘‘(h) ADDITIONAL FUNDING.—In addition to funds 

9 made available under subsection (g), of the funds of the 

10 Commodity Credit Corporation, the Secretary shall make 

11 available to carry out this section a total of $215,000,000 

12 for fiscal years 2008 through 2012.’’. 

13 (b) COORDINATION.— In carrying out this section, 

14 the Secretary shall ensure that the Director of the applica15 ble Program Office established under section 7104(a) co16 ordinates projects and activities carried out under this sec17 tion to ensure, to the maximum extent practicable, that 

18 duplication of effort is eliminated or minimized. 

19 SEC. 7412. OFFICE OF PEST MANAGEMENT POLICY. 

20 Section 614(f) of the Agricultural Research, Exten21 sion, and Education Reform Act of 1998 (7 U.S.C. 

22 7653(f)) is amended by striking ‘‘2007’’ and inserting 

23 ‘‘2012’’. 
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1 Subtitle E—Other Laws 

2 SEC. 7501. CRITICAL AGRICULTURAL MATERIALS ACT. 

3 Section 16(a) of the Critical Agricultural Materials 

4 Act (7 U.S.C. 178n(a)) is amended by striking ‘‘2007’’ 

5 and inserting ‘‘2012’’. 

6 SEC. 7502. EQUITY IN EDUCATIONAL LAND-GRANT STATUS 

7 ACT OF 1994. 

8 (a) ENDOWMENT FOR 1994 INSTITUTIONS.—Section 

9 533(b) of the Equity in Educational Land-Grant Status 

10 Act of 1994 (7 U.S.C. 301 note; Public Law 103–382) 

11 is amended in the first sentence by striking ‘‘2007’’ and 

12 inserting ‘‘2012’’. 

13 (b) INSTITUTIONAL CAPACITY BUILDING GRANTS.— 

14 Section 535 of the Equity in Educational Land-Grant Sta15 tus Act of 1994 (7 U.S.C. 301 note; Public Law 103– 

16 382) is amended by striking ‘‘2007’’ each place it appears 

17 and inserting ‘‘2012’’. 

18 (c) RESEARCH GRANTS.—Section 536(c) of the Eq19 uity in Educational Land-Grant Status Act of 1994 (7 

20 U.S.C. 301 note; Public Law 103–382) is amended in the 

21 first sentence by striking ‘‘2007’’ and inserting ‘‘2012’’. 
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1 SEC. 7503. AGRICULTURAL EXPERIMENT STATION RE2 SEARCH FACILITIES ACT. 

3 Section 6(a) of the Research Facilities Act (7 U.S.C. 

4 390d(a)) is amended by striking ‘‘2007’’ and inserting 

5 ‘‘2012’’. 

6 SEC. 7504. NATIONAL AGRICULTURAL RESEARCH, EXTEN7 SION, AND TEACHING POLICY ACT AMEND8 MENTS OF 1985. 

9 Section 1431 of the National Agricultural Research, 

10 Extension, and Teaching Policy Act Amendments of 1985 

11 (Public Law 99–198; 99 Stat. 1556) is amended by strik12 ing ‘‘2007’’ and inserting ‘‘2012’’. 

13 SEC. 7505. COMPETITIVE, SPECIAL, AND FACILITIES RE14 SEARCH GRANT ACT (NATIONAL RESEARCH 

15 INITIATIVE). 

16 Section 2 of the Competitive, Special, and Facilities 

17 Research Grant Act (7 U.S.C. 450i) is amended— 

18 (1) in subsection (b)(10), by striking ‘‘2007’’ 

19 and inserting ‘‘2012’’; and 

20 (2) by striking subsection (g). 

21 SEC. 7506. AGRICULTURAL RISK PROTECTION ACT OF 2000 

22 (CARBON CYCLE RESEARCH). 

23 Section 221(g) of the Agricultural Risk Protection 

24 Act of 2000 (7 U.S.C. 6711(g)) is amended by striking 

25 ‘‘2007’’ and inserting ‘‘2012’’. 
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1 SEC. 7507. RENEWABLE RESOURCES EXTENSION ACT OF 

2 1978. 

3 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

4 6 of the Renewable Resources Extension Act of 1978 (16 

5 U.S.C. 1675) is amended by striking ‘‘2007’’ and insert6 ing ‘‘2012’’. 

7 (b) TERMINATION DATE.—Section 8 of the Renew8 able Resources Extension Act of 1978 (16 U.S.C. 1671 

9 note; Public Law 95–306) is amended by striking ‘‘2007’’ 

10 and inserting ‘‘2012’’. 

11 SEC. 7508. NATIONAL AQUACULTURE ACT OF 1980. 

12 Section 10 of the National Aquaculture Act of 1980 

13 (16 U.S.C. 2809) is amended by striking ‘‘2007’’ each 

14 place it appears and inserting ‘‘2012’’. 

15 SEC. 7509. CONSTRUCTION OF A CHINESE GARDEN AT THE 

16 NATIONAL ARBORETUM. 

17 The Act of March 4, 1927 (20 U.S.C. 191 et seq.), 

18 is amended by adding at the end the following: 

19 ‘‘SEC. 197. CONSTRUCTION OF A CHINESE GARDEN AT THE 

20 NATIONAL ARBORETUM. 

21 ‘‘A Chinese Garden may be constructed at the Na22 tional Arboretum established under this Act with— 

23 ‘‘(1) funds accepted under the provisions of sec24 tion 195 (20 U.S.C. 195); 

25 ‘‘(2) authorities provided to the Secretary of 

26 Agriculture under section 196 (20 U.S.C. 196); and 
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1 ‘‘(3) appropriations provided for this purpose.’’. 

2 SEC. 7510. PUBLIC EDUCATION REGARDING USE OF BIO3 TECHNOLOGY IN PRODUCING FOOD FOR 

4 HUMAN CONSUMPTION. 

5 Section 10802(b) of the Farm Security and Rural In6 vestment Act of 2002 (7 U.S.C. 5921a(b))is amended by 

7 striking ‘‘2007’’ and inserting ‘‘2012’’. 

8 SEC. 7511. FRESH CUT PRODUCE SAFETY GRANTS. 

9 (a) IN GENERAL.—The Secretary may award com10 petitive research and extension grants to eligible entities 

11 to enable such entities to design, implement, and evaluate 

12 innovative, cost-effective programs to improve and en13 hance the safety of fresh cut produce. 

14 (b) ELIGIBLE ENTITIES.—To be eligible to receive a 

15 grant under subsection (a) an entity shall— 

16 (1) be a university, college, or other entity des17 ignated by the Secretary; and 

18 (2) have developed partnerships with producers 

19 of fresh cut produce. 

20 (c) USE OF FUNDS.—An entity shall use funds re21 ceived under a grant under this section to— 

22 (1) improve sanitation and food safety practices 

23 in the processing of fresh cut produce; 

24 (2) develop improved techniques to monitor and 

25 inspect fresh cut produce; 
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1 (3) develop efficient, rapid and sensitive meth2 ods to detect contaminants in fresh cut produce; 

3 (4) determine the sources of contamination in 

4 fresh cut produce; 

5 (5) develop methods to reduce or destroy harm6 ful pathogens before, during, and after processing of 

7 fresh cut produce; and 

8 (6) conduct other research as determined ap9 propriate by the Secretary. 

10 (d) MATCHING FUNDS REQUIRED.—The Secretary 

11 shall require the recipient of a grant under this section 

12 to provide funds or in-kind support from non-Federal 

13 sources in an amount at least equal to the amount pro14 vided by the Federal Government. 

15 (e) COORDINATION.—In carrying out this section, the 

16 Secretary shall ensure that the Director of the applicable 

17 Program Office established under section 7104(a) coordi18 nates projects and activities carried out under this section 

19 to ensure, to the maximum extent practicable, that dupli20 cation of effort is eliminated or minimized. 

21 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated such sums as are nec23 essary to carry out this section for each of fiscal years 

24 2008 through 2012. 
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1 (g) ADDITIONAL FUNDING.—In addition to funds 

2 made available under subsection (f), of the funds of the 

3 Commodity Credit Corporation, the Secretary shall make 

4 available to carry out this section a total of $25,000,000 

5 for fiscal years 2008 through 2012. 

6 SEC. 7512. UDC/EFNEP ELIGIBILITY. 

7 Section 208 of the District of Columbia Public Post8 secondary Education Reorganization Act (Public Law 93– 

9 471) is amended— 

10 (1) in subsection (b)(2), by striking ‘‘, except’’ 

11 and all that follows through the period and inserting 

12 a period; 

13 (2) in subsection (c), by striking ‘‘section 3’’ 

14 each place it appears and inserting ‘‘section 3(c)’’; 

15 and 

16 (3) in subsection (c), by striking ‘‘such sums 

17 may be used to pay’’ and all that follows through 

18 ‘‘work.’’. 

19 SEC. 7513. HATCH ACT OF 1987. 

20 Section 3(d)(4) of the Hatch Act of 1887 (7 U.S.C. 

21 351c(d)(4)) is amended— 

22 (1) in the paragraph heading, by inserting 

23 ‘‘AND THE DISTRICT OF COLUMBIA’’ after ‘‘AREAS’’; 

24 (2) in subparagraph (A), by inserting ‘‘ and the 

25 District of Columbia’’ after ‘‘United States’’; 
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1 (3) in subparagraph (A), by inserting ‘‘and the 

2 District of Columbia’’ after ‘‘respectively,’’; and 

3 (4) in subparagraph (B), by inserting ‘‘or the 

4 District of Columbia’’ after ‘‘area’’. 

5 Subtitle F—Additional Provisions 

6 SEC. 7601. MERIT REVIEW OF EXTENSION AND EDU7 CATIONAL GRANTS. 

8 Section 103 of the Agricultural Research, Extension, 

9 and Education Reform Act of 1998 (7 U.S.C. 7613) is 

10 amended in subsection (a)(2)(A), by striking ‘‘Cooperative 

11 State Research, Education, and Extension Service of the 

12 Department’’ and inserting ‘‘the National Institute for 

13 Food and Agriculture.’’. 

14 SEC. 7602. REVIEW OF PLAN OF WORK REQUIREMENTS. 

15 (a) REVIEW.—The Secretary shall work with univer16 sity partners in extension and research to review and iden17 tify measures to streamline the submission, reporting 

18 under, and implementation of plan of work requirements 

19 including those under— 

20 (1) section 1444(d) and 1445(c) of the National 

21 Agricultural Research, Extension, and Teaching Pol22 icy Act of 1977 (7 U.S.C. 3221(d) and 3222(c), re23 spectively); 

24 (2) section 7 of the Hatch Act of 1887 (7 

25 U.S.C. 361g); and 
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1 (3) section 4 of the Smith-Lever Act (7 U.S.C. 

2 344). 

3 (b) REPORT.—Not later than 180 days after the date 

4 of the enactment of this Act, the Secretary shall provide 

5 to the Committee on Agriculture of the House of Rep6 resentatives and the Committee on Agriculture, Nutrition, 

7 and Forestry of the Senate a report regarding the review 

8 carried out under subsection (a). The report shall include 

9 recommendations— 

10 (1) to reduce the administrative burden and 

11 workload upon institutions associated with plan of 

12 work compliance while meeting Department report13 ing needs for inputs, outputs, and outcome indica14 tors; 

15 (2) to streamline the submission and reporting 

16 requirements of the plan of work such that it is of 

17 practical utility to both the department and the in18 stitution; and 

19 (3) for any legislative changes necessary to 

20 carry out the plan of work improvements. 

21 (c) CONSULTATION.—In carrying out the review and 

22 formulating and compiling the recommendations, the Sec23 retary shall consult with the land grant institutions. 
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1 SEC. 7603. MULTISTATE AND INTEGRATION FUNDING. 

2 (a) FUNDS EXPENDED ON INTEGRATION OF RE3 SEARCH AND EXTENSION.—Section 3 of the Hatch Act 

4 of 1887 (7 U.S.C. 361c) is amended— 

5 (1) in subsection (i)(2)(B), by striking ‘‘the 

6 lesser of’’ and inserting ‘‘25 percent’’; and 

7 (2) by striking clauses (i) and (ii). 

8 (b) FUNDS EXPENDED ON MULTISTATE COOPERA9 TIVE EXTENSION ACTIVITIES.—Section 3 of the Smith 

10 Lever Act (7 U.S.C. 343) is amended— 

11 (1) in subsection (h)(2)(B), by striking ‘‘the 

12 lesser of’’ and inserting ‘‘25 percent’’; and 

13 (2) by striking clauses (i) and (ii). 

14 SEC. 7604. EXPANDED FOOD AND NUTRITION EDUCATION 

15 PROGRAM. 

16 (a) FUNDING TO 1862, 1890, AND INSULAR AREA

17 INSTITUTIONS.—Section 1425(c)(2)(B) of the National 

18 Agriculture Research, Extension, and Teaching Policy Act 

19 of 1977 (7 U.S.C. 3175(c)(2)(B)) is amended— 

20 (1) in the prefatory material, by striking 

21 ‘‘among the States’’; 

22 (2) by striking clause (i) and inserting the fol23 lowing: 

24 ‘‘(i) $100,000 shall be distributed to 

25 each of the land grant colleges and univer26 sities;’’; 
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1 (3) by redesignating clause (ii) as clause (iii); 

2 (4) by inserting after clause (i) the following: 

3 ‘‘(ii) subject to subsection (d), of the 

4 remainder, 10 percent in fiscal year 2008, 

5 11 percent in fiscal year 2009, 12 percent 

6 in fiscal year 2010, 13 percent in fiscal 

7 year 2011, 14 percent in fiscal year 2012, 

8 and 15 percent in fiscal year 2013 and 

9 each fiscal year thereafter, shall be allo10 cated to each 1890 Institution (as defined 

11 in section 2 of the Agricultural Research, 

12 Extension, and Education Reform Act of 

13 1998) in an amount that bears the same 

14 ratio to the total amount to be allocated 

15 under this clause as the population of the 

16 State living at or below 125 percent of the 

17 income poverty guidelines prescribed by the 

18 Office of Management and Budget (ad19 justed pursuant to section 673(2) of the 

20 Omnibus Budget Reconciliation Act of 

21 1981 (42 U.S.C. 9902)), bears to the total 

22 population of all the States that have 1890 

23 Institutions living at or below 125 percent 

24 of the income poverty guidelines, as deter25 mined by the last preceding decennial cen-
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1 sus at the time each such additional 

2 amount is first appropriated: Provided, 

3 That the total allocated under this clause 

4 shall not exceed: (I) the amount of the 

5 funds appropriated for the conduct of the 

6 expanded food and nutrition education pro7 gram for the fiscal year that are in excess 

8 of the amount appropriated for the con9 duct of the program for the fiscal year 

10 ending September 30, 2007, reduced by 

11 (II) any amounts expended pursuant to 

12 any adjustment under subsection (d); 

13 and’’; and 

14 (5) by amending clause (iii), as redesignated— 

15 (A) by striking ‘‘allocated to each State’’ 

16 and inserting ‘‘allocated to the institution eligi17 ble to receive funds under the Act of July 2, 

18 1862 (and including the appropriate insular 

19 area institution) in each State (and the Univer20 sity of the District of Columbia, notwith21 standing section 208(c) of Public Law 93– 

22 471)’’; and 

23 (B) by striking ‘‘subparagraph.’’ and in24 serting ‘‘subparagraph: Provided, That the total 

25 allocated under this clause to the University of 
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1 the District of Columbia shall not exceed: (I) 

2 the amount described in the proviso to clause 

3 (ii), reduced further by (II) the amount allo4 cated under clause (ii).’’. 

5 (b) AUTHORIZATION.—Section 1425(c)(3) of the Na6 tional Agriculture Research, Extension, and Teaching Pol7 icy Act of 1977 (7 U.S.C. 3175(c)(3)) is amended by 

8 striking ‘‘$83,000,000 for each of fiscal years 1996 

9 though 2007’’ and inserting ‘‘$90,000,000 for each of fis10 cal years 2008 through 2014’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section take effect on October 1, 2007. 

13 SEC. 7605. GRANTS TO 1890 SCHOOLS TO EXPAND EXTEN14 SION CAPACITY. 

15 Section 1417(b)(4) of the National Agricultural Re16 search, Extension, and Teaching Policy Act of 1977 (7 

17 U.S.C. 3152(b)(4)) is amended by striking ‘‘teaching and 

18 research’’ and inserting ‘‘teaching, research, and exten19 sion’’. 

20 SEC. 7606. BORLAUG INTERNATIONAL AGRICULTURAL 

21 SCIENCE AND TECHNOLOGY FELLOWSHIP 

22 PROGRAM. 

23 (a) ESTABLISHMENT.— 

24 (1) IN GENERAL.—The Secretary of Agriculture 

25 shall establish a fellowship program to be known as 
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1 the ‘‘Borlaug International Agricultural Science and 

2 Technology Fellowship Program,’’ to provide fellow3 ships for scientific training to individuals from eligi4 ble countries (as described under subsection (b)) 

5 who specialize in agricultural education, research, 

6 and extension for study in the United States. 

7 (2) PROGRAMS.—The Secretary shall carry out 

8 the program established under paragraph (1) 

9 through 3 programs designed to assist individual fel10 lowship recipients as follows: 

11 (A) A Graduate Studies Program in Agri12 culture to assist individuals who participate in 

13 graduate agricultural degree training at a 

14 United States institution. 

15 (B) An Individual Career Improvement 

16 Program to assist agricultural scientists from 

17 developing countries to upgrade skills and un18 derstanding in agricultural science and tech19 nology. 

20 (C) The Borlaug Agricultural Policy Exec21 utive Leadership Course to assist senior agri22 cultural policy makers from eligible countries 

23 with an initial focus on sub-Saharan Africa and 

24 from the newly independent states of the former 

25 Soviet Union. 
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1 (b) ELIGIBLE COUNTRIES.—Developing countries, as 

2 determined by the Secretary using a gross national income 

3 per capita test, shall be eligible to participate in the pro4 gram established under this section. 

5 (c) PURPOSE OF FELLOWSHIPS.—Fellowships under 

6 this section shall promote food security and economic 

7 growth in eligible countries by educating a new generation 

8 of agricultural scientists, increasing scientific knowledge 

9 and collaborative research to improve agricultural produc10 tivity, and extending this knowledge to users and their 

11 intermediaries in the market place. Fellowships shall sup12 port— 

13 (1) training and collaborative research opportu14 nities through exchanges for entry-level international 

15 agricultural research scientists, faculty, and policy16 makers from eligible countries; 

17 (2) collaborative research to improve agricul18 tural productivity; 

19 (3) the transfer of new science and agricultural 

20 technologies to strengthen agricultural practice; and 

21 (4) the reduction of barriers to technology 

22 adoption. 

23 (d) FELLOWSHIP RECIPIENTS.— 

24 (1) ELIGIBLE CANDIDATES.—The Secretary 

25 may provide fellowships under the program author-
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1 ized by this section to individuals from eligible coun2 tries who specialize in or have experience in agricul3 tural education, research, extension, or related fields, 

4 including individuals from the public and private 

5 sectors, and private agricultural producers. 

6 (2) CANDIDATE IDENTIFICATION.—The Sec7 retary shall utilize the expertise of United States 

8 land-grant and similar universities, international or9 ganizations working in agricultural research and 

10 outreach, and national agricultural research organi11 zations to help identify program candidates for fel12 lowships under this section from both the public and 

13 private sectors of eligible countries. 

14 (e) USE OF FELLOWSHIPS.—Fellowships shall pro15 mote collaborative programs between agricultural profes16 sionals of eligible countries with those of the United States 

17 and the international agricultural research system and, as 

18 appropriate, with United States entities conducting re19 search. They will be used to support fellowship recipients 

20 through the Graduate Studies Program in Agriculture es21 tablished under subsection (a)(2)(A). 

22 (f) PROGRAM IMPLEMENTATION.—The Secretary 

23 shall provide for the management, coordination, evaluation 

24 and monitoring of the overall Borlaug International Agri25 cultural Science and Technology Fellowship Program and 
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1 for the individual programs described in subsection (a)(2), 

2 except that the Secretary may contract out to one or more 

3 collaborating universities the management of one or more 

4 of the fellowship programs. 

5 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated without fiscal year limi7 tation such sums as may be necessary to carry out the 

8 program established under this section. 

9 SEC. 7607. COST RECOVERY. 

10 Section 1473A of the National Agricultural Research, 

11 Extension, and Teaching Policy Act of 1977 (7 U.S.C. 

12 3319a) is amended by striking ‘‘not exceeding 10 percent 

13 of the direct cost’’ and inserting ‘‘not exceeding 19 percent 

14 of the direct cost’’. 

15 SEC. 7608. ORGANIC FOOD AND AGRICULTURAL SYSTEMS 

16 FUNDING. 

17 It is the sense of Congress that the Secretary of Agri18 culture should use a share of Agricultural Research Serv19 ice’s total annual funding for research specific to organic 

20 food and agricultural systems that is at least commensu21 rate with the organic sector’s market, in order to facilitate 

22 the development of this growing sector. A portion of 

23 these funds should be used to disseminate research results 

24 through the National Agriculture Library’s Alternative 

25 Farming Systems Information Center. 
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1 TITLE VIII—FORESTRY 

Subtitle A—Cooperative Forestry Assistance Act of 1978 

Sec. 8001. National priorities for private forest conservation. 

Sec. 8002. Long-term, State-wide assessments and strategies for forest resources. 

Sec. 8003. Assistance to the Federated States of Micronesia, the Republic of 

the Marshall Islands, and the Republic of Palau. 

Sec. 8004. Changes to Forest Resource Coordinating Committee. 

Sec. 8005. Changes to State Forest Stewardship Coordinating Committees. 

Sec. 8006. Competition in programs under Cooperative Forestry Assistance Act 

of 1978. 

Sec. 8007. Cooperative forest innovation partnership projects. 

Subtitle B—Amendments to Other Laws 

Sec. 8101. Healthy forest reserve program. 

Sec. 8102. Emergency forest restoration program. 

Sec. 8103. Office of International Forestry. 

Sec. 8104. Rural revitalization technologies. 

Subtitle C—Miscellaneous Provisions 

Sec. 8201. Hispanic-serving institution agricultural land national resources 

leadership program. 

2 Subtitle A—Cooperative Forestry 

3 Assistance Act of 1978 

4 SEC. 8001. NATIONAL PRIORITIES FOR PRIVATE FOREST 

5 CONSERVATION. 

6 Section 2 of the Cooperative Forestry Assistance Act 

7 of 1978 (16 U.S.C. 2101) is amended— 

8 (1) by redesignating subsections (c) and (d) as 

9 subsections (e) and (f), respectively; and 

10 (2) by inserting after subsection (b) the fol11 lowing new subsections: 

12 ‘‘(c) PRIORITIES.—In allocating funds appropriated 

13 or otherwise made available under this Act, the Secretary 

14 shall focus on the following national private forest con-
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•HR 2419 EH1S 

1 servation priorities, notwithstanding other priorities speci2 fied elsewhere in this Act: 

3 ‘‘(1) Conserving and managing working forest 

4 landscapes for multiple values and uses. 

5 ‘‘(2) Protecting forests from threats, including 

6 wildfire, hurricane, tornado, windstorm, snow or ice 

7 storm, flooding, drought, invasive species, or insect 

8 or disease outbreak, and restoring appropriate forest 

9 types in response to such threats. 

10 ‘‘(3) Enhancing public benefits from private 

11 forests, including air and water quality, soil con12 servation, biological diversity, carbon storage, forest 

13 products, forestry-related jobs, production of renew14 able energy, wildlife and wildlife habitat, and recre15 ation. 

16 ‘‘(d) REPORTING REQUIREMENT.—Not later than 

17 September 30, 2011, the Secretary shall submit to Con18 gress a report describing how funding was used under this 

19 Act and through other programs administered by the Sec20 retary to address the national priorities specified in sub21 section (c) and the outcomes achieved in meeting the na22 tional priorities.’’. 
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1 SEC. 8002. LONG-TERM, STATE-WIDE ASSESSMENTS AND 

2 STRATEGIES FOR FOREST RESOURCES. 

3 The Cooperative Forestry Assistance Act of 1978 is 

4 amended by inserting after section 2 (16 U.S.C. 2101) 

5 the following new section: 

6 ‘‘SEC. 2A. STATE-WIDE ASSESSMENT AND STRATEGIES FOR 

7 FOREST RESOURCES. 

8 ‘‘(a) ASSESSMENT AND STRATEGIES FOR FOREST

9 RESOURCES.—For a State to be eligible to receive funds 

10 under the authorities of this Act, the State forester of the 

11 State or equivalent State official shall develop and submit 

12 to the Secretary, not later than two years after the date 

13 of the enactment of the Farm, Nutrition, and Bioenergy 

14 Act of 2007, the following: 

15 ‘‘(1) A State-wide assessment of forest resource 

16 conditions, including— 

17 ‘‘(A) the conditions and trends of forest re18 sources in that State; 

19 ‘‘(B) the threats to forest lands and re20 sources in that State consistent with the na21 tional priorities specified in section 2(c); 

22 ‘‘(C) any areas or regions of that State 

23 that are of priority; and 

24 ‘‘(D) any areas, known as multi-State 

25 areas, that are of priority to more than just 

26 that State. 
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1 ‘‘(2) A State-wide forest resource strategy, in2 cluding— 

3 ‘‘(A) strategies for addressing threats to 

4 forest resources in the State outlined in the as5 sessment required by paragraph (1); and 

6 ‘‘(B) a description of the resources avail7 able to the State forester or equivalent State of8 ficial from all sources to address the State-wide 

9 strategy required by subparagraph (A). 

10 ‘‘(b) UPDATING.—The State forester or equivalent 

11 State official shall submit the State-wide strategy required 

12 by subsection (a)(2) on an annual basis. The State-wide 

13 assessment of forest resource conditions required by sub14 section (a)(1) shall be updated as the Secretary or State 

15 Forester or equivalent State official determines to be nec16 essary. 

17 ‘‘(c) COORDINATION.—In developing the State-wide 

18 assessment and annual strategy under subsection (a), the 

19 State forester or equivalent State official shall coordinate 

20 with— 

21 ‘‘(1) the State Forest Stewardship Coordinating 

22 Committee established for the State under section 

23 19(b); 
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1 ‘‘(2) the State wildlife agency to incorporate 

2 any overlapping priorities included in State wildlife 

3 action plans; and 

4 ‘‘(3) the State Technical Committee. 

5 ‘‘(d) FUNDING.—Of the funds available under this 

6 Act for a fiscal year, the Secretary may not use more than 

7 $10,000,000 to implement this section for that fiscal year. 

8 Use of funds for implementing this section shall be con9 sistent with the original authorities for such funds.’’. 

10 SEC. 8003. ASSISTANCE TO THE FEDERATED STATES OF MI11 CRONESIA, THE REPUBLIC OF THE MAR12 SHALL ISLANDS, AND THE REPUBLIC OF 

13 PALAU. 

14 Section 13(d)(1) of the Cooperative Forestry Act of 

15 1978 (16 U.S.C. 2109(d)(1)) is amended by striking ‘‘the 

16 Trust Territory of the Pacific Islands,’’ and inserting ‘‘the 

17 Federated States of Micronesia, the Republic of the Mar18 shall Islands, the Republic of Palau,’’. 

19 SEC. 8004. CHANGES TO FOREST RESOURCE COORDI20 NATING COMMITTEE. 

21 Section 19 of the Cooperative Forestry Assistance 

22 Act of 1978 (16 U.S.C. 2113) is amended by striking sub23 section (a) and inserting the following new subsection: 

24 ‘‘(a) FOREST RESOURCE COORDINATING COM25 MITTEE.— 
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1 ‘‘(1) ESTABLISHMENT.—The Secretary shall es2 tablish a committee, to be known as the ‘Forest Re3 source Coordinating Committee’ (in this section re4 ferred to as the ‘Coordinating Committee’), to co5 ordinate private non-industrial forestry activities 

6 within the Department of Agriculture and with the 

7 private sector. 

8 ‘‘(2) COMPOSITION.—The Coordinating Com9 mittee shall be composed of the following: 

10 ‘‘(A) The Chief of the Forest Service. 

11 ‘‘(B) The Chief of the Natural Resources 

12 Conservation Service. 

13 ‘‘(C) The Director of the Farm Service 

14 Agency. 

15 ‘‘(D) The Administrator of the Cooperative 

16 State Research, Education, and Extension Serv17 ice. 

18 ‘‘(E) Non-Federal representatives ap19 pointed by the Secretary to 3 year terms, al20 though initial appointees shall have staggered 

21 terms, including the following persons: 

22 ‘‘(i) At least three State foresters or 

23 equivalent State officials from geographi24 cally diverse regions of the United States. 
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1 ‘‘(ii) A representative of a State fish 

2 and wildlife agency. 

3 ‘‘(iii) A private non-industrial forest 

4 landowner. 

5 ‘‘(iv) A forest industry representative. 

6 ‘‘(v) A conservation organization rep7 resentative. 

8 ‘‘(vi) A land-grant university or col9 lege representative. 

10 ‘‘(vii) A private forestry consultant. 

11 ‘‘(viii) A representative from a State 

12 Technical Committee established under 

13 section 1261 of the Food Security Act of 

14 1985 (16 U.S.C. 3861). 

15 ‘‘(ix) Such other persons as deter16 mined by the Secretary to be appropriate. 

17 ‘‘(3) CHAIRPERSON.—The Chief of the Forest 

18 Service shall serve as chairperson of the Coordi19 nating Committee. 

20 ‘‘(4) DUTIES.—The Coordinating Committee 

21 shall— 

22 ‘‘(A) provide direction and coordination of 

23 actions within the Department of Agriculture, 

24 and coordination with State agencies and the 

25 private sector, to effectively address the na-
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1 tional priorities specified in section 2(c), with 

2 specific focus on private non-industrial forest 

3 landowners; 

4 ‘‘(B) clarify individual agency responsibil5 ities of each agency represented on the Coordi6 nating Committee concerning the national pri7 orities specified in section 2(c), with specific 

8 focus on private non-industrial forested land; 

9 ‘‘(C) provide advice on the allocation of 

10 funds, including the competitive funds set-aside 

11 by sections 8006 and 8007 of the Farm, Nutri12 tion, and Bioenergy Act of 2007; and 

13 ‘‘(D) assist the Secretary in developing and 

14 reviewing the report required by section 2(d). 

15 ‘‘(5) MEETING.—The Coordinating Committee 

16 shall meet biannually to discuss progress in address17 ing the national priorities specified in section 2(c) 

18 and issues regarding non-industrial private forest 

19 land. 

20 ‘‘(6) COMPENSATION.— 

21 ‘‘(A) FEDERAL MEMBERS.—Members of 

22 the Coordinating Committee who are full-time 

23 officers or employees of the United States shall 

24 receive no additional pay, allowances, or bene25 fits by reason of their service on the Committee. 
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1 ‘‘(B) NON-FEDERAL MEMBERS.—Non-fed2 eral members of the Coordinating Committee 

3 shall serve without pay, but may be reimbursed 

4 for reasonable costs incurred while performing 

5 their duties on behalf of the Committee.’’. 

6 SEC. 8005. CHANGES TO STATE FOREST STEWARDSHIP CO7 ORDINATING COMMITTEES. 

8 Section 19(b) of the Cooperative Forestry Assistance 

9 Act of 1978 (16 U.S.C. 2113(b)) is amended— 

10 (1) in paragraph (1)(B)(ii)— 

11 (A) by striking ‘‘and’’ at the end of sub12 clause (VII); and 

13 (B) by adding at the end the following new 

14 subclause: 

15 ‘‘(IX) the State Technical Com16 mittee.’’. 

17 (2) in paragraph (2)(C), by striking ‘‘a Forest 

18 Stewardship Plan under paragraph (3)’’ and insert19 ing ‘‘the State-wide assessment and strategy regard20 ing forest resource conditions under section 2A’’; 

21 (3) by striking paragraphs (3) and (4); and 

22 (4) by redesignating paragraphs (5) and (6) as 

23 paragraphs (3) and (4), respectively. 
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1 SEC. 8006. COMPETITION IN PROGRAMS UNDER COOPERA2 TIVE FORESTRY ASSISTANCE ACT OF 1978. 

3 (a) COMPETITION.—Beginning not later than 3 years 

4 after the date of the enactment of this Act, the Secretary 

5 of Agriculture shall competitively allocate a portion, to be 

6 determined by the Secretary, of the funds available under 

7 the Cooperative Forestry Assistance Act of 1978 (16 

8 U.S.C. 2101 et seq.) to State foresters or equivalent State 

9 officials. 

10 (b) DETERMINATION.—In determining the competi11 tive allocation of funds under subsection (a), the Secretary 

12 shall consult with the Forest Resource Coordinating Com13 mittee established by section 19(a) of the Cooperative For14 estry Assistance Act of 1978 (16 U.S.C. 2113(a)). 

15 (c) PRIORITY.—The Secretary shall give priority for 

16 funding to States for which the strategies submitted under 

17 section 2A(a)(2) of the Cooperative Forestry Assistance 

18 Act of 1978 will best promote the national priorities speci19 fied in section 2(c) of such Act. 

20 SEC. 8007. COOPERATIVE FOREST INNOVATION PARTNER21 SHIP PROJECTS. 

22 (a) COOPERATIVE FOREST INNOVATION PARTNER23 SHIP PROJECTS.—The Secretary of Agriculture may com24 petitively allocate not more than 5 percent of funding 

25 available under the Cooperative Forestry Assistance Act 

26 of 1978 (16 U.S.C. 2101 et seq.) to support innovative 
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1 national, regional, or local education, outreach, or tech2 nology transfer projects that the Secretary determines 

3 would substantially increase the ability of the Department 

4 of Agriculture to address the national priorities specified 

5 in section 2(c) of such Act. 

6 (b) ELIGIBILITY.—Notwithstanding the eligibility 

7 limitations contained within the Cooperative Forestry As8 sistance Act of 1978, any State or local government, In9 dian tribe, land-grant college or university, or private enti10 ty shall be eligible for funds under subsection (a). 

11 (c) COST-SHARE REQUIREMENT.—In carrying out 

12 subsection (a), the Secretary shall not cover more than 

13 50 percent of the total cost of a project under such sub14 section. In calculating the total cost of a project and con15 tributions made with regard to the project, the Secretary 

16 shall include in-kind contributions. 

17 Subtitle B—Amendments to Other 

18 Laws 

19 SEC. 8101. HEALTHY FOREST RESERVE PROGRAM. 

20 Section 508 of the Healthy Forests Restoration Act 

21 of 2003 (16 U.S.C. 6578) is amended to read as follows: 

22 ‘‘SEC. 508. FUNDING. 

23 ‘‘Notwithstanding any other provision of law, of the 

24 funds of the Commodity Credit Corporation, the Secretary 

25 shall make available to carry out this title $10,000,000 
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1 for each of fiscal years 2008 through 2012. Such funds 

2 shall remain available until expended.’’. 

3 SEC. 8102. EMERGENCY FOREST RESTORATION PROGRAM. 

4 (a) ESTABLISHMENT.—Title IV of the Agricultural 

5 Credit Act of 1978 (16 U.S.C. 2201–2205) is amended— 

6 (1) by redesignating sections 404, 405, and 406 

7 as sections 405, 406, and 407, respectively; and 

8 (2) by inserting after section 403 the following 

9 new section: 

10 ‘‘SEC. 404. EMERGENCY FOREST RESTORATION PROGRAM. 

11 ‘‘(a) AVAILABILITY OF ASSISTANCE.—The Secretary 

12 of Agriculture is authorized to provide financial and tech13 nical assistance to an owner of non-industrial private for14 est lands to assist with developing and implementing an 

15 approved plan in accordance with subsection (c)(2). 

16 ‘‘(b) AMOUNT OF ASSISTANCE.— 

17 ‘‘(1) COST SHARE.—Payments under subsection 

18 (a) may not cover more than 75 percent of the total 

19 cost of measures implemented pursuant to an ap20 proved plan in accordance with subsection (c)(2). 

21 ‘‘(2) ANNUAL LIMIT.—An owner of non-indus22 trial private forest lands may not receive more than 

23 $50,000 per year under this section. 

24 ‘‘(c) ELIGIBILITY.—To be eligible for assistance 

25 under this section, a landowner must— 
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1 ‘‘(1) have suffered a loss of, or damage to, non2 industrial private forest land due to events, including 

3 wildfires, hurricanes, drought, windstorms, insect 

4 and disease, ice storms, or invasive species, as deter5 mined by the Secretary; and 

6 ‘‘(2) develop a plan, in cooperation with the 

7 Secretary, and agree to implement the plan during 

8 the 10-year period beginning on the date of the loss, 

9 that— 

10 ‘‘(A) provides for reforestation, rehabilita11 tion, and related measures for the non-indus12 trial private forest land; 

13 ‘‘(B) restores the land and related natural 

14 resources; 

15 ‘‘(C) uses best management practices on 

16 the forest land, in accordance with the best 

17 management practices as determined by the 

18 Secretary; and 

19 ‘‘(D) incorporates good stewardship and 

20 conservation practices on the land, while main21 taining the land in a forested state. 

22 ‘‘(d) INSECT AND DISEASE THREATS.—Notwith23 standing subsection (c)(1), non-industrial private forest 

24 lands are eligible under this section if the Secretary deter25 mines that the lands are under an imminent threat of loss 
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1 or damage by insect or disease and immediate action 

2 would help to avoid the loss or damage. 

3 ‘‘(e) NON-INDUSTRIAL PRIVATE FOREST LAND DE4 FINED.—In this section, the term ‘non-industrial private 

5 forest land’ means rural lands, as determined by the Sec6 retary, that— 

7 ‘‘(1) have existing tree cover or had tree cover 

8 within the preceding 10 years; and 

9 ‘‘(2) are owned by any non-industrial private 

10 individual, group, association, corporation, Indian 

11 tribe, or other private legal entity so long as the in12 dividual, group, association, corporation, tribe, or 

13 entity has definitive decision-making authority over 

14 the lands.’’. 

15 (b) REGULATIONS.—Not later than one year after the 

16 date of the enactment of this Act, the Secretary of Agri17 culture shall issue regulations to carry out section 404 of 

18 the Agricultural Credit Act of 1978, as added by sub19 section (a). 

20 SEC. 8103. OFFICE OF INTERNATIONAL FORESTRY. 

21 Section 2405(d) of the Global Climate Change Pre22 vention Act of 1990 (7 U.S.C. 6704(d)) is amended by 

23 striking ‘‘2007’’ and inserting ‘‘2012’’. 
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1 SEC. 8104. RURAL REVITALIZATION TECHNOLOGIES. 

2 Section 2371(d)(2) of the Food, Agriculture, Con3 servation, and Trade Act of 1990 (7 U.S.C. 6601(d)(2)) 

4 is amended by striking ‘‘2004 through 2008’’ and insert5 ing ‘‘2008 through 2012’’. 

6 Subtitle C—Miscellaneous 

7 Provisions 

8 SEC. 8201. HISPANIC-SERVING INSTITUTION AGRICUL9 TURAL LAND NATIONAL RESOURCES LEAD10 ERSHIP PROGRAM. 

11 (a) GRANT AUTHORITY.—The Secretary of Agri12 culture may make grants, on a competitive basis, to His13 panic-serving institutions for the purpose of establishing 

14 an undergraduate scholarship program to assist in the re15 cruitment, retention, and training of Hispanics and other 

16 under-represented groups in forestry and related fields. 

17 (b) USE OF GRANT FUNDS.—Grants made under this 

18 section shall be used to recruit, retain, train, and develop 

19 professionals to work in forestry and related fields with 

20 Federal agencies, such as the Forest Service, State agen21 cies, and private-sector entities. 

22 (c) DEFINITION OF HISPANIC-SERVING INSTITU23 TION.—In this section, the term ‘‘Hispanic-serving institu24 tion’’ has the meaning given that term in section 

25 502(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 

26 1101a(a)(5)). 
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1 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to the Secretary for 

3 each of fiscal years 2008 through 2012 such sums as may 

4 be necessary to carry out this section. 

5 TITLE IX—ENERGY 

Sec. 9001. Table of contents. 

Sec. 9002. Federal procurement of biobased products. 

Sec. 9003. Loan guarantees for biorefineries and biofuel production plants. 

Sec. 9004. Energy audit and renewable energy development program. 

Sec. 9005. Renewable energy systems and energy efficiency improvements. 

Sec. 9006. Biomass Research and Development Act of 2000. 

Sec. 9007. Adjustments to the bioenergy program. 

Sec. 9008. Research, extension, and educational programs on biobased energy 

technologies and products. 

Sec. 9009. Energy Council of the Department of Agriculture. 

Sec. 9010. Farm energy production pilot program. 

Sec. 9011. Rural energy self-sufficiency initiative. 

Sec. 9012. Agricultural biofuels from biomass internship pilot program. 

Sec. 9013. Feedstock flexibility program for bioenergy producers. 

Sec. 9014. Biomass inventory report. 

Sec. 9015. Future farmsteads program. 

Sec. 9016. Sense of Congress on renewable energy. 

6 SEC. 9001. TABLE OF CONTENTS. 

7 Title IX of the Farm Security and Rural Investment 

8 Act of 2002 (7 U.S.C. 8101 et seq.) is amended by insert9 ing before section 9001 the following new section: 

10 ‘‘SEC. 9000. TABLE OF CONTENTS. 

11 ‘‘The table of contents of this title is as follows: 

‘‘TITLE IX—ENERGY 

‘‘Sec. 9000. Short title; table of contents. 

‘‘Sec. 9001. Definitions. 

‘‘Sec. 9002. Federal procurement of biobased products. 

‘‘Sec. 9003. Biorefinery development grants. 

‘‘Sec. 9004. Biodiesel fuel education program. 

‘‘Sec. 9005. Energy audit and renewable energy development program. 

‘‘Sec. 9006. Rural energy for America program. 

‘‘Sec. 9007. Hydrogen and fuel cell technologies. 

‘‘Sec. 9008. Biomass Research and Development Act of 2000. 

‘‘Sec. 9009. Cooperative research and extension projects. 

‘‘Sec. 9010. Continuation of bioenergy program. 
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‘‘Sec. 9011. Research, extension, and educational programs on biobased energy 

technologies and products. 

‘‘Sec. 9012. Energy Council of the Department of Agriculture. 

‘‘Sec. 9013. Farm energy production pilot program. 

‘‘Sec. 9014. Rural energy self-sufficiency initiative. 

‘‘Sec. 9015. Agricultural Biofuels from Biomass Internship Pilot Program. 

‘‘Sec. 9016. Feedstock flexibility program for bioenergy producers.’’. 

1 SEC. 9002. FEDERAL PROCUREMENT OF BIOBASED PROD2 UCTS. 

3 (a) COMPOSITION OF BIOBASED PRODUCTS.—Sec4 tion 9002(c)(1) of the Farm Security and Rural Invest5 ment Act of 2002 (7 U.S.C. 8102(c)(1)) is amended by 

6 inserting ‘‘, composed of at least five percent of inter7 mediate ingredients and feedstocks (such as biopolymers, 

8 methyl soyate, and soy polyols) as designated by the Sec9 retary,’’ after ‘‘highest percentage of biobased products 

10 practicable’’. 

11 (b) PROCUREMENT GUIDELINE CONSIDERATIONS.— 

12 Section 9002(e)(2)(B) of the Farm Security and Rural In13 vestment Act of 2002 (7 U.S.C. 8102(e)(2)(B)) is amend14 ed by striking ‘‘life cycle costs’’ and inserting ‘‘information 

15 on life cycle costs if such information is appropriate and 

16 available’’. 

17 (c) LABELING REQUIREMENTS AND REVISED DEAD18 LINE.—Section 9002(h) of the Farm Security and Rural 

19 Investment Act of 2002 (7 U.S.C. 8102(h)) is amended— 

20 (1) in paragraph (2)— 

21 (A) by striking ‘‘Within one year after the 

22 date of enactment of this Act’’ and inserting 
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1 ‘‘Not later than 90 days after the date of enact2 ment of the (Farm, Nutrition, and Bioenergy 

3 Act of 2007),’’; and 

4 (B) by adding at the end the following: 

5 ‘‘Criteria shall be issued for finished products 

6 and intermediate ingredients and feedstocks.’’; 

7 (2) by redesignating paragraphs (3) and (4) as 

8 paragraphs (4) and (5), respectively, and inserting 

9 after paragraph (2) the following: 

10 ‘‘(3) CONSULTATION.—In developing the eligi11 bility criteria for the labeling program under this 

12 section, the Secretary shall consult with other Fed13 eral agencies and with non-governmental groups 

14 with an interest in biobased products including small 

15 and large producers of biobased materials and prod16 ucts, industry, trade organizations, academia, con17 sumer organizations, and environmental organiza18 tions.’’. 

19 (d) AUTHORIZATION OF APPROPRIATIONS.—Para20 graph (1) of section 9002(k) of the Farm Security and 

21 Rural Investment Act of 2002 (7 U.S.C. 8102(k)) is 

22 amended to read as follows: 

23 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

24 ‘‘(A) FEDERAL PROCUREMENT.—There 

25 are authorized to be appropriated $1,000,000 
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1 for each of fiscal years 2008 through 2013 to 

2 implement the provisions of this section other 

3 than subsection (h). 

4 ‘‘(B) LABELING.—There are authorized to 

5 be appropriated $1,000,000 for each of fiscal 

6 years 2008 through 2013 to implement sub7 section (h) of this section.’’. 

8 (e) REPORT REQUIREMENTS.— 

9 (1) REPORT BY AGENCIES TO ADMINISTRATOR

10 FOR FEDERAL PROCUREMENT POLICY.—Subsection 

11 (f) of section 9002 of the Farm Security and Rural 

12 Investment Act of 2002 (7 U.S.C. 8102) is amend13 ed— 

14 (A) by striking ‘‘The Office of’’ and insert15 ing ‘‘(1) The Administrator for’’; and 

16 (B) by adding at the end the following new 

17 paragraph: 

18 ‘‘(2) To assist the Administrator for Federal Pro19 curement Policy in preparing the report to Congress re20 quired under paragraph (1), each procuring agency each 

21 year shall submit to the Administrator a report covering 

22 the following: 

23 ‘‘(A) Actions taken to implement subsections 

24 (c), (d), and (g) of this section. 
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1 ‘‘(B) The results of the annual review and mon2 itoring program established under subsection 

3 (g)(2)(C). 

4 ‘‘(C) The number of contracts entered into by 

5 the agency during the year covered by the report 

6 that include the procurement of biobased products. 

7 ‘‘(D) A list of the biobased products procured 

8 by the agency during the year covered by the re9 port.’’. 

10 (2) REPORT BY SECRETARY TO CONGRESS ON

11 IMPLEMENTATION OF SECTION.—Section 9002 of 

12 the Farm Security and Rural Investment Act of 

13 2002 (7 U.S.C. 8102) is amended by adding at the 

14 end the following new subsection: 

15 ‘‘(l) REPORT BY SECRETARY TO CONGRESS ON IM16 PLEMENTATION OF SECTION.—Not later than six months 

17 after the date of the enactment of the Farm, Nutrition, 

18 and Bioenergy Act of 2007, and each year thereafter, the 

19 Secretary shall submit to Congress a report on the imple20 mentation of this section. The report shall include the fol21 lowing: 

22 ‘‘(1) A comprehensive management plan defin23 ing tasks, milestones, and funding allocations for 

24 fully implementing this section. 
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1 ‘‘(2) A list of items designated under subsection 

2 (e)(1)(A) whose procurement will carry out the ob3 jectives of this section, with associated cost and per4 formance data. 

5 ‘‘(3) Information on the current status of im6 plementation of the procurement preference under 

7 this section, including the procurement program of 

8 each Federal agency under subsection (g), and the 

9 voluntary labeling program under subsection (h).’’. 

10 (f) REPEAL OF SUBSECTION.—Subsection (b) of sec11 tion 9002 of the Farm Security and Rural Investment Act 

12 of 2002 (7 U.S.C. 8102(b)) is hereby repealed. 

13 SEC. 9003. LOAN GUARANTEES FOR BIOREFINERIES AND 

14 BIOFUEL PRODUCTION PLANTS. 

15 Section 9003 of the Farm Security and Rural Invest16 ment Act of 2002 (7 U.S.C. 8103) is amended— 

17 (1) in the section heading, by inserting ‘‘; 

18 LOAN GUARANTEES FOR BIOREFINERIES AND

19 BIOFUEL PRODUCTION PLANTS’’ after 

20 ‘‘GRANTS’’; 

21 (2) in subsection (b)(2)(A), by striking ‘‘and’’ 

22 the 1st place it appears and inserting ‘‘or’’; 

23 (3) in subsection (c), by redesignating sub24 section (h) as subsection (j) and subsections (d) 

25 through (g) as subsections (e) through (h), respec-
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1 tively, and inserting after subsection (c) the fol2 lowing: 

3 ‘‘(d) LOAN GUARANTEES.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall make 

5 loan guarantees to eligible entities to assist in pay6 ing the cost of development and construction of bio7 refineries and biofuel production plants (including 

8 retrofitting) to carry out projects to demonstrate the 

9 commercial viability of 1 or more processes for con10 verting biomass to fuels or chemicals. 

11 ‘‘(2) LIMITATIONS.— 

12 ‘‘(A) MAXIMUM PERCENTAGE OF LOAN

13 GUARANTEED.—A loan guarantee under para14 graph (1) shall be for not more than 90 percent 

15 of the principal and interest due on the loan. 

16 ‘‘(B) TOTAL AMOUNTS GUARANTEED.— 

17 The total amount of principal and interest 

18 guaranteed under paragraph (1) shall not ex19 ceed— 

20 ‘‘(i) $1,000,000,000, in the case of 

21 loans valued at not more than 

22 $100,000,000; or 

23 ‘‘(ii) $1,000,000,000, in the case of 

24 loans valued at more than $100,000,000 

25 but not more than $250,000,000. 
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1 ‘‘(C) MAXIMUM TERM OF LOAN GUARAN2 TEED.—The Secretary shall determine the max3 imum term of a loan guarantee provided under 

4 paragraph (1).’’; 

5 (4) in subsection (f) (as so redesignated)— 

6 (A) in paragraph (2)(B)— 

7 (i) by striking ‘‘and’’ at the end of 

8 clause (viii); 

9 (ii) by striking the period at the end 

10 of clause (ix) and inserting ‘‘; and’’; and 

11 (iii) by adding at the end the fol12 lowing: 

13 ‘‘(x) The level of local ownership.’’; 

14 and 

15 (B) by adding at the end the following: 

16 ‘‘(3) PRIORITY IN AWARDING LOAN GUARAN17 TEES.—In selecting projects to receive loan guaran18 tees under subsection (d), the Secretary shall give 

19 priority to projects based on the criteria set forth in 

20 paragraph (2)(B) of this subsection.’’; and 

21 (5) by inserting after subsection (h) the fol22 lowing new subsection: 

23 ‘‘(i) CONDITION OF PROVISION OF ASSISTANCE.—As 

24 a condition of receiving a grant or loan guarantee under 

25 this section, the eligible entity shall ensure that all labor-
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1 ers and mechanics employed by contractors or subcontrac2 tors in the performance of construction work financed in 

3 whole or in part with the grant or loan guarantee, as the 

4 case may be, shall be paid wages at rates not less than 

5 those prevailing on similar construction in the locality, as 

6 determined by the Secretary of Labor in accordance with 

7 sections 3141 through 3144, 3146, and 3147 of title 40, 

8 United States Code. The Secretary of Labor shall have, 

9 with respect to such labor standards, the authority and 

10 functions set forth in Reorganization Plan Numbered 14 

11 of 1950 (15 Fed. Reg. 3176; 64 Stat. 1267) and section 

12 3145 of such title.’’; 

13 (6) in subsection (j) (as so redesignated), by 

14 striking ‘‘2007’’ and inserting ‘‘2012’’; and 

15 (7) by adding at the end the following new sub16 section: 

17 ‘‘(k) ADDITIONAL FUNDING FOR LOAN GUARAN18 TEES.—Of the funds of the Commodity Credit Corpora19 tion, the Secretary shall use to carry out this section— 

20 ‘‘(1) $75,000,000 for fiscal year 2008; 

21 ‘‘(2) $100,000,000 for fiscal year 2009; 

22 ‘‘(3) $125,000,000 for fiscal year 2010; 

23 ‘‘(4) $200,000,000 for fiscal year 2011; and 

24 ‘‘(5) $300,000,000 for fiscal year 2012.’’. 
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1 (8) in paragraph (2)(B) of subsection (f) (as so 

2 redesignated)— 

3 (A) in clause (viii), by striking ‘‘and’’ at 

4 the end; 

5 (B) in clause ix, by striking ‘‘approaches.’’ 

6 and inserting ‘‘approaches; and’’; and 

7 (C) by adding at the end the following new 

8 clause: 

9 ‘‘(x) whether the impact the distribu10 tion of funds would have on existing manu11 facturing and other facilities that utilize 

12 similar feedstocks would be minimal.’’. 

13 SEC. 9004. ENERGY AUDIT AND RENEWABLE ENERGY DE14 VELOPMENT PROGRAM. 

15 Section 9005(i) of the Farm Security and Rural In16 vestment Act of 2002 (7 U.S.C. 8105) is amended by 

17 striking ‘‘2007’’ and inserting ‘‘2012’’. 

18 SEC. 9005. RENEWABLE ENERGY SYSTEMS AND ENERGY EF19 FICIENCY IMPROVEMENTS. 

20 Section 9006 of the Farm Security and Rural Invest21 ment Act of 2002 (7 U.S.C. 8106) is amended— 

22 (1) by striking the section heading and insert23 ing the following: 

24 ‘‘SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM.’’; 

25 (2) in subsection (a)— 
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1 (A) in the matter preceding paragraph (1), 

2 by inserting ‘‘, other agricultural producer’’ 

3 after ‘‘rancher’’; 

4 (B) in paragraph (1), by striking ‘‘and’’ at 

5 the end; 

6 (C) in paragraph (2), by striking the pe7 riod and inserting ‘‘; and’’; and 

8 (D) by adding at the end the following new 

9 paragraph: 

10 ‘‘(3) produce and sell electricity generated by 

11 new renewable energy systems.’’; 

12 (3) in subsection (b), by inserting ‘‘, other agri13 cultural producer’’ after ‘‘rancher’’; 

14 (4) in subsection (c)— 

15 (A) in paragraph (1)— 

16 (i) in subparagraph (B), by striking 

17 ‘‘50 percent’’ and inserting ‘‘75 percent’’; 

18 and 

19 (ii) by redesignating subparagraph 

20 (B) as subparagraph (C) and inserting 

21 after subparagraph (A) the following: 

22 ‘‘(B) LOAN GUARANTEES.— 

23 ‘‘(i) MAXIMUM AMOUNT.—The 

24 amount of a loan guaranteed under this 

25 section shall not exceed $25,000,000. 
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1 ‘‘(ii) MAXIMUM PERCENTAGE.—A loan 

2 guaranteed under this section shall not ex3 ceed 75 percent of the cost of the activity 

4 funded under subsection (a).’’; and 

5 (B) by adding at the end the following new 

6 paragraph: 

7 ‘‘(3) PRIORITIZATION.—The Secretary shall 

8 give the greatest priority for grants under subsection 

9 (a) to activities for which the least percentage of the 

10 total cost of such activities is requested by the farm11 er, rancher, other agricultural producer, or rural 

12 small business.’’. 

13 (5) by redesignating subsection (e) as sub14 section (g) and striking subsection (f); and 

15 (6) by inserting after subsection (d) the fol16 lowing new subsections: 

17 ‘‘(e) FEASIBILITY STUDIES.— 

18 ‘‘(1) IN GENERAL.—The Secretary may provide 

19 assistance to a farmer, rancher, other agricultural 

20 producer, or rural small business to conduct a feasi21 bility study of a project for which assistance may be 

22 provided under this section. 

23 ‘‘(2) LIMITATION.—The Secretary shall use not 

24 more than 10 percent of the funds made available to 
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1 carry out this section to provide assistance described 

2 in paragraph (1). 

3 ‘‘(3) CRITERIA.—The Secretary shall issue reg4 ulations establishing criteria for the receipt of assist5 ance under this subsection. 

6 ‘‘(4) AVOIDANCE OF DUPLICATIVE ASSIST7 ANCE.—An farmer, rancher, other agricultural pro8 ducer, or rural small business that receives assist9 ance to carry out a feasibility study for a project 

10 under this subsection shall not be eligible for assist11 ance to carry out a feasibility study for the project 

12 under any other provision of law. 

13 ‘‘(f) SMALL ACTIVITIES.— 

14 ‘‘(1) LIMITATION ON USE OF FUNDS.—The Sec15 retary shall use not less than 15 percent of the 

16 funds made available under subsection (h) to provide 

17 grants for activities that have a cost of $50,000 or 

18 less. 

19 ‘‘(2) EXCEPTION.—Beginning on the first day 

20 of the third quarter of a fiscal year, the limitation 

21 on the use of funds under paragraph (1) shall not 

22 apply to funds made available under subsection (h) 

23 for such fiscal year.’’. 

24 (7) by adding at the end the following new sub25 section: 
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1 ‘‘(h) FUNDING.—Of the funds of the Commodity 

2 Credit Corporation, the Secretary of Agriculture shall 

3 make available to carry out this section— 

4 ‘‘(1) $50,000,000 for fiscal year 2008; 

5 ‘‘(2) $75,000,000 for fiscal year 2009; 

6 ‘‘(3) $100,000,000 for fiscal year 2010; 

7 ‘‘(4) $125,000,000 for fiscal year 2011; and 

8 ‘‘(5) $150,000,000 for fiscal year 2012.’’. 

9 SEC. 9006. BIOMASS RESEARCH AND DEVELOPMENT ACT 

10 OF 2000. 

11 (a) RESTATEMENT OF ACT.—Section 9008 of the 

12 Farm Security and Rural Investment Act of 2002 (116 

13 Stat. 486) is amended to read as follows: 

14 ‘‘SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT ACT 

15 OF 2000. 

16 ‘‘(a) SHORT TITLE.—This section may be cited as the 

17 ‘Biomass Research and Development Act of 2000’. 

18 ‘‘(b) FINDINGS.—Congress finds that— 

19 ‘‘(1) conversion of biomass into biobased indus20 trial products offers outstanding potential for benefit 

21 to the national interest through— 

22 ‘‘(A) improved strategic security and bal23 ance of payments; 

24 ‘‘(B) healthier rural economies; 

25 ‘‘(C) improved environmental quality; 
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1 ‘‘(D) near-zero net greenhouse gas emis2 sions; 

3 ‘‘(E) technology export; and 

4 ‘‘(F) sustainable resource supply; 

5 ‘‘(2) the key technical challenges to be overcome 

6 in order for biobased industrial products to be cost7 competitive are finding new technology and reducing 

8 the cost of technology for converting biomass into 

9 desired biobased industrial products; 

10 ‘‘(3) biobased fuels have the clear potential to 

11 be sustainable, low cost, and high performance fuels 

12 that are compatible with both current and future 

13 transportation systems and provide near-zero net 

14 greenhouse gas emissions; 

15 ‘‘(4) biobased chemicals have the clear potential 

16 for environmentally benign product life cycles; 

17 ‘‘(5) biobased power can— 

18 ‘‘(A) provide environmental benefits; 

19 ‘‘(B) promote rural economic development; 

20 and 

21 ‘‘(C) diversify energy resource options; 

22 ‘‘(6) many biomass feedstocks suitable for in23 dustrial processing show the clear potential for sus24 tainable production, in some cases resulting in im25 proved soil fertility and carbon sequestration; 
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1 ‘‘(7)(A) grain processing mills are biorefineries 

2 that produce a diversity of useful food, chemical, 

3 feed, and fuel products; and 

4 ‘‘(B) technologies that result in further diver5 sification of the range of value-added biobased in6 dustrial products can meet a key need for the grain 

7 processing industry; 

8 ‘‘(8)(A) cellulosic feedstocks are attractive be9 cause of their low cost and widespread availability; 

10 and 

11 ‘‘(B) research resulting in cost-effective tech12 nology to overcome the recalcitrance of cellulosic bio13 mass would allow biorefineries to produce fuels and 

14 bulk chemicals on a very large scale, with a commen15 surately large realization of the benefit described in 

16 paragraph (1); 

17 ‘‘(9) research into the fundamentals to under18 stand important mechanisms of biomass conversion 

19 can be expected to accelerate the application and ad20 vancement of biomass processing technology by— 

21 ‘‘(A) increasing the confidence and speed 

22 with which new technologies can be scaled up; 

23 and 

24 ‘‘(B) giving rise to processing innovations 

25 based on new knowledge; 
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1 ‘‘(10) the added utility of biobased industrial 

2 products developed through improvements in proc3 essing technology would encourage the design of 

4 feedstocks that would meet future needs more effec5 tively; 

6 ‘‘(11) the creation of value-added biobased in7 dustrial products would create new jobs in construc8 tion, manufacturing, and distribution, as well as new 

9 higher-valued exports of products and technology; 

10 ‘‘(12)(A) because of the relatively short-term 

11 time horizon characteristic of private sector invest12 ments, and because many benefits of biomass proc13 essing are in the national interest, it is appropriate 

14 for the Federal Government to provide 

15 precommercial investment in fundamental research 

16 and research-driven innovation in the biomass proc17 essing area; and 

18 ‘‘(B) such an investment would provide a valu19 able complement to ongoing and past governmental 

20 support in the biomass processing area; and 

21 ‘‘(13) several prominent studies, including stud22 ies by the President’s Committee of Advisors on 

23 Science and Technology and the National Research 

24 Council— 
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1 ‘‘(A) support the potential for large re2 search-driven advances in technologies for pro3 duction of biobased industrial products as well 

4 as associated benefits; and 

5 ‘‘(B) document the need for a focused, in6 tegrated, and innovation-driven research effort 

7 to provide the appropriate progress in a timely 

8 manner. 

9 ‘‘(c) DEFINITIONS.—In this section: 

10 ‘‘(1) ADVISORY COMMITTEE.—The term ‘Advi11 sory Committee’ means the Biomass Research and 

12 Development Technical Advisory Committee estab13 lished by this section. 

14 ‘‘(2) BIOBASED FUEL.—The term ‘biobased 

15 fuel’ means any transportation or heating fuel pro16 duced from biomass. 

17 ‘‘(3) BIOBASED PRODUCT.—The term ‘biobased 

18 product’ means an industrial product (including 

19 chemicals, materials, and polymers) produced from 

20 biomass, or a commercial or industrial product (in21 cluding animal feed and electric power) derived in 

22 connection with the conversion of biomass to fuel. 

23 ‘‘(4) BIOMASS.—The term ‘biomass’ means any 

24 organic matter that is available on a renewable or 

25 recurring basis, including agricultural crops and 
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1 trees, wood and wood wastes and residues, plants 

2 (including aquatic plants), grasses, residues, fibers, 

3 and animal wastes, municipal wastes, and other 

4 waste materials. 

5 ‘‘(5) BOARD.—The term ‘Board’ means the 

6 Biomass Research and Development Board estab7 lished by this section. 

8 ‘‘(6) DEMONSTRATION.—The term ‘demonstra9 tion’ means demonstration of technology in a pilot 

10 plant or semi-works scale facility. 

11 ‘‘(7) INITIATIVE.—The term ‘Initiative’ means 

12 the Biomass Research and Development Initiative 

13 established under this section. 

14 ‘‘(8) INSTITUTION OF HIGHER EDUCATION.— 

15 The term ‘institution of higher education’ has the 

16 meaning given the term in section 102(a) of the 

17 Higher Education Act of 1965 (20 U.S.C. 1002(a)). 

18 ‘‘(9) NATIONAL LABORATORY.—The term ‘Na19 tional Laboratory’ has the meaning given that term 

20 in section 2 of the Energy Policy Act of 2005. 

21 ‘‘(10) POINT OF CONTACT.—The term ‘point of 

22 contact’ means a point of contact designated under 

23 this section. 

24 ‘‘(d) COOPERATION AND COORDINATION IN BIOMASS

25 RESEARCH AND DEVELOPMENT.— 
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1 ‘‘(1) IN GENERAL.—The Secretary of Agri2 culture and the Secretary of Energy shall cooperate 

3 with respect to, and coordinate, policies and proce4 dures that promote research and development lead5 ing to the production of biobased fuels and biobased 

6 products. 

7 ‘‘(2) POINTS OF CONTACT.— 

8 ‘‘(A) IN GENERAL.—To coordinate re9 search and development programs and activities 

10 relating to biobased fuels and biobased products 

11 that are carried out by their respective Depart12 ments— 

13 ‘‘(i) the Secretary of Agriculture shall 

14 designate, as the point of contact for the 

15 Department of Agriculture, an officer of 

16 the Department of Agriculture appointed 

17 by the President to a position in the De18 partment before the date of the designa19 tion, by and with the advice and consent of 

20 the Senate; and 

21 ‘‘(ii) the Secretary of Energy shall 

22 designate, as the point of contact for the 

23 Department of Energy, an officer of the 

24 Department of Energy appointed by the 

25 President to a position in the Department 
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1 before the date of the designation, by and 

2 with the advice and consent of the Senate. 

3 ‘‘(B) DUTIES.—The points of contact shall 

4 jointly— 

5 ‘‘(i) assist in arranging interlabora6 tory and site-specific supplemental agree7 ments for research and development 

8 projects relating to biobased fuels and 

9 biobased products; 

10 ‘‘(ii) serve as cochairpersons of the 

11 Board; 

12 ‘‘(iii) administer the Initiative; and 

13 ‘‘(iv) respond in writing to each rec14 ommendation of the Advisory Committee 

15 made under subsection (f). 

16 ‘‘(e) BIOMASS RESEARCH AND DEVELOPMENT

17 BOARD.— 

18 ‘‘(1) ESTABLISHMENT.—There is established 

19 the Biomass Research and Development Board, 

20 which shall supersede the Interagency Council on 

21 Biobased Products and Bioenergy established by Ex22 ecutive Order No. 13134, to coordinate programs 

23 within and among departments and agencies of the 

24 Federal Government for the purpose of promoting 

25 the use of biobased fuels and biobased products by— 
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1 ‘‘(A) maximizing the benefits deriving from 

2 Federal grants and assistance; and 

3 ‘‘(B) bringing coherence to Federal stra4 tegic planning. 

5 ‘‘(2) MEMBERSHIP.—The Board shall consist 

6 of— 

7 ‘‘(A) the point of contact of the Depart8 ment of Energy designated under subsection 

9 (d), who shall serve as cochairperson of the 

10 Board; 

11 ‘‘(B) the point of contact of the Depart12 ment of Agriculture designated under sub13 section (d), who shall serve as cochairperson of 

14 the Board; 

15 ‘‘(C) a senior officer of each of the Depart16 ment of the Interior, the Environmental Protec17 tion Agency, the National Science Foundation, 

18 and the Office of Science and Technology Pol19 icy, each of whom shall— 

20 ‘‘(i) be appointed by the head of the 

21 respective agency; and 

22 ‘‘(ii) have a rank that is equivalent to 

23 the rank of the points of contact; and 

24 ‘‘(D) at the option of the Secretary of Ag25 riculture and the Secretary of Energy, other 
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1 members appointed by the Secretaries (after 

2 consultation with the members described in sub3 paragraphs (A) through (C)). 

4 ‘‘(3) DUTIES.—The Board shall— 

5 ‘‘(A) coordinate research and development 

6 activities relating to biobased fuels and biobased 

7 products— 

8 ‘‘(i) between the Department of Agri9 culture and the Department of Energy; 

10 and 

11 ‘‘(ii) with other departments and 

12 agencies of the Federal Government; 

13 ‘‘(B) provide recommendations to the 

14 points of contact concerning administration of 

15 this title; 

16 ‘‘(C) ensure that— 

17 ‘‘(i) solicitations are open and com18 petitive with awards made annually; and 

19 ‘‘(ii) objectives and evaluation criteria 

20 of the solicitations are clearly stated and 

21 minimally prescriptive, with no areas of 

22 special interest; and 

23 ‘‘(D) ensure that the panel of scientific 

24 and technical peers assembled under subsection 

25 (g) to review proposals is composed predomi-
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1 nantly of independent experts selected from out2 side the Departments of Agriculture and En3 ergy. 

4 ‘‘(4) FUNDING.—Each agency represented on 

5 the Board is encouraged to provide funds for any 

6 purpose under this section. 

7 ‘‘(5) MEETINGS.—The Board shall meet at 

8 least quarterly to enable the Board to carry out the 

9 duties of the Board under paragraph (3). 

10 ‘‘(f) BIOMASS RESEARCH AND DEVELOPMENT TECH11 NICAL ADVISORY COMMITTEE.— 

12 ‘‘(1) ESTABLISHMENT.—There is established 

13 the Biomass Research and Development Technical 

14 Advisory Committee, which shall supersede the Advi15 sory Committee on Biobased Products and Bio16 energy established by Executive Order No. 13134— 

17 ‘‘(A) to advise the Secretary of Energy, the 

18 Secretary of Agriculture, and the points of con19 tact concerning— 

20 ‘‘(i) the technical focus and direction 

21 of requests for proposals issued under the 

22 Initiative; and 

23 ‘‘(ii) procedures for reviewing and 

24 evaluating the proposals; 
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•HR 2419 EH1S 

1 ‘‘(B) to facilitate consultations and part2 nerships among Federal and State agencies, ag3 ricultural producers, industry, consumers, the 

4 research community, and other interested 

5 groups to carry out program activities relating 

6 to the Initiative; and 

7 ‘‘(C) to evaluate and perform strategic 

8 planning on program activities relating to the 

9 Initiative. 

10 ‘‘(2) MEMBERSHIP.— 

11 ‘‘(A) IN GENERAL.—The Advisory Com12 mittee shall consist of— 

13 ‘‘(i) an individual affiliated with the 

14 biofuels industry; 

15 ‘‘(ii) an individual affiliated with the 

16 biobased industrial and commercial prod17 ucts industry; 

18 ‘‘(iii) an individual affiliated with an 

19 institution of higher education who has ex20 pertise in biobased fuels and biobased 

21 products; 

22 ‘‘(iv) two prominent engineers or sci23 entists from government or academia who 

24 have expertise in biobased fuels and 

25 biobased products; 
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1 ‘‘(v) an individual affiliated with a 

2 commodity trade association; 

3 ‘‘(vi) 2 individuals affiliated with an 

4 environmental or conservation organiza5 tion; 

6 ‘‘(vii) an individual associated with 

7 State government who has expertise in 

8 biobased fuels and biobased products; 

9 ‘‘(viii) an individual with expertise in 

10 energy and environmental analysis; 

11 ‘‘(ix) an individual with expertise in 

12 the economics of biobased fuels and 

13 biobased products; 

14 ‘‘(x) an individual with expertise in 

15 agricultural economics; 

16 ‘‘(xi) an individual with expertise in 

17 agronomy, crop science, or soil science; and 

18 ‘‘(xii) at the option of the points of 

19 contact, other members. 

20 ‘‘(B) APPOINTMENT.—The members of the 

21 Advisory Committee shall be appointed by the 

22 points of contact. 

23 ‘‘(3) DUTIES.—The Advisory Committee 

24 shall— 
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1 ‘‘(A) advise the points of contact with re2 spect to the Initiative; and 

3 ‘‘(B) evaluate whether, and make rec4 ommendations in writing to the Board to en5 sure that— 

6 ‘‘(i) funds authorized for the Initiative 

7 are distributed and used in a manner that 

8 is consistent with the objectives, purposes, 

9 and considerations of the Initiative; 

10 ‘‘(ii) solicitations are open and com11 petitive with awards made annually and 

12 that objectives and evaluation criteria of 

13 the solicitations are clearly stated and 

14 minimally prescriptive, with no areas of 

15 special interest; 

16 ‘‘(iii) the points of contact are funding 

17 proposals under this title that are selected 

18 on the basis of merit, as determined by an 

19 independent panel of scientific and tech20 nical peers predominantly from outside the 

21 Departments of Agriculture and Energy; 

22 and 

23 ‘‘(iv) activities under this section are 

24 carried out in accordance with this section. 
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•HR 2419 EH1S 

1 ‘‘(4) COORDINATION.—To avoid duplication of 

2 effort, the Advisory Committee shall coordinate its 

3 activities with those of other Federal advisory com4 mittees working in related areas. 

5 ‘‘(5) MEETINGS.—The Advisory Committee 

6 shall meet at least quarterly to enable the Advisory 

7 Committee to carry out the duties of the Advisory 

8 Committee. 

9 ‘‘(6) TERMS.—Members of the Advisory Com10 mittee shall be appointed for a term of 3 years, ex11 cept that— 

12 ‘‘(A) one-third of the members initially ap13 pointed shall be appointed for a term of 1 year; 

14 and 

15 ‘‘(B) one-third of the members initially ap16 pointed shall be appointed for a term of 2 

17 years. 

18 ‘‘(g) BIOMASS RESEARCH AND DEVELOPMENT INI19 TIATIVE.— 

20 ‘‘(1) IN GENERAL.—The Secretary of Agri21 culture and the Secretary of Energy, acting through 

22 their respective points of contact and in consultation 

23 with the Board, shall establish and carry out a Bio24 mass Research and Development Initiative under 

25 which competitively awarded grants, contracts, and 
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•HR 2419 EH1S 

1 financial assistance are provided to, or entered into 

2 with, eligible entities to carry out research on, and 

3 development and demonstration of, biobased fuels 

4 and biobased products, and the methods, practices 

5 and technologies, for their production. 

6 ‘‘(2) OBJECTIVES.—The objectives of the Initia7 tive are to develop— 

8 ‘‘(A) technologies and processes necessary 

9 for abundant commercial production of biobased 

10 fuels at prices competitive with fossil fuels; 

11 ‘‘(B) high-value biobased products— 

12 ‘‘(i) to enhance the economic viability 

13 of biobased fuels and power; 

14 ‘‘(ii) as substitutes for petroleum15 based feedstocks and products; and 

16 ‘‘(iii) to enhance the value of coprod17 ucts arise from such technologies and proc18 esses; and 

19 ‘‘(C) a diversity of sustainable domestic 

20 sources of biomass for conversion to biobased 

21 fuels and biobased products. 

22 ‘‘(3) PURPOSES.—The purposes of the Initiative 

23 are— 

24 ‘‘(A) to increase the energy security of the 

25 United States; 
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•HR 2419 EH1S 

1 ‘‘(B) to create jobs and enhance the eco2 nomic development of the rural economy; 

3 ‘‘(C) to enhance the environment and pub4 lic health; and 

5 ‘‘(D) to diversify markets for raw agricul6 tural and forestry products. 

7 ‘‘(4) TECHNICAL AREAS.—To advance the ob8 jectives and purposes of the Initiative, the Secretary 

9 of Agriculture and the Secretary of Energy, in con10 sultation with the Administrator of the Environ11 mental Protection Agency and heads of other appro12 priate departments and agencies (referred to in this 

13 subsection as the ‘Secretaries’), shall direct research, 

14 development, and commercial applications toward— 

15 ‘‘(A) feedstocks and feedstock systems rel16 evant to production of raw materials for conver17 sion to biobased fuels and biobased products, 

18 including— 

19 ‘‘(i) development of advanced and 

20 dedicated crops and other biomass sources 

21 with desired features, including enhanced 

22 productivity, broader site range, low re23 quirements for chemical inputs, and en24 hanced processing; 
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•HR 2419 EH1S 

1 ‘‘(ii) advanced crop production meth2 ods to achieve the features described in 

3 clause (i); 

4 ‘‘(iii) feedstock harvest, handling, 

5 transport, and storage; 

6 ‘‘(iv) strategies for integrating feed7 stock production into existing managed 

8 land; and 

9 ‘‘(v) improving the value and quality 

10 of coproducts, including materials used for 

11 animal feeding; 

12 ‘‘(B) overcoming recalcitrance of cellulosic 

13 biomass through developing technologies for 

14 converting cellulosic biomass into intermediates 

15 that can subsequently be converted into 

16 biobased fuels and biobased products, includ17 ing— 

18 ‘‘(i) pretreatment in combination with 

19 enzymatic or microbial hydrolysis; 

20 ‘‘(ii) thermochemical approaches, in21 cluding gasification and pyrolysis; and 

22 ‘‘(iii) self-processing crops that ex23 press enzymes capable of degrading cel24 lulosic biomass; 
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•HR 2419 EH1S 

1 ‘‘(C) product diversification through tech2 nologies relevant to production of a range of 

3 biobased products (including chemicals, animal 

4 feeds, and cogenerated power) that eventually 

5 can increase the feasibility of fuel production in 

6 a biorefinery, including— 

7 ‘‘(i) catalytic processing, including 

8 thermochemical fuel production; 

9 ‘‘(ii) metabolic engineering, enzyme 

10 engineering, and fermentation systems for 

11 biological production of desired products, 

12 coproducts, or cogeneration of power; 

13 ‘‘(iii) product recovery; 

14 ‘‘(iv) power production technologies; 

15 ‘‘(v) integration into existing biomass 

16 processing facilities, including starch eth17 anol plants, sugar processing or refining 

18 plants, paper mills, and power plants; and 

19 ‘‘(vi) enhancement of products and co20 products, including dried distillers grains 

21 (including substantially elevated starch 

22 content, increased oil content, improved 

23 fatty acid profiles, and improved resistance 

24 to mold and mycotoxins; and 
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•HR 2419 EH1S 

1 ‘‘(D) analysis that provides strategic guid2 ance for the application of biomass technologies 

3 in accordance with realization of improved sus4 tainability and environmental quality, cost ef5 fectiveness, security, and rural economic devel6 opment, usually featuring system-wide ap7 proaches. 

8 ‘‘(5) ADDITIONAL CONSIDERATIONS.—Within 

9 the technical areas described in paragraph (4), and 

10 in addition to advancing the purposes described in 

11 paragraph (3) and the objectives described in para12 graph (2), the Secretaries shall support research and 

13 development— 

14 ‘‘(A) to create continuously expanding op15 portunities for participants in existing biofuels 

16 production by seeking synergies and continuity 

17 with current technologies and practices, such as 

18 improvements in dried distillers grains as a 

19 bridge feedstock; 

20 ‘‘(B) to maximize the environmental, eco21 nomic, and social benefits of production of 

22 biobased fuels and biobased products on a large 

23 scale through life-cycle economic and environ24 mental analysis and other means; and 
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1 ‘‘(C) to assess the potential of Federal 

2 land and land management programs as feed3 stock resources for biobased fuels and biobased 

4 products, consistent with the integrity of soil 

5 and water resources and with other environ6 mental considerations. 

7 ‘‘(6) ELIGIBLE ENTITIES.—To be eligible for a 

8 grant, contract, or assistance under this subsection, 

9 an applicant shall be— 

10 ‘‘(A) an institution of higher education; 

11 ‘‘(B) a National Laboratory; 

12 ‘‘(C) a Federal research agency; 

13 ‘‘(D) a State research agency; 

14 ‘‘(E) a private sector entity; 

15 ‘‘(F) a nonprofit organization; or 

16 ‘‘(G) a consortium of two or more entities 

17 described in subparagraphs (A) through (F). 

18 ‘‘(7) ADMINISTRATION.— 

19 ‘‘(A) IN GENERAL.—After consultation 

20 with the Board, the points of contact shall— 

21 ‘‘(i) publish annually one or more 

22 joint requests for proposals for grants, 

23 contracts, and assistance under this sub24 section; 
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•HR 2419 EH1S 

1 ‘‘(ii) require that grants, contracts, 

2 and assistance under this section be 

3 awarded competitively, on the basis of 

4 merit, after the establishment of proce5 dures that provide for scientific peer review 

6 by an independent panel of scientific and 

7 technical peers; and 

8 ‘‘(iii) give some preference to applica9 tions that— 

10 ‘‘(I) involve a consortia of experts 

11 from multiple institutions; 

12 ‘‘(II) encourage the integration 

13 of disciplines and application of the 

14 best technical resources; and 

15 ‘‘(III) increase the geographic di16 versity of demonstration projects. 

17 ‘‘(B) DISTRIBUTION OF FUNDING BY

18 TECHNICAL AREA.—Of the funds authorized to 

19 be appropriated for activities described in this 

20 subsection, funds shall be distributed for each 

21 of fiscal years 2007 through 2012 so as to 

22 achieve an approximate distribution of— 

23 ‘‘(i) 20 percent of the funds to carry 

24 out activities for feedstock production 

25 under paragraph (4)(A); 
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•HR 2419 EH1S 

1 ‘‘(ii) 45 percent of the funds to carry 

2 out activities for overcoming recalcitrance 

3 of cellulosic biomass under paragraph 

4 (4)(B), of which not less than 10 percent 

5 shall be used for activities referred to in 

6 each clause of paragraph (4)(B); 

7 ‘‘(iii) 30 percent of the funds to carry 

8 out activities for product diversification 

9 under paragraph (4)(C); and 

10 ‘‘(iv) 5 percent of the funds to carry 

11 out activities for strategic guidance under 

12 paragraph (4)(D). 

13 ‘‘(C) DISTRIBUTION OF FUNDING WITHIN

14 EACH TECHNICAL AREA.—Within each technical 

15 area described in subparagraphs (A) through 

16 (C) of paragraph (4), funds shall be distributed 

17 for each of fiscal years 2007 through 2012 so 

18 as to achieve an approximate distribution of— 

19 ‘‘(i) 15 percent of the funds for ap20 plied fundamentals; 

21 ‘‘(ii) 35 percent of the funds for inno22 vation; and 

23 ‘‘(iii) 50 percent of the funds for dem24 onstration and commercial applications. 

25 ‘‘(D) MATCHING FUNDS.— 
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•HR 2419 EH1S 

1 ‘‘(i) IN GENERAL.—A minimum 20 

2 percent funding match shall be required 

3 for demonstration projects under this sec4 tion. 

5 ‘‘(ii) COMMERCIAL APPLICATIONS.—A 

6 minimum of 50 percent funding match 

7 shall be required for commercial applica8 tion projects under this section. 

9 ‘‘(E) TECHNOLOGY AND INFORMATION

10 TRANSFER TO AGRICULTURAL USERS.—The Ad11 ministrator of the Cooperative State Research, 

12 Education, and Extension Service and the Chief 

13 of the Natural Resources Conservation Service 

14 shall ensure that applicable research results and 

15 technologies from the Initiative are adapted, 

16 made available, and disseminated through those 

17 services, as appropriate. 

18 ‘‘(h) ADMINISTRATIVE SUPPORT AND FUNDS.— 

19 ‘‘(1) IN GENERAL.—To the extent administra20 tive support and funds are not provided by other 

21 agencies under paragraph (2)(b), the Secretary of 

22 Energy and the Secretary of Agriculture may pro23 vide such administrative support and funds of the 

24 Department of Energy and the Department of Agri25 culture to the Board and the Advisory Committee as 
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•HR 2419 EH1S 

1 are necessary to enable the Board and the Advisory 

2 Committee to carry out their duties under this sec3 tion. 

4 ‘‘(2) OTHER AGENCIES.—The heads of the 

5 agencies referred to in subsection (e)(2)(C), and the 

6 other members appointed under subsection 

7 (e)(2)(D), may, and are encouraged to, provide ad8 ministrative support and funds of their respective 

9 agencies to the Board and the Advisory Committee. 

10 ‘‘(3) LIMITATION.—Not more than 4 percent of 

11 the amount appropriated for each fiscal year under 

12 subsection (g)(6) may be used to pay the adminis13 trative costs of carrying out this section. 

14 ‘‘(i) REPORTS.— 

15 ‘‘(1) ANNUAL REPORTS.—For each fiscal year 

16 for which funds are made available to carry out this 

17 section, the Secretary of Energy and the Secretary 

18 of Agriculture shall jointly submit to Congress a de19 tailed report on— 

20 ‘‘(A) the status and progress of the Initia21 tive, including a report from the Advisory Com22 mittee on whether funds appropriated for the 

23 Initiative have been distributed and used in a 

24 manner that— 
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•HR 2419 EH1S 

1 ‘‘(i) is consistent with the objectives, 

2 purposes, and additional considerations de3 scribed in paragraphs (2) through (5) of 

4 subsection (g); 

5 ‘‘(ii) uses the set of criteria estab6 lished in the initial report submitted under 

7 title III of the Agricultural Risk Protection 

8 Act of 2000; 

9 ‘‘(iii) achieves the distribution of 

10 funds described in subparagraphs (B) and 

11 (C) of subsection (g)(7); and 

12 ‘‘(iv) takes into account any rec13 ommendations that have been made by the 

14 Advisory Committee; 

15 ‘‘(B) the general status of cooperation and 

16 research and development efforts carried out at 

17 each agency with respect to biobased fuels and 

18 biobased products, including a report from the 

19 Advisory Committee on whether the points of 

20 contact are funding proposals that are selected 

21 under subsection (g)(3)(B)(iii); and 

22 ‘‘(C) the plans of the Secretary of Energy 

23 and the Secretary of Agriculture for addressing 

24 concerns raised in the report, including con25 cerns raised by the Advisory Committee. 
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1 ‘‘(2) UPDATES.—The Secretary and the Sec2 retary of Energy shall update the Vision and Road3 map documents prepared for Federal biomass re4 search and development activities. 

5 ‘‘(3) MANAGEMENT PLAN.—The Secretary shall 

6 every five years, in consultation with the Secretary 

7 of Energy, submit to Congress a detailed manage8 ment plan for the implementation of this section. 

9 The management plan shall include— 

10 ‘‘(A) consideration of the contribution of 

11 the section towards achieving the objectives re12 ferred to in paragraphs (2) and (3) of sub13 section (g) and in achieving the goals of the 

14 biomass program of the Department of Energy; 

15 ‘‘(B) consideration of input solicited from 

16 the Advisory Committee, State, and private 

17 sources; and 

18 ‘‘(C) specific and quantifiable near and 

19 long-term goals. 

20 ‘‘(j) FUNDING.— 

21 ‘‘(1) IN GENERAL.—Of the funds of the Com22 modity Credit Corporation, the Secretary of Agri23 culture shall make available to carry out this sec24 tion— 

25 ‘‘(A) $35,000,000 for fiscal year 2008; 
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1 ‘‘(B) $60,000,000 for fiscal year 2009; 

2 ‘‘(C) $75,000,000 for fiscal year 2010; 

3 ‘‘(D) $100,000,000 for fiscal year 2011; 

4 and 

5 ‘‘(E) $150,000,000 for fiscal year 2012. 

6 ‘‘(2) ADDITIONAL FUNDING.—In addition to 

7 amounts transferred under paragraph (1), there are 

8 authorized to be appropriated to carry out this sec9 tion $200,000,000 for each of fiscal years 2006 

10 through 2015.’’. 

11 (b) REPEAL.—Title III of the Agricultural Risk Pro12 tection Act of 2000 (Public Law 106–224) is hereby re13 pealed. 

14 (c) MANAGEMENT PLAN SUBMISSION DATE.—The 

15 first management plan required to be submitted under sec16 tion 9008(i)(3) of the Biomass Research and Development 

17 Act of 2000, as added by subsection (a), shall be sub18 mitted not later than 180 days after the date of the enact19 ment of this Act. 

20 SEC. 9007. ADJUSTMENTS TO THE BIOENERGY PROGRAM. 

21 Section 9010 of the Farm Security and Rural Invest22 ment Act of 2002 (7 U.S.C. 8108) is amended— 

23 (1) in subsection (a)— 

24 (A) in paragraph (1)— 
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1 (i) in subparagraph (A), by striking 

2 ‘‘and’’; 

3 (ii) in subparagraph (B), by striking 

4 the final period and inserting a semicolon; 

5 and 

6 (iii) by adding at the end the fol7 lowing new subparagraphs: 

8 ‘‘(C) production of heat and power at a 

9 biofuels plant; 

10 ‘‘(D) biomass gasification; 

11 ‘‘(E) hydrogen made from cellulosic com12 modities for fuel cells; 

13 ‘‘(F) renewable diesel; 

14 ‘‘(G) such other items as the Secretary 

15 considers appropriate.’’; 

16 (B) by striking paragraph (3) and insert17 ing the following: 

18 ‘‘(3) ELIGIBLE FEEDSTOCK.— 

19 ‘‘(A) IN GENERAL.—The term ‘eligible 

20 feedstock’ means— 

21 ‘‘(i) any plant material grown or col22 lected for the purpose of being converted to 

23 energy (including aquatic plants); 

24 ‘‘(ii) any organic byproduct or residue 

25 from agriculture and forestry, including 
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1 mill residues and pulping residues that can 

2 be converted into energy; 

3 ‘‘(iii) any waste material that can be 

4 converted to energy and is derived from 

5 plant material, including— 

6 ‘‘(I) wood waste and residue; 

7 ‘‘(II) specialty crop waste, includ8 ing waste derived from orchard trees, 

9 vineyard crops, and nut crops; or 

10 ‘‘(III) other fruit and vegetable 

11 byproducts or residues; or 

12 ‘‘(iv) animal waste and byproducts. 

13 ‘‘(B) EXCLUSION.—The term ‘eligible feed14 stock’ does not include corn starch.’’; 

15 (C) in paragraph (4), by striking ‘‘an eligi16 ble commodity’’ and inserting ‘‘eligible feed17 stock’’; and 

18 (D) by adding at the end the following new 

19 paragraph: 

20 ‘‘(5) RENEWABLE DIESEL.—The term ‘renew21 able diesel’ means any type of biobased renewable 

22 fuel derived from plant or animal matter that may 

23 be used as a substitute for standard diesel fuel and 

24 meets the requirements of an appropriate American 

25 Society for Testing and Material standard. Such 
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1 term does not include any fuel derived from coproc2 essing an eligible feedstock with a feedstock that is 

3 not biomass.’’; 

4 (2) in subsection (b)— 

5 (A) in paragraph (1)— 

6 (i) by striking ‘‘The Secretary shall 

7 continue’’ and all that follows through ‘‘the 

8 Secretary makes’’ and inserting ‘‘The Sec9 retary shall make’’; and 

10 (ii) by striking ‘‘eligible commodities’’ 

11 and inserting ‘‘eligible feedstock’’; 

12 (B) in paragraph (2)(B), by striking ‘‘eligi13 ble commodities’’ and inserting ‘‘eligible feed14 stock’’; 

15 (C) in paragraph (3), by striking subpara16 graphs (B) and (C) and inserting the following: 

17 ‘‘(B) PRIORITY.—In making payments 

18 under this paragraph, the Secretary shall give 

19 priority to contracts by considering the factors 

20 referred to in section 9003(e)(2)(B).’’; 

21 (D) by striking paragraph (6) and insert22 ing the following: 

23 ‘‘(6) LIMITATION.—The Secretary may limit 

24 the amount of payments that may be received by an 
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1 eligible producer under this section as the Secretary 

2 considers appropriate.’’; and 

3 (E) by adding at the end the following new 

4 paragraph: 

5 ‘‘(8) RENEWAL OF CONTRACTS.—When consid6 ering the renewal of a contract under this section, 

7 the Secretary shall review such contract to deter8 mine whether the production of bioenergy at the fa9 cility under contract is economically viable and re10 consider the need for the contract based on that de11 termination.’’; and 

12 (3) by striking subsection (c) and inserting the 

13 following: 

14 ‘‘(c) FUNDING.—Of the funds of the Commodity 

15 Credit Corporation, the Secretary of Agriculture shall use 

16 to carry out this section— 

17 ‘‘(1) $225,000,000 for fiscal year 2008; 

18 ‘‘(2) $250,000,000 for fiscal year 2009; 

19 ‘‘(3) $275,000,000 for fiscal year 2010; 

20 ‘‘(4) $300,000,000 for fiscal year 2011; and 

21 ‘‘(5) $350,000,000 for fiscal year 2012.’’. 
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1 SEC. 9008. RESEARCH, EXTENSION, AND EDUCATIONAL 

2 PROGRAMS ON BIOBASED ENERGY TECH3 NOLOGIES AND PRODUCTS. 

4 (a) WESTERN INSULAR PACIFIC CENTER.—Section 

5 9011(d) is amended by adding at the end the following 

6 new paragraph: 

7 ‘‘(6) WESTERN INSULAR PACIFIC CENTER.—A 

8 western insular pacific center at the University of 

9 Hawaii for the region of Alaska, Hawaii, Guam, 

10 American Samoa, the Commonwealth of the North11 ern Mariana Islands, the Federated States of Micro12 nesia, the Republic of the Marshall Islands, and the 

13 Republic of Palau.’’. 

14 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

15 9011(j)(1)(C) of the Farm Security and Rural Investment 

16 Act of 2002 (7 U.S.C. 8109(j)(1)(C)) is amended by strik17 ing ‘‘2010’’ and inserting ‘‘2012’’. 

18 SEC. 9009. ENERGY COUNCIL OF THE DEPARTMENT OF AG19 RICULTURE. 

20 Title IX of the Farm Security and Rural Investment 

21 Act of 2002 (7 U.S.C. 8101 et seq.) is further amended 

22 by adding at the end the following new section: 

23 ‘‘SEC. 9012. ENERGY COUNCIL OF THE DEPARTMENT OF AG24 RICULTURE. 

25 ‘‘(a) IN GENERAL.—The Secretary of Agriculture 

26 shall establish an energy council in the Office of the Sec-
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1 retary (in this section referred to as the ‘Council’) to co2 ordinate the energy policy of the Department of Agri3 culture and consult with other departments and agencies 

4 of the Federal Government. 

5 ‘‘(b) MEMBERSHIP.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall appoint 

7 the members of the Council from among the staff of 

8 the agencies and mission areas of the Department of 

9 Agriculture with responsibilities relating to energy 

10 programs or policies. 

11 ‘‘(2) CHAIR.—The chief economist and the 

12 Under Secretary for Rural Development of the De13 partment of Agriculture shall serve as the Chairs of 

14 the Council. 

15 ‘‘(c) DUTIES OF OFFICE OF ENERGY POLICY AND

16 NEW USES.—The Office of Energy Policy and New Uses 

17 of the Department of Agriculture shall support the activi18 ties of the Council.’’. 

19 SEC. 9010. FARM ENERGY PRODUCTION PILOT PROGRAM. 

20 Title IX of the Farm Security and Rural Investment 

21 Act of 2002 (7 U.S.C. 8101 et seq.) is further amended 

22 by adding at the end the following new section: 

23 ‘‘SEC. 9013. FARM ENERGY PRODUCTION PILOT PROGRAM. 

24 ‘‘(a) PROGRAM.—The Secretary of Agriculture shall 

25 establish a pilot program to provide grants to farmers for 
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1 the purpose of demonstrating the feasibility of making a 

2 farm energy neutral using existing technologies. 

3 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

4 is authorized to be appropriated to carry out this section 

5 $5,000,000 for fiscal years 2008 through 2012.’’. 

6 SEC. 9011. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 

7 Title IX of the Farm Security and Rural Investment 

8 Act of 2002 (7 U.S.C. 8101 et seq.) is further amended 

9 by adding at the end the following new section: 

10 ‘‘SEC. 9014. RURAL ENERGY SELF-SUFFICIENCY INITIATIVE. 

11 ‘‘(a) GRANT AUTHORITY.— 

12 ‘‘(1) IN GENERAL.—The Secretary of Agri13 culture (in this section referred to as the ‘Secretary’) 

14 may make grants in accordance with this section to 

15 enable eligible rural communities to substantially in16 crease their energy self-sufficiency. 

17 ‘‘(2) ELIGIBLE RURAL COMMUNITY DEFINED.— 

18 In this section, the term ‘eligible rural community’ 

19 means a community that has a population of fewer 

20 than 25,000 individuals, and is not located in a met21 ropolitan statistical area (as defined by the Bureau 

22 of the Census). 

23 ‘‘(b) APPLICATIONS.— 

24 ‘‘(1) IN GENERAL.—A community desiring to 

25 receive a grant under this section shall submit to the 
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1 Secretary an application for the grant, which con2 tains a description of how the community would use 

3 the grant to develop an integrated renewable energy 

4 system to substantially increase its energy self-suffi5 ciency. 

6 ‘‘(2) INTEGRATED RENEWABLE ENERGY SYS7 TEM.—In paragraph (1), the term ‘integrated renew8 able energy system’ includes— 

9 ‘‘(A) the use of biofuels; 

10 ‘‘(B) the use of biomass to produce elec11 tricity; 

12 ‘‘(C) the use of animal manure to produce 

13 biogas as a substitute for natural gas; 

14 ‘‘(D) the use of new technologies to pro15 vide highly energy efficient lighting, buildings, 

16 or vehicles; 

17 ‘‘(E) the use of wind power to produce 

18 electricity and hydrogen; and 

19 ‘‘(F) the use of solar energy. 

20 ‘‘(c) CONSIDERATION OF APPLICATIONS.— 

21 ‘‘(1) EVALUATION.—In making grants under 

22 this section, the Secretary shall evaluate applications 

23 based on their ability to demonstrate— 

24 ‘‘(A) integration of different renewable en25 ergy sources at lowest total cost; 
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1 ‘‘(B) integration of different renewable en2 ergy sources with greatest potential for com3 mercialization; and 

4 ‘‘(C) development of best practices, and 

5 models for viable rural energy self-sufficiency. 

6 ‘‘(2) PREFERENCE.—In making grants under 

7 this section, the Secretary shall give preference to 

8 those which propose a project developed or carried 

9 out in coordination with— 

10 ‘‘(A) universities or their non-profit foun11 dations; 

12 ‘‘(B) Federal, State, or local government 

13 agencies; 

14 ‘‘(C) public or private power generation en15 tities; or 

16 ‘‘(D) government entities with responsi17 bility for water or natural resources. 

18 ‘‘(d) GRANTS.— 

19 ‘‘(1) COST-SHARING.—The amount of a grant 

20 under this section with respect to an application 

21 shall not exceed 75 percent of the cost of the activi22 ties described in the application. 

23 ‘‘(2) NUMBER OF GRANTS PER YEAR.—The 

24 Secretary may make not more than 5 grants under 

25 this section in each fiscal year. 
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1 ‘‘(e) USE OF GRANTS.—A community to which a 

2 grant is made under this section shall use the grant to 

3 develop an integrated renewable energy system to improve 

4 the energy efficiency of the community, and shall docu5 ment any energy savings resulting from the use of the 

6 grant. 

7 ‘‘(f) REPORT TO THE CONGRESS.—The Secretary 

8 shall submit to the Committee on Agriculture of the House 

9 of Representatives and the Committee on Agriculture, Nu10 trition, and Forestry of the Senate a report that document 

11 the best practices and approaches used by grantees receiv12 ing funds under this section. 

13 ‘‘(g) LIMITATIONS ON AUTHORIZATION OF APPRO14 PRIATIONS.—For grants under this section, there are au15 thorized to be appropriated to the Secretary not more than 

16 $5,000,000 for fiscal year 2008, and such sums as may 

17 be necessary for fiscal years 2009 through 2012.’’. 

18 SEC. 9012. AGRICULTURAL BIOFUELS FROM BIOMASS IN19 TERNSHIP PILOT PROGRAM. 

20 Title IX of the Farm Security and Rural Investment 

21 Act of 2002 (7 U.S.C. 8101 et seq.) is further amended 

22 by adding at the end the following new section: 
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1 ‘‘SEC. 9015. AGRICULTURAL BIOFUELS FROM BIOMASS IN2 TERNSHIP PILOT PROGRAM. 

3 ‘‘(a) ESTABLISHMENT.—The Secretary of Agri4 culture shall establish a structured, academically-oriented 

5 internship pilot program (in this section referred to as the 

6 ‘Program’) to provide students from universities in Cali7 fornia, Iowa, Missouri, Georgia, Minnesota, and other 

8 states with substantial farm-based economies or univer9 sities with fields of study capable of developing renewable 

10 energy technology or policy with the opportunity to work 

11 within the Department of Agriculture, Congress and legis12 lative branch agencies, other Federal departments and 

13 agencies, corporations, and nonprofit institutions on mat14 ters pertaining to policies regarding renewable energy, in15 cluding the conversion of biomass and other agricultural 

16 products to produce ethanol and other biofuels. 

17 ‘‘(b) ELIGIBILITY.—To be eligible for an internship 

18 under subsection (a) a student shall— 

19 ‘‘(1) be a third or fourth year undergraduate 

20 student or a graduate student at an accredited col21 lege or university in California, Iowa, Missouri, 

22 Georgia, Minnesota, or another State with a sub23 stantial farm-based economy, or at a university with 

24 fields of study capable of developing renewable en25 ergy technology or policy (including agriculture-re26 lated studies, chemistry, environmental sciences, bio-
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1 engineering, biochemistry, natural resources, and 

2 public policy), that commits matching funds in ac3 cordance with subsection (g); 

4 ‘‘(2) be a United States citizen; 

5 ‘‘(3) be pursuing an undergraduate or graduate 

6 program in agriculture and related supporting sub7 jects with direct relevance to the subject of bio8 refinery, biofuels, and renewable energy; and 

9 ‘‘(4) meet any other conditions or requirements 

10 that the Secretary considers necessary. 

11 ‘‘(c) PRIORITIES OF INTERNSHIP PILOT PROGRAM.— 

12 In administering the Program (including in the selection 

13 of students to participate in the Program), the Secretary 

14 shall prioritize the following activities and placements: 

15 ‘‘(1) Structured internship experiences that fea16 ture direct, hands-on assistance to policy makers en17 gaged in the development and implementation of ag18 riculture and related supporting policies and legisla19 tion, with direct relevance to the subject of bio20 refinery, biofuels, and renewable energy. 

21 ‘‘(2) Internship and academic seminar pro22 grams that provide a combination of workforce 

23 training, experiential education, and leadership de24 velopment designed specifically for the Department 

25 of Agriculture and Congress, with regard to agri-
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1 culture-based biorefinery, biofuels, and related re2 newable energy policies. 

3 ‘‘(3) Establishment of regional and state net4 works that partner with the agricultural business, 

5 government and academic communities to enhance 

6 the prospects for providing financial assistance to 

7 students, particularly minority students, from col8 leges and universities in each participating State 

9 who are from economically disadvantaged back10 grounds. 

11 ‘‘(4) Internship and academic seminar pro12 grams that focus on agriculture-based research, de13 velopment, and policies addressing new technologies 

14 to enhance agriculture production and enhanced eco15 nomic development in the agriculture sector of the 

16 United States. 

17 ‘‘(d) ADMINISTRATION OF THE PILOT PROGRAM.— 

18 The Secretary, in consultation with other executive and 

19 legislative branch officials, shall administer the Program. 

20 The Secretary may engage the services of an experienced, 

21 nonprofit, nonpartisan professional internship and aca22 demic seminar organization with extensive experience in 

23 developing and carrying out Washington-based or other 

24 State-based internship programs and State-based financial 
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1 assistance initiatives for interns to assist in carrying out 

2 the Program. 

3 ‘‘(e) SCHOLARSHIPS AND OTHER ASSISTANCE FOR

4 INTERNSHIPS.—The Secretary may make available to un5 dergraduate and graduate students participating in the 

6 Program scholarships or other types of financial assist7 ance, including funds to cover the cost of housing, per 

8 diem living expenses, transportation, tuition and other 

9 educational expenses, and related costs, that would allow 

10 participation by eligible undergraduate and graduate stu11 dents from economically-disadvantaged backgrounds with12 in the Program States. 

13 ‘‘(f) LONGITUDINAL STUDIES AND REPORTING RE14 QUIREMENTS.— 

15 ‘‘(1) LONGITUDINAL STUDIES AND EVALUATION

16 OF INTERNSHIP PROGRAM.—In developing and im17 plementing the Program, the Secretary shall carry 

18 out such longitudinal studies and program evalua19 tions as he or she deems appropriate to ensure that 

20 the program is administered in a cost-effective man21 ner and has specific milestones, objectives, and re22 sults quantified with regard to such Program. 

23 ‘‘(2) REPORTING REQUIREMENTS.—The Sec24 retary shall submit to the Committee on Agriculture 

25 of the House of Representatives and the Committee 
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1 on Agriculture, Nutrition, and Forestry of the Sen2 ate periodic reports regarding the development and 

3 implementation of the Program, including the longi4 tudinal studies and evaluations required under para5 graph (1). 

6 ‘‘(g) STATE MATCHING REQUIREMENT.—As a condi7 tion of receiving an internship under the Program, the 

8 State in which the student receiving the internship is pur9 suing an undergraduate or graduate degree shall provide 

10 matching funds in the amount of one dollar for every two 

11 dollars provided by the Secretary under the Program. 

12 ‘‘(h) FEDERAL CONTRIBUTION LIMIT.—The Sec13 retary may not expend more than $200,000 in any fiscal 

14 year to provide internships to students pursuing an under15 graduate or graduate degree in any particular State. 

16 ‘‘(i) APPLICATION OF FUNDS.—The Secretary shall, 

17 to the maximum extent practicable, use funds made avail18 able under subsection (j) to provide scholarships and the 

19 other forms of financial assistance described in subsection 

20 (e) directly attributable to the participation in the Pro21 gram by students from rural, economically-disadvantaged 

22 backgrounds. 

23 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 

24 are authorized to be appropriated such sums as may be 

25 necessary to carry out this section.’’. 
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1 SEC. 9013. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIO2 ENERGY PRODUCERS. 

3 Title IX of the Farm Security and Rural Investment 

4 Act of 2002 (7 U.S.C. 8101 et seq.) is further amended 

5 by adding at the end the following new section: 

6 ‘‘SEC. 9016. FEEDSTOCK FLEXIBILITY PROGRAM FOR BIO7 ENERGY PRODUCERS. 

8 ‘‘(a) DEFINITIONS.—In this section: 

9 ‘‘(1) BIOENERGY.—The term ‘bioenergy’ means 

10 fuel grade ethanol and other biofuel. 

11 ‘‘(2) BIOENERGY PRODUCER.—The term ‘bio12 energy producer’ means a producer of bioenergy that 

13 uses an eligible commodity to produce bioenergy 

14 under this section. 

15 ‘‘(3) ELIGIBLE COMMODITY.—The term ‘eligible 

16 commodity’ means a form of raw or refined sugar or 

17 in-process sugar that is eligible to be marketed in 

18 the United States for human consumption or to be 

19 used for the extraction of sugar for human consump20 tion. 

21 ‘‘(4) ELIGIBLE ENTITY.—The term ‘eligible en22 tity’ means an entity located in the United States 

23 that markets an eligible commodity in the United 

24 States. 

25 ‘‘(b) FEEDSTOCK FLEXIBILITY PROGRAM.— 

26 ‘‘(1) IN GENERAL.— 
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1 ‘‘(A) PURCHASES AND SALES.—For each 

2 of fiscal years 2008 through 2012, the Sec3 retary shall purchase eligible commodities from 

4 eligible entities and sell such commodities to 

5 bioenergy producers for the purpose of pro6 ducing bioenergy in a manner that ensures that 

7 156 of the Federal Agricultural Improvement 

8 and Reform Act (7 U.S.C. 7272) is operated at 

9 no cost to the Federal Government by avoiding 

10 forfeitures to the Commodity Credit Corpora11 tion. 

12 ‘‘(B) COMPETITIVE PROCEDURES.—In car13 rying out the purchases and sales required 

14 under subparagraph (A), the Secretary shall, to 

15 the maximum extent practicable, use competi16 tive procedures, including the receiving, offer17 ing, and accepting of bids, when entering into 

18 contracts with eligible entities and bioenergy 

19 producers, provided that such procedures are 

20 consistent with the purposes of subparagraph 

21 (A). 

22 ‘‘(C) LIMITATION.—The purchase and sale 

23 of eligible commodities under subparagraph (A) 

24 shall only be made in fiscal years in which such 

25 purchases and sales are necessary to ensure 
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1 that the program authorized under section 156 

2 of the Federal Agriculture Improvement and 

3 Reform Act (7 U.S.C. 7272) is operated at no 

4 cost to the Federal Government by avoiding for5 feitures to the Commodity Credit Corporation. 

6 ‘‘(2) NOTICE.— 

7 ‘‘(A) IN GENERAL.—Not later than Sep8 tember 1, 2007, and each September 1 there9 after through fiscal year 2011, the Secretary 

10 shall provide notice to eligible entities and bio11 energy producers of the quantity of eligible 

12 commodities that shall be made available for 

13 purchase and sale for the subsequent fiscal year 

14 under this section. 

15 ‘‘(B) REESTIMATES.—Not later than the 

16 first day of each of the second through fourth 

17 quarters of each of fiscal years 2008 through 

18 2012, the Secretary shall reestimate the quan19 tity of eligible commodities determined under 

20 subparagraph (A), and provide notice and make 

21 purchases and sales based on such reestimates. 

22 ‘‘(3) COMMODITY CREDIT CORPORATION INVEN23 TORY.—To the extent that an eligible commodity is 

24 owned and held in inventory by the Commodity 

25 Credit Corporation (accumulated pursuant to the 
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1 program authorized under section 156 of the Fed2 eral Agriculture Improvement and Reform Act (7 

3 U.S.C. 7272)), the Secretary shall sell such com4 modity to bioenergy producers under this section. 

5 ‘‘(4) TRANSFER RULE; STORAGE FEES.— 

6 ‘‘(A) GENERAL TRANSFER RULE.—Except 

7 as provided in subparagraph (C), the Secretary 

8 shall ensure that bioenergy producers that pur9 chase eligible commodities pursuant to this sub10 section take possession of such commodities 

11 within 30 calendar days of the date of such 

12 purchase from the Commodity Credit Corpora13 tion. 

14 ‘‘(B) PAYMENT OF STORAGE FEES PRO15 HIBITED.— 

16 ‘‘(i) IN GENERAL.—The Secretary 

17 shall, to the greatest extent practicable, 

18 carry out this subsection in a manner that 

19 ensures no storage fees are paid by the 

20 Commodity Credit Corporation in the ad21 ministration of this subsection. 

22 ‘‘(ii) EXCEPTION.—Clause (i) shall 

23 not apply with respect to any commodities 

24 owned and held in inventory by the Com25 modity Credit Corporation (accumulated 
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•HR 2419 EH1S 

1 pursuant to the program authorized under 

2 section 156 of the Federal Agriculture Im3 provement and Reform Act (7 U.S.C. 

4 7272)). 

5 ‘‘(C) OPTION TO PREVENT STORAGE

6 FEES.— 

7 ‘‘(i) IN GENERAL.—The Secretary 

8 may enter into contracts with bioenergy 

9 producers to sell eligible commodities to 

10 such producers prior in time to entering 

11 into contracts with eligible entities to pur12 chase such commodities to be used to sat13 isfy the contracts entered into with the bio14 energy producers. 

15 ‘‘(ii) SPECIAL TRANSFER RULE.—If 

16 the Secretary makes a sale and purchase 

17 referred to in clause (i), the Secretary shall 

18 ensure that the bioenergy producer that 

19 purchased eligible commodities takes pos20 session of such commodities within 30 cal21 endar days of the date the Commodity 

22 Credit Corporation purchases such com23 modities. 

24 ‘‘(5) RELATION TO OTHER LAWS.—If sugar 

25 that is subject to a marketing allotment under part 
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1 VII of subtitle B of title III of the Agricultural Ad2 justment Act of 1938 (7 U.S.C. 1359aa et seq.) is 

3 the subject of a payment under this section, such 

4 sugar shall be considered marketed and shall count 

5 against a processor’s allocation of an allotment 

6 under such part, as applicable. 

7 ‘‘(6) FUNDING.—The Secretary shall use the 

8 funds, facilities, and authorities of the Commodity 

9 Credit Corporation, including the use of such sums 

10 as are necessary, to carry out this section.’’. 

11 SEC. 9014. BIOMASS INVENTORY REPORT. 

12 (a) INVENTORY REQUIRED.—The Secretary of Agri13 culture shall conduct an inventory of biomass resources 

14 on a county-by-county basis. 

15 (b) REPORT.—Not later than one year after the date 

16 of the enactment of this Act, the Secretary shall submit 

17 to the Committee on Agriculture of the House of Rep18 resentatives and the Committee on Agriculture, Nutrition, 

19 and Forestry of the Senate a report containing— 

20 (1) the results of the inventory conducted under 

21 subsection (a); and 

22 (2) an estimate of the amount of unused crop 

23 land in the United States that could be used for 

24 dedicated energy crops. 
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1 (c) BIOMASS RESOURCES DEFINED.—In this section, 

2 the term ‘‘biomass resource’’ has the meaning given the 

3 term ‘‘eligible commodity’’ in section 9010(a)(3) of the 

4 Farm Security and Rural Investment Act of 2002 (7 

5 U.S.C. 8108(a)(3)). 

6 SEC. 9015. FUTURE FARMSTEADS PROGRAM. 

7 (a) ESTABLISHMENT.—The Secretary of Agriculture 

8 shall establish a program to equip, in each of 5 regions 

9 of the country chosen to represent different farming prac10 tices, a farm house and its surrounding fields, facilities, 

11 and forested areas with technologies to— 

12 (1) improve farm energy production and energy 

13 use efficiencies; 

14 (2) provide working examples to farmers; and 

15 (3) serve as an education, demonstration, and 

16 research facility that will teach graduate students 

17 whose focus of research is related to either renew18 able energy or energy conservation technologies. 

19 (b) GOALS.—The goals of the program established 

20 under subsection (a) shall be to— 

21 (1) advance farm energy use efficiencies and 

22 the on-farm production of renewable energies, along 

23 with advanced communication and control tech24 nologies with the latest in energy capture and con25 version techniques, thereby enhancing rural energy 
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1 independence and creating new revenues for rural 

2 economies; 

3 (2) accelerate private sector and university re4 search into the efficient on-farm production of re5 newable fuels and help educate the farming industry, 

6 students, and the general public; and 

7 (3) accelerate energy independence, including 

8 the production and the conservation of renewable en9 ergies on farms. 

10 (c) COLLABORATION PARTNERS.—The program 

11 under this section shall be carried out in partnership with 

12 regional land grant institutions, agricultural commodity 

13 commissions, biofuels companies, sensor and controls com14 panies, and internet technology companies. 

15 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated such sums as may be 

17 necessary to carry out this section. 

18 SEC. 9016. SENSE OF CONGRESS ON RENEWABLE ENERGY. 

19 It is the sense of Congress that— 

20 (1) energy demand in the United States is pro21 jected to increase by more than 30 percent over the 

22 next two decades; 

23 (2) increased production of renewable energy 

24 and growth of its infrastructure would assist the 
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•HR 2419 EH1S 

1 United States in meeting the growing energy de2 mand; 

3 (3) continued, and even accelerated, develop4 ment of renewable energy inputs and technologies 

5 provide numerous benefits to the United States, in6 cluding improved national security and economic 

7 growth; 

8 (4) while it should be a priority of the Federal 

9 Government to continue to promote policies and in10 centives to stimulate growth and development of re11 newable energy infrastructure, it should be recog12 nized that the marketplace is also an important in13 strument to determine which renewable energy 

14 sources and technologies will provide the most effi15 cient and effective energy production; 

16 (5) renewable energy inputs and technology 

17 must be available in abundant quantities and provide 

18 energy at competitive prices in a reliable manner for 

19 the American consumer; and 

20 (6) it is in the interest of the United States to 

21 diversify its energy portfolio and increase the energy 

22 independence of the United States by further devel23 oping alternative forms of energy. 
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1 SEC. 9017. BIODIESEL FUEL EDUCATION PROGRAM. 

2 Section 9004(d) of the Farm Security and Rural In3 vestment Act of 2002 (7 U.S.C. 8104(d)) is amended to 

4 read as follows: 

5 ‘‘(d) FUNDING.—Of the funds of the Commodity 

6 Credit Corporation, the Secretary shall make available to 

7 carry out this section $2,000,000 for each of fiscal years 

8 2008 through 2012.’’. 

9 SEC. 9018. BIOMASS ENERGY RESERVE. 

10 Title IX of the Farm Security and Rural Investment 

11 Act of 2002 (7 U.S.C. 8101 et seq.) is amended by adding 

12 at the end the following new section: 

13 ‘‘SEC. 9017. BIOMASS ENERGY RESERVE. 

14 ‘‘(a) PURPOSE.—The purpose of this section is to es15 tablish a biomass energy reserve— 

16 ‘‘(1) to encourage production of dedicated en17 ergy crops in a sustainable manner that protects the 

18 soil, air, water, and wildlife of the United States; 

19 and 

20 ‘‘(2) to provide financial and technical assist21 ance to owners and operators of eligible cropland to 

22 produce dedicated energy crops and crop mixes of 

23 suitable quality and in sufficient quantities to sup24 port and induce development and expansion of the 

25 use of the crop for— 

26 ‘‘(A) bioenergy; 
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1 ‘‘(B) power or heat generation to supple2 ment or replace nonbiobased energy sources; or 

3 ‘‘(C) biobased products to supplement or 

4 replace non biobased products; 

5 ‘‘(3) to establish biomass energy reserve project 

6 areas; and 

7 ‘‘(4) to provide financial and technical assist8 ance to owners and operators for harvesting, storing, 

9 and transporting cellulosic material. 

10 ‘‘(b) DEFINITIONS.— In this section: 

11 ‘‘(1) BEGINNING FARMER OR RANCHER.—The 

12 term ‘beginning farmer or rancher’ has the meaning 

13 given the term in section 343(a) of the Consolidated 

14 Farm and Rural Development Act (7 U.S.C. 

15 1991(a)). 

16 ‘‘(2) BER.—The term ‘BER’ means the bio17 mass energy reserve established under this section. 

18 ‘‘(3) BER PROJECT AREA.—The term ‘BER 

19 project area’ means an area that— 

20 ‘‘(A) has eligible cropland that— 

21 ‘‘(i) is owned or operated by eligible 

22 participants; and 

23 ‘‘(ii) has specified boundaries that are 

24 submitted to the Secretary by eligible par-
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1 ticipants and subsequently approved by the 

2 Secretary; and 

3 ‘‘(B) is physically located within a 50-mile 

4 radius of a bioenergy facility. 

5 ‘‘(4) CONSERVATION RESERVE PROGRAM.—The 

6 term ‘conservation reserve program’ means the con7 servation reserve program established under sub8 chapter B of chapter 1 of subtitle D of title XII of 

9 the Food Security Act of 1985 (16 U.S.C. 3831 et 

10 seq.). 

11 ‘‘(5) CONTRACT ACREAGE.—The term ‘contract 

12 acreage’ means eligible cropland that is covered by 

13 a BER contract entered into with the Secretary. 

14 ‘‘(6) ELIGIBLE APPLICANT.—The term ‘eligible 

15 applicant’ means— 

16 ‘‘(A) a collective group of owners and oper17 ators producing or proposing to produce eligible 

18 dedicated energy crops; 

19 ‘‘(B) an energy or agricultural company or 

20 refinery; and 

21 ‘‘(C) an Agricultural Innovation Center es22 tablished pursuant to section 6402 of the Farm 

23 Security and Rural Investment Act of 2002 

24 (Public Law 107–171; 116 Stat. 426; 7 U.S.C. 

25 1621 note). 
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1 ‘‘(7) ELIGIBLE CROPLAND.— 

2 ‘‘(A) IN GENERAL.—The term ‘eligible 

3 cropland’ means land that the applicable county 

4 committee of the Farm Service Agency deter5 mines— 

6 ‘‘(i) is currently being tilled for the 

7 production of a crop for harvest; or 

8 ‘‘(ii) is not currently being tilled but 

9 has been tilled in a prior crop year and is 

10 suitable for production of an eligible dedi11 cated energy crop. 

12 ‘‘(B) EXCLUSIONS.—The term ‘eligible 

13 cropland’ does not include— 

14 ‘‘(i) Federally-owned land; 

15 ‘‘(ii) land enrolled in— 

16 ‘‘(I) the conservation reserve pro17 gram; 

18 ‘‘(II) the grassland reserve pro19 gram; or 

20 ‘‘(III) the wetlands reserve pro21 gram; and 

22 ‘‘(iii) land with greater than 50 per23 cent cover of native nonwoody vegetation 

24 or forest land, as of the date of enactment 

25 of this section. 
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1 ‘‘(8) ELIGIBLE DEDICATED ENERGY CROP.— 

2 ‘‘(A) IN GENERAL.—The term ‘eligible 

3 dedicated energy crop’ means any crop native to 

4 the United States, or another crop, as deter5 mined by the Secretary, grown specifically to 

6 provide raw materials for— 

7 ‘‘(i) conversion to liquid transpor8 tation fuels or chemicals through bio9 chemical or thermochemical processes; or 

10 ‘‘(ii) energy generation through com11 bustion, pyrolysis, gasification, cofiring, or 

12 other technologies, as determined by the 

13 Secretary. 

14 ‘‘(B) EXCLUSIONS.—The term ‘eligible 

15 dedicated energy crop’ does not include— 

16 ‘‘(i) any crop that is eligible for pay17 ments under title I or a successor title; or 

18 ‘‘(ii) any plant that is invasive or nox19 ious or has the potential to become 

20 invasive or noxious, as determined by the 

21 Secretary, in consultation with other ap22 propriate Federal or State departments 

23 and agencies. 

24 ‘‘(9) ELIGIBLE PARTICIPANT.—The term ‘eligi25 ble participant’ means an owner or operator of con-
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1 tract acreage that is physically located within a 

2 BER project area. 

3 ‘‘(10) FEDERALLY-OWNED LAND.—The term 

4 ‘Federally-owned land’ means land owned by— 

5 ‘‘(A) the Federal Government (including 

6 any department, instrumentality, bureau, or 

7 agency of the Federal Government); or 

8 ‘‘(B) any corporation whose stock is wholly 

9 owned by the Federal Government. 

10 ‘‘(11) FOREST LAND.—The term ‘forest land’ 

11 means an ecosystem that is at least 1 acre in size 

12 (including timberland and woodland) and that (as 

13 determined by the Secretary)— 

14 ‘‘(A) is characterized by dense and exten15 sive tree cover; 

16 ‘‘(B) contains, or once contained, at least 

17 10 percent tree crown cover; and 

18 ‘‘(C) is not developed and planned for ex19 clusive nonforest resource use. 

20 ‘‘(12) GRASSLAND RESERVE PROGRAM.—The 

21 term ‘grassland reserve program’ means the grass22 land reserve program established under subchapter 

23 C of chapter 2 of subtitle D of title XII of the Food 

24 Security Act of 1985 (16 U.S.C. 3838n et seq.). 
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1 ‘‘(13) OPERATOR.—The term ‘operator’ means 

2 an individual, entity, or joint operation that is in 

3 control of the farming operations on a farm during 

4 the applicable crop year. 

5 ‘‘(14) OWNER.— 

6 ‘‘(A) IN GENERAL.—The term ‘owner’ 

7 means a person that has legal ownership of eli8 gible cropland. 

9 ‘‘(B) INCLUSION.—The term ‘owner’ in10 cludes— 

11 ‘‘(i) a person that is buying eligible 

12 cropland under a contract for deed; and 

13 ‘‘(ii) a person that has a life estate in 

14 eligible cropland. 

15 ‘‘(15) QUALIFIED ORGANIZATION.—The term 

16 ‘qualified organization’ means— 

17 ‘‘(A) an Agricultural Innovation Center es18 tablished pursuant to section 6402 of the Farm 

19 Security and Rural Investment Act of 2002 

20 (Public Law 107–171; 116 Stat. 426; 7 U.S.C. 

21 1621 note) with significant experience in the 

22 field of renewable energy, as determined by the 

23 Secretary; or 

24 ‘‘(B) in a region not served by a center re25 ferred to in subparagraph (A)— 
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1 ‘‘(i) an entity with significant experi2 ence in the field of renewable energy that 

3 is geographically located in such region, as 

4 determined by the Secretary; or 

5 ‘‘(ii) an accredited college or univer6 sity with experience providing technical as7 sistance in the field of renewable energy 

8 that is geographically located in such re9 gion, as determined by the Secretary. 

10 ‘‘(16) SECRETARY.—The term ‘Secretary’ 

11 means the Secretary of Agriculture. 

12 ‘‘(17) SOCIALLY DISADVANTAGED FARMER OR

13 RANCHER.—The term ‘socially disadvantaged farmer 

14 or rancher’ means a farmer or rancher who is a 

15 member of a socially disadvantaged group (as de16 fined in section 355(e) of the Consolidated Farm 

17 and Rural Development Act (7 U.S.C. 2003(e))). 

18 ‘‘(18) WETLANDS RESERVE PROGRAM.—The 

19 term ‘wetlands reserve program’ means the wetlands 

20 reserve program established under subchapter C of 

21 chapter 1 of subtitle D of title XII of the Food Se22 curity Act of 1985 (16 U.S.C. 3837 et seq.). 

23 ‘‘(c) ESTABLISHMENT.—Not later than 90 days after 

24 the date of enactment of this section, the Secretary shall 

25 establish a biomass energy reserve in accordance with this 
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1 section. The Secretary shall ensure the purposes in sub2 section (a) are met by including in the reserve projects 

3 that include a variety of harvest and post-harvest prac4 tices, including stubble height, unharvested strips (includ5 ing strips for wildlife habitat), and varying harvest dates 

6 and a variety of monoculture and polyculture crop mixes, 

7 as appropriate, by project area. 

8 ‘‘(d) PROPOSALS FOR BER PROJECT AREAS.— 

9 ‘‘(1) SELECTION OF QUALIFIED ORGANIZA10 TIONS.— 

11 ‘‘(A) IN GENERAL.—The Secretary shall 

12 select not more than 10 qualified organizations 

13 to assist— 

14 ‘‘(i) eligible applicants in submitting 

15 proposals under paragraph (2); and 

16 ‘‘(ii) the Secretary in selecting BER 

17 project areas. 

18 ‘‘(B) REGION.—The Secretary shall select 

19 not more than 1 qualified organization to assist 

20 eligible applicants and the Secretary in any par21 ticular region of the United States, as deter22 mined by the Secretary. 

23 ‘‘(C) FUNDING.—The Secretary shall pro24 vide each qualified organization selected under 
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1 paragraph (1) not more than $300,000 to carry 

2 out this paragraph. 

3 ‘‘(2) CONSULTATION WITH QUALIFIED ORGANI4 ZATION.—An eligible applicant may consult with and 

5 submit to a qualified organization a written proposal 

6 that— 

7 ‘‘(A) identifies the eligible cropland that 

8 will be a part of the proposed BER project 

9 area; and 

10 ‘‘(B) indicates a strong likelihood that the 

11 proposed BER project area will generate a suf12 ficient quantity of biomass from eligible dedi13 cated energy crops and acres or other sources 

14 to supply an existing bioenergy facility. 

15 ‘‘(3) MINIMUM REQUIREMENTS.—The written 

16 proposal for a proposed BER project area shall in17 clude— 

18 ‘‘(A) a description of the eligible cropland 

19 of each eligible participant that will participate 

20 in the proposed BER project area, including— 

21 ‘‘(i) the quantity of eligible cropland 

22 of each eligible participant; 

23 ‘‘(ii) the physical location of the eligi24 ble cropland; 
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1 ‘‘(iii) the 1 or more eligible dedicated 

2 energy crops that will be produced on the 

3 eligible cropland; and 

4 ‘‘(iv) the type of land use or crop that 

5 will be displaced by the eligible dedicated 

6 energy crop; 

7 ‘‘(B)(i) the name, if available, and type, lo8 cation, and description of the bioenergy facility 

9 that will use the eligible dedicated energy crops 

10 to be produced in the proposed BER project 

11 area; and 

12 ‘‘(ii) a letter of commitment from a bio13 energy facility that the facility will use the eligi14 ble dedicated energy crops intended to be pro15 duced in the proposed BER project area; 

16 ‘‘(C) a general analysis of the anticipated 

17 local economic impact of the proposed BER 

18 project; and 

19 ‘‘(D) any additional information needed to 

20 determine the eligibility for, and ranking of, the 

21 proposal, as determined by the Secretary. 

22 ‘‘(4) INDIVIDUAL OWNERS AND OPERATORS.—A 

23 project area proposal may not submit an individual 

24 proposal to participate in the BER. 
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1 ‘‘(5) ELIGIBILITY CRITERIA FOR BER PROJECT

2 AREAS.—The Secretary shall establish a system for 

3 ranking BER project areas based on the following 

4 criteria: 

5 ‘‘(A) The probability that the eligible dedi6 cated energy crops proposed to be produced in 

7 the proposed BER project area will be used for 

8 the purposes of the BER. 

9 ‘‘(B) The inclusion of adequate potential 

10 feedstocks and suitable placement with respect 

11 to the bioenergy facility. 

12 ‘‘(C) The potential for a positive economic 

13 impact in the proposed BER project area. 

14 ‘‘(D) The availability of the ownership of 

15 the bioenergy facility in the proposed BER 

16 project area to producers and local investors. 

17 ‘‘(E) The participation rate by beginning 

18 farmers or ranchers or socially disadvantaged 

19 farmers or ranchers. 

20 ‘‘(F) The potential to improve soil con21 servation and water quality, and enhance wild22 life habitat, when compared to existing land 

23 uses. 
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1 ‘‘(G) The variety of agronomic conditions 

2 the proposed eligible dedicated energy crops will 

3 be grown within a project area. 

4 ‘‘(H) The variety of harvest and post har5 vest practices, including stubble height, 

6 unharvested strips (including strips for wildlife 

7 habitat), and varying harvest dates. 

8 ‘‘(I) The variety of monoculture and 

9 polyculture crop mixes, as appropriate, by 

10 project area. 

11 ‘‘(6) SELECTION OF PROJECTS.— 

12 ‘‘(A) RANKING; SUBMISSION TO SEC13 RETARY.—Each qualified organization selected 

14 by the Secretary under paragraph (1) shall 

15 rank proposals submitted to such qualified or16 ganization under paragraph (2) using the sys17 tem for ranking established by the Secretary 

18 under paragraph (6) and shall submit to the 

19 Secretary up to five of the highest ranked appli20 cations. 

21 ‘‘(B) SECRETARY SELECTION.—The Sec22 retary shall authorize not less than one pro23 posal submitted to the Secretary from each 

24 qualified organization under subparagraph (A). 

25 ‘‘(e) FOREST BIOMASS PLANNING GRANTS.— 
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1 ‘‘(1) IN GENERAL.—The Secretary shall provide 

2 forest biomass planning assistance grants to private 

3 landowners to develop forest stewardship plans that 

4 involve sustainable management of biomass from 

5 forest land of the private landowners that will pre6 serve diversity, soil, water, or wildlife values of the 

7 land, while ensuring a steady supply of biomass ma8 terial, through— 

9 ‘‘(A) State forestry agencies, in consulta10 tion with State wildlife agencies; and 

11 ‘‘(B) technical service provider arrange12 ments with third-parties. 

13 ‘‘(2) LIMITATION.—The total amount of funds 

14 used to carry out this subsection shall not exceed 

15 $5,000,000. 

16 ‘‘(f) DURATION OF CONTRACT.— 

17 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

18 for purposes of carrying out the BER, the Secretary 

19 shall enter into contracts of 5 years. 

20 ‘‘(2) EARLY TERMINATION.—The Secretary 

21 may terminate a contract early if the Secretary de22 termines that— 

23 ‘‘(A) contract acreage will not be used to 

24 produce an eligible dedicated energy crop; 
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1 ‘‘(B) a material breach of the contract has 

2 occurred; 

3 ‘‘(C) the owner or operator has died; or 

4 ‘‘(D) continuation of the contract will 

5 cause undue economic hardship. 

6 ‘‘(g) CONTRACT ACREAGE REQUIREMENTS.— 

7 ‘‘(1) IN GENERAL.—On approval of a BER 

8 project area by the Secretary, each eligible partici9 pant in the BER project area shall enter into a con10 tract with the Secretary that is consistent with the 

11 BER. 

12 ‘‘(2) ADDITIONAL ELIGIBLE PARTICIPANTS.— 

13 The Secretary may add eligible participants to a 

14 BER project area after approval of the BER project 

15 area. 

16 ‘‘(3) CONSERVATION PRACTICES.—To ensure 

17 the sustainability of farm operations and the protec18 tion of soil, air, water and wildlife, the Secretary 

19 shall include such terms and conditions in a contract 

20 entered into under paragraph (1) as the Secretary 

21 considers necessary. 

22 ‘‘(4) PURPOSES.— 

23 ‘‘(A) IN GENERAL.—Except as provided in 

24 subparagraph (B), to be eligible to participate 

25 in the BER, an eligible participant may use eli-
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1 gible dedicated energy crops produced on con2 tract acreage only for the purposes described in 

3 subsection (a). 

4 ‘‘(B) PERSONAL USE.—During the period 

5 before the commercial viability of a bioenergy 

6 facility, an eligible participant may use eligible 

7 dedicated energy crops produced by the eligible 

8 participant on contract acreage for personal 

9 use. 

10 ‘‘(C) SEED PRODUCTION.—During the pe11 riod before the commercial viability of a bio12 energy facility, an eligible participant may har13 vest and sell seed produced on contract acreage. 

14 ‘‘(5) REQUIREMENTS.—To be eligible to partici15 pate in the BER, during the term of the BER con16 tract, an eligible participant shall comply with— 

17 ‘‘(A) the highly erodible land conservation 

18 requirements of subtitle B of title XII of the 

19 Food Security Act of 1985 (16 U.S.C. 3811 et 

20 seq.); and 

21 ‘‘(B) the wetland conservation require22 ments of subtitle C of title XII of that Act (16 

23 U.S.C. 3821 et seq.). 

24 ‘‘(h) ADDITIONAL ELIGIBLE BIOMASS.— 
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1 ‘‘(1) IN GENERAL.—The Secretary may allow 

2 on land that is enrolled in the conservation reserve 

3 program and located within the BER project area 

4 the harvesting of biomass— 

5 ‘‘(A) in exchange for a reduction of an ap6 plicable annual payment in an amount to be de7 termined by the Secretary; 

8 ‘‘(B) in accordance with an approved con9 servation reserve program plan, including mid10 contract management and forestry maintenance 

11 activities; and 

12 ‘‘(C) in a manner that ensures that bio13 mass harvest activities occur outside the official 

14 nesting and brood rearing season for those 

15 plans. 

16 ‘‘(i) DUTIES OF SECRETARY.—The Secretary shall— 

17 ‘‘(1) establish and administer the BER; 

18 ‘‘(2) authorize establishment of BER project 

19 areas for the purposes of the BER described in sub20 section (a); 

21 ‘‘(3) develop procedures— 

22 ‘‘(A) to monitor the compliance of eligible 

23 participants that have land enrolled in the BER 

24 with the requirements of the BER; 
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1 ‘‘(B) to measure the performance of the 

2 BER; and 

3 ‘‘(C) to demonstrate whether the long-term 

4 eligible dedicated energy crop production goals 

5 are being achieved. 

6 ‘‘(4) enter into a written contract with each eli7 gible participant that elects to participate in the 

8 BER in a BER project area; 

9 ‘‘(5) not enter into a contract under the BER 

10 with an individual owner or operator unless the land 

11 of the eligible participant is physically located in an 

12 approved BER project area; and 

13 ‘‘(6) provide all payments under the contract 

14 directly to the eligible participant. 

15 ‘‘(j) CONTRACTS.—A contract entered into between 

16 the Secretary and an eligible participant under the BER 

17 shall include, at a minimum, terms that cover— 

18 ‘‘(1) requirements for the eligible participant in 

19 carrying out the contract, including requirements de20 scribed in subsections (f), (g), and (l); 

21 ‘‘(2) termination provisions; 

22 ‘‘(3) payment terms and amounts to be pro23 vided on an annual basis; 

24 ‘‘(4) the sales or transfer of contract acreage; 

25 ‘‘(5) the modification of the contract; 
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1 ‘‘(6) the maximum quantity of contract acreage 

2 and an estimated schedule for how much eligible 

3 cropland will be enrolled each contract year; and 

4 ‘‘(7) any additional terms the Secretary con5 siders appropriate. 

6 ‘‘(k) PAYMENTS.— 

7 ‘‘(1) IN GENERAL.—The Secretary shall provide 

8 payments directly to eligible participants who enter 

9 into contracts described in subsection (j) in accord10 ance with such subsection. 

11 ‘‘(2) ESTABLISHMENT PAYMENTS.— 

12 ‘‘(A) IN GENERAL.—The Secretary shall 

13 provide to an eligible participant who enters 

14 into a BER contract an establishment payment 

15 in an amount equal to the costs of establishing 

16 an eligible dedicated energy crop on the con17 tract acreage covered by the contract. 

18 ‘‘(B) ELIGIBLE ESTABLISHMENT PAY19 MENTS.—The costs for which an eligible owner 

20 may receive an establishment payment under 

21 this paragraph include— 

22 ‘‘(i) the cost of seeds and stock; and 

23 ‘‘(ii) the cost of planting the crop. 

24 ‘‘(3) RENTAL PAYMENTS.— 
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1 ‘‘(A) IN GENERAL.—The Secretary shall 

2 make annual rental payments to an eligible par3 ticipant who enters into a BER contract. 

4 ‘‘(B) PERIOD.—An eligible participant 

5 shall receive rental payments for a period of not 

6 more than 5 years after entering into a BER 

7 contract with the Secretary on contract acreage. 

8 ‘‘(C) REDUCTION.—The Secretary shall re9 duce rental payments under (A) by an amount 

10 determined to be appropriate by the Secretary, 

11 if an eligible dedicated energy crop is harvested 

12 in accordance with subsection (g)(4). 

13 ‘‘(l) INFORMATION SHARING.— 

14 ‘‘(1) IN GENERAL.—Owners and operators of a 

15 farm entering into a contract with the Secretary 

16 under this section shall agree to make available to 

17 the Secretary, or to an institution of higher edu18 cation or other entity designated by the Secretary, 

19 such information as the Secretary considers to be 

20 appropriate to promote the production of bioenergy 

21 crops and the development of biorefinery technology; 

22 and 

23 ‘‘(2) BEST PRACTICES DATABASE.—Subject to 

24 section 1770 of the Food Security Act of 1985 (7 

25 U.S.C. 2276), the Secretary shall make available to 
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1 the public in a database format the best practices in2 formation developed by the Secretary in providing 

3 bioenergy assistance under this section. 

4 ‘‘(m) PAYMENTS FOR COLLECTING, HARVESTING, 

5 STORING, AND TRANSPORTING BIOMASS PRODUCED ON

6 BER CONTRACT ACREAGE, AGRICULTURAL WASTE BIO7 MASS, AND SUSTAINABLY-HARVESTED AGRICULTURAL

8 AND FOREST RESIDUES.— 

9 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

10 the Secretary may provide matching payments at a 

11 rate of $1 for every $1 per ton provided by the bio12 energy facility, in an amount equal to not more than 

13 $45 per ton for a period of two years— 

14 ‘‘(A) to eligible participants for biomass 

15 produced on BER contract acreage in exchange 

16 for a reduction of the annual payment issued 

17 under subsection (k)(3), as determined by the 

18 Secretary; 

19 ‘‘(B) to any producer of agricultural waste 

20 biomass or sustainably-harvested agricultural 

21 and forest residues in the United States for the 

22 agricultural waste or residue; and 

23 ‘‘(C) for residue collected as a result of the 

24 removal of noxious and invasive species, in ac-
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1 cordance with methods approved by the Sec2 retary. 

3 ‘‘(2) FOREST LAND OWNER ELIGIBILITY.— 

4 Owners of forest land shall be eligible to receive pay5 ments under this subsection only if such owners are 

6 acting pursuant to a forest stewardship plan. 

7 ‘‘(n) FUNDING.—Of the funds of the Commodity 

8 Credit Corporation, the Secretary shall use to carry out 

9 this section such sums as are necessary for each of fiscal 

10 years 2008 through 2012.’’. 

11 SEC. 9019. FOREST BIOMASS FOR ENERGY. 

12 Title IX of the Farm Security and Rural Investment 

13 Act of 2002 (7 U.S.C. 8101 et seq.) is further amended 

14 by adding at the end the following new section: 

15 ‘‘SEC. 9018. FOREST BIOMASS FOR ENERGY. 

16 ‘‘(a) IN GENERAL.—The Secretary of Agriculture, 

17 through the Forest Service, shall conduct a competitive 

18 research and development program to encourage use of 

19 forest biomass for energy. 

20 ‘‘(b) ELIGIBLE ENTITIES.—Entities eligible to com21 pete under this program include the Forest Service 

22 (through Research and Development), other Federal agen23 cies, State and local governments, federally recognized In24 dian tribes, land grant colleges and universities, and pri25 vate entities. 
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1 ‘‘(c) PRIORITY FOR PROJECT SELECTION.—The Sec2 retary shall give priority to projects that— 

3 ‘‘(1) develop technology and techniques to use 

4 low value forest biomass, such as byproducts of for5 est health treatments and hazardous fuels reduction, 

6 for the production of energy; 

7 ‘‘(2) develop processes that integrate production 

8 of energy from forest biomass into biorefineries or 

9 other existing manufacturing streams; 

10 ‘‘(3) develop new transportation fuels from for11 est biomass; and 

12 ‘‘(4) improve the growth and yield of trees in13 tended for renewable energy production. 

14 ‘‘(d) FUNDING.—Of the funds of the Commodity 

15 Credit Corporation, the Secretary shall make available to 

16 carry out this section $15,000,000 for each of fiscal years 

17 2008 through 2012.’’. 

18 SEC. 9019. COMMUNITY WOOD ENERGY PROGRAM. 

19 (a) FINDINGS.— Congress finds that— 

20 (1) the United States’ over-reliance on fossil 

21 fuel energy has placed undue strain on the nation by 

22 compromising our economy and national security; 

23 (2) the United States’ over-reliance on fossil 

24 fuel energy has also created new strains on our nat-
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1 ural systems, including carbon emissions that con2 tribute to climate change; 

3 (3) transportation of energy, such as heating 

4 oil, adds to carbon emissions associated with meet5 ing our community energy needs and therefore fur6 ther feeds climate change; 

7 (4) it is in the national interest to conserve en8 ergy and support adoption of new local, sustainable, 

9 efficient, and carbon neutral energy sources, such as 

10 wood energy, for community energy needs; 

11 (5) communities can save as much as 50 per12 cent over natural gas, 80 percent over propane, 80 

13 percent over electric heat, and 50 percent over oil 

14 heat by switching to wood energy for heating schools 

15 and other public buildings; 

16 (6) in fast growing communities of all sizes 

17 across the United States, municipal and country18 owned forest land is playing an essential role in 

19 meeting many public needs and could also be used 

20 to help support sustainable forestry and local wood 

21 energy applications; and 

22 (7) the rapidly expanding base of private forest 

23 land owners nationwide includes many individuals 

24 with no experience in forest stewardship who could 

25 be given technical assistance to provide locally 
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1 sourced wood supply through sustainable forest 

2 management for local wood energy applications. 

3 (b) PURPOSE.—The purpose of this section is to pro4 vide grants for community wood energy systems that are 

5 intended to— 

6 (1) meet community energy needs with reduced 

7 carbon intensity versus fossil fuel systems; 

8 (2) promote energy conservation and develop9 ment of new renewable energy sources; 

10 (3) aid local budgets by reducing municipal and 

11 county energy costs; 

12 (4) increase utilization of low value wood sup13 plies and waste, thereby strengthening the forest 

14 products economy for the benefit of forest workers 

15 and private forest land owners; and 

16 (5) increase awareness of energy conservation 

17 and consumption and the multiple-use values of for18 ests among community members, especially young 

19 people. 

20 (c) GRANT PROGRAM.—The Secretary of Agriculture, 

21 acting through the Forest Service, shall establish a pro22 gram to be known as the Community Wood Energy Pro23 gram to provide grants to State and local governments to 

24 acquire community wood energy systems for public build25 ings and to implement a community wood energy plan. 
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1 (d) USE IN PUBLIC BUILDINGS.—A State or local 

2 government receiving a grant under subsection (c) shall 

3 use a community wood energy system acquired in whole 

4 or in part with the use of grant funds for primary use 

5 in a public facility owned by such State or local govern6 ment. 

7 (e) LIMITATION.—A community wood energy system 

8 acquired with grant funds provided under subsection (c) 

9 shall not exceed an output of— 

10 (1) 50,000,000 BTU per hour for heating; and 

11 (2) 2 megawatts for electric power production. 

12 (f) COMMUNITY WOOD ENERGY PLAN.—Within 18 

13 months of receiving assistance under this section, commu14 nities shall utilize the technical assistance of the State for15 ester to create a community wood energy plan identifying 

16 how local forests can be accessed in a sustainable manner 

17 to help meet the wood supply needs of systems purchased 

18 under this section. 

19 (g) MATCHING FUNDS.—A State or local government 

20 receiving a grant under subsection (c) shall contribute an 

21 amount of non-Federal funds towards the acquisition of 

22 community wood energy systems that is at least equal to 

23 the amount of grant funds received by such State or local 

24 government. 
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1 (h) COMMUNITY WOOD ENERGY SYSTEM DE2 FINED.—The term ‘‘community wood energy system’’ in3 cludes single facility central heating, district heating, com4 bined heat and energy systems, and other related biomass 

5 energy systems that service schools, town halls, libraries, 

6 and other public buildings. 

7 (i) APPROPRIATION.— There are authorized to be ap8 propriated such sums as may be necessary to carry out 

9 this section. 

10 SEC. 9020. SUPPLEMENTING CORN AS AN ETHANOL FEED11 STOCK. 

12 (a) RESEARCH AND DEVELOPMENT PROGRAM.—The 

13 Secretary of Agriculture shall establish a program to make 

14 grants of not to exceed $1,000,000 each to no more than 

15 20 universities for a 3-year program of demonstration of 

16 supplementing corn as an ethanol feedstock with sweet 

17 sorghum and switchgrass. 

18 (b) PROGRAM GOALS.—The goals of the program 

19 under this section shall be to— 

20 (1) enhance agronomic efficiency of the crop on 

21 marginal lands by— 

22 (A) developing best management practices 

23 for maintaining high yields while using less 

24 water and nitrogen than corn; 
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1 (B) identifying and selecting plants with a 

2 high sugar content; and 

3 (C) developing cold-tolerant sweet sorghum 

4 varieties to enable two crops to be grown per 

5 season; 

6 (2) enhance ethanol processing potential in the 

7 crop by— 

8 (A) developing a robust technology for cen9 tralized ethanol production facilities that pair 

10 high-performing sweet sorghum lines with dif11 ferent yeasts to produce the best process for 

12 converting sweet sorghum juice into ethanol; 

13 (B) conducting process and chemical anal14 yses of sweet sorghum sap fermentation; 

15 (C) introducing cellulosic hydrolyzing en16 zymes into sweet sorghum to promote biomass 

17 conversion; and 

18 (D) performing life-cycle analysis of sweet 

19 sorghum ethanol, including analysis of energy 

20 yield, efficiency, and greenhouse gas reduction; 

21 (3) establish a production system optimized for 

22 the region of the university conducting the research; 

23 (4) improve sweet sorghum lines with higher 

24 sugar production and performance with minimal ag25 ricultural inputs; 
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1 (5) optimize sugar fermentation using selected 

2 yeast strains; 

3 (6) develop sweet sorghum lines with improved 

4 cold tolerance and cellulosic degradation; and 

5 (7) develop agricultural models for predicting 

6 agricultural performance and ethanol yield under 

7 various growing conditions. 

8 (c) AWARD CRITERIA.—The Secretary shall award 

9 grants under this section only to universities that— 

10 (1) have access to multiple lines of sweet sor11 ghum for research; and 

12 (2) are located in a State where sweet sorghum 

13 is anticipated to grow well on marginal lands. 

14 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated to the Secretary for car16 rying out this section $20,000,000. 

17 TITLE X—HORTICULTURE AND 

18 ORGANIC AGRICULTURE 

Subtitle A—Honey and Bees 

Sec. 10001. Annual report on response to honey bee colony collapse disorder. 

Subtitle B—Horticulture Provisions 

Sec. 10101. Tree assistance program. 

Sec. 10102. Specialty crop block grants. 

Sec. 10103. Additional section 32 funds for purchase of fruits, vegetables, and 

nuts to support domestic nutrition assistance programs. 

Sec. 10103A Additional section 32 funds to provide grants for the purchase 

and operation of urban gardens growing organic fruits and 

vegetables for the local population. 

Sec. 10104. Independent evaluation of Department of Agriculture commodity 

purchase process. 

Sec. 10105. Quality requirements for clementines. 
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Sec. 10106. Implementation of food safety programs under marketing orders. 

Sec. 10107. Inclusion of specialty crops in census of agriculture. 

Sec. 10108. Maturity requirements for Hass avocados. 

Sec. 10109. Mushroom promotion, research, and consumer information. 

Sec. 10110. Fresh produce education initiative. 

Subtitle C—Pest and Disease Management 

Sec. 10201. Pest and disease program. 

Sec. 10202. Multi-species fruit fly research and sterile fly production. 

Subtitle D—Organic Agriculture 

Sec. 10301. National organic certification cost-share program. 

Sec. 10302. Organic production and market data. 

Sec. 10303. Organic conversion, technical, and educational assistance. 

Subtitle E—Miscellaneous Provisions 

Sec. 10401. Grant program to improve movement of specialty crops. 

Sec. 10402. Authorization of appropriations for market news activities regarding specialty crops. 

Sec. 10403. Farmer marketing program. 

Sec. 10404. National Clean Plant Network. 

1 Subtitle A—Honey and Bees 

2 SEC. 10001. ANNUAL REPORT ON RESPONSE TO HONEY BEE 

3 COLONY COLLAPSE DISORDER. 

4 The Secretary of Agriculture shall submit to Con5 gress an annual report describing the progress made by 

6 the Department of Agriculture in investigating the cause 

7 or causes of honey bee colony collapse and in finding ap8 propriate strategies to reduce colony loss. 

9 Subtitle B—Horticulture 

10 Provisions 

11 SEC. 10101. TREE ASSISTANCE PROGRAM. 

12 (a) INCLUSION OF NURSERY TREE GROWERS.— 

13 (1) ELIGIBILITY.—Section 10201 of the Farm 

14 Security and Rural Investment Act of 2002 (7 

15 U.S.C. 8201) is amended— 
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1 (A) by redesignating paragraphs (3) and 

2 (4) as paragraphs (4) and (5), respectively; and 

3 (B) by inserting after paragraph (2) the 

4 following new paragraph: 

5 ‘‘(3) NURSERY TREE GROWER.—The term 

6 ‘nursery tree grower’ means a person who produces 

7 nursery, ornamental, fruit, nut, or Christmas trees 

8 for commercial sale, as determined by the Sec9 retary.’’. 

10 (2) CONFORMING AMENDMENTS.—Subtitle C of 

11 title X of the Farm Security and Rural Investment 

12 Act of 2002 is amended— 

13 (A) in section 10202 (7 U.S.C. 8202)— 

14 (i) in subsection (a), by inserting 

15 ‘‘and nursery tree growers’’ after ‘‘eligible 

16 orchardists’’; and 

17 (ii) in subsection (b), by inserting ‘‘or 

18 nursery tree grower’’ after ‘‘eligible or19 chardist’’; and 

20 (B) in section 10203 (7 U.S.C. 8203), by 

21 inserting ‘‘and nursery tree growers’’ after ‘‘eli22 gible orchardists’’. 

23 (b) ANNUAL PAYMENT LIMITATION.—Section 

24 10204(a) of the Farm Security and Rural Investment Act 
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1 of 2002 (7 U.S.C. 8204(a)) is amended by striking 

2 ‘‘$75,000’’ and inserting ‘‘$150,000 per year’’. 

3 (c) APPLICABILITY.—The amendments made by this 

4 section shall apply with respect to any natural disaster oc5 curring after the date of the enactment of this Act for 

6 which assistance is provided by the Secretary of Agri7 culture under the tree assistance program. 

8 SEC. 10102. SPECIALTY CROP BLOCK GRANTS. 

9 (a) EXTENSION OF PROGRAM.—Subsection (a) of 

10 section 101 of the Specialty Crops Competitiveness Act 

11 of 2004 (Public Law 108–465; 7 U.S.C. 1621 note) is 

12 amended by striking ‘‘2009’’ and inserting ‘‘2012’’. 

13 (b) AVAILABILITY OF FUNDS.—Subsection (i) of sec14 tion 101 of the Specialty Crops Competitiveness Act of 

15 2004 is amended to read as follows: 

16 ‘‘(i) FUNDING.—Of the funds of the Commodity 

17 Credit Corporation, the Secretary of Agriculture shall 

18 make grants under this section, using— 

19 ‘‘(1) $60,000,000 in fiscal year 2008; 

20 ‘‘(2) $65,000,000 in fiscal year 2009; 

21 ‘‘(3) $70,000,000 in fiscal year 2010; 

22 ‘‘(4) $75,000,000 in fiscal year 2011; and 

23 ‘‘(5) $95,000,000 in fiscal year 2012.’’. 
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1 (c) CONFORMING AMENDMENTS.—Section 101 of the 

2 Specialty Crops Competitiveness Act of 2004 (Public Law 

3 108–465; 7 U.S.C. 1621 note) is further amended— 

4 (1) in subsection (a), by striking ‘‘Subject to 

5 the appropriation of funds to carry out this section’’ 

6 and inserting ‘‘Using the funds made available 

7 under subsection (i)’’; 

8 (2) in subsection (b), by striking ‘‘appropriated 

9 pursuant to the authorization of appropriations in’’ 

10 and inserting ‘‘made available under’’; and 

11 (3) in subsection (c), by striking ‘‘Subject to 

12 the appropriation of sufficient funds to carry out 

13 this subsection, each’’ and inserting ‘‘Each’’. 

14 (d) DEFINITION OF SPECIALTY CROP.—Section 3(1) 

15 of the Specialty Crops Competitiveness Act of 2004 (Pub16 lic Law 108–465; 7 U.S.C. 1621 note) is amended by in17 serting ‘‘horticulture and’’ before ‘‘nursery’’. 

18 (e) DEFINITION OF STATE.—Section 3(2) of the Spe19 cialty Crops Competitiveness Act of 2004 (Public Law 

20 108–465; 7 U.S.C. 1621 note) is amended by striking 

21 ‘‘and the Commonwealth of Puerto Rico’’ and inserting 

22 ‘‘the Commonwealth of Puerto Rico, Guam, American 

23 Samoa, the United States Virgin Islands, and the Com24 monwealth of the Northern Mariana Islands’’. 
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1 SEC. 10103. ADDITIONAL SECTION 32 FUNDS FOR PUR2 CHASE OF FRUITS, VEGETABLES, AND NUTS 

3 TO SUPPORT DOMESTIC NUTRITION ASSIST4 ANCE PROGRAMS. 

5 (a) FUNDING FOR ADDITIONAL PURCHASES OF

6 FRUITS, VEGETABLES, AND NUTS.—In addition to the 

7 purchases of fruits, vegetables, and nuts required by sec8 tion 10603 of the Farm Security and Rural Investment 

9 Act of 2002 (7 U.S.C. 612c–4), the Secretary of Agri10 culture shall purchase fruits, vegetables, and nuts for the 

11 purpose of providing nutritious foods for use in domestic 

12 nutrition assistance programs, using, of the funds made 

13 available under section 32 of the Act of August 24, 1935 

14 (7 U.S.C. 612c), the following amounts: 

15 (1) $190,000,000 in fiscal year 2008. 

16 (2) $193,000,000 in fiscal year 2009. 

17 (3) $199,000,000 in fiscal year 2010. 

18 (4) $203,000,000 in fiscal year 2011. 

19 (5) $206,000,000 in fiscal year 2012 and each 

20 fiscal year thereafter. 

21 (b) FORM OF PURCHASES.—Fruits, vegetables, and 

22 nuts may be purchased under this section in the form of 

23 frozen, canned, dried, or fresh fruits, vegetables, and nuts. 

24 (c) VALUE ADDED PRODUCTS.—The Secretary may 

25 consider offering value-added products containing fruits, 
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1 vegetables or nuts under this section, taking into ac2 count— 

3 (1) whether demand exists for the value-added 

4 product; and 

5 (2) the interests of entities that receive fruits, 

6 vegetables, and nuts under this section. 

7 SEC. 10103A. ADDITIONAL SECTION 32 FUNDS TO PROVIDE 

8 GRANTS FOR THE PURCHASE AND OPER9 ATION OF URBAN GARDENS GROWING OR10 GANIC FRUITS AND VEGETABLES FOR THE 

11 LOCAL POPULATION. 

12 (a) GRANTS.—The Secretary of Agriculture may 

13 make grants to eligible entities to assist in purchasing and 

14 operating organic gardens or greenhouses in urban areas 

15 for growing fruits and vegetables. In making such grants, 

16 the Secretary will ensure such fruits and vegetables are 

17 sold to local grocery stores. 

18 (b) LIMITATIONS.—Grants provided to any eligible 

19 entity under this section may not exceed $25,000 for any 

20 given year. 

21 (c) ELIGIBLE ENTITIES.— 

22 (1) INDIVIDUALS.—An individual shall be eligi23 ble to receive a grant under subsection (a) if the in24 dividual is a resident of the neighborhood in which 
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1 the urban garden or greenhouse is located, or will be 

2 located. 

3 (2) COOPERATIVES.—A cooperative shall be eli4 gible to receive a grant under subsection (a) if every 

5 individual member or owner of the cooperative is a 

6 resident of the neighborhood in which the urban gar7 den or greenhouse is located, or will be located. 

8 (d) SELECTION OF ELIGIBLE ENTITIES.—The Sec9 retary shall develop criteria for the selection of eligible en10 tities to receive grants under this section. 

11 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

12 authorized to be appropriated to carry out this section 

13 $20,000,000 for fiscal year 2008 and for each fiscal year 

14 thereafter. 

15 SEC. 10104. INDEPENDENT EVALUATION OF DEPARTMENT 

16 OF AGRICULTURE COMMODITY PURCHASE 

17 PROCESS. 

18 (a) EVALUATION REQUIRED.—The Secretary of Agri19 culture shall arrange to have performed an independent 

20 evaluation of the commodity purchasing processes (and 

21 the statutory and regulatory authority underlying such 

22 processes) used by the Department of Agriculture to re23 move surplus commodities from the market and support 

24 commodity prices and producer incomes, especially with 

25 regard to activities under section 32 of the Act of August 
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1 24, 1935 (7 U.S.C. 612c) and the importance of increas2 ing purchases of specialty crops. 

3 (b) SUBMISSION OF RESULTS.—Not later than one 

4 year after the date of the enactment of this Act, the Sec5 retary of Agriculture shall submit to Congress a report 

6 on the results of the evaluation. 

7 SEC. 10105. QUALITY REQUIREMENTS FOR CLEMENTINES. 

8 Section 8e(a) of the Agricultural Adjustment Act (7 

9 U.S.C. 608e–1(a)), reenacted with amendments by the Ag10 ricultural Marketing Agreement Act of 1937, is amended 

11 in the first sentence by inserting after ‘‘nectarines,’’ the 

12 following: ‘‘clementines,’’. 

13 SEC. 10106. IMPLEMENTATION OF FOOD SAFETY PRO14 GRAMS UNDER MARKETING ORDERS. 

15 Section 8c(6) of the Agricultural Adjustment Act (7 

16 U.S.C. 608c(6)), reenacted with amendments by the Agri17 cultural Marketing Agreement Act of 1937, is amended 

18 by adding at the end the following: 

19 ‘‘(K) In the case of an order related to a specialty 

20 crop (as such term is defined in section 3(1) of the Spe21 cialty Crops Competitiveness Act of 2004 (Public Law 

22 108–465; 118 Stat. 3883)), authorizing the implementa23 tion of quality-related food safety programs designed to 

24 enhance the safety of the specialty crop and products de25 rived from specialty crops.’’. 
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1 SEC. 10107. INCLUSION OF SPECIALTY CROPS IN CENSUS 

2 OF AGRICULTURE. 

3 Section 2(a) of the Census of Agriculture Act of 1997 

4 (7 U.S.C. 2204g(a) is amended by adding at the end the 

5 following new sentence: ‘‘Beginning with the census of ag6 riculture required to be conducted in 2008, the Secretary 

7 shall conduct as part of each census of agriculture a cen8 sus of specialty crops (as such term is defined in section 

9 3(1) of the Specialty Crops Competitiveness Act of 2004 

10 (Public Law 108–465; 118 Stat. 3883)).’’. 

11 SEC. 10108. MATURITY REQUIREMENTS FOR HASS AVOCA12 DOS. 

13 Subtitle A of the Agricultural Marketing Act of 1946 

14 is amended by adding at the end the following new section: 

15 ‘‘SEC. 209. MATURITY REQUIREMENTS FOR HASS AVOCA16 DOS. 

17 ‘‘(a) MINIMUM PERCENTAGE OF DRY MATTER.—Not 

18 later than 180 days after the date of the enactment of 

19 the Farm, Nutrition, and Bioenergy Act of 2007, the Sec20 retary of Agriculture shall issue final regulations to re21 quire that all Hass avocados sold to consumers in the 

22 United States meet the minimum maturity standard of not 

23 less than 20.8 percent dry matter. 

24 ‘‘(b) EXCEPTIONS.—Subsection (a) and the regula25 tions issued pursuant to such subsection shall not apply 

26 to Hass avocados— 
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1 ‘‘(1) intended for consumption by charitable in2 stitutions; 

3 ‘‘(2) intended for distribution by relief agencies; 

4 ‘‘(3) intended for commercial processing into 

5 products; or 

6 ‘‘(4) that the Secretary determines should not 

7 be subject to such subsection or such regulations. 

8 ‘‘(c) USE OF EXISTING INSPECTORS.—The Secretary 

9 shall, to the greatest extent practicable, use inspectors 

10 that inspect avocados for compliance with section 8e of 

11 the Agricultural Adjustment Act (7 U.S.C. 608e–1), reen12 acted with amendments by the Agricultural Marketing 

13 Agreement Act of 1937, to conduct inspections under this 

14 section. 

15 ‘‘(d) CIVIL PENALTIES.—The Secretary may require 

16 any person who violates this section or the regulations 

17 issued pursuant to this section to— 

18 ‘‘(1) forfeit to the United States a sum equal 

19 to the value of the commodity at the time of viola20 tion, which forfeiture shall be recoverable in a civil 

21 suit bought in the name of the United States; or 

22 ‘‘(2) on conviction, be fined not less than $50 

23 or more than $5,000 for each violation. 

24 ‘‘(e) DIVERSION.—In the case of any Hass avocados 

25 that do not meet the requirements of this section or the 
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1 regulations issued pursuant to this section, the Secretary 

2 may— 

3 ‘‘(1) provide for the reinspection of the Hass 

4 avocados; or 

5 ‘‘(2) authorize the diversion, export, or repack6 ing of the Hass avocados. 

7 ‘‘(f) FEES.—The Secretary may prescribe and collect 

8 fees to cover the costs of providing for the inspection of 

9 Hass avocados under this section. All fees and penalties 

10 collected shall be credited to the accounts that incur such 

11 costs and shall remain available until expended without 

12 fiscal year limitation. 

13 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated such sums as may be 

15 necessary to carry out this section.’’. 

16 SEC. 10109. MUSHROOM PROMOTION, RESEARCH, AND CON17 SUMER INFORMATION. 

18 (a) REGIONS AND MEMBERS.—Section 1925(b)(2) of 

19 the Mushroom Promotion, Research, and Consumer Infor20 mation Act of 1990 (subtitle B of title XIX of Public Law 

21 101–624; 7 U.S.C. 6104(b)(2)) is amended— 

22 (1) in subparagraph (B), by striking ‘‘4 re23 gions’’ and inserting ‘‘3 regions’’; 
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1 (2) in subparagraph (D), by striking 

2 ‘‘35,000,000 pounds’’ and inserting ‘‘50,000,000 

3 pounds’’; and 

4 (3) by striking subparagraph (E), and inserting 

5 the following new subparagraph: 

6 ‘‘(E) ADDITIONAL MEMBERS.—In addition 

7 to the members appointed pursuant to para8 graph (1), and subject to the nine-member limit 

9 of members on the council provided in such 

10 paragraph, the Secretary shall appoint addi11 tional members to the council from a region 

12 which attains additional pounds of production 

13 as follows: 

14 ‘‘(i) If a region’s annual production is 

15 greater than 110,000,000 pounds, but less 

16 than or equal to 180,000,000 pounds, the 

17 region shall be represented by one addi18 tional member. 

19 ‘‘(ii) If a region’s annual production is 

20 greater than 180,000,000 pounds, but less 

21 than or equal to 260,000,000 pounds, the 

22 region shall be represented by two addi23 tional members. 

24 ‘‘(iii) If a region’s annual production 

25 is greater than 260,000,000 pounds, the 
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1 region shall be represented by three addi2 tional members.’’. 

3 (b) POWERS AND DUTIES OF COUNCIL.—Section 

4 1925(c) of the Mushroom Promotion, Research, and Con5 sumer Information Act of 1990 (subtitle B of title XIX 

6 of Public Law 101–624; 7 U.S.C. 6104(c)) is amended— 

7 (1) by redesignating paragraphs (6), (7), and 

8 (8) as paragraphs (7), (8), and (9), respectively; and 

9 (2) by inserting after paragraph (5), the fol10 lowing new paragraph (6): 

11 ‘‘(6) to develop a program for good agricultural 

12 practices and good handling practices for mush13 rooms;’’. 

14 SEC. 10110. FRESH PRODUCE EDUCATION INITIATIVE. 

15 (a) INITIATIVE AUTHORIZED.—The Secretary of Ag16 riculture may carry out a program to educate persons in17 volved in the fresh produce industry and the public 

18 about— 

19 (1) scientifically proven practices for reducing 

20 microbiological pathogens on fresh produce; and 

21 (2) methods of reducing the threat of cross-con22 tamination of fresh produce through unsanitary han23 dling practices. 

24 (b) COOPERATION.—The Secretary may carry out the 

25 program in cooperation with public or private partners. 
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1 (c) FUNDING.—There are authorized to be appro2 priated such sums as are necessary for each of fiscal years 

3 2008 through 2012 to carry out this section. 

4 Subtitle C—Pest and Disease 

5 Management 

6 SEC. 10201. PEST AND DISEASE PROGRAM. 

7 (a) ESTABLISHMENT.—The Secretary of Agriculture 

8 shall establish a program to— 

9 (1) conduct early pest detection and surveil10 lance activities in cooperation with state depart11 ments of agriculture; 

12 (2) determine and prioritize pest and disease 

13 threats to domestic production of specialty crops; 

14 and 

15 (3) create an audit-based certification approach 

16 to protect against the spread of plant pests and to 

17 facilitate the interstate movement of plants and 

18 plant products. 

19 (b) EARLY PEST DETECTION AND SURVEILLANCE

20 IMPROVEMENT PROGRAM.— 

21 (1) COOPERATIVE AGREEMENTS.—The Sec22 retary of Agriculture shall enter into cooperative 

23 agreements with State departments of agriculture to 

24 provide grants to such State departments of agri-
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1 culture for early pest detection and surveillance ac2 tivities. 

3 (2) APPLICATION.—A State department of agri4 culture seeking to enter into a cooperative agree5 ment under this subsection shall submit to the Sec6 retary an application containing such information as 

7 the Secretary may require. The Secretary shall no8 tify applicants of the following: 

9 (A) The requirements to be imposed on a 

10 department of agriculture for auditing of, and 

11 reporting on, the use of any funds provided by 

12 the Secretary under the cooperative agreement. 

13 (B) The criteria to be used to ensure that 

14 early pest detection and surveillance activities 

15 supported under the cooperative agreement are 

16 based on sound scientific data or thorough risk 

17 assessments. 

18 (C) The means of identifying pathways of 

19 pest introductions. 

20 (3) USE OF FUNDS.— 

21 (A) PEST DETECTION AND SURVEILLANCE

22 ACTIVITIES.—A State department of agriculture 

23 that receives funds under this section shall use 

24 the funds to carry out early pest detection and 
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1 surveillance activities approved by the Secretary 

2 to prevent the introduction or spread of a pest. 

3 (B) SUBAGREEMENTS.—A State depart4 ment of agriculture may use funds received 

5 under this section to enter into subagreements 

6 with political subdivisions in such State that 

7 have legal responsibilities relating to agricul8 tural pest and disease surveillance. 

9 (4) SPECIAL FUNDING CONSIDERATIONS.—The 

10 Secretary shall provide, subject to the availability of 

11 funds under subsection (j), funds to a State depart12 ment of agriculture that the Secretary determines is 

13 in a State that has a high risk of being affected by 

14 one or more pest, based on the following factors: 

15 (A) The number of international airports 

16 and maritime facilities in that State. 

17 (B) The volume of international passenger 

18 and cargo entry into that State. 

19 (C) The geographic location of that State 

20 and if such location is conducive to agricultural 

21 pest and disease establishment due to the cli22 mate or crop diversity of that State. 

23 (D) The types of agricultural commodities 

24 or plants produced in that State and if the 

25 commodities or plants produced are conducive 
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1 to agricultural pest and disease establishment 

2 due to the climate or crop diversity of that 

3 State. 

4 (E) Whether the Secretary has declared an 

5 emergency in that State pursuant to section 

6 442 of the Plant Protection Act (7 U.S.C. 

7 7772) due to an agricultural pest or disease of 

8 Federal concern. 

9 (F) Such other factors as the Secretary 

10 considers appropriate. 

11 (5) COST-SHARE.— 

12 (A) FEDERAL COST SHARE; FORM OF NON13 FEDERAL COST SHARE.—Except as provided in 

14 subparagraph (B), a cooperative agreement en15 tered into under paragraph (1) shall provide 

16 that— 

17 (i) the Federal share of carrying out 

18 the cooperative agreement shall not exceed 

19 75 percent of the total cost; 

20 (ii) the non-Federal share of the cost 

21 of carrying out the agreement may be pro22 vided in-kind; and 

23 (iii) in-kind costs may include indirect 

24 costs as considered appropriate by the Sec25 retary. 
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1 (B) ABILITY TO PROVIDE FUNDS.—The 

2 Secretary shall not take the ability to provide 

3 non-Federal costs to carry out a cooperative 

4 agreement entered into under paragraph (1) 

5 into consideration when deciding whether to 

6 enter into a cooperative agreement with a State 

7 department of agriculture. 

8 (C) SPECIAL FUNDING CONSIDER9 ATIONS.—The non-federal share of carrying out 

10 paragraph (4) shall not exceed 40 percent of 

11 the total costs of carrying out such paragraph. 

12 (6) REPORTING REQUIREMENT.—Not later than 

13 180 days after the date of completion of an early 

14 pest detection and surveillance activity conducted by 

15 a State department of agriculture using funds pro16 vided under this section, the department of agri17 culture shall submit to the Secretary a report that 

18 describes the purposes and results of the activities, 

19 including any activities conducted pursuant to a sub20 agreement referred to in paragraph (3)(B). 

21 (c) THREAT IDENTIFICATION AND MITIGATION PRO22 GRAM.— 

23 (1) IN GENERAL.—In conducting the program 

24 established under subsection (a), the Secretary 

25 shall— 
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1 (A) develop risk assessments of the exist2 ing and potential threat to the specialty crop in3 dustry in the United States from pests and dis4 ease; 

5 (B) prepare a list prioritizing pest and dis6 ease threats to the specialty crop industry; 

7 (C) develop action plans, in consultation 

8 with State departments of agriculture and other 

9 State or regional resource partnerships, that ef10 fectively address pest and disease threats to the 

11 specialty crop industry, including pathway anal12 ysis, domestic and offshore mitigation meas13 ures, and comprehensive exclusion measures at 

14 ports of entry and other key distribution cen15 ters, in addition to strategies to employ if a 

16 pest or disease is introduced; 

17 (D) implement such action plans as soon 

18 as they are developed to test the effectiveness of 

19 such action plans and help prevent new foreign 

20 and domestic pest and disease threats from 

21 being introduced or widely disseminated in the 

22 United States; and 

23 (E) collaborate with the nursery industry, 

24 research institutions, and other appropriate en25 tities to develop a nursery pest risk manage-
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1 ment system to identify nursery pests and dis2 eases, prevent the introduction, establishment, 

3 and spread of such pests and diseases, and re4 duce the risk of, prioritize, mitigate, and eradi5 cate such pests and diseases. 

6 (2) REPORTS.—Not later than one year after 

7 the date of the enactment of this Act, and annually 

8 thereafter, the Secretary shall update and submit to 

9 Congress the priority list and action plans described 

10 in paragraph (1), including an accounting of funds 

11 expended on the action plans. 

12 (d) AUDIT-BASED APPROACH TO SPECIALTY CROP

13 PHYTOSANITARY CERTIFICATION.—In conducting the 

14 program established under subsection (a), the Secretary 

15 shall provide funds and technical assistance to specialty 

16 crop growers, organizations representing such growers, 

17 and State and local agencies working with such growers 

18 and organizations for the development and implementation 

19 of certification systems based on audit-based approaches, 

20 such as best management practices or nursery pest risk 

21 management systems, to address plant pests and to miti22 gate the risk of plant pests in the movement of plants and 

23 plant products. 

24 (e) COOPERATIVE AGREEMENTS.—The Secretary 

25 may enter into cooperative agreements with other Federal 
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1 departments or agencies, States or political subdivisions 

2 of States, national governments, local governments of 

3 other nations, domestic or international organizations, do4 mestic or international associations, and other persons to 

5 carry out this section. 

6 (f) CONSULTATION.—The Secretary shall consult 

7 with the National Plant Board, State departments of agri8 culture, and specialty crop grower organizations to estab9 lish funding priorities under this section for each fiscal 

10 year. 

11 (g) ADMINISTRATIVE COSTS.—Not more than 5 per12 cent of the funds provided under this section may be used 

13 for administrative costs. 

14 (h) DEFINITIONS.—In this section: 

15 (1) EARLY PEST DETECTION AND SURVEIL16 LANCE.—The term ‘‘early pest detection and surveil17 lance’’ means the full range of activities undertaken 

18 to find newly introduced pests, whether new to the 

19 United States or new to certain areas of the United 

20 States, before the pests become established, or be21 fore pest infestations become too large and costly to 

22 eradicate or control. 

23 (2) PEST.—The term ‘‘pest’’ has the meaning 

24 given the term ‘‘plant pest’’ in section 403(14) of 

25 the Plant Protection Act (7 U.S.C. 7702(14)). 
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1 (3) SPECIALTY CROP.—The term ‘‘specialty 

2 crop’’ has the meaning given the term in section 

3 3(1) of the Specialty Crop Competitiveness Act of 

4 2004 (Public Law 108–465; 118 Stat. 3883; 7 

5 U.S.C. 1621 note). 

6 (4) STATE DEPARTMENT OF AGRICULTURE.— 

7 The term ‘‘State department of agriculture’’ means 

8 an agency of a State that has a legal responsibility 

9 to perform early pest detection and surveillance ac10 tivities. 

11 (i) SECRETARIAL DISCRETION.—Section 442(c) of 

12 the Plant Protection Act (7 U.S.C. 7772(c)) is amended 

13 by striking ‘‘of longer than 60 days’’. 

14 (j) FUNDING.—Of the funds of the Commodity Credit 

15 Corporation, the Secretary shall make available to carry 

16 out this section— 

17 (1) $10,000,000 for fiscal year 2008; 

18 (2) $25,000,000 for fiscal year 2009; 

19 (3) $40,000,000 for fiscal year 2010; 

20 (4) $55,000,000 for fiscal year 2011; and 

21 (5) $70,000,000 for fiscal year 2012. 

22 SEC. 10202. MULTI-SPECIES FRUIT FLY RESEARCH AND 

23 STERILE FLY PRODUCTION. 

24 (a) CONSTRUCTION.—The Secretary of Agriculture 

25 shall construct a warehouse and irradiation containment 
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1 facility in Waimanalo, Hawaii, to support fruit fly rearing 

2 and sterilization activities. 

3 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated— 

5 (1) $15,000,000 for the construction of a ware6 house and irradiation containment facility pursuant 

7 to subsection (a); and 

8 (2) $1,000,000 for fiscal year 2008 and each 

9 subsequent fiscal year for maintenance to the facili10 ties constructed pursuant to this section. 

11 Subtitle D—Organic Agriculture 

12 SEC. 10301. NATIONAL ORGANIC CERTIFICATION COST13 SHARE PROGRAM. 

14 Section 10606 of the Farm Security and Rural In15 vestment Act of 2002 (7 U.S.C. 6523) is amended— 

16 (1) in subsection (a), by striking ‘‘$5,000,000 

17 for fiscal year 2002’’ and inserting ‘‘$22,000,000 for 

18 fiscal year 2008’’; and 

19 (2) in subsection (b)(2), by striking ‘‘$500’’ 

20 and inserting ‘‘$750’’. 

21 SEC. 10302. ORGANIC PRODUCTION AND MARKET DATA. 

22 (a) NEW DATA REQUIREMENTS.—Section 7407 of 

23 the Farm Security and Rural Investment Act of 2002 (7 

24 U.S.C. 5925c) is amended to read as follows: 
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1 ‘‘SEC. 7407. ORGANIC DATA COLLECTION AND PUBLICA2 TION. 

3 ‘‘(a) DATA COLLECTION AND PUBLICATION.—To as4 sist organic farmers in making informed production and 

5 marketing decisions, the Secretary of Agriculture shall col6 lect and publish segregated data and survey information 

7 about the price, production, and marketing of major or8 ganically produced commodities, as determined by the Sec9 retary. 

10 ‘‘(b) FUNDING.—The Secretary of Agriculture shall 

11 use $3,000,000 of the funds of the Commodity Credit Cor12 poration to carry out this section during fiscal year 2008, 

13 and such funds shall remain available until expended.’’. 

14 (b) IMPLEMENTATION REPORT.—Not later than 180 

15 days after the date of the enactment of this Act, the Sec16 retary of Agriculture shall submit to Congress a report 

17 regarding the progress made in implementing the amend18 ment made by subsection (a). 

19 SEC. 10303. ORGANIC CONVERSION, TECHNICAL, AND EDU20 CATIONAL ASSISTANCE. 

21 (a) ESTABLISHMENT.—Not later than 180 days after 

22 the date of the enactment of this section, the Secretary 

23 shall establish a program to provide cost share and incen24 tive payments and technical and educational assistance to 

25 producers to promote conservation practices and activities 

26 for production systems undergoing transition, in whole or 
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1 in part, to organic production in accordance with the Or2 ganic Foods Production Act of 1990 (7 U.S.C. 6501 et 

3 seq.). 

4 (b) ORGANIC TRANSITION COST SHARE AND INCEN5 TIVE PAYMENTS.— 

6 (1) IN GENERAL.—The Secretary shall enter 

7 into contracts with eligible producers referred to in 

8 paragraph (2) to provide cost-share and incentive 

9 payments to assist in the transition to organic pro10 duction systems. 

11 (2) ELIGIBLE PRODUCERS.—A producer is an 

12 eligible producer under this paragraph if such pro13 ducer agrees to— 

14 (A) develop and carry out environmental 

15 and conservation activities consistent with an 

16 organic plan that protect soil, water, wildlife, 

17 air, and other natural resources as defined by 

18 the Secretary; 

19 (B) receive technical and education assist20 ance from the Secretary, or from organizations, 

21 institutions, and consultants with cooperative 

22 agreements with the Secretary, relating to— 

23 (i) the development and implementa24 tion of conservation practices and activities 

25 that are part of an organic plan; or 
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1 (ii) other aspects of transition to or2 ganic production, including marketing, 

3 credit, business, and risk management 

4 plans; 

5 (C) submit to annual verification by a cer6 tifying agent accredited by the Department of 

7 Agriculture under section 2115 of the Organic 

8 Foods Production Act of 1990 (7 U.S.C. 6514) 

9 to determine compliance of the producer with 

10 organic certification requirements; and 

11 (D) develop marketing, credit, business, 

12 and risk management plans, as appropriate. 

13 (3) CONTRACT.—A contract entered into under 

14 paragraph (1) shall provide that— 

15 (A) payments provided to a producer under 

16 the contract shall only be used for— 

17 (i) conservation management and veg18 etative and structural practices and activi19 ties during transition to certified organic 

20 production that— 

21 (I) are consistent with an organic 

22 plan; and 

23 (II) protect soil, water, wildlife, 

24 air, and other natural resources, as 

25 required under the Organic Foods 
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1 Production Act of 1990 (7 U.S.C. 

2 6501 et seq.); 

3 (ii) animal production measures con4 sistent with an organic plan; and 

5 (iii) such other measures as the Sec6 retary determines are appropriate and con7 sistent with an organic plan; 

8 (B) subject to subparagraph (C), the con9 tract shall terminate after a period of not more 

10 than three years; 

11 (C) the Secretary may terminate the con12 tract if the Secretary determines the eligible 

13 producer is not pursuing organic certification 

14 under the Organic Foods Production Act of 

15 1990 (7 U.S.C. 6501 et seq.); and 

16 (D) the Secretary may require repayment 

17 in whole of payments already received if the 

18 Secretary determines the eligible producer is 

19 not pursuing organic certification under the Or20 ganic Foods Production Act of 1990 (7 U.S.C. 

21 6501 et seq.). 

22 (4) LIMITATIONS ON PAYMENTS.—An eligible 

23 producer may not receive payments under paragraph 

24 (1)— 
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1 (A) for a total period of more than three 

2 years; 

3 (B) an amount not to exceed $50 per acre 

4 for crop land, or $25 per acre for grazing land; 

5 and 

6 (C) in an amount more than $10,000 in a 

7 fiscal year. 

8 (c) TECHNICAL AND EDUCATIONAL ASSISTANCE.— 

9 The Secretary shall provide producers with technical and 

10 educational assistance, including through the use of com11 petitive cooperative agreements with non-profit organiza12 tions, non-governmental organizations, institutes of higher 

13 education, or consultants with expertise in advisory serv14 ices for organic producers on organic production systems, 

15 and the planning for and marketing of organic products. 

16 (d) USE OF FUNDS.—The Secretary shall use 50 per17 cent of the funds made available pursuant to the author18 ization of appropriations under subsection (f) to provide 

19 technical and educational assistance under subsection (c). 

20 (e) DEFINITIONS.—In this section: 

21 (1) ORGANIC PLAN.—The term ‘‘organic plan’’ 

22 means an organic plan submitted under section 

23 2114(a) of the Organic Foods Production Act of 

24 1990 (7 U.S.C. 6513(a)) and agreed to by the pro-
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1 ducer and handler of a product and a certifying 

2 agent under such section. 

3 (2) TECHNICAL AND EDUCATIONAL ASSIST4 ANCE.—The term ‘‘technical and educational assist5 ance’’ means the conveyance of information and 

6 counsel regarding economic and business planning, 

7 marketing, and organic practices, such as entomo8 logical practices and pest and weed control and pre9 vention that satisfy organic practices. 

10 (f) FUNDING.—There is authorized to be appro11 priated to carry out this section $50,000,000, which shall 

12 remain available until expended. 

13 Subtitle E—Miscellaneous 

14 Provisions 

15 SEC. 10401. GRANT PROGRAM TO IMPROVE MOVEMENT OF 

16 SPECIALTY CROPS. 

17 (a) GRANTS AUTHORIZED.—The Secretary of Agri18 culture may make grants under this section to an eligible 

19 entity described in subsection (b)— 

20 (1) to improve the cost-effective movement of 

21 specialty crops to local, regional, national, and inter22 national markets; and 

23 (2) to address regional intermodal transpor24 tation deficiencies that adversely affect the move-
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1 ment of specialty crops to markets inside or outside 

2 the United States. 

3 (b) ELIGIBLE GRANT RECIPIENTS.—Grants may be 

4 made under this section to any of the following (or a com5 bination thereof): 

6 (1) State and local governments. 

7 (2) Grower cooperatives. 

8 (3) State or regional producer and shipper or9 ganizations. 

10 (4) Other entities as determined to be appro11 priate by the Secretary. 

12 (c) MATCHING FUNDS.—The recipient of a grant 

13 under this section shall contribute an amount of non-Fed14 eral funds toward the project for which the grant is pro15 vided that is at least equal to the amount of grant funds 

16 received by the recipient under this section. 

17 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

18 are authorized to be appropriated such sums as may be 

19 necessary for each of fiscal years 2008 through 2012 to 

20 carry out this section. 

21 SEC. 10402. AUTHORIZATION OF APPROPRIATIONS FOR 

22 MARKET NEWS ACTIVITIES REGARDING SPE23 CIALTY CROPS. 

24 There are authorized to be appropriated to the Sec25 retary of Agriculture such sums as may be necessary for 
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1 each of the fiscal years 2008 through 2012 to support the 

2 market news activities regarding specialty crops (as such 

3 term is defined in section 3(1) of the Specialty Crops Com4 petitiveness Act of 2004 (Public Law 108–465; 118 Stat. 

5 3883)). 

6 SEC. 10403. FARMER MARKETING ASSISTANCE PROGRAM. 

7 (a) FINDINGS.—Congress finds that— 

8 (1) agricultural direct farmer-to-consumer mar9 keting activities, including farmers’ markets, road10 side stands, community supported agriculture, inter11 net, mail-order, and other similar direct order mar12 keting activities, significantly enhance the ability of 

13 agricultural producers to retain a greater share of 

14 their products’ retail value; 

15 (2) direct farmer-to-consumer marketing activi16 ties are a crucial component of the current and fu17 ture viability of small and mid-sized farms and 

18 ranches and beginning and socially disadvantaged 

19 farmers and ranchers; and 

20 (3) agricultural direct marketing activities con21 tribute to the health and well-being of consumers in 

22 rural, urban, and tribal communities by providing 

23 access to healthy, fresh, and affordable food. 
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1 (b) PROGRAM.—Section 6 of the Farmer-to-Con2 sumer Direct Marketing Act of 1976 (7 U.S.C. 3005) is 

3 amended— 

4 (1) in subsection (a)— 

5 (A) by striking ‘‘Farmers’ Market Pro6 motion Program’’ and inserting ‘‘Farmer Mar7 keting Assistance Program’’; and 

8 (B) by striking ‘‘promote farmers’ mar9 kets’’ and inserting ‘‘direct producer to con10 sumer marketing’’; 

11 (2) in subsection (b)(1)— 

12 (A) in subparagraph (A), by striking ‘‘, do13 mestic farmers’ markets, roadside stands, com14 munity-supported agriculture programs, and 

15 other’’; and 

16 (B) in subparagraph (B), by striking 

17 ‘‘farmers’ markets, roadside stands, commu18 nity-supported agriculture programs, and other 

19 direct producer-to-consumer infrastructure’’ 

20 and inserting ‘‘direct producer-to-consumer 

21 marketing and infrastructure opportunities’’; 

22 (3) in subsection (c)— 

23 (A) by redesignating paragraphs (1) 

24 through (7) as paragraphs (2) through (8), re25 spectively; 
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•HR 2419 EH1S 

1 (B) by inserting before paragraph (2) the 

2 following new paragraph: 

3 ‘‘(1) two or more farmers or farm vendors who 

4 sell products through a common channel of distribu5 tion;’’; and 

6 (C) in paragraph (2) (as so redesignated) 

7 by striking ‘‘an agricultural cooperative’’ and 

8 inserting ‘‘an agricultural cooperative or pro9 ducer network or association’’; 

10 (4) by striking subsection (e) and inserting the 

11 following new subsections: 

12 ‘‘(e) ELIGIBLE ACTIVITIES.—A recipient of a grant 

13 under this section may use the funds for the following ac14 tivities: 

15 ‘‘(1) Farmers markets. 

16 ‘‘(2) Roadside stands. 

17 ‘‘(3) Community supported agriculture oper18 ations, through which a farmer agrees to deliver a 

19 certain quantity of agricultural products to con20 sumers at a set price. 

21 ‘‘(4) The purchase of equipment or other activi22 ties supporting the use of electronic benefit transfer 

23 systems at farmers markets. 

24 ‘‘(5) Agritourism activities facilitating the di25 rect sale of agricultural products, including oper-
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•HR 2419 EH1S 

1 ations where the consumer picks their own agricul2 tural products. 

3 ‘‘(6) Other activities as determined appropriate 

4 by the Secretary. 

5 ‘‘(f) FUNDING.— 

6 ‘‘(1) IN GENERAL.—Of the funds of the Com7 modity Credit Corporation, the Secretary of Agri8 culture shall use to carry out this section— 

9 ‘‘(A) $5,000,000 in each of fiscal year 

10 2008, 2009, and 2010; and 

11 ‘‘(B) $10,000,000 in each of fiscal years 

12 2011 and 2012. 

13 ‘‘(2) USE OF FUNDS.—Not less than 10 percent 

14 of the funds used to carry out this section in a fiscal 

15 year under paragraph (1) shall be used to support 

16 the use of electronic benefits transfers at farmers’ 

17 markets.’’. 

18 SEC. 10404. NATIONAL CLEAN PLANT NETWORK. 

19 (a) ESTABLISHMENT.—There is established in the 

20 Department of Agriculture a program to be known as the 

21 ‘‘National Clean Plant Network’’. 

22 (b) NETWORK.—The Secretary of Agriculture shall 

23 use the network— 

24 (1) to develop a sustainable national funding 

25 source for clean planting stock programs for horti-
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1 cultural crops determined by the Secretary to be of 

2 priority for the United States; and 

3 (2) to enter into cooperative agreements to enti4 ties that have the expertise, facilities, and climate 

5 necessary to efficiently produce, maintain, and dis6 tribute healthy planting stock for specialty crops. 

7 (c) FUNDING.— 

8 (1) COMMODITY CREDIT CORPORATION.—Of the 

9 funds of the Commodity Credit Corporation, the 

10 Secretary shall make available to carry out this sec11 tion $20,000,000 for fiscal years 2008 through 

12 2012. 

13 (2) AUTHORIZATION OF APPROPRIATIONS.— 

14 There are authorized to be appropriated such sums 

15 as are necessary for each of fiscal years 2008 

16 through 2012 to carry out this section. 

17 SEC. 10405. HEALTHY FOOD URBAN ENTERPRISE DEVELOP18 MENT PROGRAM. 

19 (a) PURPOSE.—The purpose of this section is to sup20 port farm and ranch income by significantly enhancing a 

21 producer’s share of the final retail product price through 

22 improved access to competitive processing and distribution 

23 systems which deliver affordable, locally and regionally 

24 produced foods to consumers, and improve food access in 

25 underserved communities. 
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1 (b) DEFINITIONS.—In this section: 

2 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti3 ty’’ includes— 

4 (A) a small or midsized processor, dis5 tributor, wholesaler, or retail food outlet; 

6 (B) a group of producers operating as a le7 gally recognized marketing alliance; 

8 (C) a producer-owned cooperative; 

9 (D) a nonprofit organization; 

10 (E) an economic development or commu11 nity development corporation; 

12 (F) a unit of State or local government; 

13 and 

14 (G) an academic institution. 

15 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

16 has the meaning given the term in section 4 of the 

17 Indian Self-Determination and Education Assistance 

18 Act (25 U.S.C. 450b). 

19 (3) SECRETARY.—The term ‘‘Secretary’’ means 

20 the Secretary of Agriculture. 

21 (4) SOCIALLY DISADVANTAGED FARMER OR

22 RANCHER.—The term ‘‘socially disadvantaged farm23 er or rancher’’ has the meaning given the term in 

24 section 355(e) of the Consolidated Farm and Rural 

25 Development Act (7 U.S.C. 2003(e)). 
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•HR 2419 EH1S 

1 (5) UNDERSERVED COMMUNITY.—The term 

2 ‘‘underserved community’’ includes any community 

3 that may have, as determined by the Secretary— 

4 (A) limited access to affordable, healthy 

5 foods, including fresh fruits and vegetables, in 

6 grocery retail stores or farmer-to-consumer di7 rect markets; 

8 (B) high incidences of diet-related diseases, 

9 including obesity; 

10 (C) high rates of hunger or food insecurity; 

11 or 

12 (D) severe or persistent poverty in urban 

13 or rural communities, including Indian tribal 

14 communities. 

15 (c) GRANT PROGRAM.— 

16 (1) ESTABLISHMENT.—The Secretary, acting 

17 through the head of the market services branch of 

18 the Agricultural Marketing Service, shall establish a 

19 program under which the Secretary shall provide 

20 grants, on a competitive basis, to eligible entities to 

21 conduct enterprise feasibility studies (including stud22 ies of consumer preference), in accordance with the 

23 purpose of this section. 

24 (2) APPLICATION.—To be eligible to receive a 

25 grant under this subsection, an eligible entity shall 
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•HR 2419 EH1S 

1 submit to the Secretary an application at such time, 

2 in such manner, and containing such information as 

3 the Secretary may require. 

4 (3) COORDINATION WITH OTHER AGENCIES.— 

5 In carrying out the program under this subsection, 

6 the Secretary shall coordinate, with respect to the 

7 development of the program and reviews of grant 

8 applications, with— 

9 (A) the Cooperative State Research, Edu10 cation, and Extension Service; and 

11 (B) the Rural Business Cooperative Serv12 ice. 

13 (4) PRIORITY.—In providing grants under this 

14 subsection, the Secretary shall give priority to appli15 cations with proposed projects that— 

16 (A) include features effectively targeting 

17 participation by socially disadvantaged farmers 

18 or ranchers or beginning farmers or ranchers; 

19 (B) increase employment opportunities in 

20 underserved communities; 

21 (C) support small and mid-sized farm via22 bility and increase farming opportunities; or 

23 (D) establish and maintain satisfactory en24 vironmental and labor standards, including 

25 worker protection. 
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•HR 2419 EH1S 

1 (5) MAXIMUM AMOUNT.—The amount of a 

2 grant provided under this subsection shall not exceed 

3 $250,000. 

4 (6) TERM.—A grant provided under this sub5 section shall have a term of not more than 3 years. 

6 (7) REPORTS.— 

7 (A) IN GENERAL.—Each eligible entity 

8 that receives a grant under this subsection shall 

9 submit to the Secretary an annual report de10 scribing the results and progress of each feasi11 bility study to ensure sufficient progress is 

12 achieved with respect to the goals of the 

13 projects carried out by the eligible entity. 

14 (B) PUBLIC AVAILABILITY.—The Secretary 

15 shall ensure that any information contained in 

16 a report under subparagraph (A) relating to 

17 consumer preference or producer availability is 

18 made available to the public. 

19 (8) FUNDING.—There are authorized to be ap20 propriated such sums as are necessary for each of 

21 fiscal years 2008 through 2012 to carry out this sec22 tion. 

23 (d) GRANT PROGRAM REQUIREMENTS.— 

24 (1) TECHNICAL ASSISTANCE AND OUTREACH.— 

25 (A) IN GENERAL.—The Secretary shall— 
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•HR 2419 EH1S 

1 (i) provide to the public information 

2 relating to the grant programs under this 

3 section; and 

4 (ii) provide technical assistance to— 

5 (I) socially disadvantaged farm6 ers or ranchers; 

7 (II) Indian tribal organizations; 

8 (III) low-income populations; and 

9 (IV) other underserved commu10 nities and producers. 

11 (B) SERVICE PROVIDERS.—In carrying out 

12 subparagraph (A), the Secretary may enter into 

13 contracts, on a competitive basis, with entities 

14 that, as determined by the Secretary— 

15 (i) demonstrate experience in serving 

16 socially disadvantaged farmers or ranchers 

17 and other underserved communities and 

18 producers; 

19 (ii) include, in the governance struc20 ture of the entity, 2 or more members rep21 resenting the targeted communities served 

22 by the entity; and 

23 (iii) will share information developed 

24 or used by the entity with— 

25 (I) researchers; 
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•HR 2419 EH1S 

1 (II) practitioners; and 

2 (III) other interested parties. 

3 (2) LIMITATIONS.—For purposes of the pro4 grams under this section, the Secretary— 

5 (A) shall not give preference to any entity 

6 based on an agricultural commodity produced 

7 or supported by the entity; and 

8 (B) shall encourage, to the maximum ex9 tent practicable, projects that use infrastructure 

10 efficiently for more than 1 agricultural product. 

11 (3) REPORT.—Not less frequently than once 

12 each year, the Secretary shall submit to Congress a 

13 report that describes the programs (including the 

14 level of participation in each program) under this 

15 section, including information relating to— 

16 (A) projects carried out under this section; 

17 (B) characteristics of the agricultural pro18 ducers and communities served by the projects; 

19 (C) the benefits of the projects; 

20 (D) data necessary to comply with— 

21 (i) section 2501A of the Food, Agri22 culture, Conservation, and Trade Act of 

23 1990 (7 U.S.C. 2279–1); or 
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•HR 2419 EH1S 

1 (ii) section 8(b)(5)(B) of the Soil Con2 servation and Domestic Allotment Act (16 

3 U.S.C. 590h(b)(5)); and 

4 (E) outreach and technical assistance ac5 tivities carried out by the Secretary under para6 graph (1). 

7 TITLE XI—MISCELLANEOUS 

8 PROVISIONS 

Subtitle A—Federal Crop Insurance 

Sec. 11001. Premiums and reinsurance requirements. 

Sec. 11002. Catastrophic risk protection administrative fee. 

Sec. 11003. Funding for reimbursements, contracting, risk management education, and information technology. 

Sec. 11004. Reimbursement of research and development costs related to new 

crop insurance products. 

Sec. 11005. Research and development contracts for organic production coverage improvements. 

Sec. 11006. Targeting risk management education for beginning farmers and 

ranchers and certain other farmers and ranchers. 

Sec. 11007. Crop insurance ineligibility related to crop production on noncropland. 

Sec. 11008. Funds for data mining. 

Sec. 11009. Noninsured crop assistance program. 

Sec. 11010. Change in due date for Corporation payments for underwriting 

gains. 

Sec. 11011. Sesame insurance pilot program. 

Sec. 11012. National Drought Council and drought preparedness plans. 

Sec. 11013. Payment of portion of premium for area revenue plans. 

Sec. 11014. Share of risk. 

Sec. 11015. Livestock Assistance. 

Sec. 11016. Determination of certain sweet potato production. 

Subtitle B—Livestock and Poultry 

Sec. 11101. Sense of Congress regarding pseudorabies eradication program. 

Sec. 11102. Arbitration of livestock and poultry contracts. 

Sec. 11103. State-inspected meat and poultry. 

Sec. 11104. Country of origin labeling. 

Sec. 11105. Sense of Congress regarding the voluntary control program for low 

pathogenic avian influenza. 

Sec. 11106. Sense of Congress regarding the cattle fever tick eradication program. 

Subtitle C—Socially Disadvantaged Producers and Limited Resource 

Producers 
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Sec. 11201. Outreach and technical assistance for socially disadvantaged farmers and ranchers and limited resource farmers and ranchers. 

Sec. 11202. Improved program delivery by Department of Agriculture on Indian reservations. 

Sec. 11203. Transparency and accountability for socially disadvantaged farmers 

and ranchers. 

Sec. 11204. Beginning farmer and rancher development program. 

Sec. 11205. Provision of receipt for service or denial of service. 

Sec. 11206. Tracking of socially disadvantaged farmers and ranchers and limited resource farmers and ranchers in Census of Agriculture 

and certain studies. 

Sec. 11207. Farmworker coordinator. 

Sec. 11208. Office of Outreach relocation. 

Sec. 11209. Minority farmer advisory committee. 

Sec. 11210. Coordinator for chronically underserved rural areas. 

Subtitle D—Other Miscellaneous Provisions 

Sec. 11301. Designation of separate cotton-producing States under Cotton Research and Promotion Act. 

Sec. 11302. Cotton classification services. 

Sec. 11303. Availability of excess and surplus computers in rural areas. 

Sec. 11304. Permanent debarment from participation in Department of Agriculture programs for fraud. 

Sec. 11305. No discrimination against use of registered pesticide products or 

classes of pesticide products. 

Sec. 11306. Prohibition on closure or relocation of county offices for the Farm 

Service Agency, Rural Development Agency, and Natural Resources Conservation Service. 

Sec. 11307. Regulation of exports of plants, plant products, biological control 

organisms, and noxious weeds. 

Sec. 11308. Grants to reduce production of methamphetamines from anhydrous 

ammonia. 

Sec. 11309. USDA Graduate School. 

Sec. 11310. Prevention and investigation of payment and fraud and error. 

Sec. 11311. Sense of Congress regarding food deserts, geographically isolated 

neighborhoods and communities with limited or no access to 

major chain grocery stores. 

Sec. 11312. Pigford claims. 

Sec. 11313. Comptroller general study of wastewater infrastructure near 

United States-Mexico border. 

Sec. 11314. Elimination of statute of limitations applicable to collection of debt 

by administrative offset. 

Sec. 11315. Pollinator protection. 

Sec. 11316. Prohibition on use of live animals for marketing medical devices; 

fines under the Animal Welfare Act. 

Sec. 11317. Protection of pets. 
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•HR 2419 EH1S 

1 Subtitle A—Federal Crop 

2 Insurance 

3 SEC. 11001. PREMIUMS AND REINSURANCE REQUIRE4 MENTS. 

5 (a) PREMIUM ADJUSTMENTS.—Section 508(a) of the 

6 Federal Crop Insurance Act (7 U.S.C. 1508(a)) is amend7 ed by adding at the end the following new paragraph: 

8 ‘‘(9) PREMIUM ADJUSTMENTS.— 

9 ‘‘(A) PROHIBITION.—Except as provided 

10 in subparagraph (B), the paying, allowing, or 

11 giving, or offering to pay, allow, or give, directly 

12 or indirectly, either as an inducement to pro13 cure insurance or after insurance has been pro14 cured, any rebate, discount, abatement, credit, 

15 or reduction of the premium named in an insur16 ance policy or any other valuable consideration 

17 or inducement whatsoever not specified in the 

18 policy, is strictly prohibited under this title. 

19 ‘‘(B) EXCEPTIONS.—Subparagraph (A) 

20 does not apply with respect to the following: 

21 ‘‘(i) A rebate authorized under sub22 section (b)(5)(B). 

23 ‘‘(ii) A performance-based discount 

24 authorized under subsection (d)(3).’’. 
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1 (b) PAYMENT OF CATASTROPHIC RISK PROTECTION

2 FEE ON BEHALF OF PRODUCERS.—Section 508(b)(5)(B) 

3 of the Federal Crop Insurance Act (7 U.S.C. 

4 1508(b)(5)(B)) is amended— 

5 (1) in the subparagraph heading, by inserting 

6 ‘‘OF CATASTROPHIC RISK PROTECTION FEE’’ after 

7 ‘‘PAYMENT’’; 

8 (2) in clause (i)— 

9 (A) by striking ‘‘or other payment’’; and 

10 (B) by striking ‘‘with catastrophic risk 

11 protection or additional coverage’’; and insert12 ing ‘‘through the payment of all or a portion of 

13 catastrophic risk protection administrative 

14 fees’’; 

15 (3) in clause (ii)— 

16 (A) by striking ‘‘or other payment made by 

17 an insurance provider’’ and inserting ‘‘payment 

18 made pursuant to clause (i) by an insurance 

19 provider’’; 

20 (B) by striking ‘‘issuance of catastrophic 

21 risk protection or additional coverage to’’ and 

22 inserting ‘‘payment of catastrophic risk protec23 tion administrative fees on behalf of’’; and 

24 (C) by striking ‘‘or other payment’’ the 

25 second place it appears; 
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•HR 2419 EH1S 

1 (4) in clause (iv), by striking ‘‘A policy or plan 

2 of insurance’’ and inserting ‘‘Catastrophic risk pro3 tection coverage’’; 

4 (5) in clause (v)— 

5 (A) by striking ‘‘licensing fee or other ar6 rangement under this subparagraph’’ and in7 serting ‘‘licensing fee arrangement’’; and 

8 (B) by striking ‘‘levels of additional cov9 erage’’ and inserting ‘‘levels of coverage’’; and 

10 (6) by striking clause (vi). 

11 (c) CHANGE IN DUE DATE FOR POLICYHOLDER PRE12 MIUMS.—Section 508 of the Federal Crop Insurance Act 

13 (7 U.S.C. 1508) is amended— 

14 (1) in subsection (b)(5)(C), by striking ‘‘the 

15 date that premium’’ and inserting ‘‘the same date on 

16 which the premium’’; 

17 (2) in subsection (c)(10)(B)— 

18 (A) by inserting ‘‘; TIME FOR PAYMENT’’ 

19 after ‘‘WAIVER’’; and 

20 (B) by adding at the end the following new 

21 sentence: ‘‘Subparagraph (C) of such subsection 

22 shall apply with respect to the collection date 

23 for policy premiums.’’; and 

24 (3) in subsection (d), by adding at the end the 

25 following new paragraph: 
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1 ‘‘(4) BILLING DATE FOR PREMIUMS.—Begin2 ning with the 2012 reinsurance year, the Corpora3 tion shall establish August 1 as the billing date for 

4 premiums.’’. 

5 (d) REINSURANCE.— 

6 (1) REIMBURSEMENT RATE.—Section 

7 508(k)(4)(A) of the Federal Crop Insurance Act (7 

8 U.S.C. 1508(k)(4)(A)) is amended by striking clause 

9 (ii) and inserting the following new clause: 

10 ‘‘(ii) for the 2009 and subsequent re11 insurance years, 2.9 percentage points 

12 below the rates, in effect as of the date of 

13 the enactment of this Act of the Farm, 

14 Nutrition, and Bioenergy Act of 2007, for 

15 all crop insurance policies used to define 

16 loss ratio.’’. 

17 (2) RENEGOTIATION OF STANDARD REINSUR18 ANCE AGREEMENT.—Section 508(k) of the Federal 

19 Crop Insurance Act (7 U.S.C. 1508(k)) is amended 

20 by adding at the end the following new paragraph: 

21 ‘‘(8) RENEGOTIATION OF STANDARD REINSUR22 ANCE AGREEMENT.— 

23 ‘‘(A) PERIODIC RENEGOTIATION.—Fol24 lowing the reinsurance year ending June 30, 

25 2012, the Corporation may renegotiate the fi-
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•HR 2419 EH1S 

1 nancial terms of the standard reinsurance 

2 agreement during the next reinsurance year and 

3 once during each period of five reinsurance 

4 years thereafter. 

5 ‘‘(B) EFFECT OF FEDERAL LAW

6 CHANGES.—If changes in Federal law are en7 acted that require revisions in the financial 

8 terms of the standard reinsurance agreement, 

9 and such changes in the agreement are made 

10 on a mandatory basis by the Corporation, such 

11 changes will not be deemed to be a renegoti12 ation of the agreement for purposes of subpara13 graph (A). 

14 ‘‘(C) CONSULTATION.—Approved insur15 ance providers and their representatives may 

16 confer with each other, and collectively with the 

17 Corporation, during the renegotiation process 

18 under subparagraph (A).’’. 

19 (3) TREATMENT OF 2008 REINSURANCE

20 YEAR.—Clause (ii) of section 508(k)(4)(A) of the 

21 Federal Crop Insurance Act (7 U.S.C. 

22 1508(k)(4)(A)), as in effect on the day before the 

23 date of the enactment of this Act, shall continue to 

24 apply with respect to the 2008 reinsurance year. 
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1 (e) CHANGE IN DUE DATE FOR ADMINISTRATIVE

2 AND OPERATING EXPENSE PAYMENT.—Section 516(b) of 

3 the Federal Crop Insurance Act (7 U.S.C. 1516(b)) is 

4 amended by adding at the end the following new para5 graph: 

6 ‘‘(3) DUE DATE FOR ADMINISTRATIVE AND OP7 ERATING EXPENSE PAYMENT.—Beginning with the 

8 2012 reinsurance year, the Corporation shall make 

9 payments pursuant to paragraph (1)(B) during Oc10 tober 2012, and for subsequent reinsurance years, 

11 every October thereafter.’’. 

12 (f) CONFORMING AMENDMENTS.— 

13 (1) PREMIUM REDUCTION AUTHORITY.—Sub14 section 508(e) of the Federal Crop Insurance Act (7 

15 U.S.C. 1508(e)) is amended— 

16 (A) in paragraph (2) by striking ‘‘para17 graph (4)’’ and inserting ‘‘paragraph (3)’’; 

18 (B) by striking paragraph (3); and 

19 (C) by redesignating paragraphs (4) and 

20 (5) as paragraphs (3) and (4), respectively. 

21 (2) PREMIUM RATE REDUCTION PILOT PRO22 GRAM.—Section 523 of the Federal Crop Insurance 

23 Act (7 U.S.C. 1523) is amended— 

24 (A) by striking subsection (d); and 
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•HR 2419 EH1S 

1 (B) by redesignating subsection (e) as sub2 section (d). 

3 (3) SUBMISSION OF POLICIES AND MATE4 RIALS.—Section 508(h)(1)(A) of the Federal Crop 

5 Insurance Act (7 U.S.C. 1508(h)(1)(A)) is amended 

6 by striking ‘‘; and’’ and inserting ‘‘; or’’. 

7 SEC. 11002. CATASTROPHIC RISK PROTECTION ADMINIS8 TRATIVE FEE. 

9 Section 508(b)(5)(A) of the Federal Crop Insurance 

10 Act (7 U.S.C. 1508(b)(5)(A)) is amended by striking 

11 ‘‘$100 per crop per county’’ and inserting in its place 

12 ‘‘$200 per crop per county’’. 

13 SEC. 11003. FUNDING FOR REIMBURSEMENTS, CON14 TRACTING, RISK MANAGEMENT EDUCATION, 

15 AND INFORMATION TECHNOLOGY. 

16 (a) FUNDING.—Section 516 of the Federal Crop In17 surance Act (7 U.S.C. 1516) is amended by adding at the 

18 end the following new subsections: 

19 ‘‘(d) FUNDING FOR REIMBURSEMENTS, CON20 TRACTING, RISK MANAGEMENT EDUCATION, AND INFOR21 MATION TECHNOLOGY.—Of the amounts made available 

22 from the insurance fund established under subsection (c), 

23 the Corporation shall use not more than $30,000,000 in 

24 each fiscal year to carry out the following: 
731 

•HR 2419 EH1S 

1 ‘‘(1) Reimbursement of research and develop2 ment and maintenance costs described under section 

3 522(b). 

4 ‘‘(2) Research and development contracting de5 scribed under section 522(c). 

6 ‘‘(3) Partnerships for risk management and im7 plementation described under section 522(d). 

8 ‘‘(4) Education and information programs de9 scribed in section 524(a)(2). 

10 ‘‘(5) Partnerships for risk management edu11 cation program described in section 524(a)(3). 

12 ‘‘(6) Information technology, as determined by 

13 the Corporation. 

14 ‘‘(e) UNDERSERVED STATES.—Of the amount made 

15 available under subsection (d), the Corporation shall use 

16 not more than $5,000,000 in each fiscal year to carry out 

17 contracting for research and development described in sec18 tion 522(c)(1)(A).’’. 

19 (b) CONFORMING AMENDMENTS.— 

20 (1) FORMER FUNDING PROVISION.—Section 

21 522 of the Federal Crop Insurance Act (7 U.S.C. 

22 1522) is amended by striking subsection (e) and in23 serting the following new subsection: 

24 ‘‘(e) PROHIBITED RESEARCH AND DEVELOPMENT BY

25 CORPORATION.— 
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•HR 2419 EH1S 

1 ‘‘(1) NEW POLICIES.—Notwithstanding sub2 section (d), the Corporation shall not conduct re3 search and development for any new policy for an 

4 agricultural commodity offered under this title. 

5 ‘‘(2) EXISTING POLICIES.—Any policy devel6 oped by the Corporation under this title before Octo7 ber 1, 2000, may continue to be offered for sale to 

8 producers.’’. 

9 (2) CROSS REFERENCE.—Section 523(c)(1) of 

10 the Federal Crop Insurance Act (7 U.S.C. 

11 1523(c)(1)) is amended by striking ‘‘section 

12 522(e)(4)’’ and inserting ‘‘section 522(e)’’. 

13 (3) EDUCATION ASSISTANCE FUNDING.—Sec14 tion 524(a) of the Federal Crop Insurance Act (7 

15 U.S.C. 1524(a)) is amended as follows: 

16 (A) in paragraph (1), by striking ‘‘para17 graph (4)’’ and inserting ‘‘section 516(d)’’; and 

18 (B) by striking paragraph (4). 

19 SEC. 11004. REIMBURSEMENT OF RESEARCH AND DEVEL20 OPMENT COSTS RELATED TO NEW CROP IN21 SURANCE PRODUCTS. 

22 (a) REIMBURSEMENT AUTHORIZED.—Paragraph (1) 

23 of section 522(b) of the Federal Crop Insurance Act (7 

24 U.S.C. 1522(b)) is amended to read as follows: 
733 

•HR 2419 EH1S 

1 ‘‘(1) RESEARCH AND DEVELOPMENT REIM2 BURSEMENT.—The Corporation shall provide a pay3 ment to reimburse an applicant for research and de4 velopment costs directly related to a policy that— 

5 ‘‘(A) is submitted to the Board pursuant 

6 to an FCIC Reimbursement Grant under para7 graph (7); or 

8 ‘‘(B) is submitted to the Board and ap9 proved by the Board under section 508(h) for 

10 reinsurance and, if applicable, offered for sale 

11 to producers.’’. 

12 (b) FCIC REIMBURSEMENT GRANTS.—Section 

13 522(b) of the Federal Crop Insurance Act (7 U.S.C. 

14 1522(b)) is amended by adding at the end the following 

15 new paragraph: 

16 ‘‘(7) FCIC REIMBURSEMENT GRANTS.— 

17 ‘‘(A) GRANTS AUTHORIZED.—The Cor18 poration shall provide FCIC Reimbursement 

19 Grants to persons proposing to prepare for sub20 mission to the Board crop insurance policies 

21 and provisions under subparagraphs (A) and 

22 (B) of section 508(h)(1), who apply and are ap23 proved for such FCIC Reimbursement Grants 

24 under the terms and conditions of this para25 graph. 
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•HR 2419 EH1S 

1 ‘‘(B) SUBMISSION OF APPLICATION.—The 

2 Board shall receive and consider applications 

3 for FCIC Reimbursement Grants at least once 

4 annually. An application to receive an FCIC 

5 Reimbursement Grant from the Corporation 

6 shall consist of such materials as the Board 

7 may require, including— 

8 ‘‘(i) a concept paper that describes the 

9 proposal in sufficient detail for the Board 

10 to determine whether it satisfies the re11 quirements of subparagraph (C); 

12 ‘‘(ii) a summary of — 

13 ‘‘(I) the need for the product, in14 cluding an assessment of market15 ability and expected demand among 

16 affected producers; 

17 ‘‘(II) support from producers, 

18 producer organizations, lenders, or 

19 other interested parties; 

20 ‘‘(III) the impact the product 

21 would have on producers and on the 

22 crop insurance delivery system; and 

23 ‘‘(IV) that no products are of24 fered by the private sector providing 
735 

•HR 2419 EH1S 

1 the same benefits and risk manage2 ment services as the proposal. 

3 ‘‘(iii) a summary of data sources 

4 available demonstrating that the product 

5 can reasonably be developed and properly 

6 rated; and 

7 ‘‘(iv) identification of the risks the 

8 proposed product will cover and that the 

9 risks are insurable under the Act. 

10 ‘‘(C) APPROVAL CONDITIONS.—Approval of 

11 an application for a FCIC Reimbursement 

12 Grant shall be by majority vote of the Board. 

13 The Board shall approve the application only if 

14 the Board finds that— 

15 ‘‘(i) the proposal contained in the ap16 plication— 

17 ‘‘(I) provides coverage to a crop 

18 or region not traditionally served by 

19 the Federal crop insurance program; 

20 ‘‘(II) provides crop insurance 

21 coverage in a significantly improved 

22 form; 

23 ‘‘(III) addresses a recognized 

24 flaw or problem in the program; 
736 

•HR 2419 EH1S 

1 ‘‘(IV) introduces a significant 

2 new concept or innovation to the pro3 gram; or 

4 ‘‘(V) provides coverage, benefits, 

5 or risk management services not avail6 able from the private sector; 

7 ‘‘(ii) the applicant demonstrates the 

8 necessary qualifications to complete the 

9 project successfully in a timely manner 

10 with high quality; 

11 ‘‘(iii) the proposal is in the interests 

12 of producers and can reasonably be ex13 pected to be actuarially appropriate; 

14 ‘‘(iv) the Board determines that the 

15 Corporation has sufficient available fund16 ing to award the FCIC Reimbursement 

17 Grant; and 

18 ‘‘(v) the proposed budget and time19 table are reasonable. 

20 ‘‘(D) PARTICIPATION.—In reviewing pro21 posals under this paragraph, the Board may 

22 use the services of persons it deems appropriate 

23 for expert review. All proposals submitted under 

24 this paragraph will be treated as confidential in 

25 accordance with section 508(h)(4). 
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1 ‘‘(E) ENTERING INTO AGREEMENT.—Upon 

2 approval of the application, the Board shall 

3 enter into an agreement with the person for the 

4 development of a formal submission meeting the 

5 requirements for a complete submission estab6 lished by the Board under section 508(h). 

7 ‘‘(F) FEASIBILITY STUDIES.—In appro8 priate cases, the Corporation may structure the 

9 FCIC Reimbursement Grant to require, as an 

10 initial step within the overall process, the sub11 mitter to complete a feasibility study and report 

12 the results of such study to the Corporation 

13 prior to proceeding with further development. 

14 The Corporation may require such other reports 

15 as necessary to monitor the development ef16 forts. 

17 ‘‘(G) RATES.—Payment for work per18 formed under this paragraph shall be based on 

19 rates determined by the Corporation for prod20 ucts submitted under section 508(h) of the Act 

21 or for those contracted by the Corporation 

22 under section 522(c) of the Act. 

23 ‘‘(H) TERMINATION.—The Corporation or 

24 the submitter may terminate any FCIC Reim25 bursement Grant to reimburse expenses at any 
738 

•HR 2419 EH1S 

1 time for just cause. If the Corporation or the 

2 submitter terminates the FCIC Reimbursement 

3 Grant before final approval of the product cov4 ered thereby, the submitter shall be entitled to 

5 reimbursement of all costs incurred to that 

6 point, or, in the case of a fixed rate agreement, 

7 to payment of an appropriate percentage. If the 

8 submitter terminates development without just 

9 cause, the Corporation may deny reimburse10 ment. 

11 ‘‘(I) CONSIDERATION OF PRODUCTS.—The 

12 Board shall consider any product submitted to 

13 it developed under this paragraph under the 

14 rules it has established for products submitted 

15 under section 508(h) of this Act.’’. 

16 SEC. 11005. RESEARCH AND DEVELOPMENT CONTRACTS 

17 FOR ORGANIC PRODUCTION COVERAGE IM18 PROVEMENTS. 

19 Section 522(c) of the Federal Crop Insurance Act (7 

20 U.S.C. 1522(c)) is amended— 

21 (1) by redesignating paragraph (10) as para22 graph (11); and 

23 (2) by inserting after paragraph (9) the fol24 lowing new paragraph: 
739 

•HR 2419 EH1S 

1 ‘‘(10) CONTRACTS FOR ORGANIC PRODUCTION

2 COVERAGE IMPROVEMENTS.— 

3 ‘‘(A) CONTRACT REQUIRED.—Not later 

4 than 180 days after the date of the enactment 

5 of the Farm, Nutrition, and Bioenergy Act of 

6 2007, the Corporation shall enter into one or 

7 more contracts for the development of improve8 ments in Federal crop insurance policies cov9 ering crops produced in compliance with stand10 ards issued by the Department of Agriculture 

11 under the National Organic Program. 

12 ‘‘(B) REVIEW OF UNDERWRITING, RISK, 

13 AND LOSS EXPERIENCE.— 

14 ‘‘(i) REVIEW REQUIRED.—A contract 

15 under subparagraph (A) shall include a re16 view of the underwriting, risk, and loss ex17 perience of organic crops covered by the 

18 Corporation, as compared with the same 

19 crops produced in the same counties and 

20 during the same time periods using non-or21 ganic methods. The review should be de22 signed to allow the Corporation to deter23 mine whether significant, consistent, or 

24 systemic variations in loss history exist be25 tween organic and non-organic production, 
740 

•HR 2419 EH1S 

1 and shall include the widest available range 

2 of data, including loss history under exist3 ing crop insurance policies, collected by the 

4 National Agricultural Statistics Service, 

5 and other sources of information. 

6 ‘‘(ii) EFFECT ON PREMIUM SUR7 CHARGE.—Unless the review under this 

8 subparagraph documents the existence of 

9 such significant, consistent, and systemic 

10 variations in loss history between organic 

11 and non-organic crops, either collectively or 

12 on an individual basis, the Corporation 

13 shall eliminate or reduce the premium sur14 charge that the Corporation charges for 

15 coverage for organic crops. 

16 ‘‘(C) ADDITIONAL PRICE ELECTION.—A 

17 contract under subparagraph (A) shall include 

18 the development of a procedure, including any 

19 associated changes in policy terms or materials 

20 required for implementation of the procedure, 

21 to offer producers of organic crops an addi22 tional price election that would reflect the ac23 tual retail or wholesale prices, as appropriate, 

24 received by organic producers for their crops, as 

25 established using data collected and maintained 
741 

•HR 2419 EH1S 

1 by the Agricultural Marketing Service or other 

2 sources. The development of the procedure shall 

3 be completed in a timely manner to allow the 

4 Corporation to begin offering the additional 

5 price election for organic crops with sufficient 

6 data for the 2009 crop year, and expand it 

7 thereafter as the Agricultural Marketing Service 

8 expands its data collection and availability for 

9 prices of organic crops. 

10 ‘‘(D) REPORTING REQUIREMENTS.—The 

11 Corporation shall submit to the Committee on 

12 Agriculture of the House of Representatives 

13 and the Committee on Agriculture, Nutrition, 

14 and Forestry of the Senate an annual report on 

15 the progress made in developing and improving 

16 Federal crop insurance for organic crops, in17 cluding the numbers and varieties of organic 

18 crops insured, the development of new insur19 ance approaches, and the progress of the initia20 tives mandated under this paragraph. The re21 port shall also include such recommendations as 

22 the Corporation considers appropriate regarding 

23 additional opportunities to improve Federal 

24 crop insurance coverage for such crops.’’. 
742 

•HR 2419 EH1S 

1 SEC. 11006. TARGETING RISK MANAGEMENT EDUCATION 

2 FOR BEGINNING FARMERS AND RANCHERS 

3 AND CERTAIN OTHER FARMERS AND RANCH4 ERS. 

5 Section 524(a) of the Federal Crop Insurance Act (7 

6 U.S.C. 1524(a)) is amended— 

7 (1) by redesignating paragraph (4) as para8 graph (5); and 

9 (2) by inserting after paragraph (3) the fol10 lowing new paragraph: 

11 ‘‘(4) TARGETING RISK MANAGEMENT EDU12 CATION FOR CERTAIN FARMERS AND RANCHERS.— 

13 ‘‘(A) IN GENERAL.—In carrying out the 

14 education and information program established 

15 under paragraph (2) and the partnerships for 

16 risk management education program under 

17 paragraph (3), the Secretary shall include a 

18 special emphasis on risk management strategies 

19 and education and outreach specifically targeted 

20 at farmers and ranchers described in subpara21 graph (B). 

22 ‘‘(B) COVERED FARMERS AND RANCH23 ERS.—Subparagraph (A) applies with respect to 

24 the following: 

25 ‘‘(i) Beginning farmers and ranchers. 
743 

•HR 2419 EH1S 

1 ‘‘(ii) Immigrant farmers and ranchers 

2 who are attempting to become established 

3 producers in the United States. 

4 ‘‘(iii) Socially disadvantaged farmers 

5 and ranchers. 

6 ‘‘(iv) Farmers and ranchers who are 

7 preparing to retire and are using transition 

8 strategies to help new farmers and ranch9 ers get started. 

10 ‘‘(v) Farmers and ranchers who are 

11 converting their current production and 

12 marketing systems to pursue new mar13 kets.’’. 

14 SEC. 11007. CROP INSURANCE INELIGIBILITY RELATED TO 

15 CROP PRODUCTION ON NONCROPLAND. 

16 Section 502 of the Federal Crop Insurance Act (7 

17 U.S.C. 1502) is amended by adding at the end the fol18 lowing new subsection: 

19 ‘‘(e) CROP INSURANCE INELIGIBILITY RELATED TO

20 CROP PRODUCTION ON NONCROPLAND.— 

21 ‘‘(1) NONCROPLAND DEFINED.—In this sub22 section, the term ‘noncropland’ means native grass23 land and pasture the Secretary determines has never 

24 been used for crop production. 
744 

•HR 2419 EH1S 

1 ‘‘(2) INELIGIBILITY.—Noncropland acreage on 

2 which an agricultural commodity for which a policy 

3 or plan of insurance is available under this title is 

4 planted shall be ineligible for crop insurance under 

5 this title for the first 4 years of planting, as deter6 mined by the Secretary. 

7 ‘‘(3) YIELD DETERMINATION BASED ON COUN8 TY ACTUAL PRODUCTION HISTORY.—If an agricul9 tural commodity ineligible for insurance as described 

10 in paragraph (2) is planted for 4 years, beginning 

11 with the fifth year in which the commodity is plant12 ed, the producer of the commodity may procure crop 

13 insurance for the commodity under this title. The 

14 yield for such crop insurance shall be determined 

15 only— 

16 ‘‘(A) by using the actual production history 

17 for the farm; and 

18 ‘‘(B) for each year in which the farm does 

19 not have an actual production history, by using 

20 the average actual production history for the 

21 commodity in the county in which the farm is 

22 located. 

23 ‘‘(4) EFFECTIVE DATE.—This subsection shall 

24 apply to crop years following the 2007 crop year.’’. 
745 

•HR 2419 EH1S 

1 SEC. 11008. FUNDS FOR DATA MINING. 

2 Section 515(k) of the Federal Crop Insurance Act (7 

3 U.S.C. 1515(k)) is amended by striking paragraph (1) and 

4 inserting the following new paragraph: 

5 ‘‘(1) AVAILABLE FUNDS.—To carry out this 

6 section, the Corporation may use, from amounts 

7 made available from the insurance fund established 

8 under section 516(c)— 

9 ‘‘(A) not more than $11,000,000 during 

10 fiscal year 2008; and 

11 ‘‘(B) not more than $7,000,000 during fis12 cal year 2009 and each subsequent year there13 after.’’. 

14 SEC. 11009. NONINSURED CROP ASSISTANCE PROGRAM. 

15 Section 196(k)(1) of the Agricultural Market Transi16 tion Act (7 U.S.C. 7333(k)(1)) is amended by striking 

17 subparagraphs (A) and (B) and inserting the following 

18 new subparagraphs: 

19 ‘‘(A) $200 per crop per county; or 

20 ‘‘(B) $600 per producer per county, but 

21 not to exceed a total of $1,800 per producer.’’. 

22 SEC. 11010. CHANGE IN DUE DATE FOR CORPORATION PAY23 MENTS FOR UNDERWRITING GAINS. 

24 Effective beginning with the 2011 reinsurance year, 

25 the Federal Crop Insurance Corporation shall make pay-
746 

•HR 2419 EH1S 

1 ments for underwriting gains under the Federal Crop In2 surance Act (7 U.S.C. 1501 et seq.)— 

3 (1) for the 2011 reinsurance year on October 1, 

4 2012; and 

5 (2) for each reinsurance year thereafter on the 

6 October 1 of the next calendar year. 

7 SEC. 11011. SESAME INSURANCE PILOT PROGRAM. 

8 (a) PILOT PROGRAM REQUIRED.—The Secretary of 

9 Agriculture shall establish and carry out a pilot program 

10 under which a producer of non-dehiscent sesame under 

11 contract may elect to obtain multi-peril crop insurance, as 

12 determined by the Secretary. 

13 (b) TERMS AND CONDITIONS.—The multi-peril crop 

14 insurance offered under the sesame insurance pilot pro15 gram shall— 

16 (1) be offered through reinsurance arrange17 ments with private insurance companies; 

18 (2) be actuarially sound; and 

19 (3) require the payment of premiums and ad20 ministrative fees by a producer obtaining the insur21 ance. 

22 (c) LOCATION.—The sesame insurance pilot program 

23 shall be carried out only in the State of Texas. 

24 (d) RELATION TO PROHIBITION ON RESEARCH AND

25 DEVELOPMENT BY CORPORATION.—Section 522(e)(4) of 
747 

•HR 2419 EH1S 

1 the Federal Crop Insurance Act (7 U.S.C. 1522(e)(4)) 

2 shall apply with respect to the sesame insurance pilot pro3 gram. 

4 (e) DURATION.—The Secretary shall commence the 

5 sesame insurance pilot program as soon as practicable 

6 after the date of the enactment of this Act and continue 

7 the program through the 2012 crop year. 

8 SEC. 11012. NATIONAL DROUGHT COUNCIL AND DROUGHT 

9 PREPAREDNESS PLANS. 

10 (a) DEFINITIONS.—In this section: 

11 (1) COUNCIL.—The term ‘‘Council’’ means the 

12 National Drought Council established by this sec13 tion. 

14 (2) CRITICAL SERVICE PROVIDER.—The term 

15 ‘‘critical service provider’’ means an entity that pro16 vides power, water (including water provided by an 

17 irrigation organization or facility), sewer services, or 

18 wastewater treatment. 

19 (3) DROUGHT.—The term ‘‘drought’’ means a 

20 natural disaster that is caused by a deficiency in 

21 precipitation— 

22 (A) that may lead to a deficiency in sur23 face and subsurface water supplies (including 

24 rivers, streams, wetlands, ground water, soil 
748 

•HR 2419 EH1S 

1 moisture, reservoir supplies, lake levels, and 

2 snow pack); and 

3 (B) that causes or may cause— 

4 (i) substantial economic or social im5 pacts; or 

6 (ii) physical damage or injury to indi7 viduals, property, or the environment. 

8 (4) FUND.—The term ‘‘Fund’’ means the 

9 Drought Assistance Fund established by this section. 

10 (5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

11 has the meaning given the term in section 4 of the 

12 Indian Self-Determination and Education Assistance 

13 Act (25 U.S.C. 450b). 

14 (6) INTERSTATE WATERSHED.—The term 

15 ‘‘interstate watershed’’ means a watershed that tran16 scends State or Tribal boundaries, or both. 

17 (7) MEMBER.—The term ‘‘member’’, with re18 spect to the National Drought Council, means a 

19 member of the Council specified or appointed under 

20 this section or, in the absence of the member, the 

21 member’s designee. 

22 (8) MITIGATION.—The term ‘‘mitigation’’ 

23 means a short- or long-term action, program, or pol24 icy that is implemented in advance of or during a 
749 

•HR 2419 EH1S 

1 drought to minimize any risks and impacts of 

2 drought. 

3 (9) NEIGHBORING COUNTRY.—The term 

4 ‘‘neighboring country’’ means Canada and Mexico. 

5 (10) OFFICE.—The term ‘‘Office’’ means the 

6 National Office of Drought Preparedness established 

7 under this section. 

8 (11) SECRETARY.—The term ‘‘Secretary’’ 

9 means the Secretary of Agriculture. 

10 (12) STATE.—The term ‘‘State’’ means the sev11 eral States, the District of Columbia, American 

12 Samoa, Guam, the Commonwealth of the Northern 

13 Mariana Islands, the Commonwealth of Puerto Rico, 

14 and the United States Virgin Islands. 

15 (13) TRIGGER.—The term ‘‘trigger’’ means the 

16 thresholds or criteria that must be satisfied before 

17 mitigation or emergency assistance may be provided 

18 to an area— 

19 (A) in which drought is emerging; or 

20 (B) that is experiencing a drought. 

21 (14) UNDER SECRETARY.—The term ‘‘Under 

22 Secretary’’ means the Under Secretary of Agri23 culture for Natural Resources and Environment. 

24 (15) WATERSHED.—The term ‘‘watershed’’ 

25 means a region or area with common hydrology, an 
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•HR 2419 EH1S 

1 area drained by a waterway that drains into a lake 

2 or reservoir, the total area above a given point on 

3 a stream that contributes water to the flow at that 

4 point, or the topographic dividing line from which 

5 surface streams flow in two different directions. In 

6 no case shall a watershed be larger than a river 

7 basin. 

8 (16) WATERSHED GROUP.—The term ‘‘water9 shed group’’ means a group of individuals, formally 

10 recognized by the appropriate State or States, who 

11 represent the broad scope of relevant interests with12 in a watershed and who work together in a collabo13 rative manner to jointly plan the management of the 

14 natural resources contained within the watershed. 

15 (b) EFFECT OF SECTION.—This section does not af16 fect— 

17 (1) the authority of a State to allocate quan18 tities of water under the jurisdiction of the State; or 

19 (2) any State water rights established as of the 

20 date of enactment of this Act. 

21 (c) NATIONAL DROUGHT COUNCIL.— 

22 (1) ESTABLISHMENT.—There is established in 

23 the Office of the Secretary of Agriculture a council 

24 to be known as the ‘‘National Drought Council’’. 

25 (2) MEMBERSHIP.— 
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•HR 2419 EH1S 

1 (A) COMPOSITION.—The Council shall be 

2 composed of— 

3 (i) the Secretary (or the designee of 

4 the Secretary); 

5 (ii) the Secretary of Commerce (or the 

6 designee of the Secretary of Commerce); 

7 (iii) the Secretary of the Army (or the 

8 designee of the Secretary of the Army); 

9 (iv) the Secretary of the Interior (or 

10 the designee of the Secretary of the Inte11 rior); 

12 (v) the Director of the Federal Emer13 gency Management Agency (or the des14 ignee of the Director); 

15 (vi) the Administrator of the Environ16 mental Protection Agency (or the designee 

17 of the Administrator); 

18 (vii) 4 members appointed by the Sec19 retary, in coordination with the National 

20 Governors Association, each of whom shall 

21 be the Governor of a State (or the designee 

22 of the Governor) and who collectively shall 

23 represent the geographic diversity of the 

24 Nation; 
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1 (viii) 1 member appointed by the Sec2 retary, in coordination with the National 

3 Association of Counties; 

4 (ix) 1 member appointed by the Sec5 retary, in coordination with the United 

6 States Conference of Mayors; 

7 (x) 1 member appointed by the Sec8 retary of the Interior, in coordination with 

9 Indian tribes, to represent the interests of 

10 tribal governments; and 

11 (xi) 1 member appointed by the Sec12 retary, in coordination with the National 

13 Association of Conservation Districts, to 

14 represent local soil and water conservation 

15 districts. 

16 (B) DATE OF APPOINTMENT.—The ap17 pointment of each member of the Council shall 

18 be made not later than 120 days after the date 

19 of enactment of this Act. 

20 (3) TERM; VACANCIES.— 

21 (A) TERM.—A non-Federal member of the 

22 Council appointed under paragraph (2) shall be 

23 appointed for a term of two years. 

24 (B) VACANCIES.—A vacancy on the Coun25 cil— 
753 

•HR 2419 EH1S 

1 (i) shall not affect the powers of the 

2 Council; and 

3 (ii) shall be filled in the same manner 

4 as the original appointment was made. 

5 (C) TERMS OF MEMBERS FILLING VACAN6 CIES.—Any member appointed to fill a vacancy 

7 occurring before the expiration of the term for 

8 which the member’s predecessor was appointed 

9 shall be appointed only for the remainder of 

10 that term. 

11 (4) MEETINGS.— 

12 (A) IN GENERAL.—The Council shall meet 

13 at the call of the co-chairs. 

14 (B) FREQUENCY.—The Council shall meet 

15 at least semiannually. 

16 (5) QUORUM.—A majority of the members of 

17 the Council shall constitute a quorum, but a lesser 

18 number may hold hearings or conduct other busi19 ness. 

20 (6) COUNCIL LEADERSHIP.— 

21 (A) IN GENERAL.—There shall be a Fed22 eral co-chair and non-Federal co-chair of the 

23 Council. 

24 (B) APPOINTMENT.— 
754 

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1 (i) FEDERAL CO-CHAIR.—The Sec2 retary shall be Federal co-chair. 

3 (ii) NON-FEDERAL CO-CHAIR.—The 

4 non-Federal members of the Council shall 

5 select, on a biannual basis, a non-Federal 

6 co-chair of the Council from among the 

7 members appointed under paragraph (2). 

8 (7) DIRECTOR OF THE OFFICE.— 

9 (A) IN GENERAL.—The Director of the Of10 fice shall serve as Secretary of the Council. 

11 (B) DUTIES.—The Director of the Office 

12 shall serve the interests of all members of the 

13 Council. 

14 (d) DUTIES OF THE COUNCIL.— 

15 (1) IN GENERAL.—The Council shall— 

16 (A) not later than one year after the date 

17 of the first meeting of the Council, develop a 

18 comprehensive National Drought Policy Action 

19 Plan that— 

20 (i)(I) delineates and integrates re21 sponsibilities for activities relating to 

22 drought (including drought preparedness, 

23 mitigation, research, risk management, 

24 training, and emergency relief) among 

25 Federal agencies; and 
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•HR 2419 EH1S 

1 (II) ensures that those activities are 

2 coordinated with the activities of the 

3 States, local governments, Indian tribes, 

4 and neighboring countries; 

5 (ii) is consistent with— 

6 (I) this Act and other applicable 

7 Federal laws; and 

8 (II) the laws and policies of the 

9 States for water management; 

10 (iii) is integrated with drought man11 agement programs of the States, Indian 

12 tribes, local governments, watershed 

13 groups, and private entities; and 

14 (iv) avoids duplicating Federal, State, 

15 tribal, local, watershed, and private 

16 drought preparedness and monitoring pro17 grams in existence on the date of enact18 ment of this Act; 

19 (B) evaluate Federal drought-related pro20 grams in existence on the date of enactment of 

21 this Act and make recommendations to Con22 gress and the President on means of elimi23 nating— 

24 (i) discrepancies between the goals of 

25 the programs and actual service delivery; 
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•HR 2419 EH1S 

1 (ii) duplication among programs; and 

2 (iii) any other circumstances that 

3 interfere with the effective operation of the 

4 programs; 

5 (C) make recommendations to the Presi6 dent, Congress, and appropriate Federal Agen7 cies on— 

8 (i) the establishment of common inter9 agency triggers for authorizing Federal 

10 drought mitigation programs; and 

11 (ii) improving the consistency and 

12 fairness of assistance among Federal 

13 drought relief programs; 

14 (D) encourage and facilitate the develop15 ment of drought preparedness plans under sub16 title C, including establishing the guidelines 

17 under this section; 

18 (E) based on a review of drought prepared19 ness plans, develop and make available to the 

20 public drought planning models to reduce water 

21 resource conflicts relating to water conservation 

22 and droughts; 

23 (F) develop and coordinate public aware24 ness activities to provide the public with access 
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•HR 2419 EH1S 

1 to understandable, and informative materials on 

2 drought, including— 

3 (i) explanations of the causes of 

4 drought, the impacts of drought, and the 

5 damages from drought; 

6 (ii) descriptions of the value and bene7 fits of land stewardship to reduce the im8 pacts of drought and to protect the envi9 ronment; 

10 (iii) clear instructions for appropriate 

11 responses to drought, including water con12 servation, water reuse, and detection and 

13 elimination of water leaks; 

14 (iv) information on State and local 

15 laws applicable to drought; and 

16 (v) opportunities for assistance to re17 source-dependent businesses and industries 

18 in times of drought; and 

19 (G) establish operating procedures for the 

20 Council. 

21 (2) CONSULTATION.—In carrying out this sub22 section, the Council shall consult with groups af23 fected by drought emergencies. 

24 (3) REPORTS TO CONGRESS.— 

25 (A) ANNUAL REPORT.— 
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•HR 2419 EH1S 

1 (i) IN GENERAL.—Not later than one 

2 year after the date of the first meeting of 

3 the Council, and annually thereafter, the 

4 Council shall submit to Congress a report 

5 on the activities carried out under this sec6 tion. 

7 (ii) INCLUSIONS.— 

8 (I) IN GENERAL.—The annual 

9 report shall include a summary of 

10 drought preparedness plans. 

11 (II) INITIAL REPORT.—The ini12 tial report submitted under subpara13 graph (A) shall include any rec14 ommendations of the Council. 

15 (B) FINAL REPORT.—Not later than seven 

16 years after the date of enactment of this Act, 

17 the Council shall submit to Congress a report 

18 that recommends— 

19 (i) amendments to this section; and 

20 (ii) whether the Council should con21 tinue. 

22 (e) POWERS OF THE COUNCIL.— 

23 (1) HEARINGS.—The Council may hold hear24 ings, meet and act at any time and place, take any 
759 

•HR 2419 EH1S 

1 testimony and receive any evidence that the Council 

2 considers advisable to carry out this section. 

3 (2) INFORMATION FROM FEDERAL AGENCIES.— 

4 (A) IN GENERAL.—The Council may ob5 tain directly from any Federal agency any in6 formation that the Council considers necessary 

7 to carry out this section. 

8 (B) PROVISION OF INFORMATION.— 

9 (i) IN GENERAL.—Except as provided 

10 in clause (ii), on request of the Secretary 

11 or the non-Federal co-chair of the Council, 

12 the head of a Federal agency may provide 

13 information to the Council. 

14 (ii) LIMITATION.—The head of a Fed15 eral agency shall not provide any informa16 tion to the Council that the Federal agency 

17 head determines the disclosure of which 

18 may cause harm to national security inter19 ests. 

20 (3) POSTAL SERVICES.—The Council may use 

21 the United States mail in the same manner and 

22 under the same conditions as other agencies of the 

23 Federal Government. 

24 (4) GIFTS.—The Council may accept, use, and 

25 dispose of gifts or donations of services or property. 
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•HR 2419 EH1S 

1 (f) COUNCIL PERSONNEL MATTERS.— 

2 (1) COMPENSATION OF MEMBERS.— 

3 (A) NON-FEDERAL EMPLOYEES.—A mem4 ber of the Council who is not an officer or em5 ployee of the Federal Government shall serve 

6 without compensation. 

7 (B) FEDERAL EMPLOYEES.—A member of 

8 the Council who is an officer or employee of the 

9 United States shall serve without compensation 

10 in addition to the compensation received for 

11 services of the member as an officer or em12 ployee of the Federal Government. 

13 (2) TRAVEL EXPENSES.—A member of the 

14 Council shall be allowed travel expenses at rates au15 thorized for an employee of an agency under sub16 chapter I of chapter 57 of title 5, United States 

17 Code, while away from the home or regular place of 

18 business of the member in the performance of the 

19 duties of the Council. 

20 (g) TERMINATION OF COUNCIL.—The Council shall 

21 terminate at the end of the eighth fiscal year beginning 

22 on or after the date of the enactment of this Act. 

23 (h) NATIONAL OFFICE OF DROUGHT PREPARED24 NESS.— 
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•HR 2419 EH1S 

1 (1) ESTABLISHMENT.—The Secretary shall es2 tablish an office to be known as the ‘‘National Office 

3 of Drought Preparedness’’ to provide assistance to 

4 the Council. 

5 (2) DIRECTOR OF THE OFFICE.— 

6 (A) APPOINTMENT.— 

7 (i) IN GENERAL.—The Under Sec8 retary shall appoint a Director of the Of9 fice under sections 3371 through 3375 of 

10 title 5, United States Code. 

11 (ii) QUALIFICATIONS.—The Director 

12 of the Office shall be a person who has ex13 perience in— 

14 (I) public administration; and 

15 (II) drought mitigation or 

16 drought management. 

17 (B) POWERS.—The Director of the Office 

18 may hire such other additional personnel or 

19 contract for services with other entities as nec20 essary to carry out the duties of the Office. 

21 (3) DETAIL OF GOVERNMENT EMPLOYEES.— 

22 (A) IN GENERAL.—Except for the require23 ments of section 204, an employee of the Fed24 eral Government may be detailed to the Office 

25 without reimbursement, unless the Secretary, 
762 

•HR 2419 EH1S 

1 on the recommendation of the Director of the 

2 Office, determines that reimbursement is appro3 priate. 

4 (B) CIVIL SERVICE STATUS.—The detail of 

5 an employee shall be without interruption or 

6 loss of civil service status or privilege. 

7 (i) DROUGHT ASSISTANCE FUND.— 

8 (1) ESTABLISHMENT.—There is established 

9 within the Department of Agriculture a fund to be 

10 known as the ‘‘Drought Assistance Fund’’. 

11 (2) PURPOSE.—The Fund shall be used to pay 

12 the costs of— 

13 (A) providing technical and financial as14 sistance (including grants and cooperative as15 sistance) to States, Indian tribes, local govern16 ments, watershed groups, and critical service 

17 providers for the development and implementa18 tion of drought preparedness plans; 

19 (B) providing to States, Indian tribes, local 

20 governments, watershed groups, and critical 

21 service providers the Federal share, as deter22 mined by the Secretary, in consultation with the 

23 other members of the Council, of the cost of 

24 mitigating the overall risk and impacts of 

25 droughts; 
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•HR 2419 EH1S 

1 (C) assisting States, Indian tribes, local 

2 governments, watershed groups, and critical 

3 service providers in the development of mitiga4 tion measures to address environmental, eco5 nomic, and human health and safety issues re6 lating to drought; and 

7 (D) expanding the technology transfer of 

8 drought and water conservation strategies and 

9 innovative water supply techniques. 

10 (3) GUIDELINES.— 

11 (A) IN GENERAL.—The Secretary, in con12 sultation with the non-Federal co-chair of the 

13 Council and with the concurrence of the Coun14 cil, shall develop and promulgate guidelines to 

15 implement this subsection. 

16 (B) REQUIREMENTS.—The guidelines shall 

17 address the following: 

18 (i) Ensure the distribution of amounts 

19 from the Fund within a reasonable period 

20 of time. 

21 (ii) Take into consideration regional 

22 differences. 

23 (iii) Take into consideration all im24 pacts of drought in a balanced manner. 
764 

•HR 2419 EH1S 

1 (iv) Prohibit the use of amounts from 

2 the Fund for Federal salaries that are not 

3 directly related to the provision of drought 

4 assistance. 

5 (v) Require that distribution of 

6 amounts from the Fund granted to States, 

7 local governments, watershed groups, and 

8 critical service providers to meet the re9 quirements of this subsection be coordi10 nated with and managed by the State in 

11 which such local government or critical 

12 service provider is located, consistent with 

13 the drought preparedness priorities and 

14 relevant water management plans within 

15 the State. 

16 (vi) Require that distribution of 

17 amounts from the Fund granted to Indian 

18 tribes to meet the requirements of this 

19 subsection be used to implement plans that 

20 are, to the extent practicable, in coordina21 tion with each State in which lands of the 

22 Indian tribe are located and consistent 

23 with existing drought preparedness and 

24 water management plans of such States. 
765 

•HR 2419 EH1S 

1 (vii) Require that a State, Indian 

2 tribe, local government, watershed group, 

3 or critical service provider that receives 

4 Federal funds under paragraph (2) or (3) 

5 of subsection (b) cover not less than 25 

6 percent of the overall cost incurred in car7 rying out the project for which the Federal 

8 funds are provided. This cost sharing re9 quirement may be satisfied using non-Fed10 eral grants or cash donations made by 

11 non-Federal third parties. 

12 (4) SPECIAL REQUIREMENT FOR INTERSTATE

13 WATERSHEDS.— 

14 (A) DEVELOPMENT OF DROUGHT PRE15 PAREDNESS PLANS.—In order to receive funds 

16 under this subsection to develop drought pre17 paredness plans for interstate watersheds, the 

18 guidelines shall also require the relevant States, 

19 Indian tribes, or both, in which the watershed 

20 is located, to coordinate in the development of 

21 the drought preparedness plan. The develop22 ment of such plans shall— 

23 (i) be consistent with the relevant 

24 States’ and Tribal water laws, policies, and 

25 agreements; 
766 

•HR 2419 EH1S 

1 (ii) be consistent and coordinated with 

2 any existing interstate stream compacts; 

3 (iii) include the participation of any 

4 relevant watershed groups located in the 

5 relevant States, Indian tribes, or both; and 

6 (iv) recognize that implementation of 

7 the interstate drought preparedness plan 

8 will involve further coordination among the 

9 relevant States, Indian tribes, or both, ex10 cept that each State and Indian tribe has 

11 sole jurisdiction over implementation of 

12 that portion of the watershed that exists 

13 within their boundaries. 

14 (B) IMPLEMENTATION OF DROUGHT PRE15 PAREDNESS PLANS.—In order to receive funds 

16 under this subsection to implement drought 

17 preparedness plans for interstate watersheds, 

18 the guidelines shall also require, to the extent 

19 practicable, the relevant States, Indian tribes, 

20 or both, in which the watershed is located, to 

21 coordinate in the implementation of the drought 

22 preparedness plan, recognizing the sovereignty 

23 of the States and Indian tribes. Implementation 

24 of interstate drought preparedness plans 

25 shall— 
767 

•HR 2419 EH1S 

1 (i) be contingent upon the existence of 

2 a drought preparedness plan, but not re3 quire the distribution of funds to all States 

4 and Indian tribes in which the watershed is 

5 located; 

6 (ii) consider the level of impact within 

7 the watershed on each of the relevant 

8 States, Indian tribes, or both; and 

9 (iii) not impede on State water rights 

10 established as of the date of enactment of 

11 this Act. 

12 (j) DROUGHT PREPAREDNESS PLANS.— 

13 (1) IN GENERAL.—The Secretary shall— 

14 (A) with the concurrence of the Council, 

15 jointly develop guidelines for administering a 

16 national program to provide technical and fi17 nancial assistance to States, Indian tribes, local 

18 governments, watershed groups, and critical 

19 service providers for the development, mainte20 nance, and implementation of drought pre21 paredness plans; and 

22 (B) promulgate the guidelines developed 

23 under subparagraph (A). 

24 (2) REQUIREMENTS.—To build on the experi25 ence and avoid duplication of efforts of Federal, 
768 

•HR 2419 EH1S 

1 State, local, tribal, and regional drought plans in ex2 istence on the date of enactment of this Act, the 

3 guidelines may recognize and incorporate those 

4 plans. 

5 (3) FEDERAL PLANS.— 

6 (A) IN GENERAL.—The Secretary and 

7 other appropriate Federal agency heads shall 

8 develop and implement Federal drought pre9 paredness plans for agencies under the jurisdic10 tion of the appropriate Federal agency head. 

11 (B) REQUIREMENTS.—The Federal 

12 plans— 

13 (i) shall be integrated with each other; 

14 (ii) may be included as components of 

15 other Federal planning requirements; 

16 (iii) shall be integrated with drought 

17 preparedness plans of State, tribal, and 

18 local governments that are affected by 

19 Federal projects and programs; and 

20 (iv) shall be completed not later than 

21 two years after the date of the enactment 

22 of this Act. 

23 (4) STATE AND TRIBAL PLANS.—States and In24 dian tribes may develop and implement State and 

25 tribal drought preparedness plans that— 
769 

•HR 2419 EH1S 

1 (A) address monitoring of resource condi2 tions that are related to drought; 

3 (B) identify areas that are at a high risk 

4 for drought; 

5 (C) describes mitigation strategies to ad6 dress and reduce the vulnerability of an area to 

7 drought; and 

8 (D) are integrated with State, tribal, and 

9 local water plans in existence on the date of en10 actment of this Act. 

11 (5) REGIONAL AND LOCAL PLANS.—Local gov12 ernments, watershed groups, and regional water pro13 viders may develop and implement drought pre14 paredness plans that— 

15 (A) address monitoring of resource condi16 tions that are related to drought; 

17 (B) identify areas that are at a high risk 

18 for drought; 

19 (C) describe mitigation strategies to ad20 dress and reduce the vulnerability of an area to 

21 drought; and 

22 (D) are integrated with corresponding 

23 State plans. 

24 (6) PLAN ELEMENTS.—A drought preparedness 

25 plan— 
770 

•HR 2419 EH1S 

1 (A) shall be consistent with Federal and 

2 State laws, contracts, and policies; 

3 (B) shall allow each State to continue to 

4 manage water and wildlife in the State; 

5 (C) shall address the health, safety, and 

6 economic interests of those persons directly af7 fected by drought; 

8 (D) shall address the economic impact on 

9 resource-dependent businesses and industries, 

10 including regional tourism; 

11 (E) may include— 

12 (i) provisions for water management 

13 strategies to be used during various 

14 drought or water shortage thresholds, con15 sistent with State water law; 

16 (ii) provisions to address key issues 

17 relating to drought (including public 

18 health, safety, economic factors, and envi19 ronmental issues such as water quality, 

20 water quantity, protection of threatened 

21 and endangered species, and fire manage22 ment); 

23 (iii) provisions that allow for public 

24 participation in the development, adoption, 

25 and implementation of drought plans; 
771 

•HR 2419 EH1S 

1 (iv) provisions for periodic drought ex2 ercises, revisions, and updates; 

3 (v) a hydrologic characterization study 

4 to determine how water is being used dur5 ing times of normal water supply avail6 ability to anticipate the types of drought 

7 mitigation actions that would most effec8 tively improve water management during a 

9 drought; 

10 (vi) drought triggers; 

11 (vii) specific implementation actions 

12 for droughts; 

13 (viii) a water shortage allocation plan, 

14 consistent with State water law; and 

15 (ix) comprehensive insurance and fi16 nancial strategies to manage the risks and 

17 financial impacts of droughts; and 

18 (F) shall take into consideration— 

19 (i) the financial impact of the plan on 

20 the ability of the utilities to ensure rate 

21 stability and revenue stream; and 

22 (ii) economic impacts from water 

23 shortages. 

24 (k) AUTHORIZATION OF APPROPRIATIONS.— 
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1 (1) COUNCIL.—There is authorized to be appro2 priated to carry out the activities of the Council 

3 $2,000,000 for fiscal year 2008 and for each of the 

4 subsequent seven fiscal years. 

5 (2) FUND.—There are authorized to be appro6 priated to the Fund such sums as are necessary to 

7 carry out subsection (i). 

8 SEC. 11013. PAYMENT OF PORTION OF PREMIUM FOR AREA 

9 REVENUE PLANS. 

10 Section 508(e) of the Federal Crop Insurance Act (7 

11 U.S.C. 1508(e)) is amended— 

12 (1) in paragraph (2), in the matter preceding 

13 subparagraph (A), by striking ‘‘paragraph (4)’’ and 

14 inserting ‘‘paragraphs (4), (6), and (7)’’; and 

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

16 ‘‘(6) PREMIUM SUBSIDY FOR AREA REVENUE

17 PLANS.—Subject to paragraph (4), in the case of a 

18 policy or plan of insurance that covers losses due to 

19 a reduction in revenue in an area, the amount of the 

20 premium paid by the Corporation shall be as follows: 

21 ‘‘(A) In the case of additional area cov22 erage equal to or greater than 70 percent, but 

23 less than 75 percent, of the recorded county 

24 yield indemnified at not greater than 100 per-
773 

•HR 2419 EH1S 

1 cent of the expected market price, the amount 

2 shall be equal to the sum of— 

3 ‘‘(i) 59 percent of the amount of the 

4 premium established under subsection 

5 (d)(2)(B)(i) for the coverage level selected; 

6 and 

7 ‘‘(ii) the amount determined under 

8 subsection (d)(2)(B)(ii) for the coverage 

9 level selected to cover operating and ad10 ministrative expenses. 

11 ‘‘(B) In the case of additional area cov12 erage equal to or greater than 75 percent, but 

13 less than 85 percent, of the recorded county 

14 yield indemnified at not greater than 100 per15 cent of the expected market price, the amount 

16 shall be equal to the sum of— 

17 ‘‘(i) 55 percent of the amount of the 

18 premium established under subsection 

19 (d)(2)(B)(i) for the coverage level selected; 

20 and 

21 ‘‘(ii) the amount determined under 

22 subsection (d)(2)(B)(ii) for the coverage 

23 level selected to cover operating and ad24 ministrative expenses. 
774 

•HR 2419 EH1S 

1 ‘‘(C) In the case of additional area cov2 erage equal to or greater than 85 percent, but 

3 less than 90 percent, of the recorded county 

4 yield indemnified at not greater than 100 per5 cent of the expected market price, the amount 

6 shall be equal to the sum of— 

7 ‘‘(i) 49 percent of the amount of the 

8 premium established under subsection 

9 (d)(2)(B)(i) for the coverage level selected; 

10 and 

11 ‘‘(ii) the amount determined under 

12 subsection (d)(2)(B)(ii) for the coverage 

13 level selected to cover operating and ad14 ministrative expenses. 

15 ‘‘(D) In the case of additional area cov16 erage equal to or greater than 90 percent of the 

17 recorded county yield indemnified at not greater 

18 than 100 percent of the expected market price, 

19 the amount shall be equal to the sum of— 

20 ‘‘(i) 44 percent of the amount of the 

21 premium established under subsection 

22 (d)(2)(B)(i) for the coverage level selected; 

23 and 

24 ‘‘(ii) the amount determined under 

25 subsection (d)(2)(B)(ii) for the coverage 
775 

•HR 2419 EH1S 

1 level selected to cover operating and ad2 ministrative expenses. 

3 ‘‘(7) PREMIUM SUBSIDY FOR AREA YIELD

4 PLANS.—Subject to paragraph (4), in the case of a 

5 policy or plan of insurance that covers losses due to 

6 a loss of yield or prevented planting in an area, the 

7 amount of the premium paid by the Corporation 

8 shall be as follows: 

9 ‘‘(A) In the case of additional area cov10 erage equal to or greater than 70 percent, but 

11 less than 80 percent, of the recorded county 

12 yield indemnified at not greater than 100 per13 cent of the expected market price, the amount 

14 shall be equal to the sum of— 

15 ‘‘(i) 59 percent of the amount of the 

16 premium established under subsection 

17 (d)(2)(B)(i) for the coverage level selected; 

18 and 

19 ‘‘(ii) the amount determined under 

20 subsection (d)(2)(B)(ii) for the coverage 

21 level selected to cover operating and ad22 ministrative expenses. 

23 ‘‘(B) In the case of additional area cov24 erage equal to or greater than 80 percent, but 

25 less than 90 percent, of the recorded county 
776 

•HR 2419 EH1S 

1 yield indemnified at not greater than 100 per2 cent of the expected market price, the amount 

3 shall be equal to the sum of— 

4 ‘‘(i) 55 percent of the amount of the 

5 premium established under subsection 

6 (d)(2)(B)(i) for the coverage level selected; 

7 and 

8 ‘‘(ii) the amount determined under 

9 subsection (d)(2)(B)(ii) for the coverage 

10 level selected to cover operating and ad11 ministrative expenses. 

12 ‘‘(C) In the case of additional area cov13 erage equal to or greater than 90 percent, of 

14 the recorded county yield indemnified at not 

15 greater than 100 percent of the expected mar16 ket price, the amount shall be equal to the sum 

17 of— 

18 ‘‘(i) 51 percent of the amount of the 

19 premium established under subsection 

20 (d)(2)(B)(i) for the coverage level selected; 

21 and 

22 ‘‘(ii) the amount determined under 

23 subsection (d)(2)(B)(ii) for the coverage 

24 level selected to cover operating and ad25 ministrative expenses.’’. 
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1 SEC. 11014. SHARE OF RISK. 

2 (a) IN GENERAL.—Section 508(k)(3) of the Federal 

3 Crop Insurance Act (7 U.S.C. 1508(k)(3)) is amended— 

4 (1) by striking ‘‘require the’’ and inserting ‘‘re5 quire— 

6 ‘‘(A) the’’; 

7 (2) by striking the period at the end and insert8 ing ‘‘; and’’; and 

9 (3) by adding at the end the following: 

10 ‘‘(B)(i) the cumulative underwriting gain 

11 or loss, and the associated premium and losses 

12 with such amount, calculated under any rein13 surance agreement (except livestock) ceded to 

14 the Corporation by each approved insurance 

15 provider to be not less than 12.5 percent; and 

16 ‘‘(ii) the Corporation to pay a ceding com17 mission to reinsured companies of 2 percent of 

18 the premium used to define the loss ratio for 

19 the approved insurance provider’s book of busi20 ness that is described in clause (i).’’. 

21 (b) CONFORMING AMENDMENTS.—Section 516(a)(2) 

22 of the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) 

23 is amended by adding at the end the following new sub24 paragraph: 

25 ‘‘(E) Costs associated with the ceding com26 missions described in section 508(k)(3)(B)(ii).’’. 
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•HR 2419 EH1S 

1 (c) EFFECTIVE DATE.—This section shall take effect 

2 on the first June 30th after the date of the enactment 

3 of this Act. 

4 SEC. 11015. LIVESTOCK ASSISTANCE. 

5 Notwithstanding any other provision of law, the pur6 chase of a Non-insured Assistance Program policy shall 

7 not be a requirement to receive any Federal livestock dis8 aster assistance. 

9 SEC. 11016. DETERMINATION OF CERTAIN SWEET POTATO 

10 PRODUCTION. 

11 In the case of sweet potatoes, Risk Management 

12 Agency Pilot Program data shall not be considered for 

13 purposes of determining production for the 2005–2006 

14 Farm Service Agency Crop Disaster Program. 

15 Subtitle B—Livestock and Poultry 

16 SEC. 11101. SENSE OF CONGRESS REGARDING 

17 PSEUDORABIES ERADICATION PROGRAM. 

18 It is the sense of Congress that— 

19 (1) the Secretary should recognize the threat 

20 feral swine pose to the domestic swine population; 

21 (2) keeping the United States commercial swine 

22 herd free of pseudorabies is essential to maintaining 

23 and growing pork export markets; 

24 (3) the establishment of a swine surveillance 

25 system will assist the swine industry in the moni-
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•HR 2419 EH1S 

1 toring, surveillance, and eradication of pseudorabies; 

2 and 

3 (4) pseudorabies eradication is a high priority 

4 that the Secretary should carry out under the au5 thorities of the Animal Health Protection Act. 

6 SEC. 11102. ARBITRATION OF LIVESTOCK AND POULTRY 

7 CONTRACTS. 

8 The Packers and Stockyards Act, 1921 (7 U.S.C. 181 

9 et seq.) is amended— 

10 (1) by redesignating section 416 as section 417; 

11 and 

12 (2) by inserting after section 415 the following 

13 new section: 

14 ‘‘SEC. 416. ARBITRATION OF LIVESTOCK AND POULTRY 

15 CONTRACTS. 

16 ‘‘(a) ISSUANCE OF REGULATIONS.—The Secretary of 

17 Agriculture shall promulgate regulations to establish 

18 standards related to the inclusion of arbitration provisions 

19 in livestock and poultry production contracts. 

20 ‘‘(b) CONTENT.—Such regulations shall— 

21 ‘‘(1) establish permissible agreements with re22 spect to venue of arbitration, allocation of arbitra23 tion costs, number and appointment of arbitrators, 

24 and any other element of an arbitration agreement 

25 that the Secretary determines to be necessary; 
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1 ‘‘(2) permit a producer to seek relief in a small 

2 claims court in lieu of arbitration for disputes or 

3 claims within the jurisdiction of a small claims 

4 court, despite the existence of an arbitration agree5 ment; and 

6 ‘‘(3) require any person appointed or to be ap7 pointed as an arbitrator to disclose any circumstance 

8 likely to raise doubt as to the arbitrator’s impar9 tiality.’’. 

10 SEC. 11103. STATE-INSPECTED MEAT AND POULTRY. 

11 (a) REVIEW OF STATE MEAT AND POULTRY INSPEC12 TION PROGRAMS.— 

13 (1) REPORT.—Not later than 30 days after the 

14 date of the enactment of this Act, the Secretary of 

15 Agriculture shall submit to Congress a report con16 taining the results of a review by the Secretary of 

17 each State meat and poultry inspection program. 

18 Such report shall include— 

19 (A) a determination of the effectiveness of 

20 each State meat and poultry inspection pro21 gram; and 

22 (B) an identification of changes that are 

23 necessary to enable future transition to a State 

24 program of enforcing Federal inspection re-
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1 quirements as described in the amendments 

2 made by subsections (b) and (c). 

3 (2) AUTHORIZATION OF APPROPRIATIONS.— 

4 (A) IN GENERAL.—There are authorized to 

5 be appropriated such sums as are necessary to 

6 carry out this section. 

7 (B) AVAILABLE FUNDS.—Notwithstanding 

8 any other provision of law, only funds specifi9 cally appropriated under subparagraph (A) may 

10 be used to carry out this subsection. 

11 (b) STATE MEAT INSPECTION PROGRAMS.— 

12 (1) IN GENERAL.—Title III of the Federal 

13 Meat Inspection Act (21 U.S.C. 661 et seq.) is 

14 amended to read as follows: 

15 ‘‘TITLE III—STATE MEAT 

16 INSPECTION PROGRAMS 

17 ‘‘SEC. 301. POLICY AND FINDINGS. 

18 ‘‘(a) POLICY.—It is the policy of Congress to protect 

19 the public from meat and meat food products that are 

20 adulterated or misbranded and to assist in efforts by State 

21 and other government agencies to accomplish that policy. 

22 ‘‘(b) FINDINGS.—Congress finds that— 

23 ‘‘(1) the goal of a safe and wholesome supply 

24 of meat and meat food products throughout the 

25 United States would be better served if a consistent 
782 

•HR 2419 EH1S 

1 set of requirements, established by the Federal Gov2 ernment, were applied to all meat and meat food 

3 products, whether produced under State inspection 

4 or Federal inspection; 

5 ‘‘(2) under such a system, State and Federal 

6 meat inspection programs would function together to 

7 create a seamless inspection system to ensure food 

8 safety and inspire consumer confidence in the food 

9 supply in interstate commerce; and 

10 ‘‘(3) such a system would ensure the viability of 

11 State meat inspection programs, which should help 

12 to foster the viability of small establishments. 

13 ‘‘SEC. 302. APPROVAL OF STATE MEAT INSPECTION PRO14 GRAMS. 

15 ‘‘(a) IN GENERAL.—Notwithstanding any other pro16 vision of this Act, the Secretary may approve a State meat 

17 inspection program and allow the shipment in commerce 

18 of carcasses, parts of carcasses, meat, and meat food prod19 ucts inspected under the State meat inspection program 

20 in accordance with this title. 

21 ‘‘(b) ELIGIBILITY.— 

22 ‘‘(1) IN GENERAL.—To receive or maintain ap23 proval from the Secretary for a State meat inspec24 tion program in accordance with subsection (a), a 

25 State shall— 
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1 ‘‘(A) implement a State meat inspection 

2 program that enforces the mandatory ante3 mortem and postmortem inspection, reinspec4 tion, sanitation, and related Federal require5 ments of titles I, II, and IV (including the regu6 lations, directives, notices, policy memoranda, 

7 and other regulatory requirements issued under 

8 those titles); and 

9 ‘‘(B) enter into a cooperative agreement 

10 with the Secretary in accordance with sub11 section (c). 

12 ‘‘(2) ADDITIONAL REQUIREMENTS.— 

13 ‘‘(A) IN GENERAL.—In addition to the re14 quirements described in paragraph (1), a State 

15 meat inspection program reviewed in accord16 ance with section 11103(a) of the Farm, Nutri17 tion, and Bioenergy Act of 2007 shall imple18 ment, not later than 180 days after the date on 

19 which the report is submitted under subsection 

20 (b) of such section, all recommendations from 

21 the review, in a manner approved by the Sec22 retary. 

23 ‘‘(B) REVIEW OF NEW STATE MEAT IN24 SPECTION PROGRAMS.— 
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1 ‘‘(i) REVIEW REQUIREMENT.—Not 

2 later than one year after the date on which 

3 the Secretary approves a new State meat 

4 inspection program, the Secretary shall 

5 conduct a review of the new State meat in6 spection program, which shall include— 

7 ‘‘(I) a determination of the effec8 tiveness of the new State meat inspec9 tion program; and 

10 ‘‘(II) identification of changes 

11 necessary to ensure enforcement of 

12 Federal inspection requirements. 

13 ‘‘(ii) IMPLEMENTATION REQUIRE14 MENTS.—In addition to the requirements 

15 described in paragraph (1), to continue to 

16 be an approved State meat inspection pro17 gram, a new State meat inspection pro18 gram shall implement all recommendations 

19 from the review conducted in accordance 

20 with this subparagraph, in a manner ap21 proved by the Secretary. 

22 ‘‘(iii) DEFINITION OF NEW STATE

23 MEAT INSPECTION PROGRAM.—In this sub24 paragraph, the term ‘new State meat in25 spection program’ means a State meat in-
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•HR 2419 EH1S 

1 spection program that is not approved in 

2 accordance with subsection (a) between the 

3 effective date of the Farm, Nutrition, and 

4 Bioenergy Act of 2007 and the date that 

5 is one year after the effective date of such 

6 Act. 

7 ‘‘(c) COOPERATIVE AGREEMENT.—Notwithstanding 

8 chapter 63 of title 31, United States Code, the Secretary 

9 may enter into a cooperative agreement with a State 

10 that— 

11 ‘‘(1) establishes the terms governing the rela12 tionship between the Secretary and the State meat 

13 inspection program; 

14 ‘‘(2) provides that the State will adopt (includ15 ing adoption by reference) provisions identical to ti16 tles I, II, and IV (including the regulations, direc17 tives, notices, policy memoranda, and other regu18 latory requirements issued under those titles); 

19 ‘‘(3) provides that State-inspected and passed 

20 meat and meat food products shall be marked with 

21 a mark of State inspection, which shall be deemed 

22 to be an official mark, in accordance with require23 ments issued by the Secretary; 

24 ‘‘(4) provides that the State will comply with all 

25 labeling requirements issued by the Secretary gov-
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1 erning meat and meat food products inspected under 

2 the State meat inspection program; 

3 ‘‘(5) provides that the Secretary shall have au4 thority— 

5 ‘‘(A) to detain and seize livestock, car6 casses, parts of carcasses, meat, and meat food 

7 products under the State meat inspection pro8 gram; 

9 ‘‘(B) to obtain access to facilities, records, 

10 livestock, carcasses, parts of carcasses, meat, 

11 and meat food products of any person, firm, or 

12 corporation that slaughters, processes, handles, 

13 stores, transports, or sells meat or meat food 

14 products inspected under the State meat inspec15 tion program to determine compliance with this 

16 Act (including the regulations issued under this 

17 Act); and 

18 ‘‘(C) to direct the State to conduct any ac19 tivity authorized to be conducted by the Sec20 retary under this Act (including the regulations 

21 issued under this Act); and 

22 ‘‘(6) includes such other terms as the Secretary 

23 determines to be necessary to ensure that the ac24 tions of the State and the State meat inspection pro25 gram are consistent with this Act (including the reg-
787 

•HR 2419 EH1S 

1 ulations, directives, notices, policy memoranda, and 

2 other regulatory requirements issued under this 

3 Act). 

4 ‘‘(d) RESTRICTION ON ESTABLISHMENT SIZE.—After 

5 the date that is 90 days after the effective date of the 

6 Farm, Nutrition, and Bioenergy Act of 2007, establish7 ments with more than 50 employees may not be accepted 

8 into a State meat inspection program. Any establishment 

9 that is subject to state inspection on such date, may re10 main subject to State inspection. 

11 ‘‘(e) REIMBURSEMENT OF STATE COSTS.—The Sec12 retary may reimburse a State for not more than 50 per13 cent of the State’s costs of meeting the Federal require14 ments for the State meat inspection program. 

15 ‘‘(f) SAMPLING.—A duly authorized representative of 

16 the Secretary shall be afforded access to State inspected 

17 establishments to take reasonable samples of the inventory 

18 of such establishments upon payment of the fair market 

19 value therefor. 

20 ‘‘(g) NONCOMPLIANCE.—If the Secretary determines 

21 that a State meat inspection program does not comply 

22 with this title or the cooperative agreement under sub23 section (c), the Secretary shall take such action as the Sec24 retary determines to be necessary to ensure that the car25 casses, parts of carcasses, meat, and meat food products 
788 

•HR 2419 EH1S 

1 in the State are inspected in a manner that effectuates 

2 this Act (including the regulations, directives, notices, pol3 icy memoranda, and other regulatory requirements issued 

4 under this Act). 

5 ‘‘SEC. 303. AUTHORITY TO TAKE OVER STATE MEAT INSPEC6 TION PROGRAMS. 

7 ‘‘(a) NOTIFICATION.—If the Secretary has reason to 

8 believe that a State is not in compliance with this Act (in9 cluding the regulations, directives, notices, policy memo10 randa, and other regulatory requirements issued under 

11 this Act) or the cooperative agreement under section 

12 302(c) and is considering the revocation or temporary sus13 pension of the approval of the State meat inspection pro14 gram, the Secretary shall promptly notify and consult with 

15 the Governor of the State. 

16 ‘‘(b) SUSPENSION AND REVOCATION.— 

17 ‘‘(1) IN GENERAL.—The Secretary may revoke 

18 or temporarily suspend the approval of a State meat 

19 inspection program and take over a State meat in20 spection program if the Secretary determines that 

21 the State meat inspection program is not in compli22 ance with this Act (including the regulations, direc23 tives, notices, policy memoranda, and other regu24 latory requirements issued under this Act) or the co25 operative agreement under section 302(c). 
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1 ‘‘(2) PROCEDURES FOR REINSTATEMENT.—A 

2 State meat inspection program that has been the 

3 subject of a revocation may be reinstated as an ap4 proved State meat inspection program under this 

5 Act only in accordance with the procedures under 

6 section 302(b)(2)(B). 

7 ‘‘(c) PUBLICATION.—If the Secretary revokes or tem8 porarily suspends the approval of a State meat inspection 

9 program in accordance with subsection (b), the Secretary 

10 shall publish notice of the revocation or temporary suspen11 sion under that subsection in the Federal Register. 

12 ‘‘(d) INSPECTION OF ESTABLISHMENTS.—Not later 

13 than 30 days after the date of publication of a determina14 tion under subsection (c), an establishment subject to a 

15 State meat inspection program with respect to which the 

16 Secretary makes a determination under subsection (b) 

17 shall be inspected by the Secretary. 

18 ‘‘SEC. 304. EXPEDITED AUTHORITY TO TAKE OVER INSPEC19 TION OF STATE-INSPECTED ESTABLISH20 MENTS. 

21 ‘‘Notwithstanding any other provision of this title, if 

22 the Secretary determines that an establishment operating 

23 under a State meat inspection program is not operating 

24 in accordance with this Act (including the regulations, di25 rectives, notices, policy memoranda, and other regulatory 
790 

•HR 2419 EH1S 

1 requirements issued under this Act) or the cooperative 

2 agreement under section 302(c), and the State, after noti3 fication by the Secretary to the Governor, has not taken 

4 appropriate action within a reasonable time as determined 

5 by the Secretary, the Secretary may immediately deter6 mine that the establishment is an establishment that shall 

7 be inspected by the Secretary, until such time as the Sec8 retary determines that the State will meet the require9 ments of this Act (including the regulations, directives, no10 tices, policy memoranda, and other regulatory require11 ments) and the cooperative agreement with respect to the 

12 establishment. 

13 ‘‘SEC. 305. ANNUAL REVIEW. 

14 ‘‘(a) IN GENERAL.—The Secretary shall develop and 

15 implement a process to annually review each State meat 

16 inspection program approved under this title and to certify 

17 the State meat inspection programs that comply with the 

18 cooperative agreement entered into with the State under 

19 section 302(c). 

20 ‘‘(b) COMMENT FROM INTERESTED PARTIES.—In 

21 developing the review process described in subsection (a), 

22 the Secretary shall solicit comment from interested par23 ties. 
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1 ‘‘SEC. 306. FEDERAL INSPECTION OPTION. 

2 ‘‘(a) IN GENERAL.—An establishment that operates 

3 in a State with an approved State meat inspection pro4 gram may apply for inspection under the State meat in5 spection program or for Federal inspection. 

6 ‘‘(b) LIMITATION.—An establishment shall not make 

7 an application under subsection (a) more than once every 

8 four years.’’. 

9 (2) RESTAURANTS AND RETAIL STORES.—Title 

10 IV of the Federal Meat Inspection Act is amended— 

11 (A) by redesignating section 411 (21 

12 U.S.C. 681) as section 414; and 

13 (B) by inserting after section 410 (21 

14 U.S.C. 680) the following: 

15 ‘‘SEC. 411. RESTAURANTS AND RETAIL STORES. 

16 ‘‘(a) LIMITATION ON APPLICABILITY OF INSPECTION

17 REQUIREMENTS.—The provisions of this Act requiring in18 spection of the slaughter of animals and the preparation 

19 of carcasses, parts of carcasses, meat, and meat food prod20 ucts shall not apply to operations of types traditionally 

21 and usually conducted at retail stores and restaurants, as 

22 determined by the Secretary, if the operations are con23 ducted at a retail store, restaurant, or similar retail estab24 lishment for sale of such prepared articles in normal retail 

25 quantities or for service of the articles to consumers at 

26 such an establishment. 
792 

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1 ‘‘(b) CENTRAL KITCHEN FACILITIES.— 

2 ‘‘(1) IN GENERAL.—For the purposes of this 

3 section, operations conducted at a central kitchen fa4 cility of a restaurant shall be considered to be con5 ducted at a restaurant if the central kitchen of the 

6 restaurant prepares meat or meat food products that 

7 are ready to eat when they leave the facility and are 

8 served in meals or as entrees only to customers at 

9 restaurants owned or operated by the same person, 

10 firm, or corporation that owns or operates the facil11 ity. 

12 ‘‘(2) EXCEPTION.—A facility described in para13 graph (1) shall be subject to section 202 and may 

14 be subject to the inspection requirements of title I 

15 for as long as the Secretary determines to be nec16 essary, if the Secretary determines that the sanitary 

17 conditions or practices of the facility or the proc18 essing procedures or methods at the facility are such 

19 that any of the meat or meat food products of the 

20 facility are rendered adulterated. 

21 ‘‘SEC. 412. ACCEPTANCE OF INTERSTATE SHIPMENTS OF 

22 MEAT AND MEAT FOOD PRODUCTS. 

23 ‘‘Notwithstanding any provision of State law, a State 

24 or local government shall not prohibit or restrict the move25 ment or sale of meat or meat food products that have been 
793 

•HR 2419 EH1S 

1 inspected and passed in accordance with this Act for inter2 state commerce. 

3 ‘‘SEC. 413. ADVISORY COMMITTEES FOR FEDERAL AND 

4 STATE PROGRAMS. 

5 ‘‘The Secretary may appoint advisory committees 

6 consisting of such representatives of appropriate State 

7 agencies as the Secretary and the State agencies may des8 ignate to consult with the Secretary concerning State and 

9 Federal programs with respect to meat inspection and 

10 other matters within the scope of this Act.’’. 

11 (c) STATE POULTRY INSPECTION PROGRAMS.— 

12 (1) IN GENERAL.—The Poultry Products In13 spection Act (21 U.S.C. 451 et seq.) is amended by 

14 striking section 5 and inserting the following: 

15 ‘‘SEC. 5. STATE POULTRY INSPECTION PROGRAMS. 

16 ‘‘(a) POLICY.—It is the policy of Congress to protect 

17 the public from poultry products that are adulterated or 

18 misbranded and to assist in efforts by State and other gov19 ernment agencies to accomplish that policy. 

20 ‘‘(b) FINDINGS.—Congress finds that— 

21 ‘‘(1) the goal of a safe and wholesome supply 

22 of poultry products throughout the United States 

23 would be better served if a consistent set of require24 ments, established by the Federal Government, were 
794 

•HR 2419 EH1S 

1 applied to all poultry products, whether produced 

2 under State inspection or Federal inspection; 

3 ‘‘(2) under such a system, State and Federal 

4 poultry inspection programs would function together 

5 to create a seamless inspection system to ensure 

6 food safety and inspire consumer confidence in the 

7 food supply in interstate commerce; and 

8 ‘‘(3) such a system would ensure the viability of 

9 State poultry inspection programs, which should 

10 help to foster the viability of small official establish11 ments. 

12 ‘‘(c) APPROVAL OF STATE POULTRY INSPECTION

13 PROGRAMS.— 

14 ‘‘(1) IN GENERAL.—Notwithstanding any other 

15 provision of this Act, the Secretary may approve a 

16 State poultry inspection program and allow the ship17 ment in commerce of poultry products inspected 

18 under the State poultry inspection program in ac19 cordance with this section and section 5A. 

20 ‘‘(2) ELIGIBILITY.— 

21 ‘‘(A) IN GENERAL.—To receive or main22 tain approval from the Secretary for a State 

23 poultry inspection program in accordance with 

24 paragraph (1), a State shall— 
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•HR 2419 EH1S 

1 ‘‘(i) implement a State poultry inspec2 tion program that enforces the mandatory 

3 antemortem and postmortem inspection, 

4 reinspection, sanitation, and related Fed5 eral requirements of sections 1 through 4 

6 and 6 through 33 (including the regula7 tions, directives, notices, policy memo8 randa, and other regulatory requirements 

9 issued under those sections); and 

10 ‘‘(ii) enter into a cooperative agree11 ment with the Secretary in accordance 

12 with paragraph (3). 

13 ‘‘(B) ADDITIONAL REQUIREMENTS.— 

14 ‘‘(i) IN GENERAL.—In addition to the 

15 requirements described in subparagraph 

16 (A), a State poultry inspection program re17 viewed in accordance with section 11103(a) 

18 of the Farm, Nutrition, and Bioenergy Act 

19 of 2007 shall implement, not later 180 

20 days after the date on which the report is 

21 submitted under subsection (b) of such 

22 section, all recommendations from the re23 view, in a manner approved by the Sec24 retary. 
796 

•HR 2419 EH1S 

1 ‘‘(ii) REVIEW OF NEW STATE POUL2 TRY INSPECTION PROGRAMS.— 

3 ‘‘(I) REVIEW REQUIREMENT.— 

4 Not later than one year after the date 

5 on which the Secretary approves a 

6 new State poultry inspection program, 

7 the Secretary shall conduct a review 

8 of the new State poultry inspection 

9 program, which shall include— 

10 ‘‘(aa) a determination of the 

11 effectiveness of the new State 

12 poultry inspection program; and 

13 ‘‘(bb) identification of 

14 changes necessary to ensure en15 forcement of Federal inspection 

16 requirements. 

17 ‘‘(II) IMPLEMENTATION RE18 QUIREMENTS.—In addition to the re19 quirements described in subparagraph 

20 (A), to continue to be an approved 

21 State poultry inspection program, a 

22 new State poultry inspection program 

23 shall implement all recommendations 

24 from the review conducted in accord-
797 

•HR 2419 EH1S 

1 ance with this clause, in a manner ap2 proved by the Secretary. 

3 ‘‘(III) DEFINITION OF NEW

4 STATE POULTRY INSPECTION PRO5 GRAM.—In this clause, the term ‘new 

6 State poultry inspection program’ 

7 means a State poultry inspection pro8 gram that is not approved in accord9 ance with paragraph (1) between the 

10 effective date of the Farm, Nutrition, 

11 and Bioenergy Act of 2007 and the 

12 date that is one year after the effec13 tive date of such Act. 

14 ‘‘(3) COOPERATIVE AGREEMENT.—Notwith15 standing chapter 63 of title 31, United States Code, 

16 the Secretary may enter into a cooperative agree17 ment with a State that— 

18 ‘‘(A) establishes the terms governing the 

19 relationship between the Secretary and the 

20 State poultry inspection program; 

21 ‘‘(B) provides that the State will adopt (in22 cluding adoption by reference) provisions iden23 tical to sections 1 through 4 and 6 through 33 

24 (including the regulations, directives, notices, 
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•HR 2419 EH1S 

1 policy memoranda, and other regulatory re2 quirements issued under those sections); 

3 ‘‘(C) provides that State-inspected and 

4 passed poultry products may be marked with 

5 the mark of State inspection, which shall be 

6 deemed to be an official mark, in accordance 

7 with requirements issued by the Secretary; 

8 ‘‘(D) provides that the State will comply 

9 with all labeling requirements issued by the 

10 Secretary governing poultry products inspected 

11 under the State poultry inspection program; 

12 ‘‘(E) provides that the Secretary shall have 

13 authority— 

14 ‘‘(i) to detain and seize poultry and 

15 poultry products under the State poultry 

16 inspection program; 

17 ‘‘(ii) to obtain access to facilities, 

18 records, and poultry products of any per19 son that slaughters, processes, handles, 

20 stores, transports, or sells poultry products 

21 inspected under the State poultry inspec22 tion program to determine compliance with 

23 this Act (including the regulations issued 

24 under this Act); and 
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1 ‘‘(iii) to direct the State to conduct 

2 any activity authorized to be conducted by 

3 the Secretary under this Act (including the 

4 regulations issued under this Act); and 

5 ‘‘(F) includes such other terms as the Sec6 retary determines to be necessary to ensure 

7 that the actions of the State and the State 

8 poultry inspection program are consistent with 

9 this Act (including the regulations, directives, 

10 notices, policy memoranda, and other regulatory 

11 requirements issued under this Act). 

12 ‘‘(4) RESTRICTION ON ESTABLISHMENT SIZE.— 

13 After the date that is 90 days after the effective 

14 date of the Farm, Nutrition, and Bioenergy Act of 

15 2007, establishments with more than 50 employees 

16 may not be accepted into a State meat inspection 

17 program. Any establishment that is subject to state 

18 inspection on such date may remain subject to state 

19 inspection. 

20 ‘‘(5) REIMBURSEMENT OF STATE COSTS.—The 

21 Secretary may reimburse a State for not more than 

22 60 percent of the State’s costs of meeting the Fed23 eral requirements for the State poultry inspection 

24 program. 
800 

•HR 2419 EH1S 

1 ‘‘(6) SAMPLING.—A duly authorized representa2 tive of the Secretary shall be afforded access to 

3 State inspected establishments to take reasonable 

4 samples of their inventory upon payment of the fair 

5 market value therefor. 

6 ‘‘(7) NONCOMPLIANCE.—If the Secretary deter7 mines that a State poultry inspection program does 

8 not comply with this section, section 5A, or the co9 operative agreement under paragraph (3), the Sec10 retary shall take such action as the Secretary deter11 mines to be necessary to ensure that the poultry 

12 products in the State are inspected in a manner that 

13 effectuates this Act (including the regulations, direc14 tives, notices, policy memoranda, and other regu15 latory requirements issued under this Act). 

16 ‘‘(d) ANNUAL REVIEW.— 

17 ‘‘(1) IN GENERAL.—The Secretary shall develop 

18 and implement a process to annually review each 

19 State poultry inspection program approved under 

20 this section and to certify the State poultry inspec21 tion programs that comply with the cooperative 

22 agreement entered into with the State under sub23 section (c)(3). 

24 ‘‘(2) COMMENT FROM INTERESTED PARTIES.— 

25 In developing the review process described in para-
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•HR 2419 EH1S 

1 graph (1), the Secretary shall solicit comment from 

2 interested parties. 

3 ‘‘(e) FEDERAL INSPECTION OPTION.— 

4 ‘‘(1) IN GENERAL.—An official establishment 

5 that operates in a State with an approved State 

6 poultry inspection program may apply for inspection 

7 under the State poultry inspection program or for 

8 Federal inspection. 

9 ‘‘(2) LIMITATION.—An official establishment 

10 shall not make an application under paragraph (1) 

11 more than once every 4 years. 

12 ‘‘SEC. 5A. AUTHORITY TO TAKE OVER STATE POULTRY IN13 SPECTION ACTIVITIES. 

14 ‘‘(a) AUTHORITY TO TAKE OVER STATE POULTRY

15 INSPECTION PROGRAMS.— 

16 ‘‘(1) NOTIFICATION.—If the Secretary has rea17 son to believe that a State is not in compliance with 

18 this Act (including the regulations, directives, no19 tices, policy memoranda, and other regulatory re20 quirements issued under this Act) or the cooperative 

21 agreement under section 5(c)(3) and is considering 

22 the revocation or temporary suspension of the ap23 proval of the State poultry inspection program, the 

24 Secretary shall promptly notify and consult with the 

25 Governor of the State. 
802 

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1 ‘‘(2) SUSPENSION AND REVOCATION.— 

2 ‘‘(A) IN GENERAL.—The Secretary may re3 voke or temporarily suspend the approval of a 

4 State poultry inspection program and take over 

5 a State poultry inspection program if the Sec6 retary determines that the State poultry inspec7 tion program is not in compliance with this Act 

8 (including the regulations, directives, notices, 

9 policy memoranda, and other regulatory re10 quirements issued under this Act) or the coop11 erative agreement. 

12 ‘‘(B) PROCEDURES FOR REINSTATE13 MENT.—A State poultry inspection program 

14 that has been the subject of a revocation may 

15 be reinstated as an approved State poultry in16 spection program under this Act only in accord17 ance with the procedures under section 

18 5(c)(2)(B)(ii). 

19 ‘‘(3) PUBLICATION.—If the Secretary revokes 

20 or temporarily suspends the approval of a State 

21 poultry inspection program in accordance with para22 graph (2), the Secretary shall publish notice of the 

23 revocation or temporary suspension under that para24 graph in the Federal Register. 
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•HR 2419 EH1S 

1 ‘‘(4) INSPECTION OF ESTABLISHMENTS.—Not 

2 later than 30 days after the date of publication of 

3 a determination under paragraph (3), an official es4 tablishment subject to a State poultry inspection 

5 program with respect to which the Secretary makes 

6 a determination under paragraph (2) shall be in7 spected by the Secretary. 

8 ‘‘(b) EXPEDITED AUTHORITY TO TAKE OVER IN9 SPECTION OF STATE-INSPECTED OFFICIAL ESTABLISH10 MENTS.—Notwithstanding any other provision of this 

11 title, if the Secretary determines that an official establish12 ment operating under a State poultry inspection program 

13 is not operating in accordance with this Act (including the 

14 regulations, directives, notices, policy memoranda, and 

15 other regulatory requirements issued under this Act) or 

16 the cooperative agreement under section 5(c)(3), and the 

17 State, after notification by the Secretary to the Governor, 

18 has not taken appropriate action within a reasonable time 

19 as determined by the Secretary, the Secretary may imme20 diately determine that the official establishment is an es21 tablishment that shall be inspected by the Secretary, until 

22 such time as the Secretary determines that the State will 

23 meet the requirements of this Act (including the regula24 tions, directives, notices, policy memoranda, and other reg-
804 

•HR 2419 EH1S 

1 ulatory requirements) and the cooperative agreement with 

2 respect to the official establishment.’’. 

3 (2) RESTAURANTS AND RETAIL STORES, AC4 CEPTANCE OF INTERSTATE SHIPMENTS OF POULTRY

5 PRODUCTS, AND ADVISORY COMMITTEES FOR FED6 ERAL AND STATE PROGRAMS.—The Poultry Prod7 ucts Inspection Act (21 U.S.C. 451 et seq.) is 

8 amended by inserting after section 30 the following: 

9 ‘‘SEC. 31. RESTAURANTS AND RETAIL STORES. 

10 ‘‘(a) LIMITATION ON APPLICABILITY OF INSPECTION

11 REQUIREMENTS.—The provisions of this Act requiring in12 spection of the slaughter of poultry and the processing of 

13 poultry products shall not apply to operations of types tra14 ditionally and usually conducted at retail stores and res15 taurants, if the operations are conducted at a retail store, 

16 restaurant, or similar retail establishment for sale of such 

17 prepared articles in normal retail quantities or for service 

18 of the articles to consumers at such an establishment. 

19 ‘‘(b) CENTRAL KITCHEN FACILITIES.— 

20 ‘‘(1) IN GENERAL.—For the purposes of this 

21 section, operations conducted at a central kitchen fa22 cility of a restaurant shall be considered to be con23 ducted at a restaurant if the central kitchen of the 

24 restaurant prepares poultry products that are ready 

25 to eat when they leave the facility and are served in 
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•HR 2419 EH1S 

1 meals or as entrees only to customers at restaurants 

2 owned or operated by the same person that owns or 

3 operates the facility. 

4 ‘‘(2) EXCEPTION.—A facility described in para5 graph (1) shall be subject to section 11(b) and may 

6 be subject to the inspection requirements of this Act 

7 for as long as the Secretary determines to be nec8 essary, if the Secretary determines that the sanitary 

9 conditions or practices of the facility or the proc10 essing procedures or methods at the facility are such 

11 that any of the poultry products of the facility are 

12 rendered adulterated. 

13 ‘‘SEC. 32. ACCEPTANCE OF INTERSTATE SHIPMENTS OF 

14 POULTRY PRODUCTS. 

15 ‘‘Notwithstanding any provision of State law, a State 

16 or local government shall not prohibit or restrict the move17 ment or sale of poultry products that have been inspected 

18 and passed in accordance with this Act for interstate com19 merce. 

20 ‘‘SEC. 33. ADVISORY COMMITTEES FOR FEDERAL AND 

21 STATE PROGRAMS. 

22 ‘‘The Secretary may appoint advisory committees 

23 consisting of such representatives of appropriate State 

24 agencies as the Secretary and the State agencies may des25 ignate to consult with the Secretary concerning State and 
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1 Federal programs with respect to poultry product inspec2 tion and other matters within the scope of this Act.’’. 

3 (d) REGULATIONS.—Not later than 180 days after 

4 the date of the enactment of this Act, the Secretary of 

5 Agriculture shall promulgate such regulations as are nec6 essary to implement the amendments made by subsections 

7 (b) and (c). 

8 (e) EFFECTIVE DATE.—The amendments made by 

9 subsections (b) and (c) of this Act shall take effect on the 

10 date that is 180 days after the date of the enactment of 

11 this Act. 

12 SEC. 11104. COUNTRY OF ORIGIN LABELING. 

13 Subtitle D of the Agricultural Marketing Act of 1946 

14 (7 U.S.C. 1638 et seq.) is amended— 

15 (1) in section 281(2)(A)— 

16 (A) in clause (v) by striking ‘‘and’’; 

17 (B) in clause (vi), by striking ‘‘peanuts.’’ 

18 and inserting ‘‘peanuts; and’’; and 

19 (C) by adding at the end the following new 

20 clause: 

21 ‘‘(vii) meat produced from goats.’’; 

22 (2) in section 282— 

23 (A) in subsection (a), by striking para24 graphs (2) and (3) and inserting the following: 
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1 ‘‘(2) DESIGNATION OF COUNTRY OF ORIGIN

2 FOR BEEF, LAMB, PORK, AND GOAT.— 

3 ‘‘(A) UNITED STATES COUNTRY OF ORI4 GIN.—A retailer of a covered commodity that is 

5 beef, lamb, pork, or goat may designate the cov6 ered commodity as exclusively having a United 

7 States country of origin only if the covered 

8 commodity is derived from an animal that 

9 was— 

10 ‘‘(i) exclusively born, raised, and 

11 slaughtered in the United States; 

12 ‘‘(ii) born and raised in Alaska or Ha13 waii and transported for a period of not 

14 more than 60 days through Canada to the 

15 United States and slaughtered in the 

16 United States; or 

17 ‘‘(iii) present in the United States on 

18 or before January 1, 2008. 

19 ‘‘(B) MULTIPLE COUNTRIES OF ORIGIN.— 

20 A retailer of a covered commodity that is beef, 

21 lamb, pork, or goat that is derived from an ani22 mal that is— 

23 ‘‘(i) not exclusively born, raised, and 

24 slaughtered in the United States, 
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1 ‘‘(ii) born, raised, or slaughtered in 

2 the United States, and 

3 ‘‘(iii) not imported into the United 

4 States for immediate slaughter, 

5 may designate the country of origin of such cov6 ered commodity as all of the countries in which 

7 the animal may have been born, raised, or 

8 slaughtered. 

9 ‘‘(C) IMPORTED FOR IMMEDIATE SLAUGH10 TER.—A retailer of a covered commodity that is 

11 beef, lamb, pork, or goat that is derived from 

12 an animal that is imported into the United 

13 States for immediate slaughter must designate 

14 the origin of such covered commodity as— 

15 ‘‘(i) the country from which the ani16 mal was imported; and 

17 ‘‘(ii) the United States. 

18 ‘‘(D) FOREIGN COUNTRY OF ORIGIN.—A 

19 retailer of a covered commodity that is beef, 

20 lamb, pork, or goat that is derived from an ani21 mal that is not born, raised, or slaughtered in 

22 the United States must designate a country 

23 other than the United States as the country of 

24 origin of such commodity. 
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1 ‘‘(E) GROUND BEEF, PORK, AND LAMB.— 

2 The notice of country of origin for ground beef, 

3 ground pork, or ground lamb shall include— 

4 ‘‘(i) a list of all countries of origin of 

5 such ground beef, ground pork, or ground 

6 lamb; or 

7 ‘‘(ii) a list of all reasonably possible 

8 countries of origin of such ground beef, 

9 ground pork, or ground lamb. 

10 ‘‘(3) DESIGNATION OF COUNTRY OF ORIGIN

11 FOR FISH.— 

12 ‘‘(A) IN GENERAL.—A retailer of a covered 

13 commodity that is farm-raised fish or wild fish 

14 may designate the covered commodity as having 

15 a United States country of origin only if the 

16 covered commodity— 

17 ‘‘(i) in the case of farm-raised fish, is 

18 hatched, raised, harvested, and processed 

19 in the United States; and 

20 ‘‘(ii) in the case of wild fish, is— 

21 ‘‘(I) harvested in the United 

22 States, a territory of the United 

23 States, or a State, or by a vessel that 

24 is documented under chapter 121 of 
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1 title 46, United States Code, or reg2 istered in the United States; and 

3 ‘‘(II) processed in the United 

4 States, a territory of the United 

5 States, or a State, including the wa6 ters thereof. 

7 ‘‘(B) DESIGNATION OF WILD FISH AND

8 FARM-RAISED FISH.—The notice of country of 

9 origin for wild fish and farm-raised fish shall 

10 distinguish between wild fish and farm-raised 

11 fish. 

12 ‘‘(4) DESIGNATION OF COUNTRY OF ORIGIN

13 FOR PERISHABLE AGRICULTURAL COMMODITIES AND

14 PEANUTS.— 

15 ‘‘(A) IN GENERAL.—A retailer of a covered 

16 commodity that is a perishable agricultural 

17 commodity or peanut may designate the covered 

18 commodity as having a United States country 

19 of origin only if the covered commodity is exclu20 sively produced in the United States. 

21 ‘‘(B) STATE, REGION, LOCALITY OF THE

22 UNITED STATES.—With respect to a covered 

23 commodity that is a perishable agricultural 

24 commodity produced exclusively in the United 

25 States, designation by a retailer of the State, 
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1 region, or locality of the United States where 

2 such commodity was produced shall be suffi3 cient to identify the United States as the coun4 try of origin.’’; and 

5 (B) by striking subsection (d) and insert6 ing the following: 

7 ‘‘(d) AUDIT VERIFICATION SYSTEM.— 

8 ‘‘(1) IN GENERAL.—The Secretary may conduct 

9 an audit of any person that prepares, stores, han10 dles, or distributes a covered commodity for retail 

11 sale to verify compliance with this subtitle (including 

12 the regulations promulgated under section 284(b)). 

13 ‘‘(2) RECORD REQUIREMENTS.— 

14 ‘‘(A) IN GENERAL.—A person subject to 

15 an audit under paragraph (1) shall provide the 

16 Secretary with verification of the country of ori17 gin of covered commodities. Records maintained 

18 in the course of the normal conduct of the busi19 ness of such person, including animal health pa20 pers, import or customs documents, or producer 

21 affidavits, may serve as such verification. 

22 ‘‘(B) PROHIBITION ON REQUIREMENT OF

23 ADDITIONAL RECORDS.—The Secretary may not 

24 require a person that prepares, stores, handles, 

25 or distributes a covered commodity to maintain 
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1 a record of the country of origin of a covered 

2 commodity other than those maintained in the 

3 course of the normal conduct of the business of 

4 such person.’’; 

5 (3) in section 283— 

6 (A) by striking subsections (a) and (c); 

7 (B) by redesignating subsection (b) sub8 section (a); 

9 (C) in subsection (a) (as so redesignated), 

10 by striking ‘‘retailer’’ and inserting ‘‘retailer or 

11 person engaged in the business of supplying a 

12 covered commodity to a retailer’’; and 

13 (D) by adding at the end the following new 

14 subsection: 

15 ‘‘(b) FINES.—If, on completion of the 30-day period 

16 described in subsection (a)(2), the Secretary determines 

17 that the retailer or person engaged in the business of sup18 plying a covered commodity to a retailer has— 

19 ‘‘(1) not made a good faith effort to comply 

20 with section 282, and 

21 ‘‘(2) continues to willfully violate section 282 

22 with respect to the violation about which the retailer 

23 or person received notification under subsection 

24 (a)(1), 
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1 after providing notice and an opportunity for a hearing 

2 before the Secretary with respect to the violation, the Sec3 retary may fine the retailer or person in an amount of 

4 not more than $1,000 for each violation.’’. 

5 SEC. 11105. SENSE OF CONGRESS REGARDING THE VOL6 UNTARY CONTROL PROGRAM FOR LOW 

7 PATHOGENIC AVIAN INFLUENZA. 

8 It is the sense of Congress that— 

9 (1) the voluntary control program for low path10 ogenic avian influenza is a critical component of the 

11 animal health protection system of the United 

12 States, as well as a safeguard against highly patho13 genic avian influenza; and 

14 (2) the Secretary of Agriculture has appro15 priately provided for the payment of compensation to 

16 owners of poultry and cooperating State agencies of 

17 100 percent of eligible costs, and the Secretary 

18 should continue to provide such payments at 100 

19 percent of such costs. 

20 SEC. 11106. SENSE OF CONGRESS REGARDING THE CATTLE 

21 FEVER TICK ERADICATION PROGRAM. 

22 It is the sense of Congress that— 

23 (1) the cattle fever tick and the southern cattle 

24 tick are vectors of the causal agent of babesiosis, a 

25 severe and often fatal disease of cattle; and 
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1 (2) implementing a national strategic plan for 

2 the cattle fever tick eradication program is a high 

3 priority that the secretary should carry out in order 

4 to— 

5 (A) prevent the entry of cattle fever ticks 

6 into the United States; 

7 (B) enhance and maintain an effective sur8 veillance program to rapidly detect any cattle 

9 fever tick incursions; and 

10 (C) research, identify, and procure the 

11 tools and knowledge necessary to prevent and 

12 eradicate cattle fever ticks in the United States. 

13 Subtitle C—Socially Disadvantaged 

14 Producers and Limited Re15 source Producers 

16 SEC. 11201. OUTREACH AND TECHNICAL ASSISTANCE FOR 

17 SOCIALLY DISADVANTAGED FARMERS AND 

18 RANCHERS AND LIMITED RESOURCE FARM19 ERS AND RANCHERS. 

20 Section 2501 of the Food, Agriculture, Conservation, 

21 and Trade Act of 1990 (7 U.S.C. 2279) is amended— 

22 (1) in subsection (a)— 

23 (A) by striking paragraph (2) and insert24 ing the following new paragraph: 
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1 ‘‘(2) REQUIREMENTS.—The outreach and tech2 nical assistance program under paragraph (1) shall 

3 be used— 

4 ‘‘(A) to enhance coordination of the out5 reach, technical assistance, and education ef6 forts authorized under agriculture programs; 

7 and 

8 ‘‘(B) to assist the Secretary in— 

9 ‘‘(i) reaching socially disadvantaged or 

10 limited resource farmers and ranchers and 

11 prospective socially disadvantaged or lim12 ited resource farmers and ranchers in an 

13 appropriate manner; and 

14 ‘‘(ii) improving the participation of 

15 those farmers and ranchers in Department 

16 programs, as determined under section 

17 2501A.’’; 

18 (B) in paragraph (3)— 

19 (i) in subparagraph (A), by striking 

20 ‘‘entity to provide information’’ and insert21 ing ‘‘entity that has demonstrated an abil22 ity to carry out the requirements described 

23 in paragraph (2) to provide outreach’’; and 

24 (ii) by adding at the end the following 

25 new subparagraphs: 
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•HR 2419 EH1S 

1 ‘‘(D) ADDITIONAL CONTRACTING AUTHOR2 ITY.—Any agency of the Department of Agri3 culture may make grants and enter into con4 tracts and cooperative agreements with a com5 munity-based organization that meets the defi6 nition of an eligible entity under subsection (e) 

7 in order to utilize the community-based organi8 zation to provide outreach and technical assist9 ance. 

10 ‘‘(E) REPORT.—The Secretary shall sub11 mit to the Committee on Agriculture of the 

12 House of Representatives and the Committee 

13 on Agriculture, Nutrition, and Forestry of the 

14 Senate, and make publicly available, an annual 

15 report that includes a list of the following: 

16 ‘‘(i) The recipients of funds made 

17 available under the program. 

18 ‘‘(ii) The activities undertaken and 

19 services provided. 

20 ‘‘(iii) The number of producers served 

21 and outcomes of such service. 

22 ‘‘(iv) The problems and barriers iden23 tified by entities in trying to increase par24 ticipation by socially disadvantaged farm25 ers and ranchers.’’; and 
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1 (C) in paragraph (4)— 

2 (i) by striking subparagraph (A), and 

3 inserting the following new subparagraph: 

4 ‘‘(A) AVAILABILITY OF FUNDS.—Of the 

5 funds of the Commodity Credit Corporation, the 

6 Secretary shall make available $15,000,000 for 

7 each of the fiscal years 2008 through 2012 to 

8 carry out this subsection.’’; 

9 (ii) in subparagraph (B), by striking 

10 ‘‘authorized to be appropriated under sub11 paragraph (A)’’ and inserting ‘‘made avail12 able under subparagraph (A)’’; and 

13 (iii) by adding at the end the fol14 lowing new subparagraph: 

15 ‘‘(C) LIMITATION ON USE OF FUNDS FOR

16 ADMINISTRATIVE EXPENSES.—Not more than 5 

17 percent of the amounts made available under 

18 subparagraph (A) for a fiscal year may be used 

19 for expenses related to administering the pro20 gram under this section.’’; and 

21 (2) in subsection (e)(5)(A)(ii)— 

22 (A) by inserting ‘‘and on behalf of’’ before 

23 ‘‘socially’’; and 

24 (B) by striking ‘‘2-year’’ and inserting ‘‘3- 

25 year’’. 
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1 SEC. 11202. IMPROVED PROGRAM DELIVERY BY DEPART2 MENT OF AGRICULTURE ON INDIAN RES3 ERVATIONS. 

4 Section 2501(g)(1) of the Food, Agriculture, Con5 servation, and Trade Act of 1990 (7 U.S.C. 2279(g)(1)) 

6 is amended— 

7 (1) in the first sentence, by striking ‘‘where 

8 there is a demonstrated demand for service’’ after 

9 ‘‘offices’’; and 

10 (2) by striking the second sentence. 

11 SEC. 11203. TRANSPARENCY AND ACCOUNTABILITY FOR SO12 CIALLY DISADVANTAGED FARMERS AND 

13 RANCHERS. 

14 Section 2501A of the Food, Agriculture, Conserva15 tion, and Trade Act of 1990 (7 U.S.C. 2279–1) is amend16 ed by striking subsection (c) and inserting the following 

17 new subsections: 

18 ‘‘(c) COMPILATION OF PROGRAM PARTICIPATION

19 DATA.— 

20 ‘‘(1) ANNUAL REQUIREMENT.—For each county 

21 and State in the United States, the Secretary of Ag22 riculture (referred to in this section as the ‘Sec23 retary’) shall annually compile program application 

24 and participation rate data regarding socially dis25 advantaged farmers and ranchers by computing for 
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•HR 2419 EH1S 

1 each program of the Department of Agriculture that 

2 serves agricultural producers and landowners— 

3 ‘‘(A) raw numbers of applicants and par4 ticipants by race, ethnicity, and gender, subject 

5 to appropriate privacy protections, as deter6 mined by the Secretary; and 

7 ‘‘(B) the application and participation rate, 

8 by race, ethnicity, and gender, as a percentage 

9 of the total participation rate of all agricultural 

10 producers and landowners. 

11 ‘‘(2) AUTHORITY TO COLLECT DATA.—The 

12 heads of the agencies of the Department of Agri13 culture shall collect and transmit to the Secretary 

14 any data, including data on race, gender, and eth15 nicity, that the Secretary determines to be necessary 

16 to carry out paragraph (1). 

17 ‘‘(3) REPORT.—Using the technologies and sys18 tems of the National Agricultural Statistics Service, 

19 the Secretary shall compile and present the data 

20 compiled under paragraph (1) for each program de21 scribed in that paragraph in a manner that includes 

22 the raw numbers and participation rates for— 

23 ‘‘(A) the entire United States; 

24 ‘‘(B) each State; and 

25 ‘‘(C) each county in each State. 
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1 ‘‘(4) PUBLIC AVAILABILITY OF REPORT.—The 

2 Secretary shall maintain and make readily available 

3 to the public, via website and otherwise in electronic 

4 and paper form, the report described in paragraph 

5 (3). 

6 ‘‘(d) LIMITATIONS ON USE OF DATA.— 

7 ‘‘(1) PRIVACY PROTECTIONS.—In carrying out 

8 this section, the Secretary shall not disclose the 

9 names or individual data of any program partici10 pant. 

11 ‘‘(2) AUTHORIZED USES.—The data under this 

12 section shall be used exclusively for the purposes de13 scribed in subsection (a). 

14 ‘‘(3) LIMITATION.—Except as otherwise pro15 vided, the data under this section shall not be used 

16 for the evaluation of individual applications for as17 sistance.’’. 

18 SEC. 11204. BEGINNING FARMER AND RANCHER DEVELOP19 MENT PROGRAM. 

20 Section 7405 of the Farm Security and Rural Invest21 ment Act of 2002 (7 U.S.C. 3319f) is amended by striking 

22 subsection (h) and inserting the following new subsection: 

23 ‘‘(h) AVAILABILITY OF FUNDS.—Of the funds of the 

24 Commodity Credit Corporation, the Secretary shall make 
821 

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1 available $15,000,000 for each of the fiscal years 2008 

2 through 2012 to carry out this section.’’. 

3 SEC. 11205. PROVISION OF RECEIPT FOR SERVICE OR DE4 NIAL OF SERVICE. 

5 In any case in which a producer or landowner, or pro6 spective producer or landowner, requests from the Depart7 ment of Agriculture any benefit or service offered by the 

8 Department to agricultural producers or landowners, the 

9 Secretary of Agriculture shall provide for the issuance, on 

10 the date on which the producer or landowner, or prospec11 tive producer or landowner, makes the request, a receipt 

12 containing— 

13 (1) the date, place, and subject of the request; 

14 and 

15 (2) the action taken, not taken, or rec16 ommendations made in response to the request. 

17 SEC. 11206. TRACKING OF SOCIALLY DISADVANTAGED 

18 FARMERS AND RANCHERS AND LIMITED RE19 SOURCE FARMERS AND RANCHERS IN CEN20 SUS OF AGRICULTURE AND CERTAIN STUD21 IES. 

22 The Secretary of Agriculture shall ensure, to the 

23 maximum extent practicable, that the Census of Agri24 culture and studies carried out by the Economic Research 

25 Service accurately document the number, location, and 
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1 economic contributions of socially disadvantaged farmers 

2 and ranchers and limited resource farmers and ranchers 

3 in agricultural production. 

4 SEC. 11207. FARMWORKER COORDINATOR. 

5 (a) ESTABLISHMENT.—The Secretary of Agriculture 

6 shall establish the position of Farmworker Coordinator (in 

7 this section referred to as the ‘‘Coordinator’’), which shall 

8 be located in the Office of Outreach of the Department 

9 of Agriculture. 

10 (b) DUTIES.—The Secretary may delegate to the Co11 ordinator responsibility for any or all of the following: 

12 (1) Assisting in administering the program es13 tablished by section 2281 of the Food, Agriculture, 

14 Conservation, and Trade Act of 1990 (42 U.S.C. 

15 5177a). 

16 (2) Serving as a liaison to community-based 

17 non-profit organizations that represent, and have 

18 demonstrated experience serving, low-income mi19 grant and seasonal farmworkers. 

20 (3) Coordinating with the Department of Agri21 culture and State and local governments to assure 

22 that farmworker needs are assessed and met during 

23 declared disasters and other emergencies. 

24 (4) Consulting with the Office of Small Farm 

25 Coordination, Office of Outreach, Outreach Coordi-
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•HR 2419 EH1S 

1 nators, and other entities to better integrate farm2 worker perspectives, concerns, and interests into the 

3 ongoing programs of the Department. 

4 (5) Consulting with Hispanic-serving institu5 tions on research, program improvements, or agri6 cultural education opportunities that assist low-in7 come and migrant seasonal farmworkers. 

8 (6) Assuring that farmworkers have access to 

9 services and support to enter agriculture as pro10 ducers. 

11 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to the Secretary such 

13 sums as necessary to carry out this section for fiscal years 

14 2008 through 2012. 

15 SEC. 11208. OFFICE OF OUTREACH RELOCATION. 

16 (a) RELOCATION PROPOSAL.—Not more than 18 

17 months after the date of enactment of the Act, the Sec18 retary shall develop a proposal to relocate the Office of 

19 Outreach of the Department of Agriculture. 

20 (b) ADMINISTRATION.—The Office of Outreach shall 

21 be responsible for the administration of— 

22 (1) the outreach and technical assistance pro23 gram established under section 2501 of the Food, 

24 Agriculture, Conservation, and Trade Act of 1990 (7 

25 U.S.C. 2279); 
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•HR 2419 EH1S 

1 (2) the beginning farmer and rancher develop2 ment program established under section 7405 of the 

3 Farm Security and Rural Investment Act of 2002 (7 

4 U.S.C. 3319f); and 

5 (3) the coordination of the outreach activities 

6 among the various agencies within the Department. 

7 (c) REPORT.—After the relocation described in this 

8 section is completed, the Secretary shall submit to Con9 gress a report that includes information describing the 

10 new location of the program. 

11 SEC. 11209. MINORITY FARMER ADVISORY COMMITTEE. 

12 (a) ESTABLISHMENT.—Not later than 18 months 

13 after the date of enactment of this Act, the Secretary of 

14 Agriculture shall establish an advisory committee, to be 

15 known as the ‘‘Advisory Committee on Minority Farmers’’ 

16 (in this section referred to as the ‘‘Committee’’), which 

17 shall be overseen by the Office of Outreach of the Depart18 ment of Agriculture. 

19 (b) DUTIES.—The Committee shall— 

20 (1) review all civil rights cases to ensure that 

21 they are processed in a timely manner; 

22 (2) ensure that the processing of civil rights 

23 cases complies with applicable laws; 

24 (3) report quarterly to the Secretary of Agri25 culture on civil rights enforcement and outreach; 
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•HR 2419 EH1S 

1 (4) monitor and annually report to Congress on 

2 compliance with all civil rights and related laws by 

3 all agencies and under all programs of the Depart4 ment; 

5 (5) recommend to the Secretary corrective ac6 tions to prevent civil rights violations; 

7 (6) review the operations of the outreach and 

8 technical assistance program established under sec9 tion 2501 of the Food, Agriculture, Conservation, 

10 and Trade Act of 1990 (7 U.S.C. 2279); and 

11 (7) review ongoing efforts toward outreach in 

12 the agencies and programs of the Department. 

13 (c) MEMBERSHIP OF COMMITTEE.—The Committee 

14 shall be composed of the following: 

15 (1) Three members appointed by the Secretary. 

16 (2) Two members appointed by the chairman of 

17 the Committee on Agriculture, Nutrition, and For18 estry of the Senate, in consultation with the ranking 

19 member of the Committee. 

20 (3) Two members appointed by the chairman of 

21 the Committee on Agriculture of the House of Rep22 resentatives, in consultation with the ranking mem23 ber of the Committee. 

24 (4) A civil rights professional. 

25 (5) A socially disadvantaged farmer or rancher. 
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•HR 2419 EH1S 

1 (6) Such other persons or professionals as de2 termined by the Secretary to be appropriate. 

3 SEC. 11210. COORDINATOR FOR CHRONICALLY UNDER4 SERVED RURAL AREAS. 

5 (a) ESTABLISHMENT.—The Secretary of Agriculture 

6 shall establish a Coordinator for Chronically Underserved 

7 Rural Areas (in this section referred to as the ‘‘Coordi8 nator’’), to be located in the Office of Outreach of the De9 partment of Agriculture. 

10 (b) MISSION.—The mission of the Coordinator shall 

11 be to direct Department of Agriculture resources to high 

12 need, high poverty rural areas. 

13 (c) DUTIES.—The Coordinator shall consult with 

14 other offices in directing technical assistance, strategic re15 gional planning, at the State and local level, for developing 

16 rural economic development that leverages the resources 

17 of State and local governments and non-profit and com18 munity development organizations. 

19 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated to the Secretary such 

21 sums as necessary to carry out this section for fiscal years 

22 2008 through 2012. 
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•HR 2419 EH1S 

1 Subtitle D—Other Miscellaneous 

2 Provisions 

3 SEC. 11301. DESIGNATION OF SEPARATE COTTON-PRO4 DUCING STATES UNDER COTTON RESEARCH 

5 AND PROMOTION ACT. 

6 Section 17(f) of the Cotton Research and Promotion 

7 Act (7 U.S.C. 2116(f)) is amended by adding at the end 

8 the following new sentence: ‘‘Notwithstanding the pre9 ceding sentence, effective beginning with the 2008 crop 

10 of cotton, the States of Kansas, Virginia, and Florida shall 

11 each be deemed to be a separate cotton-producing State 

12 for the purposes of this Act.’’. 

13 SEC. 11302. COTTON CLASSIFICATION SERVICES. 

14 (a) EXTENSION.—The first sentence of section 3a of 

15 the Act of March 3, 1927 (commonly known as the Cotton 

16 Statistics and Estimates Act; 7 U.S.C. 473a), is amended 

17 by striking ‘‘2007’’ and inserting ‘‘2012’’. 

18 (b) ESTABLISHMENT OF OFFICES.—The second sen19 tence of section 3a of the Act of March 3, 1927, is amend20 ed in the proviso— 

21 (1) by striking ‘‘and’’ at the end of clause (6); 

22 (2) by striking the period at the end of clause 

23 (7) and inserting ‘‘; and’’; and 

24 (3) by adding at the end the following new 

25 clause: ‘‘(8) the Secretary may enter into long-term 
828 

•HR 2419 EH1S 

1 lease agreements that exceed five years or may take 

2 title to property, including through purchase agree3 ments, for the purposes of obtaining offices to be 

4 used for the classification of cotton in accordance 

5 with this Act if the Secretary determines such action 

6 would best effectuate the purposes of this Act.’’. 

7 SEC. 11303. AVAILABILITY OF EXCESS AND SURPLUS COM8 PUTERS IN RURAL AREAS. 

9 The Secretary of Agriculture may make available to 

10 any city or town located in a rural area (as defined in 

11 section 343(a)(13)(A) of the Consolidated Farm and 

12 Rural Development Act) excess or surplus computers or 

13 other technical equipment of the Department of Agri14 culture. 

15 SEC. 11304. PERMANENT DEBARMENT FROM PARTICIPA16 TION IN DEPARTMENT OF AGRICULTURE 

17 PROGRAMS FOR FRAUD. 

18 The Secretary of Agriculture is hereby granted the 

19 authority to permanently debar an individual, organiza20 tion, corporation, or other entity convicted of knowingly 

21 defrauding the United States in connection with any pro22 gram administered by the Department of Agriculture from 

23 any subsequent participation in Department of Agri24 culture programs. 
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•HR 2419 EH1S 

1 SEC. 11305. NO DISCRIMINATION AGAINST USE OF REG2 ISTERED PESTICIDE PRODUCTS OR CLASSES 

3 OF PESTICIDE PRODUCTS. 

4 In establishing priorities and evaluation criteria for 

5 the approval of plans, contracts, and agreements under 

6 title II, the Secretary of Agriculture shall not discriminate 

7 against the use of specific registered pesticide products or 

8 classes of pesticide products. 

9 SEC. 11306. PROHIBITION ON CLOSURE OR RELOCATION OF 

10 COUNTY OFFICES FOR THE FARM SERVICE 

11 AGENCY, RURAL DEVELOPMENT AGENCY, 

12 AND NATURAL RESOURCES CONSERVATION 

13 SERVICE. 

14 Until the date that is one year after the date of the 

15 enactment of this Act, the Secretary of Agriculture may 

16 not close or relocate a county or field office of the Farm 

17 Service Agency, Rural Development Agency, or Natural 

18 Resources Conservation Service of the Department of Ag19 riculture. 

20 SEC. 11307. REGULATION OF EXPORTS OF PLANTS, PLANT 

21 PRODUCTS, BIOLOGICAL CONTROL ORGA22 NISMS, AND NOXIOUS WEEDS. 

23 (a) IN GENERAL.—Subtitle A of title IV of the Agri24 cultural Risk Protection Act of 2000 (7 U.S.C. 7701 et 

25 seq.) is amended by adding at the end the following new 

26 section: 
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•HR 2419 EH1S 

1 ‘‘SEC. 420. REGULATION OF EXPORTS OF PLANTS, PLANT 

2 PRODUCTS, BIOLOGICAL CONTROL ORGA3 NISMS, AND NOXIOUS WEEDS. 

4 ‘‘(a) IN GENERAL.—The Secretary may regulate 

5 plants, plant products, biological control organisms, and 

6 noxious weeds for export purposes. 

7 ‘‘(b) DUTIES.—The Secretary shall— 

8 ‘‘(1) coordinate fruit and vegetable market 

9 analyses with the private sector and the Adminis10 trator of Foreign Agricultural Service; and 

11 ‘‘(2) make publicly available on an Internet 

12 website— 

13 ‘‘(A) the status of all export petitions; 

14 ‘‘(B) to the greatest extent possible, an ex15 planation of the sanitary or phytosanitary 

16 issues associated with each pending export peti17 tion; and 

18 ‘‘(C) to the greatest extent possible, infor19 mation on the import requirements of foreign 

20 countries for fruits and vegetables. 

21 ‘‘(c) REGULATIONS.—The Secretary may issue regu22 lations to implement this section.’’. 

23 (b) TABLE OF CONTENTS.—The table of contents in 

24 section 1(b) of such Act (7 U.S.C. 1501 note) is amended 

25 by inserting after the item relating to section 419 the fol26 lowing new item: 
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•HR 2419 EH1S 

‘‘Sec. 420. Regulation of exports of plants, plant products, biological control organisms, and noxious weeds.’’. 

1 SEC. 11308. GRANTS TO REDUCE PRODUCTION OF 

2 METHAMPHETAMINES FROM ANHYDROUS 

3 AMMONIA. 

4 (a) GRANT AUTHORITY.—The Secretary of Agri5 culture may make a grant to an eligible entity to enable 

6 the entity to obtain and add to an anhydrous ammonia 

7 fertilizer nurse tank a substance which will reduce the 

8 amount of methamphetamine which can be produced from 

9 any anhydrous ammonia removed from the tank. 

10 (b) DEFINITIONS.—In this section: 

11 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti12 ty’’ means— 

13 (A) a producer of agricultural commod14 ities; 

15 (B) a cooperative association a majority of 

16 the members of which produce or process agri17 cultural commodities, and 

18 (C) a person in the trade or business of— 

19 (i) selling an agricultural product, in20 cluding an agricultural chemical, at retail, 

21 predominantly to farmers and ranchers; or 

22 (ii) aerial and ground application of 

23 an agricultural chemical. 
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1 (2) NURSE TANK.—The term ‘‘nurse tank’’ 

2 shall have the meaning set forth in section 

3 173.315(m) of title 49, Code of Federal Regulations, 

4 as in effect as of the date of the enactment of this 

5 Act. 

6 (c) GRANT AMOUNT.—The amount of a grant made 

7 under this section to an entity shall be not less than $40 

8 and not more than $60, multiplied by the number of fer9 tilizer nurse tanks of the entity. 

10 (d) LIMITATIONS ON AUTHORIZATION OF APPRO11 PRIATIONS.—For grants under this section, there are au12 thorized to be appropriated to the Secretary a total of not 

13 more than $15,000,000 for fiscal years 2008 through 

14 2012. 

15 SEC. 11309. USDA GRADUATE SCHOOL. 

16 (a) Section 921 of the Federal Agriculture Improve17 ment and Reform Act of 1996 (7 U.S.C. 2279b) is amend18 ed by striking subsections (a) through (k) and inserting 

19 the following: ‘‘The Department of Agriculture shall not 

20 establish, maintain, or otherwise operate a non21 appropriated fund instrumentality of the United States to 

22 develop, administer, or provide educational training and 

23 professional development activities, including educational 

24 activities for Federal agencies, Federal employees, non-
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1 profit organizations, other entities, and members of the 

2 general public.’’. 

3 (b) EFFECTIVE DATE.—The amendment made in 

4 subsection (a) apply beginning October 1, 2008. 

5 SEC. 11310. PREVENTION AND INVESTIGATION OF PAY6 MENT AND FRAUD AND ERROR. 

7 Section 1113(k) of the Right to Financial Privacy 

8 Act of 1978 (12 U.S.C. 3413(k)) is amended to read as 

9 follows: 

10 ‘‘(k) DISCLOSURE NECESSARY FOR PROPER ADMIN11 ISTRATION OF PROGRAMS OF CERTAIN GOVERNMENT AU12 THORITIES.— 

13 ‘‘(1) DISCLOSURE TO GOVERNMENT AUTHORI14 TIES.—Nothing in this title shall apply to the disclo15 sure by the financial institution of the financial 

16 records of any customer to the Department of the 

17 Treasury, the Social Security Administration, the 

18 Railroad Retirement Board, or any other Govern19 ment authority that certifies, disburses, or collects 

20 payments, when the disclosure of such information is 

21 necessary to, and such information is used solely for 

22 the purposes of— 

23 ‘‘(A) the proper administration of section 

24 1441 of the Internal Revenue Code of 1986 (26 

25 U.S.C. 1441); 
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1 ‘‘(B) the proper administration of title II 

2 of the Social Security Act (42 U.S.C. 401 et 

3 seq.); 

4 ‘‘(C) the proper administration of the Rail5 road Retirement Act of 1974 (45 U.S.C. 231 et 

6 seq.); 

7 ‘‘(D) the verification of the identify of any 

8 person in connection with the issuance of a 

9 Federal payment or collection of funds by a 

10 Government authority; or 

11 ‘‘(E) the investigation or recovery of an 

12 improper Federal payment or collection of 

13 funds, or an improperly negotiated Treasury 

14 check. 

15 ‘‘(2) LIMITATIONS ON SUBSEQUENT DISCLO16 SURE.—Notwithstanding any other provision of law, 

17 any request authorized by paragraph (1), and the in18 formation contained therein, may be used by the fi19 nancial institution and its agents solely for the pur20 pose of providing the customer’s financial records to 

21 the Government authority requesting the informa22 tion and shall be barred from redisclosure by the fi23 nancial institution or its agents. Any Government 

24 authority receiving information pursuant to para25 graph (1) may not disclose or use the information 
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1 except for the purposes set forth in such para2 graph.’’. 

3 SEC. 11311. SENSE OF CONGRESS REGARDING FOOD 

4 DESERTS, GEOGRAPHICALLY ISOLATED 

5 NEIGHBORHOODS AND COMMUNITIES WITH 

6 LIMITED OR NO ACCESS TO MAJOR CHAIN 

7 GROCERY STORES. 

8 It is the sense of Congress that the Secretary of Agri9 culture, in conjunction with the National Institutes of 

10 Health, the Centers for Disease Control, the Institute of 

11 Medicine and faith-based organizations, should— 

12 (1) conduct a national assessment of food 

13 deserts in the United States, namely those geo14 graphically isolated neighborhoods and communities 

15 with limited or no access to major-chain grocery 

16 stores; and 

17 (2) develop recommendations for eliminating 

18 food deserts. 

19 SEC. 11312. PIGFORD CLAIMS. 

20 (a) IN GENERAL.—Any Pigford claimant who has not 

21 previously obtained a determination on the merits of a 

22 Pigford claim may, in a civil action, obtain that determina23 tion. 

24 (b) LIMITATION.—Notwithstanding any other provi25 sion of law— 
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1 (1) all payments or debt relief (including any 

2 limitation on foreclosure under subsection (f)) made 

3 pursuant to an action commenced under subsection 

4 (a) shall be made exclusively from funds made avail5 able pursuant to subsection (h), Provided that the 

6 total amount of payments and debt relief pursuant 

7 to an action commenced under subsection (a) shall 

8 not exceed $100,000,000; and 

9 (2) in no event may such payments or debt re10 lief be made from the Judgement Fund established 

11 by 31 U.S.C. 1304. 

12 (c) INTENT OF CONGRESS AS TO REMEDIAL NATURE

13 OF SECTION.—It is the intent of Congress that this sec14 tion be liberally construed so as to effectuate its remedial 

15 purpose of giving a full determination on the merits for 

16 each Pigford claim denied that determination. 

17 (d) LOAN DATA.— 

18 (1) REPORT TO PERSON SUBMITTING PETI19 TION.—Not later than 60 days after the Secretary 

20 of Agriculture receives notice of a complaint filed by 

21 a claimant under subsection (a), the Secretary shall 

22 provide to the claimant a report on farm credit loans 

23 made within the claimant’s county or adjacent coun24 ty by the Department during the period beginning 

25 on January 1 of the year preceding the year or years 
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1 covered by the complaint and ending on December 

2 31 of year following such year or years. Such report 

3 shall contain information on all persons whose appli4 cation for a loan was accepted, including— 

5 (A) the race of the applicant; 

6 (B) the date of application; 

7 (C) the date of the loan decision; 

8 (D) the location of the office making the 

9 loan decision; and 

10 (E) all data relevant to the process of de11 ciding on the loan. 

12 (2) NO PERSONALLY IDENTIFIABLE INFORMA13 TION.—The reports provided pursuant to paragraph 

14 (1) shall not contain any information that would 

15 identify any person that applied for a loan from the 

16 Department of Agriculture. 

17 (e) EXPEDITED RESOLUTIONS AUTHORIZED.—Any 

18 person filing a complaint under this Act for discrimination 

19 in the application for, or making or servicing of, a farm 

20 loan, at his or her discretion, may seek liquidated damages 

21 of $50,000, discharge of the debt that was incurred under, 

22 or affected by, the discrimination that is the subject of 

23 the person’s complaint, and a tax payment in the amount 

24 equal to 25 percent of the liquidated damages and loan 

25 principal discharged, in which case— 
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1 (1) if only such damages, debt discharge, and 

2 tax payment are sought, the complainant shall be 

3 able to prove his or her case by substantial evidence; 

4 and 

5 (2) the court shall decide the case based on a 

6 review of documents submitted by the complainant 

7 and defendant relevant to the issues of liability and 

8 damages. 

9 (f) LIMITATION ON FORECLOSURES.—The Secretary 

10 of Agriculture may not begin acceleration on or foreclosure 

11 of a loan if a borrower is a Pigford claimant and, in an 

12 appropriate administrative proceeding, makes a prima 

13 facie case that the foreclosure is related to a Pigford 

14 claim. 

15 (g) DEFINITIONS.—In this Act— 

16 (1) the term ‘‘Pigford claimant’’ means an indi17 vidual who previously submitted a late-filing request 

18 under section 5(g) of the consent decree in the case 

19 of Pigford v. Glickman, approved by the United 

20 States District Court for the District of Columbia on 

21 April 14, 1999; and 

22 (2) the term ‘‘Pigford claim’’ means a discrimi23 nation complaint, as defined by section 1(h) of that 

24 consent decree and documented under section 5(b) 

25 of that consent decree. 
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1 (h) FUNDING.—Of the funds of the Commodity Cred2 it Corporation, the Secretary shall make available 

3 $100,000,000 for fiscal year 2008, to remain available 

4 until expended, for payments and debt relief in satisfac5 tion of claims against the United States under subsection 

6 (a), and for any actions made pursuant to subsection (f). 

7 SEC. 11313. COMPTROLLER GENERAL STUDY OF WASTE8 WATER INFRASTRUCTURE NEAR UNITED 

9 STATES-MEXICO BORDER. 

10 The Comptroller General shall conduct a study of the 

11 state of wastewater infrastructure in rural communities 

12 within 150 miles of the United States-Mexico border to 

13 determine what the Federal Government can do to assist 

14 border rural communities in bringing wastewater infra15 structure up to date. 

16 SEC. 11314. ELIMINATION OF STATUTE OF LIMITATIONS AP17 PLICABLE TO COLLECTION OF DEBT BY AD18 MINISTRATIVE OFFSET. 

19 (a) ELIMINATION.—Section 3716(e) of title 31, 

20 United States Code, is amended to read as follows: 

21 ‘‘(e)(1) Notwithstanding any other provision of law, 

22 regulation, or administrative limitation, no limitation on 

23 the period within which an offset may be initiated or taken 

24 pursuant to this section shall be effective. 
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1 ‘‘(2) This section does not apply when a statute ex2 plicitly prohibits using administrative offset or setoff to 

3 collect the claim or type of claim involved.’’. 

4 (b) APPLICATION OF AMENDMENT.—The amendment 

5 made by subsection (a) shall apply to any debt outstanding 

6 on or after the date of the enactment of this Act. 

7 SEC. 11315. POLLINATOR PROTECTION. 

8 (a) SHORT TITLE.—This section may be cited as the 

9 ‘‘Pollinator Protection Act of 2007’’. 

10 (b) FINDINGS.—Congress finds that— 

11 (1) many of the crops that humans and live12 stock consume rely on pollinators for healthy 

13 growth; 

14 (2) pollination by honey and native bees adds 

15 more than $18,000,000,000 annually to the value of 

16 United States crops; 

(3) 1 17 ⁄3 of the food supply of the United States 

18 depends on bee pollination, which makes the man19 agement and protection of pollinators an issue of 

20 paramount importance to the security of the United 

21 States food supply system; 

22 (4) colony collapse disorder is the name that 

23 has been given to the latest die-off of honey bee colo24 nies, exacerbating the continual decline of pollinators 

25 in North America; 
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1 (5) honey bee colonies in more than 23 states 

2 have been affected by colony collapse disorder; 

3 (6) if the current rate of decline continues, the 

4 United States will be forced to rely more heavily on 

5 imported foods, which will destabilize the food secu6 rity of the United States through adverse affects on 

7 the availability, price, and quality of the many fruits, 

8 vegetables, and other products that depend on ani9 mal pollination; and 

10 (7) enhanced funding for research on honey 

11 bees, native bees, parasites, pathogens, toxins, and 

12 other environmental factors affecting bees and polli13 nation of cultivated and wild plants will result in 

14 methods of response to colony collapse disorder and 

15 other factors causing the decline of pollinators in 

16 North America. 

17 (c) AUTHORIZATIONS OF APPROPRIATIONS.— 

18 (1) AGRICULTURAL RESEARCH SERVICE.— 

19 There is authorized to be appropriated to the Sec20 retary of Agriculture, acting through the Agricul21 tural Research Service— 

22 (A) $3,000,000 for each of fiscal years 

23 2008 through 2012, to be used for new per24 sonnel, facilities improvement, and additional 
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1 research at Department of Agriculture Bee Re2 search Laboratories; 

3 (B) $2,500,000 for each of fiscal years 

4 2008 and 2009, to be used for research on 

5 honey and native bee physiology, insect pathol6 ogy, insect chemical ecology, and honey and na7 tive bee toxicology at other Department of Agri8 culture facilities in New York, Florida, Cali9 fornia, Utah, and Texas; and 

10 (C) $1,750,000 for each of fiscal years 

11 2008 through 2010, to be used for an area-wide 

12 research program to identify causes and solu13 tions for colony collapse disorder in affected 

14 States. 

15 (2) COOPERATIVE STATE RESEARCH, EDU16 CATION, AND EXTENSION SERVICE.—There is au17 thorized to be appropriated to the Secretary of Agri18 culture, acting through the Cooperative State Re19 search, Education, and Extension Service, 

20 $10,000,000 for each of fiscal years 2008 through 

21 2012 to be used to fund Department of Agriculture 

22 extension and research grants to investigate— 

23 (A) honey bee biology, immunology, and 

24 ecology; 

25 (B) honey bee genomics; 
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1 (C) honey bee bioinformatics; 

2 (D) native bee crop pollination and habitat 

3 conservation; 

4 (E) native bee taxonomy and ecology; 

5 (F) pollination biology; 

6 (G) sublethal effects of insecticides, herbi7 cides, and fungicides on honey bees, native pol8 linators, and other beneficial insects; 

9 (H) the effects of genetically-modified 

10 crops, including the interaction of genetically11 modified crops with honey bees and other native 

12 pollinators; and 

13 (I) honey, bumble, and other native bee 

14 parasites and pathogens and effects on other 

15 native pollinators. 

16 (3) ANIMAL AND PLANT HEALTH INSPECTION

17 SERVICE.—There is authorized to be appropriated to 

18 the Secretary of Agriculture, acting through the Ani19 mal and Plant Health Inspection Service, 

20 $2,250,000 for each of fiscal years 2008 through 

21 2012 to conduct a nationwide honey bee pest and 

22 pathogen surveillance program. 

23 (d) ANNUAL REPORTS.—The Secretary of Agri24 culture, acting through the Agricultural Research Service 

25 and the Cooperative State Research, Education, and Ex-
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1 tension Service, shall submit to the Committee on Agri2 culture of the House of Representatives and the Com3 mittee on Agriculture, Nutrition, and Forestry of the Sen4 ate a report on the status and progress of bee research 

5 projects that are carried out by the Secretary. 

6 (e) GIVING POLLINATOR HABITAT AND PROTECTION

7 A PRIORITY IN CONSERVATION PROGRAMS.—Section 

8 1244 of the Food Security Act of 1985 (16 U.S.C. 3844) 

9 is amended by adding at the end the following new sub10 section: 

11 ‘‘(c) NATIVE AND MANAGED POLLINATORS.—In car12 rying out any conservation program administered by the 

13 Secretary, except the farmland protection program, the 

14 Secretary shall establish a priority and provide incentives 

15 for— 

16 ‘‘(1) increasing habitat for native and managed 

17 pollinators, especially native habitat; and 

18 ‘‘(2) establishing cropping systems, integrated 

19 pest management regimes, and other practices to 

20 protect native and managed pollinators.’’. 

21 SEC. 11316. PROHIBITION ON USE OF LIVE ANIMALS FOR 

22 MARKETING MEDICAL DEVICES; FINES 

23 UNDER THE ANIMAL WELFARE ACT. 

24 (a) PROHIBITION ON USE OF ANIMALS FOR MAR25 KETING OF MEDICAL DEVICES.—The Animal Welfare Act 
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1 (7 U.S.C. 2131 et seq.) is amended by inserting after sec2 tion 17 the following new section: 

3 ‘‘PROHIBITION ON USE OF LIVE ANIMALS FOR

4 MARKETING MEDICAL DEVICES

5 ‘‘SEC. 18. (a) IN GENERAL.—No person may use a 

6 live animal to— 

7 ‘‘(1) demonstrate a medical device or product to 

8 a sales representative for the purpose of marketing 

9 such medical device or product; 

10 ‘‘(2) train a sales representative to use a med11 ical device or product; 

12 ‘‘(3) demonstrate a medical device or product in 

13 a workshop or training session for the purpose of 

14 marketing a medical device or product; or 

15 ‘‘(4) create a multimedia recording (including a 

16 video recording) for the purpose of marketing a 

17 medical device or product. 

18 ‘‘(b) EXCEPTION.—Subsection (a) shall not apply to 

19 the training of medical personnel for a purpose other than 

20 marketing a medical device or product. 

21 ‘‘(c) DEVICE DEFINED.—In this section, the term 

22 ‘device’ has the meaning given the term in section 201(h) 

23 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 

24 321(h)).’’. 
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1 (b) FINES FOR VIOLATIONS OF THE ANIMAL WEL2 FARE ACT.—Section 19(b) of the Animal Welfare Act (7 

3 U.S.C. 2149(b)) is amended— 

4 (1) in the first sentence by striking ‘‘not more 

5 than $2,500 for each such violation’’ and inserting 

6 ‘‘not more than $10,000 for each such violation’’; 

7 and 

8 (2) by striking the second sentence and insert9 ing the following: ‘‘Each violation, each day during 

10 which a violation continues, and, in the case of a vio11 lation with respect to animals, each animal that is 

12 the subject of such a violation shall be a separate of13 fense.’’. 

14 (c) REPORTS ON ACTIVITIES UNDER THE ANIMAL

15 WELFARE ACT.—The Animal Welfare Act (7 U.S.C. 2131 

16 et seq.) is further amended by striking section 25 and in17 serting the following new section: 

18 ‘‘ANNUAL REPORT

19 ‘‘SEC. 25. Not later than March 1 of each year, the 

20 Secretary shall submit to Congress a report containing— 

21 ‘‘(1) an identification of all research facilities, 

22 exhibitors, and other persons and establishments li23 censed by the Secretary under section 3 and section 

24 12; 
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1 ‘‘(2) an identification of all research facilities, 

2 intermediate handlers, carriers, and exhibitors reg3 istered under section 6; 

4 ‘‘(3) the nature and place of all investigations 

5 and inspections conducted by the Secretary under 

6 section 16, and all reports received by the Secretary 

7 under section 13; 

8 ‘‘(4) recommendations for legislation to improve 

9 the administration of this Act or any provisions of 

10 this Act; and 

11 ‘‘(5) recommendations and conclusions con12 cerning the aircraft environment as it relates to the 

13 carriage of live animals in air transportation.’’. 

14 SEC. 11317. PROTECTION OF PETS. 

15 (a) SHORT TITLE.—This section may be cited as the 

16 ‘‘Pet Safety and Protection Act of 2007’’. 

17 (b) RESEARCH FACILITIES.—Section 7 of the Animal 

18 Welfare Act (7 U.S.C. 2137) is amended to read as fol19 lows: 

20 ‘‘SEC. 7. SOURCES OF DOGS AND CATS FOR RESEARCH FA21 CILITIES. 

22 ‘‘(a) DEFINITION OF PERSON.—In this section, the 

23 term ‘person’ means any individual, partnership, firm, 

24 joint stock company, corporation, association, trust, es25 tate, pound, shelter, or other legal entity. 
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1 ‘‘(b) USE OF DOGS AND CATS.—No research facility 

2 or Federal research facility may use a dog or cat for re3 search or educational purposes if the dog or cat was ob4 tained from a person other than a person described in sub5 section (d). 

6 ‘‘(c) SELLING, DONATING, OR OFFERING DOGS AND

7 CATS.—No person, other than a person described in sub8 section (d), may sell, donate, or offer a dog or cat to any 

9 research facility or Federal research facility. 

10 ‘‘(d) PERMISSIBLE SOURCES.—A person from whom 

11 a research facility or a Federal research facility may ob12 tain a dog or cat for research or educational purposes 

13 under subsection (b), and a person who may sell, donate, 

14 or offer a dog or cat to a research facility or a Federal 

15 research facility under subsection (c), shall be— 

16 ‘‘(1) a dealer licensed under section 3 that has 

17 bred and raised the dog or cat; 

18 ‘‘(2) a publicly owned and operated pound or 

19 shelter that— 

20 ‘‘(A) is registered with the Secretary; 

21 ‘‘(B) is in compliance with section 28(a)(1) 

22 and with the requirements for dealers in sub23 sections (b) and (c) of section 28; and 

24 ‘‘(C) obtained the dog or cat from its legal 

25 owner, other than a pound or shelter; 
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1 ‘‘(3) a person that is donating the dog or cat 

2 and that— 

3 ‘‘(A) bred and raised the dog or cat; or 

4 ‘‘(B) owned the dog or cat for not less 

5 than 1 year immediately preceding the dona6 tion; 

7 ‘‘(4) a research facility licensed by the Sec8 retary; and 

9 ‘‘(5) a Federal research facility licensed by the 

10 Secretary. 

11 ‘‘(e) PENALTIES.— 

12 ‘‘(1) IN GENERAL.—A person that violates this 

13 section shall be fined $1,000 for each violation. 

14 ‘‘(2) ADDITIONAL PENALTY.—A penalty under 

15 this subsection shall be in addition to any other ap16 plicable penalty. 

17 ‘‘(f) NO REQUIRED SALE OR DONATION.—Nothing 

18 in this section requires a pound or shelter to sell, donate, 

19 or offer a dog or cat to a research facility or Federal re20 search facility.’’. 

21 (c) FEDERAL RESEARCH FACILITIES.—Section 8 of 

22 the Animal Welfare Act (7 U.S.C. 2138) is amended— 

23 (1) by striking ‘‘Sec. 8. No department’’ and 

24 inserting the following: 
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1 ‘‘SEC. 8. FEDERAL RESEARCH FACILITIES. 

2 ‘‘Except as provided in section 7, no department’’; 

3 (2) by striking ‘‘research or experimentation 

4 or’’; and 

5 (3) by striking ‘‘such purposes’’ and inserting 

6 ‘‘that purpose’’. 

7 (d) CERTIFICATION.—Section 28(b)(1) of the Animal 

8 Welfare Act (7 U.S.C. 2158(b)(1)) is amended by striking 

9 ‘‘individual or entity’’ and inserting ‘‘research facility or 

10 Federal research facility’’. 

11 (e) EFFECTIVE DATE.—The amendments made by 

12 subsections (b), (c), and (d) take effect on the date that 

13 is 90 days after the date of the enactment of this Act. 

14 TITLE XII—PREVENTION OF TAX 

15 TREATY EXPLOITATION TO 

16 EVADE UNITED STATES TAX17 ATION 

Sec. 12001. Limitation on treaty benefits for certain deductible payments. 

18 SEC. 12001. LIMITATION ON TREATY BENEFITS FOR CER19 TAIN DEDUCTIBLE PAYMENTS. 

20 (a) IN GENERAL.—Section 894 of the Internal Rev21 enue Code of 1986 (relating to income affected by treaty) 

22 is amended by adding at the end the following new sub23 section: 

24 ‘‘(d) LIMITATION ON TREATY BENEFITS FOR CER25 TAIN DEDUCTIBLE PAYMENTS.— 
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1 ‘‘(1) IN GENERAL.—In the case of any deduct2 ible related-party payment, the amount of any with3 holding tax imposed under chapter 3 (and any tax 

4 imposed under subpart A or B of this part) with re5 spect to such payment shall not be less than the 

6 amount which would be imposed if the payment were 

7 made directly to the foreign parent corporation (tak8 ing into account any income tax treaty between the 

9 United States and the country in which the foreign 

10 parent corporation is resident). 

11 ‘‘(2) DEDUCTIBLE RELATED-PARTY PAY12 MENT.—For purposes of this subsection, the term 

13 ‘deductible related-party payment’ means any pay14 ment made, directly or indirectly, by any person to 

15 any other person if the payment is allowable as a de16 duction under this chapter and both persons are 

17 members of the same foreign controlled group of en18 tities. 

19 ‘‘(3) FOREIGN CONTROLLED GROUP OF ENTI20 TIES.—For purposes of this subsection— 

21 ‘‘(A) IN GENERAL.—The term ‘foreign 

22 controlled group of entities’ means a controlled 

23 group of entities the common parent of which 

24 is a foreign corporation. 
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1 ‘‘(B) CONTROLLED GROUP OF ENTITIES.— 

2 The term ‘controlled group of entities’ means a 

3 controlled group of corporations as defined in 

4 section 1563(a)(1), except that— 

5 ‘‘(i) ‘more than 50 percent’ shall be 

6 substituted for ‘at least 80 percent’ each 

7 place it appears therein, and 

8 ‘‘(ii) the determination shall be made 

9 without regard to subsections (a)(4) and 

10 (b)(2) of section 1563. 

11 A partnership or any other entity (other than a 

12 corporation) shall be treated as a member of a 

13 controlled group of entities if such entity is con14 trolled (within the meaning of section 

15 954(d)(3)) by members of such group (includ16 ing any entity treated as a member of such 

17 group by reason of this sentence). 

18 ‘‘(4) FOREIGN PARENT CORPORATION.—For 

19 purposes of this subsection, the term ‘foreign parent 

20 corporation’ means, with respect to any deductible 

21 related-party payment, the common parent of the 

22 foreign controlled group of entities referred to in 

23 paragraph (3)(A). 

24 ‘‘(5) REGULATIONS.—The Secretary may pre25 scribe such regulations or other guidance as are nec-
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1 essary or appropriate to carry out the purposes of 

2 this subsection, including regulations or other guid3 ance which provide for— 

4 ‘‘(A) the treatment of two or more persons 

5 as members of a foreign controlled group of en6 tities if such persons would be the common par7 ent of such group if treated as one corporation, 

8 and 

9 ‘‘(B) the treatment of any member of a 

10 foreign controlled group of entities as the com11 mon parent of such group if such treatment is 

12 appropriate taking into account the economic 

13 relationships among such entities.’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall apply to payments made after the date 

16 of the enactment of this Act. 

17 TITLE XIII—ADDITIONAL 

18 OFFSETS 

Subtitle A—Conservation of Resources Fees and Repeal of Royalty Relief 

Sec. 13001. Conservation of resources fees. 

Sec. 13002. Repeal of certain taxpayer subsidized royalty relief for the oil and 

gas industry. 

Sec. 13003. Time for payment of corporate estimated taxes. 

Subtitle B—Allocation of Offsets 

Sec. 13011. Report on funds; rate of federal crop insurance. 
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1 Subtitle A—Conservation of Re2 sources Fees and Repeal of Roy3 alty Relief 

4 SEC. 13001. CONSERVATION OF RESOURCES FEES. 

5 (a) CONSERVATION OF RESOURCES FEES.— 

6 (1) IN GENERAL.—Not later than 60 days after 

7 the date of enactment of this Act, the Secretary of 

8 the Interior by regulation shall establish a conserva9 tion of resources fee for producing Federal oil and 

10 gas leases in the Gulf of Mexico. 

11 (2) FEE TERMS.—The fee under paragraph 

12 (1)— 

13 (A) subject to subparagraph (C), shall 

14 apply to covered leases that are producing 

15 leases; 

16 (B) shall be set at $9 per barrel for oil and 

17 $1.25 per million Btu for gas, respectively, in 

18 2005 dollars; and 

19 (C) shall apply only to production of oil or 

20 gas occurring— 

21 (i) in any calendar year in which the 

22 arithmetic average of the daily closing 

23 prices for light sweet crude oil on the New 

24 York Mercantile Exchange (NYMEX) ex25 ceeds $34.73 per barrel for oil and $4.34 
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1 per million Btu for gas in 2005 dollars; 

2 and 

3 (ii) on or after October 1, 2006. 

4 (3) TREATMENT OF RECEIPTS.—Amounts re5 ceived by the United States as fees under this sub6 section shall be treated as offsetting receipts. 

7 (b) COVERED LEASE DEFINED.—In this section the 

8 term ‘‘covered lease’’ means a lease for oil or gas produc9 tion in the Gulf of Mexico that is— 

10 (1) in existence on the date of enactment of this 

11 Act; 

12 (2) issued by the Department of the Interior 

13 under section 304 of the Outer Continental Shelf 

14 Deep Water Royalty Relief Act (43 U.S.C. 1337 

15 note; Public Law 104–58); and 

16 (3) not subject to limitations on royalty relief 

17 based on market price that are equal to or less than 

18 the price thresholds described in clauses (v) through 

19 (vii) of section 8(a)(3)(C) of the Outer Continental 

20 Shelf Lands Act (43 U.S.C. 1337(a)(3)(C)). 
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1 SEC. 13002. REPEAL OF CERTAIN TAXPAYER SUBSIDIZED 

2 ROYALTY RELIEF FOR THE OIL AND GAS IN3 DUSTRY. 

4 (a) REPEAL OF PROVISIONS OF ENERGY POLICY ACT

5 OF 2005.—The following provisions of the Energy Policy 

6 Act of 2005 (Public Law 109–58) are repealed: 

7 (1) Section 344 (42 U.S.C. 15904; relating to 

8 incentives for natural gas production from deep wells 

9 in shallow waters of the Gulf of Mexico). 

10 (2) Section 345 (42 U.S.C. 15905; relating to 

11 royalty relief for deep water production in the Gulf 

12 of Mexico). 

13 (3) Subsection (i) of section 365 (42 U.S.C. 

14 15924; relating to the prohibition on drilling-related 

15 permit application cost recovery fees). 

16 (b) PROVISIONS RELATING TO PLANNING AREAS

17 OFFSHORE ALASKA.—Section 8(a)(3)(B) of the Outer 

18 Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) 

19 is amended by striking ‘‘and in the Planning Areas off20 shore Alaska’’ after ‘‘West longitude’’. 

21 (c) PROVISIONS RELATING TO NAVAL PETROLEUM

22 RESERVE IN ALASKA.—Section 107 of the Naval Petro23 leum Reserves Production Act of 1976 (as transferred, re24 designated, moved, and amended by section 347 of the En25 ergy Policy Act of 2005 (119 Stat. 704)) is amended— 
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1 (1) in subsection (i) by striking paragraphs (2) 

2 through (6); and 

3 (2) by striking subsection (k). 

4 SEC. 13003. TIME FOR PAYMENT OF CORPORATE ESTI5 MATED TAXES. 

6 Subparagraph (B) of section 401(1) of the Tax In7 crease Prevention and Reconciliation Act of 2005 is 

8 amended by striking ‘‘114.50 percent’’ and inserting 

9 ‘‘115.75 percent’’. 

10 Subtitle B—Allocation of Offsets 

11 SEC. 13011. REPORT ON FUNDS; RATE OF FEDERAL CROP 

12 INSURANCE. 

13 (a) REPORT.—Not later than the September 15 pre14 ceding each fiscal year, the Secretary of the Interior shall 

15 report to the Secretary of Agriculture the total amount 

16 expected to be received in the fiscal year as a result of 

17 the changes in subtitle A. 

18 (b) RATE.—Notwithstanding section 508(k)(4)(A)(ii) 

19 of the Federal Crop Insurance Act (7 U.S.C. 

20 1508(k)(4)(A)(ii)), the reimbursement rate established for 

21 each of the reinsurance years 2012 through 2017 shall 

22 be the lesser of— 

23 (1) the rate established in such section; and 

24 (2) the product of— 
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1 (A) the rate established in such section; 

2 and 

3 (B) the factor calculated in subsection (c). 

4 (c) CALCULATION.—In carrying out subsection (b), 

5 the Secretary of the Interior shall calculate the appro6 priate factor by dividing the amount calculated under sub7 section (a) for the fiscal year by the amount calculated 

8 under subsection (a) for fiscal year 2012. 

Passed the House of Representatives July 27, 2007. 

Attest: 

Clerk. 

110TH CONGRESS 

1ST SESSION H. R. 2419 

AN ACT 

To provide for the continuation of agricultural propurposes. grams through fiscal year 2012, and for other